Viewing 13001049
Legislative Bill Drafting Commission
13001-04-9
S. --------
SENATE
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IN SENATE--Introduced by Sen
--read twice and ordered printed,
and when printed to be committed
to the Committee on
-------- A.
ASSEMBLY
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IN ASSEMBLY--Introduced by M. of A.
--read once and referred to the
Committee on
*BUDGBI*
(Enacts an omnibus article VII bill)
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RPT L. omnibus article VII
A BUDGET BILL submitted by the Gov-
ernor in accordance with Article VII
of the Constitution
AN ACT
(A) to amend the insurance law, in
relation to the property casualty
insurance security fund; (B) to
amend the executive law, in relation
to permitting the secretary of state
to provide special handling for all
documents filed or issued by the
division of corporations and to
permit additional levels of such
expedited service; (C) to amend the
2 13001-04-9
state finance law, the executive
law, the general business law and
the real property law, in relation
to merging the corporations, state
records and uniform commercial code
account and the licensing examina-
tion services account; and to repeal
section 97-aa of the state finance
law relating thereto; (D) to amend
the executive law, in relation to
the community services block grant
program for distribution of funds;
and chapters 728 of the laws of 1982
and 710 of the laws of 1983 amending
the executive law relating to commu-
nity services block grant programs,
in relation to the effectiveness
thereof; (E) to amend the executive
law, the energy law and the state
finance law, in relation to the
state uniform fire prevention and
building code and the state energy
conservation construction code and
the adoption of model codes; and to
repeal certain provisions of the
executive law and the state finance
law relating thereto; (F) to amend
the state finance law, in relation
to financing consultant services for
millennium compliance with state
certificates of participation and
providing for the repeal of such
provisions upon expiration thereof;
(G) to amend the retirement and
social security law, in relation to
employer contributions to the New
York state and local retirement
systems; (H) to amend the state
finance law, in relation to provid-
ing for the administration of
certain funds and accounts related
to the 1999-2000 budget; to amend
the state finance law, chapter 389
of the laws of 1997, relating to the
financing of the correctional facil-
ities improvement fund and the youth
facility improvement fund, the
private housing finance law, the
education law, chapter 432 of the
laws of 1997, relating to authoriz-
ing the authority to issue bonds or
notes in one or more series for the
purpose of funding project costs or
making grants, loans or combinations
thereof for community enhancement
3 13001-04-9
facilities projects, in relation to
provisions necessary to implement
the 1999-2000 budget and in relation
to the duties of the office of
general services and the division of
the budget, to amend the state
finance law, in relation to estab-
lishing the tobacco settlement fund,
to repeal section 97-ddd of the
state finance law relating to the
federal revenue maximization
contract fund, to repeal section 87
of the state finance law, relating
to the farmland protection trust
fund, to repeal section 123-h of the
state finance law relating to the
citizen and taxpayer suit fund, to
repeal section 92-l of the state
finance law relating to the homeless
housing and assistance fund and the
state aid and local assistance
revenue withholding fund, to repeal
section 97-m of the state finance
law relating to the clean oceans
fund, to repeal section 97-ii of the
state finance law relating to the
trust accounts for special anti-
crime lottery, to repeal chapter 110
of the laws of 1983 relating to the
city of Lackawanna debt service
assistance reserve fund, to repeal
section 92-t of the state finance
law relating to the Niagara Falls
sales tax fund, to repeal chapter
256 of the laws of 1984 relating to
school district state aid reserve
fund, to repeal chapter 139 of the
laws of 1985 relating to school
district state aid reserve fund, to
repeal chapter 408 of the laws of
1988 relating to school district
state aid reserve fund, to repeal
subdivision 3 of section 227-a of
the executive law relating to death
benefits, to repeal section 2867 of
the public health law relating to
the nursing home development fund,
to repeal section 97-k of the state
finance law relating to the New York
state supply support system revolv-
ing fund, to repeal section 5 of
chapter 211 of the laws of 1990
relating to bond authorizations for
the youth opportunity centers
program and providing for the repeal
4 13001-04-9
of certain provisions upon expira-
tion thereof; (End of Parts A-H) (I)
to provide for the use of petroleum
overcharge restitution funds; (J) to
amend the state finance law and the
environmental conservation law, in
relation to the environmental
protection fund and repealing subdi-
vision 7 of section 92-s of the
state finance law relating to the
application of certain state assist-
ance payments; (K) to amend the real
property tax law, in relation to
state reimbursement for forest tax
exemptions; (L) to amend the envi-
ronmental conservation law, in
relation to pesticide product regis-
tration fees, and to amend chapter
67 of the laws of 1992 amending the
environmental conservation law
relating to pesticide product regis-
tration timetables and fees, in
relation to the effectiveness there-
of; (M) to amend the environmental
conservation law, in relation to air
pollution control programs and fees
and to repeal subdivisions 6 and 7
of section 19-0319 of the environ-
mental conservation law, relating to
fees under the clean air act for air
pollution sources and certain heavy
duty clean fuel fleet requirements;
(N) to amend the environmental
conservation law, in relation to
increasing the petroleum tank facil-
ity registration fee, to amend the
navigation law, in relation to
increasing the license fee imposed
to operate a major facility, and to
amend chapter 83 of the laws of
1995, amending the environmental
conservation law and other laws
relating to the registration of
petroleum bulk storage facilities,
in relation to the effectiveness
thereof; (O) to provide for the
utilization of utility assessment
funds and the reporting of expendi-
tures from such funds; (P) to amend
the racing, pari-mutuel wagering and
breeding law and the state finance
law, in relation to funding for
regulation of racing activities, and
to repeal subdivision 2 of section
902 of the racing, pari-mutuel
5 13001-04-9
wagering and breeding law, relating
to equine drug testing; (Q) to
authorize the dormitory authority of
the state of New York to provide
funding for the Cornell university
theory center; (R) making an appro-
priation in relation to authorizing
the financing of local highway and
bridge programs; to amend chapter 58
of the laws of 1998 relating to the
authorization of local highway and
bridge programs; and to amend chap-
ter 637 of the laws of 1996 amending
the transportation law and other
laws relating to transportation, in
relation to authorizing the financ-
ing of local highway and bridge
programs; (End of Parts I-R) (S) to
amend the executive law, in relation
to reimbursement for community
services for the elderly; (T) to
amend the correction law, in
relation to eligibility for the
shock incarceration program; (U) to
amend the correction law, in
relation to reimbursing localities
for the cost of low-level felony
prisoners; (V) to amend the execu-
tive law, in relation to the inter-
state compact act; (W) to amend the
correction law, in relation to the
registration of sex offenders; (X)
to amend the county law, in relation
to the state aid for district attor-
ney salaries; (Y) to amend the
social services law, in relation to
treatment of income and resources
for legally responsible relatives;
to re-institute the pharmacy co-pay
requirement; to amend chapter 41 of
the laws of 1992 amending the public
health law and other laws relating
to health care providers, in
relation to extending the expira-
tions thereof; to amend chapter 474
of the laws of 1996 amending the
education law and other laws relat-
ing to rates for residential health
care facilities, in relation to
extending effectiveness of such
rates; and to amend the public
health law, in relation to provider
assessments; and repealing certain
provisions of the public health law
relating thereto; (Z) to repeal
6 13001-04-9
chapter 174 of the laws of 1990,
relating to establishing the youth
opportunity program; (AA) to amend
the mental hygiene law, the social
services law, the not-for-profit
corporation law, the business corpo-
ration law, the correction law, the
insurance law, and the public health
law, in relation to the provision of
chemical dependence services, and to
repeal articles 21, 23, sections
19.39, 31.15, 31.24, subdivision (d)
of section 31.23 of the mental
hygiene law and section 407 of the
business corporation law relating
thereto; (BB) to amend the vehicle
and traffic law, in relation to
reimbursement of county clerks for
services rendered on the basis of a
percentage of gross receipts; (CC)
to amend chapter 533 of the laws of
1993, amending the vehicle and traf-
fic law relating to the suspension
of driver’s licenses upon conviction
of certain drug-related offenses, in
relation to extending the effective-
ness of such provisions; (DD) to
amend the vehicle and traffic law,
in relation to the mailing of
suspension and revocation orders;
(EE) to amend the vehicle and traf-
fic law and the transportation law,
in relation to sanctions for
violations of out of service orders;
(FF) to amend chapter 886 of the
laws of 1972 amending the correction
law and the penal law relating to
prisoner furloughs in certain cases
and the crime of absconding there-
from; to amend chapter 261 of the
laws of 1987, amending chapters 50,
53 and 54 of the laws of 1987, the
correction law, the penal law and
other chapters and laws relating to
correctional facilities; to amend
chapter 55 of the laws of 1992,
amending the tax law and other laws
relating to taxes, surcharges, fees
and funding; to amend chapter 339 of
the laws of 1972, amending the
correction law and the penal law
relating to inmate work release,
furlough and leave; to amend chapter
60 of the laws of 1994 relating to
certain provisions which impact upon
7 13001-04-9
expenditure of certain appropri-
ations made by chapter 50 of the
laws of 1994 enacting the state
operations budget; to amend chapter
554 of the laws of 1986, amending
the correction law and the penal law
relating to providing for community
treatment facilities and establish-
ing the crime of absconding from a
community treatment facility; to
amend chapter 3 of the laws of 1995
relating to the incarceration fee;
to amend chapter 79 of the laws of
1989, amending the correction law
and other laws relating to release
and supervision of persons serving a
definite sentence; to amend chapter
907 of the laws of 1984 amending the
correction law, the New York city
criminal court act and the executive
law relating to prison and jail
housing and alternatives to
detention and incarceration
programs; to amend 713 of the laws
of 1988 amending the vehicle and
traffic law relating to the ignition
interlock device program, in
relation to extending the expiration
thereof; (GG) to amend the state
finance law, in relation to estab-
lishing the New York state public
safety communications account; (End
of Parts S-GG) (HH) to amend the
education law, in relation to the
calculation and payment of state aid
to school districts and boards of
cooperative educational services,
and repealing certain provisions of
such law relating thereto; to amend
the education law in relation to the
review of preliminary building plans
and specifications in certain school
districts, the closure of school
buildings, literacy programs, and
the use of absentee ballots in small
city school districts; to amend the
local finance law, in relation to
the financing of special act school
districts; to amend chapter 58 of
the laws of 1998, amending the
education law and certain other laws
relating to the calculation and
payment of state aid to school
districts and boards of cooperative
educational services, in relation to
8 13001-04-9
making technical corrections there-
to; to amend chapter 221 of the laws
of 1998, relating to adjusting
certain state aid payments to
certain school districts, in
relation to making technical
corrections thereto; to amend chap-
ter 82 of the laws of 1995 amending
the education law and certain other
laws relating to state aid to school
districts and the appropriation of
funds for the support of government,
in relation to special education
class size; to amend chapter 169 of
the laws of 1994, relating to
certain provisions related to the
1994-95 state operations, aid to
localities, capital projects and
debt service budgets, in relation to
making technical corrections there-
to; and to amend chapter 756 of the
laws of 1992, relating to funding a
program for workforce education
conducted by the consortium for
worker education in New York city,
in relation to the consortium for
workforce education; (II) to amend
the real property tax law, the tax
law, and the education law, in
relation to improving the adminis-
tration of the school tax relief
(STAR) program, providing state
assistance for improved real proper-
ty tax administration, and restrict-
ing increases in school district tax
levies; (JJ) to amend the education
law, in relation to the adminis-
tration of educational opportunity
programs, the regents master plan
for higher education, the general
oversight of higher education; to
repeal section 137 of chapter 82 of
the laws of 1995 amending the educa-
tion law and other laws relating to
streamlining the regents higher
education master planning process,
and to repeal certain provisions of
the education law relating thereto;
(KK) to amend chapter 83 of the laws
of 1995, amending the state finance
law and other laws relating to block
grants for family and children’s
services, in relation to extending
the family and children’s services
block grant, to amend the social
9 13001-04-9
services law, in relation to fiscal
sanctions, and to repeal subdivision
6 of section 153-i of the social
services law relating to the mainte-
nance of effort requirement for
preventive services; (LL) to amend
the executive law, in relation to
clarifying certain sections related
to housing and conciliation in the
human rights law, providing the
right to an action in a civil court
following a determination of proba-
ble cause to any party to a housing
discrimination complaint with
complaint to be presented by an
attorney provided by the division of
human rights, providing for awards
of attorney’s fees in cases of hous-
ing discrimination only, permitting
the assessment of civil fines and
penalties in cases of housing
discrimination only and permitting
the courts to award punitive damages
in cases of housing discrimination
only; and to repeal certain
provisions of such law relating
thereto; (MM) to amend the education
law and the mental hygiene law, in
relation to establishing the
research institute on addictions at
the state university of New York;
(End of Parts HH-MM) (NN) to amend
the tax law and the administrative
code of the city of New York, in
relation to increasing the dependent
exemption under the state and city
personal income taxes; and to amend
the tax law, in relation to expan-
sion of the rate bracket of the
article 22 personal income tax; (OO)
to amend the tax law, in relation to
eliminating the personal income tax
filing requirement for residents
having no tax liability because
income does not exceed the New York
standard deduction; (PP) to amend
the tax law and the administrative
code of the city of New York, in
relation to the income tax liability
of spouses filing joint tax returns
and to repeal certain provisions of
the tax law and the administrative
code of the city of New York relat-
ing thereto; (QQ) to amend the tax
law, the general city law and the
10 13001-04-9
public authorities law, in relation
to sales and compensating use taxes
on certain utility services imposed
by article 28 of the tax law and
pursuant to the authority of article
29 thereof; repealing certain
provisions of the tax law relating
to providing transition rules for
taxpayers removed from taxation
under section 186 of such law; and
providing for the repeal of certain
provisions upon expiration thereof;
(RR) to amend the tax law, in
relation to providing a transitional
basis under the real property tax
law for certain moveable machinery
and equipment, and in relation to
reduction of the rate of the alter-
native minimum tax under the article
9-A corporation franchise tax, to
increase of the credit under such
tax for investment in qualified
emerging technology companies; (SS)
to amend the tax law, in relation to
establishing a credit, in articles
9, 9-A, 22, 32 and 33 thereof, for
increased urban employment; (TT) to
amend the tax law and the adminis-
trative code of the city of New
York, in relation to exclusion under
the article 9-A franchise tax and
state and city income taxes of gain
on the sale of New York capital
assets; (UU) to amend the tax law,
in relation to reducing the basic
tax imposed upon banking corpo-
rations under article 32 thereof,
the tax on entire net income imposed
upon insurance corporations under
article 33 thereof, and the limita-
tion on tax applicable for certain
insurance corporations under article
33 thereof, and to repeal certain
provisions of the tax law relating
to the calculation of franchise
taxes by the state insurance fund;
(VV) to amend the public health law
and the social services law, in
relation to provider of services
assessments; (WW) to amend the tax
law, in relation to property tax
relief for certain agricultural
land; (XX) to amend the tax law, in
relation to establishing a tax cred-
it for certain agricultural cooper-
11 13001-04-9
ative corporations subject to the
tax imposed under section 185 of
such law, to eliminating the fixed
dollar minimum tax under article 9-A
of such law for certain homeowners
associations, to eliminating the
minimum tax imposed under article
13-A of such law, to calculating the
amount of tax required to be prepaid
for purposes of the prepayment of
sales tax on cigarettes; and to
extending section 1142-A of such
law, which sets forth special
requirements relating to the service
of providing parking, garaging or
storing for motor vehicles; (YY) to
amend the tax law and chapter 1013
of the laws of 1962 amending the tax
law relating to the imposition of a
tax on the transfer of estates of
certain decedents, in relation to
conforming the estate and generation
skipping transfer tax laws to
provisions of the internal revenue
code; and to repeal section 954-c of
the tax law, section 38 of part A of
chapter 56 of the laws of 1998
amending the tax law and other laws
relating to implementing the state
1998-1999 fiscal plan, and section
2057 contained in section 2 of chap-
ter 1013 of the laws of 1962 amend-
ing the tax law relating to the
imposition of a tax on the transfer
of estates of certain decedents, in
relation to an exclusion from gross
estate for certain family-owned
business interests; (ZZ) to amend
the tax law and the administrative
code of the city of New York, in
relation to extending the tax rate
reductions under the New York state
real estate transfer tax and the New
York city real property transfer tax
for conveyances of real property to
existing real estate investment
trusts; (AAA) to amend chapter 166
of the laws of 1991, amending the
tax law and other laws relating to
taxes, in relation to the expiration
of certain provisions contained
therein, and to amend the vehicle
and traffic law, in relation to
making certain technical corrections
and to repeal subdivision 8 of
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section 1809 of the vehicle and
traffic law, relating to the expira-
tion of the provisions of such
section; (BBB) to amend the tax law,
in relation to the instant cash and
quick draw lottery games; to amend
chapter 2 of the laws of 1995 amend-
ing the tax law and other laws
relating to a new lottery game and
the expiration thereof, in relation
to the effectiveness of such chap-
ter; and to repeal section 152 of
chapter 166 of the laws of 1991
amending the tax law and other laws
relating to taxes;
The People of the State of New
York, represented in Senate and
Assembly, do enact as follows:
13 13001-04-9
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 1999-2000
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through BBB. The effective date for each partic-
5 ular provision contained within such Part is set forth in the last
6 section of such Part. Any provision in any section contained within a
7 Part, including the effective date of the Part, which makes reference to
8 a section "of this act", when used in connection with that particular
9 component, shall be deemed to mean and refer to the corresponding
10 section of the Part in which it is found. Section three of this act sets
11 forth the general effective date of this act.
12 GENERAL GOVERNMENT
13 PART A
14 § 1. Paragraph 4 of subsection (b) of section 7403 of the insurance
15 law, as amended by chapter 146 of the laws of 1998, is amended to read
16 as follows:
17 (4) The court shall not order any advance to the rehabilitator without
18 his specific request or if the insurer’s required capital or surplus is
19 impaired in an amount exceeding the greater of thirty million dollars or
20 fifteen percent of the insurer’s net direct premium writings in the
21 previous calendar year. Total advances to an insurer shall not exceed
22 the greater of forty million dollars or twenty percent of such net
23 direct premium writings. No advance shall be made on or after July
24 first, [nineteen hundred ninety-nine] two thousand which would lower the
25 amount of assets in the fund below one hundred ninety-five million
26 dollars.
14 13001-04-9
1 § 2. Paragraph 6 of subsection (b) of section 7403 of the insurance
2 law, as amended by chapter 146 of the laws of 1998, is amended to read
3 as follows:
4 (6) This subsection shall expire July first, [nineteen hundred nine-
5 ty-nine] two thousand, provided that the insurer’s obligation to repay
6 to the fund moneys advanced to it under this subsection, and the fund’s
7 claim for the advance, and any accrued interest, as a priority over all
8 non-secured creditors, shall survive such expiration date.
9 § 3. This act shall take effect April 1, 1999.
10 PART B
11 § 1. Subdivision 11 of section 96 of the executive law, as amended by
12 chapter 166 of the laws of 1991, is amended to read as follows:
13 11. (a) For the special handling of requests made to the [bureau]
14 division of corporations of the department of state for any [certificate
15 processed for filing or issued under official seal by the bureau of
16 corporations pursuant to subdivision seven and paragraphs a and b of
17 subdivision nine of this section,] service for which a fee is collected
18 as prescribed by law, twenty-five dollars. For the purposes of this
19 section the term "special handling" shall mean the completion of the
20 request within twenty-four hours of receipt of the request, except in
21 those cases where the twenty-four hour period shall end on a Saturday,
22 Sunday, holiday or day on which the [bureau] division of corporations of
23 the department of state is not open for business, in which case the
24 twenty-four hour period shall be extended to the appropriate hour of the
25 next succeeding business day on which such [bureau] division is open for
26 business.
27 (b) For the same day expedited handling of requests made to the divi-
28 sion of corporations of the department of state for any service for
15 13001-04-9
1 which a fee is collected as prescribed by law, seventy-five dollars. For
2 the purposes of this section the term "same day expedited handling"
3 shall mean the completion of the request on the same day as the day of
4 request.
5 (c) For the two hour priority handling of requests made to the divi-
6 sion of corporations of the department of state for any service for
7 which a fee is collected as prescribed by law, one hundred fifty
8 dollars. For the purposes of this section the term "two hour priority
9 handling" shall mean the completion of the request within two hours on
10 the same day as the day of the request.
11 § 2. This act shall take effect April 1, 1999.
12 PART C
13 § 1. Section 97-aa of the state finance law is REPEALED.
14 § 2. Section 97-y of the state finance law, as amended by chapter 309
15 of the laws of 1996, is amended to read as follows:
16 § 97-y. [Corporations, state records and uniform commercial code
17 account] Business and licensing services account. 1. There is hereby
18 established within the miscellaneous special revenue fund in the joint
19 custody of the state comptroller and the commissioner of taxation and
20 finance an account to be known as the "[corporations, state records and
21 uniform commercial code] business and licensing services account".
22 2. The [corporations, state records and uniform commercial code] busi-
23 ness and licensing services account shall consist of all monies
24 collected by the department of state from: (a) fees paid to it in
25 conjunction with its activities pursuant to the business corporation
26 law, the not-for-profit corporation law, or other corporate law, the
27 partnership law, the limited liability company law, and correlative
28 provisions of the executive law, the general business law and any other
16 13001-04-9
1 law, consolidated or unconsolidated; [and] (b) fees paid to it in
2 conjunction with its activities pursuant to the provisions of section
3 ninety-six-a of the executive law or pursuant to any other provision of
4 law, for services rendered in accordance with the provisions of the
5 uniform commercial code or article ten-A of the lien law; (c) fees
6 charged for the regulation, licensing, examination, certification,
7 registration and discipline activities of the department of state; and
8 (d) monies received from licenses granted under section four hundred
9 thirty-eight of the judiciary law.
10 3. Monies within the [corporations, state records and uniform commer-
11 cial code] business and licensing services account, upon appropriation
12 by the legislature, shall be available to the department of state for
13 the operation of the department in relation to (a) uniform commercial
14 code[,] and related tax lien requirements, (b) corporations and state
15 records functions and services, including but not limited to reviewing,
16 filing, searching, certifying or copying of documents, instruments and
17 records rendered by the department in conjunction therewith[; provided,
18 however, that on the thirtieth day of June, the thirtieth day of Septem-
19 ber, the thirty-first day of December and the thirty-first day of March
20 of each year, the comptroller is hereby authorized and directed to
21 transfer an amount equal to the unencumbered balance of said account
22 from the account to the general fund], (c) the regulation, licensing,
23 examination, certification, registration and discipline activities of
24 the department of state, and (d) implementation, operation and enforce-
25 ment of articles seven-A, eight-B and eight-C of the general business
26 law.
27 4. Notwithstanding any other provisions of this section to the contra-
28 ry, moneys deposited pursuant to sections ninety-seven-r and ninety-sev-
17 13001-04-9
1 en-nn of this article shall be available to the department of state for
2 the purposes set forth in such sections.
3 § 3. Subdivision 4 of section 97-r of the state finance law, as added
4 by chapter 170 of the laws of 1994, is amended to read as follows:
5 4. The fund shall be held within the business and licensing services
6 account as established in section [ninety-seven-aa] ninety-seven-y of
7 this article.
8 § 4. Subdivision 3 of section 97-nn of the state finance law, added by
9 chapter 170 of the laws of 1994, is amended to read as follows:
10 3. The fund shall be held within the business and licensing services
11 account as established in section [ninety-seven-aa] ninety-seven-y of
12 this article.
13 § 5. Subdivision 3 of section 160-f of the executive law, as amended
14 by chapter 397 of the laws of 1991, is amended to read as follows:
15 3. All fees collected under this section shall be paid into the
16 [licensing examinations services account pursuant to section ninety-sev-
17 en-aa] business and licensing services account established pursuant to
18 section ninety-seven-y of the state finance law.
19 § 6. Section 69-x of the general business law, as amended by chapter
20 575 of the laws of 1993, is amended to read as follows:
21 § 69-x. Disposition of moneys derived from operation of article.
22 [Examination fees collected pursuant to this article shall be paid into
23 the licensing examination services account pursuant to section ninety-
24 seven-aa of the state finance law.] Processing fees for the fingerprint
25 search conducted by the division of criminal justice services shall
26 accompany the fingerprint cards and shall be deposited [into the crimi-
27 nal justice improvement account pursuant to section ninety-seven-bb of
28 the state finance law] to the credit of the general fund. All remaining
18 13001-04-9
1 moneys derived from the operation of this article shall [on or before
2 the tenth day of each month be paid into the general fund of the state
3 treasury to the credit of the state purposes account therein] be depos-
4 ited in the business and licensing services account established pursuant
5 to section ninety-seven-y of the state finance law.
6 § 7. Paragraph (c) of subdivision 1 of section 74 of the general busi-
7 ness law, as added by chapter 64 of the laws of 1988, is amended to read
8 as follows:
9 (c) The secretary of state shall receive a non-refundable examination
10 fee of fifteen dollars from each person who takes an examination to
11 qualify for application for licensure pursuant to this article. Fees
12 [collected for written examinations shall be paid into the licensing
13 examinations services account, pursuant to section ninety-seven-aa of
14 the state finance law] paid to the department of state pursuant to this
15 article shall be deposited in the business and licensing services
16 account established pursuant to section ninety-seven-y of the state
17 finance law.
18 § 8. Subdivision 10 of section 89-h of the general business law, as
19 amended by chapter 309 of the laws of 1996, is amended to read as
20 follows:
21 10. Fees: pay (a) a fee of thirty-six dollars for processing of the
22 application, investigation of the applicant and for the initial biennial
23 registration period. Such fees shall be deposited to the credit of the
24 [licensing examinations services account established pursuant to the
25 provisions of section ninety-seven-aa] business and licensing services
26 account established pursuant to the provisions of section ninety-seven-y
27 of the state finance law; and (b) a fee pursuant to subdivision eight-a
28 of section eight hundred thirty-seven of the executive law, and amend-
19 13001-04-9
1 ments thereto, for the cost of the division’s full search and retain
2 procedures, which fee shall be remitted by the department to the divi-
3 sion for deposit by the comptroller into the general fund effective
4 August thirty-first, nineteen hundred ninety-six; and
5 § 9. Subdivision 3 of section 409 of the general business law, as
6 added by chapter 509 of the laws of 1992, is amended to read as follows:
7 3. The secretary shall receive a non-refundable examination fee of
8 fifteen dollars from each person who takes a written examination pursu-
9 ant to this article. Fees collected [for written examinations shall be
10 paid into the licensing examinations services account, pursuant to
11 section ninety-seven-aa] pursuant to this article shall be deposited to
12 the credit of the business and licensing services account established
13 pursuant to the provisions of section ninety-seven-y of the state
14 finance law.
15 § 10. Section 415 of the general business law, as added by chapter 509
16 of the laws of 1992, is amended to read as follows:
17 § 415. Disposition of moneys. [With the exception of fees collected
18 for examinations which are to be paid into the licensing examinations
19 services account pursuant to section ninety-seven-aa of the state
20 finance law, all] All moneys derived from the operation of this article
21 shall [on or before the tenth day of each month be paid into the general
22 fund of the state treasury to the credit of the state purposes account
23 therein] be deposited to the credit of the business and licensing
24 services account established pursuant to section ninety-seven-y of the
25 state finance law.
26 § 11. Section 445 of the general business law, as amended by chapter
27 64 of the laws of 1988, is amended to read as follows:
20 13001-04-9
1 § 445. Disposition of moneys derived from operation of article. All
2 moneys derived from the operation of this article shall [on or before
3 the tenth day of each month be paid into the general fund of the state
4 treasury, to the credit of state purposes account therein, with the
5 exception of fees collected for written examinations which are to be
6 paid into the licensing examinations services account pursuant to
7 section ninety-seven-aa of the state finance law] be deposited to the
8 credit of the business and licensing services account established pursu-
9 ant to section ninety-seven-y of the state finance law.
10 § 12. Subdivisions 1-A and 3 of section 441-b of the real property
11 law, subdivision 1-A as added by chapter 64 of the laws of 1988 and
12 subdivision 3 as amended by chapter 103 of the laws of 1981, are amended
13 to read as follows:
14 1-A. The fee for a person to take an examination offered by the secre-
15 tary of state pursuant to this article shall be fifteen dollars. Fees
16 collected [for written examinations shall be paid into the licensing
17 examinations services account pursuant to section ninety-seven-aa of the
18 state finance law] by the department of state pursuant to this article
19 shall be deposited to the credit of the business and licensing services
20 account established pursuant to section ninety-seven-y of the state
21 finance law.
22 3. Disposition of fees. The department of state shall on the first day
23 of each month make a verified return to the department of taxation and
24 finance of all fees received by it under this article during the preced-
25 ing calendar month, stating from what city or county received and by
26 whom and when paid. [The department shall on or before the tenth day of
27 each month pay into the state treasury all monies to its credit on
21 13001-04-9
1 account of fees under this article, at the close of business on the last
2 day of the preceding month.]
3 § 13. This act shall take effect April 1, 1999.
4 PART D
5 § 1. Section 159-i of the executive law, as amended by chapter 310 of
6 the laws of 1998, is amended to read as follows:
7 § 159-i. Distribution of funds. For each federal fiscal year [nineteen
8 hundred ninety-nine] at least ninety percent of the community services
9 block grant funds received by the state shall be distributed pursuant to
10 a contract by the secretary to grantees as defined in subdivision one of
11 section one hundred fifty-nine-e of this article. Each such grantee
12 shall receive the same proportion of community services block grant
13 funds as was the proportion of funds received in federal fiscal year
14 nineteen hundred eighty-one by such grantee under the federal community
15 services administration program account numbers 01 and 05 pursuant to
16 section two hundred twenty-one of title II and for migrant and seasonal
17 farm worker organizations pursuant to section two hundred twenty-two of
18 title II of the economic opportunity act of 1964, as amended, as
19 compared to the total amount received by all grantees in the state,
20 under the federal community services administration program account
21 numbers 01 and 05 pursuant to section two hundred twenty-one of title II
22 and for migrant and seasonal farm worker organizations pursuant to
23 section two hundred twenty-two of title II of such act in federal fiscal
24 year nineteen hundred eighty-one.
25 For each federal fiscal year [nineteen hundred ninety-nine] the secre-
26 tary shall, pursuant to section one hundred fifty-nine-h of this arti-
27 cle, retain not more than five percent of the community services block
28 grant funds for administration at the state level.
22 13001-04-9
1 For each federal fiscal year [nineteen hundred ninety-nine] the
2 remainder of the community services block grant funds received by the
3 state shall be distributed pursuant to a contract by the secretary in
4 the following order of preference: a sum of up to one-half of one
5 percent of the community services block grant funds received by the
6 state to Indian tribes and tribal organizations as defined in this arti-
7 cle, on the basis of need; community action agencies established in
8 federal fiscal year nineteen hundred eighty-three; counties which do not
9 have a community action agency in existence and seek to establish an
10 organization which is consistent with the objectives of an eligible
11 entity; limited purpose agencies which had received funding during
12 federal fiscal year nineteen hundred eighty-one under section two
13 hundred twenty-one, section two hundred twenty-two(a)(4) or section two
14 hundred thirty-two of title II of the economic opportunity act of 1964,
15 as amended; and community based organizations.
16 § 2. Section 5 of chapter 728 of the laws of 1982, amending the execu-
17 tive law relating to community services block grant programs, as amended
18 by chapter 310 of the laws of 1998, is amended to read as follows:
19 § 5. This act shall take effect immediately provided, however, that
20 section four hereof shall take effect October 1, 1982 and provided
21 further, however, that the provisions of sections two, three and four of
22 this act shall be in full force and effect only until September 30, 1983
23 [and section one of this act shall be in full force and effect until
24 September 30, 1999].
25 § 3. Section 7 of chapter 710 of the laws of 1983, amending the execu-
26 tive law relating to community services block grant programs, as amended
27 by chapter 310 of the laws of 1998, is amended to read as follows:
23 13001-04-9
1 § 7. This act shall take effect September 30, 1983 [and shall be in
2 full force and effect only until September 30, 1999 at which time the
3 amendments and additions made pursuant to the provisions of this act
4 shall be deemed to be repealed].
5 § 4. This act shall take effect April 1, 1999; provided, however, that
6 the amendments to section 159-i of the executive law made by section one
7 of this act shall not affect the expiration of such section and shall be
8 deemed to expire therewith.
9 PART E
10 § 1. Legislative findings and declaration. The legislature hereby
11 finds and declares that while the New York state uniform fire prevention
12 and building code originally enacted January 1, 1984 has served the
13 people of the state well, certain provisions are outdated or difficult
14 to use. Further, because the code is unique to the state of New York,
15 its use discourages the construction of new facilities and the creation
16 of new jobs for people of the state. The legislature also finds that the
17 New York state energy conservation construction code has become outdated
18 and no longer provides for the best energy methods and technologies.
19 The legislature hereby declares that it shall be the public policy of
20 the state of New York to modernize and simplify the current uniform fire
21 prevention and building code and energy conservation construction code
22 and to achieve, to the extent reasonably achievable, national and
23 intra-state uniformity by directing the secretary of state to adopt a
24 new uniform fire prevention and building code which shall be based upon
25 a national or international model code or codes, such as those developed
26 by Building Officials and Code Administrators International, Inc. and
27 National Fire Protection Association and such other provisions as may be
28 necessary to address conditions specific to the state. Such action will
24 13001-04-9
1 lead to the application of the best and most widely utilized
2 construction and safety methodologies to new construction and reno-
3 vations of buildings in this state. In so doing, it will enhance the
4 safety and energy efficiency standards of the public and buildings,
5 maintain uniformity on a local and national basis and enhance the over-
6 all economy of the state.
7 § 2. Subdivision 2 of section 377 of the executive law is renumbered
8 subdivision 3 and a new subdivision 2 is added to read as follows:
9 2. a. The secretary shall, on or before two years from the effective
10 date of this subdivision, or as soon thereafter as may be practicable,
11 but no sooner than one year from the effective date of this subdivision,
12 adopt, by regulation following public hearing, a new New York state
13 uniform fire prevention and building code based upon a national or
14 international model code or codes, provided however, that prior to said
15 adoption, the secretary has certified through publication in the state
16 register that:
17 (i) the codes to be adopted substantially meet or exceed the level of
18 protection to the public and buildings that is afforded under the
19 current code as of the effective date of this subdivision; and
20 (ii) adequate training has been provided to state and local officials
21 responsible for the administration and enforcement of the provisions of
22 the code.
23 Within the secretary’s discretion, such new uniform code shall be
24 comprised in whole or in part of such national or international model
25 code or codes, and will be referred to as the uniform code.
26 b. The council shall consider the periodic amendments adopted by the
27 model code organization responsible for developing the model code or
28 codes adopted by the secretary and shall determine whether to reject or
25 13001-04-9
1 accept and adopt such amendments in whole or in part within twelve
2 months of the publication of the amendments by the model code organiza-
3 tion or organizations.
4 c. The adoption of any model code shall not be construed to prevent
5 the council from adopting different or supplemental code provisions for
6 the purpose of addressing any special needs and conditions associated
7 with New York buildings, structures and premises, provided however, that
8 any such provisions must: (i) be necessary to address a condition in New
9 York that requires a standard different from such model code or codes;
10 (ii) be necessary to promote the general health, safety and welfare of
11 the public; and (iii) be consistent with accepted national engineering
12 and fire prevention practices, standards and procedures contained in the
13 code adopted by the secretary. In order to insure that the integrity of
14 the uniform code, adopted pursuant to this article, is not compromised
15 by excessive or unnecessary amendments, the secretary shall appoint a
16 transitional technical advisory committee which may develop criteria, in
17 addition to those set forth in subparagraphs (i) through (iii) of this
18 paragraph, which must be satisfied prior to determining whether any
19 proposed amendment to or deletion from the uniform code should be
20 adopted. Such committee shall, at a minimum, have members representing:
21 paid fire services; volunteer fire services; code enforcement officers;
22 architects; professional engineers; persons with disabilities; building
23 contractors; experts on energy conservation; and local government repre-
24 sentatives employed by a city, town or village. The committee shall
25 recommend such criteria to the secretary who may, pursuant to regu-
26 lation, adopt any or all such criteria as the secretary deems to be
27 consistent with the purposes of this article. The transitional committee
28 shall be appointed no later than sixty days after this subdivision shall
26 13001-04-9
1 have become a law and shall continue in existence until January first,
2 two thousand, unless the secretary determines that a longer period of
3 service is necessary to accomplish the goals set forth in this subdivi-
4 sion.
5 § 3. Section 378 of the executive law is REPEALED.
6 § 4. Subdivisions 1 and 2 of section 379 of the executive law, subdi-
7 vision 1 as amended by chapter 772 of the laws of 1986 and subdivision 2
8 as added by chapter 707 of the laws of 1981, are amended to read as
9 follows:
10 1. Except in the case of factory manufactured homes, intended for use
11 as one or two family dwelling units or multiple dwellings of not more
12 than two stories in height, the legislative body of any local government
13 [may duly] shall petition the council if it proposes to enact or adopt
14 local laws or ordinances imposing higher or more restrictive standards
15 for construction within the jurisdiction of such local government than
16 are applicable generally to such local government in the uniform code.
17 [Within thirty days of such enactment or adoption, the chief executive
18 officer, or if there be none, the chairman of the legislative body of
19 such local government, shall so notify the council, and shall petition
20 the council for a determination of whether such local laws or ordinances
21 are more stringent than the standards for construction applicable gener-
22 ally to such local government in the uniform code.] During the period in
23 which either the council or the secretary is considering such petition,
24 such local laws or ordinances shall [remain in full force and] not take
25 effect.
26 2. [If] Within one hundred eighty days from receipt of a completed
27 petition, the council shall determine whether such standards are appro-
28 priate and notify the local government whether such standards will be
27 13001-04-9
1 approved or rejected in whole or in part. In order to approve for
2 adoption the provisions contained in such a petition the council [finds]
3 must find that [such] the provisions proposed establish higher or more
4 restrictive standards than those existing in the uniform code, conform
5 with accepted engineering and fire prevention practices and the purposes
6 of this article, and are reasonably necessary because of [special]
7 unique conditions prevailing within the local government [and that such
8 standards conform with accepted engineering and fire prevention prac-
9 tices and the purposes of this article, the council shall adopt such
10 standards, in whole or part] but which do not merit proposal as amend-
11 ments to the uniform code. The council shall have the power to limit
12 the term or duration of such standards, impose conditions in connection
13 with the adoption thereof, and to terminate such standards at such
14 times, and in such manner as the council may deem necessary, desirable
15 or proper. If the council fails to render a determination on a complete
16 petition within one hundred eighty days of receipt, the requesting local
17 government may adopt such standards, in whole or part to the extent they
18 are contained in the petition originally submitted to the council. The
19 council shall review all such local standards every three years to
20 ensure that each standard is necessary and appropriate in light of any
21 changes to the uniform code since the standard was adopted. If the coun-
22 cil finds that any of these standards is no longer necessary and appro-
23 priate, the council shall direct modification or repeal of such stand-
24 ard.
25 § 5. Subdivision 4 of section 379 of the executive law is REPEALED and
26 subdivision 5 is renumbered subdivision 4.
28 13001-04-9
1 § 6. The opening paragraph of subdivision 1 and subdivision 2 of
2 section 381 of the executive law, as added by chapter 707 of the laws of
3 1981, are amended to read as follows:
4 The secretary shall promulgate rules and regulations prescribing mini-
5 mum standards for administration and enforcement of the uniform fire
6 prevention and building code promulgated in accordance with [sections]
7 section three hundred seventy-seven [and three hundred seventy-eight] of
8 this article. Such rules and regulations shall become effective not
9 later than the first day of January, nineteen hundred eighty-five. The
10 secretary shall promulgate such regulations after public hearing and
11 after considering reaction to initial administration and enforcement of
12 the uniform building and fire prevention code, including how local
13 governments have organized to provide for such initial administration
14 and enforcement. Such rules and regulations shall address the nature and
15 quality of enforcement and shall include, but not be limited to the
16 following:
17 2. Except as may be provided in regulations of the secretary pursuant
18 to subdivision one of this section, every local government shall admin-
19 ister and enforce the uniform fire prevention and building code on and
20 after the first day of January, nineteen hundred eighty-four, provided,
21 however, that a local government may enact a local law prior to the
22 first day of July [in any year], nineteen hundred ninety-eight providing
23 that it will not enforce the uniform code [on and after the first day of
24 January next succeeding]. In such event the county in which said local
25 government is situated shall administer and enforce the uniform code
26 within such local government from and after the first day of January
27 next succeeding the effective date of such local law, in accordance with
28 the provisions of paragraph b of subdivision five of this section unless
29 13001-04-9
1 the county shall have enacted a local law prior to the first day of
2 July, nineteen hundred ninety-eight providing that it will not enforce
3 the uniform code within that county. In such event the secretary in the
4 place and stead of the local government shall, directly or by contract,
5 administer and enforce the uniform code. A local government or a county
6 may repeal a local law which provides that it will not enforce the
7 uniform code and shall thereafter administer and enforce the uniform
8 code as provided above. Local governments may provide for joint adminis-
9 tration and enforcement by agreement pursuant to article five-G of the
10 general municipal law. Any local government may enter into agreement
11 with the county in which such local government is situated to administer
12 and enforce the uniform code within such local government. Local
13 governments or counties may charge fees to defray the costs of adminis-
14 tration and enforcement.
15 § 7. Section 11-102 of the energy law is amended by adding three new
16 subdivisions 10, 11 and 12 to read as follows:
17 10. "Secretary." The secretary of state.
18 11. "Cost effective." The cost of materials and their installation to
19 meet code standards would be equal to or less than the present value of
20 energy savings that could be expected over a ten year period in the
21 building in which such materials are installed.
22 12. "Council." The state fire prevention and building code council
23 created by article eighteen of the executive law.
24 § 8. Section 11-103 of the energy law, as amended by chapter 292 of
25 the laws of 1998, is amended to read as follows:
26 § 11-103. Applications. 1. (a) The code relating to the construction
27 of all buildings, or classes of buildings in the state, for purposes of
28 minimizing the consumption of energy and providing for the efficient
30 13001-04-9
1 utilization of the energy expended in the use and occupancy of buildings
2 is continued. [Such code shall be at least equal to the standards spec-
3 ified in standard 90-75 of the American Society of Heating, Refrigerat-
4 ing and Air Conditioning Engineers, Inc., entitled "Energy Conservation
5 in New Building Design", known hereafter as ASHRAE Standard 90-75; and
6 to the reference standards upon which the ASHRAE Standard 90-75 is
7 based; provided however, that in addition any portion of the code which
8 applies to residential construction shall be at least equivalent to the
9 requirements set forth in the public service commission opinions, PSC
10 76-16 (C) dated May fifteenth and sixteenth, nineteen hundred seventy-
11 seven, and appendices thereto. The code shall apply to all buildings for
12 which application for a building permit is made and plans are filed in
13 this state on or after January first, nineteen hundred seventy-nine,
14 which date shall be the effective date of the code.
15 (b)] The rules and regulations relating specifically to the substan-
16 tial renovation of all buildings, or classes of buildings in the state,
17 for purposes of minimizing the consumption of energy and providing for
18 the efficient utilization of the energy expended in the use and occupan-
19 cy of such buildings are continued. Such rules and regulations shall
20 apply only to that portion of a building subsystem or subsystems which
21 is replaced; provided that fifty percent or more of such building
22 subsystem or subsystems is replaced.
23 (b) The secretary shall, on or before two years from the effective
24 date of this amended section, or as soon thereafter as may be practica-
25 ble, but no sooner than one year from the effective date of this amended
26 section, adopt, by regulation following public hearing, a new New York
27 state energy conservation construction code based upon the standards for
28 residential and commercial buildings contained in the International
31 13001-04-9
1 Energy and Construction Code prepared by the International Code Commis-
2 sion, provided however, that prior to said adoption, the secretary has
3 certified through publication in the state register that the code to be
4 adopted is cost effective with respect to building construction in the
5 state.
6 (c) The adoption of the energy, conservation and construction code
7 based upon the International Energy Conservation Code shall not be
8 construed to prevent the State fire prevention and building code council
9 from adopting different or supplemental code provisions for the purpose
10 of addressing any special needs and conditions associated with New York
11 buildings, structures and premises, provided however, that any such
12 provisions must: (i) be necessary to address a condition in New York
13 that requires a standard different from such model code or codes; (ii)
14 be necessary to promote the general health, safety and welfare of the
15 public; (iii) be consistent with accepted national engineering and ener-
16 gy conservation practices, standards and procedures contained in the
17 code adopted by the secretary; and (iv) be cost effective with respect
18 to building construction in the state.
19 2. The [state fire prevention and building code] council [is author-
20 ized, from time to time as it deems appropriate and consistent with the
21 purposes of this article, to review and amend the code through rules and
22 regulations] shall consider the periodic amendments developed by the
23 International Code Commission and shall determine whether to reject or
24 accept and adopt such amendments in whole or in part within twelve
25 months of the publication of the amendments by the model code organiza-
26 tion provided that the code remains cost effective with respect to
27 building construction in the state. [The code shall be deemed cost
28 effective if the cost of materials and their installation to meet its
32 13001-04-9
1 standards would be equal to or less than the present value of energy
2 savings that could be expected over a ten year period in the building in
3 which such materials are installed] The New York state energy research
4 and development authority shall be consulted prior to the promulgation
5 of any substantial revision of the energy code. Prior to the promulga-
6 tion of any substantial revision of the energy code, the council may
7 convene an advisory committee which shall include builders, building
8 designers, representatives of utilities and other energy providers,
9 energy conservation experts, environmental advocates and consumer advo-
10 cates.
11 3. [Notwithstanding any other provision of law, the state fire
12 prevention and building code] The secretary and the council in accord-
13 ance with the mandate under this article shall have exclusive authority
14 among state agencies to promulgate a construction code incorporating
15 energy conservation features. Any other code, rule or regulation hereto-
16 fore promulgated or enacted by any other state agency, incorporating
17 specific energy conservation requirements applicable to the construction
18 of any building, shall be superseded by the code promulgated pursuant to
19 this section.
20 4. The secretary [of state] is authorized to issue written interpreta-
21 tions of the code upon written request of a permit applicant or the
22 official responsible for the administration and enforcement of the
23 provisions of the code. Subsequent enforcement of the code shall be
24 consistent with such written interpretations.
25 § 9. Section 11-105 of the energy law, as amended by chapter 292 of
26 the laws of 1998, is amended to read as follows:
27 § 11-105. Limitation of application. Notwithstanding the provisions of
28 subdivision one of section 11-103 of this article, the [state fire
33 13001-04-9
1 prevention and building code] council, by regulation, may limit the
2 application of any portion of the code so as to include or exclude
3 classes or types of buildings, according to the use thereof or the cost
4 effectiveness of the code with respect to any such class or type of
5 building, or according to any other distinction as may make differen-
6 tiation or separate classification or regulation necessary, proper or
7 desirable, so long as any such limitation is consistent with the
8 purposes of this article and the criteria set forth in section 11-104 of
9 this article.
10 § 10. Subdivision 2 of section 11-106 of the energy law, as amended by
11 chapter 292 of the laws of 1998, is amended to read as follows:
12 2. An application for a variance or modification of any standard or
13 requirement of the code shall be made to the secretary [of state].
14 § 11. Section 11-109 of the energy law, as added by chapter 397 of the
15 laws of 1978, subdivision 1 as amended by chapter 516 of the laws of
16 1984 and subdivision 2 as amended by chapter 292 of the laws of 1998, is
17 amended to read as follows:
18 § 11-109. Municipal regulations. 1. Nothing in this article shall be
19 construed as abrogating or impairing the power of any municipality or
20 the secretary [of state] to enforce the provisions of any local building
21 regulations or the state uniform fire prevention and building
22 construction code, provided that such local building regulations are not
23 inconsistent with the code. [Nor shall anything] Except as provided in
24 subdivision two of this section, nothing in this article shall be
25 construed as abrogating or impairing the power of any municipality to
26 promulgate a local energy conservation construction code [more strin-
27 gent] containing higher or more restrictive standards than the code.
34 13001-04-9
1 2. Any municipality which proposes to adopt a local energy conserva-
2 tion construction code or any amendments or revisions thereof in accord-
3 ance with this section shall first petition the council to determine
4 whether such code imposes higher or more restrictive standards. Within
5 one hundred eighty days from the receipt of a completed petition, the
6 council shall determine whether such standards are appropriate and noti-
7 fy the local government whether such standards will be approved or
8 rejected in whole or in part. In order to approve for adoption the
9 provisions contained in such a petition the council must find that the
10 provisions proposed establish higher or more restrictive standards than
11 exist in the model code, conform with accepted engineering and energy
12 conservation practices and the purposes of this article, and are reason-
13 ably necessary because of unique conditions prevailing within the local
14 government but do not merit proposal as amendments to the model code.
15 The council shall have the power to limit the term or duration of such
16 standards, impose conditions in connection with the adoption thereof,
17 and to terminate such standards at such times, and in such manner as the
18 council may deem necessary, desirable or proper. If the council fails to
19 render a determination on a completed petition within one hundred eighty
20 days of receipt, the requesting local government may adopt such stand-
21 ards, in whole or part to the extent they are contained in the petition
22 originally submitted to the council. The council shall review all such
23 local standards every three years to ensure that each standard is neces-
24 sary and appropriate in light of any changes to the model code since the
25 standard was adopted. If the council finds that any of these standards
26 is no longer necessary and appropriate, the council shall direct modifi-
27 cation or repeal of such standard. Any municipality which adopts a local
28 energy conservation construction code or any amendments or revisions
35 13001-04-9
1 thereof in accordance with this section shall file a copy of such code
2 and any amendments or revisions thereof with the [state fire prevention
3 and building code] council within thirty days after promulgation or
4 adoption of such code, amendments or revisions. [The failure to comply
5 with the provisions of this subdivision shall not impair or otherwise
6 affect the validity of such local code or amendment or revision.]
7 § 12. Section 11-110 of the energy law, as amended by chapter 292 of
8 the laws of 1998, is amended to read as follows:
9 § 11-110. Reporting; cooperation of other agencies. 1. The secretary
10 [of state] shall report yearly to the legislature and the governor as to
11 the operation and effectiveness of the state energy conservation
12 construction code.
13 2. Agencies and municipalities of the state shall provide the secre-
14 tary [of state] with such cooperation and assistance as he may deem
15 necessary to carry out the purposes of this article.
16 § 13. Section 54-g of the state finance law is REPEALED and a new
17 section 54-g is added to read as follows:
18 § 54-g. State assistance to local governments for support of activ-
19 ities related to fire prevention and building codes. 1. Upon the
20 adoption by the secretary of state of a new New York state uniform fire
21 prevention and building code pursuant to subdivision two of section
22 three hundred seventy-seven of the executive law, and a new New York
23 state energy conservation construction code pursuant to section 11-103
24 of the energy law, each city, village, and town, and each county which
25 enforces the adopted code pursuant to subdivision two of section three
26 hundred eighty-one of the executive law, may be eligible, subject to
27 rules and regulations promulgated by the secretary of state, to receive
28 reimbursement for the costs associated with training, including travel
36 13001-04-9
1 and training materials, and equipment, including computer hardware and
2 software but excluding vehicles, associated with the administration and
3 enforcement of the aforementioned new codes, from moneys appropriated by
4 the state up to a statewide annual amount of three million dollars,
5 subject to the provisions of subdivisions two and three of this section.
6 2. Each city, village and town, and each county which enforces the
7 adopted code pursuant to subdivision two of section three hundred eight-
8 y-one of the executive law, shall pay for the costs of the adminis-
9 tration and enforcement of the New York state uniform fire prevention
10 and building code and the new New York state energy conservation
11 construction code in the first instance. Not later than the first day of
12 May following a state fiscal year in which such costs were incurred,
13 each city, village and town and county which administers and enforces
14 the state code shall certify the amount of their actual eligible
15 expenses to the secretary of state in a format proscribed by the secre-
16 tary of state and approved by the director of the budget. Personal
17 service expenses shall not be eligible for reimbursement. In the event
18 that the claims for the previous state fiscal year’s eligible expenses
19 submitted as of May first shall exceed the amount of the appropriation,
20 the secretary of state shall distribute the available funds propor-
21 tionally on the basis of the eligible certified expenses submitted by
22 the city, village, town, and county for that prior fiscal year.
23 3. Cities, villages and towns in which the secretary of state adminis-
24 ters and enforces the New York state uniform fire prevention and build-
25 ing code pursuant to section three hundred eighty-one of the executive
26 law shall not be eligible to receive reimbursement under this section.
27 § 14. Within one hundred twenty days of the adoption of the new New
28 York state uniform fire prevention and building code provided for in
37 13001-04-9
1 this act, a local government must notify the code council of its intent
2 to retain some, all or none of its local standards that exist as of the
3 date this act shall have become a law.
4 § 15. Within one hundred twenty days of the adoption of the new New
5 York state energy conservation construction code provided for in this
6 act, a local government must notify the secretary of state of its intent
7 to retain some, all or none of its local energy code standards that
8 exist as of the date this act shall have become a law.
9 § 16. This act shall take effect immediately except that sections four
10 and six of this act shall take effect upon the adoption of the new New
11 York state uniform fire prevention and building code promulgated pursu-
12 ant to subdivision 2 of section 377 of the executive law as added by
13 section two of this act.
14 PART F
15 § 1. Subdivision 1 of section 66-b of the state finance law is
16 amended by adding a new closing paragraph to read as follows:
17 For purposes of millennium compliance of computer software and comput-
18 er hardware, personal property to be financed through certificates of
19 participation issued pursuant to this article may include consultant
20 services for software developments and improvements notwithstanding that
21 associated computer software and/or computer hardware are not being
22 financed through such certificates of participation and to the extent
23 such consultant services result in usable and, therefore, amortizable
24 software developments and improvements and the state retains the rights
25 of ownership to such developments and improvements.
26 § 2. Section 66-c of the state finance law, as added by chapter 583 of
27 the laws of 1986, is amended to read as follows:
38 13001-04-9
1 § 66-c. Certificates of participation not debt. Certificates of
2 participation or similar instruments issued pursuant to this article and
3 the underlying installment purchase or lease purchase contracts do not
4 constitute or create debt of the state as defined in article seven of
5 the state constitution, nor a contractual obligation in excess of the
6 amounts appropriated therefor, and the state has no continuing legal or
7 moral obligation to appropriate money for said payments or other obli-
8 gations due under the installment purchase contracts. In the case of
9 the failure to appropriate, the sole security for any remaining periodic
10 payments shall be the property, if any, which may be subject to a lien
11 pursuant to the terms of the installment purchase or lease purchase
12 contract and debt service reserve funds in the custody of the trustee or
13 any other remaining proceeds, subject to the provisions of section
14 sixty-six-h of this article.
15 § 3. This act shall take effect April 1, 1999 and shall expire and be
16 deemed repealed March 31, 2000.
17 PART G
18 § 1. Subparagraph (b) of paragraph 2 of subdivision b of section 23
19 of the retirement and social security law is amended to read as follows:
20 (b) In the case of an employer electing to participate after July
21 first, nineteen hundred forty-eight and before March thirty-first, nine-
22 teen hundred ninety-nine, an initial actuarial valuation shall be made
23 to determine the accrued liability of such employer by reasons of the
24 prior service of those of its employees who are members of the retire-
25 ment system. The rate of deficiency contribution for such employer
26 shall then be determined. Such rate shall be that proportion of the
27 total annual compensation of such employees as is equivalent to four per
28 centum of such accrued liability. Such rate shall be applied to the
39 13001-04-9
1 employer’s payroll of members, as used in the annual valuation. The
2 cost of making such initial valuation shall be assessed against and paid
3 by such employer.
4 Notwithstanding the above, for employers who commence participation in
5 the retirement system on or after April first, nineteen hundred ninety-
6 nine, the accrued liability shall be amortized in equal annual install-
7 ments over a twenty-five year period. With respect to such employers
8 the cost of making such initial valuation shall be assessed against and
9 paid by the employer. The provisions of subdivisions c, d and e of this
10 section shall not apply to employers who commence participation in the
11 retirement system on or after April first, nineteen hundred ninety-nine.
12 § 2. Paragraph 3 of subdivision b of section 23 of the retirement and
13 social security law is amended by adding a new subparagraph (c) to read
14 as follows:
15 (c) Notwithstanding any other provision of this subdivision or any
16 other law, the administrative contribution for a year, as determined
17 pursuant to paragraph one of subdivision b of this section, shall be
18 paid from the pension accumulation fund if payment from such fund will
19 not affect the normal contribution for such year.
20 § 3. Subparagraph (b) of paragraph 2 of subdivision b of section 323
21 of the retirement and social security law, as added by chapter 1000 of
22 the laws of 1966, is amended to read as follows:
23 (b) In the case of an employer who elects to participate in the
24 [policemen’s and firemen’s] police and fire retirement system on or
25 after April first, nineteen hundred sixty-seven and before March thir-
26 ty-first, nineteen hundred ninety-nine, an initial actuarial valuation
27 shall be made to determine the accrued liability of such employer by
28 reason of the prior service of those of its employees who are members of
40 13001-04-9
1 the retirement system. The rate of deficiency contribution for such
2 employer shall then be determined. Such rate shall be that proportion
3 of the total annual compensation of such employees as is equivalent to
4 four per centum of such accrued liability. Such rate shall be applied
5 to the employer’s payroll of members, as used in the annual valuation.
6 The cost of making such initial valuation shall be assessed against and
7 paid by such employer.
8 Notwithstanding the above, for employers who commence participation in
9 the retirement system on or after April first, nineteen hundred ninety-
10 nine, the accrued liability shall be amortized in equal annual install-
11 ments over a twenty-five year period. With respect to such employers
12 the cost of making such initial valuation shall be assessed against and
13 paid by the employer. The provisions of subdivisions c, d and e of this
14 section shall not apply to employers who commence participation in the
15 retirement system on or after April first, nineteen hundred ninety-nine.
16 § 4. Paragraph 3 of subdivision b of section 323 of the retirement and
17 social security law is amended by adding a new subparagraph (c) to read
18 as follows:
19 (c) Notwithstanding any other provision of this subdivision or any
20 other law, the administrative contribution for a year, as determined
21 pursuant to paragraph one of subdivision b of this section, shall be
22 paid from the pension accumulation fund if payment from such fund will
23 not affect the normal contribution for such year.
24 § 5. This act shall take effect immediately.
25 PART H
26 § 1. The state comptroller is hereby authorized and directed to loan
27 money in accordance with the provisions set forth in subdivision 5 of
41 13001-04-9
1 section 4 of the state finance law to the following funds and/or
2 accounts:
3 1. Tuition reimbursement fund (050):
4 a. Proprietary vocational school supervision account (02).
5 2. Local government records management improvement fund (052).
6 3. Health facilities capital improvement fund (071).
7 4. Dedicated highway and bridge trust fund (072).
8 5. State parks infrastructure trust fund (076).
9 6. Clean water/clean air implementation fund (079).
10 7. State lottery fund (160).
11 8. Federal health, education and human services fund (265):
12 a. Miscellaneous agencies (80).
13 9. Federal block grant fund (269):
14 a. 1997 community services block grant (J6).
15 b. 1998 community services block grant (K6).
16 c. 1999 community services block grant (L6).
17 d. 2000 community services block grant.
18 10. Federal operating grants fund (290):
19 a. Division of military and naval affairs training sites (30).
20 b. Division of military and naval affairs army and national
21 guard contract (35).
22 c. Division of military and naval affairs air national guard
23 contract (36).
24 d. Division of military and naval affairs air national guard
25 security guards (38).
26 e. Division of military and naval affairs emergency management
27 account (72).
28 f. Federal library services technology act account (90).
42 13001-04-9
1 g. Federal energy management account - state heating oil
2 program (AE).
3 h. National park rehab (A1).
4 i. Division of veterans' affairs - veterans' education account
5 (B5).
6 j. NW Brooklyn drug court (DE).
7 k. Federal equal opportunity (G1).
8 l. National community service fund (JA).
9 m. Rural and small urban transit aid account (L2).
10 n. Federal housing and urban development account-local planning
11 (L3).
12 o. Urban mass transportation administration account-local
13 planning (L4).
14 p. Federal fund for pipeline safety account - 1983 pipeline
15 safety grant (L8).
16 q. Foster care and adoption (W6).
17 r. Buffalo city drug plan (W7).
18 s. Suffolk district drug plan (W9).
19 t. Encon agriculture (Y1).
20 u. Encon commerce (Y2).
21 v. Wildlife restoration (Y3).
22 w. Encon EPA (Y4).
23 x. Interior Non Wildlife (Y7).
24 y. Air Pollution Control (Y8).
25 z. Hazardous Waste (Y9).
26 aa. Encon ISTEA (A9).
27 bb. COPSMORE 98 grant (2P).
28 11. Federal capital projects fund (291).
43 13001-04-9
1 12. Environmental conservation special revenue fund (301):
2 a. Hazardous bulk storage account (F7).
3 b. Utility environmental regulation account (H4).
4 c. Low level radioactive waste siting account (K5).
5 d. Recreation account (K6).
6 e. Conservationist magazine account (S4).
7 f. Environmental regulatory account (S5).
8 g. Mined land reclamation program acct (XB).
9 13. Environmental protection and oil spill compensation fund (303).
10 14. Clean air fund (314).
11 15. Centralized services account (323).
12 16. Suburban transportation fund (327).
13 17. Agency enterprise fund (331):
14 a. OGS convention center account (55).
15 18. Agencies internal service fund (334).
16 19. Miscellaneous special revenue fund (339):
17 a. Adoption information registry account (01).
18 b. Statewide planning and research cooperative system account
19 (03).
20 c. Energy office utility conservation activities account (06).
21 d. New York state thruway authority account (08).
22 e. Office of mental retardation and developmental disabilities
23 nonpersonal service patient income account (10).
24 f. Empire state plaza arts center corporation account (12).
25 g. Civic center account (14).
26 h. Financial control board account (15).
27 i. Yonkers emergency financial control board account (16).
28 j. Tri-state federal account (17).
44 13001-04-9
1 k. Quality of care account (20).
2 l. Continuing care retirement community account (28).
3 m. Surplus commodity container account (40).
4 n. Hospital and nursing home management account (44).
5 o. State university dormitory income reimbursable account (47).
6 p. Energy research account (60).
7 q. Emergency management account (61).
8 r. Criminal justice services improvement account (62).
9 s. New York fire academy account (72).
10 t. Department of transportation and fees and permits account
11 (77).
12 u. Environmental laboratory reference fee account (81).
13 v. Health services account (86).
14 w. Clinical laboratory reference fee account (90).
15 x. Minority and women’s business development account (91).
16 y. Public employment relations board account (93).
17 z. Teacher certification program account (A4).
18 aa. Banking department account (A5).
19 bb. Cable television account (A6).
20 cc. Hospital based grants program account (AF).
21 dd. Indirect cost recovery account (AH).
22 ee. High school equivalency program account (AI).
23 ff. Rail safety inspection account (AQ).
24 gg. OMRDD quality assurance audit account (AS).
25 hh. Administrative reimbursement account (AR).
26 ii. Millennium compliance account (B3).
27 jj. Insurance department account (B6).
28 kk. Workers' compensation account (B7).
45 13001-04-9
1 ll. Bell jar account (BJ).
2 mm. Industry and utility service account (BK).
3 nn. Energy efficient rebate account (BL).
4 oo. Real property disposition account (BP).
5 pp. Auditing services refund account (BN).
6 qq. Parking account (BQ).
7 rr. Procurement revenue account (BR).
8 ss. Asbestos safety training program account (BW).
9 tt. Improvement of real property tax administration account (BZ).
10 uu. Public service account (C3).
11 vv. Revenue arrearage account (CR).
12 ww. State central register account (CY).
13 xx. Plant industry account (CZ).
14 yy. Batavia school for the blind account (D9).
15 zz. Surplus property account (DE).
16 aaa. Financial oversight account (DI).
17 bbb. Medicaid fraud control (DL).
18 ccc. Regulation of Indian gaming account (DT).
19 ddd. Special conservation activities account (DU).
20 eee. Office of the professions account (E3).
21 fff. Rome school for the deaf account (E6).
22 ggg. Seized assets account (E8).
23 hhh. Administrative adjudication account (E9).
24 iii. Federal salary sharing account (EC).
25 jjj. Transportation regulation account (F1).
26 kkk. Managed care pilot account (FD).
27 lll. Second opinion panel account (FE).
28 mmm. Local services account (G3).
46 13001-04-9
1 nnn. Division of housing and community renewal housing information
2 systems special revenue account (H1).
3 ooo. Housing special revenue account (H2).
4 ppp. Triplicate prescription forms account (H5).
5 qqq. Department of motor vehicles compulsory insurance account
6 (H7).
7 rrr. Professional medical conduct account (H9).
8 sss. Housing credit agency application fee account (J5).
9 ttt. Roger Tory Peterson account (K7).
10 uuu. Adult cystic fibrosis program account (L5).
11 vvv. Federal gasoline and diesel fuel excise tax account (L6).
12 www. Administrative reimbursement fund (L7).
13 xxx. Maternal and child HIV services account (LC).
14 yyy. Low income housing credit monitoring fee account (NG).
15 zzz. Procurement opportunities newsletter account (P4).
16 aaaa. Corporation administration account (P6).
17 bbbb. Excelsior capital corporation reimbursement account (R1).
18 cccc. Weights and measures account (R5).
19 dddd. Batavia medicaid income account (S1).
20 eeee. Rent revenue account (S8).
21 ffff. Transportation safety account (T1).
22 gggg. Transportation aviation account (T5).
23 hhhh. Solid waste management account (W3).
24 iiii. Occupational health clinics account (W4).
25 jjjj. Legal technology account (A1).
26 kkkk. Food assistance program account (19).
27 llll. Regulation of racing account.
28 mmmm. Examination and Miscellaneous revenue account.
47 13001-04-9
1 nnnn. Affordable housing program account.
2 oooo. Radiological health protection account.
3 pppp. State student financial aid audit account.
4 20. State university income fund (345):
5 a. State university general income offset account (11).
6 21. State police and motor vehicle law enforcement fund (354):
7 a. State police motor vehicle law enforcement account (02).
8 22. Youth facilities improvement fund (357).
9 23. Highway safety program fund (362).
10 24. Drinking water program management and administration fund (366).
11 25. New York City county clerks offset fund (368).
12 26. Housing assistance fund (374).
13 27. Housing program fund (376).
14 28. Department of transportation - engineering services fund (380).
15 29. Miscellaneous capital projects (387):
16 a. Clean air capital account (08).
17 30. CUNY capital projects fund (388).
18 31. Mental hygiene facilities capital improvement fund (389).
19 32. Joint/labor management administration fund (394):
20 a. Joint labor/management administration fund (01).
21 33. Audit and control revolving account (395):
22 a. Executive direction internal audit account (04).
23 34. Health insurance internal service fund (396).
24 35. Correctional industries revolving account (397).
25 36. Correctional facilities capital improvement fund (399).
26 § 2. Notwithstanding section 97-n of the state finance law, and in
27 accordance with section 4 of the state finance law, the comptroller is
28 hereby authorized and directed, upon request of the director of the
48 13001-04-9
1 budget, to transfer any moneys in the Hudson river valley greenway fund
2 (056) between the Hudson river valley greenway communities council
3 account (01) and the greenway heritage conservancy of the Hudson river
4 valley account (02) on or before March 31, 2000.
5 § 3. The comptroller is authorized and directed to deposit to the
6 general fund - state purposes account reimbursements from moneys appro-
7 priated or reappropriated to the correctional facilities improvement
8 fund (399) by a chapter of the laws of 1998. Reimbursements shall be
9 available for spending from appropriations made to the department of
10 correctional services in the general fund - state purposes account by a
11 chapter of the laws of 1999 for costs associated with the administration
12 and security of capital projects and for other costs which are attribut-
13 able, according to a plan, to such capital projects.
14 § 4. Subdivisions 2 and 3 of section 97-ss of the state finance law,
15 as amended by section 9 of part B of chapter 57 of the laws of 1998, are
16 amended to read as follows:
17 2. Notwithstanding the provisions of paragraph (e) of subdivision two
18 of section thirty-nine of the judiciary law and the provisions of subdi-
19 vision four of section ninety-four of this article, for the fiscal years
20 beginning April first, nineteen hundred ninety-six and ending March
21 thirty-first, [nineteen hundred ninety-nine] two thousand, the tax
22 proceedings fee account shall consist of all monies received by the
23 state as reported by the state comptroller pursuant to subdivision three
24 of section two thousand four hundred two of the surrogate’s court proce-
25 dure act which are in excess of the sum of an amount equal to [three]
26 four times the monies reported by the state comptroller pursuant to
27 subdivision three of section two thousand four hundred two of the surro-
49 13001-04-9
1 gate’s court procedure act in the fiscal year beginning April first,
2 nineteen hundred ninety-five, and seven million dollars.
3 3. Notwithstanding the provisions of paragraph (e) of subdivision two
4 of section thirty-nine of the judiciary law and the provisions of subdi-
5 vision four of section ninety-four of this article, for the fiscal year
6 beginning April first, [nineteen hundred ninety-nine] two thousand, and
7 for all subsequent fiscal years, the tax proceedings fee account shall
8 consist of all monies received by the state as reported by the state
9 comptroller pursuant to subdivision three of section two thousand four
10 hundred two of the surrogate’s court procedure act which are in excess
11 of an amount equal to the monies reported by the state comptroller
12 pursuant to subdivision three of section two thousand four hundred two
13 of the surrogate’s court procedure act in the fiscal year beginning
14 April first, nineteen hundred ninety-five.
15 § 5. Notwithstanding the provisions of section 171-a of the tax law or
16 any other provisions of law to the contrary, during the fiscal year
17 beginning April 1, 1999, the state comptroller is hereby authorized and
18 directed to deposit in to the fund created pursuant to section 97-rrr of
19 the state finance law (the school tax relief fund) from amounts
20 collected pursuant to article 22 of the tax law and pursuant to a sched-
21 ule submitted by the director of the budget, $1,223,000,000, or such
22 lesser amount as may be certified in such schedule as necessary to meet
23 the purposes of such fund for the fiscal year beginning April 1, 1999.
24 § 6. Section 97-ddd of the state finance law, as added by section 14
25 of part C of chapter 389 of the laws of 1997 is REPEALED and a new
26 section 97-sss is added to read as follows:
27 § 97-sss. Federal revenue maximization contract fund. 1. There is
28 hereby established in the joint custody of the state comptroller and the
50 13001-04-9
1 commissioner of taxation and finance a fund to be known as the federal
2 revenue maximization contract fund.
3 2. Such fund shall consist of those revenues specified by the office
4 of temporary and disability assistance or the department of health, as
5 approved by the director of the budget, and properly received from the
6 federal government on account of federal revenue maximization activities
7 conducted by the former department of social services or the office of
8 temporary and disability assistance or the department of health, and
9 social services districts, both directly and through their contractors,
10 that are credited or transferred thereto from any other fund or source
11 pursuant to law.
12 3. Notwithstanding any provision of law to the contrary, to the extent
13 that federal revenues specified under subdivision two of this section
14 and related to medical assistance expenditures are properly received
15 under a federal revenue maximization contract which has been properly
16 executed by the department of health, and approved by the director of
17 the budget, and are used to reduce the state and local district cost of
18 medical assistance expenditures, the commissioner of health shall,
19 subject to the approval of the director of the budget, transfer such
20 specified revenues to the federal revenue maximization contract fund and
21 shall make all payments or transfers required by this section.
22 4. Moneys in the fund, pursuant to appropriation by the legislature
23 and issuance of a certificate of approval by the director of the budget
24 shall be made available for the following purposes:
25 (a) payment of fees, pursuant to a contract approved by the state
26 comptroller, to a contractor of the former department of social services
27 or the office of temporary and disability assistance or the department
28 of health providing federal revenue maximization services; and
51 13001-04-9
1 (b) payment or reimbursement of the federal share of social services
2 district expenditures based on social services district claims for addi-
3 tional federal reimbursements submitted in accordance with section one
4 hundred thirty-one-g of the social services law and identified by the
5 commissioner of the office of temporary and disability assistance or the
6 department of health, as federal revenue maximization claims submitted
7 on behalf of a city or county department or social services district.
8 Moneys shall be paid out of the fund on the audit and warrant of the
9 state comptroller on vouchers certified or approved by the commissioner
10 of the office of temporary and disability assistance or the department
11 of health and the director of the budget.
12 5. Notwithstanding any other provision of law to the contrary, any
13 federal revenues received by the state based on federal revenue maximi-
14 zation contractor activities which reimburse social services districts
15 for activities which have been or will be subject to state reimbursement
16 shall be proportionately reduced by the amount of state reimbursement
17 received by the social services district, or, as determined by the
18 commissioner of the office of temporary and disability assistance or the
19 department of health and the director of the budget, by any other city
20 or county agency.
21 6. Moneys in the federal revenue maximization contract fund shall be
22 kept separate and shall not be commingled with any moneys in the custody
23 of the comptroller. Further, the comptroller shall establish within the
24 federal revenue maximization contract fund a revenue maximization
25 contractor account and a local maximization account.
26 7. Upon the identification, by the director of the budget, of moneys
27 resulting from federal revenue maximization activities conducted by the
28 former department of social services or the office of temporary and
52 13001-04-9
1 disability assistance or the department of health, the state comptroller
2 shall apportion the moneys as follows:
3 (a) the first portion shall be deposited to the revenue maximization
4 contractor account, pursuant to the provisions of the applicable
5 contract with the former department of social services or the office of
6 temporary and disability assistance or the department of health, or a
7 social services district. The director of the budget shall review and
8 approve or disapprove the amounts to be so deposited;
9 (b) the second portion shall be deposited to the local maximization
10 account, in amounts to be determined by the director of the budget in
11 consultation with the commissioner of the office of temporary and disa-
12 bility assistance and any other state department or agency, as neces-
13 sary; and
14 (c) remaining moneys shall be deposited to the contingency reserve
15 fund.
16 8. Payments to a contractor of the former department of social
17 services or the office of temporary and disability assistance or the
18 department of health or a social services district, who was engaged in
19 revenue maximization activities generating reimbursement specified for
20 deposit in the federal revenue maximization fund pursuant to subdivision
21 three of this section, shall be made only from the revenue maximization
22 contractor account.
23 9. Notwithstanding any law to the contrary, and in accordance with
24 section four of the state finance law, the comptroller is hereby author-
25 ized and directed to transfer, upon request from the director of the
26 budget, $95,000,000 from any of the office of temporary and disability
27 assistance special revenue federal funds to the federal revenue maximi-
28 zation fund (359) or the contingency reserve fund (005).
53 13001-04-9
1 10. The provisions of this section shall expire on March thirty-first,
2 two thousand ten.
3 § 7. (1) Pursuant to various chapters of the laws of 1999 making
4 appropriations for capital projects, such appropriations shall be deemed
5 to provide all costs necessary and pertinent to accomplish the intent of
6 the appropriation including apportionments to departments, agencies or
7 corporations for the purposes of the specific appropriation or for
8 payment to the construction management account of the centralized
9 services fund of the New York state office of general services for the
10 preparation and review of plans, specifications, estimates, services,
11 construction management and supervision, inspection, studies,
12 appraisals, surveys, testing and environmental statements relating to
13 existing or proposed facilities.
14 Appropriations from the Capital Projects Fund, the City University of
15 New York Capital Projects Fund, the Mental Hygiene Capital Improvement
16 Fund, the Department of Health Facilities Capital Improvement Fund, the
17 Correctional Facilities Capital Improvement Fund, the Youth Facilities
18 Improvement Fund, the Housing Assistance Fund, the Housing Program Fund,
19 the Engineering Services Fund - 380, the Dedicated Highway and Bridge
20 Trust Fund - 072, the Suburban Transportation Fund - 327, the State
21 Parks Infrastructure Fund - 076, the Passenger Facility Charge Fund -
22 077, the State University Residence Hall Rehabilitation Fund - 074, the
23 State University Capital Projects Fund - 384, the New York State Canal
24 System Development Fund - 075, the Financial Security Fund, the Natural
25 Resources Damages Fund, the Federal Capital Projects Fund, the Regional
26 Aviation Fund, and the Debt Reduction Reserve Fund are appropriated in
27 accordance with the provisions of section 93 of the state finance law.
28 Moneys appropriated from each such fund type for CCP’s, for agency
54 13001-04-9
1 purposes within CCP’s, and for projects sharing the same agency purpose
2 within a CCP may be transferred among projects within a CCP in accord-
3 ance with paragraphs (a) through (g) of subdivision 4 of section 93 of
4 the state finance law and may be transferred among purposes within a CCP
5 subject to the limitations of paragraph (e) of subdivision 4 of section
6 93 of the state finance law.
7 Notwithstanding the provisions of any general or special law, the
8 provisions of paragraphs (a) through (g) of subdivision 4 of section 93
9 of the state finance law which relate to the transfer of a portion of a
10 capital appropriation to another capital appropriation shall be applica-
11 ble to appropriations from each fund.
12 (2) The following funds are eligible to be reimbursed from miscella-
13 neous receipts or the proceeds of notes or bonds sold by public authori-
14 ties, as specified in this subdivision:
15 (a) the health facilities capital improvement fund, from the proceeds
16 of the sale of notes or bonds issued by the New York state dormitory
17 authority;
18 (b) the dedicated highway and bridge trust fund, from the proceeds of
19 the sale of notes or bonds issued by the New York state thruway authori-
20 ty;
21 (c) the youth facilities improvement fund and the correctional facili-
22 ties capital improvement fund, from the proceeds of the sale of notes or
23 bonds issued by the New York state urban development corporation;
24 (d) the housing assistance fund and the housing program fund, from the
25 proceeds of the sale of notes or bonds issued by the housing finance
26 agency;
27 (e) the mental hygiene capital facilities improvement fund, from
28 miscellaneous receipts or the proceeds of the sale of notes or bonds
55 13001-04-9
1 issued by the New York state dormitory authority as successor to the
2 medical care facilities financing agency pursuant to chapter 83 of the
3 laws of 1995;
4 The comptroller shall receive such reimbursements for deposit in the
5 funds so specified.
6 (3) The comptroller is hereby authorized and directed to deposit
7 moneys received, as specified below:
8 (a) the engineering services fund shall receive reimbursements from
9 various capital appropriations;
10 (b) the financial security fund shall receive moneys recovered in
11 accordance with various required financial security arrangements for
12 environmental projects;
13 (c) the natural resources damages fund shall receive moneys recovered
14 from successful natural resource damage claims and related settlements;
15 and
16 (d) the regional aviation fund shall receive moneys from the lease of
17 Stewart Airport, including any payments due to the state from related
18 settlements or agreements.
19 (4) The comptroller shall certify monthly to the director of the budg-
20 et and the chairs of the senate finance and assembly ways and means
21 committees,the total disbursements from the correctional facilities
22 capital improvement fund (399), the department of health facilities
23 capital improvement fund (071), the housing assistance fund (374), the
24 youth facilities improvement fund (357), the housing program fund (376),
25 and the mental hygiene capital improvement fund (389), the total
26 reimbursements to such funds from bond proceeds, and the amount of
27 disbursements from such funds remaining to be financed with bond
28 proceeds. Once a year, as soon as practicable after March 31, the comp-
56 13001-04-9
1 troller shall certify to the director of the budget and the chairs of
2 the senate finance and assembly ways and means committees, for the
3 fiscal year just ended, total disbursements from the correctional facil-
4 ities capital improvement fund, the department of health facilities
5 capital improvement fund, the youth facilities improvement fund, the
6 housing assistance fund, the housing program fund, and the mental
7 hygiene capital improvement fund any amounts transferred from the capi-
8 tal projects fund to such funds for nonbondable disbursements, the total
9 reimbursements to such funds from bond proceeds, and the amount of
10 disbursements from such funds remaining to be financed with bond
11 proceeds.
12 (5) The dormitory authority of the state of New York and the depart-
13 ment of health shall report quarterly to the director of the budget the
14 amounts expended from appropriations in the capital projects fund which
15 are eligible for reimbursement from the proceeds of the bonds. The
16 housing finance agency in conjunction with the affordable housing corpo-
17 ration, the homeless housing assistance corporation and the commissioner
18 of the office of temporary and disability assistance, and the housing
19 trust fund corporation shall report quarterly to the director of the
20 budget on the amounts disbursed from appropriations in the housing
21 program fund and the housing assistance fund which are eligible for
22 repayment from the proceeds of the bonds. The dormitory authority of the
23 state of New York, as successor to the facilities development corpo-
24 ration pursuant to chapter 83 of the laws of 1995 and the office of
25 mental health, the office of mental retardation and developmental disa-
26 bilities, and the office of alcoholism and substance abuse services
27 shall report quarterly to the director of the budget on the amounts
28 disbursed from appropriations in the mental hygiene capital improvement
57 13001-04-9
1 fund which are eligible for reimbursement from the proceeds of the
2 bonds. Such reports shall be submitted to the director of the budget no
3 later than July 30, October 31, January 30, and April 30 of each state
4 fiscal year. The director of the budget shall review these reports and
5 then certify to the comptroller amounts expended from these appropri-
6 ations which are reimbursable from bond proceeds. Until such time as the
7 director of the budget determines that the amounts disbursed from such
8 funds are not reimbursable from bond proceeds, all such disbursements
9 shall be considered to be reimbursable from bond proceeds. Upon such
10 certifications for the housing assistance fund, the housing program
11 fund, and the mental hygiene capital improvement fund, the comptroller
12 is hereby authorized to transfer from the capital projects fund, pursu-
13 ant to an appropriation, an amount equal to the amount of disbursements
14 from these appropriations which have not been certified as repayable
15 from bond proceeds.
16 § 8. Notwithstanding any other law, rule or regulation to the contra-
17 ry, the comptroller is hereby authorized and directed to deposit to the
18 credit of the capital projects fund reimbursement from the proceeds of
19 notes and bonds issued by the environmental facilities corporation for a
20 capital appropriation for $27,452,000 authorized by chapter 55 of the
21 laws of 1996 to the department of environmental conservation for a
22 payment of a portion of the state’s match for federal capitalization
23 grants for the water pollution control revolving loan fund.
24 § 9. Notwithstanding any other law, rule or regulation to the contra-
25 ry, the comptroller is hereby authorized and directed to deposit to the
26 credit of the capital projects fund reimbursement from the proceeds of
27 notes and bonds issued by the environmental facilities corporation for a
28 capital appropriation for $29,960,000 authorized by chapter 55 of the
58 13001-04-9
1 laws of 1997 to the department of environmental conservation for a
2 payment of a portion of the state’s match for federal capitalization
3 grants for the water pollution control revolving loan fund.
4 § 10. Notwithstanding any other law, rule or regulation to the contra-
5 ry, the comptroller is hereby authorized and directed to deposit to the
6 credit of the capital projects fund, reimbursement from the proceeds of
7 notes and bonds issued by the environmental facilities corporation for a
8 capital appropriation for $20,241,000 authorized by chapter 55 of the
9 laws of 1998 to the department of environmental conservation for a
10 payment of a portion of the state’s match for federal capitalization
11 grants for the water pollution control revolving loan fund.
12 § 11. Notwithstanding any other law, rule or regulation to the contra-
13 ry, the comptroller is hereby authorized and directed to deposit to the
14 credit of the capital projects fund, reimbursement from the proceeds of
15 notes and bonds issued by the environmental facilities corporation for a
16 capital appropriation for $22,404,000 authorized by a chapter of the
17 laws of 1999 to the department of environmental conservation for a
18 payment of a portion of the state’s match for federal capitalization
19 grants for the water pollution control revolving loan fund, and to reim-
20 burse spending from various appropriations for projects related to the
21 New York City Watershed.
22 § 12. Notwithstanding any other law, rule or regulation to the contra-
23 ry, the state comptroller is hereby authorized and directed to use any
24 balance remaining in the mental health services fund debt service appro-
25 priation, after payment by the state comptroller of all obligations of
26 the facilities development corporation, or any successor agency,
27 required pursuant to any lease, sublease or other financing arrangement
28 between the facilities development corporation, the dormitory authority
59 13001-04-9
1 of the state of New York as successor to the New York state medical care
2 facilities financing agency and the facilities development corporation
3 pursuant to chapter 83 of the laws of 1995 and the department of mental
4 hygiene for the purpose of making payments to such agency for the amount
5 of the earnings for the investment of monies deposited in the mental
6 health services fund that such agency determines will or may have to be
7 rebated to the federal government pursuant to the provisions of the
8 internal revenue code of 1986, as amended, in order to enable such agen-
9 cy to maintain the exemption from federal income taxation on the inter-
10 est paid to the holders of such agency’s mental services facilities
11 improvement revenue bonds. On or before June 30, 2000, such agency shall
12 certify to the state comptroller, its determination of the amounts
13 received in the mental health services fund as a result of the invest-
14 ment of monies deposited therein that will or may have to be rebated to
15 the federal government pursuant to the provisions of the internal reven-
16 ue code of 1986, as amended.
17 § 13. Pursuant to article 5-A of the state finance law, the total
18 amount of certificates of participation to be issued in the state fiscal
19 year beginning April 1, 1999, to finance and, where appropriate to refi-
20 nance, personal property purposes including the cost of issuance and
21 related costs, shall not exceed $138,375,000 for installment purchases
22 and/or lease purchases of all state departments and agencies, units of
23 the state university of New York and city university of New York, the
24 unified court system, and the olympic regional development authority.
25 § 14. Pursuant to article 5-A of the state finance law, the total
26 amount of certificates of participation to be issued in the state fiscal
27 year beginning April 1, 1999, to finance and, where appropriate to refi-
28 nance, personal property purposes including the cost of issuance and
60 13001-04-9
1 related costs, shall not exceed $228,000,000 for installment purchases
2 and/or lease purchases of the office of children and family services,
3 the department of labor, and the office of temporary and disability
4 assistance.
5 § 15. Subdivision 1 of section 16 of part D of chapter 389 of the laws
6 of 1997, relating to the financing of the correctional facilities
7 improvement fund and the youth facility improvement fund, as amended by
8 section 22 of part B of chapter 57 of the laws of 1998, is amended to
9 read as follows:
10 1. Notwithstanding the provisions of section 18 of chapter 174 of the
11 laws of 1968, the New York state urban development corporation is hereby
12 authorized to issue bonds, notes and other obligations in an aggregate
13 principal amount not to exceed [four billion sixty-five million six
14 hundred ninety-three thousand dollars ($4,065,693,000)] four billion
15 four hundred seventy-nine million six hundred ninety-three thousand
16 dollars ($4,479,693,000), and shall include all bonds, notes and other
17 obligations issued pursuant to chapter 56 of the laws of 1983, as
18 amended or supplemented. The proceeds of such bonds, notes or other
19 obligations shall be paid to the state, for deposit in the correctional
20 facilities capital improvement fund to pay for all or any portion of the
21 amount or amounts paid by the state from appropriations or reappropri-
22 ations made to the department of correctional services from the correc-
23 tional facilities capital improvement fund for capital projects. The
24 aggregate amount of bonds, notes or other obligations authorized to be
25 issued pursuant to this section shall exclude bonds, notes or other
26 obligations issued to refund or otherwise repay bonds, notes or other
27 obligations theretofore issued, the proceeds of which were paid to the
28 state for all or a portion of the amounts expended by the state from
61 13001-04-9
1 appropriations or reappropriations made to the department of correction-
2 al services; provided, however, that upon any such refunding or repay-
3 ment the total aggregate principal amount of outstanding bonds, notes or
4 other obligations may be greater than [four billion sixty-five million
5 six hundred ninety-three thousand dollars ($4,065,693,000)] four billion
6 four hundred seventy-nine million six hundred ninety-three thousand
7 dollars ($4,479,693,000), only if the present value of the aggregate
8 debt service of the refunding or repayment bonds, notes or other obli-
9 gations to be issued shall not exceed the present value of the aggregate
10 debt service of the bonds, notes or other obligations so to be refunded
11 or repaid. For the purposes hereof, the present value of the aggregate
12 debt service of the refunding or repayment bonds, notes or other obli-
13 gations and of the aggregate debt service of the bonds, notes or other
14 obligations so refunded or repaid, shall be calculated by utilizing the
15 effective interest rate of the refunding or repayment bonds, notes or
16 other obligations, which shall be that rate arrived at by doubling the
17 semi-annual interest rate (compounded semi-annually) necessary to
18 discount the debt service payments on the refunding or repayment bonds,
19 notes or other obligations from the payment dates thereof to the date of
20 issue of the refunding or repayment bonds, notes or other obligations
21 and to the price bid including estimated accrued interest or proceeds
22 received by the corporation including estimated accrued interest from
23 the sale thereof.
24 § 16. Section 17 of part D of chapter 389 of the laws of 1997, relat-
25 ing to the financing of the correctional facilities improvement fund and
26 the youth facility improvement fund, as amended by section 23 of part B
27 of chapter 57 of the laws of 1998, is amended to read as follows:
62 13001-04-9
1 § 17. Youth facilities bond program. 1. Notwithstanding the
2 provisions of section 18 of chapter 174 of the laws of 1968, the New
3 York state urban development corporation is hereby authorized to issue
4 bonds, notes and other obligations in an aggregate principal amount not
5 to exceed [two hundred twenty-six million eight hundred fifteen thousand
6 dollars ($226,815,000)] two hundred forty-two million eight hundred
7 fifteen thousand dollars ($242,815,000), which authorization increases
8 the aggregate principal amount of bonds, notes and other obligations
9 authorized by section 40 of chapter 309 of the laws of 1996, and shall
10 include all bonds, notes and other obligations issued pursuant to chap-
11 ter 211 of the laws of 1990, as amended or supplemented. The proceeds of
12 such bonds, notes or other obligations shall be paid to the state, for
13 deposit in the youth facilities improvement fund, to pay for all or any
14 portion of the amount or amounts paid by the state from appropriations
15 or reappropriations made to the office of children and family services
16 from the youth facilities improvement fund for capital projects. The
17 aggregate amount of bonds, notes and other obligations authorized to be
18 issued pursuant to this section shall exclude bonds, notes or other
19 obligations issued to refund or otherwise repay bonds, notes or other
20 obligations theretofore issued, the proceeds of which were paid to the
21 state for all or a portion of the amounts expended by the state from
22 appropriations or reappropriations made to the office of children and
23 family services; provided, however, that upon any such refunding or
24 repayment the total aggregate principal amount of outstanding bonds,
25 notes or other obligations may be greater than [two hundred twenty-six
26 million eight hundred fifteen thousand dollars ($226,815,000)] two
27 hundred forty-two million eight hundred fifteen thousand dollars
28 ($242,815,000), only if the present value of the aggregate debt service
63 13001-04-9
1 of the refunding or repayment bonds, notes or other obligations to be
2 issued shall not exceed the present value of the aggregate debt service
3 of the bonds, notes or other obligations so to be refunded or repaid.
4 For the purposes hereof, the present value of the aggregate debt service
5 of the refunding or repayment bonds, notes or other obligations and of
6 the aggregate debt service of the bonds, notes or other obligations so
7 refunded or repaid, shall be calculated by utilizing the effective
8 interest rate of the refunding or repayment bonds, notes or other obli-
9 gations, which shall be that rate arrived at by doubling the semi-annual
10 interest rate (compounded semi-annually) necessary to discount the debt
11 service payments on the refunding or repayment bonds, notes or other
12 obligations from the payment dates thereof to the date of issue of the
13 refunding or repayment bonds, notes or other obligations and to the
14 price bid including estimated accrued interest or proceeds received by
15 the corporation including estimated accrued interest from the sale ther-
16 eof.
17 2. For purposes of this section, the following provisions shall apply
18 to powers in connection with financing and refinancing of the design,
19 acquisition, construction, reconstruction, rehabilitation and improve-
20 ment of facilities for the office of children and family services by the
21 New York state urban development corporation.
22 (a) The New York state office of general services shall be responsible
23 for the undertaking of studies, planning, site acquisition, design,
24 construction, reconstruction, renovation and development of youth facil-
25 ities, including the making of any purchases therefor, on behalf of the
26 New York state office of children and family services.
27 (b) Notwithstanding the provisions of any general or special law to
28 the contrary, and subject to the making of annual appropriations there-
64 13001-04-9
1 for by the legislature, in order to assist the New York state urban
2 development corporation in the financing and refinancing of the design,
3 acquisition, construction, reconstruction, rehabilitation and improve-
4 ment of facilities for the office of children and family services, the
5 director of the budget is authorized in any state fiscal year to enter
6 into one or more service contracts, none of which shall exceed thirty
7 years in duration, with the New York state urban development corpo-
8 ration, upon such terms as the director of the budget and the New York
9 state urban development corporation agree;
10 (c) Any service contract entered into pursuant to paragraph (a) of
11 this subdivision or any payments made or to be made thereunder may be
12 assigned and pledged by the New York state urban development corporation
13 as security for its bonds and notes;
14 (d) Any such service contract shall provide that the obligation of the
15 director of the budget or of the state to fund or to pay the amounts
16 therein provided for shall not constitute a debt of the state within the
17 meaning of any constitutional or statutory provision in the event the
18 New York state urban development corporation assigns or pledges service
19 contract payments as security for its bonds or notes and shall be deemed
20 executory only to the extent moneys are available and that no liability
21 shall be incurred by the state beyond the moneys available for the
22 purpose, and that such obligation is subject to annual appropriation by
23 the legislature;
24 (e) Any service contract or contracts for projects entered into pursu-
25 ant to this subdivision shall provide for state commitments to provide
26 annually to the New York state urban development corporation a sum or
27 sums, upon such terms and conditions as shall be deemed appropriate by
28 the director of the budget, to fund, or to fund the debt service
65 13001-04-9
1 requirements of, any bonds or notes, including bonds issued to fund any
2 required debt service reserve requirement for bonds, of the New York
3 state urban development corporation issued to pay to the state all or a
4 portion of the amounts expended by the state from appropriations or
5 reappropriations made to the office of children and family services for
6 capital projects.
7 3. (a) The provisions of section 17 of the public officers law shall
8 apply to directors, officers, employees and agents of the New York state
9 urban development corporation in connection with any and all claims,
10 demands, suits, actions or proceedings which may be made or brought
11 against any of them arising out of any determinations made or actions
12 taken or omitted to be taken in compliance with any obligations under or
13 pursuant to the terms of this section. The provisions of this subdivi-
14 sion shall be in addition to and shall not supplant any indemnification
15 or other benefits heretofore or hereafter conferred upon directors,
16 officers and employees of the corporation by subdivision 3-a of section
17 4 of chapter 174 of the laws of 1968, as amended by action of such
18 corporation, or otherwise.
19 (b) The state shall and hereby agrees to and does indemnify and save
20 harmless the New York state urban development corporation from and
21 against any and all liability, loss, damage, interest, judgments and
22 liens, and any and all costs and expenses (including, but not limited
23 to, counsel fees and disbursements) arising out of or incurred in
24 connection with any and all claims, demands, suits, actions or
25 proceedings which may be made or brought against such corporation (1)
26 arising out of any determinations made or actions taken or omitted to be
27 taken or compliance with any obligations under or pursuant to the terms
28 of this act, or (2) for or in relation to any injuries, including death
66 13001-04-9
1 at any time resulting therefrom, sustained by a person or persons, or on
2 account of damage to or loss of property, through theft or otherwise, to
3 the extent the same arises out of or in consequence of the design,
4 acquisition, construction, reconstruction, rehabilitation and improve-
5 ment of facilities for the office of children and family services,
6 including the furnishing and equipping thereof, but in each such case
7 only to the extent that such corporation is not otherwise compensated
8 therefor by insurance.
9 § 17. 1. Notwithstanding any other law, rule, or regulation to the
10 contrary, the state comptroller shall at the commencement of each month
11 certify to the director of the budget, the commissioner of environmental
12 conservation, the chair of the senate finance committee, and the chair
13 of the assembly ways and means committee the amounts disbursed from all
14 appropriations for hazardous waste site remediation disbursements for
15 the month preceding such certification.
16 2. Notwithstanding any law to the contrary, prior to the issuance by
17 the comptroller of bonds authorized pursuant to subdivision a of section
18 4 of the environmental quality bond act of nineteen hundred eighty-six,
19 as enacted by chapter 511 of the laws of 1986, disbursements from all
20 appropriations for that purpose shall first be reimbursed from moneys
21 credited to the hazardous waste remedial fund, site investigation and
22 construction account, to the extent moneys are available in such
23 account. For purposes of determining moneys available in such account,
24 the commissioner of environmental conservation shall certify to the
25 comptroller the amounts required for administration of the hazardous
26 waste remedial program.
27 3. The comptroller is hereby authorized and directed to transfer any
28 balance above the amounts certified by the commissioner of environmental
67 13001-04-9
1 conservation to reimburse disbursements pursuant to all appropriations
2 from such site investigation and construction account, provided, howev-
3 er, that if such transfers are determined by the comptroller to be
4 insufficient to assure that interest paid to holders of state obli-
5 gations issued for hazardous waste purposes pursuant to the environ-
6 mental quality bond act of nineteen hundred eighty-six, as enacted by
7 chapter 511 of the laws of 1986, is exempt from federal income taxation,
8 the comptroller is hereby authorized and directed to transfer from such
9 site investigation and construction account to the general fund, the
10 amount necessary to redeem bonds in an amount necessary to assure the
11 continuation of such tax exempt status. Prior to the making of any such
12 transfers, the comptroller shall notify the director of the budget of
13 the amount of such transfers.
14 § 18. Paragraph (a) of subdivision 2 of section 47-e of the private
15 housing finance law, as amended by section 25 of part B of chapter 57 of
16 the laws of 1998, is amended to read as follows:
17 (a) In order to enhance and encourage the promotion of housing
18 programs and thereby achieve the stated purposes and objectives of such
19 housing programs, the agency shall have the power and is hereby author-
20 ized from time to time to issue negotiable housing program bonds and
21 notes in such principal amount as shall be necessary to provide suffi-
22 cient funds for the repayment of amounts disbursed pursuant to a chapter
23 of the laws of nineteen hundred [ninety-eight] ninety-nine making capi-
24 tal appropriations or reappropriations for the purposes of the housing
25 program, provided, however, that the agency may issue such bonds and
26 notes in an aggregate principal amount not exceeding one billion nine-
27 ty-five million dollars, plus a principal amount of bonds issued to fund
28 the debt service reserve fund in accordance with the debt service
68 13001-04-9
1 reserve fund requirement established by the agency and to fund any other
2 reserves that the agency reasonably deems necessary for the security or
3 marketability of such bonds and to provide for the payment of fees and
4 other charges and expenses, including underwriters' discount, trustee
5 and rating agency fees, bond insurance, credit enhancement and liquidity
6 enhancement related to the issuance of such bonds and notes. No reserve
7 fund securing the housing program bonds shall be entitled or eligible to
8 receive state funds apportioned or appropriated to maintain or restore
9 such reserve fund at or to a particular level, except to the extent of
10 any deficiency resulting directly or indirectly from a failure of the
11 state to appropriate or pay the agreed amount under any of the contracts
12 provided for in subdivision four of this section.
13 § 19. Paragraph (a) of subdivision 5 of section 47-e of the private
14 housing finance law, as amended by section 26 of part B of chapter 57 of
15 the laws of 1998, is amended to read as follows:
16 (a) Upon the issuance of housing program bonds or notes, the agency
17 shall apply such amount of the proceeds thereof as shall be designated
18 and specified in the bond or note resolution or resolutions authorizing
19 the issuance of such bonds or notes to the specific funds and/or
20 accounts of one or more housing programs. The bond resolution or resol-
21 utions authorizing the issuance of such bonds or notes shall only allo-
22 cate net proceeds of bonds or notes to a particular fund or account of a
23 housing program if the legislature has authorized in a chapter of the
24 laws of nineteen hundred [ninety-eight] ninety-nine an advance to such
25 fund or account and the amount of such bond or note proceeds so allo-
26 cated to such fund or account shall not exceed the total amount so
27 authorized to be advanced. Such proceeds shall be disbursed to such a
28 fund or account in accordance with such allocation only for application
69 13001-04-9
1 to the repayment of advances previously or thereupon made and not previ-
2 ously repaid. Such proceeds may not be transferred from an entity
3 authorized to administer a housing program to the state or a fund of the
4 state except in repayment of such advances. Except in the case of
5 refunding bonds or notes authorized hereunder, any net proceeds not so
6 allocated or disbursed shall be utilized first to pay debt service on
7 the applicable bonds or notes in the current or the succeeding fiscal
8 year and second to the redemption of such bonds, provided that such
9 application may be adjusted to comply with applicable federal law as to
10 federal tax exemption. For purposes of this paragraph, earnings from the
11 investment of net proceeds shall be treated as net proceeds.
12 § 20. Section 21-e of chapter 432 of the laws of 1997, relating to
13 authorizing the authority to issue bonds or notes in one or more series
14 for the purpose of funding project costs or making grants, loans or
15 combinations thereof for community enhancement facilities projects, is
16 amended to read as follows:
17 § 21-e. Notwithstanding the provisions of any other law to the contra-
18 ry, the authority is hereby authorized to issue bonds or notes in one or
19 more series for the purpose of funding project costs or making grants,
20 loans or combinations thereof for community enhancement facilities
21 projects. The aggregate principal amount of bonds authorized to be
22 issued pursuant to this section shall not exceed [four hundred twenty-
23 five million] three hundred fifty million dollars total for all issuing
24 authorities, excluding bonds issued to fund one or more debt reserve
25 funds, to pay cost of issuance of such bonds, and bonds or notes issued
26 to refund or otherwise repay such bonds or notes previously issued. Such
27 bonds and notes of the authority shall not be a debt of the state, and
28 the state shall not be liable thereon, nor shall they be payable out of
70 13001-04-9
1 any funds other than those appropriated by the state to the authority
2 for debt service and related expenses pursuant to a service contract and
3 such bonds and notes shall contain on the face thereof a statement to
4 such effect. Except for purposes of complying with the internal revenue
5 code, any interest income earned on bond proceeds shall only be used to
6 pay debt service on such bonds.
7 § 21. Paragraph b of subdivision 4 of section 57 of the state finance
8 law, as amended by section 18 of part D of chapter 389 of the laws of
9 1997, is amended to read as follows:
10 b. Notwithstanding paragraph a of this subdivision, whenever in the
11 judgment of the comptroller the interests of the state will be served
12 thereby, such bonds may be sold at public or private sale in accordance
13 with the procedures set forth in paragraph a of this subdivision, with
14 interest rates that vary in accordance with a formula or procedure set
15 forth or referred to in the bonds and may provide the holders thereof
16 with such rights to require the state or other persons to purchase or
17 redeem such bonds or renewals thereof from the proceeds of the resale
18 thereof or otherwise from time to time prior to the final maturity of
19 such bonds as the comptroller may determine and the state may resell, at
20 any time prior to final maturity, any such bonds acquired as a result of
21 the exercise of such rights, provided, however, that as of the initial
22 date of each issuance of such bonds with interest rates that vary the
23 total principal amount of bonds then outstanding pursuant to this para-
24 graph and paragraph (b) of subdivision four of section sixty shall not
25 exceed [ten] twenty percent of the total principal amount of all bonds
26 then outstanding which carry the full faith and credit of the state.
27 Notwithstanding the foregoing, the holders of bonds sold pursuant to
28 this paragraph shall not be provided with the right to require the state
71 13001-04-9
1 to repurchase or redeem the bonds prior to the final maturity thereof
2 unless the state has entered into one or more letter of credit agree-
3 ments or other liquidity facility agreements entered into for the
4 express purposes of such sale and which shall require a financially
5 responsible party or parties to the agreement or agreements, other than
6 the state, to purchase or redeem all or any portion of such bonds
7 tendered by the holders thereof for repurchase or redemption prior to
8 the final maturity of such bonds. Such requirement to purchase or redeem
9 bonds shall continue until such time as the right of the holders of such
10 bonds to require repurchase or redemption of such bonds prior to the
11 final maturity thereof shall cease. A financially responsible party or
12 parties, for purposes of this paragraph, shall mean a person or persons
13 determined by the comptroller to have sufficient net worth and liquidity
14 to purchase and pay for on a timely basis all of the bonds which may be
15 tendered for repurchase or redemption by the holders thereof. [Notwith-
16 standing the foregoing, no new bonds shall be issued pursuant to this
17 paragraph after June thirtieth, two thousand, but the comptroller may
18 reissue pursuant to this paragraph variable rate bonds issued by the
19 state prior to such date and tendered to the state on or after such
20 date.]
21 § 22. Paragraph (b) of subdivision 4 of section 60 of the state
22 finance law, as amended by section 19 of part D of chapter 389 of the
23 laws of 1997, is amended to read as follows:
24 (b) Notwithstanding paragraph (a) of this subdivision, whenever in the
25 judgment of the comptroller the interests of the state will be served
26 thereby, such bonds may be sold at public or private sale in accordance
27 with the procedures set forth in paragraph (a) of this subdivision, with
28 interest rates that vary in accordance with a formula or procedure set
72 13001-04-9
1 forth or referred to in the bonds and may provide the holders thereof
2 with such rights to require the state or other persons to purchase or
3 redeem such bonds or renewals thereof from the proceeds of the resale
4 thereof or otherwise from time to time prior to the final maturity of
5 such bonds as the comptroller may determine and the state may resell, at
6 any time prior to final maturity, any such bonds acquired as a result of
7 the exercise of such rights, provided, however, that as of the initial
8 date of each issuance of such bonds with interest rates that vary the
9 total principal amount of bonds then outstanding pursuant to this para-
10 graph and paragraph b of subdivision four of section fifty-seven shall
11 not exceed [ten] twenty percent of the total principal of all bonds then
12 outstanding which carry the full faith and credit of the state. Notwith-
13 standing the foregoing, the holders of bonds sold pursuant to this para-
14 graph shall not be provided with the right to require the state to
15 repurchase or redeem the bonds prior to the final maturity thereof
16 unless the state has entered into one or more letter of credit agree-
17 ments or other liquidity facility agreements entered into for the
18 express purpose of such sale and which shall require a financially
19 responsible party or parties to the agreement or agreements, other than
20 the state, to purchase or redeem all or any portion of such bonds
21 tendered by the holders thereof for repurchase or redemption prior to
22 the final maturity of such bonds. Such requirement to purchase or redeem
23 bonds shall continue until such time as the right of the holders of such
24 bonds to require repurchase or redemption of such bonds prior to the
25 final maturity thereof shall cease. A financially responsible party or
26 parties, for purposes of this paragraph, shall mean a person or persons
27 determined by the comptroller to have sufficient net worth and liquidity
28 to purchase and pay for on a timely basis all of the bonds which may be
73 13001-04-9
1 tendered for repurchase or redemption by the holders thereof. [Notwith-
2 standing the foregoing, no new bonds shall be issued pursuant to this
3 paragraph after June thirtieth, two thousand, but the comptroller may
4 reissue pursuant to this paragraph variable rate bonds issued by the
5 state prior to such date and tendered to the state on or after such
6 date.]
7 § 23. Subdivision 1 of section 6279 of the education law, as amended
8 by chapter 82 of the laws of 1995, is amended to read as follows:
9 (1) The state shall, in addition to any other state financial assist-
10 ance, annually appropriate and pay to the fund an amount equal to the
11 aggregate of all rentals and such other payments due to the dormitory
12 authority from the fund pursuant to any lease, sublease or other agree-
13 ment entered into between the dormitory authority and the fund prior to
14 July first, nineteen hundred eighty-five or pursuant to any agreement
15 supplemental thereto, pursuant to which the fund and the dormitory
16 authority provide senior college facilities, for the city fiscal year
17 commencing July first succeeding the filing of the report required to be
18 submitted by the fund pursuant to subdivision seven of section sixty-two
19 hundred seventy-four of this article. Such amount shall be paid to the
20 fund as follows: (i) on or before the fifteenth day of July of the
21 fiscal year of the city, the amount required to be paid by the fund
22 under any such lease, sublease or other agreement on or before the first
23 day of August of such city fiscal year; (ii) on or before the fifteenth
24 day of November of the fiscal year of the city, the amount required to
25 be paid by the fund under any such lease, sublease or other agreement on
26 or before the tenth day of December of such city fiscal year; [and]
27 (iii) on or before the fifteenth day of May of the fiscal year of the
28 city, the amount required to be paid by the fund under any such lease,
74 13001-04-9
1 sublease or other agreement on or before the tenth day of June of such
2 city fiscal year; and (iv) on such day or days as shall be prescribed
3 under any such lease, sublease or other agreements, the amount required
4 to be paid by the fund under any such lease, sublease or other agree-
5 ments entered into on or after April first, nineteen hundred
6 ninety-nine.
7 The state shall, in addition to any other state financial assistance,
8 annually appropriate and pay to the fund an amount equal to one-half the
9 aggregate of all rentals and such other payments due to the dormitory
10 authority from the fund pursuant to any lease, sublease or other agree-
11 ment entered into between the dormitory authority and the fund prior to
12 July first, nineteen hundred eighty-five or pursuant to any agreement
13 supplemental thereto, pursuant to which the fund and the dormitory
14 authority provide community college facilities, for the city fiscal year
15 commencing July first succeeding the filing of the report required to be
16 submitted by the fund pursuant to subdivision seven of section sixty-two
17 hundred seventy-four of this article, which amount shall be payable as
18 follows: (a) fifty per centum of such amount shall be payable, (i) with
19 respect to any portion thereof required to be paid by the fund under any
20 such lease, sublease or other agreement on or before the first day of
21 August of such city fiscal year, on or before the fifteenth day of July,
22 and (ii) with respect to any portion thereof so required to be paid by
23 the fund on or before the tenth day of December of such city fiscal
24 year, on or before the fifteenth day of November; [and] (b) fifty per
25 centum of such amount shall be payable on or before the fifteenth day of
26 May of such city fiscal year; and (c) fifty per centum of such amount
27 shall be payable on such day or days as shall be prescribed under any
28 such lease, sublease or other agreements, the amount required to be paid
75 13001-04-9
1 by the fund under any such lease, sublease or other agreements entered
2 into on or after April first, nineteen hundred ninety-nine.
3 § 24. Subdivisions 4, 5 and 6 of section 97-bbb of the state finance
4 law, as added by chapter 413 of the laws of 1996, are amended to read as
5 follows:
6 4. On or before [the fifth day of each month, the comptroller shall
7 certify to] each April first, and at least quarterly thereafter, the
8 director of the budget shall certify to the comptroller, the chairperson
9 of the senate finance committee and the chairperson of the assembly ways
10 and means committee a monthly amount [which the comptroller and the
11 director of the budget project] projected to be necessary to meet the
12 total annual debt service requirements for the current fiscal year on
13 any bonds [and notes] issued as authorized by the Clean Water/Clean Air
14 Bond Act of 1996. Such amount shall be calculated by estimating the
15 total annual debt service for the current fiscal year less any amounts
16 already retained to meet such requirement divided by the number of
17 months remaining in such year. Such monthly amount shall be retained
18 within such fund for transfer to the general debt service fund for
19 reimbursement of debt service on such bonds [and notes].
20 5. The comptroller shall transfer, as needed, to the general debt
21 service fund such moneys as are necessary to reimburse such fund for any
22 debt service disbursements made on such bonds [or notes]. In the event
23 that moneys retained in the clean water/clean air fund are less than the
24 amount needed for such reimbursement, the comptroller shall offset such
25 shortfall from subsequent deposits in the clean water/clean air fund as
26 soon as the revenue is available.
27 6. No later than the last day of the month, the comptroller shall
28 transfer to the general fund any moneys received in such fund during the
76 13001-04-9
1 month that are in excess of the monthly amount certified by the [comp-
2 troller for such month] director of the budget. Notwithstanding any
3 other provision of law, the comptroller shall, on the last day of each
4 fiscal year pay to the general fund all moneys remaining in such fund
5 that are not needed for reimbursement of debt service for the current
6 fiscal year.
7 § 25. Section 97-rrr of the state finance law, as added by section 36
8 of part B of chapter 57 of the laws of 1998, is amended to read as
9 follows:
10 § 97-rrr. Debt reduction reserve fund. 1. There is hereby established
11 in the joint custody of the comptroller and the commissioner of taxation
12 and finance a special fund to be known as the debt reduction reserve
13 fund.
14 2. Such fund shall consist of all monies credited or transferred ther-
15 eto from the general fund or from any other fund or sources pursuant to
16 law.
17 3. The monies in such fund, following appropriation by the legislature
18 and allocation by the director of the budget, shall be available for the
19 following purposes:
20 (a) for the payment of principal, interest, and related expenses on
21 general obligation bonds, lease purchase payments, or special contractu-
22 al obligation payments, or for the purposes of retiring or defeasing
23 bonds previously issued, including any accrued interest thereon, for any
24 state-supported bonding program or programs[.], and;
25 (b) for the funding of capital projects, equipment acquisitions, or
26 similar expenses which have been authorized by law to be financed
27 through the issuance of bonds, notes, or other obligations.
28 § 26. Section 87 of the state finance law is REPEALED.
77 13001-04-9
1 § 27. Section 123-h of the state finance law is REPEALED.
2 § 28. Section 92-l of the state finance law, as added by chapter 61 of
3 the laws of 1983 is REPEALED.
4 § 29. Section 92-l of the state finance law, as added by chapter 744
5 of the laws of 1984 is REPEALED.
6 § 30. Section 97-m of the state finance law is REPEALED.
7 § 31. Section 97-ii of the state finance law is REPEALED.
8 § 32. Chapter 110 of the laws of 1983 relating to the city of Lacka-
9 wanna debt service assistance reserve fund is REPEALED.
10 § 33. Section 92-t of the state finance law is REPEALED.
11 § 34. Chapter 256 of the laws of 1984 relating to school district
12 state aid reserve fund is REPEALED.
13 § 35. Chapter 139 of the laws of 1985 relating to school district
14 state aid reserve fund is REPEALED.
15 § 36. Chapter 408 of the laws of 1988 relating to school district
16 state aid reserve fund is REPEALED.
17 § 37. Subdivision 3 of section 227-a of the executive law is REPEALED.
18 § 38. Section 2867 of the public health law is REPEALED.
19 § 39. Section 97-k of the state finance law is REPEALED.
20 § 40. Section 5 of chapter 211 of the laws of 1990 relating to bond
21 authorizations for the youth opportunity centers program is REPEALED.
22 § 41. The state finance law is amended by adding a new section 92-x
23 to read as follows:
24 § 92-x. Tobacco settlement fund. 1. There is hereby established in the
25 sole custody of the commissioner of taxation and finance a special fund,
26 to be known as the "tobacco settlement fund."
27 2. Such fund shall consist of moneys received by the state, as a
28 result of the settlement of litigation in the case of State of New York
78 13001-04-9
1 and Dennis C. Vacco v. Philip Morris, Incorporated, et al. (Supreme
2 Court, New York County, Index No. 400361/97), pursuant to the escrow
3 arrangement provided in the master settlement agreement entered into by,
4 inter alia, the Attorney General of the State of New York and the Tobac-
5 co Industry, on November 23, 1998.
6 3. Moneys of the fund shall be available as follows: (a) twenty-five
7 percent shall be, notwithstanding any law, rule or regulation to the
8 contrary and in accordance with determinations by the commissioner of
9 health as approved by the director of the budget, deposited into the
10 funds, accounts or pools established and maintained in accordance with
11 subdivision nine of section twenty-eight hundred seven-j of the public
12 health law or subdivision seven of section twenty-eight hundred seven-s
13 of the public health law and (b) seventy-five percent shall be trans-
14 ferred to the debt reduction reserve fund established by section nine-
15 ty-seven-rrr of this chapter.
16 § 42. This act shall take effect April 1, 1999, provided, however,
17 that sections one through five, seven through fourteen and seventeen of
18 this act shall be deemed in full force and effect through March 31, 2000
19 upon which date such sections shall expire and be deemed repealed.
20 TRANSPORTATION, ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CONSERVATION
21 PART I
22 § 1. Funds appropriated from the statewide energy improvement
23 account, special revenue fund - other, for services and expenses of the
24 power authority of the state of New York, shall be available for energy
25 efficiency projects. The use of these funds is not intended to limit
26 the right or obligation of the power authority of the state of New York
27 to comply with the provisions of any contract, including any existing
79 13001-04-9
1 contract with or for the benefit of the holders of any obligations of
2 the power authority.
3 § 2. The power authority of the state of New York shall transfer
4 $3,000,000 to New York state on or before March 31, 2000.
5 § 3. Notwithstanding section 1010-a of the public authorities law,
6 the comptroller is hereby authorized and directed to transfer to the
7 power authority of the state of New York $3,000,000, constituting monies
8 appropriated to the statewide energy improvement account for the power
9 authority of the state of New York pursuant to a chapter of the laws of
10 1999 enacting the transportation, economic development and environmental
11 conservation bill, and the power authority of the state of New York is
12 authorized to hold such monies for the purposes specified in a chapter
13 of the laws of 1999.
14 § 4. In accordance with section 4 of the state finance law, the comp-
15 troller is hereby authorized and directed to transfer, upon request of
16 the director of the budget, up to $3,000,000 from the federal operating
17 grants fund (290) to the miscellaneous special revenue fund (339),
18 statewide energy improvement account, on or before March 31, 2000.
19 § 5. This act shall take effect April 1, 1999.
20 PART J
21 § 1. Paragraph a of subdivision 2 of section 92-s of the state finance
22 law, as added by chapter 610 of the laws of 1993, is amended to read as
23 follows:
24 a. The comptroller shall establish the following separate and distinct
25 accounts within the environmental protection fund:
26 (i) solid waste account;
27 (ii) parks, recreation and historic preservation account;
28 (iii) open space account; [and]
80 13001-04-9
1 (iv) environmental protection transfer account; and
2 (v) the Hudson River estuary trust account.
3 § 2. Paragraphs (b), (c) and (d) of subdivision 6 of section 92-s of
4 the state finance law, as amended by chapter 432 of the laws of 1997,
5 are amended to read as follows:
6 (b) Moneys from the solid waste account shall be available, pursuant
7 to appropriation and upon certificate of approval of availability by the
8 director of the budget, for any non-hazardous municipal landfill closure
9 project; municipal waste reduction or recycling project, as defined in
10 article fifty-four of the environmental conservation law; for the
11 purposes of section two hundred sixty-one and section two hundred
12 sixty-four of the economic development law; any project for the develop-
13 ment, updating or revision of local solid waste management plans pursu-
14 ant to sections 27-0107 and 27-0109 of the environmental conservation
15 law; and for the development of the pesticide sales and use data base in
16 conjunction with Cornell University pursuant to title twelve of article
17 thirty-three of the environmental conservation law, and for projects to
18 assess and recover any natural resource damages to the Hudson River.
19 (c) Moneys from the parks, recreation and historic preservation
20 account shall be available, pursuant to appropriation, for any municipal
21 park project, historic preservation project, urban cultural park
22 project, waterfront revitalization program, coastal rehabilitation
23 project, state parks and lands infrastructure and stewardship project,
24 and Hudson River Park projects consistent with provisions of chapter
25 five hundred ninety-two of the laws of nineteen hundred ninety-eight.
26 (d) Moneys from the open space account shall be available, pursuant to
27 appropriation, for any open space land conservation project, bio-diver-
28 sity stewardship and research pursuant to chapter five hundred fifty-
81 13001-04-9
1 four of the laws of nineteen hundred ninety-three, for the purposes of
2 agricultural and farmland protection activities as authorized by article
3 twenty-five-AAA of the agriculture and markets law, non-point source
4 abatement and control projects pursuant to section 17-1409 of the envi-
5 ronmental conservation law and section eleven-b of the soil and water
6 conservation districts law, for soil and water conservation district
7 activities as authorized for reimbursement in section eleven-a of the
8 soil and water conservation districts law, for Long Island Central Pine
9 Barrens area planning or Long Island south shore estuary reserve plan-
10 ning pursuant to title thirteen of article fifty-four of the environ-
11 mental conservation law[. Moneys from the open space account shall also
12 be available until March thirty-first, nineteen hundred ninety-nine,
13 pursuant to appropriation], for the state reimbursement for forest tax
14 exemptions pursuant to section four hundred eighty-b of the real proper-
15 ty tax law, and for operation and management of the Albany Pine Bush
16 preserve commission pursuant to subdivision two of section 54-0303 of
17 the environmental conservation law.
18 § 3. Subdivision 6 of section 92-s of the state finance law is amended
19 by adding a new paragraph (f) to read as follows:
20 (f) Moneys from the Hudson River estuary trust account shall be avail-
21 able, pursuant to appropriation, for projects to implement the Hudson
22 River estuary management plan prepared pursuant to section 11-0306 of
23 the environmental conservation law.
24 § 4. Paragraph b of subdivision 2 of section 54-0303 of the environ-
25 mental conservation law, as amended by chapter 309 of the laws of 1996,
26 is amended to read as follows:
27 b. [Until March thirty-first, nineteen hundred ninety-nine, the] The
28 commissioner, pursuant to appropriation therefor and in order to further
82 13001-04-9
1 the purposes of article forty-six of this chapter, may make available to
2 the Albany Pine Bush preserve commission, established by article forty-
3 six of this chapter, moneys for the operation of such commission,
4 including the management of lands under the jurisdiction of such commis-
5 sion in accordance with a management plan prepared as specified in
6 section 46-0111 of this chapter.
7 § 5. Article 54 of the environmental conservation law is amended by
8 adding a new title 14 to read as follows:
9 TITLE 14
10 STATE PARKS AND LANDS INFRASTRUCTURE AND STEWARDSHIP
11 Section 54-1401. Definitions.
12 54-1402. Approval and execution of projects.
13 § 54-1401. Definitions.
14 As used in this title the following terms shall mean and include:
15 1. "Stewardship" shall mean the care of the lands, facilities and
16 natural and cultural resources entrusted to the department and to the
17 office of parks, recreation and historic preservation on behalf of the
18 public, and provision of public access thereto.
19 2. "State parks and lands infrastructure" shall mean state park
20 resources, recreational facilities and historic sites and any other
21 property, real or personal, under the jurisdiction of the department and
22 the office of parks, recreation and historic preservation, together with
23 machinery, equipment, furnishings and fixtures relating thereto or used
24 in connection therewith.
25 3. "State parks and lands infrastructure and stewardship project"
26 shall mean all costs incurred or to be incurred by or on behalf of the
27 department or the office of parks, recreation and historic preservation
83 13001-04-9
1 for the purpose of preserving, improving or rehabilitating state park
2 and lands infrastructure. Such activities may include, but are not
3 limited to: natural resource protection activities such as protecting
4 and managing biological, land, geological and other natural resources,
5 survey and inventory, scientific research, planning and analysis, and
6 development of unit management plans; projects to improve public access
7 by developing, restoring, rehabilitating and maintaining physical facil-
8 ities, including but not limited to buildings, roads, bridges and waste
9 disposal systems; projects to develop, maintain, or improve marine
10 resource facilities, trails, campgrounds, day use areas, fish hatcher-
11 ies, visitor centers, interpretive and education facilities and security
12 systems; and historic preservation projects to improve, restore or reha-
13 bilitate property listed on the state or national registers of historic
14 places to protect the historic, cultural or architectural significance
15 thereof.
16 § 54-1402. Approval and execution of projects.
17 No monies shall be expended for any project as defined in section
18 54-1401 of this title except pursuant to an appropriation thereof.
19 § 6. Subdivision 7 of section 92-s of the state finance law is
20 REPEALED.
21 § 7. Subdivision 2 of section 54-0509 of the environmental conserva-
22 tion law, as amended by section 18 of part A of chapter 58 of the laws
23 of 1998, is amended to read as follows:
24 2. An agreement by the commissioner to make state assistance payments
25 toward the cost of the project by periodically reimbursing the munici-
26 pality for costs incurred during the progress of the project to a maxi-
27 mum of either fifty percent of the cost, or [seventy-five] ninety
28 percent of the cost for a municipality with a population smaller than
84 13001-04-9
1 thirty-five hundred as determined by the current federal decennial
2 census, or two million dollars, whichever is less. The commissioner may
3 consider landfill gas management projects separately from landfill
4 closure projects. Such costs are subject to final computation and deter-
5 mination by the commissioner upon completion of the project, and shall
6 not exceed the maximum cost set forth in the contract. For purposes of
7 this subdivision, the approved project cost shall be reduced by the
8 amount of any specific state assistance payments for landfill closure
9 purposes received by the municipality from any source; provided, howev-
10 er, that non-specific state assistance payments, such as amounts paid
11 pursuant to section fifty-four of the state finance law, shall not be
12 included in such cost reduction.
13 § 8. This act shall take effect April 1, 1999.
14 PART K
15 § 1. The real property tax law is amended by adding a new section
16 480-b to read as follows:
17 § 480-b. State reimbursement for forest tax exemptions. 1. A county,
18 town or school district containing eligible private forest lands shall
19 be eligible for state reimbursement as provided by this section. For
20 purposes of this section, "eligible private forest lands" means private
21 forest tracts receiving an exemption pursuant to section four hundred
22 eighty or four hundred eighty-a of this title, excluding any tract which
23 is or had been a certified tract on which penalties are imposed pursuant
24 to section four hundred eighty or four hundred eighty-a of this title.
25 2. The county treasurer of any county containing eligible private
26 forest lands shall submit to the state board a list of any changes to
27 the assessed value, taxable status or acreage of all such lands made
28 subsequent to the filing of those assessment rolls upon which county
85 13001-04-9
1 taxes are extended, and the county tax rate and town tax rate extended
2 against any parcel receiving one of those exemptions.
3 3. The business manager of any school district containing eligible
4 private forest lands shall submit to the state board a list of any
5 changes to the assessed value, taxable status or acreage of all such
6 lands made subsequent to the filing of those assessment rolls upon which
7 school taxes are extended, and the school tax rate extended against any
8 parcel receiving one of those exemptions.
9 4. The state board shall compute the amount of state assistance paya-
10 ble to or for the benefit of a county, town or school district on
11 account of eligible private forest lands.
12 5. (a) The amount of state assistance paid to a county, town or school
13 district pursuant to this section shall equal the taxes which would have
14 been levied for county, town or school district purposes upon the
15 assessed valuation partially exempt from taxation on the latest final
16 assessment roll of the eligible private forest lands, minus one percent
17 of the total real property tax levy for county, town or school district
18 purposes for the current year, provided that the amount payable to any
19 county, town or school district pursuant to this section shall not
20 exceed the maximum payment prescribed by paragraph (b) of this subdivi-
21 sion.
22 (b) The maximum payment to a county, town or school district pursuant
23 to this section shall be determined as follows:
24 (i) Multiply the total acreage of the eligible private forest lands in
25 the county, town or school district on the latest final assessment roll
26 by the average forest land value per acre, as determined by the state
27 board based on sales of forest parcels of at least fifty acres through-
28 out the region;
86 13001-04-9
1 (ii) Multiply the result by the full value tax rate for county, town
2 or school district purposes for the current year; and
3 (iii) Subtract from the product one percent of the total real property
4 tax levy for county, town or school district purposes for the current
5 year.
6 6. The state board shall certify to the state comptroller the amount
7 of state assistance payable pursuant to this section, and shall mail a
8 copy of such certification to the county treasurer of each county and
9 business manager of each school district containing eligible private
10 forest tracts. Such state assistance shall be paid on audit and warrant
11 of the comptroller out of monies appropriated by the legislature for
12 state assistance to counties, towns and school districts containing
13 eligible private forest tracts.
14 7. If it should appear to the state board that an error was made in
15 the calculation of state assistance pursuant to subdivision five of this
16 section and as a result of that error an incorrect amount of state
17 assistance was paid to a county, town or school district, the state
18 board shall determine the difference between the assistance paid and the
19 assistance that should have been paid and shall adjust the next state
20 assistance certified for such county, town or school district by that
21 difference.
22 § 2. This act shall take effect April 1, 1999, provided that state
23 assistance payments pursuant to section 480-b of the real property tax
24 law, as added by section one of this act, shall be limited to the
25 amounts appropriated by the legislature for this purpose, and shall be
26 submitted based upon the assessment rolls with final completion dates on
27 or after July 1, 1999.
28 PART L
87 13001-04-9
1 § 1. Subdivisions a, b and c of section 33-0705 of the environmental
2 conservation law, as separately amended by chapters 194 and 309 of the
3 laws of 1996, are amended to read as follows:
4 a. [On or before July 1, 1999, one] One hundred dollars for each
5 pesticide proposed to be registered, provided that the applicant has
6 submitted to the department proof in the form of a federal income tax
7 return for the previous year showing gross annual sales, for federal
8 income tax purposes, of three million five hundred thousand dollars or
9 less;
10 b. [On or before July 1, 1999 for] For all others, three hundred
11 dollars for each pesticide proposed to be registered[;
12 c. After July 1, 1999, fifty dollars for each pesticide proposed to be
13 registered].
14 § 2. Section 9 of chapter 67 of the laws of 1992, amending the envi-
15 ronmental conservation law relating to pesticide product registration
16 timetables and fees, as separately amended by chapters 194 and 309 of
17 the laws of 1996, is amended to read as follows:
18 § 9. This act shall take effect April 1, 1992 provided, however, that
19 section 3 of this act shall take effect July 1, 1993 [and shall expire
20 and be deemed repealed on July 1, 1999].
21 § 3. This act shall take effect April 1, 1999.
22 PART M
23 § 1. Subdivisions 1 and 3 of section 72-0303 of the environmental
24 conservation law, as amended by chapter 432 of the laws of 1997, are
25 amended to read as follows:
26 1. a. Commencing January first, nineteen hundred ninety-four [and
27 every year thereafter] through December thirty-first, nineteen hundred
28 ninety-eight, all sources of regulated air contaminants identified
88 13001-04-9
1 pursuant to subdivision one of section 19-0311 of this chapter shall
2 submit to the department a fee not to exceed twenty-five dollars per ton
3 up to six thousand tons annually of each regulated air contaminant.
4 Such fee shall be sufficient to support an appropriation approved by the
5 legislature for the direct and indirect costs associated with the oper-
6 ating permit program established in section 19-0311 of this chapter.
7 Such fee shall be established by the department and shall be calculated
8 by dividing the amount of the current year appropriation by the total
9 tons of emissions of regulated air contaminants from sources subject to
10 the operating permit program pursuant to section 19-0311 of this chapter
11 up to six thousand tons annually of each regulated air contaminant from
12 each source; provided that, in making such calculation, the department
13 shall consider any deficit or surplus in the operating permit program
14 account of the clean air fund established pursuant to section ninety-
15 seven-oo of the state finance law; any loan repayment from the mobile
16 source account of the [clear] clean air fund established pursuant to
17 section ninety-seven-oo of the state finance law; and the rate of
18 collection by the department of the bills issued for the fee for the
19 prior year.
20 Notwithstanding the provisions of the state administrative procedure
21 act, such calculation and fee shall be established as a rule by publica-
22 tion in the Environmental Notice Bulletin no later than thirty days
23 after the budget bills making appropriations for the support of govern-
24 ment are enacted or July first, whichever is later, of the year such fee
25 will be effective. In no event shall the fee established herein be any
26 greater than the maximum fee identified pursuant to this section.
27 b. Commencing January first, nineteen hundred ninety-nine, all sources
28 of regulated air contaminants identified pursuant to subdivision one of
89 13001-04-9
1 section 19-0311 of this chapter shall submit to the department a fee of
2 forty-eight dollars per ton up to six thousand tons annually of each
3 regulated air contaminant.
4 3. Effective January first, nineteen hundred ninety-seven through
5 December thirty-first, nineteen hundred ninety-eight, and notwithstand-
6 ing the requirements of the state administrative procedure act, the cap
7 of twenty-five dollars per ton shall increase by the percentage, if any,
8 by which the consumer price index exceeds the consumer price index for
9 the calendar year nineteen hundred eighty-nine.
10 a. The consumer price index for any calendar year is the average of
11 the consumer price index for all urban consumers published by the United
12 States department of labor, as of the close of the twelve-month period
13 ending on August thirty-first of each calendar year.
14 b. The revision of the consumer price index for the calendar year
15 nineteen hundred eighty-nine shall be used in the event the department
16 of labor revises its method of determining the consumer price index.
17 § 2. Subdivisions 6 and 7 of section 19-0319 of the environmental
18 conservation law are REPEALED.
19 § 3. This act shall take effect April 1, 1999.
20 PART N
21 § 1. Subdivision 2 of section 17-1009 of the environmental conserva-
22 tion law, as amended by chapter 83 of the laws of 1995, is amended to
23 read as follows:
24 2. All owners shall register the facility with the department. The
25 department is authorized to assess a fee according to a schedule based
26 on the size and type of facility, not to exceed [two hundred fifty] five
27 hundred dollars per facility. Such fee shall be paid at the time of
28 registration or registration renewal. Registration shall be renewed
90 13001-04-9
1 every five years or whenever title to a facility is transferred, which-
2 ever occurs first. All fees collected pursuant to this subdivision shall
3 be deposited in the New York environmental and spill compensation fund
4 established pursuant to section one hundred seventy-nine of the naviga-
5 tion law.
6 The owner must submit with each application for registration or regis-
7 tration renewal, a five-year fee as follows:
8 Combined Storage Capacity at Facility 5-Year Fee
9 Greater than 1,100 to 2,000 gallons $100 per facility
10 Greater than 2,000 gallons to $300 per facility
11 Less than 5,000 gallons
12 5,000 gallons to less than 400,000 gallons $500 per facility
13 § 2. Paragraph (a) of subdivision 4 of section 174 of the navigation
14 law, as amended by section 20 of Part A of chapter 58 of the laws of
15 1998, is amended to read as follows:
16 (a) The license fee shall be one cent per barrel transferred until the
17 balance in such account established by paragraph (a) of subdivision two
18 of section one hundred seventy-nine of this article equals or exceeds
19 twenty-five million dollars, provided, however, that the fee on any
20 barrel, including any products derived therefrom, subject to multiple
21 transfer, shall be imposed only once at the point of first transfer. In
22 each fiscal year following any year in which the balance of such account
23 equals or exceeds twenty-five million dollars, no license fee shall be
24 imposed unless (a) the current balance in such account is less than
25 twenty million dollars or (b) pending claims against such account exceed
26 fifty percent of the existing balance of such account. The provisions of
91 13001-04-9
1 the foregoing notwithstanding, should claims paid from such account not
2 exceed five million dollars within three years after the license fee is
3 first imposed, the license fee shall be one cent per barrel transferred
4 until the balance in such account equals or exceeds eighteen million
5 dollars, and thereafter shall not be imposed unless: (1) the current
6 balance in such account is less than fifteen million dollars or (2)
7 pending claims against such account exceed fifty percent of the existing
8 balance of such account. In the event of either such occurrence and upon
9 certification thereof by the state comptroller, the administrator shall
10 within ten days of the date of such certification reimpose the license
11 fee, which shall take effect on the first day of the month following
12 such relevy. In the event of a major discharge or series of discharges
13 resulting in claims against such account exceeding the existing balance
14 of such account, the license fee shall be imposed at the rate of [four]
15 eight cents per barrel transferred until the balance in such account
16 equals pending claims against such account; provided, however, that the
17 rate may be set at less than [four] eight cents per barrel transferred
18 if the administrator determines that the revenue produced by such lower
19 rate shall be sufficient to pay outstanding claims against such account
20 within one year of such imposition of the license fee. Should such
21 account exceed eighteen million dollars or twenty-five million dollars,
22 as herein provided, as a result of interest, the administrator and the
23 commissioner of environmental conservation shall report to the legisla-
24 ture and the governor concerning the options for the use of such inter-
25 est. The fee established by this paragraph shall not be imposed upon any
26 barrel which is transferred to a land based facility but thereafter
27 exported from this state for use outside the state and is shipped to
92 13001-04-9
1 facilities outside the state regardless of whether the delivery or sale
2 of such petroleum occurs in this state.
3 § 3. Subdivision 3 of section 362 of chapter 83 of the laws of 1995,
4 amending the environmental conservation law and other laws relating to
5 the registration of petroleum bulk storage facilities, as amended by
6 chapter 432 of the laws of 1997, is amended to read as follows:
7 3. Sections fifteen through seventeen of this act shall take effect
8 immediately and shall be deemed to have been in full force and effect on
9 and after April 1, 1995[, and shall expire and be deemed repealed April
10 1, 2001];
11 § 4. This act shall take effect April 1, 1999.
12 PART O
13 § 1. Expenditures of moneys appropriated in a chapter of the laws of
14 1999 to the energy research and development authority from the special
15 revenue funds-other/state operations, miscellaneous special revenue
16 fund-339, energy research and planning account under the research,
17 development and demonstration and policy and planning programs for
18 services and expenses for the research, development and demonstration
19 and policy and planning programs shall be subject to the provisions
20 of this section. Notwithstanding the provisions of subdivision 4-a
21 of section 18-a of the public service law: all moneys committed
22 or expended shall be reimbursed by assessment against gas corporations
23 and electric corporations as defined in section 2 of the public service
24 law, and the total amount which may be charged to any gas corporation
25 and any electric corporation shall not exceed one cent per one thou-
26 sand cubic feet of gas sold and .010 cent per kilowatt-hour of elec-
27 tricity sold by such corporations in their intrastate utility operations
28 in calendar year 1997. Such amounts shall be excluded from the gener-
93 13001-04-9
1 al assessment provisions of subdivision 2 of section 18-a of the public
2 service law, but shall be billed and paid in the manner set forth in
3 such subdivision and upon receipt shall be paid to the state comp-
4 troller for deposit in the state treasury for credit to the miscella-
5 neous special revenue fund. The director of the budget shall not issue
6 a certificate of approval with respect to the commitment and expend-
7 iture of moneys hereby appropriated until the chair of the authority
8 shall have submitted, and the director of the budget shall have
9 approved, a comprehensive financial plan encompassing all moneys avail-
10 able to and all anticipated commitments and expenditures by the
11 authority from any source for the operations of the authority. Copies
12 of the approved comprehensive financial plan shall be immediately
13 submitted by the director of the budget to the chairs and secretaries of
14 the legislative fiscal committees.
15 § 2. Such state agencies receiving reimbursement under section 18-a
16 of the public service law for expenditures deemed expenses of the
17 department of public service other than the department of public
18 service and such public benefit corporation receiving reimbursement
19 under section 18-a of the public service law shall report on February
20 first of each year the following information to the director of the
21 division of the budget, chairs of the senate and assembly energy
22 committees, the senate finance committee and the assembly ways and means
23 committee: (1) a list of all chargeable activities engaged in during
24 the previous fiscal year; (2) a list of all regulatory proceedings in
25 which the agency or corporation participated related to the regulation
26 of utilities; (3) a list of all positions involved in these activities,
27 and, the percentage of chargeable time.
28 § 3. This act shall take effect April 1, 1999.
94 13001-04-9
1 PART P
2 § 1. The section heading of section 902 of the racing, pari-mutuel
3 wagering and breeding law, as amended by chapter 60 of the laws of 1993,
4 is amended to read as follows:
5 Equine drug testing [and expenses].
6 § 2. Subdivision 2 of section 902 of the racing, pari-mutuel wagering
7 and breeding law is REPEALED.
8 § 3. The racing, pari-mutuel wagering and breeding law is amended by
9 adding a new section 909 to read as follows:
10 § 909. Funding for the oversight of racing activities and industry
11 assistance. 1. All costs incurred by the state racing and wagering
12 board for regulation and enforcement of the provisions of this chapter
13 shall be paid from an account funded from a fee on the sums deposited in
14 any pari-mutuel pools developed as a result of exotic and super exotic
15 bets. The funding of this account shall be a fee determined by retain-
16 ing two per centum from the total exotic and super exotic betting pools.
17 "Exotic bets" and "super exotic bets" shall have the same meanings as
18 set forth in sections five hundred nineteen and three hundred one of
19 this chapter, respectively.
20 2. The payment of this fee shall be made to the commissioner of taxa-
21 tion and finance on the last business day of each month and shall cover
22 fees due for the period from the sixteenth day of the preceding month
23 through the fifteenth day of the current month, provided, however, that
24 such payments required to be made on March thirty-first shall include
25 all taxes due and accruing through the last full week of racing in March
26 of the current year or as otherwise determined by the commissioner, and
27 shall be accompanied by a report under oath, showing such information as
28 the commissioner may require. The payment shall be deposited with the
95 13001-04-9
1 state comptroller in the regulation of racing account. Notwithstanding
2 any provision of this section to the contrary, an amount not to exceed
3 twelve and one-half percent of the funds deposited in the regulation of
4 racing account shall be used for purposes that benefit the racing indus-
5 try in the State of New York as determined by the racing and wagering
6 board.
7 § 4. The state finance law is amended by adding a new section 97-sss
8 to read as follows:
9 § 97-sss. Regulation of racing account. 1. There is hereby estab-
10 lished in the joint custody of the state comptroller and the commission-
11 er of taxation and finance an account to be known as the regulation of
12 racing account.
13 2. Such account shall consist of all monies received pursuant to
14 section nine hundred nine of the racing, pari-mutuel wagering and breed-
15 ing law, and all other monies credited or transferred thereto from any
16 other fund or source pursuant to law.
17 3. Moneys of the account, following appropriation by the legislature,
18 shall be available to the racing and wagering board upon certificate of
19 approval of availability by the director of the budget for expenses as
20 specified in section nine hundred nine of the racing, pari-mutuel wager-
21 ing and breeding law.
22 § 5. Subdivision 1 of section 228 of the racing, pari-mutuel wagering
23 and breeding law, as amended by chapter 281 of the laws of 1994, is
24 amended to read as follows:
25 1. Every corporation or association authorized under this chapter to
26 conduct pari-mutuel betting at a race meeting on races run thereat,
27 except as provided in section two hundred twenty-nine of this chapter
28 with respect to nonprofit racing associations, shall distribute all sums
96 13001-04-9
1 deposited in any pari-mutuel pool to the holders of winning tickets
2 therein, providing such tickets be presented for payment before April
3 first of the year following the year of their purchase, less seventeen
4 per centum of the total deposits in pools resulting from regular
5 on-track bets and less nineteen per centum of the total deposits in
6 pools resulting from multiple on-track bets and less [twenty-five] twen-
7 ty-seven per centum of the total deposits in pools resulting from exotic
8 on-track bets and less [thirty-six] thirty-eight per centum of the total
9 pools resulting from super exotic on-track bets, plus the breaks. "Exot-
10 ic bets" and "multiple bets" shall have the meanings set forth in
11 section five hundred nineteen of this chapter and breaks are hereby
12 defined as the odd cents over any multiple of ten, or for exotic bets
13 over any multiple of fifty, or for super exotic bets, over any multiple
14 of one hundred, calculated on the basis of one dollar, otherwise payable
15 to a patron provided, however, that effective after October fifteenth,
16 nineteen hundred ninety-four breaks are hereby defined as the odd cents
17 over any multiple of five for payoffs greater than one dollar five cents
18 but less than five dollars, over any multiple of ten for payoffs greater
19 than five dollars but less than twenty-five dollars, over any multiple
20 of twenty-five for payoffs greater than twenty-five dollars but less
21 than two hundred fifty dollars, or over any multiple of fifty for
22 payoffs over two hundred fifty dollars. "Super exotic bets" shall have
23 the meaning set forth in section three hundred one of this chapter. Of
24 the amount so retained there shall be paid by such corporation or asso-
25 ciation to the state tax commission as a reasonable tax by the state for
26 the privilege of conducting pari-mutuel betting on the races run at the
27 race meeting held by such corporation or association, which tax is here-
28 by levied, the following percentages of the total pool, plus fifty-five
97 13001-04-9
1 per centum of the breaks; the applicable rates for regular and multiple
2 bets shall be one and one-half per centum; the applicable rates for
3 exotic bets shall be six and three-quarter per centum and the applicable
4 rate for super exotic bets shall be seven and three-quarter per centum.
5 Effective on and after September first, nineteen hundred ninety-four,
6 the applicable tax rate shall be one per centum of all wagers, provided
7 that, an amount equal to one-half the difference between the taxation
8 rate for on-track regular, multiple and exotic bets as of December thir-
9 ty-first, nineteen hundred ninety-three and the rates on such on-track
10 wagers as herein provided shall be used exclusively for purses.
11 Provided, however, that for any twelve-month period beginning on April
12 first in nineteen hundred ninety and any year thereafter, each of the
13 applicable rates set forth above shall be increased by one-quarter of
14 one per centum on all on-track bets of any such racing association or
15 corporation that did not expend an amount equal to at least one-half of
16 one per centum of its on-track bets during the immediately preceding
17 calendar year for enhancements consisting of capital improvements as
18 defined by section two hundred twenty-eight-a of this article, repairs
19 to its physical plant, structures, and equipment used in its racing or
20 wagering operations as certified by the state racing and wagering board
21 to the commissioner of taxation and finance no later than eighty days
22 after the close of such calendar year, and five special events at each
23 track in each calendar year, not otherwise conducted in the ordinary
24 course of business, the purpose of which shall be to encourage, attract
25 and promote track attendance and encourage new and continued patronage,
26 which events shall be approved by the racing and wagering board for
27 purposes of this subdivision. In the determination of the amounts
28 expended for such enhancements, the board may consider the immediately
98 13001-04-9
1 preceding twelve month calendar period or the average of the two imme-
2 diately preceding twelve month calendar periods. Provided further,
3 however, that of the portion of the increased amounts retained by such
4 association or corporation above those amounts retained in nineteen
5 hundred eighty-four, an amount of such increase shall be distributed to
6 purses in the same proportion as commissions and purses were distributed
7 during nineteen hundred eighty-four as certified by the board. Such
8 corporation or association in the second zone shall receive a credit
9 against the daily tax imposed by this subdivision in an amount equal to
10 one per centum of total daily pools resulting from the simulcast of such
11 corporation’s or association’s races to licensed facilities operated by
12 regional off-track betting corporations in accordance with section one
13 thousand eight of this chapter, provided however, that sixty per centum
14 of the amount of such credit shall be used exclusively to increase purs-
15 es for overnight races conducted by such corporation or association;
16 and, provided further, that in no event shall such total daily credit
17 exceed one per centum of the total daily pool of such association or
18 corporation. Provided, however, that on and after September first, nine-
19 teen hundred ninety-four such credit shall be four-tenths percent of
20 total daily pools resulting from such simulcasting and that in no event
21 shall such total daily credit equal four-tenths percent of the total
22 daily pool of such association or corporation. Such corporation or asso-
23 ciation shall pay to the New York state thoroughbred breeding and devel-
24 opment fund one-half of one per centum of the total daily on-track pari-
25 mutuel pools from regular, multiple and exotic bets, and three per
26 centum of super exotic bets. The corporation or association shall
27 receive credit as a reduction of the tax by the state for the privilege
28 of conducting pari-mutuel betting for the amounts, except amounts paid
99 13001-04-9
1 from super exotic betting pools, paid to the New York state thoroughbred
2 breeding and development fund after January first, nineteen hundred
3 seventy-eight.
4 Such corporation or association shall distribute to purses an amount
5 equal to fifty per centum of any compensation it receives from simul-
6 casting or from wagering conducted outside the United States.
7 § 6. Paragraph a of subdivision 1 of section 229 of the racing, pari-
8 mutuel wagering and breeding law, as amended by section 1 of part E of
9 chapter 56 of the laws of 1998, is amended to read as follows:
10 a. Every nonprofit racing association authorized under this chapter to
11 conduct pari-mutuel betting at a race meeting or races run thereat shall
12 distribute all sums deposited in any pari-mutuel pool to the holders of
13 winning tickets therein, provided such tickets be presented for payment
14 before April first of the year following the year of their purchase,
15 less seventeen per centum of the total deposits in pools resulting from
16 on-track regular and multiple bets and [twenty-five] twenty-seven per
17 centum of the total deposits in pools resulting from on-track exotic
18 bets and [thirty-six] thirty-eight per centum of the total deposits in
19 pools resulting from on-track super exotic bets, provided, however, that
20 during the period July twenty-first, nineteen hundred ninety-five
21 through June thirtieth, two thousand two, fifteen per centum of total
22 deposits in pools resulting from on-track regular bets and twenty per
23 centum of total deposits in pools resulting from on-track multiple bets
24 shall be retained by such nonprofit racing association plus the breaks.
25 "Exotic bets" and "multiple bets" shall have the meanings set forth in
26 section five hundred nineteen of this chapter. "Super exotic bets" shall
27 have the meaning set forth in section three hundred one of this chapter.
28 The breaks are hereby defined as the odd cents over any multiple of five
100 13001-04-9
1 for payoffs greater than one dollar five cents but less than five
2 dollars, over any multiple of ten for payoffs greater than five dollars
3 but less than twenty-five dollars, over any multiple of twenty-five for
4 payoffs greater than twenty-five dollars but less than two hundred fifty
5 dollars, or over any multiple of fifty for payoffs over two hundred
6 fifty dollars. Out of the amount so retained there shall be paid by such
7 nonprofit racing association to the commissioner of taxation and
8 finance, as a reasonable tax by the state for the privilege of conduct-
9 ing pari-mutuel betting on the races run at the race meetings held by
10 such nonprofit racing association, the following percentages of the
11 total pool for regular and multiple bets five per centum of regular bets
12 and four per centum of multiple bets plus twenty per centum of the
13 breaks; for exotic wagers seven and one-half per centum plus twenty per
14 centum of the breaks, and for super exotic bets seven and one-half per
15 centum plus fifty per centum of the breaks, provided, however, that in
16 the event the nonprofit racing association notifies the racing and
17 wagering board by July fifteenth, nineteen hundred ninety-four of its
18 intent to conduct a racing meet at Aqueduct racetrack between October
19 nineteenth, nineteen hundred ninety-four and April thirtieth, nineteen
20 hundred ninety-five, from August first, nineteen hundred ninety-four
21 through June tenth, nineteen hundred ninety-five, such tax on regular
22 wagers shall be four per centum. For the period June first, nineteen
23 hundred ninety-five through June thirtieth, two thousand two, such tax
24 on regular wagers shall be three per centum and such tax on multiple
25 wagers shall be two and one-half per centum, plus twenty per centum of
26 the breaks. Payment to the New York state thoroughbred breeding and
27 development fund by such association shall be one-half of one per centum
101 13001-04-9
1 of total daily on-track pari-mutuel pools resulting from regular, multi-
2 ple and exotic bets and three per centum of super exotic bets.
3 § 7. Subdivision 4 of section 301 of the racing, pari-mutuel wagering
4 and breeding law, as amended by chapter 2 of the laws of 1995, is
5 amended to read as follows:
6 4. The term "super exotic bet" or "super exotic wager", as used in
7 this chapter, shall mean a single bet or wager on six or more horses,
8 evidenced by a single ticket and representing an interest in a betting
9 pool hereby authorized to be conducted by licensed racing associations
10 or corporations or regional off-track betting corporations pursuant to
11 rules and regulations of the state racing and wagering board. Such rules
12 and regulations shall provide the manner in which winning tickets in
13 such pool shall be determined and may provide that a portion only of the
14 amounts otherwise available to winners of such pools be paid to holders
15 of consolation tickets combining the most winning horses as provided in
16 such rules and regulations and that the balance of amounts otherwise
17 available to winners from such pool be carried forward and deposited in
18 any subsequent super exotic pools. Such rules and regulations shall also
19 provide that an amount not to exceed six per centum of the total wagers
20 in each super exotic pool may be used or accumulated to reimburse any
21 such association or corporation conducting such pool for the cost of
22 assuring an advertised winning pay-out for winning wagers or for a capi-
23 tal improvement fund or to reimburse any such association or corporation
24 for amounts it has contributed to the amounts otherwise available for
25 winning wagers to increase the pay-out therefor. Such rules and regu-
26 lations may further provide that all of the amounts available for
27 winning tickets and accumulations therefor shall be distributed period-
28 ically to holders of tickets combining the most winners in a pool
102 13001-04-9
1 conducted upon a date specified by the board and, in any event, shall
2 provide for complete disposition of all amounts available for winning
3 tickets and accumulations therefor before the end of the licensed meet
4 during which such super exotic pools are conducted. Notwithstanding the
5 foregoing or any other provisions of law, if a nonprofit racing associ-
6 ation, a thoroughbred racing association or corporation, a harness
7 racing association or corporation or an off-track betting corporation
8 chooses to reduce the take out on super exotic bets to [twenty-five]
9 twenty-seven per centum, all distributions and taxes shall be distrib-
10 uted as though the bet were an exotic bet, except that a balance may be
11 retained and deposited in subsequent pools.
12 § 8. The opening paragraph of subdivision 1 of section 318 of the
13 racing, pari-mutuel wagering and breeding law, as amended by chapter 281
14 of the laws of 1994, is amended to read as follows:
15 Except as otherwise provided by law, every association or corporation
16 authorized under this article to conduct pari-mutuel betting at a
17 harness horse race meeting on races run thereat shall distribute all
18 sums deposited in any pari-mutuel pool to the holders of winning tickets
19 therein, provided such tickets be presented for payment prior to April
20 first of the year following the year of their purchase, less seventeen
21 per centum of the total deposits in pools resulting from regular bets,
22 less nineteen per centum of the total deposits in pools resulting from
23 multiple bets, less [twenty-five] twenty-seven per centum of the total
24 deposits in pools resulting from exotic bets, and less [thirty-six]
25 thirty-eight per centum of the total betting deposits in pools resulting
26 from super exotic bets, plus the breaks. In accordance with section nine
27 hundred one of this chapter, the board may approve an application from
28 any harness racing association or corporation to reduce the retained
103 13001-04-9
1 percentages as herein required by no more than six percentage points for
2 each pari-mutuel pool resulting from regular, multiple or exotic bets.
3 Except as otherwise provided in this section, such application shall
4 require the written consent of such track’s horsemen’s association or
5 corporation.
6 § 9. Subdivision 1 of section 418 of the racing, pari-mutuel wagering
7 and breeding law is amended to read as follows:
8 1. Every association or corporation authorized under sections two
9 hundred twenty-two through seven hundred five of this chapter to conduct
10 pari-mutuel betting at a quarter horse race meeting on races run thereat
11 shall distribute all sums deposited in any pari-mutuel pool to the hold-
12 ers of winning tickets therein provided such tickets be presented for
13 payment before April first of the year following the year of their
14 purchase, less seventeen per centum of the total deposits in pools
15 resulting from regular on-track bets and less nineteen per centum of the
16 total deposits in pools resulting from multiple bets and less [twenty-
17 five] twenty-seven per centum of the total deposits in pools resulting
18 from exotic on-track bets, plus the breaks. "Multiple bet" or "multiple
19 wager" shall mean a single bet or wager on two horses, evidenced by a
20 single ticket and representing an interest in a single betting pool.
21 "Exotic bet" or "exotic wager" shall mean a single bet or wager on three
22 or more horses, evidenced by a single ticket and representing an inter-
23 est in a single betting pool. The breaks for regular bets and multiple
24 bets are hereby defined as the odd cents over any multiple of ten or for
25 exotic bets, over any multiple of fifty calculated on the basis of one
26 dollar and otherwise payable to a patron. Of the sum so retained the
27 applicable tax rates for regular bets shall be three per centum; the
28 applicable tax rates for multiple bets shall be three and one-half per
104 13001-04-9
1 centum; the applicable tax rates for exotic bets shall be eight per
2 centum, plus sixty-five per centum of the amount of the breaks from
3 on-track regular, multiple and exotic bets shall be paid by such corpo-
4 ration or association to the state tax commission as a reasonable tax by
5 the state for the privilege of conducting pari-mutuel betting on the
6 races run at the quarter horse race meetings held by such corporation or
7 association, which tax is hereby levied, and the balance of the retained
8 percentage of such pool and of the breaks may be held by such corpo-
9 ration or association for its own use and purposes. The payment of such
10 state tax shall be made to the state tax commission at such regular
11 intervals as the said tax commission may require, and shall be accompa-
12 nied by a report under oath showing the total of all such contributions
13 together with such other information as the said tax commission may
14 require. A penalty of five per centum and interest at the rate of one
15 per centum per month from the date the report is required to be filed to
16 the date of payment of the tax shall be payable in case any tax imposed
17 by this section is not paid when due. If the state tax commission deter-
18 mines that any moneys received under this section were paid in error, it
19 may cause the same to be refunded without interest out of any moneys
20 collected thereunder, provided an application therefor is filed with it
21 within one year from the time the erroneous payment was made. Such
22 taxes, interest and penalties when collected, after the deduction of
23 refunds of taxes erroneously paid, shall be paid by the state tax
24 commission into the general fund of the state treasury. Ten per centum
25 of the breaks shall be paid to the New York state quarter horse breeding
26 and development fund.
105 13001-04-9
1 § 10. The opening paragraph of section 527 of the racing, pari-mutuel
2 wagering and breeding law, as amended by section 3 of part E of chapter
3 56 of the laws of 1998, is amended to read as follows:
4 Each regional corporation conducting off-track betting shall distrib-
5 ute all sums deposited in any pari-mutuel pool through such corporation
6 to the holders of winning tickets therein, providing such tickets be
7 presented for payment prior to April first of the year following the
8 year of their purchase, less seventeen per centum of the total deposits
9 in pools resulting from regular bets, less nineteen per centum of the
10 total deposits in pools resulting from multiple bets except such pools
11 on races conducted by a nonprofit racing association which shall be
12 seventeen per centum, less [twenty-five] twenty-seven per centum of the
13 total deposits in pools resulting from exotic bets, and less [thirty-
14 six] thirty-eight per centum of the total deposits in pools resulting
15 from super exotic bets plus the breaks; less an additional two per
16 centum of the total deposits in all pools of bets on thoroughbred races
17 conducted by a thoroughbred track in the Catskill region conducting a
18 mixed meeting. The board may approve an application from any regional
19 off-track betting corporation to reduce the retained percentages from
20 any regional harness track as herein required by no more than six
21 percentage points for each pari-mutuel pool resulting from regular,
22 multiple or exotic bets. Provided, however, from July twenty-first,
23 nineteen hundred ninety-five through June thirtieth, two thousand two,
24 all such regional corporations shall retain fifteen percent of the total
25 deposits in pools resulting from regular bets and twenty percent of the
26 total deposits in pools resulting from multiple bets plus the breaks on
27 races conducted by a nonprofit racing association.
106 13001-04-9
1 § 11. Paragraph c of subdivision 1 of section 905 of the racing, pari-
2 mutuel wagering and breeding law, as amended by chapter 524 of the laws
3 of 1991, is amended to read as follows:
4 c. Every association, corporation and non-profit racing association
5 shall distribute all sums deposited in any pari-mutuel pool to the hold-
6 ers of winning tickets therein, providing such tickets be presented for
7 payment before April first of the year following the year of their
8 purchase, less seventeen per centum of the total deposits in pools
9 resulting from regular bets and multiple bets less [twenty-five] twen-
10 ty-seven per centum of the total deposits in pools resulting from exotic
11 bets, and, with respect to super exotic wagers on the [Breeder’s] Breed-
12 ers' Cup events, less [thirty-six] thirty-eight per centum plus the
13 breaks.
14 § 12. The opening paragraph of subdivision 2 of section 905-a of the
15 racing, pari-mutuel wagering and breeding law, as amended by chapter 503
16 of the laws of 1992, is amended to read as follows:
17 For purposes of this subdivision, such racing associations, or corpo-
18 rations licensed or franchised in accordance with article two or three
19 of this chapter and every regional off-track betting corporation shall
20 distribute all sums deposited in any pari-mutuel pools to the holders of
21 winning tickets therein, provided however such tickets be presented for
22 payment prior to April first of the year following the year of their
23 purchase, less eighteen per centum of the total deposits in pools
24 resulting from regular bets, less twenty per centum of the total depos-
25 its in pools resulting from multiple bets, and less [twenty-six] twen-
26 ty-eight per centum of the total deposits in pools resulting from exotic
27 bets and super exotic bets, plus the breaks.
107 13001-04-9
1 § 13. Paragraph a of subdivision 1 of section 906 of the racing, pari-
2 mutuel wagering and breeding law, as amended by chapter 524 of the laws
3 of 1991, is amended to read as follows:
4 a. Each such betting operator taking such wagers, including any racing
5 association or corporation conducting such a race, shall distribute all
6 sums deposited in any pari-mutuel pool to the holders of winning tickets
7 therein, provided such tickets be presented for payment before April
8 first of the year following the year of their purchase, less eighteen
9 per centum of the total deposits in pools resulting from regular bets,
10 less twenty per centum of the total deposits in pools resulting from
11 multiple bets, and less [twenty-five] twenty-seven per centum of the
12 total deposits in pools resulting from exotic bets, and, with respect to
13 super exotic wagers on the [Breeder’s] Breeders' Crown events, less
14 [thirty-six] thirty-eight per centum plus the breaks.
15 § 14. The opening paragraph of paragraph j of subdivision 1 of section
16 1015 of the racing, pari-mutuel wagering and breeding law, as amended by
17 chapter 2 of the laws of 1995, is amended to read as follows:
18 Any facility authorized to accept wagers on out-of-state tracks shall
19 distribute all sums deposited in any pari-mutuel pool to the holders of
20 winning tickets therein, provided such tickets are presented for payment
21 prior to April first of the year following the year of their purchase
22 less eighteen per centum of the total deposits in pools resulting from
23 regular bets, less twenty-one per centum of the total deposits in pools
24 resulting from multiple bets, less [twenty-six] twenty-eight per centum
25 of the total deposits in pools resulting from exotic bets, less [thir-
26 ty-six] thirty-eight per centum of the total deposits in pools resulting
27 from super exotic bets plus the breaks as defined in section two hundred
28 twenty-eight of this chapter except that the retention rates and breaks
108 13001-04-9
1 shall be as prescribed by another state or country if such wagers are
2 combined with those in the other state or country pursuant to section
3 nine hundred seven of this chapter.
4 § 15. Subdivision 3 of section 1016 of the racing, pari-mutuel wager-
5 ing and breeding law, as amended by chapter 281 of the laws of 1994, is
6 amended to read as follows:
7 3. Any facility authorized to accept wagers on out-of-state tracks
8 shall distribute all sums deposited in any pari-mutuel pool to the hold-
9 ers of any tickets therein provided such tickets are presented for
10 payment prior to April first of the year following the year of their
11 purchase less nineteen per centum of total deposits in pools resulting
12 from regular bets, less twenty-one per centum of total deposits of pools
13 resulting from multiple bets, less [twenty-seven] twenty-nine per centum
14 of total deposits of pools resulting from exotic bets, less [thirty-six]
15 thirty-eight per centum of total deposits of pools resulting from super
16 exotic bets plus the breaks as defined in section three hundred eighteen
17 of this chapter except that the retention rates and breaks shall be as
18 prescribed by another state or country if such wagers are combined with
19 those in the other state or country pursuant to section nine hundred
20 seven of this chapter.
21 a. Distribution of retained commissions for all licensed harness
22 tracks shall be in accordance with article three of this chapter.
23 b. For off-track betting facilities, (1) of the sums so retained, the
24 applicable tax rate shall be one percent of all such wagers;
25 (2) of the sum so retained, one percent of all wagers shall be paid to
26 the New York state agricultural and horse breeding and development fund;
109 13001-04-9
1 (3) of the sum so retained, five percent shall be paid to the regional
2 licensed harness track to be distributed in the same manner as though
3 such payments were on races conducted at such track;
4 (4) of the sum so retained, an additional one percent of all wagers
5 shall be paid to the regional licensed harness track for the purpose of
6 increasing purses.
7 c. In those regions in which there is more than one regional licensed
8 harness track, the payments required under subparagraphs three and four
9 of paragraph b of this subdivision shall be made to the regional track
10 conducting a meet on the day out-of-state simulcasting occurs. If either
11 no track is conducting a meet, or more than one track is conducting a
12 meet, the distribution shall be made in the proportion that each track’s
13 handle bore to the total regional licensed harness track handle during
14 the preceding calendar month or in accordance with a contractual agree-
15 ment between the regional tracks and the off-track betting corporation.
16 d. For wagers placed at an off-track betting facility in that portion
17 of the western region located with a thoroughbred special betting
18 district, but not included in a harness special betting district, one
19 and one-half per centum of such wagers shall be paid to the racing asso-
20 ciation located in such district provided such association is neither
21 accepting wagers nor simulcasting out-of-state harness races. Any
22 payments required by this subdivision shall reduce payments required to
23 be made to the regional licensed harness track under the provisions of
24 subparagraph three of paragraph b of this subdivision.
25 § 16. Paragraph b of subdivision 1 of section 1017 of the racing,
26 pari-mutuel wagering and breeding law, as added by chapter 445 of the
27 laws of 1997, is amended to read as follows:
110 13001-04-9
1 b. Any facility authorized to accept wagers on out-of-state tracks
2 shall distribute all sums deposited in any pari-mutuel pool to the hold-
3 ers of winning tickets therein, provided such tickets are presented for
4 payment prior to April first of the year following the year of their
5 purchase less eighteen per centum of the total deposits in pools result-
6 ing from regular bets, less twenty-one per centum of the total deposits
7 in pools resulting from multiple bets, less [twenty-six] twenty-eight
8 per centum of the total deposits in pools resulting from exotic bets,
9 and less [twenty-seven] twenty-nine per centum of the total deposits in
10 pools resulting from super exotic bets, plus the breaks as defined in
11 section two hundred twenty-eight of this chapter except that the
12 retention rates and breaks shall be as prescribed by another state or
13 country if such wagers are combined with those in the other state or
14 country pursuant to section nine hundred seven of this chapter.
15 § 17. This act shall take effect April 1, 1999.
16 PART Q
17 § 1. The dormitory authority of the state of New York is authorized
18 to enter into an agreement with Cornell university for the support of
19 operation of the parallel computing supercomputers at the theory center
20 for supercomputers in connection with the business of the dormitory
21 authority in an amount not to exceed $1,200,000 over amounts previously
22 authorized.
23 § 2. This act shall take effect April 1, 1999.
24 PART R
25 § 1. The sum of three hundred twenty-seven million two hundred nine-
26 ty-five thousand dollars ($327,295,000), in accordance with subdivision
27 (a) of section 11 of chapter 329 of the laws of 1991 as amended, or so
28 much thereof as shall be necessary, and in addition to amounts previous-
111 13001-04-9
1 ly appropriated by law, is hereby made available, according to the
2 following schedule. Payments pursuant to subdivisions (a), (c) and (d)
3 of this section shall be made available as moneys become available for
4 such payments. Payments pursuant to subdivision (b) of this section
5 shall be made on the fifteenth day of June, September, December and
6 March or as soon thereafter as moneys become available for such
7 payments. No moneys of the state in the state treasury or any of its
8 funds shall be available for payments pursuant to this section:
9 SCHEDULE
10 (a) Thirty-five million thirty thousand dollars ($35,030,000) to muni-
11 cipalities for repayment of eligible costs of federal aid municipal
12 street and highway projects pursuant to section 15 of chapter 329 of the
13 laws of 1991, as added by section 9 of chapter 330 of the laws of 1991,
14 as amended. The department of transportation shall provide such informa-
15 tion to the municipalities as may be necessary to maintain the federal
16 tax exempt status of any bonds, notes, or other obligations issued by
17 such municipalities to provide for the non-federal share of the cost of
18 projects pursuant to chapter 330 of the laws of 1991 or section 80-b of
19 the highway law.
20 (b) One hundred ninety-two million two hundred sixty-five thousand
21 dollars ($192,265,000) to counties, cities, towns and villages for
22 reimbursement of eligible costs of local highway and bridge projects
23 pursuant to sections 16 and 16-a of chapter 329 of the laws of 1991, as
24 added by section 9 of chapter 330 of the laws of 1991, as amended. For
25 the purposes of computing allocations to municipalities, the amount
26 distributed pursuant to section 16 of chapter 329 of the laws of 1991
27 shall be deemed to be $115,271,000. The amount distributed pursuant to
28 section 16-a of chapter 329 of the laws of 1991 shall be deemed to be
112 13001-04-9
1 $102,629,000. Notwithstanding the provisions of any general or special
2 law, the amounts deemed distributed in accordance with section 16 of
3 chapter 329 of the laws of 1991 shall be adjusted so that such amounts
4 will not be less than 79.497 percent of the "funding level" as defined
5 in subdivision 5 of section 10-c of the highway law for each such muni-
6 cipality. In order to achieve the objectives of section 16 of chapter
7 329 of the laws of 1991, to the extent necessary, the amounts in excess
8 of 79.497 percent of the funding level to be deemed distributed to each
9 municipality under this paragraph shall be reduced in equal proportion.
10 Following the above computation of municipal allocations deemed distrib-
11 uted pursuant to sections 16 and 16-a of chapter 329 of the laws of
12 1991, and notwithstanding the provisions of any general or special law,
13 each municipality’s individual allocation shall be reduced by 11.765
14 percent for an aggregate reduction of $25,635,000, and these reduced
15 allocations shall represent the maximum reimbursement of eligible costs
16 of local highway and bride projects for each county, city, town or
17 village pursuant to sections 16 and 16-a of chapter 329 of the laws of
18 1991.
19 (c) Seventy-five million dollars ($75,000,000) for repayment to
20 project sponsors for project costs for: construction, reconstruction,
21 improvement, reconditioning and preservation of rail freight facilities
22 and intercity rail passenger facilities and equipment; construction,
23 reconstruction, improvement, reconditioning and preservation of the
24 ports of Albany, Ogdensburg, Oswego, and the gateway metro port in
25 Buffalo; construction, reconstruction, improvement, reconditioning and
26 preservation of municipal airports; privately owned airports and
27 aviation capital facilities, excluding airports operated by the state or
28 operated by a bi-state municipal corporate instrumentality for which
113 13001-04-9
1 federal funding is not available provided the project is consistent with
2 an approved airport layout plan; and construction, reconstruction,
3 enhancement, improvement, replacement, reconditioning, restoration,
4 rehabilitation and preservation of state, county, town, city and village
5 roads, highways, parkways and bridges.
6 The director of the budget shall certify to the New York state thruway
7 authority the amount of bonds, notes or other obligations for this
8 purpose to be sold pursuant to section 380 of the public authorities law
9 as amended.
10 (d) Twenty-five million dollars ($25,000,000) for repayment to project
11 sponsors for project costs for: construction, reconstruction, improve-
12 ment, reconditioning and preservation of rail freight facilities and
13 intercity rail passenger facilities and equipment; construction, recon-
14 struction, improvement, reconditioning and preservation of the ports of
15 Albany, Ogdensburg, Oswego, and the gateway metro port in Buffalo;
16 construction, reconstruction, improvement, reconditioning and preserva-
17 tion of municipal airports; privately owned airports and aviation capi-
18 tal facilities, excluding airports operated by the state or operated by
19 a bi-state municipal corporate instrumentality for which federal funding
20 is not available provided the project is consistent with an approved
21 airport layout plan; and construction, reconstruction, enhancement,
22 improvement, replacement, reconditioning, restoration, rehabilitation
23 and preservation of state, county, town, city and village roads, high-
24 ways, parkways and bridges.
25 The director of the budget shall certify to the New York state thruway
26 authority the amount of bonds, notes or other obligations for this
27 purpose to be sold pursuant to section 380 of the public authorities law
28 as amended.
114 13001-04-9
1 § 2. Section 41 of part A of chapter 58 of the laws of 1998 relating
2 to the authorization of local highway and bridge programs is amended to
3 read as follows:
4 § 41. The sum of three hundred [eighty-seven] fifty-seven million six
5 hundred thousand dollars [($387,600,000)] ($357,600,000), in accordance
6 with subdivision (a) of section 11 of chapter 329 of the laws of 1991 as
7 amended, or so much thereof as shall be necessary, and in addition to
8 amounts previously appropriated by law, is hereby made available,
9 according to the following schedule. Payments pursuant to subdivisions
10 (a), (c) and (d) of this section shall be made available as moneys
11 become available for such payments. Payments pursuant to subdivision
12 (b) of this section shall be made on the fifteenth day of June, Septem-
13 ber, December and March or as soon thereafter as moneys become available
14 for such payments. No moneys of the state in the state treasury or any
15 of its funds shall be available for payments pursuant to this section:
16 SCHEDULE
17 (a) Thirty-nine million seven hundred thousand dollars ($39,700,000)
18 to municipalities for repayment of eligible costs of federal aid munici-
19 pal street and highway projects pursuant to section 15 of chapter 329 of
20 the laws of 1991, as added by section 9 of chapter 330 of the laws of
21 1991, as amended. The department of transportation shall provide such
22 information to the municipalities as may be necessary to maintain the
23 federal tax exempt status of any bonds, notes, or other obligations
24 issued by such municipalities to provide for the non-federal share of
25 the cost of projects pursuant to chapter 330 of the laws of 1991 or
26 section 80-b of the highway law. The program authorized pursuant to
27 section 15 of chapter 329 of the laws of 1991 as added by section 9 of
115 13001-04-9
1 chapter 330 of the laws of 1991 as amended shall additionally make
2 payments for reimbursement according to the following schedule:
3 State Fiscal Year Amount
4 1999-2000 $39,700,000
5 (b) Two hundred seventeen million nine hundred thousand dollars
6 ($217,900,000) to counties, cities, towns and villages for reimbursement
7 of eligible costs of local highway and bridge projects pursuant to
8 sections 16 and 16-a of chapter 329 of the laws of 1991, as added by
9 section 9 of chapter 330 of the laws of 1991, as amended. For the
10 purposes of computing allocations to municipalities, the amount distrib-
11 uted pursuant to section 16 of chapter 329 of the laws of 1991 shall be
12 deemed to be $115,271,000. The amount distributed pursuant to section
13 16-a of chapter 329 of the laws of 1991 shall be deemed to be
14 $102,629,000. Notwithstanding the provisions of any general or special
15 law, the amounts deemed distributed in accordance with section 16 of
16 chapter 329 of the laws of 1991 shall be adjusted so that such amounts
17 will not be less than 79.497 percent of the "funding level" as defined
18 in subdivision 5 of section 10-c of the highway law for each such muni-
19 cipality. In order to achieve the objectives of section 16 of chapter
20 329 of the laws of 1991, to the extent necessary, the amounts in excess
21 of 79.497 percent of the funding level to be deemed distributed to each
22 municipality under this paragraph shall be reduced in equal proportion.
23 The program authorized pursuant to sections 16 and 16-a of chapter 329
24 of the laws of 1991 as added by section 9 of chapter 330 of the laws of
25 1991, as amended shall additionally make payments for reimbursement
26 according to the following schedule:
27 State Fiscal Year Amount
28 1999-2000 $217,900,000
116 13001-04-9
1 (c) [One hundred five] Seventy-five million dollars [($105,000,000)]
2 ($75,000,000) for repayment to project sponsors for project costs for:
3 construction, reconstruction, improvement, reconditioning and preserva-
4 tion of rail freight facilities and intercity rail passenger facilities
5 and equipment; construction, reconstruction, improvement, reconditioning
6 and preservation of the ports of Albany, Ogdensburg, Oswego, and the
7 gateway metro port in Buffalo; construction, reconstruction, improve-
8 ment, reconditioning and preservation of municipal airports; privately
9 owned airports and aviation capital facilities, excluding airports oper-
10 ated by the state or operated by a bi-state municipal corporate instru-
11 mentality for which federal funding is not available provided the
12 project is consistent with an approved airport layout plan; and
13 construction, reconstruction, enhancement, improvement, replacement,
14 reconditioning, restoration, rehabilitation and preservation of state,
15 county, town, city and village roads, highways, parkways and bridges.
16 The program authorized by chapter 637 of the laws of 1996 shall addi-
17 tionally be made available as follows:
18 State Fiscal Year Amount
19 1999-2000 [$105,000,000] $75,000,000
20 The director of the budget shall certify to the New York state thruway
21 authority the amount of bonds, notes or other obligations for this
22 purpose to be sold pursuant to section 380 of the public authorities law
23 as amended.
24 (d) Twenty-five million dollars ($25,000,000) for repayment to project
25 sponsors for project costs for: construction, reconstruction, improve-
26 ment, reconditioning and preservation of rail freight facilities and
27 intercity rail passenger facilities and equipment; construction, recon-
28 struction, improvement, reconditioning and preservation of the ports of
117 13001-04-9
1 Albany, Ogdensburg, Oswego, and the gateway metro port in Buffalo;
2 construction, reconstruction, improvement, reconditioning and preserva-
3 tion of municipal airports; privately owned airports and aviation capi-
4 tal facilities, excluding airports operated by the state or operated by
5 a bi-state municipal corporate instrumentality for which federal funding
6 is not available provided the project is consistent with an approved
7 airport layout plan; and construction, reconstruction, enhancement,
8 improvement, replacement, reconditioning, restoration, rehabilitation
9 and preservation of state, county, town, city and village roads, high-
10 ways, parkways and bridges. The program authorized by chapter 637 of the
11 laws of 1996 shall additionally be made available as follows:
12 State Fiscal Year Amount
13 1999-2000 $25,000,000
14 The director of the budget shall certify to the New York state thruway
15 authority the amount of bonds, notes or other obligations for this
16 purpose to be sold pursuant to section 380 of the public authorities law
17 as amended.
18 § 3. Section 9 of chapter 637 of the laws of 1996 amending the trans-
19 portation law and other laws relating to transportation, as amended by
20 section 43 of part A of chapter 58 of the laws of 1998, is amended to
21 read as follows:
22 § 9. The sum of six hundred [eighty-six] twenty-six million seven
23 hundred thousand dollars [($686,700,000)] ($626,700,000) or so much
24 thereof as shall be necessary, is hereby made available, in accordance
25 with subdivision 1 of section 380 of the public authorities law as
26 amended by this chapter of the laws of 1996, according to the following
27 schedule. Payments pursuant to subdivisions (a), (e) and (f) of this
28 section shall be made available as moneys become available for such
118 13001-04-9
1 payments. Payments pursuant to subdivision (b) of this section shall be
2 made on the fifteenth day of June, September, December and March or as
3 soon thereafter as moneys become available for such payments. Payments
4 pursuant to subdivisions (c) and (d) of this section shall be made on a
5 quarterly basis, or as soon thereafter as moneys become available for
6 such payments. No moneys of the state in the state treasury or any of
7 its funds shall be available for payments pursuant to this section:
8 SCHEDULE
9 (a) Thirty-six million seven hundred thousand dollars ($36,700,000) to
10 municipalities for repayment of eligible costs of federal aid municipal
11 street and highway projects pursuant to section 15 of chapter 329 of the
12 laws of 1991, as added by section 9 of chapter 330 of the laws of 1991,
13 as amended. The department of transportation shall provide such infor-
14 mation to the municipalities as may be necessary to maintain the federal
15 tax exempt status of any bonds, notes, or other obligations issued by
16 such municipalities to provide for the non-federal share of the cost of
17 projects pursuant to chapter 330 of the laws of 1991 or section 80-b of
18 the highway law.
19 The program authorized pursuant to section 15 of chapter 329 of the
20 laws of 1991 as added by section 9 of chapter 330 of the laws of 1991 as
21 amended shall additionally make payments for reimbursement according to
22 the following schedule:
23 State Fiscal Year Amount
24 1997-98 $38,200,000
25 1998-99 $39,700,000
26 1999-2000 $39,700,000
27 (b) Two hundred one million five hundred thousand dollars
28 ($201,500,000) to counties, cities, towns and villages for reimbursement
119 13001-04-9
1 of eligible costs of local highway and bridge projects pursuant to
2 sections 16 and 16-a of chapter 329 of the laws of 1991, as added by
3 section 9 of chapter 330 of the laws of 1991, as amended. For the
4 purposes of computing allocations to municipalities, the amount distrib-
5 uted pursuant to section 16 of chapter 329 of the laws of 1991 shall be
6 deemed to be $113,379,000. The amount distributed pursuant to section
7 16-a of chapter 329 of the laws of 1991 shall be deemed to be
8 $88,121,000. Notwithstanding the provisions of any general or special
9 law, the amounts deemed distributed in accordance with section 16 of
10 chapter 329 of the laws of 1991 shall be adjusted so that such amounts
11 will not be less than 78.1926 percent of the "funding level" as defined
12 in subdivision 5 of section 10-c of the highway law for each such muni-
13 cipality. In order to achieve the objectives of section 16 of chapter
14 329 of the laws of 1991, to the extent necessary, the amounts in excess
15 of 78.1926 percent of the funding level to be deemed distributed to each
16 municipality under this paragraph shall be reduced in equal proportion.
17 The program authorized pursuant to sections 16 and 16-a of chapter 329
18 of the laws of 1991 as added by section 9 of chapter 330 of the laws of
19 1991, as amended shall additionally make payments for reimbursement
20 according to the following schedule:
21 State Fiscal Year Amount
22 1997-98 $209,500,000
23 1998-99 $217,900,000
24 1999-2000 $217,900,000
25 (c) Thirteen million seven hundred fifty thousand dollars
26 ($13,750,000) for repayment to municipalities for the eligible costs of
27 the Long Island suburban highway improvement program authorized by
28 section 10-f of the highway law, as added by chapter 56 of the laws of
120 13001-04-9
1 1993. The director of the budget shall certify to the New York state
2 thruway authority the amount of bonds, notes or other obligations for
3 this purpose to be sold pursuant to section 380 of the public authori-
4 ties law, as amended by this chapter of the laws of 1996.
5 (d) Twenty-four million seven hundred fifty thousand dollars
6 ($24,750,000) for repayment to municipalities for the eligible costs of
7 the Hudson Valley suburban highway improvement program authorized by
8 section 10-g of the highway law, as added by chapter 56 of the laws of
9 1993. The director of the budget shall certify to the New York state
10 thruway authority the amount of bonds, notes or other obligations for
11 this purpose to be sold pursuant to section 380 of the public authori-
12 ties law as amended by this chapter of the laws of 1996.
13 (e) [Three hundred ten] Two hundred fifty million dollars
14 [($310,000,000)] ($250,000,000) for repayment to project sponsors for
15 project costs for: construction, reconstruction, improvement, recondi-
16 tioning and preservation of rail freight facilities and intercity rail
17 passenger facilities and equipment; construction, reconstruction,
18 improvement, reconditioning and preservation of the ports of Albany,
19 Ogdensburg, Oswego, and the gateway metro port in Buffalo; construction,
20 reconstruction, improvement, reconditioning and preservation of munici-
21 pal airports; privately owned airports and aviation capital facilities,
22 excluding airports operated by the state or operated by a bi-state
23 municipal corporate instrumentality for which federal funding is not
24 available provided the project is consistent with an approved airport
25 layout plan; and construction, reconstruction, enhancement, improvement,
26 replacement, reconditioning, restoration, rehabilitation and preserva-
27 tion of state, county, town, city and village roads, highways, parkways
121 13001-04-9
1 and bridges. Amounts authorized under this subdivision shall be made
2 available as follows:
3 State Fiscal Year Amount
4 1996-97 $25,000,000
5 1997-98 $75,000,000
6 1998-99 [$105,000,000] $75,000,000
7 1999-00 [$105,000,000] $75,000,000
8 The director of the budget shall certify to the New York state thruway
9 authority the amount of bonds, notes or other obligations for this
10 purpose to be sold pursuant to section 380 of the public authorities law
11 as amended by this act.
12 (f) $100,000,000 for repayment to project sponsors for project costs
13 for: construction, reconstruction, improvement, reconditioning and pres-
14 ervation of rail freight facilities and intercity rail passenger facili-
15 ties and equipment; construction, reconstruction, improvement, recondi-
16 tioning and preservation of the ports of Albany, Ogdensburg, Oswego, and
17 the gateway metro port in Buffalo; construction, reconstruction,
18 improvement, reconditioning and preservation of municipal airports;
19 privately owned airports and aviation capital facilities, excluding
20 airports operated by the state or operated by a bi-state municipal
21 corporate instrumentality for which federal funding is not available
22 provided the project is consistent with an approved airport layout plan;
23 and construction, reconstruction, enhancement, improvement, replacement,
24 reconditioning, restoration, rehabilitation and preservation of state,
25 county, town, city and village roads, highways, parkways and bridges.
26 Amounts authorized under this subdivision shall be made available as
27 follows:
28 State Fiscal Year Amount
122 13001-04-9
1 1996-97 $25,000,000
2 1997-98 $25,000,000
3 1998-99 $25,000,000
4 1999-00 $25,000,000
5 The director of the budget shall certify to the New York state thruway
6 authority the amount of bonds, notes or other obligations for this
7 purpose to be sold pursuant to section 380 of the public authorities law
8 as amended by this act.
9 (g) It is the intent of the governor, the temporary president of the
10 senate and the speaker of the assembly to enter into a memorandum of
11 understanding with respect to the implementation of the moneys scheduled
12 in subdivisions (e) and (f) of this section. However, this memorandum of
13 understanding shall not be executed until thirty days after the
14 execution of the memorandum of understanding on the state highway and
15 bridge program as is set forth in section eleven of this act.
16 § 4. This act shall take effect April 1, 1999.
17 PUBLIC PROTECTION, HEALTH AND MENTAL HYGIENE
18 PART S
19 § 1. Subparagraph 1 of paragraph (a) of subdivision 4 of section 541
20 of the executive law, as added by chapter 132 of the laws of 1979, is
21 amended to read as follows:
22 (1) within the amounts appropriated therefor, counties with an
23 approved county plan shall be eligible for reimbursement of [one
24 hundred] seventy-five per centum of the annual approved expenditures for
25 the preparation and revision of such county plan, evaluation of projects
26 contained within such county plan, execution of interagency agreements
27 necessary to carry out the plan, actions to consolidate, combine or
28 [colocate] collocate services within the county, and such other costs of
123 13001-04-9
1 the designated agency necessary to implement such county plan, provided
2 that the total annual[amount payable to] approved expenditures for a
3 county pursuant to this subparagraph shall not exceed the sum of one
4 dollar for each elderly person residing in the county, or seventy-five
5 thousand dollars, whichever is less, and further provided that for the
6 city of New York such amount shall not exceed one dollar for each elder-
7 ly person residing in the city or three hundred seventy-five thousand
8 dollars, whichever is less. Notwithstanding the foregoing limitations,
9 counties with a population of less than twenty thousand elderly persons
10 shall be eligible for reimbursement of [one hundred] seventy-five per
11 centum of such annual approved expenditures provided that the total
12 annual amount of such [reimbursement] approved expenditures per county
13 shall not exceed twenty thousand dollars.
14 § 2. Subparagraph 1 of paragraph (b) of subdivision 4 of section 541
15 of the executive law, as amended by chapter 545 of the laws of 1989, is
16 amended to read as follows:
17 (1) within the amounts appropriated therefor, counties having an
18 approved county plan shall be eligible for reimbursement by the state
19 for expenditures for approved community service projects pursuant to
20 this section. Such state reimbursement shall not exceed thirty-three
21 thousand six hundred dollars or four dollars twenty cents for each
22 elderly person residing in the county, whichever is greater. The direc-
23 tor shall proportionately reduce such sum for each county in any years
24 for which appropriations are not sufficient to fully fund approved
25 community service projects in all counties with approved county plans.
26 The director, with the approval of the director of the budget, may
27 authorize state reimbursement in excess of these levels to the extent
28 appropriations are available therefor. The [initial twenty-five thou-
124 13001-04-9
1 sand six hundred dollars or three dollars twenty cents per elderly
2 person of such] annual state reimbursement eligibility shall be at a
3 rate of seventy-five percent of the total annual expenditures for such
4 approved programs. [The remainder of such reimbursement eligibility
5 shall be at a rate of fifty percent for such expenditures.]
6 § 3. Subdivision 6 of section 541 of the executive law, as added by
7 chapter 894 of the laws of 1986, is amended to read as follows:
8 6. Implementation of home care plans. Within the amounts appropriated
9 therefor, counties authorized to provide expanded non-medical in-home
10 services, non-institutional respite services, case management services,
11 and ancillary services pursuant to paragraph (i) of subdivision four of
12 this section shall be eligible for reimbursement by the state of [one
13 hundred] seventy-five per centum of allowable expenditures for imple-
14 menting the approved county home care plan for functionally impaired
15 elderly, limited to a sum equivalent to one-half the amount available to
16 such county pursuant to subparagraph one of paragraph (a) of subdivision
17 four of this section.
18 § 4. This act shall take effect immediately.
19 PART T
20 § 1. Subdivision 1 of section 865 of the correction law, as amended by
21 chapter 55 of the laws of 1992, is amended to read as follows:
22 1. "Eligible inmate" means a person sentenced to an indeterminate term
23 of imprisonment who has not reached the age of [thirty-five] forty
24 years, who will become eligible for release on parole within three
25 years, who has not previously been convicted of a felony upon which an
26 indeterminate term of imprisonment was imposed who was between the ages
27 of sixteen and [thirty-five] forty at the time of commission of the
28 crime upon which his or her present sentence was based. Notwithstanding
125 13001-04-9
1 the foregoing, no person who is convicted of any of the following crimes
2 shall be deemed eligible to participate in this program: (a) a violent
3 felony offense as defined in article seventy of the penal law, (b) an
4 A-I felony offense, (c) manslaughter in the second degree, vehicular
5 manslaughter in the second degree, vehicular manslaughter in the first
6 degree, and criminally negligent homicide as defined in article one
7 hundred twenty-five of the penal law, (d) rape in the second degree,
8 rape in the third degree, sodomy in the second degree, sodomy in the
9 third degree, attempted sexual abuse in the first degree, attempted rape
10 in the second degree and attempted sodomy in the second degree as
11 defined in articles one hundred ten and one hundred thirty of the penal
12 law and (e) any escape or absconding offense as defined in article two
13 hundred five of the penal law.
14 § 2. This act shall take effect April 1, 1999.
15 PART U
16 § 1. Subdivision 1 of section 601-c of the correction law, as amended
17 by chapter 494 of the laws of 1985, is amended to read as follows:
18 1. The expense of maintaining persons convicted of a felony who shall
19 be sentenced to imprisonment in a [penitentiary] local correctional
20 facility prior to April first, nineteen hundred ninety-nine shall be
21 paid by the state at the actual per day per capita cost, as certified to
22 the commissioner by the appropriate local official, for the care of such
23 prisoner but, in any case, the reimbursement rate shall not exceed twen-
24 ty dollars per day per capita to the county or city operating such
25 facility.
26 § 2. This act shall take effect immediately and shall be deemed to
27 have been in full force and effect on and after April 1, 1999.
28 PART V
126 13001-04-9
1 § 1. Subdivision 2 of section 259-m of the executive law, as added by
2 chapter 904 of the laws of 1977, is amended to read as follows:
3 2. The [chairman of the board of parole] director of criminal justice
4 services shall have power and shall be charged with the duty of promul-
5 gating such rules and regulations as may be deemed necessary to carry
6 out the terms of a compact entered into by the state pursuant to this
7 section.
8 § 2. This act shall take effect immediately.
9 PART W
10 § 1. Paragraphs (a) and (b) of subdivision 2 of section 168-a of the
11 correction law, as added by chapter 192 of the laws of 1995, are amended
12 to read as follows:
13 (a) a conviction of or a conviction for an attempt to commit any of
14 the provisions of sections 130.25, 130.30, 130.40, 130.45, 130.60,
15 130.66, 130.80 and 255.25 or article [263] two hundred sixty-three of
16 the penal law, or section 135.05, 135.10, 135.20 or 135.25 of such law
17 relating to kidnaping offenses, provided the victim of such kidnaping or
18 related offense is less than seventeen years old; or
19 (b) a conviction of an offense in any other jurisdiction [of an
20 offense] which includes all of the essential elements of any such [felo-
21 ny] crime provided for in paragraph (a) of this subdivision [for which a
22 sentence to a term of imprisonment in excess of one year or a sentence
23 of death was authorized and is authorized in this state irrespective of
24 whether such sentence was imposed] or conviction of an offense in any
25 other jurisdiction which requires the offender to register as a sex
26 offender in the jurisdiction in which the conviction occurred.
127 13001-04-9
1 § 2. Paragraphs (a) and (b) of subdivision 3 of section 168-a of the
2 correction law, as added by chapter 192 of the laws of 1995, are amended
3 to read as follows:
4 (a) a conviction of or a conviction for an attempt to commit any of
5 the provisions of sections 130.35, 130.50, 130.65, 130.67 [and], 130.70
6 and 130.75 of the penal law; or
7 (b) a conviction of an offense of the law in any other jurisdiction
8 [of an offense] which includes all of the essential elements of any such
9 [felony] crime provided for in paragraph (a) of this subdivision [for
10 which a sentence to a term of imprisonment in excess of one year or a
11 sentence of death was authorized and is authorized in this state irre-
12 spective of whether such sentence was imposed] or conviction of an
13 offense in any other jurisdiction which requires the offender to regis-
14 ter as a sex offender in the jurisdiction in which the conviction
15 occurred.
16 § 3. Subdivision 4 of section 168-a of the correction law, as added by
17 chapter 192 of the laws of 1995, is amended to read as follows:
18 4. "Law enforcement agency having jurisdiction" means the chief law
19 enforcement officer in the village, town [or], city, or county in which
20 the offender expects to reside upon his discharge, probation, parole or
21 upon any form of state or local conditional release and shall also
22 include the division of state police.
23 § 4. Subdivision 7 of section 168-a of the correction law, as added by
24 chapter 192 of the laws of 1995, is amended to read as follows:
25 7. "Sexually violent predator" means a person who has been convicted
26 of a sexually violent offense as defined herein, or a sex offender as
27 defined herein who suffers from a mental abnormality that makes such
28 person likely to engage in predatory sexual conduct, or a person who has
128 13001-04-9
1 been convicted of a sex offense as defined in this section where the
2 risk of repeat offense by such person is high and there exists a threat
3 to the public safety.
4 § 5. Section 168-a of the correction law is amended by adding a new
5 subdivision 12 to read as follows:
6 12. Probation means a sentence of probation imposed pursuant to arti-
7 cle sixty-five of the penal law and shall include interim probation
8 supervision and shall also include a sentence of imprisonment imposed
9 with a sentence of probation.
10 § 6. Subdivision 2 of section 168-d of the correction law, as added by
11 chapter 192 of the laws of 1995, is amended to read as follows:
12 2. Any sex offender, who is released on probation or discharged upon
13 payment of a fine, conditional discharge or unconditional discharge
14 shall, prior to such release or discharge, be informed of his duty to
15 register under this article by the court in which he was convicted.
16 Where the court orders a sex offender released on probation, such order
17 must include a provision requiring that he comply with the requirements
18 of this article. Where such sex offender violates such provision,
19 probation may be immediately revoked in the manner provided by article
20 four hundred ten of the criminal procedure law. The court shall require
21 the sex offender to read and sign such form as may be required by the
22 division stating the duty to register and the procedure for registration
23 has been explained to him and to complete the registration portion of
24 such form. The court shall on such form obtain the address where the
25 sex offender expects to reside upon his release, and shall report the
26 address to the division. The court shall give one copy of the form to
27 the sex offender and shall send two copies to the division which shall
28 forward [one copy] the information to the law enforcement agency having
129 13001-04-9
1 jurisdiction where the sex offender expects to reside upon his release.
2 [Within] At least ten calendar days [of] prior to being released on
3 probation or discharged upon payment of a fine, conditional discharge or
4 unconditional discharge such sex offender shall register with the divi-
5 sion [for purposes of verifying such sex offender’s intended place of
6 residence] on a form prepared by the division.
7 § 7. Subdivision 3 of section 168-d of the correction law, as added by
8 chapter 192 of the laws of 1995, is amended to read as follows:
9 3. For sex offenders under this section, it shall be the duty of the
10 court applying the guidelines established in subdivision five of section
11 one hundred sixty-eight-1 of this article to determine the duration of
12 registration pursuant to section one hundred sixty-eight-h of this arti-
13 cle and level of notification pursuant to subdivision six of section one
14 hundred sixty-eight-1 of this article. [In making the determination,
15 the court shall review any victim’s statement and any materials submit-
16 ted by the sex offender. The court shall also allow the sex offender to
17 appear and be heard, and inform the sex offender of his right to have
18 counsel appointed, if necessary] At least fifteen days prior to the
19 determination proceeding, the state shall provide to the court and the
20 sex offender a written statement setting forth the duration of registra-
21 tion and level of notification sought by the state together with the
22 reasons for seeking such determinations. The court shall allow the sex
23 offender to appear and be heard, and in appropriate cases, the court in
24 its discretion, may assign counsel pursuant to the provisions of section
25 eleven hundred two of the civil practice law and rules. The state shall
26 appear by the district attorney, or his or her designee, who shall bear
27 the burden of proving the facts supporting the duration of registration
28 and level of notification sought by clear and convincing evidence. In
130 13001-04-9
1 making the determination, the court shall review any victim’s statement
2 and any materials submitted by the sex offender and the state, and the
3 court shall render an order setting forth its determinations. A copy of
4 the order shall be submitted by the court to the division. Either party
5 may appeal from the order pursuant to the provisions of articles fifty-
6 five and fifty-six of the civil practice law and rules.
7 § 8. Subdivision 1 of section 168-e of the correction law, as added by
8 chapter 192 of the laws of 1995, is amended to read as follows:
9 1. Any sex offender, to be discharged, paroled or released from any
10 state or local correctional facility, hospital or institution where he
11 was confined or committed, shall within forty-five calendar days prior
12 to discharge, parole or release, be informed of his duty to register
13 under this article, by the facility in which he was confined or commit-
14 ted. The facility shall require the sex offender to read and sign such
15 form as may be required by the division stating the duty to register and
16 the procedure for registration has been explained to him. The facility
17 shall obtain on such form the address where the sex offender expects to
18 reside upon his discharge, parole or release and shall report the
19 address to the division. The facility shall give one copy of the form to
20 the sex offender and shall send two copies to the division which shall
21 forward one copy to the law enforcement agency having jurisdiction where
22 the sex offender expects to reside upon his discharge, parole or
23 release. In addition, the facility shall give the sex offender a form
24 prepared by the division, to register with the division [within ten] at
25 least fifteen calendar days [for purposes of verifying such sex
26 offender’s intended place of residence] prior to release and such form
27 shall be completed, signed by the sex offender and sent to the division
28 at least ten days prior to release.
131 13001-04-9
1 § 9. Subdivision 1 of section 168-f of the correction law, as added by
2 chapter 192 of the laws of 1995, is amended to read as follows:
3 1. Any sex offender[, who is discharged, paroled or released] shall,
4 at least ten calendar days prior to (a) discharge, parole or release
5 from any state or local correctional facility, hospital or institution
6 where he was confined or committed, [shall] or, (b) release on probation
7 or discharge upon payment of a fine, conditional discharge or uncondi-
8 tional discharge, register with the division [within ten calendar days
9 for purposes of verifying such sex offender’s intended place of resi-
10 dence] on a form prepared by the division.
11 § 10. Paragraph (c) of subdivision 2 of section 168-f of the
12 correction law, as added by chapter 192 of the laws of 1995, is amended
13 to read as follows:
14 (c) If the sex offender fails to mail the signed verification form to
15 the division within ten calendar days after receipt of the form, he
16 shall be in violation of this section [unless he proves that he has not
17 changed his residence address].
18 § 11. Section 168-h of the correction law, as added by chapter 192 of
19 the laws of 1995, is amended to read as follows:
20 § 168-h. Duration of registration and verification. The duration of
21 registration and verification for a sex offender shall be annually for a
22 period of ten years from the initial date of registration, provided,
23 however, that for a sexually violent predator, he shall annually [regis-
24 ter and verify quarterly] verify his address with the division and shall
25 also personally verify his address every ninety calendar days with the
26 local law enforcement agency having jurisdiction where the offender
27 resides for a minimum of ten years unless the court determines in
28 accordance with section one hundred sixty-eight-o of this article, that
132 13001-04-9
1 the person no longer suffers from a mental abnormality that would make
2 him likely to engage in a predatory sexually violent offense.
3 § 12. Section 168-i of the correction law, as added by chapter 192 of
4 the laws of 1995, is amended to read as follows:
5 § 168-i. Registration and verification requirements. Registration and
6 verification as required by this article shall consist of a statement in
7 writing signed by the sex offender giving the information that is
8 required by the division and the division shall enter the information
9 into an appropriate electronic data base or file.
10 § 13. The opening paragraph of section 168-k of the correction law is
11 designated subdivision 1 and a new subdivision 2 is added to read as
12 follows:
13 2. The division shall also advise the board that the sex offender has
14 established residence in this state and has registered with the divi-
15 sion. After reviewing any information obtained by the board, and apply-
16 ing the guidelines established in subdivision five of section one
17 hundred sixty-eight-l of this article, the board shall, within sixty
18 calendar days make a recommendation regarding the duration of registra-
19 tion pursuant to section one hundred sixty-eight-h of this article and
20 level of notification pursuant to subdivision six of section one hundred
21 sixty-eight-l of this article. Such recommendation shall be submitted by
22 the board to the county court or supreme court and to the district
23 attorney in the county of residence of the sex offender. A determination
24 with respect to the duration of registration pursuant to section one
25 hundred sixty-eight-h of this article and level of notification pursuant
26 to subdivision six of section one hundred sixty-eight-l of this article
27 shall be made by the county court or the supreme court in the county of
28 residence of the sex offender. At least fifteen days prior to making the
133 13001-04-9
1 determination, such court shall notify the sex offender, in writing, of
2 the date of the determination proceeding and the court shall also
3 provide the sex offender with a copy of the recommendation received from
4 the board and any statement of the reasons for the recommendation
5 received from the board. If the district attorney seeks a determination
6 that differs from the recommendations submitted by the board, at least
7 ten days prior to the determination proceeding the state shall provide
8 to the court and the sex offender a statement setting forth the duration
9 of registration and level of notification sought by the state together
10 with the reasons for seeking such determinations. The court shall allow
11 the sex offender to appear and be heard, and in appropriate cases, the
12 court in its discretion, may assign counsel pursuant to the provisions
13 of section eleven hundred two of the civil practice law and rules. The
14 state shall appear by the district attorney, or his or her designee, who
15 shall bear the burden of proving the facts supporting the duration of
16 registration and level of notification sought by clear and convincing
17 evidence. In making the determination the court shall review any
18 victim’s statement and any materials submitted by the sex offender and
19 the recommendation and any materials submitted by the board as well as
20 any other evidence produced by the state, and the court shall render an
21 order setting forth its determinations. A copy of the order shall be
22 submitted by the court to the division. Either party may appeal from the
23 order pursuant to the provisions of articles fifty-five and fifty-six of
24 the civil practice law and rules.
25 § 14. Subdivision 6 of section 168-l of the correction law, as added
26 by chapter 192 of the laws of 1995, is amended to read as follows:
27 6. Applying these guidelines, the board shall within sixty calendar
28 days prior to the discharge, parole or release of a sex offender make a
134 13001-04-9
1 recommendation which shall be confidential and shall not be available
2 for public inspection, to the sentencing court as to whether such sex
3 offender warrants the designation of sexually violent predator. In addi-
4 tion, the guidelines shall be applied by the board to make a recommenda-
5 tion to the sentencing court, providing for one of the following three
6 levels of notification notwithstanding any other provision of law
7 depending upon the degree of the risk of re-offense by the sex offender.
8 The board may provide a copy of its recommendation to a parole or
9 probation officer who is or will be supervising the sex offender and to
10 the district attorney representing the state in a proceeding to deter-
11 mine the duration of registration and level of notification.
12 § 15. Section 168-l of the correction law is amended by adding a new
13 subdivision 8 to read as follows:
14 8. A failure by a state or local agency to act or render a determi-
15 nation within the time period specified in this article shall not affect
16 the obligation of the sex offender to register or verify under this
17 article nor shall such failure prevent a court from making a determi-
18 nation regarding the sex offender’s duration of registration and level
19 of notification.
20 § 16. Section 168-m of the correction law, as added by chapter 192 of
21 the laws of 1995, is amended to read as follows:
22 § 168-m. Review. Notwithstanding any other provision of law to the
23 contrary, any state or local correctional facility, hospital [or],
24 institution, district attorney, law enforcement agency, probation
25 department, division of parole, court or child protective agency shall
26 forward relevant information pertaining to a sex offender to be
27 discharged, paroled or released to the board for review no later than
28 one hundred twenty days prior to the release or discharge and the board
135 13001-04-9
1 shall make recommendations as provided in subdivision six of section one
2 hundred sixty-eight-l of this article within sixty days of receipt of
3 the information. Information may include but may not be limited to the
4 commitment file, medical file and treatment file pertaining to such
5 person. Such person shall be permitted to submit to the board any infor-
6 mation relevant to the review.
7 § 17. Subdivisions 1, 2 and 3 of section 168-n of the correction law,
8 as added by chapter 192 of the laws of 1995, are amended to read as
9 follows:
10 1. A determination that an offender is a sex offender or a sexually
11 violent predator shall be made prior to the discharge, parole or release
12 of such offender by the sentencing court applying the guidelines estab-
13 lished in subdivision five of section one hundred sixty-eight-l of this
14 article after receiving a recommendation from the board pursuant to
15 section one hundred sixty-eight-l of this article.
16 2. In addition, applying the guidelines established in subdivision
17 five of section one hundred sixty-eight-l of this article, the sentenc-
18 ing court shall also make a determination with respect to the level of
19 notification, after receiving a recommendation from the board pursuant
20 to section one hundred sixty-eight-l of this article. Both determi-
21 nations of the sentencing court shall be made thirty calendar days prior
22 to discharge, parole or release.
23 3. [In making the determination, the court shall, review any victim’s
24 statement and any materials submitted by the sex offender. The court
25 shall also allow the sex offender to appear and be heard, and inform the
26 sex offender of his right to have counsel appointed, if necessary] At
27 least fifteen days prior to making the determination, the sentencing
28 court shall notify the sex offender, in writing, of the date of the
136 13001-04-9
1 determination proceeding and the sentencing court shall also provide the
2 sex offender with a copy of the recommendation received from the board
3 and any statement of the reasons for the recommendation received from
4 the board. If the district attorney seeks a determination that differs
5 from the recommendations submitted by the board, at least ten days prior
6 to the determination proceeding the state shall provide to the court and
7 the sex offender a statement setting forth the duration of registration
8 and level of notification sought by the state together with the reasons
9 for seeking such determinations. The court shall allow the sex offender
10 to appear and be heard, and in appropriate cases the court in its
11 discretion, may assign counsel pursuant to the provisions of section
12 eleven hundred two of the civil practice law and rules. The state shall
13 appear by the district attorney, or his or her designee, who shall bear
14 the burden of proving the facts supporting the duration of registration
15 and level of notification sought by clear and convincing evidence. In
16 making the determination the court shall review any victim’s statement
17 and any materials submitted by the sex offender and the recommendation
18 and any materials submitted by the board as well as any other evidence
19 produced by the state, and the court shall render an order setting forth
20 its determinations. A copy of the order shall be submitted by the court
21 to the division. Either party may appeal from the order pursuant to the
22 provisions of articles fifty-five and fifty-six of the civil practice
23 law and rules.
24 § 18. Section 168-o of the correction law, as added by chapter 192 of
25 the laws of 1995, is amended to read as follows:
26 § 168-o. Petition for relief. Any sex offender required to register or
27 verify pursuant to this article may be relieved of any further duty to
28 register or verify upon the granting of a petition for relief by the
137 13001-04-9
1 sentencing court or by the court which made the determination regarding
2 duration of registration and level of notification if a petition for
3 relief is filed by a sex offender who is required to register pursuant
4 to the provisions of section one hundred sixty-eight-k of this article.
5 Upon receipt of the petition for relief, the court shall notify the
6 board and request an updated report pertaining to the sex offender.
7 After receiving the report from the board, the court may grant or deny
8 the relief sought or amend the offender’s risk level. The court may
9 consult with the victim prior to making a determination on the petition.
10 Such petition, if granted, shall not relieve the petitioner of the duty
11 to register pursuant to this article upon conviction of any offense
12 requiring registration in the future. Such a petition shall not be
13 considered more than annually. It shall be the obligation of the sex
14 offender to file a copy of the court’s determination with the division.
15 § 19. Subdivision 1 of section 168-q of the correction law, as added
16 by chapter 192 of the laws of 1995, is amended to read as follows:
17 1. The division [of criminal justice services] shall maintain a subdi-
18 rectory of sexually violent predators. The subdirectory shall include
19 the exact address and photograph of the sex offender along with the
20 following information, if available: name, physical description, age and
21 distinctive markings. Background information including the sex
22 offender’s crime of conviction, modus of operation, type of victim
23 targeted, and a description of special conditions imposed on the sex
24 offender shall also be included. The subdirectory shall have sex offen-
25 der listings categorized by county and zip code. A copy of the subdirec-
26 tory shall annually be distributed to the offices of local village, town
27 [or], city [police departments], county or state law enforcement agen-
28 cies for purposes of public access. Such [departments] agencies shall
138 13001-04-9
1 require that a person in writing express a purpose in order to have
2 access to the subdirectory and such [department] agencies shall maintain
3 these requests. Any information identifying the victim by name, birth
4 date, address or relation to the sex offender shall be excluded from the
5 subdirectory distributed for purposes of public access. The subdirectory
6 provided for herein shall be updated periodically to maintain its effi-
7 ciency and usefulness and may be computer accessible.
8 § 20. Section 168-t of the correction law, as added by chapter 192 of
9 the laws of 1995, is amended to read as follows:
10 § 168-t. Failure to register or verify; penalty. Any [person] sex
11 offender required to register or to verify pursuant to the provisions of
12 this article who fails to register or verify in the manner and within
13 the time periods provided for herein shall be guilty of a class A misde-
14 meanor for the first offense, and for a second or subsequent offense
15 shall be guilty of a class D felony. Any such failure to register or
16 verify may also be the basis for revocation of parole pursuant to
17 section two hundred fifty-nine-i of the executive law or the basis for
18 revocation of probation pursuant to article four hundred ten of the
19 criminal procedure law.
20 § 21. This act shall take effect immediately.
21 PART X
22 § 1. Subdivision 11 of section 700 of the county law, as amended by
23 chapter 309 of the laws of 1996, is amended to read as follows:
24 11. (a) In addition to the state aid provided in subdivision ten here-
25 of, each county, the salary of the district attorney of which is deter-
26 mined pursuant to section one hundred eighty-three-a of the judiciary
27 law, shall be entitled to receive state aid in an amount equal to the
28 difference between: (i) the salary required to be paid to the district
139 13001-04-9
1 attorney of such county pursuant to such section one hundred eighty-
2 three-a on October first, nineteen hundred ninety-four, not including
3 any additional compensation which may have been provided by local law
4 pursuant to such section one hundred eighty-three-a, and (ii) the salary
5 required to be paid to such district attorney pursuant to such section
6 one hundred eighty-three-a immediately prior to October first, nineteen
7 hundred eighty-seven, or the salary actually paid immediately prior to
8 such date, if higher, less the amount of any additional compensation
9 which may have been provided thereafter by any such local law prior to
10 April first, nineteen hundred ninety-six. Provided, however, where the
11 salary of the district attorney of a county first becomes determined
12 pursuant to section one hundred eighty-three-a of the judiciary law on
13 or after April first, nineteen hundred ninety-six, the state aid payable
14 to such county pursuant to this paragraph shall equal thirty-one thou-
15 sand dollars.
16 (b) In addition to the state aid provided in paragraph (a) of this
17 subdivision, each county, the salary of the district attorney of which
18 is determined pursuant to section one hundred eighty-three-a of the
19 judiciary law, shall be entitled to receive state aid in the amount of
20 forty-one percent of the difference between the amount required to be
21 paid to such district attorney pursuant to section one hundred eighty-
22 three-a of the judiciary law on and after January first, nineteen
23 hundred ninety-nine and the amount required to be paid pursuant to such
24 section immediately prior to such date, except that in the county of
25 Dutchess the amount shall be forty-two percent of such difference in the
26 county of Putnam the amount shall be forty percent of such difference in
27 the county of Monroe the amount shall be thirty-nine percent of such
140 13001-04-9
1 difference and in the counties of Erie, Nassau, Suffolk and Westchester
2 the amount shall be thirty-six percent of such difference.
3 (c) Commencing with the nineteen hundred eighty-seven calendar year,
4 the comptroller shall annually determine the amount of state aid payable
5 to each county pursuant to [paragraph] paragraphs (a) and (b) hereof for
6 each calendar year and shall pay such amount on his audit and warrant to
7 the chief fiscal officer of each such county during the month of Septem-
8 ber in each such year. Where a county first becomes entitled to state
9 aid pursuant to [paragraph] paragraphs (a) and (b) hereof on a day other
10 than [April] January first, nineteen hundred [ninety-six] ninety-nine or
11 [April] January first of any other year thereafter, the amount of state
12 aid payable to such county in the year it first becomes entitled to such
13 state aid shall be prorated accordingly.
14 § 2. This act shall take effect immediately and shall be deemed to
15 have been in effect on and after January 1, 1999.
16 PART Y
17 § 1. Paragraph (a) of subdivision 3 of section 366 of the social
18 services law, as amended by chapter 110 of the laws of 1971, is amended
19 to read as follows:
20 (a) Medical assistance shall be furnished to applicants in cases
21 where, although such applicant has a responsible relative with suffi-
22 cient income and resources to provide medical assistance as determined
23 by the regulations of the department, the income and resources of the
24 responsible relative are not available to such applicant because of the
25 absence of such relative [or] and the refusal or failure of such rela-
26 tive to provide the necessary care and assistance. In such cases,
27 however, the furnishing of such assistance shall create an implied
28 contract with such relative, and the cost thereof may be recovered from
141 13001-04-9
1 such relative in accordance with title six of article three of this
2 chapter and other applicable provisions of law.
3 § 2. Paragraph (b) of subdivision 6 of section 367-a of the social
4 services law, as added by chapter 41 of the laws of 1992 and subpara-
5 graph (iii) as amended by chapter 843 of the laws of 1992, is amended to
6 read as follows:
7 (b) Co-payments shall apply to all eligible persons for the services
8 defined in paragraph (d) of this subdivision with the exception of:
9 (i) individuals under twenty-one years of age;
10 (ii) pregnant women;
11 (iii) individuals who are inpatients in a medical facility who have
12 been required to spend all of their income for medical care, except
13 their personal needs allowance or residents of community based residen-
14 tial facilities licensed by the office of mental health or the office of
15 mental retardation and developmental disabilities who have been required
16 to spend all of their income, except their personal needs allowance;
17 (iv) individuals enrolled in health maintenance organizations or other
18 entities which provide comprehensive health services, or other managed
19 care programs for services covered by such programs; provided, however
20 that such individuals shall not be exempt from copayments for services
21 and supplies that are excluded from the capitation payment pursuant to
22 the provisions of section three hundred sixty-five-i of this title; and
23 (v) any other individuals required to be excluded by federal law or
24 regulations.
25 § 3. Subdivision (x) of section 165 of chapter 41 of the laws of 1992
26 amending the public health law and other laws relating to health care
27 providers, as amended by chapter 433 of the laws of 1997, is amended to
28 read as follows:
142 13001-04-9
1 (x) provided further that the provisions of [paragraph] paragraphs
2 (a), (b), (d), (e), (f), and (g) of subdivision 6 of section 367-a of
3 the social services law, as added by, and the amendatory language of
4 paragraph (c) of such subdivision as added by section ninety-one of this
5 act, shall expire and be deemed repealed on and after July 1, [1999]
6 2000 and on such date the provisions of paragraph (c) shall be read as
7 set out immediately preceding the effective date of this act.
8 § 4. Subdivision 1 of section 211 of chapter 474 of the laws of 1996
9 amending the education law and other laws relating to rates for residen-
10 tial health care facilities, as amended by chapter 433 of the laws of
11 1997, is amended to read as follows:
12 1. Notwithstanding any inconsistent provision of law or regulation to
13 the contrary, effective beginning January 1, 1997, and thereafter, the
14 department of health is authorized to pay public general hospitals,
15 other than those operated by the state of New York or the state univer-
16 sity of New York, as defined in subdivision 10 of section 2801 of the
17 public health law, located in a city with a population of over 1
18 million, additional payments for inpatient hospital services of $120
19 million during each state fiscal year until March 31, 1999 and the sum
20 of $190 million during the state fiscal year ending March 31, 2000, as
21 medical assistance payments pursuant to title 11 of article 5 of the
22 social services law for patients eligible for federal financial partic-
23 ipation under title XIX of the federal social security act in medical
24 assistance pursuant to the federal laws and regulations governing
25 disproportionate share payments to hospitals based on the relative share
26 of each such non-state operated public general hospital of medical
27 assistance and uninsured patient losses after all other medical assist-
28 ance, including disproportionate share[,] payments to such public gener-
143 13001-04-9
1 al hospitals for payments made during the state fiscal year ending
2 March 31, 1997, based initially on reported 1994 reconciled data as
3 further reconciled to actual reported 1997 reconciled data, for payments
4 made during the state fiscal year ending March 31, 1998, based initially
5 on reported 1995 reconciled data as further reconciled to actual
6 reported 1997 or 1998 reconciled data, [and] for payments made during
7 the state fiscal year ending March 31, 1999, based initially on reported
8 1995 reconciled data as further reconciled to actual reported 1998 or
9 1999 data, and for payments made during the state fiscal year ending
10 March 31, 2000, based initially on reported 1996 reconciled data as
11 further reconciled to actual reported 1998 or 1999 data. The payments
12 may be added to rates of payment or made aggregate payments to an eligi-
13 ble public general hospital.
14 § 5. Subdivision 1 of section 212 of chapter 474 of the laws of 1996
15 amending the education law and other laws relating to rates for residen-
16 tial health care facilities, as amended by chapter 433 of the laws of
17 1997, is amended to read as follows:
18 1. Notwithstanding any inconsistent provision of law or regulation to
19 the contrary, effective beginning August 1, 1996, April 1, 1997 for the
20 period April 1, 1997 through March 31, 1998, [and] April 1, 1998 for the
21 period April 7, 1998 through March 31, 1999, and April 1, 1999, for the
22 period April 1, 1999 through March 31, 2000, the department of health is
23 authorized to pay public general hospitals, as defined in subdivision 10
24 of section 2801 of the public health law, operated by the state of New
25 York or by the state university of New York or by a county, which shall
26 not include a city with a population of over one million, of the state
27 of New York, and those public general hospitals located in the county of
28 Westchester or the county of Nassau, additional payments for inpatient
144 13001-04-9
1 hospital services as medical assistance payments pursuant to title 11 of
2 article 5 of the social services law for patients eligible for federal
3 financial participation under title XIX of the federal social security
4 act in medical assistance pursuant to the federal laws and regulations
5 governing disproportionate share payments to hospitals based on each
6 such public general hospital’s medical assistance and uninsured patient
7 losses after all other medical assistance, including disproportionate
8 share[,] payments to such public general hospital for 1996, 1997 [and],
9 1998, and 1999, based initially for 1996 on reported 1994 reconciled
10 data as further reconciled to actual reported 1996 reconciled data, and
11 for 1997 based initially on reported 1995 reconciled data as further
12 reconciled to actual reported 1997 reconciled data, [and] for 1998 based
13 initially on reported 1995 reconciled data as further reconciled to
14 actual reported 1998 reconciled data, and for 1999 based initially on
15 reported 1996 reconciled data as further reconciled to actual reported
16 1999 reconciled data. The payments may be added to rates of payment or
17 made as aggregate payments to an eligible public general hospital.
18 § 6. Subdivision 12 of section 2808 of the public health law, as
19 amended by chapter 433 of the laws of 1997, is amended to read as
20 follows:
21 12. (a) Notwithstanding any inconsistent provision of law or regu-
22 lation, the commissioner shall increase rates of payment established
23 pursuant to this article for non-state operated public residential
24 health care facilities in an aggregate amount not to exceed one hundred
25 million dollars in additional reimbursement for payments for services
26 provided during the period July first, nineteen hundred ninety-five
27 through March thirty-first, nineteen hundred ninety-six. The commis-
145 13001-04-9
1 sioner may adopt rules and regulations necessary to implement this para-
2 graph.
3 (b) Notwithstanding any inconsistent provision of law or regulation,
4 the commissioner shall provide, in addition to payments established
5 pursuant to this article prior to application of this section, addi-
6 tional payments under the medical assistance program pursuant to title
7 eleven of article five of the social services law for non-state operated
8 public residential health care facilities, excluding public residential
9 health care facilities operated by a town or city within a county, in an
10 aggregate amount of two hundred fifty-seven million dollars in addi-
11 tional payments in the period August first, nineteen hundred ninety-six
12 through March thirty-first, nineteen hundred ninety-seven.
13 (c) Notwithstanding any inconsistent provision of law or regulation,
14 the commissioner shall provide, in addition to payments established
15 pursuant to this article prior to application of this section, addi-
16 tional payments under the medical assistance program pursuant to title
17 eleven of article five of the social services law for non-state operated
18 public residential health care facilities, including public residential
19 health care facilities located in the county of Nassau and the county of
20 Westchester, but excluding public residential health care facilities
21 operated by a town or city within a county, in an aggregate amount of
22 $631.1 million in additional payments in the period April first, nine-
23 teen hundred ninety-seven through March thirty-first, nineteen hundred
24 ninety-eight, and a like amount in the period April first, nineteen
25 hundred ninety-eight through March thirty-first, nineteen hundred nine-
26 ty-nine.
27 (d) Notwithstanding any inconsistent provision of law or regulation,
28 the commissioner shall provide, in addition to payments established
146 13001-04-9
1 pursuant to this article prior to application of this section, addi-
2 tional payments under the medical assistance program pursuant to title
3 eleven of article five of the social services law for non-state operated
4 public residential health care facilities, including public residential
5 health care facilities located in the county of Nassau and the county of
6 Westchester, but excluding public residential health care facilities
7 operated by a town or city within a county, in an aggregate amount of
8 $982 million in additional payments in the period April first, nineteen
9 hundred ninety-nine through March thirty-first, two thousand.
10 (e) The amount allocated to each eligible public residential health
11 care facility for each period shall be calculated as the result of (A)
12 the total payment for each period multiplied by (B) the ratio of patient
13 days for patients eligible for medical assistance pursuant to title
14 eleven of article five of the social services law provided by the public
15 residential health care facility, divided by the total of such patient
16 days summed for all eligible public residential health care facilities.
17 For the period August first, nineteen hundred ninety-six through March
18 thirty-first, nineteen hundred ninety-seven, nineteen hundred ninety-
19 four patient days shall be utilized for the period April first, nineteen
20 hundred ninety-seven through March thirty-first, nineteen hundred nine-
21 ty-eight, nineteen hundred ninety-five patient days shall be utilized
22 [and] for the period April first, nineteen hundred ninety-eight through
23 March thirty-first, nineteen hundred ninety-nine, nineteen hundred nine-
24 ty-six patient days shall be utilized; and for the period April first,
25 nineteen hundred ninety-nine through March thirty-first, two thousand,
26 nineteen hundred ninety-seven patient days shall be utilized.
147 13001-04-9
1 [(e)] (f) Payments may be made based on adjustments to rates of
2 payment for services provided during the applicable period or as lump
3 sum payments to an eligible residential health care facility.
4 § 7. Section 219 of chapter 474 of the laws of 1996 amending the
5 education law and other laws relating to rates for residential health
6 care facilities, as amended by chapter 433 of the laws of 1997, is
7 amended to read as follows:
8 § 219. For purposes of proportionate share payments pursuant to para-
9 graph (b) of subdivision 12 of section 2808 of the public health law,
10 two hundred thirty-one million one hundred thousand dollars
11 [631,100,000] ($231,100,000) for the period August 1, 1996 through March
12 31, 1997, and six hundred thirty-one million one hundred thousand
13 dollars ($631,100,000) for the period April 1, 1997 through March 31,
14 1998, and a like sum for the period April 1, 1998 through March 31,
15 1999, and nine hundred eighty-two million dollars ($982,000,000) for the
16 period April 1, 1999 through March 31, 2000, shall be utilized within
17 funds available, including federal funds, for payments under the medical
18 assistance program and allocated for such purposes.
19 § 8. Section 220 of chapter 474 of the laws of 1996 amending the
20 education law and other laws relating to rates for residential health
21 care facilities, is amended to read as follows:
22 § 220. Notwithstanding any inconsistent provision of law or regu-
23 lation to the contrary, the social services district in which an eligi-
24 ble public residential health care facility is physically located shall
25 be responsible for the payments for such public residential health care
26 facility as determined in accordance with [paragraph (b) of] subdivision
27 12 of section 2808 of the public health law for all residential health
28 care facility services provided by such public residential health care
148 13001-04-9
1 facility in accordance with section 365-a of the social services law,
2 regardless of whether another social services district or the department
3 of social services may otherwise be responsible for furnishing medical
4 assistance to the eligible persons receiving such services.
5 § 9. Section 222 of chapter 474 of the laws of 1996 amending the
6 education law and other laws relating to rates for residential health
7 care facilities, as amended by chapter 433 of the laws of 1997, is
8 amended to read as follows:
9 § 222. Notwithstanding any inconsistent provision of law or regulation
10 to the contrary, beginning April 1, 1997, and thereafter, a county or
11 the city of New York in which a public residential health care facility
12 is participating in a payment pursuant to [paragraph (b) or (c) of]
13 subdivision 12 of section 2808 of the public health law shall, on or
14 before a date specified by the department of health, in each year in
15 which such county shall participate in such payments, transfer by elec-
16 tronic funds transfer to or through the state comptroller, a total
17 amount equal to forty percent of the projected payments pursuant to
18 [paragraph (b) or (c) of] subdivision 12 of section 2808 of the public
19 health law for such public residential health care facility.
20 § 10. Subdivision (a) of section 222-a of chapter 474 of the laws of
21 1996 amending the education law and other laws relating to rates for
22 residential health care facilities, as added by chapter 433 of the laws
23 of 1997, is amended to read as follows:
24 (a) All payments made by the state or a county as medical assistance
25 pursuant to [paragraph (b) or (c) of] subdivision 12 of section 2808 of
26 the public health law and sections two hundred eleven, two hundred
27 twelve, two hundred fourteen, two hundred sixteen, two hundred eighteen
28 and two hundred twenty-one of this act, shall be made by electronic
149 13001-04-9
1 funds transfer under the supervision of and pursuant to the rules, regu-
2 lations and practices of the state comptroller.
3 § 11. Subparagraph (ii) of paragraph (c) of subdivision 11 of section
4 2807-d, paragraph (c) of subdivision 11 of section 3614-a and subdivi-
5 sion 11 of section 3614-b of the public health law are REPEALED.
6 § 12. Notwithstanding any provisions of law, rule or regulation, there
7 shall be no refunds due to any provider of services of collections or
8 payments made on account of the assessments, additional assessments, or
9 further additional assessments, imposed pursuant to sections 2807-d,
10 3614-a and 3614-b of the public health law for the period April 1, 1997
11 through March 31, 1999, whenever collected or paid.
12 § 13. This act shall take effect April 1, 1999, except that the
13 provisions of section eight of this act shall be deemed to have been in
14 full force and effect on the same date as chapter 433 of the laws of
15 1997 took effect; provided, however, that the amendments to paragraph
16 (b) of subdivision 6 of section 367-a of the social services law made by
17 section two of this act shall not affect the repeal of such subdivision
18 and shall be deemed repealed therewith.
19 PART Z
20 § 1. Chapter 174 of the laws of 1990, relating to establishing the
21 youth opportunity program, is REPEALED.
22 § 2. This act shall take effect July 1, 1999.
23 PART AA
24 § 1. Section 1.03 of the mental hygiene law is amended by adding a
25 new subdivision 25 to read as follows:
26 25. "Chemical abuse" means the use of alcohol and/or one or more
27 substances to the extent that there is impairment of normal development
28 or functioning due to such use in one or more of the major life areas
150 13001-04-9
1 including but not limited to the social, emotional, familial, educa-
2 tional, vocational, or physical. The term "chemical abuse" shall mean
3 and include alcohol and/or substance abuse.
4 § 2. Subdivision 44 of section 1.03 of the mental hygiene law, as
5 added by chapter 223 of the laws of 1992, is amended to read as follows:
6 44. "Chemical dependence" [shall mean the use of both] means the
7 repeated use of alcohol [and] and/or one or more substances [or, in
8 categories of programs identified by the commissioner in regulation, the
9 use of alcohol or substances or both,] to the extent that there is
10 evidence of physical or psychological reliance on alcohol and/or
11 substances, the existence of physical withdrawal symptoms from alcohol
12 and/or one or more substances, a pattern of compulsive use, and impair-
13 ment of normal development or functioning due to such use in one or more
14 of the major life areas including but not limited to the social,
15 emotional, familial, educational, vocational, and physical. Unless
16 otherwise provided, for the purposes of this chapter, the term "chemical
17 dependence" shall mean and include alcoholism and/or substance depend-
18 ence.
19 § 3. Section 1.03 of the mental hygiene law is amended by adding a new
20 subdivision 55 to read as follows:
21 55. "Chemical dependence services" shall mean examination, evaluation,
22 diagnosis, care, treatment, rehabilitation, or training of persons
23 suffering from alcohol and/or substance abuse and/or dependence and
24 significant others. Unless otherwise provided, for the purposes of this
25 chapter, the term "chemical dependence services" shall mean and include
26 alcoholism and/or substance abuse services.
151 13001-04-9
1 § 4. The opening paragraph of paragraph 1 of subdivision (a) of
2 section 5.07 of the mental hygiene law, as amended by chapter 208 of the
3 laws of 1996, is amended to read as follows:
4 The mental health services council and the advisory councils on mental
5 retardation and developmental disabilities and alcoholism and substance
6 abuse services shall each establish statewide goals and objectives to
7 guide comprehensive planning, resource allocation and evaluation proc-
8 esses for state and local services for the mentally ill, mentally
9 retarded and developmentally disabled and those suffering from [alcohol-
10 ism and substance] chemical abuse or dependence, respectively. Such
11 goals and objectives shall:
12 § 5. Subdivision (e) of section 19.07 of the mental hygiene law, as
13 amended by chapter 208 of the laws of 1996, is amended to read as
14 follows:
15 (e) Consistent with the requirements of subdivision (b) of section
16 5.05 of this chapter, the office shall carry out the provisions of arti-
17 cle [thirty-one] thirty-two of this chapter as such article pertains to
18 regulation and quality control of [alcoholism and substance abuse] chem-
19 ical dependence services, including but not limited to the establishment
20 of standards for determining the necessity and appropriateness of care
21 and services provided by [alcoholism, substance abuse, and] chemical
22 dependence providers of services. In implementing this subdivision, the
23 commissioner, in consultation with the commissioner of health, shall
24 adopt standards including necessary rules and regulations including but
25 not limited to those for determining the necessity or appropriate level
26 of admission, controlling the length of stay and the provision of
27 services, and establishing the methods and procedures for making such
28 determination.
152 13001-04-9
1 § 6. Subdivisions (b), (d) and (g) of section 19.09 of the mental
2 hygiene law, as amended by chapter 208 of the laws of 1996, are amended
3 to read as follows:
4 (b) The commissioner may adopt regulations necessary and proper to
5 implement any matter under his or her jurisdiction. Proposed rules and
6 regulations regarding alcoholism [services] or substance abuse services
7 shall be submitted to the advisory council on alcoholism and substance
8 abuse services for its advice, in accordance with this article, unless
9 the commissioner finds that the public health, safety, or general
10 welfare requires that such [submission be dispensed with] regulation be
11 promulgated as an emergency rulemaking.
12 (d) The commissioner shall survey and analyze the state’s needs, and
13 with the advice of the advisory council on alcoholism and substance
14 abuse services, shall, in accordance with the requirements of section
15 5.07 and article twenty-five of this chapter, as it pertains to
16 substance abuse services, and article forty-one of this chapter, as it
17 pertains to alcoholism services, formulate a comprehensive plan for long
18 range development, through utilization of a network of federal, state,
19 local and private resources, of adequate services and facilities for the
20 prevention and control of [alcoholism, alcohol abuse, substance abuse,
21 substance dependence and] chemical abuse or dependence and from time to
22 time revise such plan, ensuring that such plans have as part of their
23 goal the delivery of services to women and children, including pregnant
24 women unless such programs have provided for the treatment of pregnant
25 women through a transfer agreement with another provider.
26 (g) The commissioner shall establish and operate [alcoholism,
27 substance abuse, and/or] chemical dependence programs, [treatment]
28 facilities, and services for the prevention of [abuse of alcohol and/or
153 13001-04-9
1 substances] chemical abuse and the treatment and rehabilitation of
2 persons who abuse or are dependent on alcohol and/or substances, and
3 significant others not limited to the psychiatric model but embodying
4 all recognized or promising approaches. Alcoholism and substance abuse
5 treatment programs and services may be discrete from one another unless
6 otherwise specified in regulations promulgated by the commissioner who
7 shall seek the advice of the advisory council on alcoholism and
8 substance abuse services.
9 § 7. Subdivisions (d), (e) and (g) of section 19.17 of the mental
10 hygiene law, subdivisions (d) and (e) as added by chapter 223 of the
11 laws of 1992 and subdivision (g) as added by chapter 393 of the laws of
12 1993, are amended to read as follows:
13 (d) The commissioner shall direct and carry on basic clinical, epide-
14 miological, social science, evaluative, and statistical research in
15 [alcoholism, alcohol abuse, substance abuse, substance dependence, and]
16 chemical abuse and dependence either individually or in conjunction with
17 other agencies, public or private, and, within the amounts made avail-
18 able by appropriation therefor, develop pilot programs. In pursuance of
19 the foregoing and notwithstanding any other provision of law, the office
20 may establish, direct, and carry on experimental pilot clinical programs
21 providing for early intervention and for treatment of [alcoholism, alco-
22 hol abuse, substance abuse, substance dependence, and] chemical abuse
23 and dependence. Such treatment may include the administration, under
24 medical supervision and control, of experimental substances.
25 (e) The office shall have the authority to gather information and
26 maintain statistical and other records relating to [alcoholism,
27 substance abuse, and] chemical abuse and dependence services in the
28 state. Any person licensed or otherwise permitted to dispense, adminis-
154 13001-04-9
1 ter, or conduct research with respect to a controlled substance in the
2 course of a licensed professional practice or research license pursuant
3 to article thirty-three of the public health law and all public offi-
4 cials having duties to perform with respect to controlled substances or
5 users of such substances shall report and supply such information to the
6 office in relation thereto as the office shall by rule, regulation, or
7 order require consistent with appropriate state and federal law relative
8 to the confidentiality of patient records.
9 (g) The office shall have the authority to establish an information
10 policy and data reporting procedure for the collection, use, and disclo-
11 sure of data from [alcoholism and/or substance abuse treatment facili-
12 ties] providers of chemical dependence services, including procedures to
13 ensure the protection of [client-identifying] patient-identifying infor-
14 mation and data gathered pursuant to section 19.16 of this article,
15 which shall be deemed confidential except as otherwise provided by law
16 including, but not limited to, articles six and six-A of the public
17 officers law.
18 § 8. Subdivision (b) of section 19.21 of the mental hygiene law, as
19 added by chapter 223 of the laws of 1992, is amended to read as follows:
20 (b) The office shall redefine and develop, establish, promulgate, and
21 enforce certification, inspection, licensing, and treatment standards
22 for [alcoholism, substance abuse, and] chemical dependence facilities
23 and staff, which shall be applied in addition to any other standards for
24 any other services provided by such facilities, and which shall be
25 applicable to any facility providing or purporting to provide as part or
26 all of a program of services, any services for the alleviation of the
27 conditions of alcoholism, alcohol abuse, substance abuse, substance
28 dependence, chemical abuse, or chemical dependence. [Such certification
155 13001-04-9
1 shall include procedures for granting temporary approval of an operating
2 certificate or license for a period not to exceed one hundred twenty
3 days, in the event of a threat or imminent threat of a catastrophic or
4 emergency loss of available services. Such temporary approval may be
5 extended beyond one hundred twenty days as deemed necessary by the
6 commissioner, but not to exceed more than an additional one hundred
7 twenty days.]
8 § 9. Section 19.39 of the mental hygiene law is REPEALED.
9 § 10. Section 19.40 of the mental hygiene law, as added by chapter 384
10 of the laws of 1996, is amended to read as follows:
11 § 19.40 Provision of chemical dependence services.
12 (a) Notwithstanding any other provision of law, the office [of alco-
13 holism and substance abuse services] shall have the authority to issue a
14 single operating certificate for the provision of chemical dependence
15 services to providers of alcoholism and/or substance abuse services
16 previously certified or licensed pursuant to articles twenty-three
17 and/or thirty-one of this chapter and who are deemed by the commissioner
18 to meet applicable requirements of [articles twenty-three and thirty-
19 one] article thirty-two of this chapter and operating regulations
20 promulgated thereunder. The commissioner [of alcoholism and substance
21 abuse services] shall have the authority to waive any requirements
22 deemed to be duplicative or unnecessary to implement the provisions of
23 this [section] subdivision.
24 [(b) For purposes of this article, the term "chemical dependence
25 services" shall mean examination, diagnosis, care, treatment, rehabili-
26 tation, or training of persons suffering from alcoholism and/or
27 substance abuse and/or dependence.
156 13001-04-9
1 (c) For purposes of this article, the term "chemical dependence" shall
2 mean the repeated use of alcohol and/or substances to the extent that
3 there is evidence of physical or psychological reliance on alcohol
4 and/or substances, the existence of physical withdrawal symptoms from
5 alcohol and/or substances, a pattern of compulsive use, and impairment
6 of normal development or functioning due to such use in one or more
7 major life areas including but not limited to the social, emotional,
8 familial, educational, vocational, or physical.]
9 (b) Certificates of approval and operating certificates previously
10 issued under article twenty-three and/or thirty-one of this chapter
11 shall remain in full force and effect until they are converted to oper-
12 ating certificates for the provision of chemical dependence services
13 pursuant to this chapter. Conversion shall occur upon promulgation of
14 applicable chemical dependence operating regulations by the commission-
15 er, taking into consideration time which is reasonably needed by provid-
16 ers of services to come into compliance with such applicable regu-
17 lations.
18 (c) All providers of chemical dependence services issued operating
19 certificates pursuant to this section shall be subject to all provisions
20 of this chapter applicable to providers of alcoholism services and to
21 all provisions of this chapter applicable to providers of substance
22 abuse services.
23 (d) Providers of chemical dependence services not previously certified
24 or licensed pursuant to articles twenty-three and/or thirty-one of this
25 chapter shall be certified for the provision of such services pursuant
26 to article thirty-two of this chapter.
27 § 11. Article 21 of the mental hygiene law is REPEALED and a new
28 article 22 is added to read as follows:
157 13001-04-9
1 ARTICLE 22
2 CHEMICAL DEPENDENCE PROGRAMS, TREATMENT FACILITIES, AND SERVICES
3 Section 22.01 Admission to chemical dependence programs, treatment
4 facilities and services.
5 22.03 Patient rights; notice to all patients of their rights.
6 22.05 Patient’s records.
7 22.07 Informal admission.
8 22.09 Emergency services for persons intoxicated, impaired, or
9 incapacitated by alcohol and/or substances.
10 22.11 Treatment of minors.
11 § 22.01 Admission to chemical dependence programs, treatment facilities
12 and services.
13 Unless otherwise specifically provided for by statute, a person
14 suffering from chemical abuse or dependence shall be admitted to a chem-
15 ical dependence program, service, or treatment facility pursuant to the
16 provisions of this article. For purposes of this article, the term
17 "chemical dependence programs, treatment facilities and services" shall
18 mean and include alcoholism and/or substance abuse programs, treatment
19 facilities, and services.
20 § 22.03 Patient rights; notice to all patients of their rights.
21 (a) Notwithstanding any other provision of law including but not
22 limited to the election law, no person’s rights as a citizen of the
23 United States or of the state of New York shall be forfeited or abridged
24 because of such person’s participation in chemical dependence programs,
25 treatment facilities or services. Such participation shall include but
26 is not limited to the certification as substance dependent of a person
27 to the care and custody of the office under previously existing
28 provisions of law. The fact, proceedings, application, or treatment
158 13001-04-9
1 relating to a person’s participation in chemical dependence programs,
2 treatment facilities, or services shall not be used against such person
3 in any action or proceeding in any court.
4 (b) Immediately upon the admission of any patient to a chemical
5 dependence program, service, or treatment facility, the director of such
6 program, service, or facility, or his or her designee, shall inform the
7 patient in writing of his or her status, including the section of this
8 chapter under which he or she is admitted, and of his or her rights
9 under this article.
10 (c) The director of every chemical dependence program, service, or
11 treatment facility shall post copies of a notice in a form and manner to
12 be determined by the commissioner, at places throughout the facility or
13 program where such notice shall be conspicuous and visible to all
14 patients, stating the following:
15 1. a general statement of the rights of patients under the various
16 admission or retention provisions of this article; and
17 2. the right of the patient to communicate with the director, the
18 board of visitors, if any, and the commissioner.
19 § 22.05 Patient’s records.
20 (a) After the admission of any patient, the director of a chemical
21 dependence program or treatment facility shall, within five days exclud-
22 ing Sunday and holidays, forward to the office such information from the
23 record in such time and manner as the commissioner shall require by
24 regulation. Such information from the record in the office shall be
25 accessible only in the manner set forth in sections 33.13 and 33.16 of
26 this chapter.
27 (b) All records of identity, diagnosis, prognosis, or treatment in
28 connection with a person’s receipt of chemical dependence services shall
159 13001-04-9
1 be confidential and shall be released only in accordance with applicable
2 provisions of the public health law, any other state law, federal law
3 and court orders.
4 § 22.07 Informal admission.
5 For purposes of this chapter, the director of any chemical dependence
6 program or treatment facility may receive therein as a patient any
7 person found by such director to be suitable for, and in need of, such
8 care and treatment and requesting admission thereto, provided however,
9 that nothing in this section shall be construed to guarantee reimburse-
10 ment for such treatment.
11 (a) Such person may be admitted as a patient without making formal or
12 written application therefor, and any such person shall be discharged
13 from such program or facility upon his or her request at any time after
14 admission, provided, however, that such action may have other legal or
15 fiscal consequences pursuant to other state and federal laws. Minors
16 shall be admitted and discharged in accordance with section 22.11 of
17 this article.
18 (b) Participation in chemical dependence treatment is voluntary. The
19 office or any chemical dependence program or treatment facility shall
20 not force or otherwise coerce any person to participate in such program
21 or treatment. For purposes of this article, "participation in treatment"
22 shall not include receipt of emergency services for incapacitated
23 persons provided in accordance with section 22.09 of this article, and
24 provided further, such term shall not include treatment required by
25 judicial mandate.
26 (c) The commissioner shall promulgate rules and regulations and take
27 any other necessary action to insure that the rights of individuals who
160 13001-04-9
1 have received or are receiving chemical dependence services are
2 protected.
3 § 22.09 Emergency services for persons intoxicated, impaired, or inca-
4 pacitated by alcohol and/or substances.
5 (a) As used in this article:
6 1. "Intoxicated or impaired person" means a person whose mental or
7 physical functioning is substantially impaired as a result of the pres-
8 ence of alcohol and/or substances in his or her body.
9 2. "Incapacitated" means that a person, as a result of the use of
10 alcohol and/or substances, is unconscious or has his or her judgment
11 otherwise so impaired that he or she is incapable of realizing and
12 making a rational decision with respect to his or her need for treat-
13 ment.
14 3. "Likelihood to result in harm" or "likely to result in harm" means
15 (i) a substantial risk of physical harm to the person as manifested by
16 threats of or attempts at suicide or serious bodily harm or other
17 conduct demonstrating that the person is dangerous to himself or
18 herself, or (ii) a substantial risk of physical harm to other persons as
19 manifested by homicidal or other violent behavior by which others are
20 placed in reasonable fear of serious physical harm.
21 4. "Hospital" means a general hospital as defined in article twenty-
22 eight of the public health law.
23 (b) An intoxicated or impaired person may come voluntarily for emer-
24 gency treatment to a chemical dependence program or treatment facility
25 authorized by the commissioner to give such emergency treatment. A
26 person who appears to be intoxicated or impaired and who consents to the
27 proffered help may be assisted by any peace officer acting pursuant to
28 his or her special duties, police officer, or by a designee of the
161 13001-04-9
1 director of community services to return to his or her home, to a chemi-
2 cal dependence program or treatment facility, or to any other facility
3 authorized by the commissioner to give emergency treatment. In such
4 cases, the peace officer, police officer, or designee of the director of
5 community services shall accompany the intoxicated or impaired person
6 until he or she is inside the door of his or her home or the treatment
7 facility or program.
8 (c) A person who appears to be incapacitated by alcohol and/or
9 substances to the degree that there is a likelihood to result in harm to
10 the person or to others may be taken by a peace officer acting pursuant
11 to his or her special duties, or a police officer who is a member of the
12 state police or of an authorized police department or force or of a
13 sheriff’s department or by the director of community services or a
14 person duly designated by him or her to a chemical dependence program or
15 treatment facility, general hospital, or to any other place authorized
16 by the commissioner to give emergency treatment, for immediate observa-
17 tion, care, and emergency treatment. Every reasonable effort shall be
18 made to protect the health and safety of such person, including but not
19 limited to the requirement that the peace officer, police officer, or
20 director of community services or his or her designee shall accompany
21 the apparently incapacitated person until he or she is inside the door
22 of the facility, general hospital, or other authorized place.
23 (d) A person who comes voluntarily or is brought without his or her
24 objection to any such facility or program in accordance with subdivision
25 (c) of this section shall be given emergency care and treatment at such
26 place if found suitable therefor by authorized personnel, or referred to
27 another suitable facility or treatment program for care and treatment,
28 or sent to his or her home.
162 13001-04-9
1 (e) A person who is brought with his or her objection to any facility
2 or treatment program in accordance with subdivision (c) of this section
3 shall be examined as soon as possible by an examining physician. If such
4 examining physician determines that such person is incapacitated by
5 alcohol and/or substances to the degree that there is a likelihood to
6 result in harm to the person or others, he or she may be retained for
7 emergency treatment. If the examining physician determines that such
8 person is not incapacitated by alcohol and/or substances to the degree
9 that there is a likelihood to result in harm to the person or others, he
10 or she must be released. Notwithstanding any other law, in no event may
11 such person be retained against his or her objection beyond whichever is
12 the shorter of the following: (i) the time that he or she is no longer
13 incapacitated by alcohol and/or substances to the degree that there is a
14 likelihood to result in harm to the person or others or (ii) a period
15 longer than forty-eight hours.
16 1. Every reasonable effort must be made to give prompt notification of
17 a person’s retention in a facility or program pursuant to this section
18 to his or her closest relative or friend, and, if requested by such
19 person, to his or her attorney and personal physician.
20 2. A person may not be retained pursuant to this section beyond a
21 period of forty-eight hours without his or her consent. Persons suit-
22 able therefor may be voluntarily admitted to a chemical dependence
23 program or facility pursuant to this article.
24 (f) The commissioner shall promulgate regulations, after consulting
25 with representatives of appropriate law enforcement and chemical depend-
26 ence providers of services, establishing procedures for taking intoxi-
27 cated or impaired persons and persons apparently incapacitated by alco-
28 hol and/or substances to their residences or to appropriate public or
163 13001-04-9
1 private facilities for emergency treatment and for minimizing the role
2 of the police in obtaining treatment of such persons.
3 § 22.11 Treatment of minors.
4 (a) For the purposes of this section, the word "minor" shall mean a
5 person under eighteen years of age, but does not include a person who is
6 the parent of a child or has married or who is emancipated.
7 (b) In treating a minor for chemical dependence on an inpatient, resi-
8 dential, or outpatient basis, the important role of the parents or guar-
9 dians shall be recognized. Steps shall be taken to involve the parents
10 or guardians in the course of treatment, and consent from such a person
11 for inpatient, residential, or outpatient treatment for minors shall be
12 required, except as otherwise provided by subdivision (c) of this
13 section.
14 (c) Minors admitted for inpatient, residential or outpatient treatment
15 without parental or guardian involvement.
16 1. If, in the judgment of a physician, parental or guardian involve-
17 ment and consent would have a detrimental effect on the course of treat-
18 ment of a minor who is voluntarily seeking treatment for chemical
19 dependence or if a parent or guardian refuses to consent to such treat-
20 ment and the physician believes that such treatment is necessary for the
21 best interests of the child, such treatment may be provided to the minor
22 by a licensed physician on an inpatient, residential or outpatient
23 basis, a staff physician in a hospital, or persons operating under their
24 supervision, without the consent or involvement of the parent or guardi-
25 an. Such physician shall fully document the reasons why the requirements
26 of subdivision (b) of this section were dispensed within the minor’s
27 medical record, provided, however, that for providers of services which
28 are not required to include physicians on staff, pursuant to regulations
164 13001-04-9
1 promulgated by the commissioner, a qualified health professional, as
2 defined in such regulations, shall fulfill the role of a physician for
3 purposes of this paragraph.
4 2. If the provider of services cannot locate the parents or guardians
5 of a minor seeking treatment for chemical dependence after employing
6 reasonable measures to do so, or if such parents or guardians refuse or
7 fail to communicate with the provider of services within a reasonable
8 time regarding the minor’s treatment, the program director may authorize
9 that such minor be treated on an inpatient, residential or outpatient
10 basis by the provider of services without the consent or involvement of
11 the parent or guardian. Such program director shall fully document the
12 reasons why the requirements of subdivision (b) of this section were
13 dispensed within the minor’s medical record, including an explanation of
14 all efforts employed to attempt to contact such parents or guardians.
15 3. Admission and discharge for inpatient or residential treatment
16 shall be made in accordance with subdivision (d) of this section.
17 (d) Inpatient or residential treatment. 1. Admission procedures. (i) A
18 copy of the patient’s rights established under this section and under
19 section 22.03 of this article shall be given and explained to the minor
20 and to the minor’s consenting parent or guardian at the time of admis-
21 sion by the director of the facility or such person’s designee.
22 (ii) The minor shall be required to sign a form indicating that the
23 treatment is being voluntarily sought, and that he or she has been
24 advised of his or her ability to access the mental hygiene legal service
25 and of his or her rights under this section and section 22.03 of this
26 article. The signed form shall be included in the minor’s medical
27 record.
165 13001-04-9
1 (iii) At the time of admission, any minor so admitted shall be
2 informed by the director of the facility or the director’s designee,
3 orally and in writing, of the minor’s right to be discharged in accord-
4 ance with the provisions of this section within twenty-four hours of his
5 or her making a request therefor.
6 (iv) Emergency contacts.
7 (A) At the time of admission, the minor’s consenting parent or guardi-
8 an must provide the facility with a telephone number or numbers where he
9 or she may be reached by the facility at any time during the day or
10 night. In addition, such parent or guardian must also provide the facil-
11 ity with a name, address and appropriate telephone number or numbers of
12 an adult designated by such parent or guardian as an emergency contact
13 person in the event the facility is unable to reach such parent or guar-
14 dian.
15 (B) If the minor is admitted in accordance with subdivision (c) of
16 this section, the minor shall provide the name, address, and telephone
17 number of an adult who may serve as an emergency contact, and the facil-
18 ity shall verify the existence and availability of such contact upon
19 notice to and with the prior written consent of the minor.
20 (C) Failure to obtain emergency contacts, after reasonable effort, in
21 accordance with this section shall not preclude admission of the minor
22 to treatment.
23 (v) Notice of admission and discharge procedures.
24 (A) A copy of the facility’s admission and discharge procedures shall
25 be provided to the minor and to the minor’s consenting parent or guardi-
26 an at the time of admission by the director of the facility or such
27 person’s designee. Such information shall also be mailed to the desig-
28 nated emergency contact person by regular mail.
166 13001-04-9
1 (B) If the minor is admitted in accordance with subdivision (c) of
2 this section, a copy of the facility’s admission and discharge proce-
3 dures shall be provided to the minor. Such information shall also be
4 mailed to the designated emergency contact person by regular mail.
5 (vi) Each minor admitted for inpatient or residential chemical depend-
6 ence treatment pursuant to this subdivision shall be provided with writ-
7 ten notice regarding the availability of the mental hygiene legal
8 service for legal counsel, and shall be provided access to the service
9 upon request.
10 2. Discharge procedures. All minors admitted pursuant to this subdivi-
11 sion shall be discharged in accordance with the following:
12 (i) Any minor admitted to an inpatient or residential chemical depend-
13 ence treatment facility has the right to be discharged within twenty-
14 four hours of his or her request in accordance with the provisions of
15 this subdivision.
16 (ii) If discharge is requested prior to completion of a minor’s treat-
17 ment plan, such minor must request discharge in writing.
18 (A) Upon receipt of any form of written request for discharge, the
19 director of the facility in which the minor is admitted shall immediate-
20 ly notify the minor’s parent or guardian. If the facility is unable to
21 contact such parent or guardian within a reasonable time, or if the
22 minor has been admitted pursuant to subdivision (c) of this section, the
23 facility shall notify the designated emergency contact person.
24 (B) The minor shall not be discharged from such facility until it is
25 determined:
26 (1) that the safety and well being of such minor will not be threat-
27 ened or the expiration of twenty-four hours, whichever is sooner; or
167 13001-04-9
1 (2) that the parent, guardian, or designated emergency contact person
2 has made appropriate and timely departure arrangements with the facili-
3 ty. However, unless otherwise directed by the minor’s parent or guardian
4 or designated emergency contact person pursuant to this item, such minor
5 shall be discharged within twenty-four hours after submission of the
6 request.
7 (iii) Writing materials for use in requesting a discharge shall be
8 made available at all times to all minors admitted under this section.
9 The staff of the facility shall assist such minors in preparing or
10 submitting requests for discharge.
11 § 12. Article 23 of the mental hygiene law is REPEALED.
12 § 13. Subdivision (a) of section 25.03 of the mental hygiene law, as
13 amended by chapter 223 of the laws of 1992, is amended to read as
14 follows:
15 (a) In accordance with the provisions of this article, the office may
16 provide financial support to a substance abuse program or a local agency
17 up to one hundred per centum of the operating costs of such program or
18 agency, and either fifty per centum of the capital cost or fifty per
19 centum of the debt service, for approved services by way of advance or
20 reimbursement, through contracts entered into between the office and
21 such program or agency, upon such terms and conditions as the office
22 shall deem appropriate, except as provided in section 25.07 of this
23 article, provided, however, that the office shall provide financial
24 support for approved chemical dependence services, as such term is
25 defined in article twenty-six of this title, in accordance with such
26 article twenty-six of this title.
27 § 14. The mental hygiene law is amended by adding a new article 26 to
28 read as follows:
168 13001-04-9
1 ARTICLE 26
2 FUNDING OF CHEMICAL DEPENDENCE SERVICES
3 Section 26.00 Funding of chemical dependence services.
4 26.01 Financial support and disbursement of funds.
5 § 26.00 Funding of chemical dependence services.
6 (a) This article sets forth provisions enabling the commissioner of
7 the office of alcoholism and substance abuse services to provide finan-
8 cial support for chemical dependence services.
9 (b) For purposes of this article, the term "chemical dependence
10 services" shall mean such term as defined in section 1.03 of this chap-
11 ter, provided, however, that such term shall not mean and include alco-
12 holism services or substance abuse services.
13 § 26.01 Financial support and disbursement of funds.
14 The commissioner of the office of alcoholism and substance abuse
15 services is authorized, within appropriations made therefor and in
16 accordance with this section, to make grants for approved operating
17 costs of a local government unit, substance abuse program, local agency
18 or voluntary agency providing chemical dependence services in accordance
19 with the following provisions:
20 (a) State aid for the approved costs of services for chemical depend-
21 ence services operated in the city of New York or by a local government,
22 substance abuse program, local agency or voluntary agency, including
23 those which had previously operated pursuant to operating certificates
24 or certificates of approval issued pursuant to articles twenty-three and
25 thirty-one of this chapter, shall be provided in an amount equal to the
26 proportion of state aid previously approved by the office of alcoholism
27 and substance abuse services to the combined state aid and local fund-
28 ing, as previously approved by the office of alcoholism and substance
169 13001-04-9
1 abuse services, as existed in the city of New York or county in which
2 such services had operated in the state fiscal year beginning the first
3 of April, nineteen hundred ninety-eight.
4 (b) State aid for approved costs for an expansion by a local govern-
5 ment, substance abuse program, local agency or voluntary agency of chem-
6 ical dependence services which operated prior to the first day of April,
7 nineteen hundred ninety-nine, including those which operated pursuant to
8 operating certificates or certificates of approval issued pursuant to
9 articles twenty-three and/or thirty-one of this chapter, shall be grant-
10 ed in an amount not to exceed the proportion of state aid previously
11 approved by the office of alcoholism and substance abuse services to the
12 combined state aid and local funding, as previously approved by the
13 office of alcoholism and substance abuse services, as existed throughout
14 the state in the state fiscal year beginning the first of April, nine-
15 teen hundred ninety-eight.
16 (c) State aid for the approved costs of a local government, substance
17 abuse program, local agency or voluntary agency for the provision of new
18 chemical dependence services, including services provided by those local
19 governments, substance abuse programs, local agencies and voluntary
20 agencies which are issued operating certificates on or after the first
21 day of April, nineteen hundred ninety-nine pursuant to article thirty-
22 two of this chapter, which were not operating prior to the first day of
23 April, nineteen hundred ninety-nine, shall be provided in an amount not
24 to exceed the proportion of state aid previously approved by the office
25 of alcoholism and substance abuse services to the combined state aid and
26 local funding, as previously approved by the office of alcoholism and
27 substance abuse services, as existed throughout the state in the state
28 fiscal year beginning the first of April, nineteen hundred ninety-eight.
170 13001-04-9
1 (d) Notwithstanding the provisions of paragraphs (a), (b) and (c) of
2 this section and within amounts available therefor and in accordance
3 with regulations promulgated thereby, the commissioner of the office of
4 alcoholism and substance abuse services may provide state aid at a rate
5 of up to one hundred percent of the approved costs expended by a local
6 government, substance abuse program, local agency or voluntary agency of
7 chemical dependence services determined to be necessary to serve the
8 public interest.
9 (e) Within amounts available therefor, the commissioner may provide
10 state aid to a local government, substance abuse program, local agency
11 or voluntary agency for capital costs of chemical dependence services at
12 the rate of up to one hundred percent of such capital costs, provided,
13 however, that no state aid shall be granted unless the recipient enters
14 into an agreement in a form acceptable to the commissioner ensuring that
15 the facility at which the services for chemical dependence are to be
16 provided will be operated by the recipient or made available at no cost
17 to another provider of services, or the office of alcoholism and
18 substance abuse services, in accordance with regulations promulgated by
19 the commissioner, and further grants the state such security and real
20 property interests as the commissioner may require in such regulations.
21 § 15. Section 31.15 of the mental hygiene law is REPEALED.
22 § 16. Subdivision (d) of section 31.23 of the mental hygiene law is
23 REPEALED.
24 § 17. Section 31.24 of the mental hygiene law is REPEALED.
25 § 18. The mental hygiene law is amended by adding a new article 32 to
26 read as follows:
27 ARTICLE 32
28 REGULATION AND QUALITY CONTROL OF CHEMICAL DEPENDENCE SERVICES
171 13001-04-9
1 Section 32.01 Regulation and quality control of chemical dependence
2 services.
3 32.03 Evaluation of chemical dependence services.
4 32.05 Operating certificate required.
5 32.07 Regulatory powers of the commissioner.
6 32.09 Issuance of operating certificates.
7 32.11 Child abuse prevention.
8 32.13 Investigations and inspections.
9 32.15 Powers of the office regarding investigation and
10 inspection.
11 32.17 Certain duties of providers of services.
12 32.19 Powers of subpoena and examination.
13 32.21 Suspension, revocation, or limitation of operating certif-
14 icates and imposition of fines.
15 32.23 Formal hearings; procedure.
16 32.25 Confinement, care, and treatment of persons suffering from
17 chemical abuse or dependence.
18 32.27 Injunction and temporary restraining order.
19 32.29 Approval of new construction.
20 32.31 Establishment or incorporation of facilities for chemical
21 dependence services.
22 32.33 Improper expenditures of money.
23 32.35 Disclosure by members, officers and employees.
24 32.37 Registration and notification of boards of directors or
25 trustees of certain voluntary not-for-profit facilities
26 or corporations.
27 32.39 Fiscal year report.
28 § 32.01 Regulation and quality control of chemical dependence services.
172 13001-04-9
1 This article sets forth provisions enabling the commissioner to regu-
2 late and assure the consistent high quality of services provided within
3 the state to persons suffering from chemical abuse or dependence, their
4 families and significant others, and/or those who are at risk of becom-
5 ing chemical abusers. The commissioner may adopt and promulgate any
6 regulation reasonably necessary to implement and effectively exercise
7 the powers and perform the duties conferred by this article. This arti-
8 cle shall govern the operation of programs, provision of services and
9 the facilities hereinafter described and the commissioner’s powers and
10 authority with respect thereto, and shall supersede, as to such matters,
11 sections of article twenty-three and thirty-one of this chapter that are
12 inconsistent with the provisions of this chapter. Valid certificates of
13 approval and operating certificates previously issued under article
14 twenty-three of this chapter or article thirty-one of this title shall
15 remain in full force and effect but shall be subject to conversion upon
16 subsequent review. Valid operating certificates previously issued under
17 section 19.40 of this chapter shall remain in full force and effect and
18 shall be deemed to be operating certificates issued under this article
19 and will be converted to such operating certificates upon subsequent
20 review. For purposes of this article, the term "commissioner" means the
21 commissioner of the office of alcoholism and substance abuse services.
22 § 32.03 Evaluation of chemical dependence services.
23 (a) The commissioner shall ensure that all services provided under
24 this chapter for persons who abuse and/or are dependent on alcohol
25 and/or substances are periodically evaluated.
26 (b) The commissioner shall, by regulations, establish and maintain
27 evaluation criteria and methods which assure the utility of data gener-
28 ated in the evaluation of services in different areas of the state
173 13001-04-9
1 provided under this chapter for those persons who abuse or are dependent
2 on alcohol and/or substances, including, but not limited to:
3 1. Uniform definitions of services to persons who abuse and/or are
4 dependent on alcohol and/or substances;
5 2. Uniform objectives for all comparable services and programs;
6 3. Uniform definitions of screening, assessment, evaluation, level of
7 care determination, admission and discharge for comparable providers of
8 services;
9 4. Uniform clinical reporting procedures; and
10 5. Uniform requirements for the generation and maintenance of data for
11 all individuals receiving services from any provider of services issued
12 an operating certificate under this article.
13 § 32.05 Operating certificate required.
14 (a) Except as provided in subdivision (b) of this section no provider
15 of services shall engage in any of the following activities without an
16 operating certificate issued by the commissioner pursuant to this arti-
17 cle:
18 1. operation of a residential program, including a community residence
19 for the care, custody, or treatment of persons suffering from chemical
20 abuse or dependence; provided, however, that giving domestic care and
21 comfort to a person in the home shall not constitute such an operation;
22 2. operation of a discrete unit of a hospital or other facility
23 possessing an operating certificate pursuant to article twenty-eight of
24 the public health law for the purpose of providing residential or non-
25 residential services for persons suffering from chemical abuse or
26 dependence; or
27 3. operation of a program established or maintained by a provider of
28 services for the rendition of out-patient or non-residential services
174 13001-04-9
1 for persons suffering from chemical abuse or dependence; provided,
2 however, that such operation shall not be deemed to include (i) profes-
3 sional practice, within the scope of a professional license or certif-
4 icate issued by an agency of the state, by an appropriately licensed
5 individual or by a partnership of such individuals, or by a professional
6 service corporation duly incorporated pursuant to the business corpo-
7 ration law wherein all professionals bear the same professional license,
8 or a university faculty practice corporation duly incorporated pursuant
9 to the not-for-profit corporation law, unless more than fifty percent of
10 such practice by either such corporation consists of the rendering of
11 chemical dependence services; or (ii) non-residential services which
12 are chartered or issued a certificate of incorporation pursuant to the
13 education law; or (iii) pastoral counseling by a clergyman or minister,
14 including those defined as clergyman or minister by section two of the
15 religious corporations law; or (iv) services which are exclusively
16 prevention strategies and approaches as defined in section 1.03 of this
17 chapter.
18 (b) Individual physicians, groups of physicians and public or private
19 medical facilities certified pursuant to article twenty-eight or thir-
20 ty-three of the public health law may prescribe, administer and dispense
21 controlled substances to addicts only as part of a methadone maintenance
22 treatment program which has been issued an operating certificate by the
23 commissioner pursuant to subdivision (b) of section 32.09 of this arti-
24 cle.
25 (c) No individual, partnership, association, corporation, limited
26 liability company or partnership, public or private agency or any part
27 thereof shall adopt a corporate name or hold itself out to the public in
28 a manner which indicates, directly or indirectly, the availability of
175 13001-04-9
1 treatment, programs, or services for persons suffering from chemical
2 abuse or dependence unless it has obtained an operating certificate from
3 the commissioner in accordance with the provisions of this article.
4 (d) The operation of a program for which an operating certificate is
5 required shall be in accordance with the terms of the operating certif-
6 icate and regulations of the commissioner.
7 (e) Any individual, partnership, association, corporation, limited
8 liability company or partnership, public or private agency or any part
9 thereof who knowingly fails to comply with the provisions of this
10 section shall be guilty of a misdemeanor as defined in the penal law.
11 (f) If the commissioner has reason to believe that there is an indi-
12 vidual, partnership, association, corporation, limited liability company
13 or partnership, public or private agency or any part thereof which is
14 providing chemical dependence services or which purports to provide such
15 services and which does not possess a required current valid operating
16 certificate, he or she shall proceed pursuant to applicable sections of
17 this chapter including but not limited to sections 32.13, 32.15, 32.19
18 and 32.27 of this article.
19 § 32.07 Regulatory powers of the commissioner.
20 (a) The commissioner shall have the power to adopt regulations to
21 effectuate the provisions and purposes of this article, including, but
22 not limited to, the following:
23 1. establishing classes of operating certificates based upon such
24 factors as physical plant, program, and staff;
25 2. specifying a definite period for which the operating certificate
26 will be in effect;
27 3. prescribing standards of quality and adequacy of chemical depend-
28 ence services rendered pursuant to an operating certificate including
176 13001-04-9
1 but not limited to, qualifications for persons providing such services
2 including moral character, competence and standing in the community,
3 record-keeping requirements, reporting requirements, fiscal responsibil-
4 ity, public need, adequacy and quality of services, and such other
5 matters of public interest as the office shall deem appropriate;
6 4. providing for ongoing compliance by providers of chemical depend-
7 ence services with office rules and regulations, including procedures
8 for the limitation or revocation of any previously granted approval.
9 (b) Nothing herein shall affect the powers and duties of other state
10 agencies to carry out their responsibilities and functions pursuant to
11 the requirements of applicable laws.
12 § 32.09 Issuance of operating certificates.
13 (a) No operating certificate shall be issued by the commissioner
14 unless the commissioner is satisfied as to:
15 1. the public need for the chemical dependence services to be estab-
16 lished upon the issuance of the operating certificate, taking into
17 consideration local, regional, and statewide need; and
18 2. the character, competence and standing in the community of the
19 person or entity responsible for operating the facility;
20 3. the overall financial condition of applicants, through review of
21 audited financial statements, taking into consideration financial
22 resources of the proposed facility and its sources of future revenues;
23 4. the adequacy of the premises, equipment, personnel, records, and
24 program to provide the services which would be authorized by the operat-
25 ing certificate;
26 5. that such services will be provided in compliance with applicable
27 law and regulations;
177 13001-04-9
1 6. that the provider of services will provide patients with continuity
2 of care consistent with treatment and discharge plans; and
3 7. such other matters as the commissioner shall deem pertinent and in
4 the public interest.
5 (b) In addition to the provisions of subdivision (a) of this section,
6 no operating certificate shall be issued by the commissioner to author-
7 ize the administration and dispensing of methadone by certain physicians
8 and/or medical facilities as identified in subdivision (b) of section
9 32.05 of this article unless such commissioner is satisfied that:
10 1. the applicant is ready, willing and able to properly carry on a
11 maintenance program;
12 2. the applicant will be able to maintain effective control against
13 diversion of controlled substances;
14 3. it is in the public interest that such certification be granted;
15 4. the applicant is able to comply with all applicable state and
16 federal laws; and
17 5. the applicant will establish procedures to effectively implement a
18 detoxification program to further relieve addicts from dependence upon
19 methadone or such other controlled substances prescribed for treatment
20 in subject maintenance programs.
21 (c) Operating certificates shall be valid for up to a three-year peri-
22 od as shall be expressly provided upon such certificate or renewal ther-
23 eof.
24 (d) The commissioner shall specify on each operating certificate the
25 kind or kinds of services authorized, any limitations or conditions of
26 the certificate, and the expiration date of the certificate.
27 (e) Notwithstanding the provisions of subdivision (a) of this section,
28 the commissioner shall have the authority to grant temporary approval of
178 13001-04-9
1 an operating certificate for a period not to exceed one hundred twenty
2 days, in the event of a threat or imminent threat of a catastrophic or
3 emergency loss of available services. Such temporary approval may be
4 extended beyond one hundred twenty days as deemed necessary by the
5 commissioner, but not to exceed more than an additional one hundred
6 twenty days.
7 (f) The commissioner may disapprove an application for an operating
8 certificate, may authorize fewer services than applied for, and may
9 place limitations and conditions on the operating certificate he or she
10 determines to be reasonable and necessary, including, but not limited to
11 compliance with a time limited plan of correction of any deficiency
12 which does not threaten the health or well being of any patient. In such
13 cases the applicant shall be given an opportunity to be heard at a
14 public hearing, if requested by the applicant.
15 (g) All operating certificates shall remain the property of the office
16 and must be returned to the office upon revocation or expiration there-
17 of, or upon the demand of the commissioner. Operating certificates are
18 not transferable.
19 § 32.11 Child abuse prevention.
20 All providers of services described in subdivision (a) of section
21 32.05 of this article, shall:
22 (a) develop, maintain and disseminate written policies and procedures
23 pursuant to title six of article six of the social services law and
24 applicable provisions of article ten of the family court act, regarding
25 the mandatory reporting of child abuse or neglect, reporting procedures
26 and obligations of persons required to report, provisions for taking a
27 child into protective custody, mandatory reporting of deaths, immunity
28 from liability, penalties for failure to report, and obligations for the
179 13001-04-9
1 provision of services and procedures necessary to safeguard the life or
2 health of the child; and
3 (b) establish, and implement on an ongoing basis, a training program
4 for all current and new employees regarding the policies and procedures
5 established pursuant to this section.
6 § 32.13 Investigations and inspections.
7 The commissioner shall have the power to conduct investigations into
8 the operations of providers of services which are required by this arti-
9 cle to have operating certificates and to make inspections and examine
10 records, including, but not limited to, clinical and medical service and
11 financial records of facilities to determine whether such providers of
12 services are complying with the provisions of this chapter and applica-
13 ble laws, rules, and regulations. Inspections shall be made as frequent-
14 ly as the commissioner may deem necessary, but in any event such
15 inspections shall be made on at least two occasions during each calendar
16 year, one of which shall be without prior notice, for providers of
17 services which have been issued operating certificates of one year’s
18 duration or longer; and at least once during the term of the operating
19 certificate for providers of services which have been issued operating
20 certificates of less than a year’s duration; and provided, further, that
21 where, in the discretion of the commissioner, an operating certificate
22 of more than one year’s duration has been issued to a provider of
23 services with a history of compliance and a record of providing a high
24 quality of care, the periodic inspection and visitation required by this
25 section shall be made at least once during each calendar year, provided
26 such visits shall be without prior notice.
27 § 32.15 Powers of the office regarding investigation and inspection.
180 13001-04-9
1 (a) In conducting an investigation or inspection, the commissioner or
2 his or her authorized representative shall have the power to inspect
3 facilities, examine records, conduct examinations and interviews, and
4 obtain such other information as may be required in order to carry out
5 his or her responsibilities under this article.
6 (b) All investigations and inspections of clinical records shall be
7 made by persons competent to conduct such investigations and
8 inspections. Information obtained by the commissioner from the records
9 of patients receiving services shall be kept confidential in accordance
10 with applicable federal and state confidentiality laws and regulations.
11 § 32.17 Certain duties of providers of services.
12 It shall be the duty of every holder of an operating certificate to
13 assist both the office and the commission on quality of care for the
14 mentally disabled in carrying out their respective and joint regulatory
15 functions by:
16 (a) complying with the provisions of this chapter, other applicable
17 federal, state, and local laws, rules, and regulations, and the regu-
18 lations of the commissioner.
19 (b) consistent with federal and state confidentiality laws and regu-
20 lations, making such reports as are required by the office as well as
21 those necessary to provide notification to the district attorney or
22 other appropriate law enforcement official and the commissioner or his
23 or her authorized representative as soon as possible, or in any event
24 within three working days, if it appears that a crime may have been
25 committed against a patient receiving services from such provider,
26 and/or if a crime may have been committed against any person on such
27 provider’s premises, and making such other reports, uniform and other-
28 wise, as are required by the commissioner or his or her authorized
181 13001-04-9
1 representative with respect to its operations. Information obtained by
2 the commissioner from the records of patients receiving services shall
3 be kept confidential in accordance with applicable federal and state
4 confidentiality laws and regulations.
5 (c) cooperating with the commissioner or his or her authorized repre-
6 sentative and the commission on quality of care for the mentally disa-
7 bled or any representative authorized by the chairperson of such commis-
8 sion in any investigation or inspection conducted by the department or
9 commission on quality of care for the mentally disabled.
10 (d) permitting the commissioner or his or her authorized represen-
11 tative and the commission on quality of care for the mentally disabled
12 or any representative authorized by the chairperson of such commission
13 to inspect its facility and all books and records, including patient
14 records, kept by it and to interview and examine any patient at its
15 facility except that no patient may be examined against his or her will.
16 § 32.19 Powers of subpoena and examination.
17 In conducting any investigation, inspection, or hearing under this
18 chapter, the commissioner and his or her authorized representative are
19 empowered to subpoena witnesses, compel their attendance, administer
20 oaths to witnesses, examine witnesses under oath, and require the
21 production of any books or papers deemed relevant to the investigation,
22 inspection, or hearing. A subpoena issued under this section shall be
23 regulated by the civil practice law and rules. The confidentiality of
24 information obtained by the commissioner from patient’s records shall be
25 maintained in accordance with applicable federal and state confidential-
26 ity laws and regulations.
27 § 32.21 Suspension, revocation, or limitation of operating certificates
28 and imposition of fines.
182 13001-04-9
1 (a) The commissioner may revoke, suspend, or limit an operating
2 certificate upon a determination that the holder of the certificate has
3 failed to comply with the terms of its operating certificate or with the
4 provisions of any applicable statute, rule, or regulation. The holder of
5 the certificate shall be given notice and an opportunity to be heard
6 prior to any such determination.
7 (b) The commissioner may impose a fine of up to one thousand dollars
8 upon a finding that the holder of the certificate has failed to comply
9 with the terms of its operating certificate or with the provisions of
10 any applicable statute, rule or regulations.
11 (c) The penalty provided for in subdivision (b) of this section may be
12 recovered by an action brought by the commissioner in any court of
13 competent jurisdiction.
14 (d) Such penalty may be released or compromised by the commissioner
15 before the matter has been referred to the attorney general, and where
16 such matter has been referred to the attorney general, any such penalty
17 may be released or compromised and any action commenced to recover the
18 same may be settled or discontinued by the attorney general with the
19 consent of the commissioner.
20 (e) It shall be the duty of the attorney general upon the request of
21 the commissioner to bring an action for an injunction against any person
22 who violates, disobeys or disregards any term or provision of this chap-
23 ter or of any lawful notice, order or regulation pursuant thereto;
24 provided, however, that the commissioner shall furnish the attorney
25 general with such material, evidentiary matter or proof as may be
26 requested by the attorney general for the prosecution of such an action.
27 (f) Pending a determination pursuant to the foregoing subdivisions,
28 the commissioner may, upon written notice to the holder thereof, suspend
183 13001-04-9
1 an operating certificate for not more than thirty days if he or she has
2 reasonable grounds for finding that the continued operation of the
3 facility presents an immediate danger to the health and welfare of the
4 public or of any of the persons receiving the services.
5 (g) The commissioner shall promulgate rules and regulations establish-
6 ing procedures for the imposition of fines, and suspension, revocation
7 or limitation of operating certificates.
8 § 32.23 Formal hearings; procedure.
9 (a) Unless otherwise provided by law, when a hearing must be afforded
10 pursuant to this article, the hearing shall be held without undue delay
11 and all parties shall be given reasonable notice of the time, place, and
12 nature of the hearing.
13 (b) The commissioner, acting as hearing officer, or any person desig-
14 nated by him or her as hearing officer shall have power to:
15 1. administer oaths and affirmations;
16 2. issue subpoenas, which shall be regulated by the civil practice law
17 and rules;
18 3. take testimony; and
19 4. control the conduct of the hearing.
20 (c) The rules of evidence observed by the courts need not be observed
21 except that the rules of privilege and confidentiality recognized by law
22 shall be respected. Irrelevant or unduly repetitious evidence may be
23 excluded.
24 (d) All parties shall have the right to counsel and be afforded an
25 opportunity to present evidence and cross-examine adverse witnesses.
26 (e) If evidence at the hearing relates to the identity, condition, or
27 clinical record of a patient, the hearing officer may exclude all
28 persons from the room except parties to the proceeding, their counsel
184 13001-04-9
1 and the witnesses. The record of such proceeding shall not be available
2 to anyone outside the office other than a party to the proceeding or his
3 or her counsel, except by order of a court of record.
4 (f) If a hearing officer has been designated, within twenty days of
5 receipt of the stenographic transcript or the date fixed for submission
6 of written memoranda, whichever is later, the hearing officer shall
7 submit a final report of findings and a proposed order to the commis-
8 sioner, along with the entire record of the hearing.
9 (g) The commissioner shall issue a determination within ten business
10 days after the termination of the hearing or, if a hearing officer has
11 submitted a report in accordance with subdivision (f) of this section,
12 within ten business days from receipt of such officer’s report.
13 (h) The commissioner may establish regulations to govern the hearing
14 procedure and the process of determination of the proceeding.
15 § 32.25 Confinement, care, and treatment of persons suffering from chem-
16 ical abuse or dependence.
17 (a) No individual who is or appears to be suffering from chemical
18 abuse or dependence shall be detained, deprived of his or her liberty,
19 or otherwise confined without lawful authority, or be inadequately,
20 unskillfully, cruelly, or unsafely cared for or supervised by any
21 person.
22 (b) If the commissioner has reason to believe that this section is
23 being violated or that services for persons suffering from chemical
24 abuse or dependence or who are at risk of becoming alcohol or substance
25 abusers are being provided in violation of this article, he or she shall
26 promptly investigate the matter. If he or she finds, after notice to the
27 person accused of the violation that there is substantial evidence to
28 support the finding that there has been a violation, the commissioner
185 13001-04-9
1 shall issue an order directed to the person or entity who has committed
2 the violation directing him or her to cease and desist from the
3 violation.
4 (c) The commissioner may bring the following proceedings in the
5 supreme court, in accordance with the provisions of section 32.27 of
6 this article:
7 1. for an injunction where the person to whom a cease and desist order
8 is directed has failed to comply therewith; and
9 2. for a temporary restraining order where the commissioner has reason
10 to believe that a violation of this section may result in injury to any
11 person.
12 (d) Nothing in this section shall prevent the commissioner from taking
13 whatever action he or she deems necessary for the suspension, revoca-
14 tion, or limitation of the operating certificate of a provider of
15 services which has been charged with a violation of this section.
16 § 32.27 Injunction and temporary restraining order.
17 (a) The supreme court may enjoin violations or threatened violations
18 of any provision of this article or violations of the regulations of the
19 office established pursuant to this article. Upon request of the commis-
20 sioner, the attorney general may maintain a proceeding in the supreme
21 court in the name of the people of the state to enjoin any such
22 violation, provided that notice of such violation or threatened
23 violation and proposed referral to the attorney general has been given
24 to the violator by mailing notice thereof to the last known address of
25 the violator by registered mail.
26 (b) If the proceeding is for the enforcement of a cease and desist
27 order issued after notice and hearing pursuant to the provisions of
186 13001-04-9
1 section 32.23 of this article, the facts found by the commissioner shall
2 be conclusive if supported by substantial evidence.
3 (c) Notwithstanding any limitation in the civil practice law and
4 rules, such court may, on motion and affidavit, and upon proof that such
5 violation is one which reasonably may result in injury to any person,
6 whether or not such person is a party to such action, grant a temporary
7 restraining order upon such terms as may be just, pending the determi-
8 nation of the proceeding. No security on the part of the state shall be
9 required.
10 § 32.29 Approval of new construction.
11 (a) As used or referred to in this section, unless a different meaning
12 clearly appears from the context:
13 1. "Facility" is limited to a facility in which services are offered
14 for which an operating certificate is required by this article.
15 2. "Construction" means the erection, building, or substantial acqui-
16 sition, alteration, reconstruction, improvement, extension or modifica-
17 tion of a facility, including its equipment, the inspection and super-
18 vision thereof; and the studies, surveys, designs, plans, working
19 drawings, specifications, procedures, and other actions necessary there-
20 to.
21 (b) The construction of a facility for which an operating certificate
22 issued by the commissioner is required pursuant to this article shall
23 require the prior approval of such commissioner if the provider of
24 services seeking to engage in such construction receives funding from
25 the office of alcoholism and substance abuse services pursuant to this
26 chapter and/or seeks a funding source for such construction project
27 other than from the mental health services facilities improvement
187 13001-04-9
1 program, or its successor agency, directly or indirectly through a
2 closely related entity.
3 1. An application for such construction together with such other forms
4 and information as shall be prescribed, shall be submitted to the office
5 of alcoholism and substance abuse services.
6 2. The office shall forward a copy of the application for approval of
7 the proposed construction, and any accompanying documents, to the local
8 governmental unit responsible for community services for the mentally
9 disabled where the facility is to be located. The local governmental
10 unit shall report its recommendations on the proposed construction with-
11 in a reasonable time.
12 3. Upon receipt of the recommendations of the local governmental unit,
13 or upon the lapse of a reasonable time for comment by the local govern-
14 mental unit, the commissioner shall submit the application for facili-
15 ties other than community residences along with the recommendations of
16 the local governmental unit to the advisory council on alcoholism and
17 substance abuse services for its review and recommendation. The commis-
18 sioner shall not act upon an application for construction of a facility
19 other than a community residence without having first given the advisory
20 council on alcoholism and substance abuse services a reasonable opportu-
21 nity to make its recommendation on the application, provided however,
22 that the commissioner may act upon an application for construction by an
23 applicant possessing a valid operating certificate when the applicant
24 qualifies for review without the recommendation of the council pursuant
25 to regulations adopted by the commissioner with the advice of the coun-
26 cil in accordance with the procedures noted in section 19.05 of this
27 chapter.
188 13001-04-9
1 (c) The commissioner shall not act upon an application for
2 construction of a facility unless the applicant has obtained all
3 approvals and consents required by law for its incorporation or estab-
4 lishment. The commissioner, in approving the construction of a facility,
5 shall take into consideration and is empowered to request information
6 and advice from all available sources including local and area mental
7 hygiene and health planning agencies and groups and shall not grant
8 approval of an application for construction unless, based on the infor-
9 mation and advice received and his or her own review he or she is satis-
10 fied as to (i) the public need for the facility or the services at the
11 time and place and under the circumstances proposed, taking into consid-
12 eration local, regional, and statewide need; (ii) the absence of avail-
13 ability and feasibility for development of facilities or services which
14 may serve as alternatives or substitutes for the whole or any part of
15 the proposed construction; (iii) the overall financial condition of the
16 applicant, through review of audited financial statements, taking into
17 consideration the adequacy of financial resources and sources of future
18 revenue; (iv) the absence of more efficient architectural solutions to
19 construction proposed; and (v) the sufficiency of such other matters as
20 he or she may deem pertinent in the public interest.
21 (d) If the commissioner proposes to disapprove an application for
22 construction of a facility, he or she shall afford the applicant an
23 opportunity to be heard in accordance with subdivision (e) of this
24 section. The commissioner shall not take any action contrary to the
25 recommendation of the advisory council on alcoholism and substance abuse
26 services, unless he or she first appears before the council and explains
27 his or her reasons therefor. The commissioner shall not take any action
28 contrary to the advice of the local governmental unit for facilities
189 13001-04-9
1 other than community residences until he or she affords an opportunity
2 to the local governmental unit to request a public hearing and if so
3 requested, a public hearing shall be held in accordance with subdivision
4 (e) of this section. The commissioner, on his or her own motion, may
5 hold a hearing on an application for construction of a facility.
6 (e) At the public hearing the commissioner shall outline all perti-
7 nent matters regarding the application. Thereafter, any person in
8 attendance shall be given a reasonable opportunity to present an oral or
9 written statement and to submit other documents concerning the applica-
10 tion for construction. A record of the hearing shall be kept, including
11 written statements submitted. Copies of such record shall be available
12 to the public for examination without cost during normal business hours
13 at the office of alcoholism and substance abuse’s central office. Copies
14 shall be reproduced upon written request and payment of the cost there-
15 of. Further adjourned hearings may be scheduled.
16 (f) Nothing in this section shall limit the application of provisions
17 of article twenty-eight of the public health law.
18 § 32.31 Establishment or incorporation of facilities for chemical
19 dependence services.
20 (a) No provider of services or facility providing chemical dependence
21 services shall be established except with the written approval of the
22 commissioner. No certificate of incorporation of a business, membership
23 or not-for-profit corporation shall hereafter be filed which includes
24 among its corporate purposes or powers the establishment or operation of
25 a facility providing chemical dependence services or the solicitation of
26 contributions for any such purpose, or two or more of such purposes,
27 except with the written approval of the commissioner and, when otherwise
190 13001-04-9
1 required by law, the approval of a justice of the supreme court endorsed
2 on or annexed to the certificate of incorporation.
3 (b) With respect to the incorporation or establishment of a provider
4 or facility providing chemical dependence services, the commissioner
5 shall give written approval after all of the following requirements have
6 been met:
7 1. An application for approval of the proposed certificate of incorpo-
8 ration shall be filed with the commissioner together with such other
9 forms and information as shall be prescribed by, or acceptable to, him
10 or her. Thereafter, the commissioner shall forward a copy of the
11 proposed certificate and application for establishment and accompanying
12 documents, to the local governmental unit of the area in which such
13 facility is to be located. The commissioner shall not act upon such
14 application until the local governmental unit has had a reasonable time
15 to submit their recommendations.
16 2. Upon receipt of the recommendations of the local governmental unit,
17 or the lapse of a reasonable time for comment,the commissioner shall
18 submit the application along with the recommendations of the local
19 governmental unit to the advisory council on alcoholism and substance
20 abuse services for its review and recommendation. The commissioner shall
21 not act upon an application for establishment of a facility without
22 having first given such advisory council a reasonable opportunity to
23 make its recommendation on the application.
24 3. The commissioner shall not take any action contrary to the recom-
25 mendation of the council unless he or she first appears before the coun-
26 cil and explains his or her reasons therefor. The commissioner shall not
27 take any action contrary to the advice of the local governmental unit
28 until he or she affords, to such entity, an opportunity to request a
191 13001-04-9
1 public hearing and if so requested, a public hearing shall be held in
2 accordance with subdivision (e) of section 32.29 of this article. If the
3 commissioner proposes to disapprove the application he or she shall
4 afford the applicant an opportunity to request a public hearing in
5 accordance with subdivision (e) of section 32.29 of this article. The
6 commissioner may hold such a public hearing on the application on his or
7 her own motion. Any public hearing held pursuant to this subdivision may
8 be conducted by the commissioner or by any individual designated by the
9 commissioner.
10 (c) The commissioner shall not approve a certificate of incorporation
11 or application for establishment unless the provisions of subdivision
12 (a) of section 32.09 of this article have been met and that the commis-
13 sioner is satisfied, insofar as applicable, as to:
14 1. the public need for the existence of the facility at the time and
15 place and under the circumstances proposed taking into consideration
16 local, regional, and statewide need;
17 2. the absence of availability and feasibility of development of
18 facilities or services which may serve as alternatives or substitutes
19 for the whole or any part of the proposed facility;
20 3. the character, competence and standing in the community of the
21 proposed incorporators, directors, partners, sponsors, stockholders or
22 operators; considering, with respect to any proposed incorporator,
23 director, partner, sponsor, stockholder or operator who is already or
24 within the past ten years has been an incorporator, director, partner,
25 sponsor, stockholder or operator of any hospital, private proprietary
26 home for adults, residence for adults, or not-for-profit home for the
27 aged or blind which has been issued an operating certificate by the
28 office of children and family services or a halfway house, hostel or
192 13001-04-9
1 other facility institution for the care, custody or treatment of the
2 mentally disabled which is subject to approval by an office of the
3 department, the level of care being or having been rendered in each such
4 hospital, home, residence, halfway house, hostel, or other residential
5 facility or institution with which such person is or was affiliated;
6 4. the overall financial condition of the applicant, through review of
7 audited financial statements, taking into consideration the financial
8 resources of the proposed facility and of its sources of future reven-
9 ues; and
10 5. the sufficiency of such other matters as he or she shall deem in
11 the public interest.
12 (d) 1. Any change in the person who or partnership which is the
13 provider of services shall be approved by the commissioner in accordance
14 with the provisions of this subdivision and subdivisions (a) through (c)
15 of this section.
16 2. Any transfer, assignment or other disposition of ten percent or
17 more of the stock or voting rights thereunder of a corporation which is
18 the provider of services providing chemical dependence services or any
19 transfer, assignment or other disposition of the stock or voting rights
20 thereunder of such a corporation which results in the ownership or
21 control of more than ten percent of the stock or voting rights there-
22 under of such corporation by any person shall be subject to approval by
23 the commissioner in accordance with the provisions of this subdivision
24 and subdivisions (a) through (c) of this section and rules and regu-
25 lations promulgated pursuant thereto. In the absence of such approval,
26 the operating certificate of such facility shall be subject to revoca-
27 tion or suspension.
193 13001-04-9
1 3. No facility shall be approved for establishment which would be
2 operated by a partnership any of the members of which are not natural
3 persons.
4 4. No facility shall be approved for establishment which would be
5 operated by a corporation any of the stock of which is owned by another
6 corporation.
7 5. No corporation having power to solicit contributions for charitable
8 purposes shall be deemed to have authority to solicit contributions for
9 any purposes for which the approval of the commissioner is required,
10 unless the certificate of incorporation specifically makes provisions
11 therefor, and the written approval of the commissioner is endorsed on or
12 annexed to such certificate. Where such approval has not been obtained
13 the commissioner may institute and maintain an action in the supreme
14 court through the attorney general to procure a judgment dissolving and
15 vacating or annulling the certificate of incorporation of any such
16 corporation.
17 6. Only a natural person or a partnership existing under the partner-
18 ship law may hereafter undertake to engage in the business of operating
19 or conducting a facility providing chemical dependence services for
20 profit, except that: (i) a person, partnership or corporation which
21 owned and was operating such a facility on July first, nineteen hundred
22 eighty-three may continue to own and operate such facility; (ii) a busi-
23 ness corporation organized pursuant to the business corporation law may,
24 with the approval of the commissioner and in accordance with the
25 provisions of this section, undertake to engage in the business of oper-
26 ating or conducting such a facility provided that such corporation shall
27 not discriminate because of race, color, creed, national origin or spon-
28 sor in admission or retention of patients; (iii) any person who, or a
194 13001-04-9
1 partnership which, is operating a private proprietary facility in
2 accordance with applicable provisions of law may, with the approval of
3 the commissioner, and in accordance with the provisions of this section
4 and any rules and regulations thereunder, form a business corporation to
5 engage in the business of operating or conducting such facility,
6 provided, however, that such corporation shall not discriminate because
7 of race, color, creed, national origin or sponsor in admission or
8 retention of patients.
9 (e) The commissioner shall adopt and amend rules and regulations to
10 effectuate the provisions and purposes of this section, and to provide
11 for the revocation, limitation or annulment of approvals of establish-
12 ment or incorporations.
13 (f) Where the approval required by subdivision (a) of this section has
14 not been obtained, the commissioner may institute and maintain an action
15 in the supreme court through the attorney general to procure a judgment
16 dissolving and vacating or annulling:
17 1. the certificate of incorporation of any such corporation, or
18 2. the certificate of incorporation of any corporation hereafter
19 incorporated, the name, purposes, objectives, or activities of which in
20 any manner may reasonably lead to the belief that the corporation
21 possesses or may exercise any of such purposes.
22 § 32.33 Improper expenditures of money.
23 Improper expenditures of money shall include, but not be limited to,
24 the following:
25 (a) No provider of services issued an operating certificate pursuant
26 to this article shall make any charitable contribution of state moneys,
27 medical assistance payments or social security or supplemental security
28 income or any interest or other income earned thereon, except as author-
195 13001-04-9
1 ized by the commissioner. Provided, however, the provision of this
2 section shall not apply to receipts or donations from private or non-go-
3 vernmental sources and any interest or other income earned thereon, or
4 to monies advanced to employees in accordance with performance of their
5 official duties as employees.
6 (b) Notwithstanding the not-for-profit corporation law, no loans,
7 consisting in whole or in part of funding provided by the office, shall
8 be made by a not-for-profit corporation issued an operating certificate
9 as a provider of services pursuant to this article to any employee of
10 such corporation, or to any other corporation, firm, association or
11 other entity in which an employee is a director or officer or employee
12 or holds a direct or indirect substantial financial interest. A loan
13 made in violation of this section shall be a violation of the duty to
14 the not-for-profit corporation of the directors or officers authorizing
15 it or participating in it, but the obligation of the borrower with
16 respect to the loan shall not be affected thereby.
17 (c) 1. No contract or other transaction between a not-for-profit
18 corporation issued an operating certificate as a provider of services
19 pursuant to this article and one or more of its employees, or between a
20 not-for-profit corporation and any other corporation, firm, association
21 or other entity in which one or more of such persons are directors or
22 officers of the board or corporation, or employee who receives an annual
23 salary in excess of thirty thousand dollars, or have an indirect or
24 direct substantial financial interest, shall be either void or voidable
25 for this reason alone:
26 (i) If the material facts as to such person’s interest in such
27 contract or transaction and as to any such common directorship, officer-
28 ship or financial interest are disclosed in good faith or known to the
196 13001-04-9
1 board or committee, the board or committee authorizes such contract or
2 transaction by a vote sufficient for such purpose without counting the
3 vote or votes of such interested person; or
4 (ii) If the material facts as to such person’s interest in such
5 contract or transaction and as to any such common directorship, officer-
6 ship or financial interest are disclosed in good faith or known to the
7 members entitled to vote thereon, if any, and such contract or trans-
8 action is authorized by vote of such members.
9 2. If such good faith disclosure of the material facts as to the
10 person’s interest in the contract or transaction and as to any such
11 common directorship, officership or financial interest, is made to the
12 directors or member, or known to the board or committee or members
13 authorizing such contract or transaction, as provided in paragraph one
14 of this subdivision, the contract or transaction may not be voided by
15 the corporation for the reasons set forth in paragraph one of this
16 subdivision. If there was no such disclosure of knowledge the corpo-
17 ration may void the contract or transaction unless the party or parties
18 thereto shall establish affirmatively that the contract or transaction
19 was fair and reasonable as to the corporation at the time it was author-
20 ized by the board, a committee or the members.
21 § 32.35 Disclosure by members, officers and employees.
22 In the event that a provider of services certified by the office of
23 alcoholism and substance abuse services enters into an agreement or has
24 entered into an agreement for the purchase, lease, rehabilitation or
25 improvement of real property or a cooperative share in real property,
26 any employee who receives an annual salary in excess of thirty thousand
27 dollars, or any board member, partner, or officer of such provider of
28 services who has a direct or indirect interest either financial or bene-
197 13001-04-9
1 ficial in such property including the interest of any person for whom he
2 or she is related by consanguinity or affinity, shall disclose such
3 interest prior to the making of such agreement or at the time of acqui-
4 sition of such interest. Disclosure pursuant to this section shall be
5 made in writing to the board of directors of such provider of services
6 and shall indicate the material facts as to the member’s, partner’s,
7 officer’s, employee’s or relative’s interest in such property or cooper-
8 ative share. Such disclosure shall be filed with the secretary of the
9 corporation and entered on the minutes of a meeting of the board. Such
10 disclosure shall also be forwarded in writing to the commissioner prior
11 to the approval of public funding related to the property or cooperative
12 share which is the subject of disclosure made pursuant to this section
13 or at the time of the acquisition of such interest, whichever occurs
14 later.
15 § 32.37 Registration and notification of boards of directors or trustees
16 of certain voluntary not-for-profit facilities or corpo-
17 rations.
18 (a) Notwithstanding any other law, rule, or regulation, the executive
19 director, chairperson or president of a voluntary, not-for-profit corpo-
20 ration which has been issued an operating certificate by or has received
21 funding from the office of alcoholism and substance abuse services shall
22 furnish annually to the commissioner of such office a list of the names
23 and addresses of the current members of the board of directors or trus-
24 tees of such corporation. Failure to furnish such annual list may remove
25 such corporation from consideration for recertification or refunding.
26 (b) In the event that such provider of services is found to be in
27 violation of the provisions of this chapter or of rules and regulations
28 promulgated by the commissioner pursuant to this chapter which could
198 13001-04-9
1 result in the revocation, cancellation, limitation or suspension of the
2 operating certificate of such provider of services and if notice of such
3 violation is provided to the provider of services pursuant to such regu-
4 lations, a copy of such notice shall be provided to each of the current
5 members of the board of directors or trustees of such provider of
6 services by the commissioner.
7 (c) Within available appropriations, within the first year of appoint-
8 ment of a member to a board of directors of a provider of services which
9 has been issued an operating certificate by or has received funding from
10 the office of alcoholism and substance abuse services, the commissioner
11 shall ensure that each new member is appropriately provided with infor-
12 mation, which may include training, to carry out his or her role as a
13 member of a board of directors of such provider of services pursuant to
14 article seven of the not-for-profit corporation law and applicable laws,
15 rules and regulations governing the operation of chemical dependence
16 services. Training shall be provided for all new members of organiza-
17 tions established to provide or facilitate the provision of chemical
18 dependence services, as appropriate, upon initial appointment and as
19 frequently thereafter as determined by the commissioner.
20 § 32.39 Fiscal year report.
21 (a) Every provider of chemical dependence services which is required
22 to have an operating certificate pursuant to this chapter shall within
23 one hundred twenty days after the end of its fiscal year, file an annual
24 report with the commissioner. Said report shall be in such form and
25 shall contain such information as shall be prescribed in rule by the
26 commissioner, including the following:
199 13001-04-9
1 1. A balance sheet of the program as of the end of its fiscal year,
2 setting forth assets and liabilities at such date, including all capi-
3 tal, surplus, reserve depreciation and similar accounts.
4 2. A statement of operations of the program for its fiscal year,
5 setting forth all revenues, expenses, taxes, extraordinary items and
6 other credits or charges.
7 3. To the extent known or reasonably ascertainable, the name and
8 address of each of the following persons:
9 (i) the operator of the program;
10 (ii) any person who, directly or indirectly, beneficially owns any
11 interest in the land in which the program is located;
12 (iii) any person who, directly or indirectly, beneficially owns any
13 interest in the building in which the program is located;
14 (iv) any person who, directly or indirectly, beneficially owns any
15 interest in or any mortgage, note, deed of trust or other obligation
16 secured in whole or in part by the land on which or the building in
17 which the program is located;
18 (v) any person who, directly or indirectly, has any interest as lessor
19 or lessee in any lease or sub-lease of the land on which the building in
20 which the program is located; and
21 (vi) if the names of any of the above are not known or reasonably
22 ascertainable by the provider, then a statement explaining why such
23 names are not ascertainable and a description of the efforts made to
24 ascertain such information.
25 4. If the program or any person named in response to subparagraph
26 (iii) of paragraph three of this subdivision is a partnership, then the
27 name and address of each partner.
200 13001-04-9
1 5. If the program or any person named in response to the subparagraph
2 (iii) of paragraph three of this subdivision is a corporation, other
3 than a corporation whose shares are traded on a national securities
4 exchange or are regularly quoted in an over-the-counter market or which
5 is a commercial bank, savings bank or savings and loan association, then
6 the name and address of each officer, director, stockholder, and, if
7 known, each principal stockholder and controlling person of such corpo-
8 ration.
9 6. If any corporation named in response to subparagraph (iii) of para-
10 graph three of this subdivision is a corporation whose shares are traded
11 on a national securities exchange or are regularly quoted in an over-
12 the-counter market or which is a commercial bank, savings bank or
13 savings and loan association, then the name and address of the principal
14 executive officers and each director and, if known, each principal
15 stockholder of such corporation.
16 7. If the program paid or received an aggregate of five hundred
17 dollars or more during the fiscal year in connection with transactions
18 with any person named in response to subparagraph (iii), (iv), or (v) of
19 paragraph three of this subdivision or any affiliate of said person, a
20 description of the transactions, naming the parties thereto and describ-
21 ing the relationships which require the transactions to be described and
22 the goods, services, payment or other consideration received by each
23 party to the transactions.
24 8. If known, the nature and amount of any interest in, or relationship
25 with, any other program for chemical dependence, held by any person
26 named in response to subparagraph (iii) of paragraph three of this
27 subdivision or by any affiliate of such person.
201 13001-04-9
1 (b) The following definitions shall be applicable to this section and
2 to any reports filed pursuant hereto:
3 1. "Affiliate" means:
4 (i) with respect to a partnership, each partner thereof;
5 (ii) with respect to a corporation, each officer, director, principal
6 stockholder and controlling person thereof;
7 (iii) with respect to a natural person (A) each member of said
8 person’s immediate family, (B) each partnership and each partner there-
9 of, and (C) each corporation in which said person or any affiliate of
10 said person is an officer, director, principal stockholder or control-
11 ling person.
12 2. "Controlling person" of any corporation, partnership or other enti-
13 ty means any person who by reason of a direct or indirect ownership
14 interest (whether of record or beneficial) has the ability, acting
15 either alone or in concert with others with ownership interest, to
16 direct or cause the direction of the management or policies of said
17 corporation, partnership or other entity. Neither the commissioner nor
18 any employee of the office nor any member of a local legislative body of
19 a county or municipality, nor any county or municipal official shall by
20 reason of his or her official position, be deemed a controlling person
21 of any corporation, partnership or other entity nor shall any person who
22 serves as an officer, administrator or other employee of any corpo-
23 ration, partnership or other entity or as a member of a board of direc-
24 tors or trustees of any corporation be deemed to be a controlling person
25 of such corporation, partnership or other entity as a result of such
26 position or his or her official actions in such position.
202 13001-04-9
1 3. "Immediate family" means parent, spouse, child, brother, sister,
2 first cousin, aunt and uncle of such person, whether such relationship
3 arises by reason of birth, marriage or adoption.
4 4. "Principal stockholder" of a corporation means any person who bene-
5 ficially owns, holds or has the power to vote, ten percent or more of
6 any class of securities issued by said corporation.
7 (c) The commissioner shall develop such reporting forms as he or she
8 deems necessary to carry out the provisions of this section and in
9 developing such forms shall consider such criteria as program size,
10 total operating budget and modality.
11 (d) Every report filed by a program pursuant to this section shall
12 contain a written statement, sworn to by or on behalf of such facility
13 and the operator of such program, to the effect that the report is, to
14 the best of such person’s knowledge, true and complete and prepared in
15 accordance with the provisions of this section.
16 § 19. Subdivision (d) of section 41.18 of the mental hygiene law, as
17 amended by chapter 588 of the laws of 1973 and such section as renum-
18 bered by chapter 978 of the laws of 1977, is amended to read as follows:
19 (d) The liability of the state in any state fiscal year for state aid
20 pursuant to this section shall exclude chemical dependence services, as
21 defined in article twenty-six of this title and which are subject to
22 such article, and shall be limited to the amounts appropriated for such
23 state aid by the legislature for such state fiscal year.
24 § 20. Subdivision (a) of section 41.23 of the mental hygiene law, as
25 added by chapter 588 of the laws of 1973 and such section as renumbered
26 by chapter 978 of the laws of 1977, is amended to read as follows:
27 (a) [Aggregate] With the exception of chemical dependence services, as
28 defined in article twenty-six of this title, and which are subject to
203 13001-04-9
1 such article, aggregate costs incurred pursuant to an approved unified
2 services plan shall be funded pursuant to the provisions of this
3 section. For the purposes of this section, the term "aggregate costs"
4 shall mean the sum of net operating costs, as defined in section [11.03]
5 41.03, and the costs of services rendered by department facilities
6 pursuant to a unified services plan. Costs of services rendered by
7 department facilities shall be determined on the basis of rates estab-
8 lished pursuant to article forty-three, less all income received from or
9 on behalf of such patient, or otherwise provided by law.
10 § 21. Section 43.02 of the mental hygiene law, as amended by chapter
11 223 of the laws of 1992, is amended to read as follows:
12 § 43.02 Rates or methods of payment for services at facilities subject
13 to licensure or certification by the office of mental health,
14 the office of mental retardation and developmental disabili-
15 ties or the office of alcoholism and substance abuse services.
16 (a) Notwithstanding any inconsistent provision of law, payment made by
17 government agencies pursuant to title eleven of article five of the
18 social services law for services provided by any facility licensed by
19 the office of mental health pursuant to article thirty-one of this chap-
20 ter or licensed or operated by the office of mental retardation and
21 developmental disabilities pursuant to article sixteen of this chapter
22 or certified by the office of alcoholism and substance abuse services
23 pursuant to [article thirty-one of] this chapter to provide inpatient
24 chemical dependence services, as defined in section 1.03 of this chap-
25 ter, shall be at rates or fees certified by the commissioner of the
26 respective office and approved by the director of the division of the
27 budget, provided, however, the commissioner of mental health shall annu-
28 ally certify such rates or fees which may vary for distinct geographical
204 13001-04-9
1 areas of the state and, provided, further, that rates or fees for
2 service for inpatient psychiatric services [or alcoholism services] or
3 inpatient chemical dependence services, at hospitals otherwise licensed
4 pursuant to article twenty-eight of the public health law shall be
5 established in accordance with section two thousand eight hundred seven
6 of the public health law.
7 (b) Operators of facilities licensed by the office of mental health
8 pursuant to article thirty-one of this chapter, licensed by the office
9 of mental retardation and developmental disabilities pursuant to article
10 sixteen of this chapter or certified by the office of alcoholism and
11 substance abuse services pursuant to [article thirty-one of] this chap-
12 ter to provide inpatient chemical dependence services shall provide to
13 the commissioner of the respective office such financial, statistical
14 and program information as the commissioner may determine to be neces-
15 sary. The commissioner of the appropriate office shall have the power
16 to conduct on-site audits of books and records of such facilities.
17 (c) The commissioner of the office of mental health, the commissioner
18 of the office of mental retardation and developmental disabilities and
19 the commissioner of the office of alcoholism and substance abuse
20 services shall adopt rules and regulations to effectuate the provisions
21 of this section. Such rules and regulations shall include, but not be
22 limited to, provisions relating to:
23 (i) the establishment of a uniform statewide system of reports and
24 audits relating to the quality of care provided, facility utilization
25 and costs of providing services; such a uniform statewide system may
26 provide for appropriate variation in the application of the system to
27 different classes or subclasses of facilities licensed by the office of
28 mental health pursuant to article thirty-one of this chapter or licensed
205 13001-04-9
1 or operated by the office of mental retardation and developmental disa-
2 bilities pursuant to article sixteen of this chapter, or certified by
3 the office of alcoholism and substance abuse services pursuant to [arti-
4 cle thirty-one of] this chapter to provide inpatient chemical dependence
5 services; and
6 (ii) methodologies used in the establishment of the schedules of rates
7 or fees pursuant to this section.
8 § 22. Paragraph (n) of subdivision 2 of section 365-a of the social
9 services law, as added by chapter 743 of the laws of 1986, is amended to
10 read as follows:
11 (n) care, treatment, maintenance and rehabilitation services that
12 would otherwise qualify for reimbursement pursuant to this chapter to
13 persons suffering from alcoholism in alcoholism facilities or chemical
14 dependence, as such term is defined in section 1.03 of the mental
15 hygiene law, in inpatient chemical dependence facilities, services, or
16 programs operated in compliance with applicable provisions of this chap-
17 ter and the mental hygiene law, and certified by the [division of alco-
18 holism and alcohol abuse] office of alcoholism and substance abuse
19 services, provided however that such services shall be limited to such
20 periods of time as may be determined necessary in accordance with a
21 utilization review procedure established by the [director] commissioner
22 of the [division of alcoholism and alcohol abuse] office of alcoholism
23 and substance abuse services and provided further, that this paragraph
24 shall not apply to any hospital or part of a hospital as defined in
25 section two thousand eight hundred one of the public health law.
26 § 23. Paragraphs (u) and (v) of section 404 of the not-for-profit
27 corporation law, as amended by chapter 139 of the laws of 1993 and as
206 13001-04-9
1 relettered by chapter 431 of the laws of 1993, are amended to read as
2 follows:
3 (u) Every certificate of incorporation which includes among the
4 purposes of the corporation, the establishment or operation of a
5 substance abuse, substance dependence, alcohol abuse, alcoholism, or
6 chemical abuse or dependence program, or the solicitation of contrib-
7 utions for any such purpose, shall have endorsed thereon or annexed
8 thereto the consent of the commissioner of the office of alcoholism and
9 substance abuse services to its filing by the department of state.
10 [(v) Every certificate of incorporation which includes among the
11 purposes of the corporation, the establishment or operation of facili-
12 ties for providing alcoholism services, or the solicitation of contrib-
13 utions for any such purpose, shall have endorsed thereon or annexed
14 thereto the consent of the commissioner of the office of alcoholism and
15 substance abuse services to its filing by the department of state.]
16 § 24. Section 406 of the business corporation law, as added by chapter
17 211 of the laws of 1984, is amended to read as follows:
18 § 406. Filing of a certificate of incorporation; facility for alcoholism
19 or alcohol abuse, substance abuse, substance dependence, or
20 chemical abuse or dependence.
21 Every certificate of incorporation which includes among its corporate
22 purposes the establishment or operation of a program of services for
23 alcoholism or alcohol abuse, substance abuse, substance dependence, or
24 chemical abuse or dependence shall have endorsed thereon or annexed
25 thereto the approval of the [director] commissioner of the state [divi-
26 sion] office of alcoholism and [alcohol] substance abuse services.
27 § 25. Section 407 of the business corporation law is REPEALED.
207 13001-04-9
1 § 26. Subdivision 14 of section 2 of the correction law, as added by
2 chapter 554 of the laws of 1986, is amended to read as follows:
3 14. "Community treatment facility." A residential [substance abuse]
4 chemical dependence facility approved as provided in section 32.01 of
5 the mental hygiene law or pursuant to section [23.01] 32.31 of [the
6 mental hygiene] such law used exclusively to provide substance abuse
7 treatment services to persons eligible pursuant to section seventy-two-a
8 of this chapter and who are otherwise eligible for temporary release
9 pursuant to subdivision two of section eight hundred fifty-one of this
10 chapter. These facilities shall be separate and distinct so as not to
11 replace existing substance abuse treatment services.
12 § 27. Paragraphs 6 and 7 of subsection (l) of section 3221 of the
13 insurance law, as amended by chapter 444 of the laws of 1987, subpara-
14 graph (A) of paragraph 6 as amended by chapter 21 of the laws of 1990,
15 are amended to read as follows:
16 (6) (A) Every insurer delivering a group or school blanket policy or
17 issuing a group or school blanket policy for delivery, in this state,
18 which provides coverage for inpatient hospital care must make available
19 and, if requested by the policyholder, provide coverage for the diagno-
20 sis and treatment of [alcoholism or alcohol] chemical abuse and
21 [substance abuse or substance] chemical dependence, however defined in
22 such policy, provided, however, that the term chemical abuse shall mean
23 and include alcohol and substance abuse and chemical dependence shall
24 mean and include alcoholism and substance dependence, however defined in
25 such policy. Written notice of the availability of such coverage shall
26 be delivered to the policyholder prior to inception of such group policy
27 and annually thereafter, except that this notice shall not be required
28 where a policy covers two hundred or more employees or where the benefit
208 13001-04-9
1 structure was the subject of collective bargaining affecting persons who
2 are employed in more than one state.
3 (B) Such coverage shall be at least equal to the following:
4 (i) with respect to benefits for detoxification as a consequence of
5 [alcohol dependence or substance] chemical dependence, inpatient bene-
6 fits in a hospital or a detoxification facility may not be limited to
7 less than seven days of active treatment in any calendar year; and
8 (ii) with respect to benefits for rehabilitation services, such bene-
9 fits may not be limited to less than thirty days of inpatient care in
10 any calendar year.
11 (C) Such coverage may be limited to facilities in New York state which
12 are certified by the [division] office of alcoholism and [alcohol abuse
13 or the division of] substance abuse services and, in other states, to
14 those which are accredited by the joint commission on accreditation of
15 hospitals as alcoholism [or substance abuse], substance abuse or chemi-
16 cal dependence treatment programs. [Persons whose primary diagnosis is
17 alcohol abuse or alcoholism may be treated only in a facility certified
18 by the division of alcoholism and alcohol abuse. Persons whose primary
19 diagnosis is substance abuse or substance dependence may be treated only
20 in a facility approved by the division of substance abuse services.]
21 (D) Such coverage shall be made available at the inception of all new
22 policies and with respect to all other policies at any anniversary date
23 of the policy subject to evidence of insurability.
24 (E) Such coverage may be subject to annual deductibles and co-insu-
25 rance as may be deemed appropriate by the superintendent and are
26 consistent with those imposed on other benefits within a given policy.
27 Further, each insurer shall report to the superintendent each year the
28 number of contract holders to whom it has issued policies for the inpa-
209 13001-04-9
1 tient treatment of [alcoholism] chemical dependence, and the approximate
2 number of persons covered by such policies.
3 (F) Such coverage shall not replace, restrict or eliminate existing
4 coverage provided by the policy.
5 (7) Every insurer delivering a group or school blanket policy or issu-
6 ing a group or school blanket policy for delivery in this state which
7 provides coverage for inpatient hospital care must provide coverage for
8 at least sixty outpatient visits in any calendar year for the diagnosis
9 and treatment of [alcoholism or substance abuse] chemical dependence of
10 which up to twenty may be for family members, except that this provision
11 shall not apply to a policy which covers persons employed in more than
12 one state or the benefit structure of which was the subject of collec-
13 tive bargaining affecting persons who are employed in more than one
14 state. Such coverage may be limited to facilities in New York state
15 which are certified by the [division of] office of alcoholism and [alco-
16 hol abuse or by the division of] substance abuse services as outpatient
17 clinics or medically supervised ambulatory substance abuse programs and,
18 in other states, to those which are accredited by the joint commission
19 on accreditation of hospitals as alcoholism or chemical dependence
20 treatment programs. [Persons whose primary diagnosis is alcohol abuse or
21 alcoholism may be treated only in a facility certified by the division
22 of alcoholism and alcohol abuse. Persons whose primary diagnosis is
23 substance abuse or substance dependence may be treated only in a facili-
24 ty approved by the division of substance abuse services.] Such coverage
25 may be subject to annual deductibles and co-insurance as may be deemed
26 appropriate by the superintendent and are consistent with those imposed
27 on other benefits within a given policy. Such coverage shall not
210 13001-04-9
1 replace, restrict, or eliminate existing coverage provided by the poli-
2 cy.
3 § 28. Subsections (k) and (l) of section 4303 of the insurance law,
4 subsection (k) as amended by chapter 21 of the laws of 1990 and
5 subsection (l) as amended by chapter 444 of the laws of 1987, are
6 amended to read as follows:
7 (k) A hospital service corporation or a health service corporation
8 which provides group, group remittance or school blanket coverage for
9 inpatient hospital care must make available and if requested by the
10 contract holder provide coverage for the diagnosis and treatment of
11 [alcoholism and alcohol] chemical abuse and [substance abuse and
12 substance] chemical dependence, however defined in such policy,
13 provided, however, that the term chemical abuse shall mean and include
14 alcohol and substance abuse and chemical dependence shall mean and
15 include alcoholism and substance dependence, however defined in such
16 policy, except that this provision shall not apply to a policy which
17 covers persons employed in more than one state or the benefit structure
18 of which was the subject of collective bargaining affecting persons who
19 are employed in more than one state. Such coverage shall be at least
20 equal to the following: (1) with respect to benefits for detoxification
21 as a consequence of [alcohol dependence or substance] chemical depend-
22 ence, inpatient benefits for care in a hospital or detoxification facil-
23 ity may not be limited to less than seven days of active treatment in
24 any calendar year; and (2) with respect to benefits for inpatient reha-
25 bilitation services, such benefits may not be limited to less than thir-
26 ty days of inpatient rehabilitation in a hospital based or free standing
27 [alcoholism] chemical dependence facility in any calendar year. Such
28 coverage may be limited to facilities in New York state which are certi-
211 13001-04-9
1 fied by the [division] office of alcoholism and [alcohol abuse or the
2 division of] substance abuse services and, in other states, to those
3 which are accredited by the joint commission on accreditation of hospi-
4 tals as alcoholism [or], substance abuse, or chemical dependence treat-
5 ment programs. Such coverage shall be made available at the inception of
6 all new policies and with respect to policies issued before the effec-
7 tive date of this subsection at the first annual anniversary date there-
8 after, without evidence of insurability and at any subsequent annual
9 anniversary date subject to evidence of insurability. [Persons whose
10 primary diagnosis is alcohol abuse or alcoholism may be treated only in
11 a facility certified by the division of alcoholism and alcohol abuse.
12 Persons whose primary diagnosis is substance abuse or substance depend-
13 ence may be treated only in a facility approved by the division of
14 substance abuse services.] Such coverage may be subject to annual deduc-
15 tibles and co-insurance as may be deemed appropriate by the superinten-
16 dent and are consistent with those imposed on other benefits within a
17 given policy. Further, each hospital service corporation or health
18 service corporation shall report to the superintendent each year the
19 number of contract holders to whom it has issued policies for the inpa-
20 tient treatment of [alcoholism] chemical dependence, and the approximate
21 number of persons covered by such policies. Such coverage shall not
22 replace, restrict or eliminate existing coverage provided by the policy.
23 Written notice of the availability of such coverage shall be delivered
24 to the group remitting agent or group contract holder prior to inception
25 of such contract and annually thereafter, except that this notice shall
26 not be required where a policy covers two hundred or more employees or
27 where the benefit structure was the subject of collective bargaining
28 affecting persons who are employed in more than one state.
212 13001-04-9
1 (l) A hospital service corporation or a health service corporation
2 which provides group, group remittance or school blanket coverage for
3 inpatient hospital care must provide coverage for at least sixty outpa-
4 tient visits in any calendar year for the diagnosis and treatment of
5 [alcoholism or substance abuse] chemical dependence of which up to twen-
6 ty may be for family members, except that this provision shall not apply
7 to a contract issued pursuant to section four thousand three hundred
8 five of this article which covers persons employed in more than one
9 state or the benefit structure of which was the subject of collective
10 bargaining affecting persons who are employed in more than one state.
11 Such coverage may be limited to facilities in New York state which are
12 certified by the [division of] office of alcoholism and [alcohol abuse
13 or by the division of] substance abuse services as outpatient clinics as
14 medically supervised ambulatory substance abuse programs and, in other
15 states, to those which are accredited by the joint commission on accred-
16 itation of hospitals as alcoholism or chemical dependence substance
17 abuse treatment programs. [Persons whose primary diagnosis is alcohol
18 abuse or alcoholism may be treated only in a facility certified by the
19 division of alcoholism and alcohol abuse. Persons whose primary diagno-
20 sis is substance abuse or substance dependence may be treated only in a
21 facility approved by the division of substance abuse services.] Such
22 coverage may be subject to annual deductibles and co-insurance as may be
23 deemed appropriate by the superintendent and are consistent with those
24 imposed on other benefits within a given policy. Such coverage shall not
25 replace, restrict or eliminate existing coverage provided by the policy.
26 § 29. Subsections (e) and (g) of section 4900 of the insurance law, as
27 added by chapter 705 of the laws of 1996, are amended to read as
28 follows:
213 13001-04-9
1 (e) "Health care services" means health care procedures, treatments or
2 services provided by a facility licensed pursuant to article twenty-
3 eight, thirty-six, forty-four or forty-seven of the public health law; a
4 facility licensed pursuant to article nineteen, or twenty-three [or],
5 thirty-one or thirty-two of the mental hygiene law; a health care
6 professional; and the provision of pharmaceutical products or services
7 or durable medical equipment; provided that nothing in this subsection
8 shall be construed to define what are covered services pursuant to a
9 contract.
10 (g) "Health care provider" means a health care professional or a
11 facility licensed pursuant to article twenty-eight, thirty-six, forty-
12 four or forty-seven of the public health law or a facility licensed
13 pursuant to article nineteen, twenty-three [or], thirty-one or thirty-
14 two of the mental hygiene law.
15 § 30. Subdivision 6 of section 1.03 of the mental hygiene law, as
16 amended by chapter 299 of the laws of 1984, is amended to read as
17 follows:
18 6. "Facility" means any place in which services for the mentally disa-
19 bled are provided and includes but is not limited to a psychiatric
20 center, developmental center, institute, clinic, ward, institution, or
21 building, except that in the case of a hospital as defined in article
22 twenty-eight of the public health law it shall mean only a ward, wing,
23 unit, or part thereof which is operated for the purpose of providing
24 services for the mentally disabled. It shall not include a place where
25 the services rendered consist solely of non-residential services for the
26 mentally disabled which are exempt from the requirement for an operating
27 certificate under article sixteen [or], thirty-one or thirty-two of this
214 13001-04-9
1 chapter, nor shall it include domestic care and comfort to a person in
2 the home.
3 § 31. Subdivision 31 of section 1.03 of the mental hygiene law, as
4 added by chapter 978 of the laws of 1977, is amended to read as follows:
5 31. "Discharge" means release and the termination of any right to
6 retain or treat the patient on an in-patient basis. The discharge of
7 such a patient shall not preclude the patient from receiving necessary
8 services on other than an in-patient basis nor shall it preclude subse-
9 quent readmission as an in-patient if made in accordance with article
10 nine, fifteen, or [twenty-one] twenty-two of this chapter.
11 § 32. Section 9.03 of the mental hygiene law, as amended by chapter
12 867 of the laws of 1985, is amended to read as follows:
13 § 9.03 Admission to a hospital.
14 Unless otherwise specifically provided for by statute, a mentally ill
15 person shall be admitted to a hospital as an in-patient only pursuant to
16 the provisions of this article, except that [alcoholic] chemically
17 dependent patients may be admitted to [alcoholism] chemical dependence
18 facilities operated by such hospitals under contract or agreement with
19 the office of alcoholism and substance abuse services in accordance with
20 the provisions of article [twenty-one] twenty-two of this chapter. The
21 section of the mental hygiene law under which a patient is admitted or
22 under which any change of legal status is subsequently effected shall be
23 stated in the patient’s record.
24 § 33. Subdivision (a) of section 9.59 of the mental hygiene law, as
25 amended by chapter 678 of the laws of 1994, is amended to read as
26 follows:
27 (a) Notwithstanding any inconsistent provision of any general, special
28 or local law, an ambulance service as defined by subdivision two of
215 13001-04-9
1 section three thousand one of the public health law and any member ther-
2 eof who is an emergency medical technician or an advanced emergency
3 medical technician transporting a person to a hospital as authorized by
4 this article, any peace officers, when acting pursuant to their special
5 duties, any police officers, who are members of an authorized police
6 department or force or of a sheriff’s department, and any members of
7 mobile crisis outreach teams approved by the commissioner pursuant to
8 section 9.58 of this article, who are taking into custody and transport-
9 ing a person to a hospital as authorized by this article, or to a hospi-
10 tal or other facility as authorized by section [21.09 or 23.02] 22.09 of
11 this chapter, and any employee of a licensed comprehensive psychiatric
12 emergency program, specially trained in accordance with standards devel-
13 oped by the commissioner, who transports a person to a hospital, shall
14 not be liable for damages for injuries alleged to have been sustained by
15 such person or for the death of such person alleged to have occurred by
16 reason of an act or omission unless it is established that such injuries
17 or such death was caused by gross negligence on the part of such emer-
18 gency medical technician, advanced emergency medical technician, peace
19 officer, police officer, mobile crisis outreach team member, or special-
20 ly trained employee of a licensed comprehensive psychiatric emergency
21 program.
22 § 34. Subdivision (e) of section 19.05 of the mental hygiene law, as
23 added by chapter 208 of the laws of 1996, is amended to read as follows:
24 (e) The council shall review applications filed in accordance with
25 section [31.23 or section 31.24] 32.29 or 32.31 of this chapter for
26 approval of incorporation or establishment or construction of a facility
27 for which approval to operate is required from the commissioner pursuant
28 to article [thirty-one] thirty-two of this chapter, and as otherwise
216 13001-04-9
1 requested by the commissioner, provided, however, that such council
2 shall complete review of applications for approval of incorporation or
3 establishment or construction of a facility previously filed under arti-
4 cle thirty-one of this chapter prior to the effective date of this
5 section. The commissioner shall ensure that members of the council have
6 the information necessary to make an informed review.
7 § 35. Paragraphs 1 and 2 of subdivision b of section 19.41 of the
8 mental hygiene law, as added by chapter 65 of the laws of 1997, is
9 amended to read as follows:
10 (1) Upon issuing a notice that the commissioner will revoke or suspend
11 a license or operating certificate in accordance with this article and
12 [section 23.01 or 31.15] article thirty-two of this chapter, or that he
13 or she will disapprove an application of renewal of such certificate or
14 license pursuant to this article and [section 23.01 or 31.15] article
15 thirty-two of this chapter the commissioner may apply to the supreme
16 court in the county where the facility is located for an order to show
17 cause why a receiver should not be appointed to operate the facility.
18 The court shall, upon determining that the notice was properly issued
19 and that it would be in the best interests of the persons served by the
20 facility to have services continued after the effective date of the
21 revocation or suspension, appoint a receiver for the facility to take
22 effect upon the revocation or suspension of the operating certificate or
23 license in accordance with the provisions of this article.
24 The order to show cause shall be returnable not less than five days
25 after service is completed and shall provide for personal service of a
26 copy thereof and the papers upon which it is based on the operator of
27 the facility and upon the owner or owners of the land and/or owners of
28 the land and/or structure on or in which the facility is located. If any
217 13001-04-9
1 such operator or owner cannot with due diligence be served personally
2 within the county where the property is located and within the time
3 fixed in such order, then service may be made on such person by posting
4 a copy thereof in a conspicuous place within the facility in question,
5 and by sending a copy thereof by registered mail, return receipt
6 requested, to such owner at the last address registered to him or her
7 with the office, or in the absence of such registration, to the address
8 set forth in the last recorded deed with respect to such facility.
9 Service shall be deemed complete on filing proof of service thereof in
10 the office of the county clerk, or the clerk of the city of New York, as
11 the case may be.
12 (2) The commissioner may, prior to suspending an operating certificate
13 or license pursuant to this article and [section 23.01 or 31.15] article
14 thirty-two of this chapter, request a temporary restraining order
15 appointing a receiver for a facility effective with the commissioner’s
16 issuance of the notice of the suspension. The court shall issue the
17 temporary restraining order if it is satisfactorily shown by the commis-
18 sioner that he or she has reasonable grounds for finding that continued
19 operation of the facility by the current provider of services presents
20 an imminent danger to the health and welfare of any of the public or any
21 of the individuals served by the facility.
22 § 36. Paragraph 3 of subdivision (a) of section 33.16 of the mental
23 hygiene law, as amended by chapter 226 of the laws of 1991, is amended
24 to read as follows:
25 3. "Facility" means a facility as defined in section 1.03 of this
26 chapter, a program requiring approval for operation pursuant to article
27 [twenty-three] thirty-two of this chapter or institutions offering
218 13001-04-9
1 training in psychotherapy, psychoanalysis and related areas chartered
2 pursuant to section two hundred sixteen of the education law.
3 § 37. Paragraph 1 of subdivision (b) of section 81.22 of the mental
4 hygiene law, as amended by chapter 32 of the laws of 1993, is amended to
5 read as follows:
6 1. consent to the voluntary formal or informal admission of the inca-
7 pacitated person to a mental hygiene facility under article nine or
8 fifteen of this chapter or to [an alcoholism] a chemical dependence
9 facility under article [twenty-one] twenty-two of this chapter;
10 § 38. Paragraph (b) of subdivision 1 of section 18-a of the public
11 health law, as added by chapter 705 of the laws of 1996, is amended to
12 read as follows:
13 (b) affiliation with any health care facility licensed pursuant to
14 article twenty-eight, thirty-six or forty-four of this chapter, and any
15 facility licensed pursuant to article nineteen, twenty-three [or], thir-
16 ty-one or thirty-two of the mental hygiene law;
17 § 39. Paragraph (h) of subdivision 2 of section 586 of the public
18 health law, as added by chapter 803 of the laws of 1992, is amended to
19 read as follows:
20 (h) A substance abuse or chemical dependence program which has been
21 approved to operate by the office of alcoholism and substance abuse
22 services pursuant to the provision of section 23.01 or article thirty-
23 two of the mental hygiene law on behalf of clients of such a program
24 having been the recipient of the services; and
25 § 40. Subdivision 5 of section 3351 of the public health law, as added
26 by chapter 433 of the laws of 1986, is amended to read as follows:
27 5. Methadone, or such other controlled substance designated by the
28 commissioner as appropriate for such use, may be administered to an
219 13001-04-9
1 addict by a practitioner or by his designated agent acting under the
2 direction and supervision of a practitioner, as part of a substance
3 abuse or chemical dependence program approved pursuant to article twen-
4 ty-three or thirty-two of the mental hygiene law.
5 § 41. Subdivision 1 of section 3352 of the public health law, as added
6 by chapter 433 of the laws of 1986, is amended to read as follows:
7 1. Persons certified pursuant to article twenty-three or thirty-two of
8 the mental hygiene law to operate methadone maintenance treatment
9 programs shall keep records showing the receipt, administration,
10 dispensing, or destruction of all controlled substances and maintain the
11 records in such manner and detail as the commissioner, by regulation,
12 shall require.
13 § 42. Paragraph (b) of subdivision 2 of section 4408-a of the public
14 health law, as added by chapter 639 of the laws of 1996, is amended to
15 read as follows:
16 (b) "Provider" means an entity licensed or certified under article
17 twenty-eight or thirty-six of this chapter; an entity licensed or certi-
18 fied under article sixteen, twenty-three [or], thirty-one or thirty-two
19 of the mental hygiene law; or a health care practitioner, or combination
20 of health care practitioners, licensed under title eight of the educa-
21 tion law. Every provider shall be: (i) a natural person; (ii) a partner-
22 ship all of whose members are natural persons and that is not a limited
23 partnership; or (iii) a corporation none of whose stock is owned by
24 another corporation.
25 § 43. Subdivisions 5 and 7 of section 4900 of the public health law,
26 as added by chapter 705 of the laws of 1996, is amended to read as
27 follows:
220 13001-04-9
1 5. "Health care services" means health care procedures, treatments or
2 services provided by a facility licensed pursuant to article twenty-
3 eight, thirty-six, forty-four or forty-seven of this chapter; a facility
4 licensed pursuant to article nineteen, twenty-three [or], thirty-one or
5 thirty-two of the mental hygiene law; a health care professional; and
6 the provision of pharmaceutical products or services or durable medical
7 equipment; provided that nothing in this subdivision shall be construed
8 to define what are covered services pursuant to a subscriber contract.
9 7. "Health care provider" means a health care professional or a facil-
10 ity licensed pursuant to articles twenty-eight, thirty-six, forty-four
11 or forty-seven of this chapter or a facility licensed pursuant to arti-
12 cle nineteen, twenty-three [or], thirty-one or thirty-two of the mental
13 hygiene law.
14 § 44. Subdivision 21 of section 2 of the social services law, as
15 amended by chapter 779 of the laws of 1986, is amended to read as
16 follows:
17 21. Adult care facility shall mean a family type home for adults, a
18 shelter for adults, a residence for adults, an enriched housing program
19 or an adult home, which provides temporary or long-term residential care
20 and services to adults who, though not requiring continual medical or
21 nursing care as provided by facilities licensed pursuant to article
22 twenty-eight of the public health law or articles nineteen, twenty-three
23 [and], thirty-one and thirty-two of the mental hygiene law, are by
24 reason of physical or other limitations associated with age, physical or
25 mental disabilities or other factors, unable or substantially unable to
26 live independently. In addition, a residence for adults, enriched hous-
27 ing program or an adult home may provide services to non-residents in
221 13001-04-9
1 accordance with the provisions of section four hundred sixty-one-k of
2 this chapter.
3 § 45. Subparagraph (i) of paragraph (a) of subdivision 4 of section
4 364-j of the social services law, as amended by chapter 649 of the laws
5 of 1996, is amended to read as follows:
6 (i) a managed care provider shall arrange for access to and enrollment
7 of primary care practitioners and other medical services providers.
8 Each managed care provider shall possess the expertise and sufficient
9 resources to assure the delivery of quality medical care to participants
10 in an appropriate and timely manner and may include physicians, nurse
11 practitioners, county health departments, providers of comprehensive
12 health service plans licensed pursuant to article forty-four of the
13 public health law, and hospitals and diagnostic and treatment centers
14 licensed pursuant to article twenty-eight of the public health law or
15 otherwise authorized by law to offer comprehensive health services or
16 facilities licensed pursuant to articles sixteen, twenty-three [and],
17 thirty-one and thirty-two of the mental hygiene law.
18 § 46. Subdivision 1 of section 460-a of the social services law, as
19 amended by chapter 543 of the laws of 1996, is amended to read as
20 follows:
21 1. Unless the written approval of the department shall have been
22 endorsed on or annexed to a certificate of incorporation, no such
23 certificate shall hereafter be filed which includes among its corporate
24 purposes the care of destitute, delinquent, abandoned, neglected or
25 dependent children; the establishment or operation of any aged care
26 accommodation, as defined in the private housing finance law, or adult
27 care facility; the placing-out or boarding-out of children, as defined
28 in this chapter; the establishment or operation of a home or shelter for
222 13001-04-9
1 unmarried mothers or a residential program for victims of domestic
2 violence, as defined in subdivision four of section four hundred fifty-
3 nine-a of this chapter; or the solicitation of contributions for any
4 such purpose or purposes, provided, however, that the approval of the
5 department shall not be required for filing of a certificate of incorpo-
6 ration which is restricted in its statement of corporate purposes to the
7 establishment or operation of a facility for which an operating certif-
8 icate is required by article twenty-three, nineteen [or], thirty-one or
9 thirty-two of the mental hygiene law, or to the establishment or opera-
10 tion of a hospital, residential health care facility, or a home health
11 agency, as those terms are defined in article twenty-eight of the public
12 health law.
13 § 47. Paragraph (a) of subdivision 9 of section 460-d of the social
14 services law, as amended by chapter 733 of the laws of 1994, is amended
15 to read as follows:
16 (a) The department shall have authority to impose a civil penalty not
17 exceeding one thousand dollars per day against, and to issue an order
18 requiring the closing of, after notice and opportunity to be heard, any
19 facility which does not possess a valid operating certificate issued by
20 the department and is an adult care facility subject to the provisions
21 of this article and the regulations of the department. A hearing shall
22 be conducted in accordance with procedures established by department
23 regulations which procedures shall require that notice of the determi-
24 nation that the facility is an adult care facility and the reasons for
25 such determination and notice of the time and place of the hearing be
26 served in person on the operator, owner or prime lessor, if any, or by
27 certified mail, return receipt requested, addressed to such person and
28 received at least twenty days prior to the date of the hearing. If such
223 13001-04-9
1 operator, owner or prime lessor, if any, is not known to the department,
2 then service may be made by posting a copy thereof in a conspicuous
3 place within the facility or by sending a copy thereof by certified
4 mail, return receipt requested, addressed to the facility. A written
5 answer to the notice of violation may be filed with the department not
6 less than five days prior to the date of the hearing. Demonstration by
7 the facility that it possessed an operating certificate issued pursuant
8 to this article, article twenty-eight of the public health law or arti-
9 cle sixteen, twenty-three [or], thirty-one or thirty-two of the mental
10 hygiene law at the time the hearing was commenced shall constitute a
11 complete defense to any charges made pursuant to this subdivision.
12 § 48. Subdivision 6 of section 461-c of the social services law, as
13 added by chapter 601 of the laws of 1981, is amended to read as follows:
14 6. No adult care facility shall receive or retain any person who is in
15 need of continual medical or nursing care as provided by facilities
16 licensed pursuant to article twenty-eight of the public health law or
17 articles nineteen, twenty-three [and], thirty-one and thirty-two of the
18 mental hygiene law.
19 § 49. Paragraph (b) of subdivision 2 of section 462 of the social
20 services law, as amended by chapter 169 of the laws of 1981, is amended
21 to read as follows:
22 (b) The appropriate offices of the state department of mental hygiene
23 shall establish regulations governing all child care facilities subject
24 to articles twenty-three [and], thirty-one and thirty-two of the mental
25 hygiene law.
26 § 50. Subdivision 2 of section 462-a of the social services law, as
27 amended by chapter 169 of the laws of 1981, is amended to read as
28 follows:
224 13001-04-9
1 2. The appropriate offices of the state department of mental hygiene
2 shall inspect and supervise those facilities subject to articles twen-
3 ty-three [and], thirty-one and thirty-two of the mental hygiene law.
4 § 51. Subdivision 2 of section 462-b of the social services law, as
5 amended by chapter 169 of the laws of 1981, is amended to read as
6 follows:
7 2. The appropriate offices of the state department of mental hygiene
8 shall exercise the enforcement powers enumerated in section four hundred
9 sixty-d of this article which may apply to those facilities subject to
10 articles twenty-three [and], thirty-one and thirty-two of the mental
11 hygiene law.
12 § 52. Paragraph (c) of subdivision 1 of section 473-d of the social
13 services law, as added by chapter 846 of the laws of 1986, such section
14 as renumbered by chapter 395 of the laws of 1995, is amended to read as
15 follows:
16 (c) "Residential facility" means a facility licensed pursuant to arti-
17 cle twenty-eight of the public health law, article nineteen, twenty-
18 three [or], thirty-one or thirty-two of the mental hygiene law, or arti-
19 cle seven of this chapter.
20 § 53. This act shall take effect immediately and shall be deemed to
21 have been in full force and effect on and after April 1, 1999; provided,
22 however, that nothing contained herein shall be deemed to affect the
23 application, qualification, expiration, reversion or repeal of any
24 provision of law amended by any section of this act and the provisions
25 of this act shall be applied or qualified or shall expire or revert or
26 be deemed repealed in the same manner, to the same extent and on the
27 same date as the case may be as otherwise provided by law.
28 PART BB
225 13001-04-9
1 § 1. Subdivision 3 of section 205 of the vehicle and traffic law, as
2 amended by section 76 of part A of chapter 56 of the laws of 1998, is
3 amended to read as follows:
4 3. Each such county clerk shall retain from fees collected for any
5 motor vehicle related service described in subdivision one of this
6 section processed by such county clerk an amount based on a percentage
7 of gross receipts collected. For purposes of this section, the term
8 "gross receipts" shall include all fines, fees and penalties collected
9 pursuant to this chapter by a county clerk acting as agent of the
10 commissioner, but shall not include any state or local sales or compen-
11 sating use taxes imposed under or pursuant to the authority of articles
12 twenty-eight and twenty-nine of the tax law and collected by such clerk
13 on behalf of the commissioner of taxation and finance. The retention
14 percentage shall be [9.3] 12.7 percent and shall take effect [July]
15 April first, nineteen hundred [ninety-eight and remain in effect until
16 December thirty-first, nineteen hundred] ninety-nine.
17 § 2. This act shall take effect April 1, 1999.
18 PART CC
19 § 1. Sections 8 and 9 of chapter 533 of the laws of 1993, amending the
20 vehicle and traffic law and the correction law relating to the suspen-
21 sion and revocation of driver’s licenses upon conviction of certain
22 drug-related offenses, section 8 as amended by chapter 382 of the laws
23 of 1997, section 9 as amended by section 27 of part E of chapter 58 of
24 the laws of 1998, are amended to read as follows:
25 [§ 8. The division of criminal justice services, in consultation with
26 the department of motor vehicles, shall prepare a report outlining the
27 implementation procedures of this act, including the method used to
28 obtain and record out-of-state offenses, as well as evaluating its over-
226 13001-04-9
1 all effectiveness. Such report shall be submitted to the governor, the
2 temporary president of the senate and the speaker of the assembly no
3 later than May 15, 1998.
4 In addition, such report shall include, but not be limited to, the
5 following information:
6 (1) the number of driver’s licenses that have been suspended pursuant
7 to the provisions of this act, and, of those, the number which involved
8 the use of a motor vehicle in violation of subdivision 4 of section 1192
9 of the vehicle and traffic law;
10 (2) the number of registrations that have been suspended pursuant to
11 the provisions of this act, and, of those, the number which involved the
12 use of a motor vehicle in violation of subdivision 4 of section 1192 of
13 the vehicle and traffic law;
14 (3) the number of restricted licenses that have been issued to persons
15 who would have otherwise had their driver’s license suspended pursuant
16 to the provisions of this act;
17 (4) the number of persons, by county, who have had their driver’s
18 license suspended pursuant to the provisions of this act;
19 (5) the number of persons, by county, who have had their registration
20 suspended pursuant to the provisions of this act;
21 (6) the number of persons who did not have a driver’s license and were
22 convicted of drug offenses;
23 (7) the number of persons convicted of each specific drug-related
24 offense covered by this act;
25 (8) the number of persons whose driver’s licenses were not suspended,
26 as reported by the sentencing court, due to a finding of compelling
27 circumstances, both statewide and by county;
227 13001-04-9
1 (9) a summary of other states' experiences, if any, regarding the
2 driver’s license suspension requirements;
3 (10) the administrative impact of the implementation of this act; and
4 (11) the profile characteristics of offenders subject to this sanc-
5 tion.]
6 § [9] 8. This act shall take effect September 30, 1993 and shall
7 apply to convictions based on offenses which occurred on or after such
8 date [and shall remain in full force and effect until October 1, 1999
9 when upon such date the provisions of this act shall be deemed repealed
10 and the provisions of law amended by this act shall revert to and be
11 read as if the provisions of this act had not been enacted].
12 § 2. This act shall take effect April 1, 1999.
13 PART DD
14 § 1. Section 214 of the vehicle and traffic law, as amended by chapter
15 568 of the laws of 1994, is amended to read as follows:
16 § 214. Proof of mailing of notice or order. The production of a copy
17 of a notice or order issued by the department, together with an elec-
18 tronically-generated record of entry of such order or notice upon the
19 appropriate driver’s license or registration file of the department and
20 an affidavit by an employee designated by the commissioner as having
21 responsibility for the issuance of such order or notice issued by the
22 department setting forth the procedure for the issuance and the mailing
23 of such notice or order at the address of such person on file with the
24 department or at the current address provided by the United States
25 postal service shall be presumptive evidence that such notice of suspen-
26 sion, revocation or order was produced and mailed in accordance with
27 such procedures. The foregoing procedure shall not preclude the use of
28 an affidavit of service by mail, a certificate of mailing or proof of
228 13001-04-9
1 certified or registered mail as proof of mailing of any such order or
2 notice.
3 § 2. Paragraph (b) of subdivision 3 of section 226 of the vehicle and
4 traffic law, as added by chapter 607 of the laws of 1993, is amended to
5 read as follows:
6 (b) Failure to answer or appear in accordance with the requirements of
7 this section and any regulations promulgated hereunder shall be deemed
8 an admission to the violation as charged, and an appropriate order may
9 be entered in the department’s records, and a fine consistent with the
10 provisions of this chapter and regulations of the commissioner may be
11 imposed by the commissioner or person designated by the commissioner.
12 Prior to entry of an order and imposition of a fine, the commissioner
13 shall notify such person by mail at the address of such person on file
14 with the department or at the current address provided by the United
15 States postal service in accordance with section two hundred fourteen of
16 this chapter: (i) of the violation charged; (ii) of the impending entry
17 of such order and fine; (iii) that such order and fine may be filed as a
18 judgment with the county clerk of the county in which the operator or
19 registrant is located; and (iv) that entry of such order and imposition
20 of such fine may be avoided by entering a plea or making an appearance
21 within thirty days of the sending of such notice. In no case shall such
22 an order and fine be entered and imposed more than two years after the
23 date of the alleged violation. Upon application in such manner and form
24 as the commissioner shall prescribe an order and fine shall be vacated
25 upon the ground of excusable default.
26 § 3. Paragraph b of subdivision 4 of section 227 of the vehicle and
27 traffic law, as amended by chapter 221 of the laws of 1985, such subdi-
229 13001-04-9
1 vision as renumbered by chapter 288 of the laws of 1989, is amended to
2 read as follows:
3 b. Unpaid fines may be recovered by the commissioner in a civil action
4 in the name of the commissioner. In addition, as an alternative to such
5 civil action, and provided that no appeal is pending, the commissioner
6 may file with the county clerk of the county in which the person resides
7 a final order of the commissioner containing the amount of the fine or
8 fines. The filing of such final order shall have the full force and
9 effect of a judgment duly docketed in the office of such clerk and may
10 be enforced in the same manner and with the same effect as that provided
11 by law in respect to execution issued against property upon judgments of
12 a court of record. No such civil action shall be commenced nor shall
13 such final order be filed until at least thirty days after the depart-
14 ment has posted by ordinary mail to the person at the address of such
15 person on file with the department or at the current address provided by
16 the United States postal service notice of the amount of such fine or
17 fines and that such fine or fines are due and owing.
18 § 4. Subdivision 6 of section 318 of the vehicle and traffic law is
19 amended to read as follows:
20 6. Notice of revocation pursuant to this section may be given to the
21 owner of a vehicle registered in this state or to a driver licensed in
22 this state, by mailing the same to such owner or licensee at the address
23 contained in the certificate of registration for the vehicle owned by
24 such person or to the address contained in his or her driving license or
25 to the current address provided by the United States postal service.
26 § 5. Subdivision 7 of section 510 of the vehicle and traffic law, as
27 amended by chapter 606 of the laws of 1993, is amended to read as
28 follows:
230 13001-04-9
1 7. Miscellaneous provisions. Except as expressly provided, a court
2 conviction shall not be necessary to sustain a revocation or suspension.
3 Revocation or suspension hereunder shall be deemed an administrative act
4 reviewable by the supreme court as such. Notice of revocation or
5 suspension, as well as any required notice of hearing, where the holder
6 is not present, may be given by mailing the same in writing to him at
7 the address contained in his or her license [or], certificate of regis-
8 tration, or at the current address provided by the United States postal
9 service, as the case may be. Proof of such mailing by certified mail to
10 the holder shall be presumptive evidence of the holder’s receipt and
11 actual knowledge of such notice. Attendance of witnesses may be
12 compelled by subpoena. Failure of the holder or any other person
13 possessing the license card or number plates, to deliver the same to the
14 suspending or revoking officer is a misdemeanor. Suspending or revoking
15 officers shall place such license cards and number plates in the custody
16 of the commissioner except where the commissioner shall otherwise
17 direct. If any person shall fail to deliver a license card or number
18 plates as provided herein, any police officer, bridge and tunnel officer
19 of the Triborough bridge and tunnel authority, or agent of the commis-
20 sioner having knowledge of such facts shall have the power to secure
21 possession thereof and return the same to the commissioner, and the
22 commissioner may forthwith direct any police officer, bridge and tunnel
23 officer of the Triborough bridge and tunnel authority, acting pursuant
24 to his special duties, or agent of the commissioner to secure possession
25 thereof and to return the same to the commissioner. Failure of the hold-
26 er or of any person possessing the license card or number plates to
27 deliver to any police officer, bridge and tunnel officer of the Tribor-
28 ough bridge and tunnel authority, or agent of the commissioner who
231 13001-04-9
1 requests the same pursuant to this subdivision shall be a misdemeanor.
2 Notice of revocation or suspension of any license or registration shall
3 be transmitted forthwith by the commissioner of motor vehicles to the
4 chief of police of the city or prosecuting officer of the locality in
5 which the person whose license or registration so revoked or suspended
6 resides. In case any license or registration shall expire before the end
7 of any period for which it has been revoked or suspended, and before it
8 shall have been restored as provided in this chapter, then and in that
9 event any renewal thereof may be withheld until the end of such period
10 of suspension or until restoration, as the case may be.
11 The revocation of a learner’s permit shall automatically cancel the
12 application for a license of the holder of such permit.
13 No suspension or revocation of a license or registration shall be made
14 because of a judgment of conviction if the suspending or revoking offi-
15 cer is satisfied that the magistrate who pronounced the judgment failed
16 to comply with subdivision one of section eighteen hundred seven of this
17 chapter. In case a suspension or revocation has been made and the
18 commissioner is satisfied that there was such failure, he shall restore
19 the license or registration or both as the case may be.
20 § 6. This act shall take effect April 1, 1999, provided, however, that
21 the amendments to subdivision 6 of section 318 of the vehicle and traf-
22 fic law made by section four of this act shall not affect the expiration
23 of such section and shall be deemed to expire therewith.
24 PART EE
25 § 1. Paragraph (d) of subdivision 3 of section 510-a of the vehicle
26 and traffic law, as added by chapter 550 of the laws of 1993, is amended
27 to read as follows:
232 13001-04-9
1 (d) A commercial driver’s license shall be suspended by the commis-
2 sioner:
3 (i) for a period of ninety days where the holder was found to have
4 operated a commercial motor vehicle, as defined in section five hundred
5 nine-p of this title, in violation of an out-of-service order as
6 provided for in the rules and regulations of the department of transpor-
7 tation;
8 (ii) for a period of one year if, during any ten-year period, the
9 driver is found to have committed two such violations in separate inci-
10 dents;
11 (iii) for a period of three years if, during any ten-year period, the
12 driver is found to have committed three or more such violations in sepa-
13 rate incidents;
14 (iv) for a period of one hundred and eighty days if the driver is
15 found to have operated a commercial vehicle, as defined in section five
16 hundred nine-p of this title, in violation of an out-of-service order,
17 as provided for in the rules and regulations of the department of trans-
18 portation, while transporting hazardous materials required to be plac-
19 arded under the Hazardous Material Transportation Act (49 U.S.C. App.
20 1801-1813) , or while operating a motor vehicle designed to transport
21 more than fifteen passengers, including the driver;
22 (v) for a period of three years if, during any ten-year period, the
23 driver is found to have committed two or more such violations of out-of-
24 service orders in separate incidents, while transporting hazardous mate-
25 rials required to be placarded under the Hazardous Materials Transporta-
26 tion Act, or while operating a motor vehicle designed to transport more
27 than fifteen passengers, including the driver.
233 13001-04-9
1 § 2. Subparagraph (v) of paragraph d of subdivision 2 of section 140
2 of the transportation law, as added by chapter 173 of the laws of 1990,
3 is amended to read as follows:
4 (v) (a) Operation of any motor vehicle after it has been placed out-
5 of-service as provided for in the department’s safety rules and regu-
6 lations shall constitute a misdemeanor and shall be punishable by a fine
7 of not less than one thousand dollars nor more than two thousand five
8 hundred dollars, or by imprisonment for not more than ninety days, or by
9 both such fine and imprisonment upon the first offense, and upon being
10 found guilty of a second or subsequent offense within eighteen months by
11 a fine of not less than two thousand five hundred dollars nor more than
12 five thousand dollars or by imprisonment for not more than one hundred
13 eighty days or by both such fine and imprisonment.
14 (b) Any person, corporation, limited liability company or business
15 entity, joint stock association, partnership, person or any officer or
16 agent thereof, who shall require or permit any person to operate a motor
17 vehicle after it has been placed out of service as provided for in the
18 department’s safety rules and regulations shall be subject to a fine of
19 not less than two thousand five hundred dollars and not more than ten
20 thousand dollars.
21 § 3. This act shall take effect 90 days after it shall have become a
22 law.
23 PART FF
24 § 1. Section 3 of chapter 886 of the laws of 1972, amending the
25 correction law and the penal law relating to prisoner furloughs in
26 certain cases and the crime of absconding therefrom, as amended by chap-
27 ter 435 of the laws of 1997, is amended to read as follows:
234 13001-04-9
1 § 3. This act shall take effect 60 days after it shall have become a
2 law and shall remain in effect until September 1, [1999] 2001.
3 § 2. Section 20 of chapter 261 of the laws of 1987, amending chapters
4 50, 53 and 54 of the laws of 1987, the correction law, the penal law and
5 other chapters and laws relating to correctional facilities, as amended
6 by chapter 435 of the laws of 1997, is amended to read as follows:
7 § 20. This act shall take effect immediately except that section thir-
8 teen of this act shall expire and be of no further force or effect on
9 and after September 1, [1999] 2001 and shall not apply to persons
10 committed to the custody of the department after such date, and provided
11 further that the commissioner of correctional services shall report each
12 January first and July first during such time as the earned eligibility
13 program is in effect, to the chairmen of the senate crime and correction
14 committee, the senate codes committee, the assembly correction commit-
15 tee, and the assembly codes committee, the standards in effect for
16 earned eligibility during the prior six-month period, the number of
17 inmates subject to the provisions of earned eligibility, the number who
18 actually received certificates of earned eligibility during that period
19 of time, the number of inmates with certificates who are granted parole
20 upon their first consideration for parole, the number with certificates
21 who are denied parole upon their first consideration, and the number of
22 individuals granted and denied parole who did not have earned eligibil-
23 ity certificates.
24 § 3. Subdivision (q) of section 427 of chapter 55 of the laws of 1992,
25 amending the tax law and other laws relating to taxes, surcharges, fees
26 and funding, as amended by chapter 435 of the laws of 1997, is amended
27 to read as follows:
235 13001-04-9
1 (q) the provisions of section two hundred eighty-four of this act
2 shall remain in effect until September 1, [1999] 2001 and be applicable
3 to all persons entering the program on or before August 31, [1999] 2001.
4 § 4. Section 10 of chapter 339 of the laws of 1972, amending the
5 correction law and the penal law relating to inmate work release,
6 furlough and leave, as amended by chapter 435 of the laws of 1997, is
7 amended to read as follows:
8 § 10. This act shall take effect 30 days after it shall have become a
9 law and shall remain in effect until September 1, [1999] 2001, and
10 provided further that the commissioner of correctional services shall
11 report each January first, and July first, to the chairman of the senate
12 crime victims, crime and correction committee, the senate codes commit-
13 tee, the assembly correction committee, and the assembly codes commit-
14 tee, the number of eligible inmates in each facility under the custody
15 and control of the commissioner who have applied for participation in
16 any program offered under the provisions of work release, furlough, or
17 leave, and the number of such inmates who have been approved for partic-
18 ipation.
19 § 5. Subdivision (c) of section 46 of chapter 60 of the laws of 1994
20 relating to certain provisions which impact upon expenditure of certain
21 appropriations made by chapter 50 of the laws of 1994 enacting the state
22 operations budget, as amended by chapter 435 of the laws of 1997, is
23 amended to read as follows:
24 (c) sections forty-one and forty-two of this act shall expire Septem-
25 ber 1, [1999] 2001; provided, that the provisions of section forty-two
26 of this act shall apply to inmates entering the work release program on
27 or after such effective date; and
236 13001-04-9
1 § 6. Section 5 of chapter 554 of the laws of 1986, amending the
2 correction law and the penal law relating to providing for community
3 treatment facilities and establishing the crime of absconding from the
4 community treatment facility, as amended by chapter 435 of the laws of
5 1997, is amended to read as follows:
6 § 5. This act shall take effect immediately and shall remain in full
7 force and effect until September 1, [1999] 2001, and provided further
8 that the commissioner of correctional services shall report each January
9 first and July first during such time as this legislation is in effect,
10 to the chairmen of the senate crime and correction committee, the senate
11 codes committee, the assembly correction committee, and the assembly
12 codes committee, the number of individuals who are released to community
13 treatment facilities during the previous six-month period, including the
14 total number for each date at each facility who are not residing within
15 the facility, but who are required to report to the facility on a daily
16 or less frequent basis.
17 § 7. Subdivision h of section 74 of chapter 3 of the laws of 1995
18 relating to the incarceration fee, as amended by chapter 435 of the laws
19 of 1997, is amended to read as follows:
20 h. Section fifty-two of this act shall be deemed to have been in full
21 force and effect on and after April 1, 1995; provided, however, that the
22 provisions of section 189 of the correction law, as amended by section
23 fifty-five of this act, subdivision 5 of section 60.35 of the penal law,
24 as amended by section fifty-six of the act, and section fifty-seven of
25 this act shall expire September 1, [1999] 2001, when upon such date the
26 amendments to the correction law and penal law made by sections fifty-
27 five and fifty-six of this act shall revert to and be read as if the
28 provisions of this act had not been enacted; provided, further, however,
237 13001-04-9
1 that sections sixty-two, sixty-three and sixty-four of this act shall be
2 deemed to have been in full force and effect on and after March 1, 1995
3 and shall be deemed repealed April 1, 1996 and upon such date the
4 provisions of subsection (e) of section 9110 of the insurance law and
5 subdivision 2 of section 89-d of the state finance law shall revert to
6 and be read as set out in law on the date immediately preceding the
7 effective date of sections sixty-two and sixty-three of this act;
8 § 8. Section 7 of chapter 79 of the laws of 1989, amending the
9 correction law and other laws relating to release and supervision of
10 persons serving a definite sentence, as amended by chapter 435 of the
11 laws of 1997, is amended to read as follows:
12 § 7. This act shall take effect immediately and shall remain in effect
13 until September 1, [1999] 2001, at which time article 12 of the
14 correction law and section 257-b of the executive law, as added, respec-
15 tively, by sections one and two of this act, shall be repealed. In addi-
16 tion, on such date the amendatory deletions and additions made by
17 sections three through six of this act shall likewise be repealed.
18 § 9. Subdivision (z) of section 427 of chapter 55 of the laws of 1992,
19 amending the tax law and other laws relating to taxes, surcharges, fees
20 and funding, as amended by chapter 435 of the laws of 1997, is amended
21 to read as follows:
22 (z) the provisions of section three hundred eighty-one of this act
23 shall apply to all persons supervised by the division of parole on or
24 after the effective date of this act, provided however, that subdivision
25 9 of section 259-a of the executive law, as added by section three
26 hundred eighty-one of this act, shall expire on September 1, [1999]
27 2001;
238 13001-04-9
1 § 10. Subdivision (aa) of section 427 of chapter 55 of the laws of
2 1992, amending the tax law and other laws relating to increases in
3 taxes, fees and charges, as amended by chapter 435 of the laws of 1997,
4 is amended to read as follows:
5 (aa) the provisions of sections three hundred eighty-two, three
6 hundred eighty-three and three hundred eighty-four of this act shall
7 expire on September 1, [1999] 2001;
8 § 11. Section 12 of chapter 907 of the laws of 1984 amending the
9 correction law, the New York City criminal court act and the executive
10 law, relating to prison and jail housing and alternatives to detention
11 and incarceration programs, as amended by chapter 435 of the laws of
12 1997, is amended to read as follows:
13 § 12. This act shall take effect immediately, except that the
14 provisions of sections one through ten of this act shall remain in full
15 force and effect until September 1, [1999] 2001 on which date those
16 provisions shall be deemed to be repealed.
17 § 12. Section 6 of chapter 713 of the laws of 1988 amending the vehi-
18 cle and traffic law, relating to the ignition interlock device program,
19 as amended by chapter 150 of the laws of 1997, is amended to read as
20 follows:
21 § 6. This act shall take effect on the first day of April next
22 succeeding the date on which it shall have become a law; provided,
23 however, that effective immediately, the addition, amendment or repeal
24 of any rule or regulation necessary for the implementation of the fore-
25 going sections of this act on their effective date is authorized and
26 directed to be made and completed on or before such effective date and
27 shall remain in full force and effect until the first day of July,
239 13001-04-9
1 [1999] 2001 when upon such date the provisions of this act shall be
2 deemed repealed.
3 § 13. This act shall take effect immediately.
4 PART GG
5 § 1. The state finance law is amended by adding a new section 99-g to
6 read as follows:
7 § 99-g. Statewide public safety communications account. 1. There is
8 hereby established in the joint custody of the comptroller and the
9 commissioner of taxation and finance, a special fund to be known as the
10 "statewide public safety communications account". Such account shall
11 consist of all moneys appropriated, credited or transferred thereto from
12 any other fund or source pursuant to law, including revenue received
13 pursuant to the division of state police’s site manager contract. Moneys
14 of the account following appropriation by the legislature and allocation
15 by the director of the budget, shall be available to pay from such
16 account for:
17 (a) development and construction of a statewide public safety communi-
18 cations system including consultant costs associated with such design
19 and development;
20 (b) communications equipment;
21 (c) equipment used for the purpose of determining and displaying the
22 telephone number and location of a wireless 911 telephone call, and any
23 other costs associated with the provision of such service;
24 (d) the design, construction, and maintenance of 911 public safety
25 answering points; and
26 (e) costs associated with the provision of radio and telephone
27 service.
240 13001-04-9
1 2. Any moneys in such account, at the discretion of the state comp-
2 troller, shall be invested in securities and obligations defined by
3 sections ninety-eight and ninety-eight-a of this article. Any income or
4 interest from such investment shall be credited to such account.
5 § 2. This act shall take effect April 1, 1999.
6 EDUCATION, LABOR AND FAMILY ASSISTANCE
7 PART HH
8 § 1. The opening paragraph of section 207 of the education law is
9 designated subdivision 1 and a new subdivision 2 is added to read as
10 follows:
11 2. Notwithstanding subdivision one of this section or any other law
12 to the contrary, in the event no specific statutory authorization has
13 been provided for a proposed rule or regulation of the commissioner or
14 the regents that has a projected additional cost to the state govern-
15 ment, local governments or the university of the state of New York, such
16 proposed rule or regulation shall be submitted for review and approval
17 by the state director of regulatory reform before the commissioner or
18 the regents may submit the rule or regulation for publication in the
19 state register. Such cost implications shall be presented in a regulato-
20 ry impact statement or revised regulatory impact statement prepared
21 pursuant to section two hundred two-a of the state administrative proce-
22 dure act, and submitted by the department to the state director of regu-
23 latory reform along with the text of the proposed or revised rule. In
24 the event any rule or regulation adopted by the regents or the commis-
25 sioner which is determined not to require review and approval by the
26 state director of regulatory reform, pursuant to the conditions stated
27 in this section, is subsequently identified by the state director of
28 regulatory reform as imposing such additional cost, such rule or regu-
241 13001-04-9
1 lation shall cease to be mandatory in effect and shall become voluntary
2 in operation.
3 § 2. Section 305 of the education law is amended by adding a new
4 subdivision 28 to read as follows:
5 28. The commissioner shall promulgate regulations prescribing the
6 methodology for establishing a multi-year cost allowance for the purpose
7 of computation of building aid to school districts and a procedure for
8 school districts to appeal the determination that a building has not
9 been adequately maintained, as required by subparagraphs one and three
10 of paragraph a of subdivision six of section thirty-six hundred two of
11 this chapter. Such methodology shall include the development of a build-
12 ing replacement cost allowance schedule for the construction of new
13 buildings and additions, and the replacement of the major building
14 systems of a building over its projected useful life. For purposes of
15 this subdivision, "major building systems" shall be as defined in
16 subparagraph five of paragraph a of subdivision six of section thirty-
17 six hundred two of this chapter.
18 § 3. Subdivisions 1 and 3 of section 408 of the education law, as
19 amended by chapter 414 of the laws of 1972 and the opening paragraph of
20 subdivision 1 as amended by chapter 315 of the laws of 1990, are amended
21 to read as follows:
22 1. No schoolhouse shall hereafter be erected, purchased, repaired,
23 enlarged or remodeled nor shall the advertisement for bids for the
24 execution of the plans and specifications for such schoolhouses be
25 placed, in any school district except in a city school district in a
26 city having [seventy thousand] a million inhabitants or more, at an
27 expense which shall exceed [one hundred] ten thousand dollars, until the
28 plans and specifications shall have been submitted to the commissioner
242 13001-04-9
1 of education and his approval endorsed thereon. Such plans and specifi-
2 cations shall show in detail the ventilation, heating and lighting of
3 such buildings.
4 In the case of a school district in a city having seventy thousand
5 inhabitants or more, all the provisions previously set forth in this
6 subdivision shall apply, except that the commissioner may waive the
7 requirement for submission of plans and specifications and substitute
8 therefor the requirement for submission of an outline of such plans and
9 specifications for his review. Such outline shall be in a form which he
10 may prescribe from time to time.
11 In either case, the commissioner may, in his discretion, review plans
12 and specifications for projects estimated at an expense of less than
13 [one hundred] ten thousand dollars.
14 In the case of a school district in a city having a million inhabit-
15 ants or more, all of the provisions previously set forth in this subdi-
16 vision shall apply, except that such school district shall only be
17 required to submit [an outline of the] preliminary plans and specifica-
18 tions for new buildings and additions to the commissioner of education
19 for his [information where a schoolhouse is to be erected in conjunction
20 with the development of a project to be developed under the provisions
21 of article two or five of the private housing finance law and where both
22 the school and the project are to have rights or interests in the same
23 land, regardless of the similarity or equality thereof, including fee
24 interests, easements, space rights or other rights or interests] review.
25 3. The commissioner of education shall approve the plans and specifi-
26 cations, heretofore or hereafter submitted pursuant to this section, for
27 the erection or purchase of any school building or addition thereto or
28 remodeling thereof on the site or sites selected therefor pursuant to
243 13001-04-9
1 this chapter, if such plans conform to the requirements and provisions
2 of this chapter and the regulations of the commissioner adopted pursuant
3 to this chapter in all other respects; provided, however, that the
4 commissioner of education shall not approve the plans for the erection
5 or purchase of any school building or addition thereto unless the site
6 has been selected with reasonable consideration of the following
7 factors; its place in a comprehensive, [long-term school building
8 program] five-year school facility capital plan; area required for
9 outdoor educational activities; educational adaptability, environment,
10 accessibility; soil conditions; initial and ultimate cost.
11 § 4. Subdivision 1 of section 409 of the education law, as amended by
12 chapter 124 of the laws of 1962 and such subdivision as designated by
13 chapter 565 of the laws of 1994, is amended to read as follows:
14 1. All school buildings of common, union free, central, central high
15 school and city school districts [other than city school districts of
16 cities having one hundred twenty-five thousand inhabitants or more] and
17 boards of cooperative educational services shall comply with such regu-
18 lations as the commissioner [of education] shall adopt from time to time
19 for the purpose of insuring the health and safety of pupils and staff in
20 relation to proper heating, lighting, ventilation, sanitation and
21 health, fire and accident protection.
22 § 5. Section 409-d of the education law, as added by chapter 196 of
23 the laws of 1992, is renumbered section 409-f.
24 § 6. Section 412 of the education law, subdivision 1 as amended by
25 chapter 474 of the laws of 1996, is amended to read as follows:
26 § 412. Condemnation or closure of [schoolhouse and] instructional
27 school building; erection of new [schoolhouse] school building in place
28 thereof. 1. [A] Notwithstanding any other provision of law to the
244 13001-04-9
1 contrary, the commissioner shall be authorized to order the closing of a
2 school building of any school district or board of cooperative educa-
3 tional services which is used for instruction, upon a finding that a
4 hazardous condition exists in such school building in violation of
5 applicable building health or safety codes or regulations that threatens
6 the health and/or safety of students or staff. Such order shall be
7 delivered to a trustee or member of the board of education of the school
8 district or member of the board of cooperative educational services,
9 provided that in the case of a city school district in a city having a
10 population of one million or more inhabitants such order shall be deliv-
11 ered to the chancellor of the city district. Such order shall state the
12 date on which it shall take effect and the school building shall close,
13 and shall specify the repairs, reconstruction or rehabilitation neces-
14 sary to render the building fit for occupancy. Upon the effective date
15 of such order, it shall be the duty of the local school authorities to
16 arrange for the education of the students formerly attending such school
17 at other locations. Notwithstanding any other provision of law to the
18 contrary, the attendance of a student attending school in a school
19 building that has been ordered closed by the commissioner pursuant to
20 this subdivision shall not be counted, during the period the building is
21 closed, for purposes of computing the apportionment of state aid to the
22 school district or for purposes of determining compliance with the
23 compulsory attendance law. If the commissioner finds upon further exam-
24 ination that the district has eliminated the hazardous condition so that
25 a threat to the health or safety of students or staff no longer exists
26 in the building or a part thereof, the commissioner shall forthwith
27 revoke the closure order in whole or in part.
245 13001-04-9
1 2. In the alternative, the commissioner, or a district superintendent
2 [,] upon the direction of the commissioner, may make an order condemning
3 a school [house] building which is used for instruction, if he or she
4 finds upon examination that such [schoolhouse] school building is wholly
5 unfit for use and not worth repairing. He or she shall deliver such
6 order to a trustee or member of the board of education of the district
7 or the board of cooperative educational services, provided that in the
8 case of a city school district in a city having a population of one
9 million or more inhabitants such order shall be delivered to the chan-
10 cellor of the city district, and transmit a copy thereof to the commis-
11 sioner or to the district superintendent as appropriate. He or she shall
12 also state in such order the date on which it shall take effect and the
13 sum which in his or her opinion will be necessary to erect a school
14 building available to the needs of the district.
15 [2. Immediately] 3. a. In the case of a common, union free, central,
16 central high school or city school district in a city having a popu-
17 lation of less than one hundred twenty-five thousand inhabitants, upon
18 the receipt of [said] a condemnation order issued pursuant to subdivi-
19 sion two of this section, the trustees or board of education of such
20 district shall call a special meeting of the voters of said district, to
21 consider the question of building a new [schoolhouse] school building
22 therein. Such meeting shall have power to determine the size of said
23 [schoolhouse] school building, the material to be used in its erection,
24 and to vote a tax to build the same. But such meeting shall have no
25 power to reduce the estimate made by the district superintendent
26 or the commissioner aforesaid by more than twenty-five per centum of
27 such estimate.
246 13001-04-9
1 [3. And where] b. Where no tax for building such [schoolhouse] school
2 building shall have been voted by such district in accordance with para-
3 graph a of this subdivision within thirty days from the time of holding
4 the first meeting to consider the question, it shall be the duty of the
5 trustees or board of education of such district to contract for the
6 building of a [schoolhouse] school building capable of accommodating the
7 children of the district, and to levy a tax to pay for the same, which
8 tax shall not exceed the sum estimated as necessary by the district
9 superintendent or the commissioner aforesaid, and which shall not be
10 less than such estimated sum by more than twenty-five per centum there-
11 of. But such estimated sum may be increased at any subsequent school
12 meeting legally held in the district.
13 c. In the case of a city school district in a city having a population
14 of one hundred twenty-five thousand inhabitants or more, upon issuance
15 of an order of the commissioner condemning a school building pursuant to
16 this section , it shall be the duty of the board of education, the
17 superintendent of schools or the chancellor of the city district in the
18 case of the city school district of the City of New York and the common
19 council , mayor, city manager or other governing body or officer of the
20 city government, to make immediate arrangements for a suitable school
21 facility or facilities to accommodate the children of the school build-
22 ing so condemned and to arrange for the appropriation of funds, or the
23 re-prioritizing of the district’s long-range facilities plan to make use
24 of existing appropriations, that is necessary to arrange for other
25 facilities to replace the condemned building.
26 § 7. Subparagraph 7 of paragraph b of subdivision 4 of section 1950 of
27 the education law, as amended by chapter 602 of the laws of 1994, the
28 opening paragraph as amended by section 12 of part A of chapter 436 of
247 13001-04-9
1 the laws of 1997, clauses (i) and (ii) as amended by chapter 474 of the
2 laws of 1996, is amended to read as follows:
3 (7) Each component school district shall transmit the resolution
4 either approving or disapproving the board of cooperative educational
5 services' tentative administrative budget no later than one business day
6 after the adoption of such resolution. The board of cooperative educa-
7 tional services shall, no later than the fifteenth day of May, adopt the
8 final program, capital and administrative budgets for the ensuing year.
9 Except as provided in paragraph d of this subdivision, subparagraph (a)
10 of paragraph p of this subdivision, and subdivision one of section nine-
11 teen hundred fifty-one of this article, such administrative and capital
12 budgets, when so adopted [, after deducting state aid applicable there-
13 to,] shall be a charge against all of the component school districts in
14 the supervisory district and each component school district’s propor-
15 tionate share shall be determined by the board of cooperative educa-
16 tional services according to weighted average daily attendance or
17 according to true valuation or according to resident public school
18 district enrollment as defined in paragraph n of subdivision one of
19 section thirty-six hundred two of this chapter except that only one
20 method shall be applied among the component districts of a board of
21 cooperative educational services in any year, unless otherwise provided
22 by law. In a merged supervisory district in the county of Suffolk each
23 component school district’s proportionate share of such administrative
24 and capital budgets may be determined according to weighted average
25 daily attendance, according to true valuation, or according to using the
26 weighted average daily attendance for a certain percentage of the cost
27 and true valuation for a certain percentage of administrative and capi-
28 tal costs. Such costs, in a merged supervisory district in the county of
248 13001-04-9
1 Suffolk, apportioned by using weighted average daily attendance and true
2 valuation shall be subject to adjustment by the board of cooperative
3 educational services in a manner that will minimize the annual change in
4 costs for the greatest number of component districts. Such percentages
5 shall be established by the board of cooperative educational services
6 upon the approval of the component districts subject to the final
7 approval of the commissioner. It is further provided that such adminis-
8 trative budget approved by the board shall be subject to review by the
9 commissioner to determine: (i) the level of administrative savings
10 achieved by the merger and (ii) if such administrative savings equals or
11 exceeds the level identified by the merger planning task force appointed
12 by the district superintendent. If the board of cooperative educational
13 services determines to change the method of apportioning administrative
14 costs and capital expenses from that followed in the previous year, such
15 determination may be made only if the board of cooperative educational
16 services has conducted a hearing at a regular or special meeting of such
17 board which all members of boards of education and school trustees have
18 been invited to attend, such hearing to be held at least thirty days
19 prior to the annual meeting of members of boards of education and school
20 trustees.
21 (i) The three methods of apportionment of administrative and capital
22 expenses are as follows: (1) in accordance with the ratio which the
23 component school district’s total full or true valuation in effect at
24 the time of the adoption of the budget bears to the total true or full
25 valuation of all of the component school districts within the board of
26 cooperative educational services, (2) by dividing the total amount of
27 such administrative and capital expenses by the total weighted average
28 daily attendance of pupils residing in all component school districts
249 13001-04-9
1 contained within the board of cooperative educational services and
2 attending a public school and multiplying by the weighted average daily
3 attendance of such resident pupils in each of the component school
4 districts, or (3) by dividing the total amount of such administrative
5 and capital expenses by the total resident public school district
6 enrollment of all component school districts contained within the board
7 of cooperative educational services and multiplying by the resident
8 public school district enrollment of the component school districts. In
9 addition, in a merged supervisory district in the county of Suffolk,
10 where a combination of the first and second methods could be applied as
11 provided in the opening paragraph of this subparagraph may be utilized.
12 (ii) If the board of cooperative educational services chooses to
13 apportion administrative costs and capital expenses according to full or
14 true valuation, special act school districts authorized to receive state
15 aid in accordance with chapter five hundred sixty-six of the laws of
16 nineteen hundred sixty-seven, as amended, shall have their full value
17 for purposes of this section computed by multiplying the resident
18 weighted average daily attendance by the state average full valuation
19 per pupil as established by the commissioner for the year in which the
20 budget is adopted. The school authorities of each component school
21 district shall add such amount to the budget of such component districts
22 and shall pay such amount to the treasurer of the board of cooperative
23 educational services and shall be paid out by the treasurer upon the
24 orders of the board of cooperative educational services issued and
25 executed in pursuance of a resolution of said board.
26 (iii) In the event a component school district withdraws from a board
27 of cooperative educational services supervisory district pursuant to
28 subdivision five-a of this section, such school district shall continue
250 13001-04-9
1 to be responsible for its share of the capital expenses incurred while
2 it was a component of the board of cooperative educational services,
3 including but not limited to payments to the dormitory authority pursu-
4 ant to an agreement executed by such school district pursuant to para-
5 graph a of subdivision thirteen of this section, payments for a capital
6 project pursuant to an agreement executed by such school district pursu-
7 ant to paragraph a of subdivision fourteen of this section, and rental
8 payments for leases entered into or renewed while such district was a
9 component district. Such capital expenses shall be apportioned to such
10 district in the manner prescribed in this subparagraph as if it had
11 continued to be a component district, provided however that such
12 district shall not be liable for capital expenses incurred for a capital
13 project for which such district did not execute an agreement pursuant to
14 subdivisions thirteen or fourteen of this section or for rental payments
15 on leases executed or renewed after it notified the board of cooperative
16 educational services of its withdrawal, unless such district subsequent-
17 ly rejoins the board of cooperative educational services as a component
18 district.
19 § 8. Paragraph d of subdivision 4 of section 1950 of the education
20 law, as amended by chapter 474 of the laws of 1996, is amended to read
21 as follows:
22 d. (1) [Aidable] Approvable shared services. At the request of compo-
23 nent school districts, and with the approval of the commissioner,
24 provide any of the following services on a cooperative basis: school
25 nurse teacher, attendance supervisor, supervisor of teachers, dental
26 hygienist, psychologist, teachers of art, music, physical education,
27 career education subjects, guidance counselors, operation of special
28 classes for students with disabilities, as such term is defined in arti-
251 13001-04-9
1 cle eighty-nine of this chapter; pupil and financial accounting service
2 by means of mechanical equipment; maintenance and operation of cafeteria
3 or restaurant service for the use of pupils and teachers while at
4 school, and such other services as the commissioner may approve. Such
5 cafeteria or restaurant service may be used by the community for school
6 related functions and activities and to furnish meals to the elderly
7 residents of the district, sixty years of age or older. Utilization by
8 elderly residents or school related groups shall be subject to the
9 approval of the board of education. Charges shall be sufficient to bear
10 the direct cost of preparation and serving of such meals, exclusive of
11 any other available reimbursements.
12 (2) [Certain services prohibited. Commencing with the nineteen
13 hundred ninety-seven--ninety-eight school year, the commissioner shall
14 not be authorized to approve as an aidable shared service pursuant to
15 this subdivision any cooperative maintenance services or municipal
16 services, including but not limited to, lawn mowing services and heat-
17 ing, ventilation or air conditioning repair or maintenance or trash
18 collection, or any other municipal services as defined by the commis-
19 sioner. On and after the effective date of this paragraph, the commis-
20 sioner shall not approve, as an aidable shared service, any new cooper-
21 ative maintenance or municipal services for the nineteen hundred
22 ninety-six--ninety-seven school year, provided that the commissioner may
23 approve the continuation of such services for one year if provided in
24 the nineteen hundred ninety-five--ninety-six school year.
25 (3)] Requests for shared services; operating plan; required notice.
26 Requests for such shared services shall be filed by component school
27 districts with the board of cooperative educational services not later
28 than the first day of February of each year, provided that such requests
252 13001-04-9
1 shall not be binding upon the component school district. The board of
2 cooperative educational services shall submit its proposed annual oper-
3 ating plan for the ensuing school year to the department for approval
4 not later than the fifteenth day of February of each year. Such board
5 shall, through its executive officer, notify each component school
6 district on or before the tenth day of March concerning the services
7 which have been approved by the commissioner to be made available for
8 the ensuing school year. Such notice shall set forth the local uniform
9 cost of each such service, based on (i) anticipated participation in the
10 ensuing school year, or (ii) participation in the current year, or (iii)
11 a two or three year average including participation in the current year,
12 which unit cost shall be the same for all participating component
13 districts and shall be based upon a uniform methodology approved annual-
14 ly by at least three-quarters of the participating component school
15 districts after consultation by local school officials with their
16 respective boards; provided, however, such unit cost shall be subject to
17 final adjustment for programs for students with disabilities based on
18 actual participation in accordance with regulations of the commissioner.
19 Notwithstanding the determination of the local uniform unit cost method-
20 ology selected in accordance with this paragraph, each board of cooper-
21 ative education services shall annually report to the commissioner the
22 budgeted unit cost and, when available, the actual unit cost of such
23 programs and services, in accordance with both the local uniform unit
24 cost methodology and a statewide uniform unit cost methodology
25 prescribed by the commissioner by regulation, where the budgeted state-
26 wide unit cost shall be based on the anticipated participation in the
27 ensuing year and the actual statewide unit cost shall be based on actual
28 participation through the end of each year.
253 13001-04-9
1 [(4)] (3) Contracts for shared services; allocation of costs. Each
2 component school district shall on or before the first day of May
3 following such notification notify the board of cooperative educational
4 services of its intention to participate or not to participate in such
5 shared services and the specific services which such district elects to
6 utilize. Each participating component school district shall be required
7 to pay the board of cooperative educational services for the cost of the
8 services set forth in such notification, except for adjustments caused
9 by subsequent unanticipated changes in the district’s enrollment. The
10 board of cooperative educational services shall enter into contracts
11 with its component school districts for such requested services. A copy
12 of each executed contract for such purpose shall be filed with the
13 commissioner by the board of cooperative educational services on or
14 prior to the first day of August of each year. Notwithstanding the
15 provisions of paragraph b of this subdivision, any component school
16 district which does not elect to participate in any such specific coop-
17 erative services authorized under this paragraph shall not be required
18 to pay any share of the moneys provided in the budget as salaries of
19 teachers or other personnel employed in providing such service, for
20 equipment and supplies for such service or for transportation of pupils
21 to and from the place where such service is maintained. Provided,
22 further, that a board of cooperative educational services may allocate
23 the cost of such services to component school districts in accordance
24 with terms agreed upon between such board and three-quarters of the
25 boards of education and trustees of local school districts participating
26 in the service.
27 [(5)] (4) Operating plan and budget; unanticipated shared services.
28 The board of cooperative educational services shall submit to the
254 13001-04-9
1 commissioner on or before the first day of June an operating plan and
2 budget based upon the request for services which it has received from
3 its component school districts. Such submission shall include the budg-
4 eted unit cost of programs and services based on both the local and the
5 statewide uniform unit cost methodologies for each program and service
6 offered by the board of cooperative educational services. A board of
7 cooperative educational services which receives requests for unantic-
8 ipated shared services subsequent to the adoption of its budget shall
9 submit an amended operating plan including such additional shared
10 services to the commissioner, together with a statement from the chief
11 school administrator of each school district which has requested such
12 services indicating the availability of funds in the budget of the
13 school district to pay for such district’s share of the cost of such
14 additional services. Such amended plan shall be submitted in the manner
15 and form prescribed by regulations of the commissioner. The board of
16 cooperative educational services shall allocate the cost of providing
17 such additional shared services among the component school districts
18 which have requested such services, and shall contract with the compo-
19 nent school districts for such services. A copy of each contract for
20 this purpose shall be filed by the board of cooperative educational
21 services with the commissioner not more than thirty days from its
22 execution. An annual program report and evaluation for each school year
23 as prescribed by the commissioner, shall be submitted by the board of
24 cooperative educational services to the commissioner on or before the
25 first day of September following such school year.
26 § 9. Subparagraph 4 of paragraph (bb) of subdivision 4 of section 1950
27 of the education law is REPEALED, and subparagraphs 5 and 6 are renum-
28 bered subparagraphs 4 and 5.
255 13001-04-9
1 § 10. Subdivision 5 of section 1950 of the education law, as amended
2 by chapter 53 of the laws of 1981, paragraph a as amended by chapter 474
3 of the laws of 1996 and paragraph b as amended by chapter 53 of the laws
4 of 1990, is amended to read as follows:
5 5. Apportionment of BOCES aid payable in the nineteen hundred nine-
6 ty-nine --two thousand and prior school years. a. Upon application by a
7 board of cooperative educational services, there shall be apportioned
8 and paid from state funds to each board of cooperative educational
9 services, for aid payable in the nineteen hundred ninety-nine--two thou-
10 sand and prior school years, an amount which shall be the product of the
11 approved cost of services actually incurred during the base year multi-
12 plied by the sharing ratio for cooperative educational services aid
13 which shall equal the greater of: (i) an amount equal to one minus the
14 quotient expressed as a decimal to three places without rounding of
15 eight mills divided by the tax rate of the local district computed upon
16 the actual valuation of taxable property, as determined pursuant to
17 subdivision one of section thirty-six hundred two of this chapter and
18 notwithstanding section three thousand six hundred three, expressed in
19 mills to the nearest tenth as determined by the commissioner, provided,
20 however, that where services are provided to a school district which is
21 included within a central high school district or to a central high
22 school district, such amount shall equal one minus the quotient
23 expressed as a decimal to three places without rounding of three mills
24 divided by the tax rates, expressed in mills to the nearest tenth, of
25 such districts, as determined by the commissioner or (ii) the aid ratio
26 of each school district for the current year, which shall be such compo-
27 nent school district’s board of cooperative educational services aid
28 ratio and which shall be not less than thirty-six percent converted to
256 13001-04-9
1 decimals and shall be not more than ninety percent converted to deci-
2 mals. For the purposes of this paragraph, the tax rate for the central
3 high school district shall be the amount of tax raised by the common and
4 union free school districts included within the central high school
5 district for the support of the central high school district divided by
6 the actual valuation of the central high school district. The tax rate
7 for each common or union free school district shall be the amount raised
8 for the support of such common or union free school district, exclusive
9 of the amount raised for the central high school district, divided by
10 such actual valuation of such common or union free school district.
11 b. The cost of services herein referred to shall be the amount allo-
12 cated to each component school district by the board of cooperative
13 educational services to defray expenses of such board, except that that
14 part of the salary paid any teacher, supervisor or other employee of the
15 board of cooperative educational services which is in excess of thirty
16 thousand dollars shall not be such an approved expense, and except also
17 that administrative and clerical expenses shall not exceed ten percent
18 of the total expenses for purposes of this computation. Any gifts,
19 donations or interest earned by the board of cooperative educational
20 services or on behalf of the board of cooperative educational services
21 by the dormitory authority or any other source shall not be deducted in
22 determining the cost of services allocated to each component school
23 district. The expense of transportation provided by the board of cooper-
24 ative educational services pursuant to paragraph q of subdivision four
25 of this section shall be eligible for aid apportioned pursuant to subdi-
26 vision seven of section thirty-six hundred two of this chapter and no
27 board of cooperative educational services transportation expense shall
28 be an approved cost of services for the computation of aid under this
257 13001-04-9
1 subdivision. Transportation expense pursuant to paragraph q of subdivi-
2 sion four of this section shall be included in the computation of the
3 ten percent limitation on administrative and clerical expenses.
4 c. The "tax rate" as herein referred to shall not include a special
5 tax levied for debt service in an existing district of a central school
6 district or a consolidated district.
7 d. Nothing in this act shall prevent school districts or boards of
8 cooperative educational services with the approval of the commissioner
9 of education from providing cooperative educational services for which
10 no application for state aid is to be made.
11 e. Any aid apportioned in accordance with section two hundred thirteen
12 of the education law to a board of cooperative educational services in
13 connection with the production of educational television materials and
14 programs, or the acquisition by purchase, lease or otherwise of tele-
15 vision facilities or operational expenses in connection therewith shall
16 not be utilized in connection with computing the apportionment to such
17 board of cooperative educational services. Any aid apportioned or paid
18 by the state to a board of cooperative educational services for exper-
19 imental or special programs shall not be utilized in connection with
20 computing the apportionment to such board of cooperative educational
21 services.
22 f. [The] For aid payable in the nineteen hundred ninety-eight--nine-
23 ty-nine and prior school year, the sum of the amounts determined for
24 each component school district as the apportionment to the board of
25 cooperative educational services pursuant to the provisions of this
26 section shall not be less than the amount which would have been appor-
27 tioned during the nineteen hundred sixty-seven--sixty-eight school year
28 under the provisions of this subdivision as in effect on December thir-
258 13001-04-9
1 ty-first, nineteen hundred sixty-six to the board of cooperative educa-
2 tional services of which the district was a component member for which
3 such apportionment was made, except that such minimum apportionment
4 shall be reduced in any year in which the expenditures of the component
5 district for board of cooperative educational purposes fall below the
6 expenditure on which the nineteen hundred sixty-seven--sixty-eight
7 apportionment to the board of cooperative educational services was
8 based, such reduction to be made on a proportionate basis.
9 g. Any payment required by a board of cooperative educational services
10 to the dormitory authority or any payment required by a board of cooper-
11 ative educational services to acquire or construct a school facility of
12 the board of cooperative educational services, and any payments for
13 rental of facilities by a board of cooperative educational services
14 shall, for the purposes of apportionment of public moneys to the board
15 of cooperative educational services by the state of New York, be deemed
16 to be an administrative expense but the entire amount of such payment
17 shall be utilized in making such apportionment and the limitation of ten
18 percent of the total expenses contained in this subdivision shall not be
19 applicable. Any such payment shall not be considered part of the total
20 expenses of the board for purposes of determining the administrative and
21 clerical expenses not to exceed ten percent otherwise eligible for aid
22 under this subdivision, and such payments shall be considered for the
23 purpose of apportionment during the current school year such payment is
24 made. The apportionment for such payments shall be determined by multi-
25 plying the amount of such payment allocated to each component school
26 district in the board of cooperative educational services by the aid
27 ratio, and shall be not more than ninety percent converted to decimals,
28 of each such component computed pursuant to subdivision three of section
259 13001-04-9
1 thirty-six hundred two and used to apportion aid to that district in
2 that current school year; provided, however, the apportionment shall be
3 based upon the cost of the board of cooperative educational services
4 school facilities but not to exceed the cost allowance set forth in
5 subdivision six of section thirty-six hundred two of the education law
6 and payments for rental facilities shall be subject to the approval of
7 the commissioner.
8 § 11. Subdivision 5-a of section 1950 of the education law is REPEALED
9 and a new subdivision 5-a is added to read as follows:
10 5-a. a. Notwithstanding any other provision of law to the contrary,
11 except as otherwise provided in paragraph b of this subdivision, the
12 trustees or board of education of a school district which is currently a
13 component school district of a board of cooperative educational services
14 may, by a majority vote, withdraw from such board of cooperative educa-
15 tional services supervisory district as of July first of any school
16 year, provided that such trustees or board notifies the board of cooper-
17 ative educational services in writing on or before the preceding January
18 first of the district’s intent to withdraw from the supervisory district
19 at the start of the next school year.
20 b. Where the trustees or board of education of a school district have
21 previously voted to withdraw from a board of cooperative educational
22 services supervisory district pursuant to paragraph a of this subdivi-
23 sion, such trustees or board may, by majority vote, decide to rejoin the
24 board of cooperative educational services supervisory district. Where
25 such a district votes to rejoin, the board of cooperative educational
26 services shall determine the date upon which such district may rejoin as
27 a component district and begin full participation in the program of the
28 board of cooperative educational services, provided that such date shall
260 13001-04-9
1 not be later than one year from the date of receipt of the request to
2 rejoin. Upon rejoining a board of educational services pursuant to this
3 paragraph, the trustees or board of education of such school district
4 may not vote to withdraw from the board of cooperative educational
5 services supervisory district for a period of five years.
6 c. Notwithstanding any other provision of law to the contrary, once
7 the trustees or board of education of a school district notifies the
8 board of cooperative educational services that it has voted to withdraw
9 from the supervisory district, such trustees or board of education shall
10 no longer be eligible to vote on matters brought before the component
11 districts during the remainder of the school year, including but not
12 limited to the administrative budget or the election of members of the
13 board of cooperative educational services, shall no longer be eligible
14 to nominate candidates to such board and shall not be eligible to enter
15 into any agreements relating to facilities of the board of cooperative
16 educational services, and the qualified voters residing in such district
17 shall no longer be eligible to vote on referenda relating to real prop-
18 erty and facilities of the board of cooperative educational services
19 pursuant to subdivision two of section nineteen hundred fifty-one of
20 this article, and residents of such school district shall no longer be
21 eligible for nomination to the board of cooperative educational
22 services. Any current member of the board of cooperative educational
23 services who resides in the school district withdrawing from the board
24 of cooperative educational services shall vacate his or her position as
25 of the effective date of such withdrawal.
26 d. Upon withdrawal from the board of cooperative educational services,
27 the school district shall not be responsible for any future administra-
28 tive expenses of the board of cooperative educational services, except
261 13001-04-9
1 that such district shall continue to be responsible for capital expenses
2 incurred prior to its notification of the board of cooperative educa-
3 tional services of its intent to withdraw to the extent provided in
4 clause (iii) of subparagraph seven of paragraph b of subdivision four of
5 this section.
6 § 12. Subdivision 8-a of section 1950 of the education law, as added
7 by chapter 762 of the laws of 1972, is amended to read as follows:
8 8-a. Notwithstanding any other provision of this section and with the
9 consent of the commissioner, the city school district of the city of
10 Syracuse may, upon consent of the board of cooperative educational
11 services for the sole supervisory district for Onondaga and Madison
12 counties, be included as a component district for the sole purpose of
13 operating a combined program and/or constructing a combined facility for
14 the trainable mentally retarded children in the city of Syracuse and the
15 county of Onondaga. Such city school district shall add an amount to its
16 budget and levy, collect and pay the same to such board of cooperative
17 educational services to defray the proportional expenses of constructing
18 and operating such facility for such children. Such city school district
19 shall not be liable for payment of administrative expenses as provided
20 for in paragraph b of subdivision four of this section [nor shall such
21 city school district be eligible for the payment of state aid under this
22 section except such city school district shall receive state aid based
23 on its proportionate share of building expenses related to this program
24 as determined by the commissioner.
25 Such city school district shall continue to receive aid under subdivi-
26 sion five of section thirty-six hundred two for the attendance of chil-
27 dren in this program].
262 13001-04-9
1 § 13. Subdivision 8-c of section 1950 of the education law, as added
2 by section 14 of part A of chapter 436 of the laws of 1997, is amended
3 to read as follows:
4 8-c. Notwithstanding any other provision of this section, any school
5 district not a component of the board of cooperative educational
6 services of the supervisory district serving its geographic area,
7 including a city school district in a city having a population in excess
8 of one hundred twenty-five thousand inhabitants, upon consent of the
9 board of cooperative educational services and with the approval of the
10 commissioner, may be treated in the same manner as a component school
11 district of the board of cooperative educational services of the super-
12 visory district serving its geographic area, or an adjoining board of
13 cooperative educational services in the case of a city school district
14 in a city having one million inhabitants or more, for the sole purpose
15 of purchasing instructional support services, as defined by the commis-
16 sioner. Each such school district shall add an amount to its budget and
17 shall levy, collect and pay the costs of such program to such board of
18 cooperative educational services to defray its portion of the expenses
19 of such program, including a charge for administration not to exceed the
20 restricted indirect cost rate, provided that the board of cooperative
21 educational services shall not charge any portion of the administrative
22 costs incurred pursuant to this subdivision to its component school
23 districts. Such school districts shall not be liable for payment of
24 administrative expenses as provided for in paragraph b of subdivision
25 four of this section and subdivision one of section nineteen hundred
26 fifty-one of this article. In the case of city school districts in a
27 city with a population in excess of one hundred twenty-five thousand
28 inhabitants, such participation shall be in addition to the partic-
263 13001-04-9
1 ipation authorized by subdivisions eight-a and eight-b of this section.
2 In the case of a city school district in a city with a population of one
3 hundred twenty-five thousand inhabitants or more, in lieu of partic-
4 ipation as a component district of an adjoining board of cooperative
5 educational services, the city school district may opt to provide such
6 support services as shared services directly or in collaboration with
7 one or more institutions of higher education. The approved costs of such
8 services shall be eligible for state aid in accordance with the
9 provisions of subdivision twenty of section thirty-six hundred two of
10 this chapter[, and shall not be eligible for aid pursuant to subdivision
11 five of this section].
12 § 14. Subdivision 9-a of section 1950 of the education law, as added
13 by chapter 21 of the laws of 1978, is amended to read as follows:
14 9-a. No person shall be eligible to hold the office of member of a
15 board of cooperative educational services who does not reside within the
16 boundaries of a component school district of any such board. On and
17 after July first, nineteen hundred ninety-nine, no person shall be
18 eligible to be elected or appointed to the office of member of a board
19 of cooperative educational services unless such person is a member of
20 the board of education or other governing body of a component school
21 district of such board, provided any person elected prior to such date
22 who does not meet such requirement shall nevertheless remain eligible to
23 hold such office until the expiration of his or her term.
24 § 15. Paragraph f of subdivision 13 and paragraph f of subdivision 14
25 of section 1950 of the education law are REPEALED.
26 § 16. Section 2613 of the education law, as amended by chapter 644 of
27 the laws of 1995, is amended to read as follows:
264 13001-04-9
1 § 2613. Absentee ballots [for board member elections]. The board of
2 education of each city school district to which this article applies may
3 provide for absentee ballots [for the election of candidates to the
4 board of education only,] in accordance with the provisions of section
5 two thousand eighteen-a of this chapter [insofar as applicable]. In
6 counties with a population of one million or more, the board of educa-
7 tion of each city school district to which this section applies shall
8 provide absentee ballots [for the election of candidates to the board of
9 education only,] in accordance with the provisions of section two thou-
10 sand eighteen-a of this chapter [insofar as applicable].
11 § 17. Subdivision 1 of section 3602 of the education law is amended by
12 adding a new paragraph bb to read as follows:
13 bb. "Classified pupils" shall mean the number of pupils who are iden-
14 tified as students with disabilities, as such term is defined in the
15 regulations of the commissioner, who are included in reports to the
16 commissioner by the school district of pupils so identified as of Decem-
17 ber first of the school year, and who receive special educational
18 services or attend programs which meet criteria established by the
19 commissioner, and are operated by a school district or by a board of
20 cooperative educational services, whether or not the district is a
21 component of such board.
22 § 18. Paragraph f of subdivision 1 of section 3602 of the education
23 law, as amended by section 11-a of part C of chapter 58 of the laws of
24 1998, is amended to read as follows:
25 f. "Expense per pupil" shall mean approved operating expense for the
26 year prior to the base year divided by the sum, computed using year
27 prior to the base year pupil counts, of the total aidable pupil units
28 plus: (i) for aid payable in the nineteen hundred ninety-eight--ninety-
265 13001-04-9
1 nine and nineteen hundred ninety-nine--two thousand school years,
2 weighted pupils with handicapping conditions, and (ii) for aid payable
3 in the two thousand--two thousand one school year and thereafter, the
4 year prior to the base year classified pupils. Expense per pupil for
5 each borough in the city school district of the city of New York shall
6 be the expense per pupil of the entire city school district. For aid
7 payable in the nineteen hundred ninety-eight--ninety-nine school year,
8 expense per pupil for the city school district of the city of Buffalo
9 shall be five thousand nine hundred eighty-five.
10 § 19. Paragraph j of subdivision 1 of section 3602 of the education
11 law, as amended by section 32 of part A of chapter 436 of the laws of
12 1997 and subparagraph (v) as amended by section 11-a of part C of chap-
13 ter 58 of the laws of 1998, is amended to read as follows:
14 j. "Comprehensive operating aids base" for the purposes of this
15 section:
16 [(i)] (1) for aid payable in the nineteen hundred ninety-three--nine-
17 ty-four school year, shall mean: the net total amount a district was
18 eligible to receive during the base year under the provisions of subdi-
19 visions twelve, thirteen, fifteen, sixteen, twenty-two, twenty-three,
20 twenty-six, and thirty-two of this section and the adjustment in aid due
21 to the selection made pursuant to subdivision eighteen of this section,
22 except that for aid payable in the nineteen hundred ninety-three--nine-
23 ty-four school year, such term shall mean the sum of the aids payable in
24 the nineteen hundred ninety-two--ninety-three school year pursuant to
25 (1) the following subdivisions of section thirty-six hundred one-a:
26 twelve or fifteen, whichever applies, and thirteen, or, in the alterna-
27 tive, eighteen; sixteen; twenty; twenty-two; twenty-three; twenty-five;
28 twenty-six; twenty-nine; thirty; thirty-two; thirty-three; and thirty-
266 13001-04-9
1 four; (2) an amount equal to the product of transportation expense
2 approved for aid in the nineteen hundred ninety-two--ninety-three school
3 year in accordance with subdivision seven of section thirty-six hundred
4 one-a of this article multiplied by the remainder of nine-tenths minus
5 the building aid ratio computed for aid payable in the nineteen hundred
6 ninety-two--ninety-three school year pursuant to subdivision three of
7 section thirty-six hundred one-a of this article; and (3) any other
8 adjustments pursuant to paragraphs k, l and m of subdivision one of
9 section thirty-six hundred nine of this article, and except that the
10 comprehensive operating aids base for aid payable in the nineteen
11 hundred ninety-three--ninety-four school year, and for aid calculations
12 for subsequent school years based on aid payable in such school year,
13 shall be deemed final and not subject to change on or after July first,
14 nineteen hundred ninety-six; whereas:
15 [(ii)] (2) for aid payable in the nineteen hundred ninety-four--nine-
16 ty-five and nineteen hundred ninety-five--ninety-six school years, such
17 term shall mean the net total amount a district was eligible to receive
18 during the base year under the provisions of subdivisions twelve,
19 fifteen, sixteen, twenty-two, twenty-three, twenty-six, and thirty-two
20 of this section and the adjustment in aid due to the selection made
21 pursuant to subdivision eighteen of this section, except that: (A) the
22 comprehensive operating aids base for aid payable in the nineteen
23 hundred ninety-four--ninety-five school year, and for aid calculations
24 for subsequent school years based on aid payable in such school year,
25 shall be deemed final and not subject to change on or after July first,
26 nineteen hundred ninety-eight, and (B) the comprehensive operating aids
27 base for aid payable in the nineteen hundred ninety-five--ninety-six
28 school year, and for aid calculations for subsequent school years based
267 13001-04-9
1 on aid payable in such school year, shall be deemed final and not
2 subject to change on or after July first, nineteen hundred ninety-nine;
3 [(iii)] (3) for aid payable in the nineteen hundred ninety-six--nine-
4 ty-seven school year, such term shall mean the net total amount a
5 district was eligible to receive during the base year under the
6 provisions of clause (i) of paragraph a of subdivision twelve, and
7 subdivisions fifteen, sixteen, twenty-two, twenty-three and twenty-six
8 of this section and the adjustment in aid due to the selection made
9 pursuant to subdivision eighteen of this section, except that in a city
10 school district in a city with a population of more than one million,
11 for aid payable in the nineteen hundred ninety-six--ninety-seven school
12 year, the comprehensive operating aids base shall be increased by the
13 amount by which growth aid for aid payable in the nineteen hundred nine-
14 ty-four--ninety-five school year calculated pursuant to subdivision
15 thirteen of this section notwithstanding section five hundred thirty-
16 eight of chapter one hundred seventy of the laws of nineteen hundred
17 ninety-four exceeds growth aid calculated for such school year, and
18 except that the comprehensive operating aids base for aid payable in the
19 nineteen hundred ninety-six--ninety-seven school year, and for aid
20 calculations for subsequent school years based on aid payable in the
21 such school year, shall be deemed final and not subject to change on or
22 after July first, two thousand;
23 [(iv)] (4) for aid payable in the nineteen hundred ninety-seven--nine-
24 ty-eight school year, such term shall mean the net total amount a
25 district was eligible to receive during the base year under the
26 provisions of clause (i) of paragraph a of subdivision twelve, and
27 subdivisions fifteen, sixteen, twenty-two, and twenty-three of this
28 section and the adjustment in aid due to the selection made pursuant to
268 13001-04-9
1 subdivision eighteen of this section, except that the comprehensive
2 operating aids base for aid payable in the nineteen hundred ninety-sev-
3 en--ninety-eight school year, and for aid calculations for subsequent
4 school years based on aid payable in the such school year, shall be
5 deemed final and not subject to change on or after July first, two thou-
6 sand; and
7 [(v)] (5) for aid payable in the nineteen hundred ninety-eight--nine-
8 ty-nine school year [and thereafter], such term shall mean the net total
9 amount a district was eligible to receive during the base year under the
10 provisions of clause (i) of paragraph a of subdivision twelve, and
11 subdivisions fifteen, and sixteen of this section and the adjustment in
12 aid due to the selection made pursuant to subdivision eighteen of this
13 section, except that the comprehensive operating aids base for aid paya-
14 ble in the nineteen hundred ninety-eight--ninety-nine school year [and
15 thereafter], and for aid calculations for subsequent school years based
16 on aid payable in such school years, shall be deemed final and not
17 subject to change on or after July first [of the school year following
18 the last school year in which the commissioner may last accept and
19 certify for payment any additional claim for such school year pursuant
20 to paragraph a of subdivision five of section thirty-six hundred four of
21 this article], two thousand one.
22 (6) (i) for aid payable in the two thousand--two thousand one school
23 year, such term shall mean the net total amount a district was eligible
24 to receive during the base year in core operating aid pursuant to a
25 chapter of the laws of 1999 enacting the education, labor and family
26 assistance component of the 1999-00 omnibus appropriation bill, plus the
27 BOCES services aid adjustment for component school districts of a board
28 of cooperative educational services, except that the comprehensive oper-
269 13001-04-9
1 ating aids base for aid payable in the two thousand--two thousand one
2 school year and thereafter, and for aid calculations for subsequent
3 school years based on aid payable in such school years, shall be deemed
4 final and not subject to change on or after July first of the school
5 year following the last school year in which the commissioner may last
6 accept and certify for payment any additional claim for such school year
7 pursuant to paragraph a of subdivision five of section thirty-six
8 hundred four of this article.
9 (ii) For purposes of this subparagraph, the "BOCES services aid
10 adjustment" shall mean the result obtained when the sharing ratio for
11 cooperative educational services aid for the nineteen hundred ninety-
12 nine--two thousand school year, determined pursuant to paragraph a of
13 subdivision five of section nineteen hundred fifty of this chapter, is
14 multiplied by the selected BOCES shared services expense and the result
15 is multiplied by seventy-five percent. The selected BOCES shared service
16 expense shall equal the reported and approved expenses actually incurred
17 by the component school district for aidable shared services provided by
18 the board of cooperative educational services in the nineteen hundred
19 ninety-eight--ninety-nine school year, exclusive of capital expenses.
20 § 20. Subparagraph 1 of paragraph n of subdivision 1 of section 3602
21 of the education law, as amended by chapter 474 of the laws of 1996, is
22 amended to read as follows:
23 (1) "Enrollment" shall mean the unduplicated count of all children
24 registered to receive educational services in grades kindergarten
25 through twelve, including children in ungraded programs, as registered
26 on the date prior to November first that is specified by the commission-
27 er as the enrollment reporting date for the school district or nonpublic
28 school, as reported to the commissioner. Enrollment for the current
270 13001-04-9
1 school year as defined in this paragraph, including public school
2 district enrollment, nonpublic school enrollment, resident public school
3 district enrollment, resident nonpublic school district enrollment and
4 additional public school enrollment, shall be deemed final and not
5 subject to change after June thirtieth of the current school year based
6 on data on file with the commissioner on such date.
7 § 21. Subparagraphs 1 and 3 of paragraph a of subdivision 6 of section
8 3602 of the education law, as amended by section 14 of part C of chapter
9 58 of the laws of 1998, are amended to read as follows:
10 (1) For new construction and the purchase of existing structures, the
11 cost allowances shall be based upon the rated capacity of the building
12 or addition and a basic per pupil allowance of up to six thousand three
13 hundred seventy-five dollars adjusted monthly by a statewide index
14 reflecting changes in the cost of labor and materials since July first,
15 nineteen hundred ninety-two, established by the commissioner of labor,
16 modified by an annual county or multi-county labor market composite wage
17 rate, established by the commissioner of labor in consultation with the
18 commissioner, for July first of the base year, commencing July first,
19 nineteen hundred ninety-seven for general construction contracts awarded
20 on or after July first, nineteen hundred ninety-eight, indexed to the
21 median of such county or multi-county rates, but not less than one.
22 Such base allowance shall apply to a building or an addition housing
23 grades prekindergarten through six and shall be adjusted for a building
24 or an addition housing grades seven through nine by a factor of one and
25 four-tenths, for a building or an addition housing grades seven through
26 twelve by a factor of one and five-tenths, for a building or addition
27 housing special education programs by a factor of two, except that where
28 such building or addition is connected to, or such space is located
271 13001-04-9
1 within, a public school facility housing programs for nondisabled
2 pupils, as approved by the commissioner, a factor of three shall be
3 used. Rated capacity of a building or an addition shall be determined by
4 the commissioner based on space standards and other requirements for
5 building construction specified by the commissioner. Such assigned
6 capacity ratings shall include, in addition to those spaces used for the
7 instruction of pupils, those spaces which are used for elementary and
8 secondary school libraries, cafeterias, prekindergarten instructional
9 rooms, teachers' conference rooms, gymnasiums and auditoriums. For new
10 construction projects approved by the qualified voters on or after July
11 first, nineteen hundred ninety-nine, or approved by the board of educa-
12 tion of the school district on or after such date where voter approval
13 is not required, such rated capacity for new buildings and additions
14 constructed to replace existing buildings that, in the judgment of the
15 commissioner, have not been adequately maintained and have not reached
16 their projected useful life shall be reduced by the commissioner by an
17 amount proportional to the remaining unused portion of the useful life
18 of the existing buildings, provided however that the commissioner may
19 waive such requirement upon a finding that replacement of the existing
20 building is necessary to protect the health and safety of students or
21 staff , that reconstruction and modernization of the existing building
22 would not adequately address such health and safety problems , and that
23 the need to replace the building was not caused by failure to adequately
24 maintain the building. If the commissioner of labor resets the statewide
25 index reflecting changes in the costs of labor and materials since July
26 first, nineteen hundred ninety-two, the commissioner shall adopt regu-
27 lations to supersede the basic per pupil allowance of up to six thousand
272 13001-04-9
1 three hundred seventy-five dollars to the imputed allowance in effect at
2 that time.
3 (3) Cost allowances for reconstructing or modernizing structures shall
4 not exceed one hundred per centum of the cost allowances for the equiv-
5 alent new construction over the projected useful life of the building,
6 to be determined in accordance with the regulations of the commissioner.
7 Reconstruction projects shall reasonably meet the criteria established
8 for new construction, including but not limited to energy, fire,
9 personal safety and space per pupil standards.
10 § 22. Section 3602 of the education law is amended by adding a new
11 subdivision 6-f to read as follows:
12 6-f. Building aid for continuing capital projects of a board of coop-
13 erative educational services. For aids payable in the two thousand--two
14 thousand one school year and thereafter, a component school district, or
15 a former component school district of a board of cooperative educational
16 services which has withdrawn from the supervisory district pursuant to
17 subdivision five of section nineteen hundred fifty of this chapter,
18 shall be eligible for an apportionment pursuant to this subdivision for
19 approved capital expenditures allocated by the board of cooperative
20 educational services to such school district for the current year pursu-
21 ant to subparagraph seven of paragraph b of subdivision four of such
22 section nineteen hundred fifty for any project approved by the commis-
23 sioner prior to July first, nineteen hundred ninety-nine for the lease,
24 construction, acquisition, reconstruction, rehabilitation or improvement
25 of a school facility of such board of cooperative educational services.
26 Such apportionment shall equal the product of the approved costs of such
27 project, or projects, as computed pursuant to subdivision six of this
28 section and allocated to the district for the current school year multi-
273 13001-04-9
1 plied by the board of cooperative educational services aid ratio as
2 computed pursuant to subparagraph (ii) of paragraph three of subdivision
3 three of this section.
4 § 23. Paragraph (ii) of subdivision 8 of section 3602 of the education
5 law, as added by chapter 474 of the laws of 1996, is amended to read as
6 follows:
7 (ii) Computation of total aidable pupil units for operating aid paya-
8 ble in the nineteen hundred ninety-seven--ninety-eight school year and
9 thereafter. A district’s total aidable pupil units for the purpose of
10 computing operating aid shall be the sum of the district’s adjusted
11 average daily attendance computed pursuant to this section for the year
12 prior to the base year multiplied by the enrollment index computed
13 pursuant to this section for the base year plus the additional aidable
14 pupil units computed for the year prior to the base year under subdivi-
15 sion nine of this section.
16 § 24. Paragraph b of subdivision 9 of section 3602 of the education
17 law, as added by chapter 57 of the laws of 1993, is amended to read as
18 follows:
19 b. For the computation of total wealth pupil units, as used in the
20 calculation of aid payable in the nineteen hundred ninety-nine--two
21 thousand and prior school years, additional aidable pupil units shall
22 include the year prior to the base year resident weighted pupils with
23 special educational needs and resident weighted pupils with handicapping
24 conditions. For the computation of total wealth pupil units, as used in
25 the calculation of aid payable in the two thousand--two thousand one and
26 later school years, additional aidable pupil units shall include the
27 year prior to the base year resident weighted pupils with special educa-
28 tional needs and the number of resident pupils who are identified as
274 13001-04-9
1 students with disabilities, as such term is defined in the regulations
2 of the commissioner, who are included in reports to the commissioner by
3 the school district of pupils so identified as of December first of the
4 year prior to the base year, and who receive special education services
5 or attend special education programs which meet criteria established by
6 the commissioner, and are operated by a school district or by a board of
7 cooperative educational services, whether or not the district is a
8 component of such board.
9 § 25. Subdivision 9-a of section 3602 of the education law, as amended
10 by chapter 474 of the laws of 1996, is amended to read as follows:
11 9-a. Secondary school weighting. [There] a. Except as provided in
12 paragraph b of this subdivision, there shall be added to the total aida-
13 ble pupil units computed in subdivision eight of this section a number
14 obtained by multiplying by twenty-five per centum the adjusted average
15 daily attendance in grades seven through twelve excluding attendance of
16 pupils who receive a weighting for handicapping conditions except for
17 those pupils, if any, for whom a weighting of thirteen-hundredths is
18 provided in clause four of subparagraph b of paragraph one of subdivi-
19 sion nineteen of this section. Only resident secondary pupils shall be
20 used for computation of wealth units.
21 b. For the purpose of computing total aidable pupil units for operat-
22 ing aid payable in the nineteen hundred ninety-seven--ninety-eight
23 school year and thereafter pursuant to subdivision eight of this
24 section, there shall be added to the total aidable pupil units computed
25 in such subdivision eight a number equal to the product of: (i) twenty-
26 five per centum, (ii) the adjusted average daily attendance in grades
27 seven through twelve for the year prior to the base year, excluding
28 attendance of pupils who receive a weighting for handicapping conditions
275 13001-04-9
1 except for those pupils, if any, for whom a weighting of thirteen-hun-
2 dredths is provided in clause four of subparagraph b of paragraph one of
3 subdivision nineteen of this section, and (iii) the enrollment index
4 computed pursuant to this section for the base year.
5 § 26. Paragraphs a and b of subdivision 10 of section 3602 of the
6 education law, as amended by chapter 301 of the laws of 1996, are
7 amended to read as follows:
8 a. Program approval requirements. Except as provided in subclause (ii)
9 of clause (G) of subparagraph two of paragraph g of subdivision twelve
10 of this section, any school district required to set aside a portion of
11 its comprehensive operating aid for pupils with compensatory educational
12 needs in an amount in excess of two hundred fifty thousand dollars, any
13 school district receiving limited English proficiency aid pursuant to
14 subdivision twenty-two of this section or any district receiving an
15 additional apportionment pursuant to subdivision nineteen, nineteen-a or
16 nineteen-b of this section for pupils with disabilities or any district
17 receiving an additional apportionment pursuant to subdivision seventeen
18 of this section for pupils in career education programs shall use the
19 total funds attributable to such pupils for locally administered
20 programs for such pupils in accordance with regulations issued by the
21 commissioner, provided, however, that the funds received as an addi-
22 tional apportionment pursuant to subdivision nineteen-a or nineteen-b of
23 this section for special education services for pupils with disabilities
24 and for preventive services may be expended for locally administered
25 special education programs for pupils with disabilities and for locally
26 administered prevention and support services as defined by the commis-
27 sioner that will enable pupils to maintain their placement in a program
28 of regular education or enable pupils with disabilities to successfully
276 13001-04-9
1 participate in a program of regular education. Such regulations shall
2 provide for the use of such funds in the manner determined by the
3 commissioner to be the most educationally advantageous for such pupils;
4 and such regulations shall also include annual district reporting
5 requirements which shall require the identification of such pupils, a
6 statement describing the expenditure of the preceding year’s funds for
7 such pupils and an evaluation of the results obtained from such expendi-
8 tures. A district which spends any part of its total annual apportion-
9 ment attributable to such pupils in an unauthorized manner in the base
10 year shall have its current year apportionment reduced by the amount of
11 such unauthorized expenditures in the base year.
12 b. District plans of service. Except as provided in clause (G) of
13 subparagraph two of paragraph g of subdivision twelve of this section,
14 any school district required to set aside a portion of its comprehensive
15 operating aid for pupils with compensatory educational needs as defined
16 in such paragraph g, or any school district receiving limited English
17 proficiency aid pursuant to subdivision twenty-two of this section or an
18 additional apportionment pursuant to subdivision nineteen, nineteen-a or
19 nineteen-b of this section for special education services for pupils
20 with disabilities and for preventive services or to subdivision seven-
21 teen of this section for pupils in career education programs shall,
22 prior to September first, nineteen hundred seventy-four and every third
23 year thereafter, submit to the commissioner an acceptable plan of
24 service describing the student outcomes expected from implementation of
25 the proposed plan, except that after September first, nineteen hundred
26 eighty-six such plans with respect to the apportionment for pupils with
27 disabilities or for pupils in career education programs shall be submit-
28 ted every two years at a date specified by the commissioner and revised
277 13001-04-9
1 annually. Such plans shall be in a form prescribed by the commissioner,
2 and except as heretofore provided, shall have the content prescribed by
3 the commissioner. The commissioner may, from time to time, require
4 amendments of such plans as deemed to be necessary and appropriate to
5 further the educational welfare of the pupils involved.
6 § 27. Subdivision 11 of section 3602 of the education law, as amended
7 by chapter 82 of the laws of 1995, is amended to read as follows:
8 11. Approved operating expense. The approved operating expense for
9 apportionments to any school district hereunder shall be computed as
10 follows:
11 a. The apportionment to any school district for operating expense
12 shall be based upon the total expenditures from its general fund and
13 from its capital fund and from its risk retention fund for purposes of
14 employee benefit claims related to salaries paid from the general fund,
15 and for any city school districts with a population of more than one
16 hundred twenty-five thousand inhabitants its expenditures from the
17 special aid fund of grant moneys for improving pupil performance and
18 categorical aid for special reading programs as provided in the aid to
19 localities budget during the applicable year as approved by the commis-
20 sioner, and in accordance with the classification of expenditures in use
21 by the commissioner for the reporting by school districts of receipts,
22 expenditures and other financial data. For the purpose of this subdivi-
23 sion operating expense shall be defined as total cash expenditures
24 during the applicable year, but shall exclude: (1) any balances and
25 transfers; (2) any payments for transportation of pupils to and from
26 school during the regular school year inclusive of capital outlays and
27 debt service therefor; (3) any payments for capital outlay and debt
28 service for school building purposes, provided, however, that in the
278 13001-04-9
1 case of a school district which has entered into a contract with state
2 university pursuant to paragraph o of subdivision two of section three
3 hundred fifty-five of this chapter, under which the school district
4 makes payments to state university on account of capital outlay relating
5 to certain children residing in such school district, such payments
6 shall not be so excluded; (4) any payments for cafeteria or school lunch
7 programs; (5) any proceeds of short term borrowings in the general fund
8 and any payments from the proceeds of the sale of obligations in the
9 capital fund; (6) any cash receipts which reduce the cost of an item
10 when applied against the expenditure therefor, except gifts, donations
11 and earned interest and any refunds made; (7) any payments made to
12 boards of cooperative educational services and to county vocational
13 education and extension boards for purposes or programs for which an
14 apportionment is paid pursuant to other sections of this chapter, except
15 that payments attributable to eligible pupils with disabilities and
16 ineligible pupils residing in noncomponent districts shall be included
17 in operating expense; (8) any tuition payments made to other school
18 districts inclusive of payments made to a central high school district
19 by one of its component school districts; (9) any apportionment or
20 payment received from the state for experimental or special programs
21 paid under provisions other than those found in this section; (10) any
22 funds received from the federal government except the federal share of
23 medicaid subject to the provisions of section thirty-six hundred nine or
24 thirty-six hundred nine-a, as the case may be, of this chapter and
25 except Impact Aid funds received pursuant to sections two and six of
26 Public Law eighty-one-eight hundred seventy-four (PL 81-874) or any law
27 superseding such law in any such district which received aid pursuant to
28 both such sections; provided further, however, that there shall be
279 13001-04-9
1 excluded from such federal funds or other apportionments any payments
2 from such funds already deducted pursuant to this paragraph; (11) any
3 payments made for which an apportionment is disallowed pursuant to regu-
4 lations of the commissioner; (12) any expenditures made for accounting,
5 tabulation, or computer equipment, in excess of ten thousand dollars
6 unless such expenditures shall have been specifically approved by the
7 commissioner; (13) any rentals received pursuant to the provisions of
8 section four hundred three-a of this chapter; (14) any rentals or other
9 annual payments received pursuant to the provisions of section four
10 hundred three-b of this chapter; (15) any expenditures made for persons
11 twenty-one years of age or over attending employment preparation educa-
12 tion programs pursuant to subdivision twenty-four of this section; and
13 (16) and any tuition payments made pursuant to a contract under the
14 provisions of paragraphs e, f, g, h, i and l of subdivision two of
15 section forty-four hundred one of this chapter or any tuition payments
16 on behalf of pupils attending a state school under paragraph d of such
17 subdivision.
18 b. For the two thousand--two thousand one school year and thereafter,
19 approved operating expense shall mean the result obtained when the
20 selected BOCES shared service expense as computed pursuant to subpara-
21 graph six of paragraph j of subdivision one of this section, is
22 subtracted from the amount computed pursuant to paragraph a of this
23 subdivision.
24 § 28. Subparagraph 6 of paragraph f of subdivision 12 of section 3602
25 of the education law, as amended by section 24 of part C of chapter 58
26 of the laws of 1998, is amended to read as follows:
27 (6) A school district which spends less in local funds during the
28 current year than in the base year for the purposes of conducting
280 13001-04-9
1 programs to improve student attendance and student retention, as defined
2 by regulation of the commissioner, shall have its apportionment under
3 this section reduced in an amount equal to such deficiency in the
4 current year or the succeeding school year. In addition, a district
5 which spends any part of its total annual set aside attributable to such
6 purposes in an unauthorized manner in the base year shall have its
7 current year apportionment under this section reduced in an amount equal
8 to the amount of such unauthorized expenditures. In no event shall the
9 reductions assessed pursuant to this clause on the current year appor-
10 tionment under this section, be deducted from the set asides required
11 pursuant to this subdivision. For the nineteen hundred [ninety-eight--
12 ninety-nine] ninety-nine--two thousand school year, it is further
13 provided that any city school district in a city having a population of
14 more than one million shall allocate at least one-third of any increase
15 from base year levels in funds set aside pursuant to the requirements of
16 this paragraph to community-based organizations. Any increase required
17 pursuant to this subparagraph to community-based organizations must be
18 in addition to allocations provided to community-based organizations in
19 the base year.
20 § 29. Subparagraph 2 of paragraph b of subdivision 13 of section 3602
21 of the education law, as added by chapter 474 of the laws of 1996, is
22 amended to read as follows:
23 (2) Any district having a growth index in excess of one and four thou-
24 sandths shall be paid an additional amount in the current year deter-
25 mined by multiplying the actual excess as verified by the commissioner
26 based on reports of enrollment for the current year as submitted to the
27 commissioner, by the amount of the apportionment selected pursuant to
28 clause (i) of paragraph a of subdivision twelve of this section.
281 13001-04-9
1 [Notwithstanding section thirty-six hundred nine-a of this chapter, such
2 additional amount shall be paid in June of the current school year
3 provided that required reports have been submitted in a manner satisfac-
4 tory to the commissioner.]
5 § 30. Paragraph h of subdivision 14 of section 3602 of the education
6 law is REPEALED.
7 § 31. Paragraph d of subdivision 15 of section 3602 of the education
8 law, as amended by section 25 of part C of chapter 58 of the laws of
9 1998, is amended to read as follows:
10 d. Notwithstanding any inconsistent provisions of this article, if
11 such city school district elected to receive operating aid payable in
12 the nineteen hundred [ninety-seven--ninety-eight] ninety-eight--ninety-
13 nine school year under the provisions of this subdivision, approved
14 transportation expense for public service transportation for transporta-
15 tion aid payable in the nineteen hundred [ninety-eight--ninety-nine]
16 ninety-nine--two thousand school year shall not include any expenditures
17 to the New York City Metropolitan Transportation Authority for public
18 service transportation during the nineteen hundred [ninety-seven--nine-
19 ty-eight] ninety-eight--ninety-nine school year nor shall such expense
20 be included in approved operating expense.
21 § 32. The subdivision heading of subdivision 19 of section 3602 of the
22 education law, as added by chapter 57 of the laws of 1993, is amended to
23 read as follows:
24 Excess cost aid for pupils with handicapping conditions payable for
25 the nineteen hundred ninety-eight--ninety-nine and prior school years.
26 § 33. Subdivision 19 of section 3602 of the education law is amended
27 by adding a new paragraph 9 to read as follows:
282 13001-04-9
1 9. Excess cost aid for pupils with handicapping conditions payable for
2 the nineteen hundred ninety-eight--ninety-nine and prior school years
3 shall be computed pursuant to the provisions of this subdivision. Excess
4 cost aid for pupils with handicapping conditions payable for the nine-
5 teen hundred ninety-nine--two thousand school year shall be computed
6 pursuant to the provisions of subdivision nineteen-a of this section.
7 Special education and preventive services aid payable for the two thou-
8 sand--two thousand one school year and thereafter shall be computed
9 pursuant to the provisions of subdivision nineteen-b of this section.
10 § 34. Section 3602 of the education law is amended by adding a new
11 subdivision 19-a to read as follows:
12 19-a. Excess cost aid for pupils with disabilities payable for the
13 nineteen hundred ninety-nine--two thousand school year. 1. A school
14 district shall be entitled to an apportionment of excess cost aid for
15 pupils with disabilities payable during the nineteen hundred ninety-
16 nine--two thousand school year in an amount equal to the sum of aids
17 computed and payable to the school district for the nineteen hundred
18 ninety-eight--ninety-nine school year pursuant to paragraph six of
19 subdivision nineteen of this section, minus any such aids payable for
20 such school year pursuant to paragraph five of such subdivision nine-
21 teen, as computed based on data on file with the commissioner as of the
22 fifteenth of November, nineteen hundred ninety-eight.
23 2. Additional apportionment for high excess cost. A school district
24 shall be entitled to an additional apportionment for high excess cost
25 aid payable during the nineteen hundred ninety-nine--two thousand school
26 year in an amount equal to the sum of aids computed and payable to the
27 school district for the nineteen hundred ninety-eight--ninety-nine
28 school year pursuant to paragraph five of subdivision nineteen of this
283 13001-04-9
1 section as computed based on data on file with the commissioner as of
2 the fifteenth of November, nineteen hundred ninety-eight.
3 § 35. Section 3602 of the education law is amended by adding a new
4 subdivision 19-b to read as follows:
5 19-b. Special education and preventive services aid payable for the
6 two thousand--two thousand one school year and thereafter.
7 1. Definitions. For the purpose of this subdivision:
8 a. "Weighted enrollment" shall mean the quotient, rounded to the next
9 highest whole number, of the sum of the resident public school district
10 enrollment and the resident nonpublic school district enrollment divided
11 by the lesser of one and four hundred seventy-one thousandths or the
12 combined wealth ratio.
13 b. "Pupils in poverty" shall mean the lunch count as defined in para-
14 graph q of subdivision one of this section.
15 c. "Statewide enrollment growth factor" shall mean the quotient,
16 expressed as a decimal to four places without rounding, of the sum the
17 resident public school district enrollment and the resident nonpublic
18 school district enrollment of school districts for the base year divided
19 by the sum the resident public school district enrollment and the resi-
20 dent nonpublic school district enrollment of school districts for the
21 nineteen hundred ninety-nine--two thousand school year, as computed
22 based on data on file with the commissioner as of February first of the
23 base year.
24 d. "Statewide apportionment" shall mean an amount equal to the sum of
25 (i) the product of the statewide enrollment growth factor and the sum of
26 aids computed and payable to school districts for the nineteen hundred
27 ninety-nine--two thousand school year pursuant to paragraph one of
28 subdivision nineteen-a of this section, and (ii) the product of the
284 13001-04-9
1 enrollment growth factor and the section forty-four hundred eight educa-
2 tion aids base.
3 e. "Adjusted proportion of weighted enrollment" shall mean the prod-
4 uct, expressed as a decimal to five places without rounding, of eighty-
5 five one hundredths and the quotient, of the weighted enrollment of the
6 school district divided by the sum of the weighted enrollment of all
7 school districts eligible for aid pursuant to this section.
8 f. "Adjusted proportion of pupils in poverty" shall mean the product,
9 expressed as a decimal to five places without rounding, of fifteen one
10 hundredths and the pupils in poverty of the school district divided by
11 the sum of the pupils in poverty of all school districts eligible for
12 aid pursuant to this section.
13 g. "Subdivision nineteen-a aids base" shall mean an amount equal to
14 the sum of aids computed and payable to the school district for the
15 nineteen hundred ninety-nine--two thousand school year pursuant to para-
16 graph one of subdivision nineteen-a of this section.
17 h. "Section forty-four hundred eight education aids base" shall mean
18 an amount equal to the sum of aids computed and payable for the sum of
19 approved tuition rates of approved July and August programs for students
20 with disabilities pursuant to section forty-four hundred eight of this
21 chapter for the nineteen hundred ninety-eight--ninety-nine school year,
22 net of any chargeback, as computed based on data on file with the
23 commissioner as of the first of July, two thousand and payable to school
24 districts eligible to receive an apportionment pursuant to this section
25 in the nineteen hundred ninety-nine--two thousand school year.
26 i. "High excess cost aid ratio" shall mean the greater of: (i) twen-
27 ty-five one-hundredths; or (ii) the result obtained when the product of
28 fifty-one one-hundredths and the combined wealth ratio is subtracted
285 13001-04-9
1 from one. Such ratio shall be expressed as a decimal carried to three
2 places without rounding.
3 j. "High excess cost pupil" shall mean a pupil who is identified as a
4 student with a disability, as such term is defined in the regulations of
5 the commissioner, and who receives special education services or attends
6 special education programs which meet criteria established by the
7 commissioner operated by a school district or by a board of cooperative
8 educational services, whether or not the district is a component of such
9 board, and for whom the cost, as approved by the commissioner, of appro-
10 priate special services or programs exceeds the lesser of ten thousand
11 dollars or four times the expense per pupil.
12 2. For aids payable in the two thousand--two thousand one school year
13 and thereafter, unadjusted special education and preventive services aid
14 shall equal the greater of: (i) the product of the statewide apportion-
15 ment multiplied by the sum of the adjusted proportion of weighted
16 enrollment and the adjusted proportion of pupils in poverty; or (ii) the
17 product of ninety-eight hundredths multiplied by the sum of the result
18 obtained when the subdivision nineteen-a aids base is added to the
19 section forty-four hundred eight education aids base, provided, however,
20 that such unadjusted excess cost aid shall not exceed the product of one
21 and two one-hundredths multiplied by the sum of the result obtained when
22 the subdivision nineteen-a aids base is added to the section forty-four
23 hundred eight education aids base.
24 3. If the sum of the unadjusted special education and preventive
25 services aid computed for all districts eligible for an apportionment
26 pursuant to this section is equal to the statewide apportionment, the
27 special education and preventive services aid payable shall equal the
28 unadjusted special education and preventive services aid. If such sum is
286 13001-04-9
1 less than the statewide apportionment, the special education and preven-
2 tive services aid payable shall equal the product of the sum of the
3 subdivision nineteen-a aids base and the section forty-four hundred
4 eight education aids base multiplied by an adjustment factor as deter-
5 mined by the commissioner to insure that the total special education and
6 preventive services aid payable shall equal the statewide apportionment.
7 If such sum is greater than the statewide apportionment, however, the
8 special education and preventive services aid payable shall equal the
9 lesser of the unadjusted special education and preventive services aid
10 or the product of the sum of the subdivision nineteen-a aids base and
11 the section forty-four hundred eight education aids base multiplied by
12 an adjustment factor as determined by the commissioner to insure that
13 the total special education and preventive services aid payable shall
14 not exceed the statewide apportionment.
15 4. Additional apportionment for high excess cost. A school district
16 having a high excess cost pupil shall be entitled to an additional
17 apportionment for each such child computed by multiplying the district’s
18 high excess cost aid ratio by the amount by which such pupil’s approved
19 cost during the base year exceeds three times the district’s expense per
20 pupil without limits.
21 5. The commissioner shall adopt regulations to implement the
22 provisions of this subdivision.
23 6. Notwithstanding section thirty-six hundred nine-a of this chapter,
24 the apportionments provided for in this subdivision shall be paid pursu-
25 ant to section thirty-six hundred nine-b of this chapter.
26 § 36. Paragraph a of subdivision 26 of section 3602 of the education
27 law, as amended by section 52 of part A of chapter 436 of the laws of
28 1997, is amended to read as follows:
287 13001-04-9
1 a. In addition to any other apportionment under this section, a school
2 district shall be eligible for an apportionment under the provisions of
3 this subdivision for approved expenses for (i) the purchase or lease of
4 micro and/or mini computer equipment or terminals for instructional
5 purposes or (ii) technology equipment, as defined in paragraph b of this
6 subdivision, used for instructional purposes pursuant to a plan devel-
7 oped by the district which demonstrates to the satisfaction of the
8 commissioner that the instructional computer hardware needs of the
9 district’s students have been adequately met, or (iii) for the repair of
10 such equipment and training and staff development for instructional
11 purposes as provided hereinafter. The apportionment shall equal the
12 lesser of such approved expense or, the product of (i) the technology
13 factor, (ii) the total aidable pupil units for operating aid, and (iii)
14 the building aid ratio. For aid payable in the nineteen hundred ninety-
15 seven--ninety-eight and nineteen hundred ninety-eight--ninety-nine
16 school years, the technology factor shall be ten dollars and sixty-one
17 cents; for aid payable in the nineteen hundred ninety-nine--two thousand
18 school year, the technology factor shall be twelve dollars and seventy
19 cents; for aid payable in the two thousand--two thousand one school
20 year, the technology factor shall be nineteen dollars and twenty-five
21 cents; for aid payable in the two thousand one--two thousand two school
22 year and thereafter, the technology factor shall be thirty-two dollars
23 and thirty-five cents.
24 A school district may use up to twenty percent of the [its apportion-
25 ment pursuant to this section] product of (i) the technology factor,
26 (ii) the total aidable pupil units for operating aid, and (iii) the
27 building aid ratio for the repair of instructional computer hardware and
288 13001-04-9
1 technology equipment [or for] and training and staff development for
2 instructional purposes pursuant to a plan submitted to the commissioner.
3 § 37. Section 3602-b of the education law, as added by chapter 777 of
4 the laws of 1963 and subdivision 2 as amended by chapter 561 of the laws
5 of 1965, is amended to read as follows:
6 § 3602-b. Apportionment of moneys to school districts employing fewer
7 than eight teachers. 1. Notwithstanding any other provision of law,
8 each school district of the state employing fewer than eight teachers
9 shall receive its apportionment of public money payable during the
10 school year commencing July first, nineteen hundred sixty-three and
11 during subsequent school years pursuant to the provisions of this
12 section. Such apportionment shall be computed by applying the [aid] the
13 state sharing ratio for comprehensive operating aid of the district
14 computed in the same manner as provided in section thirty-six hundred
15 two of the education law to the approved expense of the school district
16 for operating purposes and for transportation.
17 a. Approved operating expense shall be for the year prior to the base
18 year as defined in section thirty-six hundred two of this article and
19 shall be determined in the same manner provided in such section,
20 provided, however, that the amount so approved shall not exceed the sum
21 of (1) four thousand five hundred dollars multiplied by the lesser of
22 the number of full-time teachers employed during such year prior to the
23 base year [but not exceeding the number allowable during such year
24 pursuant to regulations established by the commissioner of education] or
25 seven and (2) weighted average daily attendance as defined in section
26 thirty-six hundred two of this article for the base year multiplied by
27 the sum of sixty dollars plus an amount computed by multiplying ninety
28 cents by such weighted average daily attendance. [For purposes of this
289 13001-04-9
1 section the average daily attendance of kindergarten pupils who attended
2 school but one-half day shall be divided by two.] Any such district
3 employing three or more teachers shall be permitted to use the weighted
4 average daily attendance averaged over the three year period immediately
5 preceding the current year as defined in section thirty-six hundred two
6 of this article.
7 b. Approved transportation expense shall be for the base year and
8 shall be determined in the same manner as provided in subdivision seven
9 of section thirty-six hundred two of this chapter.
10 2. [Notwithstanding any other provisions of this chapter, no such
11 school district shall be paid a lesser apportionment than was paid to
12 such district during the school year nineteen hundred sixty-four--six-
13 ty-five except as provided in this subdivision or in subdivision three
14 of this section. If the number of full-time teachers employed or allow-
15 able pursuant to this section in a district (whichever is the smaller)
16 should decrease in any subsequent base year from the number actually
17 employed during the school year ending June thirtieth, nineteen hundred
18 sixty-four, the amount of such apportionment shall be reduced in the
19 same proportion as the reduction in such number of teachers. If the aid
20 ratio of a district computed for any current year should decrease below
21 that computed for the current year ending June thirtieth, nineteen
22 hundred sixty-five, such apportionment shall be reduced by the differ-
23 ence between such aid ratios. If both reductions are applicable, the
24 commissioner shall use only the larger of the two in any one year.
25 3.] If the local revenue provided by any such school district in the
26 current year, as defined in section thirty-six hundred two of this chap-
27 ter, inclusive of its local nonproperty tax receipts, is less than the
28 amount which could be raised by a tax at the rate herein specified on
290 13001-04-9
1 its actual valuation as defined in such section, the apportionment for
2 such current year shall be reduced by the amount which such local reven-
3 ue is less than the amount which could be raised at such rate. The rate
4 for the school year nineteen hundred sixty-five--sixty-six and thereaft-
5 er shall be nine dollars per thousand. [The rate for the school year
6 nineteen hundred sixty-four--sixty-five shall be eight dollars per thou-
7 sand. The rate for the school year nineteen hundred sixty-three--sixty-
8 four shall be seven dollars twenty cents per thousand.]
9 § 38. Subdivision 8 of section 3604 of the education law, as amended
10 by section 43 of part C of chapter 58 of the laws of 1998, is amended to
11 read as follows:
12 8. No school shall be in session on a Saturday or a legal holiday,
13 except general election day, Washington’s birthday and Lincoln’s birth-
14 day, and except that driver education classes may be conducted on a
15 Saturday. A deficiency not exceeding three days during any school year
16 caused by teachers' attendance upon conferences held by superintendents
17 of schools of city school districts or other school districts employing
18 superintendents of schools shall be excused by the commissioner,
19 provided however, notwithstanding any other provision of law, that
20 during the nineteen hundred ninety-two--ninety-three through [ninety-
21 eight--ninety-nine] ninety-nine--two thousand school years, the commis-
22 sioner shall excuse a deficiency not exceeding four days during such
23 school year caused by teachers' attendance upon conferences held by such
24 superintendents, provided that at least two such conference days during
25 such school year shall be dedicated to staff attendance upon conferences
26 providing staff development relating to implementation of the new high
27 learning standards and assessments, as adopted by the board of regents.
291 13001-04-9
1 § 39. Section 3604 of the education law is amended by adding a new
2 subdivision 8-a to read as follows:
3 8-a. No school shall be in session on any day in which there is no
4 certificate of occupancy in place for such school, or on any day in
5 which an order of the commissioner closing the school pursuant to
6 section four hundred twelve of this chapter is in effect.
7 § 40. Subdivision 1 of section 3625 of the education law, as added by
8 chapter 474 of the laws of 1996, is amended to read as follows:
9 1. Form of transportation contracts. Every contract for transportation
10 of school children shall be in writing, and before such contract is
11 [executed] filed with the education department as required by subdivi-
12 sion two of this section, the same shall be submitted for approval to
13 the superintendent of schools of said district and such contract shall
14 not [become effective until] be approved and filed by such superinten-
15 dent [who] unless he or she shall first investigate the same with
16 particular reference to the type of conveyance, the character and abili-
17 ty of the driver, the routes over which the conveyances shall travel,
18 the time schedule, and such other matters as in the judgement of the
19 superintendent are necessary for the comfort and protection of the chil-
20 dren while being transported to and from school. Every such contract for
21 transportation of children shall contain an agreement upon the part of
22 the contractor that the vehicle shall come to a full stop before cross-
23 ing the track or tracks of any railroad and before crossing any state
24 highway.
25 § 41. Subdivision 2 of section 3635 of the education law, as amended
26 by chapter 719 of the laws of 1978, is amended to read as follows:
27 2. A parent or [guardian] person in parental relation of a child
28 residing in any school district, or any representative authorized by
292 13001-04-9
1 such parent or [guardian] person in parental relation, who desires for a
2 child during the next school year any transportation authorized or
3 directed by this chapter shall submit a written request therefor to the
4 school trustees or board of education of such district not later than
5 the first day of April preceding the next school year, provided, howev-
6 er, that a parent or [guardian] person in parental relation of a child
7 not residing in the district on such date shall submit a written request
8 within thirty days after establishing residence in the district, and the
9 parent or person in parental relation to a child seeking to attend a
10 charter school established or renewed pursuant to article fifty-six of
11 this chapter after the first day of March preceding the next school year
12 shall submit a written request within thirty days after issuance of the
13 charter by the board of regents. No late request of a parent or [guardi-
14 an] person in parental relation for transportation shall be denied where
15 a reasonable explanation is provided for the delay. If the voters,
16 school trustees, or board of education fail to provide the transporta-
17 tion authorized or directed by this chapter after receiving such a
18 request, such parent, [guardian] person in parental relation or repre-
19 sentative, or any taxpayer residing in the district, may appeal to the
20 commissioner of education, as provided in section three hundred ten of
21 this chapter. Except as hereinbefore provided, the commissioner of
22 education shall not require that such parent, [guardian] person in
23 parental relation or representative present a request for such transpor-
24 tation to any meeting of the voters, school trustees or board of educa-
25 tion in order to appeal. Upon such appeal, the commissioner of education
26 shall make such order as is required to effect compliance with the
27 provisions of this chapter and this section.
293 13001-04-9
1 § 42. Section 3641 of the education law is amended by adding two new
2 subdivisions 11 and 12 to read as follows:
3 11. Literacy first summer school program. a. Authorization of grants.
4 In addition to apportionments otherwise provided pursuant to section
5 thirty-six hundred two of this article, in the two thousand--two thou-
6 sand one school year and thereafter, the commissioner is hereby author-
7 ized to award grants to eligible school districts, eligible charter
8 schools and consortia of eligible school districts and/or charter
9 schools for services and expenses of remedial summer school programs,
10 for the purpose of providing an intensive course of summer remedial
11 instruction for fourth grade students who receive the lowest scores on
12 the English language arts assessment to be prescribed by the commission-
13 er.
14 b. Definitions. As used in this subdivision:
15 (1) "Base year" shall mean the school year immediately preceding the
16 school year for which a grant is awarded pursuant to this subdivision.
17 (2) "Basic grant" shall mean a grant awarded pursuant to this subdivi-
18 sion for a remedial summer program for those eligible students who
19 received the lowest scores on the fourth grade English language arts
20 assessment.
21 (3) "Eligible school district" shall mean a school district eligible
22 for an apportionment pursuant to section thirty-six hundred two or thir-
23 ty-six hundred two-b of this article, including the city school district
24 of the city of New York on a citywide basis.
25 (4) "Eligible charter school" shall mean a school established pursuant
26 to article fifty-six of this chapter that elects to provide a remedial
27 summer school program pursuant to this subdivision.
294 13001-04-9
1 (5) "Eligible student" shall mean a student residing in an eligible
2 school district or otherwise entitled to attend school in an eligible
3 school district or enrolled in an eligible charter school who took the
4 English language arts assessment in the base year while enrolled in a
5 public, nonpublic or charter school in the fourth grade or its equiv-
6 alent and received a score lower than the ceiling for required summer
7 remedial instruction.
8 (6) "Eligible classroom" shall mean a classroom serving fifteen
9 students with a student to staff ratio of fifteen students to one teach-
10 er and one paraprofessional, provided, however, such class size require-
11 ments may be waived by the commissioner based upon finding that there is
12 a lack of appropriate classroom facilities and/or sufficient teachers
13 and paraprofessionals willing to serve in the program; that an alterna-
14 tive configuration would be of equal or greater educational benefit to
15 eligible students, or that a classroom with less than fifteen students
16 is necessary to serve all eligible students.
17 (7) "English language arts assessment" shall mean the fourth grade
18 English language arts test prescribed by the commissioner, or, in the
19 event such test is not administered prior to March first of the base
20 year, one or more equivalent assessments of skills in reading and/or
21 writing designated by the commissioner which are administered prior to
22 March first of the base year or in the year prior to the base year.
23 (8) "Paraprofessional" shall mean a teaching assistant or teacher’s
24 aide who is qualified to serve under the provisions of subdivision two
25 of section three thousand nine of this chapter and the regulations of
26 the commissioner.
27 (9) "Ceiling for required summer remedial instruction" shall mean the
28 score on the English language arts assessment that is prescribed by the
295 13001-04-9
1 commissioner as the upper limit of eligibility to participate in a
2 summer school program funded pursuant to this subdivision for the
3 current school year, in order to assure that the maximum number of
4 students with the lowest scores are served within the amounts appropri-
5 ated for the purpose of this subdivision, provided that such ceiling
6 shall not exceed the minimum score established by the commissioner for
7 successful completion of the English language arts assessment at a basic
8 level of proficiency.
9 (10) "Passing score" shall mean the score on the English language arts
10 assessment prescribed by the commissioner as the state designated
11 performance level for basic proficiency.
12 (11) "Approved costs for transportation" shall mean the costs, as
13 approved by the commissioner, for transportation operating expense
14 incurred in transporting eligible students between home and school,
15 determined in the same manner as aidable pupil transportation provided
16 under article seventy-three of this chapter.
17 c. Applications for basic grants. Eligible school districts or charter
18 schools seeking a basic grant pursuant to this subdivision shall submit
19 an application and plan for approval of the commissioner that details
20 how the school district or charter school will use the grant funds for a
21 remedial summer program for eligible students pursuant to this subdivi-
22 sion. Two or more eligible school districts or consortia of eligible
23 school districts and/or charter schools shall submit a joint application
24 and plan that meets all requirements of this paragraph and designates an
25 eligible school district or charter school to serve as fiscal agent for
26 the purpose of receipt of grant funds pursuant to this subdivision. Such
27 plan shall be in a form prescribed by the commissioner and shall
28 include, but not be limited to, a proposed budget, and a description of:
296 13001-04-9
1 (1) the elements and instructional goals of the remedial summer
2 program to be funded and the eligible students to be served;
3 (2) the duration of the summer remedial program;
4 (3) the hours of instruction to be provided per week and the days of
5 instruction each week;
6 (4) the procedures for retention of students in grade who fail to
7 attend the remedial summer program or do not receive a passing grade on
8 a re-test of English language arts assessment, to the extent required by
9 this subdivision;
10 (5) the maximum class size and student/staff ratio of classes in the
11 remedial summer school program;
12 (6) the qualifications of the teachers and paraprofessionals who will
13 serve in the program;
14 (7) the procedures for assuring that students with disabilities have
15 access to the program as determined appropriate by the committee on
16 special education or subcommittee on special education;
17 (8) the ancillary instructional and non-instructional services to be
18 provided to eligible students attending the program, including, but not
19 limited to, transportation to the extent required by law on days of
20 session in September through June;
21 (9) the local funds that will be made available to support the twenty
22 percent local share of the new program, which may include federal funds
23 to the extent permissible under federal law; and
24 (10) a plan for evaluation of the effectiveness of the program, which
25 shall include, but need not be limited to, the impact of the program on
26 student success on a re-test of the English language arts assessment.
27 d. Award of grants. Grants shall be awarded in accordance with
28 procedures and criteria established in regulations of the commissioner,
297 13001-04-9
1 provided that such criteria shall include, but not be limited to the
2 following:
3 (1) The program shall provide developmental and remedial reading and
4 other appropriate remedial instruction in a regular education setting
5 that is targeted at addressing student deficiencies in reading and writ-
6 ing skills.
7 (2) The program shall provide a minimum of fifteen hours of instruc-
8 tion per week, and shall be six weeks in duration, provided that the
9 commissioner may waive such requirements upon a finding that a program
10 with different hours of instruction or different duration will provide
11 the equivalent or greater educational benefit to eligible students.
12 (3) The program shall be conducted a minimum of three days per week.
13 (4) Maximum class size shall not exceed fifteen students and the maxi-
14 mum student to staff ratio shall not exceed fifteen students to one
15 teacher and one paraprofessional, provided that the commissioner may
16 waive such requirements upon a finding that the district or school will
17 be unable to serve all eligible students and comply with such require-
18 ments because of a lack of appropriate facilities and/or sufficient
19 teachers and paraprofessionals willing to serve in the program, or that
20 an alternative configuration would be of equal or greater educational
21 benefit to eligible students.
22 (5) The school district has in effect a policy of requiring eligible
23 students enrolled in the school district to attend the summer remedial
24 program. The school district policy must require the retention of such
25 public school students who fail to attend such program without good
26 cause, provided such policy complies with any requirements prescribed in
27 the regulations of the commissioner, and shall not require retention of
28 students who attend. For purposes of this subparagraph, "good cause"
298 13001-04-9
1 shall mean reasons beyond the control of the student and the parents,
2 including but not limited to inability to attend by reason of documented
3 illness or injury, or that the school district has determined, based on
4 local assessment data and other documented evidence, that the student’s
5 low performance on the English language arts assessment or other state
6 assessment was anomalous and not a true indicator of the student’s read-
7 ing and writing skills.
8 (6) Eligible students enrolled in the public schools, including
9 students enrolled in the school district who were excused from attend-
10 ance in the summer remedial program based on a determination that their
11 performance was anomalous, shall be re-tested on the English language
12 arts assessment in fifth grade. Any student who does not receive a pass-
13 ing grade on the re-test shall be retained in grade.
14 (7) The school district has made appropriate arrangements to serve
15 eligible students who are enrolled in nonpublic schools on a voluntary
16 basis, including the provision of notice to parents of nonpublic school
17 students of the availability of the program, either directly or through
18 the nonpublic schools attended by eligible students.
19 (8) Procedures are in place for review by the committee or subcommit-
20 tee on special education, prior to commencement of the summer remedial
21 program, of the individualized education program of each eligible
22 student who is a student with a disability to determine the appropriate-
23 ness of providing such student with instruction in the remedial summer
24 school program and to recommend any necessary changes in the student’s
25 individualized education program.
26 (9) In the second or a subsequent year of operation of a remedial
27 summer program pursuant to this subdivision, a showing satisfactory to
299 13001-04-9
1 the commissioner that the program has been effective in improving
2 student results.
3 e. Determination of grant award. Notwithstanding subdivision one of
4 this section, each eligible school district, eligible charter school, or
5 consortium of eligible districts and/or charter schools approved for
6 funding by the commissioner shall receive a grant award computed pursu-
7 ant to this paragraph.
8 (1) The maximum grant award per eligible classroom shall equal the
9 lesser of:
10 (i) the result obtained when eighty hundredths is multiplied by the
11 actual costs of the eligible classroom, including the approved costs for
12 transportation and the approved costs of other ancillary instructional
13 services and expenses; or
14 (ii) the result obtained when eighty hundredths is multiplied by the
15 sum of: (A) twelve percent of the median teacher salary of common branch
16 elementary teachers in the eligible school district or districts, or
17 charter school, in the year prior to the base year, (B) twelve percent
18 of the median salary of a teacher’s aide in the eligible school district
19 or districts, or charter school, in the year prior to the base year, or
20 in the case of a district or school that does not employ teacher’s
21 aides, the median salary of a paraprofessional in the district or school
22 in the year prior to the base year, (C) approved costs of other ancil-
23 lary instructional services and expenses, but not more than twenty-five
24 per centum of the sum of the amounts computed in subclauses (A) and (B)
25 of this clause, and (D) the approved costs for transportation. Where the
26 program is operated by a consortium of eligible districts and/or charter
27 schools, the median teacher salaries and teacher’s aide salaries for all
28 participating eligible districts and/or charter schools shall be aver-
300 13001-04-9
1 aged, without any proration based on number of eligible students partic-
2 ipating.
3 (2) The maximum grant award shall equal the product of the maximum
4 grant award per eligible classroom and the number of eligible classrooms
5 funded pursuant to this subdivision.
6 (3) Notwithstanding any other provision of law to the contrary, the
7 attendance or enrollment of eligible students attending a remedial
8 summer school program shall be excluded in determining aid pursuant to
9 section thirty-six hundred two of this chapter, transportation expenses
10 incurred pursuant to this subdivision shall not be eligible for aid
11 under subdivision seven of such section thirty-six hundred two, and
12 expenses incurred pursuant to this subdivision shall not be eligible for
13 aid pursuant to section nineteen hundred fifty of this chapter.
14 f. Use of grant funds. Grant funds awarded pursuant to this subdivi-
15 sion shall be used for the approved expenses of the program as defined
16 by the commissioner.
17 g. Eligibility for transportation. The eligibility of students
18 attending the program for transportation shall be determined in the same
19 manner as eligibility for transportation provided pursuant to section
20 thirty-six hundred thirty-five of this chapter and shall be subject to
21 the same mileage limits, except that parents of eligible students who
22 are nonpublic school students or charter school students shall not be
23 required to submit a request for such transportation by the preceding
24 April first and shall be transported on the same basis as public school
25 students.
26 h. Retention of public school students. Except as otherwise provided
27 in this paragraph, eligible students enrolled in the school district who
28 fail to attend the summer remedial program without good cause, as
301 13001-04-9
1 defined in subparagraph five of paragraph d of this subdivision shall be
2 retained in the fourth grade, and shall be provided the remedial
3 services required under the regulations of the commissioner. Eligible
4 students enrolled in the school district who attend the summer remedial
5 program and are advanced by the trustees or board of education to fifth
6 grade shall be provided the remedial services required under the regu-
7 lations of the commissioner. In the event that such fifth grade student
8 does not obtain a passing score on a re-test of the English language
9 arts assessment in the fifth grade, the trustees or board of education
10 shall retain such student based upon such re-test. The provisions of
11 this paragraph shall apply to an eligible student who is a student with
12 a disability, to the extent retention in grade is consistent with such
13 student’s individualized education program.
14 i. Eligible school districts may contract with boards of cooperative
15 educational services for the provision of services pursuant to this
16 section.
17 j. The commissioner shall promulgate any regulations necessary to
18 implement this subdivision.
19 12. Literacy first summer school program for students of limited
20 English proficiency. a. Authorization of grants. In addition to appor-
21 tionments otherwise provided pursuant to section thirty-six hundred two
22 of this article, in the two thousand--two thousand one school year and
23 thereafter, the commissioner is hereby authorized to award grants to
24 eligible school districts, eligible charter schools and consortia of
25 eligible school districts and/or charter schools for services and
26 expenses of summer school programs for students with limited English
27 proficiency, for the purpose of providing an intensive course of summer
302 13001-04-9
1 instruction for students of limited English proficiency following grades
2 kindergarten through two.
3 b. Definitions. As used in this subdivision:
4 (1) "Base year" shall mean the school year immediately preceding the
5 school year for which a grant is awarded pursuant to this subdivision.
6 (2) "Basic grant" shall mean a grant awarded pursuant to this subdivi-
7 sion for a summer school program for eligible students of limited
8 English proficiency following grades kindergarten through two.
9 (3) "Eligible school district" shall mean a school district eligible
10 for an apportionment pursuant to section thirty-six hundred two or thir-
11 ty-six hundred two-b of this article, including the city school district
12 of the city of New York on a citywide basis.
13 (4) "Eligible charter school" shall mean a school established pursuant
14 to article fifty-six of this chapter that elects to provide a summer
15 school program for students of limited English proficiency pursuant to
16 this subdivision.
17 (5) "Eligible student" shall mean a student residing in an eligible
18 school district or otherwise entitled to attend school in an eligible
19 school district or enrolled in an eligible charter school who is a
20 student of limited English proficiency and was in any of grades kinder-
21 garten through two in a public, nonpublic, or charter school in the base
22 year.
23 (6) "Eligible classroom" shall mean a classroom serving fifteen
24 students with a student to staff ratio of fifteen students to one teach-
25 er and one paraprofessional, provided, however, such class size require-
26 ments may be waived by the commissioner based upon finding that there is
27 a lack of appropriate classroom facilities and/or sufficient teachers
28 and paraprofessionals willing to serve in the program; that an alterna-
303 13001-04-9
1 tive configuration would be of equal or greater educational benefit to
2 eligible students, or that a classroom with less than fifteen students
3 is necessary to serve all eligible students.
4 (7) "Paraprofessional" shall mean a teaching assistant or teacher’s
5 aide who is qualified to serve under the provisions of subdivision two
6 of section three thousand nine of this chapter and the regulations of
7 the commissioner.
8 (8) "Student of limited English proficiency" shall mean a pupil who is
9 determined to be eligible for instructional programs for pupils of
10 limited English proficiency in accordance with subdivision three of
11 section thirty-two hundred four of this chapter.
12 (9) "Approved costs for transportation" shall mean the costs, as
13 approved by the commissioner, for transportation operating expense
14 incurred in transporting eligible students between home and school,
15 determined in the same manner as aidable pupil transportation provided
16 under this chapter.
17 c. Applications for basic grants. Eligible school districts or charter
18 schools seeking a basic grant pursuant to this subdivision shall submit
19 an application and plan for approval of the commissioner that details
20 how the school district or charter school will use the grant funds for a
21 summer program for eligible students pursuant to this subdivision. Two
22 or more eligible school districts or consortia of eligible school
23 districts and/or charter schools shall submit a joint application and
24 plan that meets all requirements of this paragraph and designates an
25 eligible school district or eligible charter school to serve as fiscal
26 agent for the purpose of receipt of grant funds pursuant to this subdi-
27 vision. Such plan shall be in a form prescribed by the commissioner and
304 13001-04-9
1 shall include, but not be limited to, a proposed budget, and a
2 description of:
3 (1) the elements and instructional goals of the summer program for
4 students of limited English proficiency to be funded and the eligible
5 students to be served;
6 (2) the duration of the summer program;
7 (3) the hours of instruction to be provided per week and the days of
8 instruction each week;
9 (4) the class size and student/staff ratio of classes in the summer
10 school program for students of limited English proficiency;
11 (5) the qualifications of the teachers and paraprofessionals who will
12 serve in the program;
13 (6) the procedures for assuring that eligible students who are
14 students with disabilities have access to the program as determined
15 appropriate by the committee on special education or subcommittee on
16 special education;
17 (7) the ancillary instructional and noninstructional services to be
18 provided to eligible students attending the program, including, but not
19 limited to, transportation to the extent required by law on days of
20 session in September through June;
21 (8) the local funds that will be made available to support the twenty
22 percent local share of the new program, which may include federal funds
23 to the extent permissible under federal law; and
24 (9) a plan for evaluation of the effectiveness of the program, which
25 shall include, but need not be limited to, the impact of the program on
26 student success on state assessments of skills in reading and writing
27 English.
305 13001-04-9
1 d. Award of grants. Grants shall be awarded in accordance with proce-
2 dures and criteria established in regulations of the commissioner,
3 provided that such criteria shall include, but not be limited to the
4 following:
5 (1) The program shall provide instruction in a regular education
6 setting designed to improve student performance in reading and writing
7 English, through an English immersion program or other similar model
8 determined by the commissioner to be educationally appropriate.
9 (2) The program shall provide a minimum of fifteen hours of instruc-
10 tion per week, and shall be six weeks in duration, provided that the
11 commissioner may waive such requirements upon a finding that a program
12 with different hours of instruction or different duration will provide
13 the equivalent or greater educational benefit to eligible students.
14 (3) The program shall be conducted a minimum of three days per week.
15 (4) Maximum class size shall not exceed fifteen students and the maxi-
16 mum student to staff ratio shall not exceed fifteen students to one
17 teacher and one paraprofessional, provided that the commissioner may
18 waive such requirements upon a finding that the district or school will
19 be unable to serve all eligible students and comply with such require-
20 ments because of a lack of appropriate facilities and/or sufficient
21 teachers and paraprofessionals willing to serve in the program, or that
22 an alternative configuration would be of equal or greater educational
23 benefit to eligible students.
24 (5) At the discretion of the school district, the district has made
25 appropriate arrangements to serve eligible students who are enrolled in
26 nonpublic schools on a voluntary basis.
27 (6) Procedures are in place for review by the committee or subcommit-
28 tee on special education, prior to commencement of the summer program,
306 13001-04-9
1 of the individualized education program of each eligible student who is
2 a student with a disability to determine the appropriateness of provid-
3 ing such student with instruction in the summer school program and to
4 recommend any necessary changes in the student’s individualized educa-
5 tion program.
6 (7) In the second or a subsequent year of operation of a summer
7 program for students of limited English proficiency pursuant to this
8 subdivision, a showing satisfactory to the commissioner that the program
9 has been effective in improving student results.
10 e. Determination of grant award. Each eligible school district,
11 eligible charter school, or consortium of eligible districts and/or
12 charter schools approved for funding by the commissioner shall receive a
13 grant award computed pursuant to this paragraph.
14 (1) The maximum grant award per eligible classroom shall equal the
15 lesser of:
16 (i) the result obtained when eighty hundredths is multiplied by the
17 actual costs of the eligible classroom, including the approved costs for
18 transportation and the approved costs of other ancillary instructional
19 services and expenses; or
20 (ii) the result obtained when eighty hundredths is multiplied by the
21 sum of: (A) twelve percent of the median teacher salary of common branch
22 elementary teachers in the eligible school district or districts, or
23 charter school, in the year prior to the base year, (B) twelve percent
24 of the median salary of a teacher’s aide in the eligible school district
25 or districts, or charter school, in the year prior to the base year, or
26 in the case of a district or school that does not employ teacher’s
27 aides, the median salary of a paraprofessional in the district in the
28 year prior to the base year, (C) approved costs of other ancillary
307 13001-04-9
1 instructional services and expenses, but not more than twenty-five per
2 centum of the sum of the amounts computed in subclauses (A) and (B) of
3 this clause, and (D) the approved costs for transportation. Where the
4 program is operated by a consortium of eligible districts and/or charter
5 schools, the median teacher salaries and teacher’s aide salaries for all
6 participating eligible districts and charter schools shall be averaged,
7 without any proration based on number of eligible students participat-
8 ing.
9 (2) The maximum grant award shall equal the product of the maximum
10 grant award per eligible classroom and the number of eligible classrooms
11 funded pursuant to this subdivision.
12 (3) Notwithstanding any other provision of law to the contrary, the
13 attendance or enrollment of eligible students attending a summer school
14 program for students of limited English proficiency shall be excluded in
15 determining aid pursuant to section thirty-six hundred two of this arti-
16 cle, the costs of such summer program shall not be eligible for aid
17 pursuant to subdivision twenty-two of section thirty-six hundred two of
18 this article, transportation expenses incurred pursuant to this subdivi-
19 sion shall not be eligible for aid under subdivision seven of section
20 thirty-six hundred two of this article, and expenses incurred pursuant
21 to this subdivision shall not be eligible for aid pursuant to section
22 nineteen hundred fifty of this chapter.
23 f. Use of grant funds. Grant funds awarded pursuant to this subdivi-
24 sion shall be used for the approved expenses of the program as defined
25 by the commissioner.
26 g. Eligibility for transportation. The eligibility of students attend-
27 ing the program for transportation shall be determined in the same
28 manner as eligibility for transportation provided pursuant to section
308 13001-04-9
1 thirty-six hundred thirty-five of this article and shall be subject to
2 the same mileage limits, except that parents of eligible students who
3 are nonpublic school students or charter school students shall not be
4 required to submit a request for such transportation by the preceding
5 April first and shall be transported on the same basis as public school
6 students.
7 h. Eligible school districts may contract with boards of cooperative
8 educational services for the provision of services pursuant to this
9 section.
10 i. The commissioner shall promulgate any regulations necessary to
11 implement this subdivision.
12 § 43. Subparagraph 1 of paragraph b of subdivision 1 of section 4402
13 of the education law, as amended by chapter 273 of the laws of 1986, the
14 opening paragraph and clauses (a) and (b) as amended by chapter 82 of
15 the laws of 1995, is amended to read as follows:
16 (1) The board of education or trustees of each school district shall
17 establish committees and/or subcommittees on special education as neces-
18 sary to ensure timely evaluation and placement of pupils. The board of
19 education of the city school district of the city of New York, shall
20 establish at least one committee on special education in each of its
21 community school districts, provided that appointments to the community
22 school district committees shall be made upon the approval of the commu-
23 nity school board except that the board of education of the city school
24 district of the city of New York, may establish one committee to serve
25 more than one community school district, in which case, appointments
26 thereto shall be made upon the joint approval of the affected community
27 school boards; provided, however, that prior to such consolidation, the
28 board shall consider the relative caseload of the committee on special
309 13001-04-9
1 education in each affected community school district, including but not
2 limited to the following factors: the number of students evaluated by
3 such committee; the number of referrals to special education in such
4 community school district; the ability to comply with mandated paperwork
5 and timelines; and other issues which the board deems pertinent.
6 (a) Such committees shall be composed of at least the [child’s teacher
7 as defined by applicable federal regulations,] following members: (i)
8 the parents or persons in parental relationship of the student; (ii) one
9 regular education teacher of the student whenever the student is or may
10 be participating in the regular education environment; (iii) one special
11 education teacher of the student selected by the school district, or, if
12 appropriate, a licensed or certified related service provider of the
13 student selected by the school district; (iv) a school psychologist[,];
14 (v) a representative of such school district who is qualified to provide
15 or administer or supervise special education[,] and is knowledgeable
16 about the general curriculum and the availability of resources of the
17 school district; (vi) a licensed or certified professional who can
18 interpret the instructional implications of evaluation results; (vii) a
19 school physician [,a] (viii) an additional parent of a [handicapped
20 child] student with a disability residing in the school district or a
21 neighboring school district, provided such parent shall not be employed
22 by or under contract with the school district, and provided further that
23 such additional parent shall not be a required member if the parents or
24 persons in parental relationship of the student request that such addi-
25 tional parent member not participate; (ix) such other persons having
26 knowledge or special expertise regarding the student as the board of
27 education or the board of trustees or the parents or persons in parental
310 13001-04-9
1 relationship to the student shall designate, to the extent required
2 under federal law; and (x) if appropriate, the student.
3 (b) In determining the composition of such committee pursuant to
4 clause (a) of this subparagraph, a school district may determine that a
5 member appointed pursuant to one of subclauses (ii),(iii),(iv), or (v)
6 of clause (a) may also fulfill the requirement of subclause (vi) of
7 clause (a) of a member who is a licensed or certified professional who
8 can interpret the instructional implications of evaluation results
9 provided such individuals are determined by the school district to have
10 the knowledge and expertise to do so, and/or that the school psychol-
11 ogist member appointed pursuant to subclause (iv) of clause (a) also
12 fulfills the requirement of subclause (v) of clause (a) of a member who
13 is a representative of the school district. The regular education teach-
14 er of the student shall participate in the development, review and
15 revision of the individualized education program for the student, to the
16 extent required under federal law. The school physician need not be in
17 attendance at any meeting of the committee on special education unless
18 specifically requested in writing, at least seventy-two hours prior to
19 such meeting by the parents or [guardian of] other person in parental
20 relationship to the [child] student in question, the [child] student, or
21 a member of the committee on special education. The parents or [guardi-
22 an] persons in parental relationship of the [child] student in question
23 shall receive proper written notice of their right to have the school
24 physician attend the meetings of the committee on special education upon
25 referral of said [child] student to the committee on special education
26 or whenever such committee plans to modify or change the identification,
27 evaluation or educational placement of the [child] student and their
28 right to request that the additional parent member not participate at
311 13001-04-9
1 any meeting of the committee regarding the student. The committee shall
2 invite the appropriate professionals most familiar with a [child’s hand-
3 icap or handicaps] student’s disability or disabilities to attend any
4 meeting concerning the educational program for such [child] student.
5 Members of such committee shall serve at the pleasure of such board and
6 members who are neither employees of nor under contract with such
7 district shall serve without compensation except that such members shall
8 be entitled to a per diem to defray expenses incurred in such service,
9 provided, however, that any expense incurred shall be deemed an aidable
10 operating expense for purposes of state aid.
11 [(a)] (c) Districts not having available personnel may share the
12 services of a local committee on special education with another school
13 district or contract with a board of cooperative educational services
14 for such personnel pursuant to regulations of the commissioner. A
15 district having a subcommittee on special education may share the
16 services of a local committee on special education with another school
17 district, provided that a representative of such school district who is
18 qualified to provide or administer or supervise special education and is
19 knowledgeable about the general curriculum and the availability of
20 resources of the school district shall be a member of such committee
21 when it convenes on behalf of a [child with a handicapping condition]
22 student who is a resident of such district.
23 [(b)] (d) Boards of education in city school districts in cities
24 having in excess of one hundred twenty-five thousand inhabitants shall
25 appoint subcommittees on special education, to the extent necessary to
26 ensure timely evaluation and placement of [pupils with handicapping
27 conditions] students with disabilities. Boards of education or trustees
28 of any school district outside of a city having a population in excess
312 13001-04-9
1 of one hundred twenty-five thousand inhabitants may appoint subcommit-
2 tees on special education to assist the board of education in accordance
3 with this clause and the regulations of the commissioner. The membership
4 of each subcommittee shall include, but not be limited to, the [child’s
5 teacher as defined by the applicable federal regulations and a represen-
6 tative of such school district who is qualified to provide, administer
7 or supervise special education] the committee members required by
8 subclauses (i), (ii), (iii), (v), (vi), (ix) and (x) of clause (a) of
9 this subparagraph, and a school psychologist whenever a new psycholog-
10 ical evaluation is reviewed or a change to a more restrictive program
11 option, as defined in regulations of the commissioner, is considered.
12 Except when (i) a [child] student is considered for initial placement in
13 a special class, or (ii) a [child] student is considered for initial
14 placement in a special class outside of the [child’s] student’s school
15 of attendance, or (iii) whenever a [child] student is considered for
16 placement in a school primarily serving [children with handicapping
17 conditions] students with disabilities or a school outside of the
18 [child’s] student’s district, each subcommittee may perform the func-
19 tions for which the committee on special education is responsible pursu-
20 ant to the provisions of this subdivision. Each subcommittee shall
21 report annually the status of each [handicapped pupil] student with a
22 disability within its jurisdiction to the committee on special educa-
23 tion, and the subcommittee shall refer to the committee, upon receipt of
24 a written request from the parent or person in parental relationship to
25 a [pupil] student, any matter in which the parent disagrees with the
26 subcommittee’s recommendation concerning a modification or change in the
27 identification, evaluation, educational placement or provision of a free
28 appropriate public education to such [pupil] student. The committee on
313 13001-04-9
1 special education shall be responsible for oversight and monitoring of
2 the activities of each subcommittee to assure compliance with the
3 requirements of applicable and federal law and regulations.
4 § 44. Subdivision 6 of section 4402 of the education law, as amended
5 by section 54 of part C of chapter 58 of the laws of 1998, is amended to
6 read as follows:
7 6. Notwithstanding any other law, rule or regulation to the contrary,
8 the board of education of a city school district with a population of
9 one hundred twenty-five thousand or more inhabitants shall be permitted
10 to establish maximum class sizes for special classes for certain
11 students with disabilities in accordance with the provisions of this
12 subdivision. For the purpose of obtaining relief from any adverse fiscal
13 impact from under-utilization of special education resources due to low
14 student attendance in special education classes at the middle and
15 secondary level as determined by the commissioner, such boards of educa-
16 tion shall, during the school years nineteen hundred ninety-five--nine-
17 ty-six through nineteen hundred [ninety-eight--ninety-nine] ninety-nine-
18 -two thousand, be authorized to increase class sizes in special classes
19 containing students with disabilities whose age ranges are equivalent to
20 those of students in middle and secondary schools as defined by the
21 commissioner for purposes of this section by up to but not to exceed one
22 and two tenths times the applicable maximum class size specified in
23 regulations of the commissioner rounded up to the nearest whole number,
24 provided that the projected average class size shall not exceed the
25 maximum specified in the applicable regulation, provided that such
26 authorization shall terminate on June thirtieth, [nineteen hundred nine-
27 ty-nine] two thousand. Such authorization shall be granted upon filing
28 of a notice by such a board of education with the commissioner stating
314 13001-04-9
1 the board’s intention to increase such class sizes and a certification
2 that the board will conduct a study of attendance problems at the
3 secondary level and will implement a corrective action plan to increase
4 the rate of attendance of students in such classes to at least the rate
5 for students attending regular education classes in secondary schools of
6 the district. Such corrective action plan shall be submitted for
7 approval by the commissioner by a date during the school year in which
8 such board increases class sizes as provided pursuant to this subdivi-
9 sion to be prescribed by the commissioner. Upon at least thirty days
10 notice to the board of education, after conclusion of the school year in
11 which such board increases class sizes as provided pursuant to this
12 subdivision, the commissioner shall be authorized to terminate such
13 authorization upon a finding that the board has failed to develop or
14 implement an approved corrective action plan.
15 § 45. Subdivisions 1, 2 and 3 of section 4408 of the education law,
16 as amended by chapter 82 of the laws of 1995 and subdivision 1 as
17 amended by chapter 474 of the laws of 1996, are amended to read as
18 follows:
19 1. State aid. a. State aid payable for the nineteen hundred ninety-
20 nine--two thousand and prior school years. Except as otherwise provided
21 in paragraph d of subdivision five of section thirty-two hundred two of
22 this chapter, for aid payable in the nineteen hundred ninety-nine--two
23 thousand and prior school years the commissioner shall make payments for
24 approved July and August programs for students with disabilities in
25 accordance with this section in an amount equal to eighty percent of the
26 sum of the approved tuition and maintenance rates and the transportation
27 expense for the current year enrollment of students with disabilities
28 ages five through twenty-one or students eligible for services during
315 13001-04-9
1 July and August pursuant to article eighty-five, eighty-seven or eight-
2 y-eight of this chapter, where such costs are determined pursuant to
3 section forty-four hundred five of this article, provided that the
4 placement of such students was approved by the commissioner, if
5 required.
6 b. State aid payable for the two thousand--two thousand one school
7 year and thereafter. Except as otherwise provided in paragraph d of
8 subdivision five of section thirty-two hundred two of this chapter, for
9 aid payable in the two thousand--two thousand one school year and there-
10 after, the commissioner shall make the following payments for approved
11 July and August programs for students with disabilities in accordance
12 with this section:
13 (i) Tuition expenses generally. Approved tuition expenses incurred by
14 public school districts for the enrollment of students with disabilities
15 ages five through twenty-one eligible for services during July and
16 August, other than students eligible for services during July and August
17 pursuant to article eighty-five, eighty-seven or eighty-eight of this
18 chapter, shall be an eligible use of funding provided in paragraph two
19 of subdivision nineteen-b of section thirty-six hundred two of this
20 chapter.
21 (ii) Certain tuition expenses. An amount equal to seventy percent of
22 the sum of the approved tuition rates for the current year enrollment of
23 students eligible for services during July and August pursuant to arti-
24 cle eighty-five, eighty-seven or eighty-eight of this chapter, where
25 such costs are determined pursuant to section forty-four hundred five of
26 this article, provided that the placement of such students was approved
27 by the commissioner, if required.
316 13001-04-9
1 (iii) Transportation expenses. Allowable transportation expenses
2 incurred in the school year two thousand--two thousand one and thereaft-
3 er by a public school district for the enrollment of students with disa-
4 bilities ages five through twenty-one in July and August programs pursu-
5 ant to this section, including students eligible for services during
6 July and August pursuant to article eighty-five, eighty-seven or eight-
7 y-eight of this chapter, shall be aided pursuant to subdivision four of
8 section forty-four hundred one of this article and subdivision seven of
9 section thirty-six hundred two of this chapter.
10 c. Duration of programs. Such programs shall operate for six weeks and
11 shall be funded for thirty days of service, provided, however, that the
12 observance of the legal holiday for Independence day may constitute a
13 day of service.
14 d. Payment of tuition and maintenance expenses to providers for
15 expenses incurred in the nineteen hundred ninety-nine--two thousand and
16 prior school years. Upon certification by the school district in which
17 the student resides, that such services were provided, such payment
18 shall be made to the provider of such services, in accordance with the
19 provisions of subdivision three of this section.
20 2. Chargeback to a municipality[. Ten] For expenses incurred in the
21 nineteen hundred ninety-nine--two thousand and prior school years, ten
22 percent of the approved cost of July and August services provided pursu-
23 ant to this section for each student shall be a charge against the muni-
24 cipality in which the parent, or person in parental relationship to such
25 student, resided on July first of the school year in which such services
26 were provided. For expenses incurred in the two thousand--two thousand
27 one school year and thereafter, the approved cost of maintenance
28 services provided pursuant to this section and articles eighty-seven or
317 13001-04-9
1 eighty-eight of this chapter in July and August for each student shall
2 be a charge against the municipality in which the parent, or person in
3 parental relationship to such student, resided on July first of the
4 school year in which such services were provided, where such costs are
5 determined pursuant to section forty-four hundred five of this article,
6 provided that the placement of such students was approved by the commis-
7 sioner, if required. The comptroller shall deduct from any state funds
8 which become due to a municipality an amount equal to such ten percent
9 required in accordance with this subdivision which amount shall be cred-
10 ited to the local assistance account of the state education department
11 as designated by the division of the budget.
12 3. Payment schedule. [Moneys] For aid payable in the nineteen hundred
13 ninety-nine--two thousand and prior school years, moneys appropriated
14 annually to the department from the general fund - local assistance
15 account under the elementary, middle and secondary education program for
16 July and August programs for students with disabilities, shall be used
17 as follows: (i) for remaining base year and prior school years obli-
18 gations, (ii) for the purposes of subdivision four of this section for
19 schools operated under articles eighty-seven and eighty-eight of this
20 chapter, and (iii) notwithstanding any inconsistent provisions of this
21 chapter, for payments made pursuant to this section for current school
22 year obligations, provided, however, that such payments shall not exceed
23 seventy percent of the state aid due for the sum of the approved tuition
24 and maintenance rates and transportation expense provided for herein;
25 provided, however, that payment of eligible claims shall be payable in
26 the order that such claims have been approved for payment by the commis-
27 sioner, but in no case shall a single payee draw down more than forty-
28 five percent of the appropriation provided for the purposes of this
318 13001-04-9
1 section, and provided further that no claim shall be set aside for
2 insufficiency of funds to make a complete payment, but shall be eligible
3 for a partial payment in one year and shall retain its priority date
4 status for appropriations provided for this section in future years.
5 § 46. Subdivision 1 of section 4410 of the education law is amended by
6 adding a new paragraph a-1 to read as follows:
7 a-1. "Approved private evaluator" means an approved evaluator other
8 than a school district.
9 § 47. Paragraph a of subdivision 3 of section 4410 of the education
10 law, as amended by chapter 474 of the laws of 1996, is amended to read
11 as follows:
12 a. Each such board shall establish one or more committees to conduct
13 meetings to develop, review and revise the individualized education
14 program of a preschool child with a disability.
15 (1) Such board shall ensure that [ each meeting includes] such commit-
16 tee is composed of at least the following [participants] members: (i)
17 the parents of the preschool child; (ii) a regular education teacher of
18 such child, certified to teach prekindergarten, whenever the child is or
19 may be participating in a regular education environment; (iii) a special
20 education teacher of the child or, if appropriate, a licensed or certi-
21 fied related service or special education itinerant service provider of
22 the child; (iv) an appropriate professional employed by the school
23 district who is qualified to provide, or supervise the provision[,] of,
24 special education, who is knowledgeable about the general curriculum of
25 the school district and the availability of preschool special education
26 programs and services and other resources in the school district and the
27 municipality, and who shall serve as chairperson of the committee; [ a]
28 (v) an additional parent of a child with a disability who resides in the
319 13001-04-9
1 school district or a neighboring school district and whose child is
2 enrolled in a preschool or elementary level education program, provided
3 that such parent shall not be employed by or under contract with the
4 school district or municipality ,and provided further that such addi-
5 tional parent shall not be a required member if the parents request that
6 such additional parent member not participate; [for a child with a disa-
7 bility who has been evaluated for the first time: a professional who
8 participated in the evaluation of the child for whom services pursuant
9 to this section are sought or an appropriate professional employed by
10 the school district, other than the chairperson, the child’s teacher, or
11 some other person present at the meeting who is knowledgeable about the
12 evaluation procedures used with the child and is familiar with the
13 results of the evaluation] (vi) a licensed or certified professional who
14 can interpret the instructional implications of evaluation results,
15 provided that such professional may be the member appointed pursuant to
16 clause (ii), (iii) or (iv) of this subparagraph where such individuals
17 are determined by the school district to have the knowledge and exper-
18 tise to do so, provided further that nothing contained herein shall be
19 construed to limit the parent or parents of the preschool child from
20 choosing to invite the private evaluator to attend and to participate in
21 the meeting and the private evaluator from participating at their invi-
22 tation, provided, however, that no approved private evaluator shall vote
23 on a committee recommendation except as required by federal law; [in any
24 meeting held to review or reevaluate the status of the preschool child,
25 the child’s teacher] (vii) such other persons having knowledge or exper-
26 tise regarding the child as the board or the parents shall designate, to
27 the extent required under federal law; and[,] for a child in transition
28 from programs and services provided pursuant to applicable federal laws
320 13001-04-9
1 relating to early intervention services, the appropriate professional
2 designated by the agency that has been charged with the responsibility
3 for the preschool child pursuant to said applicable federal laws. In
4 addition, the chief executive officer of the municipality of the
5 preschool child’s residence shall appoint an appropriately certified or
6 licensed professional to the committee. Attendance of the appointee of
7 the municipality shall not be required for a quorum.
8 (2) At least five business days prior to a meeting of the committee on
9 preschool special education notice of such meeting shall be given to
10 each committee member, including the appointee of the municipality, and
11 the parent of the preschool child, in writing by first class mail, post-
12 age prepaid, telefacsimile, or by personal service. The appropriately
13 licensed or certified professional designated by the agency that has
14 been charged with the responsibility for the preschool child pursuant to
15 applicable federal laws relating to early intervention services shall
16 attend all meetings of the committee conducted prior to the child’s
17 initial receipt of services pursuant to this section. The regular
18 education teacher of the child shall participate in the development,
19 review and revision of an individualized education program for the child
20 to the extent required under federal law. A member of such committee
21 shall be considered as a member of a committee on special education for
22 the purposes of section thirty-eight hundred eleven of this chapter.
23 § 48. Paragraphs a, b, c and d of subdivision 4 of section 4410 of the
24 education law, paragraph a as amended by chapter 705 of the laws of
25 1992, paragraph b as added by chapter 243 of the laws of 1989, paragraph
26 c as amended by chapter 474 of the laws of 1996 and paragraph d as
27 amended by chapter 520 of the laws of 1993, are amended to read as
28 follows:
321 13001-04-9
1 a. The board shall identify each preschool child suspected of having a
2 [handicapping condition] disability who resides within the district and,
3 upon referral to the committee shall, with the consent of the parent,
4 conduct or otherwise provide for [an] a multi-disciplinary evaluation
5 related to the suspected disability of the child. Notwithstanding any
6 other provision of law, the board may contract with an approved private
7 evaluator to conduct an evaluation, or any portion thereof, of a
8 preschool child suspected of having a disability or a preschool child
9 with a disability. The board shall make such identification in accord-
10 ance with regulations of the commissioner.
11 b. Each board that determines to conduct the evaluation by contract
12 with an approved private evaluator shall, within time limits established
13 by the commissioner, be responsible for providing the parent of a
14 preschool child suspected of having a [handicapping condition] disabili-
15 ty with a list of approved private evaluators in the geographic area.
16 The [parent may] board shall select the approved private evaluator from
17 such list, provided however that the parent may have an independent
18 evaluation conducted by an approved private evaluator at the expense of
19 the school district under the same circumstances as the parent of a
20 student with a disability of school age. Each board shall provide for
21 dissemination of the list and other information to parents at appropri-
22 ate sites, including but not limited to pre-kindergarten, day care, head
23 start programs and early childhood direction centers, pursuant to regu-
24 lations of the commissioner.
25 c. The documentation of the evaluation shall include all assessment
26 reports and a summary report of the findings of the evaluation on a form
27 prescribed by the commissioner including a detailed statement of the
28 preschool child’s individual needs. The summary report and the assess-
322 13001-04-9
1 ment reports shall not make reference to any specific provider of
2 special services or programs. In addition, with the consent of the
3 parents, approved private evaluators that conduct the evaluation and
4 committees shall be provided with the most recent evaluation report for
5 a child in transition from programs and services provided pursuant to
6 title [two-a] two-A of article twenty-five of the public health law.
7 Nothing shall prohibit [an] the school district personnel or approved
8 private evaluator conducting the evaluation, or the committee, from
9 reviewing other assessments or evaluations to determine if such assess-
10 ments or evaluations fulfill the requirements of the regulations of the
11 commissioner. Notwithstanding any inconsistent provisions of this
12 section, the committee, in its discretion, may obtain an evaluation of
13 the child from another approved evaluator prior to making any recommen-
14 dation that would place a child in the approved program that conducted
15 the initial evaluation of the child.
16 d. The school district personnel or approved private evaluator
17 conducting the evaluation shall, following completion of the evaluation,
18 transmit the documentation of the evaluation to all members of the
19 committee and to a person designated by the municipality in which the
20 preschool child resides. Each municipality shall notify the approved
21 evaluators in the geographic area of the person so designated. The
22 summary report of the evaluation shall be transmitted in English and
23 when necessary, also in the dominant language or other mode of communi-
24 cation of the parent; the documentation of the evaluation shall be tran-
25 smitted in English and, upon the request of the parent, also in the
26 dominant language or other mode of communication of the parent, unless
27 not clearly feasible to do so pursuant to regulations promulgated by the
28 commissioner. Costs of translating the summary report and documentation
323 13001-04-9
1 of the evaluation shall be separately reimbursed. If, based on the eval-
2 uation, the committee finds that a child has a [handicapping condition]
3 disability, the committee shall use the documentation of the evaluation
4 to develop an individualized education program for the preschool child.
5 Nothing herein shall prohibit an approved evaluator from at any time
6 providing the parent with a copy of the documentation of the evaluation
7 provided to the committee.
8 § 49. Subparagraph (iii) of paragraph a of subdivision 9 of section
9 4410 of the education law, as added by chapter 474 of the laws of 1996,
10 is amended to read as follows:
11 (iii) Commencing July first, nineteen hundred ninety-six, a moratorium
12 on the approval of any new or expanded programs in settings which
13 include only preschool children with disabilities is established for
14 [three] six years. Exceptions shall be made for cases in which school
15 districts document a critical need for a new or expanded program in a
16 setting which includes only preschool children with disabilities, to
17 meet the projected demand for services for preschool children in the
18 least restrictive environment. Nothing herein shall prohibit the
19 commissioner from approving the modification of a full-day program into
20 half-day sessions.
21 § 50. Section 4410 of the education law is amended by adding a new
22 subdivision 9-e to read as follows:
23 9-e. Report on extended absences. Where a preschool child enrolled in
24 an approved program has an extended absence, as defined in the regu-
25 lations of the commissioner, the approved provider shall report such
26 extended absence to the committee and the municipality, so that the
27 committee may take appropriate action. Such report shall be in a form
28 prescribed by the commissioner.
324 13001-04-9
1 § 51. Paragraph b of subdivision 10 of section 4410 of the education
2 law, as amended by chapter 705 of the laws of 1992, is amended to read
3 as follows:
4 b. Reimbursement for the approved costs of evaluations conducted by
5 [approved evaluators] school districts shall be provided pursuant to
6 regulations of the commissioner adopted after consultation with the
7 advisory committee established pursuant to paragraph a of subdivision
8 twelve of this section and shall be subject to approval by the director
9 of the budget.
10 § 52. Paragraph a of subdivision 11 of section 4410 of the education
11 law, as amended by chapter 474 of the laws of 1996, is amended to read
12 as follows:
13 a. The approved costs for a preschool child who receives services
14 pursuant to this section shall be a charge upon the municipality wherein
15 such child resides. All approved costs shall be paid in the first
16 instance and at least quarterly by the appropriate governing body or
17 officer of the municipality upon vouchers presented and audited in the
18 same manner as the case of other claims against the municipality;
19 provided, however, that where a school district contracts with an
20 approved private evaluator to conduct an evaluation, the municipality
21 shall deduct from the payment due such school district an amount equal
22 to forty and one-half percent of the approved costs of such evaluation,
23 and provided further that the amount of such approved evaluation costs
24 remaining after such deduction shall be fully reimbursed by the state
25 pursuant to this subdivision. Notwithstanding any inconsistent
26 provisions of this section, upon notification by the commissioner, a
27 municipality may withhold payments due any provider for services
28 rendered to preschool children in a program for which the commissioner
325 13001-04-9
1 has been unable to establish a tuition rate due to the failure of the
2 provider to file complete and accurate reports for such purpose, as
3 required by the commissioner.
4 § 53. Paragraph k of section 25.00 of the local finance law, as added
5 by chapter 754 of the laws of 1992 and subdivision 1 as amended by chap-
6 ter 370 of the laws of 1993, is amended to read as follows:
7 k. 1. A special act public school district may [issue revenue antic-
8 ipation notes] obtain letters of credit in anticipation of moneys to be
9 received from the state, the United States government and from public
10 school districts or social services districts which place students in
11 the special act public school district.
12 2. For the purposes of this paragraph, and for the purposes of
13 sections 30.00 and 39.00 and titles four, five, six and twelve of this
14 article, the board of education shall be the finance board and its pres-
15 ident shall be its chief fiscal officer[; provided, further, that
16 section 162.00 of this article shall be applicable to revenue antic-
17 ipation notes issued under this paragraph].
18 § 54. Section 81 of part C of chapter 58 of the laws of 1998, amending
19 the education law and certain other laws relating to the calculation and
20 payment of state aid to school districts and boards of cooperative
21 educational services, is amended to read as follows:
22 § 81. Notwithstanding any other provision of law to the contrary,
23 prior year state aid claims due and payable [for the 1995-96 school
24 year] shall be paid during June of the 1998-99 school year within the
25 limits of funds appropriated for such purpose; provided that the sum of
26 such payments made during the 1998-99 school year shall not exceed
27 [eighteen] fourteen million dollars [($18,000,000)] ($14,000,000);
28 provided further that each eligible claim shall be payable in the order
326 13001-04-9
1 that it has been approved for payment by the commissioner of education
2 but in no case shall a single claim draw down more than forty percent of
3 the appropriation so designated for a single year, and; provided further
4 that no claim shall be set aside for insufficiency of funds to make a
5 complete payment, but shall be eligible for a partial payment in one
6 year and shall retain its priority date status for appropriations desig-
7 nated for such purposes in future years.
8 § 55. Sections 1, 2 and 3 of chapter 221 of the laws of 1998, relating
9 to adjusting certain state aid payments to certain school districts, are
10 amended to read as follows:
11 Section 1. Notwithstanding any contrary provision of law, the employ-
12 ment preparation education aid payments made to the Syracuse city school
13 district in the 1992-93, 1993-94, and the 1994-95 school years, which
14 included excess payments of which the district has been notified, and
15 for which a recovery must be made by the state through deduction of
16 future aid payments, shall be reduced through aid deductions totaling
17 the excess, by deducting one-sixth of the excess payments first, to the
18 extent possible, from each of the payments due for employment prepara-
19 tion education programs to be operated by such city school district and
20 payable in the months of October 1998, 1999, 2000, 2001, 2002, and 2003,
21 and then, if such scheduled aid deduction shall exceed such designated
22 payment for employment preparation education programs, from any other
23 moneys due the school district, provided, however, there shall be no
24 interest penalty against such district assessed or collected by the
25 state.
26 § 2. Notwithstanding any contrary provision of law, the employment
27 preparation education aid payments made to the Utica city school
28 district in the 1995-96 school year, which included excess payments of
327 13001-04-9
1 which the district has been notified, and for which a recovery must be
2 made by the state through deduction of future aid payments, shall be
3 reduced through aid deductions totaling the excess, by deducting one-
4 sixth of the excess payments first, to the extent possible, from each of
5 the payments due for employment preparation education programs to be
6 operated by such city school district and payable in the months of Octo-
7 ber 1998, 1999, 2000, 2001, 2002, and 2003, and then, if such scheduled
8 aid deduction shall exceed such designated payment for employment prepa-
9 ration education programs, from any other moneys due the school
10 district, provided, however, there shall be no interest penalty against
11 such district assessed or collected by the state.
12 § 3. Notwithstanding any contrary provision of law, the employment
13 preparation education aid payments made to the Gloversville enlarged
14 city school district in the 1991-92, 1992-93, and 1993-94 school years,
15 which included excess payments of which the district has been notified,
16 and for which a recovery must be made by the state through deduction of
17 future aid payments, shall be reduced through aid deductions totaling
18 the excess, by deducting one-sixth of the excess payments first, to the
19 extent possible, from each of the payments due for employment prepara-
20 tion education programs to be operated by such enlarged city school
21 district and payable in the months of October 1998, 1999, 2000, 2001,
22 2002, and 2003, and then, if such scheduled aid deduction shall exceed
23 such designated payment for employment preparation education programs,
24 from any other moneys due the school district, provided, however, there
25 shall be no interest penalty against such district assessed or collected
26 by the state.
27 § 56. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
28 of 1995, amending the education law and certain other laws relating to
328 13001-04-9
1 state aid to school districts and the appropriation of funds for the
2 support of government, as amended by section 62 of part C of chapter 58
3 of the laws of 1998, are amended to read as follows:
4 (22) sections one hundred twelve, one hundred thirteen, one hundred
5 fourteen, one hundred fifteen and one hundred sixteen of this act shall
6 take effect on July 1, 1995; provided, however, that section one hundred
7 thirteen of this act shall remain in full force and effect until July 1,
8 [1999] 2000 at which time it shall be deemed repealed;
9 (24) sections one hundred eighteen through one hundred thirty of this
10 act shall be deemed to have been in full force and effect on and after
11 July 1, 1995; provided further, however, that the amendments made pursu-
12 ant to section one hundred nineteen of this act shall be deemed to be
13 repealed on and after July 1, [1999] 2000;
14 § 57. Subdivision 1 of section 167 of chapter 169 of the laws of 1994,
15 relating to certain provisions related to the 1994-95 state operations,
16 aid to localities, capital projects and debt service budgets, as amended
17 by section 63 of part C of chapter 58 of the laws of 1998, is amended to
18 read as follows:
19 1. Sections one through seventy of this act shall be deemed to have
20 been in full force and effect as of April 1, 1994 provided, however,
21 that sections one, two, [seventeen and twenty-two through] twenty-four,
22 twenty-five and twenty-seven through seventy of this act shall expire
23 and be deemed repealed on March 31, 1999; provided, however, that
24 section twenty of this act shall apply only to hearings commenced prior
25 to September 1, 1994, and provided further that section twenty-six of
26 this act shall expire and be deemed repealed on March 31, 1997; and
27 provided further that sections four through fourteen, sixteen, [and]
28 eighteen, nineteen and twenty-one through twenty-one-a of this act shall
329 13001-04-9
1 expire and be deemed repealed on March 31, 1997; and provided further
2 that sections three, fifteen [and], seventeen, twenty, twenty-two and
3 twenty-three of this act shall expire and be deemed repealed on March
4 31, 2000.
5 § 58. Subdivision b of section 2 of chapter 756 of the laws of 1992,
6 relating to funding a program for work force education conducted by the
7 consortium for worker education in New York city, as amended by section
8 64 of part C of chapter 58 of the laws of 1998, is amended to read as
9 follows:
10 (b) Reimbursement for programs approved in accordance with subdivision
11 a of this section for the 1992-93 school year shall not exceed 61.4
12 percent of the lesser of such approvable costs per contact hour or five
13 dollars and sixty cents per contact hour, reimbursement for the 1993-94
14 school year shall not exceed 65.1 percent of the lesser of such approva-
15 ble costs per contact hour or five dollars and fifty cents per contact
16 hour, reimbursement for the 1994-95 school year shall not exceed 58
17 percent of the lesser of such approvable costs per contact hour or five
18 dollars and seventy-five cents per contact hour, reimbursement for the
19 1995-96 school year shall not exceed 61.2 percent of the lesser of such
20 approvable costs per contact hour or five dollars and eighty cents per
21 contact hour, reimbursement for the 1996-97 school year shall not exceed
22 61.7 percent of the lesser of such approvable costs per contact hour or
23 five dollars and ninety cents per contact hour, reimbursement for the
24 1997-98 school year shall not exceed 63.2 percent of the lesser of such
25 approvable costs per contact hour or six dollars and ten cents per
26 contact hour, and reimbursement for the 1998-99 school year shall not
27 exceed 64.4 percent of the lesser of such approvable costs per contact
28 hour or six dollars and five cents per contact hour, where a contact
330 13001-04-9
1 hour represents sixty minutes of instruction services provided to an
2 eligible adult. Notwithstanding any other provision of law to the
3 contrary, for the 1992-1993 school year the apportionment calculated for
4 the city school district of the city of New York pursuant to subdivision
5 24 of section 3602 of the education law shall be computed as if such
6 contact hours provided by the consortium for worker education, not to
7 exceed six hundred thousand hours (600,000), were eligible for aid in
8 accordance with the provisions of such subdivision 24 of section 3602 of
9 the education law, whereas, for the 1993-94 school year such contact
10 hours shall not exceed five hundred seventy-six thousand one hundred
11 eighty-seven hours (576,187); whereas, for the 1994-95 school year such
12 contact hours shall not exceed six hundred nineteen thousand five
13 hundred thirty-one hours (619,531); whereas, for the 1995-96 school year
14 such contact hours shall not exceed five hundred eighty-one thousand one
15 hundred thirty-eight hours (581,138); whereas, for the 1996-97 school
16 year such contact hours shall not exceed one million ninety-eight thou-
17 sand nine hundred one hours (1,098,901); whereas, for the 1997-98 school
18 year such contact hours shall not exceed one million five hundred
19 fifty-eight thousand four hundred forty-one (1,558,441) hours; whereas,
20 for the 1998-99 school year such contact hours shall not exceed one
21 million [five] nine hundred [forty-two] twenty-eight thousand [four
22 hundred sixteen (1,542,416)] twenty (1,928,020) hours.
23 § 59. Special apportionment for salary expenses. a. Notwithstanding
24 any other provision of law, upon application to the commissioner of
25 education, not sooner than June 14, 2000 and not later than June 24,
26 2000, a school district eligible for an apportionment pursuant to
27 section 3602 of the education law shall be eligible to receive an appor-
28 tionment pursuant to this section, for the school year ending June 30,
331 13001-04-9
1 2000, for salary expenses incurred between April 1 and June 30, 2000,
2 and such apportionment shall not exceed the deficit reduction assessment
3 of 1990-91 as determined by the commissioner of education, pursuant to
4 paragraph f of subdivision 1 of section 3602 of the education law, as in
5 effect through June 30, 1993, plus seventy-three percent of such amount
6 for a city school district in a city with a population in excess of one
7 million inhabitants, and shall not exceed such salary expenses. Such
8 application shall be made by a school district, after the board of
9 education or trustees have adopted a resolution to do so and in the case
10 of a city school district in a city with a population in excess of one
11 hundred twenty-five thousand inhabitants, with the approval of the mayor
12 of such city.
13 b. The claim for an apportionment to be paid to a school district
14 pursuant to subdivision a of this section shall be submitted to the
15 commissioner of education on a form prescribed for such purpose, and
16 shall be payable upon determination by such commissioner that the form
17 has been submitted as prescribed. Such approved amounts shall be payable
18 on the same day on or before September, 2000, as funds provided pursuant
19 to subparagraph 3 of paragraph b of subdivision 4 of section 92-c of the
20 state finance law, on the audit and warrant of the state comptroller on
21 vouchers certified or approved by the commissioner of education in the
22 manner prescribed by law from moneys in the state lottery fund and from
23 the general fund to the extent that the amount paid to a school district
24 pursuant to subdivision c of this section exceeds the amount, if any,
25 due such school district pursuant to subparagraph 3 of paragraph a of
26 subdivision 1 of section 3609-a of the education law in the 2000-01
27 school year.
332 13001-04-9
1 c. Notwithstanding the provisions of section 3609-a of the education
2 law, an amount equal to the amount paid to a school district pursuant to
3 subdivisions a and b of this section shall first be deducted from
4 payments due during the 2000-01 school year pursuant to the subpara-
5 graphs of paragraph a of subdivision 1 of section 3609-a of the educa-
6 tion law in the following order: subparagraph 2 followed by subpara-
7 graphs 1 and 4, and any remainder to be deducted from payments due the
8 district pursuant to paragraph b of such subdivision shall be deducted
9 on a chronological basis starting with the earliest payment due the
10 district.
11 § 60. Notwithstanding any other provision of law to the contrary, any
12 school district first joining a BOCES on or after July 1, 1995 and prior
13 to July 2, 1997 shall be eligible to apply to the commissioner for an
14 interest free loan in the current year which shall not exceed: (i) eight
15 hundred eighty-nine thousand dollars ($889,000) for the 2000--2001
16 school year and (ii) four hundred fifty-five thousand dollars ($455,000)
17 for the 2001--2002 school year. The annual application for such a loan
18 shall be in a form prescribed by the commissioner of education. The
19 amount of the loan in any year shall be determined by the commissioner
20 of education. Notwithstanding any inconsistent provisions of section
21 3609-a of the education law, such loan amounts shall be paid to each
22 eligible school district on or before June 15, commencing with the
23 1997--98 school year, but only to the extent that the repayment of the
24 base year loan has been secured. Notwithstanding any inconsistent
25 provision of law, the state comptroller shall deduct the amount of any
26 base year loan from any monies due such school district in March of the
27 current year. Should the amount of any monies due such school district
28 in March be insufficient to repay the total amount of the base year loan
333 13001-04-9
1 to the school district, the state comptroller shall deduct any balance
2 due the state from any other monies payable to such district. Should the
3 total amount of monies due to or on behalf of such school district be
4 insufficient to repay the total amount of the base year loan, such
5 school district shall make a direct payment to the state before March
6 first of the current year and such payment shall be credited to the
7 general fund local assistance account of the department of education.
8 § 61. Notwithstanding any other provision of law to the contrary,
9 prior year state aid claims due and payable for the 1995-96 and 1996-97
10 school year shall be paid during June of the 1999-00 school year within
11 the limits of funds appropriated for such purpose; provided that the sum
12 of such payments made during the 1999-00 school year shall not exceed
13 eighteen million dollars ($18,000,000); provided further that each
14 eligible claim shall be payable in the order that it has been approved
15 for payment by the commissioner of education but in no case shall a
16 single claim draw down more than forty percent of the appropriation so
17 designated for a single year, and; provided further that no claim shall
18 be set aside for insufficiency of funds to make a complete payment, but
19 shall be eligible for a partial payment in one year and shall retain its
20 priority date status for appropriations designated for such purposes in
21 future years.
22 § 62. Notwithstanding any other provision of law to the contrary, when
23 a school district that is eligible for aid pursuant to section 3602 of
24 the education law receives payments in lieu of taxes on account of one
25 or more parcels of real property which are wholly or partially exempt
26 from taxation on the final assessment roll completed in 1999 or there-
27 after, and the total of such payments in lieu of taxes received by the
28 school district are equal to or greater than five percent of the total
334 13001-04-9
1 amount of taxes levied by or on behalf of the school district against
2 the real property on that assessment roll, any actual valuation computed
3 for the school district pursuant to paragraph c of subdivision 1 of
4 section 3602 of the education law shall include the actual valuation
5 equivalent of such payments in lieu of taxes. The actual valuation
6 equivalent of such payments in lieu of taxes shall be annually deter-
7 mined by the state board of real property services by dividing the total
8 amount of such payments in lieu of taxes, as reported to the state board
9 by the commissioner of education, by the school tax rate which was
10 applied to the real property on that assessment roll, and dividing the
11 result by the applicable state equalization rate for that roll. The
12 additional actual valuation attributable to such payments in lieu of
13 taxes shall be reported to the state comptroller and the commissioner of
14 education and shall be used by the commissioner of education for the
15 computation of state aid to the school district and for the determi-
16 nation of any state average which uses real property taxes levied
17 against and/or actual valuation based on the corresponding assessment
18 roll. The commissioner of education shall require each such school
19 district to annually report the payments in lieu of taxes received by it
20 each year as a condition for receiving aid pursuant to section 3602 of
21 the education law, and shall forward such information to the state board
22 so that it may calculate the actual valuation equivalent of such
23 payments in lieu of taxes. Notwithstanding the foregoing, if a payment
24 in lieu of taxes was received by a school district on account of the
25 fact that a parcel was wholly or partially exempt on the final assess-
26 ment roll completed in 1998, such payment in lieu of taxes and payments
27 in lieu of taxes made in every consecutive subsequent school year on
28 account of the fact that the same parcel received the same exemption
335 13001-04-9
1 shall be disregarded for purposes of administering the provisions of
2 this section.
3 § 63. Severability. The provisions of this act shall be severable, and
4 if the application of any clause, sentence, paragraph, subdivision,
5 section or part of this act to any person or circumstance shall be
6 adjudged by any court of competent jurisdiction to be invalid, such
7 judgment shall not necessarily affect, impair or invalidate the applica-
8 tion of any such clause, sentence, paragraph, subdivision, section, part
9 of this act or remainder thereof, as the case may be, to any other
10 person or circumstance, but shall be confined in its operation to the
11 clause, sentence, paragraph, subdivision, section or part thereof
12 directly involved in the controversy in which such judgment shall have
13 been rendered.
14 § 64. This act shall take effect July 1, 1999 except that:
15 (1) sections four, six and thirty-nine of this act shall take effect
16 180 days after the date on which this act shall have become a law;
17 (2) sections seven, eight, nine, ten, eleven, twelve, thirteen,
18 fifteen, nineteen and twenty-seven of this act shall take effect July 1,
19 2000;
20 (3) section sixteen of this act shall take effect immediately and
21 shall be deemed to have been in full force and effect on and after the
22 date on which chapter 171 of the laws of 1996 took effect; provided,
23 however, that any vote on a budget or proposition for the expenditure of
24 money or authorizing the levy of a tax that was conducted by a city
25 school district having a population of less than 125,000 prior to the
26 date on which this act became a law shall not be declared invalid for
27 failure of the board of education to provide for absentee ballots;
336 13001-04-9
1 (4) sections twenty and thirty-seven of this act shall be deemed to
2 have been in full force and effect on and after July 1, 1998;
3 (5) section twenty-three of this act shall be deemed to have been in
4 full force and effect on and after the effective date of section 43 of
5 chapter 474 of the laws of 1996;
6 (6) section twenty-five of this act shall be deemed to have been in
7 full force and effect on and after July 1, 1997;
8 (7) section twenty-nine of this act shall be deemed to have been in
9 full force and effect on and after the effective date of section 50 of
10 chapter 474 of the laws of 1996;
11 (8) section thirty-six of this act shall be deemed to have been in
12 full force and effect on and after the effective date of section 52 of
13 part A of chapter 436 of the laws of 1997;
14 (9) section forty of this act shall be deemed to have been in full
15 force and effect on and after July 1, 1996;
16 (10) section forty-one of this act shall take effect immediately, and
17 shall be deemed to have been in full force and effect on and after March
18 1, 1999;
19 (11) section fifty-five of this act shall take effect immediately and
20 shall be deemed to have been in full force and effect as of the effec-
21 tive date of chapter 221 of the laws of 1998;
22 (12) section fifty-six of this act shall take effect immediately and
23 shall be deemed to have been in full force and effect as of the effec-
24 tive date of section 99 of part A of chapter 436 of the laws of 1997;
25 (13) section fifty-seven of this act shall take effect immediately and
26 shall be deemed to have been in full force and effect as of the effec-
27 tive date of section 101 of part A of chapter 436 of the laws of 1997;
28 and
337 13001-04-9
1 (14) section fifty-eight of this act shall take effect immediately and
2 shall be deemed to have been in full force and effect as of the effec-
3 tive date of section 64 of part C of chapter 58 of the laws of 1998.
4 PART II
5 § 1. Paragraph (d) of subdivision 2 of section 425 of the real proper-
6 ty tax law, as added by section 1 of part B of chapter 389 of the laws
7 of 1997, is amended to read as follows:
8 (d) Equalization adjustment. To account for the variance in the
9 level of assessment among assessing units, the figure determined in
10 paragraph (c) of this subdivision shall be multiplied by an "equaliza-
11 tion factor," which shall be [the appropriate state equalization rate or
12 special equalization rate established by the state board] equal to the
13 ratio of assessed value to market value of residential property in the
14 assessing unit as determined in the latest market value survey completed
15 pursuant to article twelve of this chapter, unless the state board has
16 applied the uniform percentage of value prevailing on the assessment
17 roll for purposes of subdivision three of section six hundred six of
18 this chapter, in which case the equalization factor shall be equal to
19 the uniform percentage of value so applied. Provided, that in the case
20 of a special assessing unit, (i) the equalization factor for class one
21 in each school district portion shall be the class equalization rate for
22 class one in the portion, and (ii) the equalization factor for class two
23 in each school district portion shall be the equalization factor for
24 class one in the portion, multiplied by the latest tax rate for class
25 one in the portion, and then divided by the latest tax rate for class
26 two in the portion. Provided further, that in any instance when school
27 district taxes are levied upon an assessment roll which predates the
28 latest final assessment roll, the equalization factor shall be [the
338 13001-04-9
1 state equalization rate for] determined with respect to the assessment
2 roll upon which school district taxes are to be levied.
3 § 2. Paragraph (j) of subdivision 2 of section 425 of the real proper-
4 ty tax law, as added by section 1 of part B of chapter 389 of the laws
5 of 1997, is amended to read as follows:
6 (j) Certain city school districts. The state board shall adjust the
7 exempt amount for each city containing a school district which is
8 subject to article fifty-two of the education law, to account for the
9 fact that [a single tax is levied for both school district purposes and
10 general city purposes] the school district is fiscally dependent upon
11 the city. This adjustment shall be made by multiplying the exempt
12 amount that would otherwise be determined for the city by sixty-seven
13 percent, or, in the case of a city with a population of one million or
14 more, by fifty percent. The exempt amount resulting from this calcu-
15 lation shall be applied both to the assessed value for city school
16 district purposes and to the assessed value for general city purposes,
17 and state aid shall be payable on the combined tax savings in the manner
18 provided by section thirteen hundred six-a of this chapter.
19 § 3. Subparagraph (ii) of paragraph (k) of subdivision 2 of section
20 425 of the real property tax law, as added by section 1 of part B of
21 chapter 389 of the laws of 1997, is amended to read as follows:
22 (ii) That proportion of the assessment of such real property owned by
23 a cooperative apartment corporation determined by the relationship of
24 such real property vested in such tenant-stockholder to such entire
25 parcel and the buildings thereon owned by such cooperative apartment
26 corporation in which such tenant-stockholder resides shall be subject to
27 exemption from taxation pursuant to this section and any exemption so
28 granted shall be credited by the appropriate taxing authority against
339 13001-04-9
1 the assessed valuation of such real property [; the]. Upon the
2 completion of the final assessment roll, or as soon thereafter as is
3 practicable, the assessor shall forward to the cooperative apartment
4 corporation a statement setting forth the exemption attributable to each
5 eligible tenant-stockholder. The reduction in real property taxes [real-
6 ized thereby] attributable to each eligible tenant-stockholder shall be
7 credited by the cooperative apartment corporation against the amount of
8 such taxes otherwise payable by or chargeable to such tenant-stockhold-
9 er.
10 § 4. Subparagraph (iii) of paragraph (l) of subdivision 2 of section
11 425 of the real property tax law, as added by section 1 of part B of
12 chapter 389 of the laws of 1997, is amended to read as follows:
13 (iii) If the owner of the trailer or mobile home does not own the
14 land, he or she may apply for exemption pursuant to this section only
15 upon the trailer or mobile home. If granted, only the portion of the
16 assessment of the parcel attributable to the trailer or mobile home
17 shall be subject to exemption from taxation pursuant to this section.
18 In no event shall the exemption exceed the total assessed value attrib-
19 utable to the trailer or mobile home. The exemption shall be credited
20 by the appropriate taxing authority against the assessed valuation of
21 the parcel. Upon the completion of the final assessment roll, or as
22 soon thereafter as is practicable, the assessor shall forward to the
23 landowner a statement setting forth the exemption attributable to each
24 eligible trailer or mobile home. The reduction in real property taxes
25 [realized thereby] attributable to each eligible trailer or mobile home
26 shall be credited by the landowner against the rent payable on account
27 of such trailer or mobile home, subject to the provisions of subdivision
28 [(w)] w of section two hundred thirty-three of the real property law.
340 13001-04-9
1 § 5. Paragraph (a) of subdivision 3 of section 425 of the real prop-
2 erty tax law, as added by section 1 of part B of chapter 389 of the laws
3 of 1997, is amended to read as follows:
4 (a) Property use. To qualify for exemption pursuant to this section,
5 the property must be primarily used as a one, two or three family resi-
6 dence, a farm dwelling or residential property held in condominium or
7 cooperative form of ownership. [The exemption may be granted to property
8 that is used for such purposes even if it is partially used for other
9 purposes as well, provided that the eligibility requirements are other-
10 wise satisfied.] If the property is primarily used for other purposes,
11 but a portion of the property is used by the owner as a primary resi-
12 dence, that portion which is so used shall be entitled to the exemption
13 provided by this section; provided, that in no event shall the exemption
14 exceed the assessed value attributable to that portion.
15 § 6. Subdivision 4 of section 425 of the real property tax law, as
16 added by section 1 of part B of chapter 389 of the laws of 1997 and
17 paragraph (b) as amended by section 2 of part A of chapter 56 of the
18 laws of 1998, is amended to read as follows:
19 4. Senior citizens. The enhanced exemption for property owned by
20 senior citizens shall be provided where all of the following require-
21 ments are satisfied:
22 (a) Age. (i) All of the owners must be at least sixty-five years of
23 age or older as of the [applicable taxable status] date specified
24 herein, or in the case of property owned by husband and wife or by
25 siblings, one of the owners must be at least sixty-five years of age as
26 of [the applicable taxable status] that date. For the two thousand--two
27 thousand one school year, eligibility for the exemption shall be based
341 13001-04-9
1 upon age as of December thirty-first, two thousand. For each subsequent
2 school year, the applicable date shall be advanced by one year
3 (ii) The term "siblings" as used herein shall have the same meaning as
4 set forth in section four hundred sixty-seven of this article.
5 (iii) In the case of property owned by husband and wife, one of whom
6 is sixty-five years of age or over, the exemption, once granted, shall
7 not be rescinded solely because of the death of the older spouse so long
8 as the surviving spouse is at least sixty-two years of age as of the
9 date specified in this paragraph.
10 (b) Income. (i) The combined income of all of the owners, and of any
11 owners' spouses residing on the premises, for the income tax year [imme-
12 diately preceding the date of making application for the exemption]
13 specified herein may not exceed sixty thousand dollars. For the two
14 thousand--two thousand one school year, eligibility for the exemption
15 shall be based upon income for the income tax year ending in nineteen
16 hundred ninety-eight. For each subsequent school year, the applicable
17 income tax year shall be advanced by one year.
18 (ii) The term "income" as used herein shall mean the "adjusted gross
19 income" for federal income tax purposes as reported on the applicant’s
20 [latest available] federal or state income tax return for the applicable
21 income tax year, subject to any subsequent amendments or revisions,
22 reduced by distributions, to the extent included in federal adjusted
23 gross income, received from an individual retirement account and an
24 individual retirement annuity; provided that if no such return was filed
25 [within the one year period preceding taxable status date] for the
26 applicable income tax year, "income" shall mean the adjusted gross
27 income that would have been so reported if such a return had been filed.
28 [For purposes of this subdivision, "latest available return" shall mean
342 13001-04-9
1 the federal or state income tax return for the tax year immediately
2 preceding the date of making application, provided however, that if the
3 tax return for such tax year has not been filed, then the income tax
4 return for the tax year two years preceding the date of making applica-
5 tion shall be considered the latest available.]
6 (iii) Any information or documentation submitted by the applicant in
7 connection with applications for or renewal of the exemption authorized
8 under this section to verify income, shall be deemed confidential, and
9 the assessor, any municipal officer or municipal employees are prohibit-
10 ed from disclosing any such information, except for any disclosure
11 necessary in the performance of their official duties, and except as
12 authorized by paragraph (c) of this subdivision. Any unauthorized
13 disclosure of such information shall be deemed a violation of section
14 eight hundred five-a of the general municipal law.
15 (c) Verification of income. At the request of the state board, the
16 assessor shall identify those persons who have applied for the enhanced
17 exemption authorized by this section, so that the state board may ask
18 the department of taxation and finance to verify whether such persons
19 satisfy the income eligibility requirements of this paragraph. The
20 state board shall notify the assessor of the response or responses it
21 receives from the department. Such responses shall be confidential and
22 shall not be subject to disclosure under article six of the public offi-
23 cers law.
24 (d) Absence from residence. An exemption may be granted pursuant to
25 this subdivision notwithstanding the fact that an owner is absent from
26 the residence while receiving health-related care as an inpatient of a
27 residential health care facility, as defined in section twenty-eight
28 hundred one of the public health law, provided that during such confine-
343 13001-04-9
1 ment such property is not occupied by anyone other than the spouse or
2 co-owner of such owner.
3 § 7. Section 425 of the real property tax law is amended by adding a
4 new subdivision 4-a to read as follows:
5 4-a. Special situations. (a) Married couples with two or more resi-
6 dences. A husband and wife may receive an exemption pursuant to this
7 section on no more than one residence, unless living apart due to legal
8 separation.
9 (b) Parcels with two or more separate residences thereon. When a
10 parcel includes two or more physically separate residences, an exemption
11 may be granted pursuant to this section to each residence which (i)
12 serves as the primary residence of at least one of the owners of the
13 parcel, and (ii) would be eligible for an exemption pursuant to this
14 section if it were separately assessed and owned exclusively by the
15 owner or owners who reside therein, provided that only one such
16 exemption may be applied to the land included within the parcel.
17 (c) Residences split by municipal boundaries. When an applicant’s
18 primary residence is located in two or more municipal corporations, each
19 portion of the residence shall be eligible for the exemption provided by
20 this section if the eligibility requirements are otherwise satisfied,
21 provided that the exemption shall be pro-rated in the same manner as the
22 full value of the property was apportioned to each municipal corporation
23 by the respective assessors, so that the total tax savings resulting
24 from the exemption does not exceed the tax savings that would be
25 received if the residence were contained entirely within one municipal
26 corporation. The provisions of this paragraph shall not apply when the
27 land associated with a residential structure is located in more than one
344 13001-04-9
1 municipal corporation, but the residential structure itself is located
2 entirely within one of those municipal corporations.
3 (d) Mixed-use property in approved assessing units. In an approved
4 assessing unit which has adopted the provisions of section nineteen
5 hundred three of this chapter, if otherwise eligible property has been
6 classified partially within the homestead class and partially within the
7 non-homestead class, only the portion which has been classified within
8 the homestead class shall be eligible for exemption pursuant to this
9 section; provided, that in no event shall the exemption exceed the
10 assessed value attributable to that portion.
11 § 8. Paragraph (a) of subdivision 5 of section 425 of the real proper-
12 ty tax law, as added by section 1 of part B of chapter 389 of the laws
13 of 1997, is amended to read as follows:
14 (a) Generally. Every school district shall annually notify, or cause
15 to be notified, each person owning residential real property in the
16 school district of the provisions of this section. The provisions of
17 this subdivision may be met by a notice sent to such persons in substan-
18 tially the following form: "Residential real property may qualify for a
19 partial exemption from school district taxes under the New York state
20 school tax relief (STAR) program. [To receive such exemption, owners of
21 qualifying property must file an application with their local assessor
22 on or before the applicable taxable status date. For further informa-
23 tion, please contact your local assessor.] If you are not already
24 receiving this exemption, please contact your assessor for further
25 information."
26 § 9. Paragraph (a) of subdivision 6 of section 425 of the real proper-
27 ty tax law, as added by section 1 of part B of chapter 389 of the laws
28 of 1997, is amended to read as follows:
345 13001-04-9
1 (a) Generally. All owners of the property who primarily reside thereon
2 must jointly file an application for exemption with the assessor on or
3 before the appropriate taxable status date. Such application may be
4 filed by mail if it is enclosed in a postpaid envelope properly
5 addressed to the appropriate assessor, deposited in a post office or
6 official depository under the exclusive care of the United States postal
7 service, and postmarked by the United States postal service on or before
8 the applicable taxable status date. Each such application shall be made
9 on a form prescribed or approved by the state board, which shall require
10 the applicant or applicants to agree to notify the assessor if their
11 primary residence changes while their property is receiving the
12 exemption. The assessor may request that proof of residency be submit-
13 ted with the application.
14 § 10. Paragraphs (b) and (c) of subdivision 7 of section 425 of the
15 real property tax law, paragraph (b) as amended by chapter 447 of the
16 laws of 1998 and paragraph (c) as added by section 1 of part B of chap-
17 ter 389 of the laws of 1997, are amended to read as follows:
18 (b) The exemption provided by this section shall be applied after all
19 other exemptions allowed by law[, including the exemption for persons
20 sixty-five years of age or over authorized by section four hundred
21 sixty-seven of this article and the exemption for persons with disabili-
22 ties and limited incomes authorized by section four hundred fifty-nine-c
23 of this article,] have been subtracted from the total assessed value of
24 the parcel, notwithstanding the provisions of [paragraph (c) of subdivi-
25 sion one of section four hundred sixty-seven of this article and
26 notwithstanding the provisions of subdivision three of section four
27 hundred fifty-nine-c of this article, or any other] any law to the
28 contrary.
346 13001-04-9
1 (c) In no event shall the exemption authorized by this section exceed
2 the total assessed value of the parcel less all other exemptions allowed
3 by law. If an order has been entered in a proceeding pursuant to arti-
4 cle seven of this chapter relating to property receiving the exemption
5 authorized by this section, and the order reduces the assessment of such
6 property to an amount which is below the applicable exempt amount, the
7 exemption shall be reduced accordingly.
8 § 11. Paragraph (a) of subdivision 9 of section 425 of the real prop-
9 erty tax law, as added by section 1 of part B of chapter 389 of the laws
10 of 1997, is amended to read as follows:
11 (a) Eligible senior citizens. The enhanced exemption authorized by
12 subdivision four of this section for certain senior citizens shall apply
13 for a term of one year. To continue receiving such enhanced exemption,
14 a renewal application must be filed annually with the assessor on or
15 before the applicable taxable status date on a form prescribed or
16 approved by the state board. Provided, however, that if a renewal
17 application is not so filed, the assessor shall discontinue the enhanced
18 exemption authorized by this section for certain senior citizens, but
19 shall grant the basic exemption authorized by this section for other
20 persons, subject to the provisions of subdivision eleven of this
21 section. Provided further, however, that such enhanced exemption shall
22 be continued without a renewal application as long as the property
23 continues to be eligible for the senior citizens exemption authorized by
24 section four hundred sixty-seven of this article.
25 § 12. Subdivisions 11 and 12 of section 425 of the real property tax
26 law, as added by section 1 of part B of chapter 389 of the laws of 1997,
27 are amended to read as follows:
347 13001-04-9
1 11. Discontinuance of exemption. (a) Generally. The assessor shall
2 discontinue any exemption granted pursuant to this section if it appears
3 that: (i) the property may not be the primary residence of the owner or
4 owners who applied for the exemption, (ii) title to the property has
5 been transferred to a new owner or owners, or (iii) the property other-
6 wise may no longer be eligible for the exemption.
7 (b) Rights of owners. Upon determining that an exemption granted
8 pursuant to this section should be discontinued, the assessor shall mail
9 a notice so stating to the owner or owners thereof at the time and in
10 the manner provided by section five hundred ten of this chapter or such
11 other law as may be locally applicable. Such owner or owners shall be
12 entitled to seek administrative and judicial review of such action in
13 the manner provided by law, provided, that the burden shall be on such
14 owner or owners to establish eligibility for the exemption.
15 (c) Transfers of title. When the assessor has received a report
16 pursuant to section five hundred seventy-four of this article or a
17 comparable law of a transfer of title to real property which is exempt
18 pursuant to this section, the assessor shall send the new owner or
19 owners as shown thereon an application for the exemption authorized by
20 this section. The assessor shall not implement the provisions of
21 section five hundred twenty of this chapter or a comparable law upon
22 such a transfer, except to the extent that the property may also be
23 receiving one or more other exemptions.
24 (d) Notice not mailed or received. The failure to mail any such
25 notice or application, or the failure of the owner or owners to receive
26 the same, shall not prevent the levy, collection and enforcement of the
27 payment of the taxes on such real property.
348 13001-04-9
1 12. Revocation of prior exemptions. (a) Generally. In addition to
2 discontinuing the exemption on the next ensuing tentative assessment
3 roll, if the assessor determines that the property improperly received
4 the exemption on one or more of the three preceding assessment rolls, he
5 or she shall proceed to revoke the improperly granted prior exemption or
6 exemptions.
7 (b) Procedure. The assessed value attributable to each such improper-
8 ly granted exemption shall be entered separately on the next ensuing
9 tentative or final assessment roll. The provisions of section five
10 hundred fifty-one or five hundred fifty-three of this chapter, relating
11 to the entry by the assessor of omitted real property on a tentative or
12 final assessment roll, or such other law as may be locally applicable,
13 shall apply so far as practicable to the revocation procedure, except
14 that the tax rate to be applied to any revoked exemption shall be the
15 tax rate that was applied to the corresponding assessment roll.
16 (c) Rights of owners. Each owner or owners shall be given notice of
17 the possible revocation of their exemption or exemptions at the time and
18 in the manner provided by section five hundred ten or five hundred
19 fifty-three of this chapter, or such other law as may be locally appli-
20 cable, and shall be entitled to seek administrative and judicial review
21 of such action in the manner provided by law.
22 § 13. Subdivision 3 of section 459-c of the real property tax law, as
23 added by chapter 315 of the laws of 1997, is amended to read as follows:
24 3. Any exemption provided by this section shall be computed after all
25 other partial exemptions allowed by law, excluding the school tax relief
26 (STAR) exemption authorized by section four hundred twenty-five of this
27 article, have been subtracted from the total amount assessed; provided,
28 however, that no parcel may receive an exemption for the same municipal
349 13001-04-9
1 tax purpose pursuant to both this section and section four hundred
2 sixty-seven of this title.
3 § 14. Paragraph (c) of subdivision 1 of section 467 of the real prop-
4 erty tax law, as amended by chapter 440 of the laws of 1985, is amended
5 to read as follows:
6 (c) Any exemption provided by this section shall be computed after all
7 other partial exemptions allowed by law, excluding the school tax relief
8 (STAR) exemption authorized by section four hundred twenty-five of this
9 article, have been subtracted from the total amount assessed.
10 § 15. Subdivision 3 of section 1306-a of the real property tax law is
11 amended by adding a new paragraph (f) to read as follows:
12 (f) When an order has been entered in a proceeding pursuant to article
13 seven of this chapter relating to property receiving the STAR exemption
14 authorized by section four hundred twenty-five of this chapter, and the
15 order reduces the assessment of such property to an amount which is
16 below the applicable exempt amount, the excess aid paid to the school
17 district on account of the excessive assessment shall be deducted from
18 the next payment of aid to the school district pursuant to this section.
19 § 16. Subdivision 2 of section 1573 of the real property tax law, as
20 amended by chapter 309 of the laws of 1996 and paragraph (a) as amended
21 by chapter 430 of the laws of 1997, is amended to read as follows:
22 2. State assistance pursuant to subdivision one of this section shall
23 be payable as follows for each separately assessed parcel appearing on
24 the applicable assessment roll, excluding parcels which are wholly
25 exempt or assessed by the state board, and shall be subject to a maximum
26 payment of five hundred thousand dollars per assessment roll: (a)
27 Triennial aid in an amount not to exceed five dollars for each [sepa-
28 rately assessed] parcel appearing on a revaluation or update assessment
350 13001-04-9
1 roll[, excluding parcels which are wholly exempt or assessed by the
2 state board]. However, no assessing unit may qualify for this payment
3 more than once in a three year period or within three years after quali-
4 fying for any state assistance pursuant to either paragraph (b) or (d)
5 of subdivision one of section fifteen hundred seventy-two of this arti-
6 cle.
7 (b) Annual aid in an amount not to exceed five dollars for each parcel
8 appearing on a final assessment roll completed in nineteen hundred nine-
9 ty-nine through two thousand four, inclusive, and in an amount not to
10 exceed two dollars for each parcel appearing on a final assessment roll
11 completed in two thousand five or thereafter, for any year where state
12 assistance is not paid pursuant to paragraph (a) of this subdivision[,]
13 and the state board determines that the assessing unit has maintained an
14 equitable assessment roll. Such determination shall be made in accord-
15 ance with standards established pursuant to regulations promulgated by
16 the state board, subject to the approval of the director of the budget,
17 and shall be based upon criteria including but not limited to: (i) annu-
18 ally maintaining assessments at the percentage of value specified in
19 subdivision one of this section; (ii) annually conducting a systematic
20 analysis of all locally assessed properties; (iii) annually revising
21 assessments as necessary to maintain the stated uniform percentage of
22 value; and (iv) implementing a local program for physically inspecting
23 and reappraising each parcel at least once every six years.
24 (c) If an assessing unit qualified for aid pursuant to paragraph (a)
25 of this subdivision with respect to a revaluation implemented on an
26 assessment roll completed in nineteen hundred ninety-seven, nineteen
27 hundred ninety-eight, or nineteen hundred ninety-nine, and the assessing
28 unit does not qualify for state assistance pursuant to paragraph (b) of
351 13001-04-9
1 this subdivision with respect to the assessment roll completed in either
2 the first or second year after the implementation of the revaluation,
3 state assistance shall be payable in an annual amount not to exceed two
4 dollars for each separately assessed parcel appearing on the [latest
5 completed] final assessment roll[, excluding parcels which are wholly
6 exempt or assessed by the state board] completed in the first or second
7 year, or both, after the implementation of the revaluation. An assess-
8 ing unit having completed a revaluation and having received state
9 assistance pursuant to section fifteen hundred seventy-two of this arti-
10 cle may make application for and receive state assistance pursuant to
11 this paragraph, in years subsequent to such revaluation, provided that
12 such assessing unit satisfies all criteria and provisions set forth in
13 subdivision one of this section.
14 § 17. The real property tax law is amended by adding a new section
15 1573-a to read as follows:
16 § 1573-a. Special one-time state assistance for certain reassessment
17 projects. 1. State assistance shall be paid to an assessing unit, or to
18 a county that has been authorized to coordinate or facilitate a revalu-
19 ation on behalf of one or more assessing units, upon a determination of
20 the state board that the assessing unit has satisfied the standards of
21 quality assessment administration established by the state board pursu-
22 ant to section fifteen hundred seventy-three of this article, after
23 having failed to conduct a revaluation or update since January first,
24 nineteen hundred ninety or earlier.
25 2. (a) Such assistance shall be payable in an amount of up to twenty
26 dollars for each separately assessed parcel appearing on the revaluation
27 assessment roll, excluding parcels which are wholly exempt or assessed
28 by the state board. Such assistance may be paid in increments in accord-
352 13001-04-9
1 ance with a schedule adopted by the state board and approved by the
2 director of the budget. Such assistance shall be in lieu of the assist-
3 ance that would otherwise be authorized for the revaluation or update
4 pursuant to paragraph (a) of subdivision two or subdivision three of
5 section fifteen hundred seventy-three of this article.
6 (b) With respect to assessment rolls completed subsequent to the
7 completion of the revaluation assessment roll, state assistance may be
8 paid as provided by sections fifteen hundred seventy-three of this arti-
9 cle without regard to the provisions of this section.
10 3. No state assistance shall be granted pursuant to this section for a
11 reassessment implemented on a final assessment roll completed after two
12 thousand four, provided, however, that in the case of a revaluation
13 project involving at least one hundred seventy-five thousand parcels, if
14 the revaluation is implemented pursuant to a plan that was submitted to
15 the state board by December thirty-first, two thousand two and approved
16 by the state board by March thirty-first, two thousand three, such
17 assistance may be granted if the reassessment is implemented on a final
18 assessment roll completed no later than two thousand five.
19 4. In the case of a county which is a special assessing unit as
20 defined by section eighteen hundred one of this chapter, and which
21 implements a revaluation that qualifies for state assistance pursuant to
22 this section, the provisions of section eighteen hundred five of this
23 chapter shall be suspended in the year in which such revaluation is
24 implemented, and all real property on the assessment roll on which such
25 revaluation is implemented shall be assessed without regard to the
26 provisions of section eighteen hundred five of this chapter. Beginning
27 in the year following the implementation of such revaluation, the
28 provisions of section eighteen hundred five of this chapter shall resume
353 13001-04-9
1 its applicability, provided that such section shall only apply to
2 assessment increases occurring after the implementation of such revalu-
3 ation.
4 5. The state board shall be authorized to adopt such rules as it
5 deems necessary to implement the provisions of this section, subject to
6 the approval of the director of the budget.
7 § 18. The tax law is amended by adding a new section 171-k to read as
8 follows:
9 § 171-k. Income verification for the state board of real property
10 services. (1) The department shall enter into an agreement with the
11 state board of real property services to verify, to the extent practica-
12 ble, whether persons described in paragraph (b) of subdivision four of
13 section four hundred twenty-five of the real property tax law meet the
14 income eligibility requirements prescribed therein for the applicable
15 income tax year. The department shall advise the state board of real
16 property services of its findings, stating in each case either that such
17 person or persons do or do not satisfy such requirements, or that the
18 eligibility of such person or persons cannot be verified, whichever is
19 appropriate. The department shall not provide any other information
20 about the income of such persons to the state board.
21 (2) The provisions of article six of the public officers law shall not
22 apply to any information that the department obtains from or provides to
23 the state board of real property services pursuant to this section.
24 § 19. The real property tax law is amended by adding a new section
25 1307 to read as follows:
26 § 1307. Restrictions on tax levies in high spending school districts.
27 1. Notwithstanding any other provision of law to the contrary, commenc-
28 ing with the levy of school taxes for the school year two thousand--two
354 13001-04-9
1 thousand one, the total school tax levy for a high spending school
2 district shall not exceed the total school tax levy for the prior school
3 year by a percentage that exceeds the lesser of: (i) four percent, or
4 (ii) the result obtained when one hundred twenty percent is multiplied
5 by the percentage increase in the consumer price index over the twelve
6 month period preceding January first of the calendar year in which the
7 current school year commences, with the result rounded to two decimal
8 places; except with the approval of the qualified voters in the manner
9 prescribed in subdivision four of this section.
10 2. Commencing with the levy of school taxes for the school year two
11 thousand--two thousand one, the resolution of the school authorities of
12 a high spending school district levying a tax shall incorporate by
13 reference a statement specifying the projected percentage increase or
14 decrease in total school tax levy for the school year, and explaining
15 the reasons for disregarding any portion of the school tax levy in
16 determining such percentage increase.
17 3. Notwithstanding any other provision of law to the contrary, the
18 school authorities of a high spending school district shall not be
19 authorized to levy a tax for the school year two thousand--two thousand
20 one or thereafter for a purpose arising during the school year in excess
21 of the total tax levy limitation set forth in subdivision one of this
22 section, except with the approval of the qualified voters in the manner
23 prescribed in subdivision four of this section; provided, however, that
24 nothing in this section shall preclude such school authorities from
25 levying a tax directly attributable to the types of expenditures set
26 forth in paragraph b of subdivision four of section two thousand twen-
27 ty-three of the education law, whether or not a contingency budget has
28 been adopted, or for expenditures resulting from an actual increase in
355 13001-04-9
1 enrollment over the projected enrollment used to develop the school
2 district budget, provided further that such expenditures shall be
3 subject to voter approval by majority vote to the extent required under
4 the education law.
5 4. Notwithstanding any other provision of law to the contrary, the
6 approval of at least two-thirds of the qualified voters of a high spend-
7 ing school district present and voting at an annual or special school
8 district meeting shall be required in order to override the total tax
9 levy limitation imposed by this section in the current school year;
10 except that where the school authorities of the high spending school
11 district determine, based on documented evidence, that more than fifty
12 percent of all the qualified voters of such school district voted on the
13 school district budget or any proposition for the expenditure of moneys
14 at such annual or special district meeting, such approval shall be by a
15 majority of the qualified voters present and voting. Notwithstanding
16 any other provision of law to the contrary, where a two-thirds vote is
17 required pursuant to this subdivision and a majority of the qualified
18 voters present and voting, but less than two-thirds, approve the school
19 district budget or proposition for the expenditure of money:
20 (a) such budget or proposition shall be deemed approved by the voters
21 subject to the tax levy limitation imposed by this section;
22 (b) the school authorities shall be authorized to make any reductions
23 in such budget or proposition that are necessary to comply with the tax
24 levy limitation without further approval of the voters and without
25 adopting a contingency budget pursuant to section two thousand twenty-
26 three of the education law; and
27 (c) the school authorities shall be authorized to resubmit to the
28 voters on one additional occasion a separate proposition to override the
356 13001-04-9
1 total tax levy limitation imposed by this section for the current school
2 year and to fully implement the budget or proposition previously
3 approved by majority vote, provided that such separate proposition to
4 override is approved by at least two-thirds of the qualified voters
5 present and voting; except that where the school authorities of the high
6 spending school district determine, based on documented evidence, that
7 more than fifty percent of all the qualified voters of such school
8 district voted on such separate proposition, such approval of the sepa-
9 rate proposition shall be by a majority of the qualified voters present
10 and voting. Notwithstanding any other provision of law to the contrary,
11 if the approval of the qualified voters to override the limitation on
12 total tax levy is not obtained upon such one resubmission, the school
13 authorities of the high spending school district shall make any
14 reductions in the budget or proposition that are necessary to comply
15 with the total tax levy limitation.
16 5. For the purposes of this section:
17 (a) "Consumer price index" shall mean the percentage that represents
18 the average of the national consumer price indexes for all urban consum-
19 ers (CPI-U) determined by the United States department of labor.
20 (b) "Current school year" shall mean the school year for which school
21 taxes are levied.
22 (c) "High spending school district" shall mean a school district which
23 levies real property taxes pursuant to section thirteen hundred six of
24 this article and which has a percentage increase in total spending over
25 the two school years next preceding the current school year that exceeds
26 the lesser of (i) four percent per year, compounded, or (ii) the result
27 obtained when one hundred forty percent is multiplied by the percentage
28 increase in the consumer price index over the twenty-four month period
357 13001-04-9
1 preceding January first of the calendar year in which the current school
2 year commences, with the result rounded to two decimal places. Such term
3 shall not include a city school district in a city having a population
4 of one hundred twenty-five thousand inhabitants or more.
5 (d) "Total spending" shall mean the total amount appropriated under
6 the school district budget for the school year, provided that the
7 following types of expenditures shall be disregarded in determining
8 total spending:
9 (i) the types of expenditures set forth in paragraph b of subdivision
10 four of section two thousand twenty-three of the education law, whether
11 or not a contingency budget has been adopted; and
12 (ii) expenditures resulting from an actual increase in enrollment over
13 the projected enrollment used to develop the school district budget; and
14 (iii) expenditures from appropriations for gifts or federal grants-in-
15 aid that are added after adoption of the school district budget for the
16 current school year.
17 (e) "Total school tax levy" shall mean the total amount of real prop-
18 erty taxes levied for school district purposes for the school year,
19 provided, however, that in determining such total tax levy, the tax levy
20 attributable to the types of expenditures set forth in paragraph b of
21 subdivision four of section two thousand twenty-three of the education
22 law shall be disregarded.
23 § 20. Section 1608 of the education law is amended by adding four new
24 subdivisions 4-a, 4-b, 4-c and 7 to read as follows:
25 4-a. Commencing with the proposed budget for the nineteen hundred
26 ninety-nine--two thousand school year, such statement of proposed
27 expenditures shall include a description of how total spending and the
28 tax levy resulting from the proposed budget would compare with a
358 13001-04-9
1 projected contingency budget adopted pursuant to section two thousand
2 twenty-three of this chapter, assuming that such contingency budget is
3 adopted on the same day as the vote on the proposed budget. Such compar-
4 ison shall be in total and by component (program, capital and adminis-
5 trative), and shall include a statement of the assumptions made in esti-
6 mating the projected contingency budget. Such description shall be
7 prominently displayed in the statement of expenditures, and a copy of
8 such description shall be conspicuously posted in each polling place at
9 which the budget vote will occur.
10 4-b. Commencing with the proposed budget for the nineteen hundred
11 ninety-nine--two thousand school year, where the proposed budget would
12 result in an increase in total spending over the prior year in excess of
13 the lesser of four percent or the result obtained when one hundred forty
14 percent is multiplied by the percentage increase in the consumer price
15 index over the twelve month period preceding January first of the calen-
16 dar year in which the current school year commences, the board of educa-
17 tion of any school district to which this section applies shall append
18 to such statement of expenditures a notice that the increase in total
19 spending under the proposed school district budget would exceed such
20 percentages, provided however that such notice shall not be required
21 where the district is required to provide notice under subdivision
22 four-c of this section. Such notice shall be in plain language and in a
23 form prescribed by the commissioner, and shall also include an estimate
24 of the total spending and total school tax levy that would result from
25 approval of the proposed budget, the percentage change in total spending
26 and in total school tax levy from the school district budget for the
27 prior school year, and a comparison with the total spending and total
28 school tax levy, including the percentage change from the prior year,
359 13001-04-9
1 that would result from adoption of a contingency budget on the day of
2 the budget vote. A copy of such notice shall be mailed to all school
3 district residents no later than seven days prior to the annual or
4 special school district meeting at which a vote on the school district
5 budget will occur. For the purposes of this subdivision and subdivisions
6 four-c and seven of this section, the terms "total spending" and "total
7 school tax levy" shall have the meaning prescribed in section thirteen
8 hundred seven of the real property tax law.
9 4-c. Commencing with the proposed budget for the two thousand--two
10 thousand one school year, the board of education of any school district
11 to which this section applies that is a high spending school district,
12 as defined in section thirteen hundred seven of the real property tax
13 law, shall append to such statement of expenditures a notice that the
14 proposed school district budget will be subject to a tax levy cap limit-
15 ing total school tax levy increases in accordance with section thirteen
16 hundred seven of the real property tax law unless voter approval to
17 override such cap is obtained by a two-thirds vote or by a majority vote
18 where the voter turnout on the budget vote exceeds fifty percent of the
19 total number of qualified voters of the school district. Such notice
20 shall be in plain language and in a form prescribed by the commissioner,
21 and shall also include an estimate of the total spending and total
22 school tax levy that would result from approval of the proposed budget,
23 the percentage change in total spending and in total school tax levy
24 from the school district budget for the prior school year, and a compar-
25 ison with the total spending and total school tax levy, including the
26 percentage change from the prior year, that would result from adoption
27 of a contingency budget on the day of the budget vote. A copy of such
28 notice shall be mailed to all school district residents no later than
360 13001-04-9
1 seven days prior to the annual or special school district meeting at
2 which a vote on the school district budget will occur.
3 7. Each year, commencing with the proposed budget for the nineteen
4 hundred ninety-nine--two thousand school year, the trustee or board of
5 trustees shall prepare a property tax report card, pursuant to regu-
6 lations of the commissioner, and shall make it publicly available by
7 transmitting it to local newspapers of general circulation, appending it
8 to copies of the proposed budget made publicly available as required by
9 law, making it available for distribution at the annual meeting, and
10 otherwise disseminating it as required by the commissioner. Such report
11 card shall include: (i) the amount of total spending and total school
12 tax levy that would result from adoption of the proposed budget and the
13 percentage increase or decrease in total spending and total school tax
14 levy from the school district budget for the preceding school year, (ii)
15 the amount of total spending and total school tax levy under a projected
16 contingency budget and the percentage increase or decrease in total
17 spending and total school tax levy under such projected contingency
18 budget from the school district budget for the preceding school year,
19 and (iii) the projected enrollment growth for the school year for which
20 the budget is prepared, and the percentage change in enrollment from the
21 previous year. Commencing with the proposed budget for the two thou-
22 sand--two thousand one school year, such report card shall also indicate
23 whether or not the school district is a high spending school district
24 whose budget will be subject to the tax levy cap limiting total school
25 tax levy increases in accordance with section thirteen hundred seven of
26 the real property tax law. A copy of the property tax report card
27 prepared for the annual district meeting shall be submitted to the
28 department in the manner prescribed by the department by the end of the
361 13001-04-9
1 business day next following approval of the report card by the trustee
2 or board of trustees, but no later than fourteen days prior to the
3 statewide uniform voting day. The department shall compile such data for
4 all school districts whose budgets are subject to a vote of the quali-
5 fied voters and shall make such compilation available at least ten days
6 prior to the statewide uniform voting day.
7 § 21. Section 1716 of the education law is amended by adding four new
8 subdivisions 4-a, 4-b, 4-c and 7 to read as follows:
9 4-a. Commencing with the proposed budget for the nineteen hundred
10 ninety-nine--two thousand school year, such statement of proposed
11 expenditures shall include a description of how total spending and the
12 tax levy resulting from the proposed budget would compare with a
13 projected contingency budget adopted pursuant to section two thousand
14 twenty-three of this chapter, assuming that such contingency budget is
15 adopted on the same day as the vote on the proposed budget. Such compar-
16 ison shall be in total and by component (program, capital and adminis-
17 trative), and shall include a statement of the assumptions made in esti-
18 mating the projected contingency budget. Such description shall be
19 prominently displayed in the statement of expenditures, and a copy of
20 such description shall be conspicuously posted in each polling place at
21 which the budget vote will occur.
22 4-b. Commencing with the proposed budget for the nineteen hundred
23 ninety-nine--two thousand school year, where the proposed budget would
24 result in an increase in total spending over the prior year in excess of
25 the lesser of four percent or the result obtained when one hundred forty
26 percent is multiplied by the percentage increase in the consumer price
27 index over the twelve month period preceding January first of the calen-
28 dar year in which the current school year commences, the board of educa-
362 13001-04-9
1 tion of any school district to which this section applies shall append
2 to such statement of expenditures a notice that the increase in total
3 spending under the proposed school district budget would exceed such
4 percentages, provided however that such notice shall not be required
5 where the district is required to provide notice under subdivision
6 four-c of this section. Such notice shall be in plain language and in a
7 form prescribed by the commissioner, and shall also include an estimate
8 of the total spending and total school tax levy that would result from
9 approval of the proposed budget, the percentage change in total spending
10 and in total school tax levy from the school district budget for the
11 prior school year, and a comparison with the total spending and total
12 school tax levy, including the percentage change from the prior year,
13 that would result from adoption of a contingency budget on the day of
14 the budget vote. A copy of such notice shall be mailed to all school
15 district residents no later than seven days prior to the annual or
16 special school district meeting at which a vote on the school district
17 budget will occur. For the purposes of this subdivision and subdivisions
18 four-c and seven of this section, the terms "current school year",
19 "consumer price index", "total spending" and "total school tax levy"
20 shall have the meaning prescribed in section thirteen hundred seven of
21 the real property tax law.
22 4-c. Commencing with the proposed budget for the two thousand--two
23 thousand one school year, the board of education of any school district
24 to which this section applies that is a high spending school district,
25 as defined in section thirteen hundred seven of the real property tax
26 law, shall append to such statement of expenditures a notice that the
27 proposed school district budget will be subject to a tax levy cap limit-
28 ing total school tax levy increases in accordance with section thirteen
363 13001-04-9
1 hundred seven of the real property tax law unless voter approval to
2 override such cap is obtained by a two-thirds vote or by a majority vote
3 where the voter turnout on the budget vote exceeds fifty percent of the
4 total number of qualified voters of the school district. Such notice
5 shall be in plain language and in a form prescribed by the commissioner,
6 and shall also include an estimate of the total spending and total
7 school tax levy that would result from approval of the proposed budget,
8 the percentage change in total spending and in total school tax levy
9 from the school district budget for the prior school year, and a compar-
10 ison with the total spending and total school tax levy, including the
11 percentage change from the prior year, that would result from adoption
12 of a contingency budget on the day of the budget vote. A copy of such
13 notice shall be mailed to all school district residents no later than
14 seven days prior to the annual or special school district meeting at
15 which a vote on the school district budget will occur.
16 7. Each year, commencing with the proposed budget for the nineteen
17 hundred ninety-nine--two thousand school year, the board of education
18 shall prepare a property tax report card, pursuant to regulations of the
19 commissioner, and shall make it publicly available by transmitting it to
20 local newspapers of general circulation, appending it to copies of the
21 proposed budget made publicly available as required by law, making it
22 available for distribution at the annual meeting, and otherwise dissem-
23 inating it as required by the commissioner. Such report card shall
24 include: (i) the amount of total spending and total school tax levy that
25 would result from adoption of the proposed budget and the percentage
26 increase or decease in total spending and total school tax levy from the
27 school district budget for the preceding school year, (ii) the amount of
28 total spending and total school tax levy under a projected contingency
364 13001-04-9
1 budget and the percentage increase or decrease in total spending and
2 total school tax levy under such projected contingency budget from the
3 school district budget for the preceding school year, and (iii) the
4 projected enrollment growth for the school year for which the budget is
5 prepared, and the percentage change in enrollment from the previous
6 year. Commencing with the proposed budget for the two thousand--two
7 thousand one school year, such report card shall also indicate whether
8 or not the school district is a high spending school district whose
9 budget will be subject to the tax levy cap limiting total school tax
10 levy increases in accordance with section thirteen hundred seven of the
11 real property tax law. A copy of the property tax report card prepared
12 for the annual district meeting shall be submitted to the department in
13 the manner prescribed by the department by the end of the business day
14 next following approval of the report card by the board of education,
15 but no later than fourteen days prior to the statewide uniform voting
16 day. The department shall compile such data for all school districts
17 whose budgets are subject to a vote of the qualified voters and shall
18 make such compilation available at least ten days prior to the statewide
19 uniform voting day.
20 § 22. Subdivision 3 of section 2601-a of the education law, as amended
21 by section 28 of part A of chapter 436 of the laws of 1997, is amended
22 to read as follows:
23 3. The board of education shall prepare a proposed school district
24 budget for the ensuing year in accordance with the provisions of section
25 seventeen hundred sixteen of this chapter, including all provisions
26 relating to required notices and appendices to the statement of expendi-
27 tures. No board of education shall incur a school district liability
28 except as authorized by the provisions of section seventeen hundred
365 13001-04-9
1 eighteen of this chapter. Such proposed budget shall be presented in
2 three components: a program component, a capital component and an admin-
3 istrative component which shall be separately delineated in accordance
4 with regulations of the commissioner after consultation with local
5 school district officials. The administrative component shall include,
6 but need not be limited to, office and central administrative expenses,
7 traveling expenses and salaries and benefits of all certified school
8 administrators and supervisors who spend a majority of their time
9 performing administrative or supervisory duties, any and all expendi-
10 tures associated with the operation of the board of education, the
11 office of the superintendent of schools, general administration, the
12 school business office, consulting costs not directly related to direct
13 student services and programs, planning and all other administrative
14 activities. The program component shall include, but need not be limit-
15 ed to, all program expenditures of the school district, including the
16 salaries and benefits of teachers and any school administrators or
17 supervisors who spend a majority of their time performing teaching
18 duties, and all transportation operating expenses. The capital compo-
19 nent shall include, but need not be limited to, all transportation capi-
20 tal, debt service, and lease expenditures; costs resulting from judg-
21 ments in tax certiorari proceedings or the payment of awards from court
22 judgments, administrative orders or settled or compromised claims; and
23 all facilities costs of the school district, including facilities lease
24 expenditures, the annual debt service and total debt for all facilities
25 financed by bonds and notes of the school district, and the costs of
26 construction, acquisition, reconstruction, rehabilitation or improvement
27 of school buildings, provided that such budget shall include a rental,
28 operations and maintenance section that includes base rent costs, total
366 13001-04-9
1 rent costs, operation and maintenance charges, cost per square foot for
2 each facility leased by the school district, and any and all expendi-
3 tures associated with custodial salaries and benefits, service
4 contracts, supplies, utilities, and maintenance and repairs of school
5 facilities. For the purposes of the development of a budget for the
6 nineteen hundred ninety-seven--ninety-eight school year, the board of
7 education shall separate its program, capital and administrative costs
8 for the nineteen hundred ninety-six--ninety-seven school year in the
9 manner as if the budget for such year had been presented in three compo-
10 nents. Except as provided in subdivision four of this section, nothing
11 in this section shall preclude the board, in its discretion, from
12 submitting additional items of expenditure to the voters for approval as
13 separate propositions or the voters from submitting propositions pursu-
14 ant to sections two thousand eight and two thousand thirty-five of this
15 chapter.
16 § 23. This act shall take effect April 1, 1999, provided, however,
17 that:
18 (1) Section one of this act shall apply to the administration of the
19 school tax relief (STAR) exemption authorized by section 425 of the real
20 property tax law beginning with the 1999-2000 school year.
21 (2) Sections two through fifteen and eighteen of this act shall apply
22 to the administration of the STAR exemption beginning with the 2000-2001
23 school year.
24 (3) Section nineteen of this act shall take effect July 1, 1999.
25 PART JJ
26 § 1. Section 237 of the education law is REPEALED.
27 § 2. Subdivision 1 of section 352 of the education law, as amended by
28 chapter 552 of the laws of 1985, is amended to read as follows:
367 13001-04-9
1 1. There is hereby created in the state education department and with-
2 in the university of the state of New York as established under the
3 board of regents a corporation to be known as the state university of
4 New York which shall be responsible for the planning, supervision and
5 administration of facilities and programs [in accordance with the plan
6 proposed by the state university trustees as approved by the regents
7 pursuant to section two hundred thirty-seven of this chapter]. The state
8 university shall provide for higher education supported in whole or in
9 part with state moneys in accordance with the provisions of section
10 three hundred fifty-eight [hereof] of this article, and shall perform
11 such other duties as may be entrusted to it by the provisions of this
12 article and any other law. Subject to the terms of any agreement to
13 which it is a party, such corporation shall have the care, custody,
14 control and management of the lands, grounds, buildings, facilities and
15 equipment used for the purposes of the state-operated institutions of
16 the state university, and it shall have power to protect, preserve and
17 improve the same.
18 § 3. Section 354 of the education law is REPEALED.
19 § 4. The opening paragraph of subdivision 1 and the opening paragraph
20 of subdivision 2 of section 355 of the education law, as amended by
21 chapter 552 of the laws of 1985, are amended to read as follows:
22 [Subject to the provisions of the plan or general revision thereof
23 proposed by the state university trustees as approved by the regents
24 pursuant to section two hundred thirty-seven of this chapter, the] The
25 state university trustees shall be responsible for:
26 The state university trustees are further authorized and empowered[,
27 subject to the provisions of the plan or general revisions thereof
368 13001-04-9
1 proposed by the state university trustees as approved by the regents
2 pursuant to section two hundred thirty-seven of this chapter]:
3 § 5. Section 372 of the education law, as amended by section 107 of
4 part C of chapter 58 of the laws of 1998, is amended to read as follows:
5 § 372. Purposes of fund. The purposes of the fund shall be to provide
6 academic buildings, dormitories and other facilities including academic
7 incubator facilities at the state university of New York college of
8 technology at Farmingdale for the state-operated institutions and
9 contract and statutory colleges under the jurisdiction of the state
10 university, to reduce the time lag between determination of need for
11 such facilities and actual occupancy thereof, to expedite the
12 construction, acquisition, reconstruction, rehabilitation or improvement
13 of such facilities and to assure that the same are ready for the
14 purposes intended when needed [and when scheduled under the approved
15 master plan of the state university].
16 § 6. Subdivisions 1 and 2 of section 497 of the education law, as
17 added by chapter 771 of the laws of 1969 and such section as renumbered
18 by chapter 931 of the laws of 1971, are amended to read as follows:
19 1. [Upon the request of the governing board of at least two] Two or
20 more non-public institutions of higher education[, the commissioner of
21 education shall] may call a joint meeting of the members of [such] their
22 governing boards for the purpose of determining whether a regional
23 college cooperative services board should be established within the
24 geographic area in which such institutions are located. In the event
25 that a regional college center with similar purposes is already in
26 existence in the state, [the commissioner of education shall extend to]
27 such center shall have the opportunity to become a regional college
28 cooperative services board.
369 13001-04-9
1 2. If [the commissioner determines] such institutions determine that
2 such a board will strengthen and best develop the educational resources
3 within the area to be served, [he] they shall call a meeting to elect a
4 board of trustees of such board. Notice of such meeting shall be mailed
5 [by the commissioner] to each member of the governing board of each
6 institution at his or her last known address at least five days prior to
7 such meeting. At such meeting the governing board of each institution
8 shall have one vote.
9 § 7. Section 500 of the education law is REPEALED.
10 § 8. Article 13 of the education law is amended by adding a new
11 section 600 to read as follows:
12 § 600. State agency roles in higher education financial aid programs.
13 1. The regents of the university of the state of New York are responsi-
14 ble for the chartering of all institutions of higher education in the
15 state, as provided in section two hundred sixteen of this title.
16 2. The higher education services corporation is responsible for
17 administering the state financial aid programs for students and higher
18 education institutions in a manner which insures financial accountabil-
19 ity, recognizes student achievement, and fosters access to higher educa-
20 tion for New York students, in accord with the provisions of this title.
21 § 9. Subdivision 4 of section 601 of the education law, as amended by
22 chapter 466 of the laws of 1977, is amended to read as follows:
23 4. "Approved program", for the purpose of determining a student’s
24 eligibility for awards provided in articles thirteen and fourteen of
25 this chapter and subject to specific modification by sections of such
26 articles, shall mean the following programs of study [approved by the
27 commissioner pursuant to this article in accordance with rules of the
28 board of regents and registered by the state education department in
370 13001-04-9
1 accordance with regulations of the commissioner] offered in an institu-
2 tion of higher education recognized and approved by the regents of the
3 university of the state of New York, or accredited by a nationally
4 recognized accrediting agency or association included in the federal
5 list of approved accrediting agencies, and registered with the higher
6 education services corporation pursuant to regulations approved by the
7 board of trustees, or, where applicable, registered by the state depart-
8 ment of health and forwarded to the [state education department] higher
9 education services corporation: (1) collegiate level programs leading
10 to a degree, or programs leading to a diploma or certificate that are
11 fully creditable towards a degree program in that institution; (2) study
12 and training programs offered by a hospital school, a community college,
13 a unit of the state university of New York, a unit of the city universi-
14 ty of New York, or an institution chartered by the regents or by the
15 legislature for the purpose of granting degrees, leading to licensure as
16 a professional registered or practical nurse or to certification in an
17 area of medical or health technology; and (3) two-year programs offered
18 in a registered private business school and conducted in accord with the
19 requirements of article one hundred one of this chapter and the regu-
20 lations of the commissioner pursuant to that article.
21 § 10. Section 601 of the education law is amended by adding a new
22 subdivision 5 to read as follows:
23 5. "Board of trustees" shall mean the board of trustees of the New
24 York state higher education services corporation.
25 § 11. Section 602 of the education law, as amended by chapter 844 of
26 the laws of 1975, subdivision 2 as amended by chapter 589 of the laws of
27 1988, is amended to read as follows:
371 13001-04-9
1 § 602. Duties of the [commissioner] president. 1. Selection and
2 certification of academic performance award recipients. [(a)] The
3 [commissioner] president shall select the qualified recipients of
4 academic performance awards, from among candidates who meet and exceed
5 the minimum eligibility requirements, in order of merit on the basis of
6 such combination of test scores, academic records, and personal quali-
7 fications as the [commissioner] president deems appropriate. If awards
8 are allocated on the basis of geographic or political units in the
9 state, and if for any reason there is an insufficient number of quali-
10 fied applicants in any unit, the remaining number of awards in such unit
11 shall be allocated to the best qualified applicants in the entire state.
12 No person shall be eligible to receive an academic performance award
13 under [this article] articles thirteen and fourteen of this title who
14 fails to achieve the minimum standard of test scores, academic record,
15 or, in the judgement of the [commissioner] president, personal quali-
16 fications necessary to demonstrate promise of successful completion of
17 the program for which the award is made[; (b) The commissioner shall
18 certify to the president those students eligible to receive academic
19 performance awards].
20 2. The [commissioner] president with the approval of the board of
21 trustees shall promulgate regulations defining the following terms by
22 which the president can determine a student’s eligibility for student
23 aid and loan programs: (a) full-time study or attendance; (b) part-time
24 study or attendance; (c) full-time and part-time accelerated study
25 beyond the regular program of study for the academic year; (d) permissi-
26 ble use of general and academic performance awards; (e) matriculation;
27 and (f) loss of good academic standing.
372 13001-04-9
1 3. [The commissioner shall promulgate regulations by which the presi-
2 dent shall determine whether a student has entered an approved program
3 during the academic year prior to the normal effective date of the
4 student’s award.
5 4.] If any person because of administrative error or inadvertency
6 should fail to receive an academic performance award which he or she
7 would otherwise be entitled to receive, the [commissioner] president may
8 certify such person [to the president] as eligible to receive such award
9 without regard to the total number of such awards authorized under this
10 article, and payments shall be made thereon out of moneys available in
11 the same manner as other academic performance awards are paid.
12 § 12. Section 603 of the education law is REPEALED.
13 § 13. Subdivision 1 of section 604 of the education law, as amended by
14 chapter 844 of the laws of 1975, is amended to read as follows:
15 1. Tuition assistance program awards are available for all students
16 who are enrolled in approved programs and who demonstrate the ability to
17 complete such courses, in accordance with standards established by the
18 [commissioner] president as approved by the board of trustees and the
19 director of the budget.
20 § 14. Section 605-a of the education law, as amended by section 83 of
21 part C of chapter 58 of the laws of 1998, is amended to read as follows:
22 § 605-a. Scholarships for academic excellence. 1. (a) Beginning with
23 the nineteen hundred ninety-seven--ninety-eight academic year and there-
24 after, scholarships for academic excellence shall be awarded to students
25 completing their high school programs for attendance in approved
26 programs. The academic merit criteria for awarding these scholarships
27 will be determined by taking the weighted average of a student’s score
28 on Regents examinations taken by students prior to their senior year in
373 13001-04-9
1 all of the following five subject areas: comprehensive English; global
2 studies; U.S. history/government; level 3 math; and science, which shall
3 consist of the weighted average of the combination of exams taken in
4 chemistry, biology, earth science and physics. For those schools not
5 offering regents examinations in all such five subject areas, awards
6 shall be based on criteria developed by the [commissioner] president and
7 subject to the approval of the director of the budget.
8 (b) School allocation. (i) Each high school in the state, as defined
9 in regulations of the commissioner adopted for such purpose and subject
10 to the approval of the director of the budget, shall be allocated: for
11 the nineteen hundred ninety-seven--ninety-eight academic year, a single
12 scholarship of one thousand dollars; and for the nineteen hundred nine-
13 ty-eight--ninety-nine academic year and thereafter, a single scholarship
14 of one thousand five hundred dollars which shall be awarded to the top
15 scholar of such school as determined by the academic merit criteria set
16 forth in paragraph (a) of this subdivision.
17 (ii) The remaining scholarships for the nineteen hundred ninety-sev-
18 en--ninety-eight academic year of one thousand dollars, and for the
19 nineteen hundred ninety-eight--ninety-nine academic year and thereafter,
20 of one thousand five hundred dollars shall be allocated to high schools
21 in the state as defined in regulations of the commissioner for such
22 purpose and subject to the approval of the director of the budget, in
23 the same ratio that the number of students enrolled in the twelfth grade
24 at such high school in the prior school year bears to the total number
25 of students who were enrolled in the twelfth grade in the state during
26 the prior school year. The ratio shall be multiplied by the number of
27 scholarships available and the results, rounded to the nearest whole
28 number, shall be the number of scholarships allocated to the school.
374 13001-04-9
1 Such awards shall be distributed on the basis of the academic merit
2 criteria as set forth in paragraph (a) of this subdivision.
3 (iii) All scholarships of five hundred dollars shall be allocated in
4 the same manner as described in subparagraph (ii) of this paragraph.
5 2. In the event that a scholarship awarded is declined by a student,
6 or for any reason revoked by the [commissioner or the] president, its
7 benefits shall lapse and there shall be no further payments or awarding
8 of such scholarship.
9 § 15. Section 607 of the education law is REPEALED.
10 § 16. Paragraph a of subdivision 2 of section 653 of the education
11 law, as added by chapter 942 of the laws of 1974, is amended to read as
12 follows:
13 a. To submit to the governor, the temporary president of the senate,
14 the speaker of the assembly, the senate finance committee, the assembly
15 ways and means committee and the standing committees of the legislature
16 having jurisdiction of higher education, at such times as the director
17 of the budget may prescribe a student aid and loan budget request for
18 the following state fiscal year. The budget request shall include, but
19 not be limited to estimates of the number and characteristics of
20 students eligible for aid and loans, which budget request shall be
21 developed by the president [after consultation with the board of
22 regents] in order to implement the student financial aid and loan
23 programs provided for in this article. [A copy of the budget request
24 shall be transmitted to the commissioner for his information.] The
25 budget request submitted by the board shall be subject to approval annu-
26 ally as part of the executive budget.
27 § 17. Section 655 of the education law, as added by chapter 942 of
28 the laws of 1974, subdivision 2 as amended by chapter 366 of the laws of
375 13001-04-9
1 1979, subdivisions 4, 5 and 8 as amended by chapter 202 of the laws of
2 1996, and subdivisions 9, 10, 11 and 12 as renumbered by chapter 72 of
3 the laws of 1978, is amended to read as follows:
4 § 655. Powers and duties of the president. In administering the
5 provisions of this article, the president shall have the following
6 powers and duties:
7 1. To administer the student financial aid programs specified in
8 [this] article thirteen and fourteen of this title.
9 2. To [receive from the commissioner] determine the list of academic
10 performance award recipients in order of merit and to notify such recip-
11 ients of their status as part of their application for other general
12 awards or loans.
13 3. To lend money and guarantee loans upon such terms and conditions
14 as the board may prescribe in accordance with the provisions of this
15 article.
16 4. To propose rules and regulations, subject to approval by the board
17 of trustees, governing the following:
18 a. Application for and the granting and administration of student aid
19 and loan programs, the repayment of loans or the guarantee of loans made
20 by the corporation; and administrative functions in support of state and
21 federal student aid programs.
22 b. Other matters relating to the activities of the corporation,
23 including but not limited to (i) the limitation, suspension or termi-
24 nation of approval of aid, loan, or loan guarantee applications for
25 students attending or planning to attend colleges or vocational insti-
26 tutions whenever [the board of regents has determined that such] a
27 college or vocational institution no longer meets minimum certification
28 or approval requirements or the board of trustees has determined, after
376 13001-04-9
1 notice and affording an opportunity for hearing, that such college or
2 vocational institution has violated or failed to carry out any regu-
3 lation prescribed under this article or adopted by the board of trustees
4 pursuant to the powers granted in this article, and (ii) procedures for
5 the approval and registration of programs of study, in accord with the
6 provisions of section six hundred one of this title.
7 c. Procedures to be followed for submission of information by
8 colleges or vocational institutions as may be necessary to provide for
9 any administrative function by such institutions participating in any
10 federal or state student aid programs, including applications therefor
11 and repayment thereof, except that obligations of colleges shall be
12 limited to the following requirements:
13 (i) those required by the federal student aid programs;
14 (ii) periodic reports on the status of student borrowers at the
15 particular college;
16 (iii) interviews or other appropriate communications with student
17 borrowers at the time and application for a loan is certified or as soon
18 thereafter as feasible emphasizing the importance of the loan obli-
19 gation;
20 (iv) interviews or other appropriate communications with student
21 borrowers who are graduating or are known to be terminating their
22 enrollment emphasizing the importance of the loan obligation;
23 (v) providing the corporation, upon request, with the last known
24 addresses of borrowers who have graduated or otherwise left the college
25 and who are in default, including any change of address known to the
26 college after such request;
27 (vi) certification of student loans as frequently as is advisable and
28 feasible, and as lenders will process them (on an annual, semester,
377 13001-04-9
1 quarterly or other academic period basis), with such certification
2 limited to those educational expenses approved under the federal student
3 aid programs;
4 (vii) cooperation in whatever way is feasible and appropriate under
5 institutional regulations in advising defaulting borrowers of their loan
6 obligations.
7 5. To establish, revise from time to time, charge and collect fees as
8 the corporation shall determine, consistent with the applicable
9 provisions of the New York state and federal student aid programs.
10 6. To prepare and make available explanatory pamphlets concerning
11 state aid and loan programs.
12 7. To establish a comprehensive collection of information and materi-
13 als relative to public and private sources of higher education financial
14 assistance available to students and to the characteristics of the
15 students who are the recipients of such assistance.
16 8. To conduct financial aid program reviews of a post-secondary
17 institution’s procedures and records with respect to: certification to
18 the corporation of eligible students for purposes of tuition assistance
19 program and New York state sponsored student aid programs; compliance of
20 financial aid programs with the provisions of this article and the rele-
21 vant portion of the regulations [of the commissioner] adopted pursuant
22 to this title; disbursement of tuition assistance program and other
23 awards; and the capacity of institutions to administer New York state
24 and federal financial aid programs.
25 9. To request and receive from any department, division, board,
26 bureau, commission or agency of the state or any subdivision thereof
27 such assistance and data as it deems necessary to properly carry out its
28 powers, duties and functions.
378 13001-04-9
1 10. To develop for the board of trustees a proposed budget for the
2 following state fiscal year in such form as the board may require and in
3 accordance with the provisions of section six hundred fifty-three of
4 this part.
5 11. To appoint such officers, employees and agents, as he may deem
6 necessary, prescribe their duties, fix their compensation and provide
7 for reimbursement of their expenses within amounts available therefor by
8 appropriation; subject, however, to the provisions of the civil service
9 law, which shall apply to the corporation in the same manner as such law
10 applies to a municipal corporation other than a city.
11 12. To perform such other acts as may be necessary or appropriate to
12 carry out effectively the general objects and purposes of the corpo-
13 ration, as specified in this article.
14 § 18. Paragraphs a and b of subdivision 4 of section 661 of the
15 education law, as amended by chapter 309 of the laws of 1996, are
16 amended to read as follows:
17 a. Must be matriculated in an approved program as defined [by the
18 commissioner] pursuant to article thirteen of this title in an institu-
19 tion and situated in the state, and which has been approved and operat-
20 ing in this state for at least one year. Nothing in this subdivision
21 shall preclude payment of an award to a recipient who receives instruc-
22 tion outside the state, which instruction is conducted by an institution
23 situated in the state, and is part of the student’s program of study at
24 such institution, provided however, that nothing in this subdivision
25 shall preclude the receipt of a loan pursuant to section six hundred
26 eighty of this article;
27 b. Must be in full-time attendance, as defined by the [commissioner]
28 president, except as otherwise specifically provided in article fourteen
379 13001-04-9
1 of this title, and, for a student having completed his or her second
2 academic year, must have a cumulative C average or its equivalent. The
3 president may waive the requirement that the student have a cumulative C
4 average or its equivalent for undue hardship based on: (i) the death of
5 a relative of a student; (ii) the personal injury or illness of the
6 student; or (iii) other extenuating circumstances; and
7 § 19. Paragraph d of subdivision 5 of section 661 of the education
8 law, as amended by chapter 844 of the laws of 1975, is amended to read
9 as follows:
10 d. If an applicant for an award allocated on a geographic basis has
11 more than one residence in this state, his residence for the purpose of
12 this article shall be his place of actual residence during the major
13 part of the year while attending school, as determined by the [commis-
14 sioner] president.
15 § 20. Paragraph a of subdivision 6 of section 661 of the education
16 law, as amended by chapter 637 of the laws of 1985, is amended to read
17 as follows:
18 a. All general and academic performance awards shall only be used in
19 the manner prescribed by [the commissioner pursuant to] article thirteen
20 of this chapter, for the specific purpose for which the awards are made,
21 and no such awards shall be used to obtain professional instruction in
22 theology.
23 § 21. Subdivision l of section 662 of the education law, as added by
24 chapter 942 of the laws of 1974, is amended to read as follows:
25 1. If at any time the president determines that the recipient of an
26 academic performance award has failed to comply with the applicable
27 regulations [of the commissioner] in respect to the use of such award,
28 or to observe the rules, regulations or conditions prescribed or imposed
380 13001-04-9
1 by the institution attended, or that an award was made through error, or
2 contrary to law, he or she may suspend or revoke such award. In the
3 event of a violation of law [he] the president shall take such action as
4 shall be required by such law.
5 § 21-a. Paragraph d of subdivision 3 of section 663 of the education
6 law is REPEALED.
7 § 22. Subdivision 1 of section 664 of the education law, as added by
8 chapter 844 of the laws of 1975, paragraph b as amended by chapter 335
9 of the laws of 1987, is amended to read as follows:
10 1. a. No person shall receive benefits concurrently from more than
11 one academic performance award under this chapter, except for the
12 regents scholarship in Cornell university. Nor shall any person receive
13 benefits from an academic performance award under this chapter concur-
14 rently with any scholarship, grant, or educational assistance under
15 federal law that, in the judgement of the [commissioner] president would
16 duplicate the purpose of such academic performance award, except United
17 States war orphan educational benefits or benefits under the veterans'
18 readjustment benefits act of nineteen hundred sixty-six.
19 b. A person may receive concurrently a tuition assistance program
20 award, a regents award for children of deceased and disabled veterans
21 and a regents award for children of deceased police officers, firemen
22 and volunteer firefighters, and correction officers of the state or any
23 political subdivision thereof, and may also receive benefits under one
24 or all of these awards concurrently with an academic performance award
25 or federal or other awards. However, in the case of the regents awards
26 for children of deceased state correction officers and state civilian
27 employees of a correctional facility received pursuant to the provisions
28 of section six hundred sixty-nine of this article, no person shall
381 13001-04-9
1 receive benefits under this award concurrently with any other general or
2 academic performance award under this chapter, or with any scholarship,
3 grant, or educational assistance under federal law that, in the judge-
4 ment of the [commissioner] president would duplicate the purposes of
5 such award.
6 § 23. Section 665 of the education law, as amended by chapter 844 of
7 the laws of 1975, subdivisions 1 and 2 as amended by chapter 589 of the
8 laws of 1988, subdivisions 3, 5 and 6 as amended and subdivision 4 as
9 added by chapter 195 of the laws of 1980, paragraph c of subdivision 3
10 as amended and paragraph d of subdivision 3 as added by chapter 680 of
11 the laws of 1986, paragraph a of subdivision 6 as designated and para-
12 graph b of subdivision 6 as added by chapter 1047 of the laws of 1981
13 and subdivision 7 as added by chapter 523 of the laws of 1985, is
14 amended to read as follows:
15 § 665. Payment. 1. Semester payment. The annual award to each
16 recipient shall be paid in separate installments on a prorated basis,
17 for each semester, quarter, or other term of attendance during the
18 academic year. For an approved two-year program of study conducted on a
19 clock hour basis at a registered private business school, the award
20 shall be paid in installments by payment term as such period is defined
21 by the rules of the board. The board shall take into consideration in
22 promulgating such rules an appropriate proration of the regular program
23 of study provided during an academic year and the periods at which
24 student progress and academic standing are evaluated. In no event shall
25 there be less than two, nor more than four, payment terms in an academic
26 year, including when such year contains a semester, quarter or other
27 term of accelerated study.
382 13001-04-9
1 2. Payment for accelerated study. a. If the student enrolls for a
2 term of study which shall be beyond the regular program of study for the
3 academic year, an additional award shall be made for each such term of
4 study on the basis of an equivalent full semester, quarter, or term of
5 attendance during the regular academic year.
6 b. If the student enrolls in a term of accelerated study as described
7 in paragraph a of this subdivision constituting less than the equivalent
8 of a full semester, quarter, or term of attendance, but at least half of
9 the minimum of such a full-time program, as defined by the [commissioner
10 pursuant to article thirteen] president, the award for such term of
11 study shall be one-half of the award that would otherwise have been
12 received for full-time study. The total period of study for which
13 payment may be made shall not exceed the equivalent of the maximum peri-
14 od authorized for that award. In the case of awards under subdivision
15 four of section six hundred sixty-seven, the base award shall be the
16 lesser of (i) one-half of the amount of the award provided for or (ii)
17 the amount of tuition, and the deduction shall be at one-half the rate
18 that would otherwise apply to full-time study.
19 3. Institutional certification, audit and payment procedure. a. Each
20 institution of post-secondary education shall certify to the corporation
21 that each student in attendance at that institution who has applied for
22 a general award or academic performance award under this article is
23 eligible for such award in accordance with all criteria established for
24 such award by statute and regulation. Such certification shall be made
25 on forms provided by the president within such time as required by the
26 president and shall state that, as of the date established by the insti-
27 tution in accordance with its refund policy and the regulations of the
28 [commissioner] president, the student (i) has incurred a full tuition
383 13001-04-9
1 liability for that term of attendance, (ii) was no longer eligible for a
2 refund upon withdrawal from study, (iii) was in full-time attendance and
3 (iv) satisfied all other eligibility requirements for such award. If any
4 student does not satisfy the necessary eligibility requirements on that
5 date, it shall be the responsibility of the institution to so state, to
6 specify whether such student was eligible prior to that date and the
7 amount of tuition liability incurred.
8 b. The comptroller shall audit institutional adherence to the stat-
9 utes, rules and regulations governing general and academic performance
10 awards and shall be responsible for determining the amount, if any, owed
11 to the state by an institution which amount represents overpayment to
12 the institution on a student’s behalf. The comptroller shall report
13 cases of suspected willful and knowing institutional violation of such
14 statutes, rules or regulations to the district attorney in the county in
15 which such institution is located.
16 c. (i) Payments under this article shall be made by the comptroller
17 upon the certificate of the president to or for the benefit of the
18 recipient of each award. Such certificate shall be given upon vouchers
19 or other evidence provided by the student and by the institution of
20 attendance showing that the person named therein is entitled to receive
21 the sum specified, either directly or for his benefit. Payments may be
22 made directly to the school attended by the person named in such certif-
23 icate, on behalf of and for the benefit of such person. The president
24 may establish such methods of payment, including prepayment, of awards
25 to students or to schools on behalf of students as may effect the order-
26 ly administration of the program as he may deem appropriate. Selection
27 of the method of payment shall be at the option of the institution,
28 provided, however, that the president may limit participation in such
384 13001-04-9
1 alternative methods of payment to schools fulfilling criteria estab-
2 lished by the president to assure the appropriate receipt and handling
3 of funds.
4 (ii) Notwithstanding any other provision of law, and in accordance
5 with rules adopted by the board for these purposes, the president may
6 suspend, limit or terminate an institution’s participation in the gener-
7 al, academic and other award programs administered by the corporation in
8 the event it shall be determined after a hearing conducted in accordance
9 with the state administrative procedure act that the institution has
10 violated any statute, rule or regulation applicable to such award
11 programs. If the president shall determine that immediate action is
12 necessary in order to prevent an unreasonable risk of substantial loss
13 of funds administered by the corporation, the president may, in accord-
14 ance with rules and regulations adopted by the board for this purpose,
15 withhold payments and prepayments of awards upon the initiation of the
16 suspension, limitation and termination proceeding as an emergency meas-
17 ure. Upon receipt of a report or other information indicating a
18 violation by an institution of any law or rule applicable to the award
19 programs affecting the eligibility of a substantial number of students
20 attending the institution and receiving awards, or indicating the insti-
21 tution may terminate its program prior to the completion of the term or
22 semester or may fail to repay refunds due, the president, in accordance
23 with rules adopted by the board for this purpose, may make payments and
24 prepayments to the institution in installments, in trust, or under such
25 other terms and conditions as the president may deem necessary to assure
26 such payments shall be expended consistent with statutory and regulatory
27 requirements or shall be available for application to the payment of
28 refunds due.
385 13001-04-9
1 (iii) During the initial year a school shall offer approved programs,
2 the president may make payments and prepayments to the school in
3 installments, in trust, or under such other terms and conditions as the
4 president may deem necessary to assure such payments shall be expended
5 consistent with statutory and regulatory requirements or shall be avail-
6 able for application to the payment of refunds due.
7 d. A registered business school shall submit to the president at such
8 time as the rules of the board may provide a statement of such school’s
9 financial operations and conditions as of the end of the school’s most
10 recent fiscal period prepared by an independent public auditor in
11 conformity with generally accepted auditing standards. Submission of
12 such a statement may be made a condition of further participation in the
13 awards program.
14 4. a. Student refunds. If a student receives payment as a result of
15 administrative error by the institution or the corporation or a false or
16 erroneous statement on his or her application or financial form, or any
17 other act of omission or commission on the part of the student, his or
18 her spouse, or his or her parents, such that the recipient would other-
19 wise have been considered by the president ineligible to receive such
20 payment, the recipient shall be required to refund the improper payment
21 to the state.
22 b. Institutional refunds. The president shall require institutions
23 to refund payment to the state, and the student shall not be required to
24 refund such payments, when (i) the president has determined that inade-
25 quate administrative procedures or practices of the institution resulted
26 in the incorrect certification of the eligibility of a program or
27 student, or (ii) the [commissioner] president has determined that the
28 institution failed to conduct an approved program [in accordance with
386 13001-04-9
1 the regulations of the commissioner in effect when such program was
2 conducted] as provided in section six hundred one of this title, or as
3 registered with the higher education services corporation pursuant to
4 regulations approved by the board of trustees.
5 c. The president shall be empowered to: (i) require such payment
6 immediately, (ii) accept a repayment schedule or installment payments
7 over a reasonable period of time, (iii) reduce any future award received
8 by such student by the amount of the refund due, or (iv) reduce any
9 future payments receivable by the institution on behalf of currently
10 eligible students by the amount of refund due with a direction to the
11 institution to consider each eligible student’s account to have been
12 credited with the amount of his award eligibility for that term of
13 attendance. The board of trustees shall promulgate regulations govern-
14 ing procedures for the assertion, appeal and recovery of a refund
15 claimed by the corporation against a student or an institution.
16 d. If the recipient or the institution, as the case may be, without
17 reasonable cause, fails to promptly comply with the president’s demand
18 for such refund, the attorney general of the state shall, upon request
19 of the president, bring suit to obtain such refund.
20 5. Payment for prior study. If the recipient of an award under
21 section six hundred five of this chapter, except subdivision four there-
22 of, has enrolled in an approved program during the academic year prior
23 to the normal effective date of such aid, his or her scholarship shall
24 become effective at the time he or she began his or her regular college
25 course and [he] the recipient shall be entitled to receive payment of
26 awards under such scholarship for such prior study.
27 6. Loss of good academic standing. a. If the recipient of an award
28 fails to maintain good academic standing as defined by the [commissioner
387 13001-04-9
1 pursuant to article thirteen of this chapter] president, which defi-
2 nition shall include direction to institutions to establish standards of
3 reasonable progress toward completion of the program in which a student
4 is enrolled, the president shall suspend further payments under the
5 award until and unless the student shall establish, to the satisfaction
6 of the [commissioner] president, promise of successful completion of the
7 program for which the award is made, and the president may revoke the
8 award if the recipient is not reinstated in good academic standing with-
9 in a reasonable time to be set by the [commissioner] president.
10 b. Notwithstanding any law, rule or regulation to the contrary,
11 department of education regulation 145-2.2 filed April twenty-eighth,
12 nineteen hundred eighty, shall apply only to students receiving aid
13 under this article for the first time during school year nineteen
14 hundred eighty-one--nineteen hundred eighty-two or thereafter, except
15 that such regulation shall not apply to students receiving aid under
16 section six hundred sixty-seven-a of this chapter.
17 7. Availability of academic performance awards. Except as provided
18 herein, payment of academic awards may be made for a period of seven
19 years beginning with the academic year in which payment is first avail-
20 able. In the event that a person entitled to such an award is engaged
21 in active service in the armed forces of the United States or active
22 service in the national welfare in a program such as the peace corps, an
23 extension of the seven year period equivalent to the period of such
24 active service but not in excess of three years may be granted upon
25 application to the corporation. A recipient who is ineligible for
26 payment of an award in the first academic year of eligibility due to
27 attendance in an ineligible out of state school shall not be thereafter
28 eligible for any other payments of such award. Recipients of an award
388 13001-04-9
1 which may be rewarded who are temporarily unable to avail themselves of
2 the benefits of the award due to illness or other cause established by
3 the [board of regents] president prior to receipt and utilization of the
4 first payment of such award, may apply for a temporary leave of absence
5 pursuant to the regulations of the corporation. The provisions of this
6 subdivision shall not be considered to increase or in any way alter the
7 number, amount or methods of payments made under an academic performance
8 award.
9 § 24. Section 665-a of the education law, as added by chapter 680 of
10 the laws of 1986, subdivision 1 as amended by chapter 681 of the laws of
11 1986, is amended to read as follows:
12 § 665-a. Institutional participation in award programs. 1. Partic-
13 ipation agreement. No institution may participate in the general,
14 academic or other award programs described in this article unless it
15 shall have entered into a written agreement with the corporation under
16 which it shall be bound to comply with all laws and rules applicable to
17 such programs. The participation agreement may contain such other terms
18 and conditions, consistent with such applicable laws, rules and proce-
19 dures, as the president may require in accordance with rules adopted for
20 this purpose by the board [and shall be developed in consultation with
21 the commissioner of education]. In accordance with rules adopted by the
22 board for this purpose, the president, may suspend, limit or terminate
23 an institution’s participation in these programs in the event it shall
24 be determined after a hearing conducted in accordance with the state
25 administrative procedure act that the institution has violated any
26 applicable laws, rules or procedures provided for under the agreement in
27 accordance with law and the rules of the board.
389 13001-04-9
1 2. Reports. In accordance with rules adopted by the board for this
2 purpose, the president may require an institution participating in the
3 general, academic and other award programs to certify on such forms as
4 the president may prescribe at the commencement of its semester, term or
5 other period of attendance, or at such other times as the president may
6 direct, the manner in which the records are being maintained to demon-
7 strate the eligibility of the students the institution certifies as
8 eligible for the receipt of awards under the provisions of subdivision
9 three of section six hundred sixty-five of this article during such
10 semester, term or period of attendance. The president may suspend,
11 limit or terminate an institution’s participation in the general,
12 academic and other award programs administered by the corporation in the
13 event it shall be determined after a hearing conducted in accordance
14 with the state administrative procedure act that the institution has
15 failed or refused to submit such certified report after written demand
16 therefor, or shall have willfully submitted a materially false report.
17 § 25. Section 666 of the education law, as added by chapter 110 of
18 the laws of 1984, subdivisions 1, 2 and 4 as amended by chapter 947 of
19 the laws of 1990, subdivision 3 as amended by chapter 286 of the laws of
20 1986 and subdivisions 8 and 9 as amended by chapter 284 of the laws of
21 1986, is amended to read as follows:
22 § 666. Tuition awards for part-time undergraduate students. 1. Defi-
23 nition. For the purposes of this section (a) "part-time student" means
24 a student enrolled for at least three but less than twelve semester
25 hours, or the equivalent, per semester or at least four but less than
26 eight semester hours per quarter in an approved undergraduate degree or
27 registered certificate program in a degree-granting institution, and (b)
390 13001-04-9
1 "income" means that amount determined in accordance with subdivisions
2 one and two of section six hundred sixty-three of this article.
3 2. Eligible students. Tuition awards may be made to students, who
4 comply with the requirements provided in subdivisions three, five and
5 six of section six hundred sixty-one of this article, and (i) are also
6 part-time students matriculated in approved undergraduate degree
7 programs or enrolled and accepted into registered certificate programs
8 and (ii) if eligible to claim dependents or to be claimed as dependents
9 under the tax law, whose incomes do not exceed fifty thousand five
10 hundred fifty dollars or if ineligible whose incomes do not exceed thir-
11 ty-four thousand two hundred fifty dollars. The continuation of eligi-
12 bility for a tuition award shall require the retention of good academic
13 standing, as defined by the [commissioner pursuant to article thirteen
14 of this chapter] president. Prior to the approval of any additional
15 award pursuant to this section, participating institutions shall review
16 the academic standing of all recipients of awards pursuant to this
17 section.
18 3. Participating institutions. Institutions which offer undergraduate
19 degrees and participate in the tuition assistance program are eligible
20 to participate in the tuition award for part-time students program,
21 pursuant to this section provided, however, that the tuition for the
22 program in which a student is enrolled totals at least one hundred
23 dollars a year. Eligible institutions shall apply to the corporation to
24 participate in such program on applications postmarked on or before the
25 fifteenth day of June, such applications having been postmarked by the
26 corporation to all eligible institutions on or before the fifteenth day
27 of May. The [department] eligible institutions shall provide [the]
28 enrollment data upon which the institutional allocation of funds will be
391 13001-04-9
1 based [to the corporation on or before the first day of May] with the
2 application for participation. The corporation shall notify participat-
3 ing institutions of the institutional allocation of funds on or before
4 the fifteenth day of July. Notwithstanding the manner and extent in
5 which allocations of funds for awards are made under this subdivision to
6 institutions which form a part of the state university of New York or
7 the city university of New York, the chancellor of either such universi-
8 ty may reallocate and distribute any unexpended portion of the allo-
9 cation of an institution of such university to any other institution of
10 such university to which an allocation is made hereunder. Notwithstand-
11 ing the manner and extent in which allocations of funds for awards are
12 made under this subdivision to independent institutions of higher educa-
13 tion, the president may reallocate and distribute any unexpended portion
14 of the allocation of such an institution to any other such institution
15 to which an allocation is made hereunder. Written notice of such real-
16 location and distribution shall be given to the corporation by such
17 chancellor [or commissioner] in accordance with the rules of the board.
18 4. Selection of recipients. Participating institutions shall select
19 recipients of tuition awards for part-time students from [amoung elibi-
20 ble] among eligible students. Participating institutions shall consider
21 those eligible students who demonstrate the greatest amount of financial
22 need remaining after all available grants have been applied to educa-
23 tional costs and shall give preference, where possible, to students who
24 would be otherwise unable to attempt or continue post secondary educa-
25 tion. The total number of recipients and the amount of awards shall be
26 limited by the institutional allocation of funds pursuant to subdivision
27 eight of this section. The institution shall select recipients within
28 forty-five days after the date fixed by the institution for students to
392 13001-04-9
1 add or drop courses in the semester, quarter or term for which the award
2 is made and each recipient shall be notified in writing of the award,
3 its amount, that it is effected by a waiver of tuition by the institu-
4 tion in such amount, and that the award is counted toward the maximum
5 term of eligibility under the tuition assistance program. In the event
6 a recipient is determined to be ineligible for an award after such
7 notification is given, the institution shall advise the recipient in
8 writing thereof, and that its selection of such recipient and its waiver
9 of tuition is a nullity. If the determination of [ineligiblility] inel-
10 igibility is made prior to the date the institution submits its report
11 of recipients to the corporation, a replacement recipient may be
12 selected, notified and reported.
13 5. Amount of award. The annual award shall be for an amount up to two
14 thousand dollars or tuition, whichever is less. The amount of the award
15 shall be determined by the participating institution. Such institution
16 shall waive the tuition for such eligible student in the amount of such
17 award.
18 6. Limitation of amount. In no event shall the award for any year
19 exceed the amount by which the tuition, exclusive of educational fees,
20 payable by the student exceeds the total of all other state, federal or
21 other educational aid which the [commissioner] president has identified
22 by regulation as duplicative of the purposes of tuition awards pursuant
23 to this section. For the purposes of this subdivision, neither United
24 States war orphans educational benefits nor benefits under the veterans'
25 readjustment act of nineteen hundred sixty-six shall be considered as
26 federal or other educational aid.
27 7. Duration. A recipient shall be eligible for a period not to exceed
28 eight years of part-time undergraduate study or, if the undergraduate
393 13001-04-9
1 program normally requires five academic years of full-time study, for a
2 period not to exceed ten years of part-time undergraduate study. Recip-
3 ients enrolled in a program of remedial study conforming to the
4 provisions of [this article, approved by the commissioner] section
5 sixty-four hundred fifty-one or sixty-four hundred fifty-two of this
6 chapter in a degree granting institution, and intended to culminate in
7 an undergraduate degree shall be considered as enrolled in a program
8 normally requiring five years. Any semester, quarter or term of attend-
9 ance during which a student receives an award pursuant to this section
10 shall be counted as one-half of a semester, quarter or term, as the case
11 may be, toward the maximum term of eligibility for tuition assistance
12 program awards pursuant to section six hundred sixty-seven of this chap-
13 ter. The period of eligibility shall be proportionately reduced for
14 each semester, quarter or term of attendance during which a student
15 receives an award pursuant to section six hundred sixty-seven of this
16 article.
17 8. Institutional allocation of funds. The total amount of funds for
18 awards at a participating institution for an academic year shall be that
19 amount determined by multiplying the annual total appropriation for this
20 program by a ratio whose numerator shall be the undergraduate part-time
21 degree program enrollment at the institution during the preceding
22 academic year and whose denominator shall be the aggregate of such
23 enrollment at all participating institutions in such academic year.
24 9. Institutional reports and reimbursements. One week after the final
25 date recipients may be selected, each participating institution shall
26 report to the corporation the following: (i) the eligible students who
27 received an award pursuant to this section and their incomes; and (ii)
28 the amount of each such award. Within forty-five days of the conclusion
394 13001-04-9
1 of each term or semester during which the awards are made pursuant to
2 this section, each participating institution shall certify to the corpo-
3 ration whether or not each student reported received a cumulative pass-
4 ing average for the semester hours undertaken pursuant to such award.
5 The corporation shall reimburse the participating institution for each
6 award made by such institution on behalf of an eligible student
7 provided, however, that if, during any term or semester, the value of
8 the awards conferred by the institution to students who fail to maintain
9 a cumulative passing average exceeds ten percent of the total value of
10 all the awards conferred by the institution, the institution shall not
11 be reimbursed for the value of those awards made to students who fail to
12 maintain a cumulative passing average which is in excess of ten percent
13 of the total value of all the awards conferred by the institution during
14 that term or semester. A recipient of such award shall not be liable
15 for tuition waived in the amount of the award for semester hours under-
16 taken pursuant to such award for which he or she did not receive a cumu-
17 lative passing average. The president may make prepayments to insti-
18 tutions of their allocations of funds in accordance with the provisions
19 of paragraph c of subdivision three of section six hundred sixty-five of
20 this article, and the president may require institutional refunds in
21 accordance with the provisions of paragraph c of subdivision four of
22 section six hundred sixty-five of this article.
23 10. Annually prior to the first day of [November] January the corpo-
24 ration shall prepare a report to the [board of regents] governor and the
25 legislature which shall contain an evaluation concerning the adminis-
26 tration of the tuition award program for part-time undergraduate
27 students and an analysis of the information reported pursuant to subdi-
28 vision nine of this section [. The board of regents shall then prepare a
395 13001-04-9
1 report to the governor and the legislature making] and make appropriate
2 recommendations [annually prior to the first day of January] for the
3 program.
4 11. The state comptroller shall audit the tuition award program for
5 part-time undergraduate students for the period commencing July first,
6 nineteen hundred eight-four and ending June thirtieth, nineteen hundred
7 eighty-five and shall make a report, not later than October first, nine-
8 teen hundred eighty-five, relating thereto to the governor, the tempo-
9 rary president of the senate and the speaker of the assembly.
10 § 26. Subdivision 1 of section 667 of the education law, as added by
11 chapter 83 of the laws of 1995, is amended to read as follows:
12 1. Recipient qualifications. Tuition assistance program awards are
13 available for all students who are enrolled in approved programs and who
14 demonstrate the ability to complete such courses, in accordance with
15 standards established by the [commissioner] president provided, however,
16 that no award shall be made unless tuition (exclusive of educational
17 fees) and, if applicable, the college fee levied by the state university
18 of New York pursuant to the April first, nineteen hundred sixty-four
19 financing agreements with the New York state dormitory authority charged
20 for the program in which the student is enrolled total at least two
21 hundred dollars a year, and provided further that, no award can exceed
22 ninety percent of the amount of tuition charged.
23 § 27. Subdivision 2 of section 667 of the education law, as added by
24 chapter 83 of the laws of 1995, is amended to read as follows:
25 2. Duration. No undergraduate shall be eligible for more than four
26 academic years of study, or five academic years if the program of study
27 normally requires five years. Students enrolled in a program of remedi-
28 al study[, approved by the commissioner] conforming to the provisions of
396 13001-04-9
1 section sixty-four hundred fifty-one or sixty-four hundred fifty-two of
2 this chapter in an institution of higher education and intended to
3 culminate in a degree in undergraduate study shall, for purposes of this
4 section, be considered as enrolled in a program of study normally
5 requiring five years. An undergraduate student enrolled in an eligible
6 two year program of study approved by the commissioner shall be eligible
7 for no more than three academic years of study. No graduate student
8 shall be eligible for more than four academic years of study provided,
9 however, that no graduate student shall be eligible for more than one
10 degree program at the master’s, first professional or doctorate level.
11 No student shall be eligible for a total of more than the equivalent of
12 eight years of combined undergraduate and graduate study. Any semester,
13 quarter, or term of attendance during which a student receives any award
14 under this article, after the effective date of the former scholar
15 incentive program and prior to academic year nineteen hundred eighty-
16 nine--nineteen hundred ninety, shall be counted toward the maximum term
17 of eligibility for tuition assistance under this section, except that
18 any semester, quarter or term of attendance during which a student
19 received an award pursuant to section six hundred sixty-six of this
20 article shall be counted as one-half of a semester, quarter or term, as
21 the case may be, toward the maximum term of eligibility under this
22 section. Any semester, quarter or term of attendance during which a
23 student received an award pursuant to section six hundred sixty-seven-a
24 of this article shall not be counted toward the maximum term of eligi-
25 bility under this section.
26 § 28. Subparagraph (ii) of paragraph d of subdivision 3 of section
27 667 of the education law, as added by chapter 83 of the laws of 1995, is
28 amended to read as follows:
397 13001-04-9
1 (ii) exceed the amount by which such annual tuition (exclusive of
2 educational fees) and, if applicable, the college fee levied by the
3 state university of New York pursuant to the April first, nineteen
4 hundred sixty-four financing agreement with the New York state dormitory
5 authority exceed the total of all other state, federal, or other educa-
6 tional aid that is received or receivable by such student during the
7 school year for which such award is applicable and that, in the judgment
8 of the [commissioner] president, would duplicate the purposes of the
9 award; or
10 § 29. Subparagraph (iii) of paragraph d of subdivision 3 of section
11 667 of the education law, as added by chapter 83 of the laws of 1995, is
12 amended to read as follows:
13 (iii) be made when income exceeds the maximum income set forth in this
14 subdivision. The [commissioner] president, with the approval of the
15 board, shall list in his or her regulations all major state and federal
16 financial aid available to New York state students and identify any
17 forms of aid that are duplicative of the purposes of the tuition assist-
18 ance program. For the purposes of this subdivision, neither United
19 States war orphan educational benefits nor benefits under the veterans'
20 readjustment act of nineteen hundred sixty-six shall be considered as
21 federal or other educational aid.
22 § 30. Subdivision 4 of section 668 of the education law, as added by
23 chapter 942 of the laws of 1974, is amended to read as follows:
24 4. Amount and duration. Every recipient shall receive an annual award
25 of four hundred fifty dollars for each of not more than four academic
26 years, or five academic years if the recipient is enrolled in a program
27 normally requiring five years, as defined [by the commissioner,] pursu-
28 ant to article thirteen.
398 13001-04-9
1 § 31. Subdivision 2 of section 668-a of the education law, as added
2 by chapter 887 of the laws of 1981, is amended to read as follows:
3 2. Amount and duration. Every recipient shall receive an annual award
4 of four hundred fifty dollars for each of not more than four academic
5 years of undergraduate study or five academic years if a program normal-
6 ly requires five years, as defined [by the commissioner] pursuant to
7 article thirteen of this chapter.
8 § 32. Subdivision 2 of section 668-b of the education law, as added
9 by chapter 349 of the laws of 1989, is amended to read as follows:
10 2. Awards under this section shall be payable for each of not more
11 than four academic years of undergraduate study or five academic years
12 if a program normally requires five years, as defined [by the commis-
13 sioner] pursuant to article thirteen of this chapter.
14 § 33. Subdivision 2 of section 669 of the education law, as added by
15 chapter 942 of the laws of 1974, is amended to read as follows:
16 2. Amount and duration. The award shall not exceed the sum of
17 tuition, educational fees, room and board charged by the state universi-
18 ty of New York nor shall it be for more than four academic years of
19 undergraduate study or five academic years if a program of study normal-
20 ly requires five years, as defined [by the commissioner] pursuant to
21 article thirteen.
22 § 34. Paragraph d of subdivision 1 of section 669-a of the education
23 law, as separately amended by chapters 230 and 603 of the laws of 1996,
24 is amended to read as follows:
25 d. "Approved vocational training programs" means programs offered by
26 agencies approved by the [commissioner] president for funding pursuant
27 to this section. The [commissioner] president shall approve only such
28 non-credit programs which are at least three hundred twenty clock hours
399 13001-04-9
1 in length, and which meet standards of instructional quality established
2 in regulations by the [commissioner] president. These standards shall
3 include, but not be limited to, qualifications of administrative and
4 instructional personnel, quality of facilities and equipment, record
5 keeping, admission, grading, attendance, and record of placement of
6 completers which meets standards of acceptability as established by the
7 [commissioner] president.
8 § 35. Subdivision 3 of section 669-a of the education law, as sepa-
9 rately amended by chapters 230 and 603 of the laws of 1996, is amended
10 to read as follows:
11 3. a. No recipient shall receive awards for more than eight semesters
12 of full time undergraduate study, or the equivalent of four academic
13 years, or, if an undergraduate program normally requires five academic
14 years of full time study, for more than ten semesters of full time
15 study, or the equivalent of five academic years. Recipients enrolled in
16 a program of remedial study conforming to the provisions of [this arti-
17 cle, approved by the commissioner] section sixty-four hundred fifty-one
18 or sixty-four hundred fifty-two of this chapter in a degree granting
19 institution, and intended to culminate in an undergraduate degree shall
20 be considered as enrolled in a program normally requiring five years.
21 No recipient enrolled in an approved vocational training program shall
22 receive awards for more than four semesters of full-time study or the
23 equivalent of two academic years of full-time study.
24 b. No recipient shall receive awards for more than sixteen semesters
25 of part time undergraduate study as defined in subdivision one, or the
26 equivalent of eight academic years of part time study, or, if an under-
27 graduate program normally requires five academic years of full time
28 study, for more than twenty semesters of part time study, or the equiv-
400 13001-04-9
1 alent of ten academic years. Recipients enrolled in a program of reme-
2 dial study conforming to the provisions of section sixty-four hundred
3 fifty-one or sixty-four hundred fifty-two of this chapter, [approved by
4 the commissioner] in a degree granting institution, and intended to
5 culminate in an undergraduate degree shall be considered as enrolled in
6 a program normally requiring five years. No recipient enrolled in an
7 approved vocational training program shall receive awards for more than
8 eight semesters of part-time study or the equivalent of four academic
9 years of part-time study.
10 § 36. Subdivisions 1 and 2 of section 670 of the education law, subdi-
11 vision 1 as amended by chapter 366 of the laws of 1979 and subdivision 2
12 as amended by chapter 591 of the laws of 1985, are amended to read as
13 follows:
14 1. Number and certification. Twenty-five thousand regents college
15 scholarships shall be awarded each year. Such scholarships shall be
16 allocated as provided in article thirteen to eligible students as certi-
17 fied [to] by the president [by the commissioner].
18 2. Duration. Each scholarship recipient shall receive an annual
19 award for each of not more than four academic years of undergraduate
20 study, or five academic years if a program of study normally requires
21 five years as defined [by the commissioner] pursuant to article thir-
22 teen; provided, however, for the purposes of this section a student who
23 is in his or her last term of eligibility and who need not take twelve
24 or more credits or the equivalent thereof to complete the prescribed
25 course of study of the institution such student is attending shall
26 remain eligible for such award.
27 § 37. Subdivisions 1 and 2 of section 670-a of the education law, as
28 added by chapter 56 of the laws of 1986, are amended to read as follows:
401 13001-04-9
1 1. Number and certification. One thousand empire state scholarships
2 of excellence shall be awarded each year. Such scholarships shall be
3 allocated as provided in article thirteen of this chapter to eligible
4 students certified [to] by the president [by the commissioner].
5 2. Duration. A scholarship shall entitle the recipient to an annual
6 award for not more than four academic years of undergraduate study, or
7 five academic years if the program of study normally requires five years
8 as defined [by the commissioner] pursuant to article thirteen of this
9 chapter.
10 § 38. Section 670-b of the education law, as amended by section 83 of
11 part C of chapter 58 of the laws of 1998, is amended to read as follows:
12 § 670-b. Scholarships for academic excellence. 1. Number and certif-
13 ication. Five thousand scholarships shall be awarded in the nineteen
14 hundred ninety-seven--ninety-eight academic year, and eight thousand
15 scholarships shall be awarded in the nineteen hundred ninety-eight--ni-
16 nety-nine academic year and thereafter. Such scholarships shall be allo-
17 cated as provided in article thirteen of this chapter to eligible
18 students certified [to the president] by the [commissioner] president.
19 2. Duration. A scholarship shall entitle the recipient to an annual
20 award for not more than four academic years of undergraduate study, or
21 five academic years, if the program of study normally requires five
22 years as defined [by the commissioner] pursuant to article thirteen of
23 this chapter.
24 3. Amount. a. (i) For the nineteen hundred ninety-seven--ninety-eight
25 academic year, there shall be two thousand scholarships in the amount of
26 one thousand dollars each and there shall be three thousand scholarships
27 in the amount of five hundred dollars each.
402 13001-04-9
1 (ii) For the nineteen hundred ninety-eight--ninety-nine academic year
2 and thereafter, there shall be two thousand scholarships in the amount
3 of one thousand five hundred dollars each and there shall be six thou-
4 sand scholarships in the amount of five hundred dollars each.
5 (iii) Notwithstanding any inconsistent provision of law, students
6 awarded one thousand dollar scholarships in the nineteen hundred nine-
7 ty-seven--ninety-eight academic year shall be entitled in the nineteen
8 hundred ninety-eight--ninety-nine academic year and thereafter to an
9 annual award of one thousand five hundred dollars.
10 b. In no event shall the amount of the annual award exceed the recipi-
11 ent’s cost of attendance at the institution attended. Cost of attend-
12 ance shall mean tuition, required fees, laboratory and other instruc-
13 tion related expenses, books, transportation, room and board. Anything
14 in this article to the contrary notwithstanding, a recipient of a schol-
15 arship may concurrently receive with such award any other academic or
16 general award for which he or she may be eligible provided however in no
17 event shall a recipient be awarded a scholarship in any amount where the
18 combination of all such awards would exceed the recipient’s cost of
19 attendance at the institution.
20 § 39. Subdivisions 1 and 2 of section 671 of the education law, as
21 added by chapter 942 of the laws of 1974, are amended to read as
22 follows:
23 1. Number and certification. Eight hundred regents professional
24 education in nursing scholarships shall be awarded each year. Such
25 scholarships shall be allocated as provided in article thirteen to
26 eligible students as certified [to] by the president [by the commission-
27 er].
403 13001-04-9
1 2. Duration. Each such scholarship shall entitle the recipient to an
2 annual award for each year while enrolled in an approved course of study
3 leading to registration as a professional nurse, but not exceeding the
4 normal period of study required to complete the requirements for the
5 program, as such approved courses and normal periods of study are
6 defined [by the commissioner] pursuant to article thirteen.
7 § 40. Subdivisions 1 and 2 of section 672 of the education law, as
8 added by chapter 942 of the laws of 1974, are amended to read as
9 follows:
10 1. Number and certification. One hundred regents professional educa-
11 tion in medicine or dentistry scholarships shall be awarded each year.
12 Such scholarships shall be allocated as provided in article thirteen to
13 eligible students as certified [to] by the president [by the commission-
14 er].
15 2. Duration. Such scholarship shall entitle the recipient to an
16 award for not more than four academic years while matriculated in an
17 approved program, as defined [by the commissioner] pursuant to article
18 thirteen.
19 § 41. Subdivisions 1 and 2 of section 672-a of the education law, as
20 added by chapter 294 of the laws of 1977, are amended to read as
21 follows:
22 1. Number and certification. Five regents professional education in
23 optometry scholarships shall be awarded each year. Such scholarships
24 shall be allocated as provided in article thirteen to eligible students
25 as certified [to] by the president [by the commissioner].
26 2. Duration. Such scholarship shall entitle the recipient to an award
27 for not more than four academic years while matriculated in an approved
28 program, as defined [by the commissioner] pursuant to article thirteen.
404 13001-04-9
1 § 42. Subdivisions 1 and 2 of section 672-b of the education law, as
2 added by chapter 708 of the laws of 1980, are amended to read as
3 follows:
4 1. Number and certification. Ten regents professional education in
5 veterinary medicine scholarships shall be awarded each year. Such scho-
6 larships shall be allocated as provided in article thirteen to eligible
7 students as certified [to] by the president [by the commissioner].
8 2. Duration. Such scholarship shall entitle the recipient to an
9 award for not more than four academic years while matriculated in an
10 approved program, as defined [by the commissioner] pursuant to article
11 thirteen.
12 § 43. Subdivisions 1 and 2 of section 673 of the education law,
13 subdivision 1 as amended by chapter 844 of the laws of 1975, subdivision
14 2 as added by chapter 942 of the laws of 1974, are amended to read as
15 follows:
16 1. Number and certification. At least thirty percent of the total
17 scholarships awarded each year under the provisions of section six
18 hundred seventy-two shall be awarded to eligible students certified [to]
19 by the president [by the commissioner].
20 2. Duration. Each such scholarship shall entitle the recipient to an
21 award for not more than four academic years while matriculated in an
22 approved program, as defined [by the commissioner] pursuant to article
23 thirteen.
24 § 44. Subdivision 1 of section 674 of the education law, as amended
25 by chapter 645 of the laws of 1975, is amended to read as follows:
26 1. Number and certification. Six hundred regents veterans with war
27 service scholarships shall be awarded for study beginning with the
28 college year nineteen hundred seventy-five--nineteen hundred seventy-
405 13001-04-9
1 six, to eligible students certified [to] by the president [by the
2 commissioner].
3 § 45. Subdivisions 1 and 2 of section 676 of the education law, as
4 amended by chapter 53 of the laws of 1985, are amended to read as
5 follows:
6 1. Number and certification. Two hundred full-time academic study
7 fellowships and two hundred part-time academic study fellowships shall
8 be awarded each year. All such fellowships shall be awarded to eligible
9 students certified [to] by the president [by the commissioner] pursuant
10 to article thirteen of this chapter.
11 2. Duration. Each fellowship award pursuant to paragraph b or c of
12 subdivision eight of section six hundred five of this chapter shall
13 entitle the recipient to an award for one academic year of full-time
14 study while matriculated in an approved graduate program, as defined [by
15 the commissioner] pursuant to article thirteen of this chapter. Each
16 fellowship awarded pursuant to paragraph d of subdivision eight of
17 section six hundred five of this chapter shall entitle the recipient to
18 an award for not more than two academic years of part-time study while
19 matriculated in any approved graduate program, as defined [by the
20 commissioner] pursuant to article thirteen of this chapter. No recipi-
21 ent shall receive an award subsequent to completion of an approved grad-
22 uate program leading to permanent certification as a teacher in the
23 field or fields for which the fellowship was awarded.
24 § 46. Subdivision 1 and paragraph a of subdivision 3 of section 677
25 of the education law, subdivision 1 as amended by chapter 439 of the
26 laws of 1988 and paragraph a of subdivision 3 as added by chapter 31 of
27 the laws of 1985, are amended to read as follows:
406 13001-04-9
1 1. Number and certification. Eighty regents physician loan forgive-
2 ness awards shall be awarded each year. Such awards shall be allocated
3 as provided in article thirteen of this chapter to eligible physicians
4 as certified [to] by the president [by the commissioner].
5 a. Annual award disbursements shall be the responsibility of the
6 president and shall occur prior to the beginning of each of the required
7 terms of service as specified in the service contract. The board of
8 trustees of the higher education services corporation shall adopt rules
9 and regulations regarding criteria for determining successful completion
10 of the service contract and any appeal process that may be required to
11 implement this paragraph upon recommendation of the president [in
12 consultation with the commissioner].
13 § 47. Subdivisions 1 and 2 of section 678 of the education law,
14 subdivision 1 as amended by chapter 439 of the laws of 1988, subdivision
15 2 as amended by chapter 285 of the laws of 1986, are amended to read as
16 follows:
17 1. Number and certification. One hundred regents health career
18 professional opportunity scholarships shall be awarded each year. Such
19 scholarships shall be allocated as provided in article thirteen of this
20 chapter to eligible students as certified [to] by the president [by the
21 commissioner].
22 2. Duration. Such scholarship shall entitle the recipient to an
23 award for not more than four academic years while matriculated in an
24 approved program, as defined [by the commissioner] pursuant to article
25 thirteen of this chapter.
26 § 48. Subdivision 1 of section 679 of the education law, as amended
27 by chapter 439 of the laws of 1988, is amended to read as follows:
407 13001-04-9
1 1. Number and certification. Two hundred twenty regents professional
2 opportunity scholarships shall be awarded each year. Such scholarships
3 shall be allocated as provided in article thirteen of this chapter to
4 eligible students as certified [to] by the president [by the commission-
5 er].
6 § 49. Subdivisions 3 and 4 of section 6206 of the education law are
7 REPEALED and subdivisions 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 are
8 renumbered subdivisions 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12.
9 § 49-a. Subdivision 1 of section 6209 of the education law, as amended
10 by chapter 317 of the laws of 1980, is amended to read as follows:
11 1. It is hereby found and declared that obligations of the dormitory
12 authority of the state of New York are reasonable, prudent, proper and
13 legal investments in which all gifts, grants, bequests, devises, trusts,
14 money, endowments, fees, and other income not derived from public taxa-
15 tion or the public credit, received and administered or to be received
16 and administered by the board of trustees or any of its educational
17 units for college or university purposes in connection with the units
18 under the control of the board of trustees pursuant to subdivision [six]
19 four of section sixty-two hundred six of this article may be invested or
20 may be pledged, hypothecated or delivered as collateral to secure in
21 whole or in part the payment of principal or interest of any obligation
22 of the dormitory authority of the state of New York by the board of
23 trustees or any officer, employee or fiduciary thereof upon such terms
24 and conditions as may be acceptable to the board of trustees. It is
25 hereby found and declared that obligations of the dormitory authority of
26 the state of New York are reasonable, prudent, proper and legal invest-
27 ments in which funds presently in existence or hereafter created or
28 established or other moneys administered by any alumni corporation or
408 13001-04-9
1 college fund organized pursuant to the not-for-profit corporation law or
2 this chapter to encourage the educational mission or assist any educa-
3 tional unit of the city university may be invested or may be pledged,
4 hypothecated or delivered as collateral to secure in whole or in part
5 the payment of principal or interest of any obligation of the dormitory
6 authority of the state of New York by such corporation or fund or any
7 officer, trustee, director, employee or fiduciary thereof upon such
8 terms and conditions as may be acceptable to such corporation, person or
9 persons. For the purpose of this section, such gifts, grants, bequests,
10 devises, trusts, money, endowments, fees, funds, and other income shall
11 be referred to as endowment funds.
12 § 50. Paragraph 3 of subdivision a of section 6226 of the education
13 law is REPEALED and paragraph 4 is renumbered paragraph 3.
14 § 51. Subdivision 1 of section 6229 of the education law, as added by
15 chapter 305 of the laws of 1979, is amended to read as follows:
16 1. For the purposes of this section and section sixty-two hundred
17 twenty-one of this article, the term "approved programs and services"
18 shall mean and include all programs and services provided by the commu-
19 nity colleges, except for campus schools or other elementary or second-
20 ary schools which receive state aid under other provisions of law[,
21 provided that all such programs have been approved as a part of the
22 master plan of the city university and as a part of the regents plan for
23 higher education or general revision thereof pursuant to section two
24 hundred thirty-seven of this chapter].
25 § 52. Subdivision 1 of section 6230 of the education law, as amended
26 by chapter 607 of the laws of 1991, is amended to read as follows:
27 1. For the purposes of this section and section sixty-two hundred
28 twenty-one of this article, the term "approved programs and services"
409 13001-04-9
1 shall mean and include all programs and services provided by the senior
2 colleges excluding campus schools or other elementary or secondary
3 schools which receive state aid under other provisions of law and also
4 excluding all unfunded accrued liability payments, revised unfunded
5 accrued liability payments (as defined in subdivision seven of section
6 sixty-two hundred two of this article), installments of nineteen hundred
7 eighty unfunded accrued liability adjustment (as defined in subdivision
8 eight of such section sixty-two hundred two), installments of nineteen
9 hundred eighty-two unfunded accrued liability adjustment (as defined in
10 subdivision eight-a of such section sixty-two hundred two), installments
11 of NYCERS nineteen hundred eighty-five unfunded accrued liability
12 adjustment attributable to the senior colleges (as defined in subdivi-
13 sion eight-b of such section sixty-two hundred two), installments of
14 NYCTRS nineteen hundred eighty-five unfunded accrued liability adjust-
15 ment (as defined in subdivision eight-c of such section sixty-two
16 hundred two), installments of NYCTRS nineteen hundred eighty-six
17 unfunded accrued liability adjustment (as defined in subdivision eight-d
18 of such section sixty-two hundred two), installments of New York city
19 employees' retirement system nineteen hundred eighty-eight unfunded
20 accrued liability adjustment attributable to the senior colleges (as
21 defined in subdivision eight-e of such section sixty-two hundred two),
22 installments of New York city teachers' retirement system nineteen
23 hundred eighty-eight unfunded accrued liability adjustment attributable
24 to the senior colleges (as defined in subdivision eight-f of such
25 section sixty-two hundred two), installments of any NYCERS post-June
26 thirtieth, nineteen hundred ninety unfunded accrued liability adjustment
27 attributable to the senior colleges (as defined in subdivision eight-g
28 of such section sixty-two hundred two), installments of any NYCTRS post-
410 13001-04-9
1 June thirtieth, nineteen hundred ninety unfunded accrued liability
2 adjustment attributable to the senior colleges (as defined in subdivi-
3 sion eight-h of such section sixty-two hundred two), contributions for
4 twenty-year amortization of nineteen hundred ninety senior college
5 consolidated UAL and senior college remainder of BSL (as defined in
6 subdivision eight-o of section sixty-two hundred two of this article)
7 and balance sheet liability contributions (as defined in subdivision
8 nine of such section sixty-two hundred two) required to be made pursuant
9 to chapters nine hundred seventy-five, nine hundred seventy-six and nine
10 hundred seventy-seven of the laws of nineteen hundred seventy-seven or
11 the provisions of law referred to in such subdivisions with respect to
12 pension contributions[, provided that all such programs have been
13 approved as a part of the master plan of the city university and as a
14 part of the regents plan for higher education or general revision there-
15 of pursuant to section two hundred thirty-seven of this chapter].
16 § 53. The opening paragraph of subdivision 1 and subdivisions 2 and 3
17 of section 6302 of the education law, as amended by chapter 552 of the
18 laws of 1984, subdivision 2 as amended by chapter 295 of the laws of
19 1995, are amended to read as follows:
20 Any local sponsor, other than a community college region, acting
21 through its local legislative body or board, or other appropriate
22 governing agency, which in the case of the city of New York acting as a
23 local sponsor shall be the major of that city, may by local law, resol-
24 ution, order or ordinance, and pursuant to [the master plan,] standards
25 and regulations prescribed by the state university trustees and with the
26 approval of said trustees:
27 2. Pursuant to section sixty-three hundred ten of this article, any
28 eligible county, city or school district acting through its local legis-
411 13001-04-9
1 lative body or board, may by local law or resolution, and pursuant to
2 [the master plan,] standards and regulations prescribed by the state
3 university trustees, and with the approval of said trustees, combine
4 with one or more contiguous counties, cities or school districts, or any
5 combination thereof, to constitute a community college region for the
6 purpose of operating, as local sponsor, an existing community college
7 which is currently sponsored by a city or school district other than a
8 school district located in a city with a population of one million or
9 more.
10 3. In the city of New York, the board of education, with the approval
11 of state university trustees, may act as a local sponsor in the estab-
12 lishment and operation, as a community college, of a post secondary
13 technical vocational training institution which is partly supported by
14 such board of education and partly supported by an educational founda-
15 tion for an industry chartered by the board of regents. In addition to
16 the community college programs and curricula authorized by this article,
17 the institution may offer such baccalaureate, masters degree programs
18 and curricula in support of its mission, in accordance with standards
19 and regulations prescribed by the state university trustees[, as may be
20 authorized pursuant to the provisions of the master plan]. Notwith-
21 standing any other provision of law, the institution shall be financed
22 and administered in the manner provided for community colleges.
23 § 54. The opening paragraph of subdivision 1 of section 6304 of the
24 education law, as amended by chapter 552 of the laws of 1984, is amended
25 to read as follows:
26 The [master plan,] standards and regulations prescribed by the state
27 university trustees shall include provisions for financing the capital
28 costs and operating costs of such colleges in the following manner:
412 13001-04-9
1 § 55. Subdivisions 1, 4 and 6 of section 6451 of the education law,
2 subdivisions 1 and 4 as amended by chapter 917 of the laws of 1970 and
3 subdivision 6 as amended by chapter 171 of the laws of 1975, are amended
4 to read as follows:
5 1. To advance the cause of educational opportunity in higher educa-
6 tion, [the commissioner] the president may contract with non-public
7 institutions of higher education for the support of special programs for
8 the screening, testing, counseling, tutoring of, and, assistance to,
9 residents of the state who are, (1) graduates of an approved high school
10 or individuals who have attained a New York state high school equivalen-
11 cy diploma or its equivalent, as determined by the commissioner, (2) who
12 have potential for the successful completion of a post secondary
13 program, and (3) are economically and educationally disadvantaged, as
14 defined by the [regents] president.
15 4. The [commissioner] president shall promulgate regulations requiring
16 the submission to him by any institution intending to contract with the
17 state for assistance pursuant to this section of reports in such form
18 and containing such information as he shall require, concerning, but not
19 limited to, such matters as a description of the proposed program, esti-
20 mated costs, objectives, the extent of the institution’s support of such
21 program and similar programs and the progress of students in such
22 programs, and the [commissioner] president shall take such factors into
23 account in determining whether to enter into a contract with such insti-
24 tution and the terms and conditions thereof.
25 6. The [commissioner] president shall prepare an annual report of the
26 activities of the institutions which received state funds pursuant to
27 this section in the preceding fiscal year, concerning, but not limited
28 to, the effectiveness of each of the programs contracted for, the costs
413 13001-04-9
1 of the programs and the future plans thereof and shall transmit such
2 report to the Governor and the legislature on or before the December
3 first next following the close of such fiscal year.
4 § 56. Subdivision 3, paragraph b of subdivision 4 and paragraph b of
5 subdivision 5 of section 6452 of the education law, subdivision 3 and
6 paragraph b of subdivision 4 as added by chapter 917 of the laws of 1970
7 and paragraph b of subdivision 5 as amended by chapter 171 of the laws
8 of 1975, are amended to read as follows:
9 3. The general plan shall be transmitted to the [board of regents]
10 president at such time as the [regents] president shall by rule require.
11 Such plan shall be reviewed by the [regents] president and shall guide
12 and determine the operation of such programs at such universities.
13 b. No funds pursuant to this section shall be made available to
14 support the regular academic programs of any institution participating
15 in this program[, nor shall funds be provided for programs which are
16 incompatible with the regents plan for the expansion and development of
17 higher education in the state].
18 b. The [regents] president shall review such report and forward the
19 same, together with their comments and recommendations to the governor
20 and the legislature, on or before December first next following the
21 close of the state’s fiscal year.
22 § 57. Notwithstanding any law to the contrary, the allocation of
23 funds appropriated for the liberty partnerships program established
24 pursuant to section 612 of the education law, the allocation of funds
25 appropriated for attendance at post-secondary institutions by Native
26 American students established pursuant to section 4118 of the education
27 law, the allocation of funds appropriated for state aid for certain
28 independent institutions of higher learning pursuant to section 6401 of
414 13001-04-9
1 the education law, the allocation of funds appropriated for enrollment
2 grants to schools of medicine and dentistry pursuant to section 6402 of
3 the education law, the allocation of funds appropriated for state
4 reimbursement to certain institutions of higher education which partic-
5 ipate in the federal work study program pursuant to section 6405 of the
6 education law, and the allocation of funds appropriated for the science
7 and technology entry programs pursuant to section 6454 and 6455 of the
8 education law, shall be administered by the president of the higher
9 education services corporation pursuant to individual program expendi-
10 ture plans, prepared by the president, and approved by the director of
11 the division of the budget.
12 § 58. Section 137 of chapter 82 of the laws of 1995, amending the
13 education law and other laws relating to streamlining the regents higher
14 education master planning process is REPEALED.
15 § 59. This act shall take effect April 1, 1999 provided, that
16 sections fourteen and thirty-eight of this act shall be deemed to have
17 been in full force and effect for the academic year beginning July 1,
18 1999; provided further that the amendment to sections 677, 678 and 679
19 of the education law made by sections forty-six, forty-seven and forty-
20 eight of this act shall not affect the termination of such sections of
21 the education law as provided by section 17 of chapter 31 of the laws of
22 1985, as amended, and shall terminate therewith.
23 PART KK
24 § 1. Subdivision 21 of section 362 of chapter 83 of the laws of 1995,
25 amending the state finance law and other laws relating to block grants
26 for family and children’s services, is amended to read as follows:
27 21. Sections two hundred twenty-two through two hundred fifty-four of
28 this act shall take effect July 1, 1995; provided, however, that the
415 13001-04-9
1 amendments made by sections two hundred twenty-four, two hundred twen-
2 ty-five, two hundred thirty-one, and two hundred thirty-five of this act
3 shall expire and be deemed repealed on March 31, [1999] 2003 at which
4 time the state shall not be responsible for providing state reimburse-
5 ment to a social services district for any outstanding claims for family
6 and children’s services provided prior to April 1, [1999] 2003 that
7 exceed the district’s block grant apportionment for state fiscal year
8 [1998-99] 2002-03; provided, further, however, that nothing herein shall
9 require the discontinuance of rent subsidies or assistance provided to
10 those families participating as of the effective date of sections two
11 hundred twenty-two through two hundred fifty-four of this act in the
12 statewide demonstration program established pursuant to section 52 of
13 chapter 165 of the laws of 1991;
14 § 2. Subdivision 5 of section 153-d of the social services law, as
15 amended by section 86 of part C of chapter 58 of the laws of 1998, is
16 amended to read as follows:
17 5. Notwithstanding any other provision of this section or of any other
18 law, the office of children and family services shall suspend until
19 March thirty-first, [nineteen hundred ninety-nine] two thousand three
20 any denial of state reimbursement to a social services district for
21 violations of the provisions of this section for services provided from
22 January first, nineteen hundred ninety-four through December thirty-
23 first, [nineteen hundred ninety-eight] two thousand three. The office
24 shall [continue throughout the suspension period to monitor] discontinue
25 collecting and collating data from its computer systems on each social
26 services district’s compliance during the suspension period with the
27 provisions of subdivision one of this section. [By January first, nine-
28 teen hundred ninety-nine, the office shall submit a report to the gover-
416 13001-04-9
1 nor and the legislature setting forth each district’s compliance with
2 this section during the suspension period and recommendation regarding
3 whether reimbursement should be denied to any social services district
4 based on the district’s actions during the suspension period.] Nothing
5 herein shall preclude the office from continuing during the suspension
6 period to conduct the monitoring activities authorized under other
7 sections of this chapter.
8 § 3. Subdivision 6 of section 153-i of the social services law is
9 REPEALED.
10 § 4. Subdivision 8 of section 153-i of the social services law, as
11 added by chapter 83 of the laws of 1995, is amended to read as follows:
12 8. A social services district’s block grant apportionment shall
13 reflect the state share of sanctions or disallowances taken against the
14 district pursuant to this chapter or federal law. Notwithstanding any
15 other provision of law, the state shall not be responsible for reimburs-
16 ing social services districts for any portion of any federal or state
17 disallowances or sanctions taken against the social services district
18 pursuant to this chapter or under federal law for the family and chil-
19 drens' services set forth in subdivision one of this section, when such
20 disallowances or sanctions result from the failure of the social
21 services districts to comply with federal or state funding requirements,
22 including, but not limited to, failure to document eligibility for the
23 federal or state funds in the case record unless the disallowances or
24 sanctions results solely from the districts following written
25 instructions from the state regarding the filing of such a claim. This
26 provision shall be deemed to apply both prospectively and retroactively
27 regardless of whether the disallowances or sanctions are for services
28 provided or claims made prior to or after July first, nineteen hundred
417 13001-04-9
1 ninety-five, the date the family and children’s services block grant
2 became effective.
3 § 5. This act shall take effect April 1, 1999.
4 PART LL
5 § 1. Subdivision 12 of section 292 of the executive law, as amended by
6 chapter 481 of the laws of 1963, is amended to read as follows:
7 12. The term "multiple dwelling", as herein used, means a dwelling
8 which is occupied, as a rule, for permanent residence purposes and which
9 is either sold, rented, leased, let or hired out, to be occupied as the
10 residence or home of three or more families living independently of each
11 other. A "multiple dwelling" shall not be deemed to include a hospital,
12 convent, monastery, asylum or public institution, or a fireproof build-
13 ing used wholly for commercial purposes except for not more than one
14 janitor’s apartment and not more than one penthouse occupied by not more
15 than two families. The term "family, " as used herein, means either a
16 person occupying a dwelling and maintaining a household, with not more
17 than four boarders, roomers or lodgers, or two or more persons occupying
18 a dwelling, living together and maintaining a common household, with not
19 more than four boarders, roomers or lodgers. A "boarder, " "roomer" or
20 "lodger" residing with a family means a person living within the house-
21 hold who pays a consideration for such residence and does not occupy
22 such space within the household as an incident of employment therein.
23 Within the context of this definition, the terms "multiple dwelling" and
24 "multi-family dwelling" are interchangeable.
25 § 2. Paragraphs (a), (b) and (c) of subdivision 2-a of section 296 of
26 the executive law, as amended by chapter 204 of the laws of 1978, are
27 amended to read as follows:
418 13001-04-9
1 (a) To refuse to sell, rent or lease or otherwise to deny to or with-
2 hold from any person or group of persons such housing accommodations
3 because of the race, creed, color, disability, national origin, age, sex
4 [or], marital status, or familial status of such person or persons, or
5 to represent that any housing accommodation or land is not available for
6 inspection, sale, rental or lease when in fact it is so available.
7 (b) To discriminate against any person because of his race, creed,
8 color, disability, national origin, age, sex [or], marital status, or
9 familial status in the terms, conditions or privileges of any publicly-
10 assisted housing accommodations or in the furnishing of facilities or
11 services in connection therewith.
12 (c) To cause to be made any written or oral inquiry or record concern-
13 ing the race, creed, color, disability, national origin, age, sex [or],
14 marital status, or familial status of a person seeking to rent or lease
15 any publicly-assisted housing accommodation.
16 § 3. Subdivision 3-b of section 296 of the executive law, as amended
17 by chapter 803 of the laws of 1975, is amended to read as follows:
18 3-b. It shall be an unlawful discriminatory practice for any real
19 estate broker, real estate salesman or employee or agent thereof or any
20 other individual, corporation, partnership or organization for the
21 purpose of inducing a real estate transaction from which any such person
22 or any of its stockholders or members may benefit financially, to repre-
23 sent that a change has occurred or will or may occur in the composition
24 with respect to race, creed, color, national origin [or], sex, disabili-
25 ty, marital status, or familial status of the owners or occupants in the
26 block, neighborhood or area in which the real property is located, and
27 to represent, directly or indirectly, that this change will or may
28 result in undesirable consequences in the block, neighborhood or area in
419 13001-04-9
1 which the real property is located, including but not limited to the
2 lowering of property values, an increase in criminal or anti-social
3 behavior, or a decline in the quality of schools or other facilities.
4 § 4. Subparagraph 1 and the closing paragraph of paragraph (a) of
5 subdivision 5 of section 296 of the executive law, subparagraph 1 as
6 amended by chapter 368 of the laws of 1991 and the closing paragraph as
7 amended by chapter 593 of the laws of 1994, are amended to read as
8 follows:
9 (1) To refuse to sell, rent, lease or otherwise to deny to or withhold
10 from any person or group of persons such a housing accommodation because
11 of the race, creed, color, national origin, sex, age, disability, mari-
12 tal status, or familial status of such person or persons, or to repre-
13 sent that any housing accommodation or land is not available for
14 inspection, sale, rental or lease when in fact it is so available.
15 The provisions of this paragraph (a) shall not apply (1) to the rental
16 of a housing accommodation in a building which contains housing accommo-
17 dations for not more than two families living independently of each
18 other, if the owner [or members of the owner’s family reside] resides in
19 one of such housing accommodations, (2) to the restriction of the rental
20 of all rooms in a housing accommodation to individuals of the same sex
21 or (3) to the rental of a room or rooms in a housing accommodation, if
22 such rental is by the occupant of the housing accommodation or by the
23 owner of the housing accommodation and the owner [or members of the
24 owner’s family reside] resides in such housing accommodation or (4)
25 solely with respect to age and familial status to the restriction of
26 the sale, rental or lease of housing accommodations exclusively to
27 persons [fifty-five] sixty-two years of age or older and the spouse of
28 any such person, or for housing intended and operated for occupancy by
420 13001-04-9
1 at least one person fifty-five years of age or older per unit. In deter-
2 mining whether housing is intended and operated for occupancy by persons
3 fifty-five years of age or older, Sec. 807(b) (2) (c) (42 U.S.C. 3607
4 (b) (2) (c)) of the federal Fair Housing Act of 1988, as amended, shall
5 apply.
6 § 5. Subparagraphs 1, 2, 3 and 4 of paragraph (b) of subdivision 5 of
7 section 296 of the executive law, subparagraphs 1, 2 and 3 as amended by
8 chapter 657 of the laws of 1983 and subparagraph 4 as amended by chapter
9 593 of the laws of 1994, are amended to read as follows:
10 (1) To refuse to sell, rent, lease or otherwise deny to or withhold
11 from any person or group of persons land or commercial space because of
12 the race, creed, color, national origin, sex, age, [or] disability [or],
13 marital status, or familial status of such person or persons, or to
14 represent that any housing accommodation or land is not available for
15 inspection, sale, rental or lease when in fact it is so available.
16 (2) To discriminate against any person because of [his] race, creed,
17 color, national origin, sex, age, [or] disability [or], marital status,
18 or familial status in the terms, conditions or privileges of the sale,
19 rental or lease of any such land or commercial space; or in the furnish-
20 ing of facilities or services in connection therewith.
21 (3) To print or circulate or cause to be printed or circulated any
22 statement, advertisement or publication, or to use any form of applica-
23 tion for the purchase, rental or lease of such land or commercial space
24 or to make any record or inquiry in connection with the prospective
25 purchase, rental or lease of such land or commercial space which
26 expresses, directly or indirectly, any limitation, specification or
27 discrimination as to race, creed, color, national origin, sex, age, [or]
421 13001-04-9
1 disability [or], marital status, or familial status; or any intent to
2 make any such limitation, specification or discrimination.
3 (4) With respect to age and familial status, the provisions of this
4 paragraph shall not apply to the restriction of the sale, rental or
5 lease of land or commercial space exclusively to persons fifty-five
6 years of age or older and the spouse of any such person, or to the
7 restriction of the sale, rental or lease of land to be used for the
8 construction, or location of housing accommodations exclusively for
9 persons sixty-two years of age or older, or intended and operated for
10 occupancy by at least one person fifty-five years of age or older per
11 unit. In determining whether housing is intended and operated for occu-
12 pancy by persons fifty-five years of age or older, Sec. 807(b) (2) (c)
13 (42 U.S.C. 3607(b) (2) (c)) of the federal Fair Housing Act of 1988, as
14 amended, shall apply.
15 § 6. Subparagraph 3 of paragraph (c) of subdivision 5 of section 296
16 of the executive law, as amended by chapter 478 of the laws of 1993, is
17 amended to read as follows:
18 (3) With respect to age and familial status, the provisions of this
19 paragraph shall not apply to the restriction of the sale, rental or
20 lease of any [housing accommodation,] land or commercial space exclu-
21 sively to persons fifty-five years of age or older and the spouse of any
22 such person, or to the restriction of the sale, rental or lease of any
23 housing accommodation or land to be used for the construction or
24 location of housing accommodations for persons sixty-two years of age or
25 older, or intended and operated for occupancy by at least one person
26 fifty-five years of age or older per unit. In determining whether hous-
27 ing is intended and operated for occupancy by persons fifty-five years
422 13001-04-9
1 of age or older, Sec. 807 (b) (2) (c) (42 U.S.C. 3607 (b) (2) (c) of the
2 federal Fair Housing Act of 1988, as amended, shall apply.
3 § 7. Paragraph (d) of subdivision 5 of section 296 of the executive
4 law, as amended by chapter 730 of the laws of 1977, is amended to read
5 as follows:
6 (d) It shall be an unlawful discriminatory practice for any real
7 estate board, because of the race, creed, color, national origin, age,
8 sex, [or] disability [or], marital status, or familial status of any
9 individual who is otherwise qualified for membership, to exclude or
10 expel such individual from membership, or to discriminate against such
11 individual in the terms, conditions and privileges of membership in such
12 board.
13 § 8. The opening paragraph of paragraph 3 of subdivision 18 of section
14 296 of the executive law, as added by chapter 368 of the laws of 1991,
15 is amended to read as follows:
16 In connection with the design and construction of covered multi-family
17 dwellings for first occupancy after March thirteenth, nineteen hundred
18 ninety-one, a failure to design and construct dwellings in accordance
19 with the accessibility requirements [of] for multi-family dwellings
20 found in the New York state uniform fire prevention and building code to
21 provide that:
22 § 9. Paragraphs a, b, c and e of subdivision 1 of section 296-a of the
23 executive law, as amended by chapter 168 of the laws of 1977, are
24 amended to read as follows:
25 a. In the case of applications for credit with respect to the
26 purchase, acquisition, construction, rehabilitation, repair or mainte-
27 nance of any housing accommodation, land or commercial space to discrim-
28 inate against any such applicant because of the race, creed, color,
423 13001-04-9
1 national origin, age, sex, marital status [or], disability, or familial
2 status of such applicant or applicants or any member, stockholder,
3 director, officer or employee of such applicant or applicants, or of the
4 prospective occupants or tenants of such housing accommodation, land or
5 commercial space, in the granting, withholding, extending or renewing,
6 or in the fixing of the rates, terms or conditions of, any such credit.
7 b. To discriminate in the granting, withholding, extending or renew-
8 ing, or in the fixing of the rates, terms or conditions of, any form of
9 credit, on the basis of race, creed, color, national origin, age, sex,
10 marital status [or], disability, or familial status.
11 c. To use any form of application for credit or use or make any record
12 or inquiry which expresses, directly or indirectly, any limitation,
13 specification, or discrimination as to race, creed, color, national
14 origin, age, sex, marital status [or], disability, or familial status.
15 e. To refuse to consider sources of an applicant’s income or to
16 subject an applicant’s income to discounting, in whole or in part,
17 because of an applicant’s race, creed, color, national origin, age, sex,
18 marital status, childbearing potential [or], disability, or familial
19 status.
20 § 10. Subdivision 2 of section 296-a of the executive law, as amended
21 by chapter 168 of the laws of 1977, is amended to read as follows:
22 2. Without limiting the generality of subdivision one, it shall be
23 considered discriminatory if, because of an applicant’s or class of
24 applicants' race, creed, color, national origin, age, sex, marital
25 status or disability, or familial status, (i) an applicant or class of
26 applicants is denied credit in circumstances where other applicants of
27 like overall credit worthiness are granted credit, or (ii) special
28 requirements or conditions, such as requiring co-obligors or reapplica-
424 13001-04-9
1 tion upon marriage, are imposed upon an applicant or class of applicants
2 in circumstances where similar requirements or conditions are not
3 imposed upon other applicants of like overall credit worthiness.
4 § 11. Paragraph a of subdivision 3 of section 297 of the executive
5 law, as amended by chapter 218 of the laws of 1969, is amended to read
6 as follows:
7 a. If in the judgment of the division the circumstances so warrant, it
8 may, at any time after the filing of the complaint, endeavor to elimi-
9 nate such unlawful discriminatory practice by conference, conciliation
10 and persuasion. Each conciliation agreement shall include provisions
11 requiring the respondent to refrain from the commission of unlawful
12 discriminatory practices in the future and may contain such further
13 provisions as may be agreed upon by the division, the complainant, and
14 the respondent, including a provision for the entry in the supreme court
15 in any county in the judicial district where the alleged unlawful
16 discriminatory practice was committed, or where any respondent resides
17 or maintains an office for the transaction of business, or where the
18 housing accommodation, land or commercial space specified in the
19 complaint is located, of a consent decree embodying the terms of the
20 conciliation agreement. The division shall not disclose what has tran-
21 spired in the course of such endeavors.
22 § 12. Paragraph b of subdivision 3 of section 297 of the executive law
23 is REPEALED.
24 § 13. Paragraph d of subdivision 3 of section 297 of the executive
25 law, as amended by chapter 173 of the laws of 1974, is relettered para-
26 graph b and amended to read as follows:
27 b. If a conciliation agreement is entered into, the division shall
28 [serve a copy of the] issue an order embodying such agreement and serve
425 13001-04-9
1 a copy of such order upon all parties to the proceeding, and if a party
2 to any such proceeding is a regulated creditor, the division shall
3 forward a copy of the order embodying such agreement to the superinten-
4 dent.
5 § 14. Paragraph c of subdivision 3 of section 297 of the executive
6 law, as amended by chapter 374 of the laws of 1997, is amended to read
7 as follows:
8 c. [Notwithstanding any other provisions of this section, the division
9 may, where it finds the terms of a conciliation agreement to be in the
10 public interest, execute such agreement, and limit the hearing to the
11 objections of the complainant.] If[, however,] the division finds [that
12 the complainant’s objections to the proposed conciliation agreement are
13 without substance or] that noticing the complaint for hearing would be
14 [otherwise] undesirable, the division may in its unreviewable
15 discretion, at any time prior to a hearing before a hearing examiner
16 dismiss the complaint on the grounds of administrative convenience.
17 However, in cases of housing discrimination only, an administrative
18 convenience dismissal will not be rendered without the consent of the
19 complaint. The division may, subject to judicial review, dismiss the
20 complaint on the grounds of untimeliness if the complaint is untimely or
21 on the grounds that the election of remedies is annulled.
22 § 15. Subparagraph (vi) of paragraph c of subdivision 4 of section 297
23 of the executive law is redesignated subparagraph (vii) and a new
24 subparagraph (vi) is added to read as follows:
25 (vi) assessing civil fines and penalties, in cases of housing discrim-
26 ination only, in an amount not to exceed fifty thousand dollars, to be
27 paid to the state by a respondent found to have committed an unlawful
28 discriminatory act, or not to exceed one hundred thousand dollars to be
426 13001-04-9
1 paid to the state by a respondent found to have committed an unlawful
2 discriminatory act which is found to be willful, wanton or malicious;
3 § 16. Subdivision 9 of section 297 of the executive law, as amended by
4 chapter 374 of the laws of 1997, is amended to read as follows:
5 9. Any person claiming to be aggrieved by an unlawful discriminatory
6 practice shall have a cause of action in any court of appropriate juris-
7 diction for damages, including, in cases of housing discrimination only,
8 punitive damages, and such other remedies as may be appropriate, includ-
9 ing any civil fines and penalties provided in subdivision four of this
10 section, unless such person had filed a complaint hereunder or with any
11 local commission on human rights, or with the superintendent pursuant to
12 the provisions of section two hundred ninety-six-a of this chapter,
13 provided that, where the division has dismissed such complaint on the
14 grounds of administrative convenience, on the grounds of untimeliness,
15 or on the grounds that the election of remedies is annulled, such person
16 shall maintain all rights to bring suit as if no complaint had been
17 filed with the division. At any time prior to a hearing before a hearing
18 examiner, a person who has a complaint pending at the division may
19 request that the division dismiss the complaint and annul his or her
20 election of remedies so that the human rights law claim may be pursued
21 in court, and the division may, upon such request, dismiss the complaint
22 on the grounds that such person’s election of an administrative remedy
23 is annulled. Notwithstanding subdivision (a) of section two hundred four
24 of the civil practice law and rules, if a complaint is so annulled by
25 the division, upon the request of the party bringing such complaint
26 before the division, such party’s rights to bring such cause of action
27 before a court of appropriate jurisdiction shall be limited by the stat-
28 ute of limitations in effect in such court at the time the complaint was
427 13001-04-9
1 initially filed with the division. Any party to a housing discrimi-
2 nation complaint shall have the right within twenty days following a
3 determination of probable cause pursuant to subdivision two of this
4 section to elect to have an action commenced in a civil court, and an
5 attorney representing the division of human rights will be appointed to
6 present the complaint in court, or, with the consent of the division,
7 the case may be presented by complainant’s attorney. A complaint filed
8 by the equal employment opportunity commission to comply with the
9 requirements of 42 USC 2000e-5(c) and 42 USC 12117(a) and 29 USC 633(b)
10 shall not constitute the filing of a complaint within the meaning of
11 this subdivision. No person who has initiated any action in a court of
12 competent jurisdiction or who has an action pending before any adminis-
13 trative agency under any other law of the state based upon an act which
14 would be an unlawful discriminatory practice under this article, may
15 file a complaint with respect to the same grievance under this section
16 or under section two hundred ninety-six-a of this article.
17 § 17. Section 297 of the executive law is amended by adding a new
18 subdivision 10 to read as follows:
19 10. With respect to cases of housing discrimination only, in an action
20 or proceeding at law under this section or section two hundred ninety-
21 eight of this article, the commissioner or the court may in its
22 discretion award reasonable attorney’s fees to any prevailing or
23 substantially prevailing party; provided, however, that a prevailing
24 respondent or defendant in order to recover such reasonable attorney’s
25 fees must make a motion requesting such fees and show that the action or
26 proceeding brought was frivolous; and further provided that in a
27 proceeding brought in the division of human rights, the commissioner may
28 only award attorney’s fees as part of a final order after a public hear-
428 13001-04-9
1 ing held pursuant to subdivision four of this section. In no case shall
2 attorney’s fees be awarded to the division, nor shall the division be
3 liable to a prevailing or substantially prevailing party for attorney’s
4 fees, except in a case in which the division is a party to the action or
5 the proceeding in the division’s capacity as an employer. In order to
6 find the action or proceeding to be frivolous, the court or the commis-
7 sioner must find in writing one or more of the following:
8 (a) the action or proceeding was commenced, used or continued in bad
9 faith, solely to delay or prolong the resolution of the litigation or to
10 harass or maliciously injure another; or
11 (b) the action or proceeding was commenced or continued in bad faith
12 without any reasonable basis and could not be supported by a good faith
13 argument for an extension, modification or reversal of existing law. If
14 the action or proceeding was promptly discontinued when the party or
15 attorney learned or should have learned that the action or proceeding
16 lacked such a reasonable basis, the court may find that the party or the
17 attorney did not act in bad faith.
18 § 18. This act shall take effect immediately.
19 PART MM
20 § 1. The education law is amended by adding a new article 105 to read
21 as follows:
22 ARTICLE 105 - RESEARCH INSTITUTE ON ADDICTIONS
23 Section 5200. Establishment of the research institute on addictions.
24 5201. Functions of institute.
25 § 5200. Establishment of the research institute on addictions. There
26 is hereby established at the university center at Buffalo of the state
27 university of New York the research institute on addictions for research
28 and teaching in the sciences related to addiction, including alcohol
429 13001-04-9
1 abuse and substance abuse, as such terms are defined in section 1.03 of
2 the mental hygiene law, and chemical dependence, as defined in section
3 19.40 of the mental hygiene law.
4 § 5201. Functions of institute. The research institute on addictions
5 is designated as an institute for the conduct of research and education
6 directed towards furthering knowledge of the etiology, diagnosis, treat-
7 ment and prevention of addictions, including alcoholism, alcohol abuse,
8 substance abuse, substance dependence and chemical dependence. The
9 university shall foster support and obtain funds for research thereby,
10 or under the direction thereof, or through contract or agreement, relat-
11 ing to primary biochemical and social causes of such addictions, the
12 epidemiology of such addictions and the effectiveness of various types
13 of prevention, treatment, and rehabilitation programs and approaches.
14 § 2. Subdivision (c) of section 19.15 of the mental hygiene law, as
15 amended by chapter 223 of the laws 1992, is amended to read as follows:
16 (c) The activities described in subdivisions (a) and (b) of this
17 section may be undertaken in cooperation and agreement with other
18 offices of the department and with other departments or agencies of the
19 state, local or federal government, or with other organizations and
20 individuals, including, but not limited to, the research institute on
21 addictions as established in article one hundred five of the education
22 law.
23 § 3. Subdivision (f) of section 19.17 of the mental hygiene law, as
24 amended by chapter 248 of the laws of 1998, is amended to read as
25 follows:
26 (f) There shall be in the office the facilities named below for the
27 care, treatment and rehabilitation of the mentally disabled and for
430 13001-04-9
1 clinical research and teaching in the science and skills required for
2 the care, treatment and rehabilitation of such mentally disabled.
3 R.E. Blaisdell Addiction Treatment Center
4 Bronx Addiction Treatment Center
5 C.K. Post Addiction Treatment Center
6 Creedmoor Addiction Treatment Center
7 Dick Van Dyke Addiction Treatment Center
8 Kingsboro Addiction Treatment Center
9 Manhattan Addiction Treatment Center
10 McPike Addiction Treatment Center
11 Richard C. Ward Addiction Treatment Center
12 J.L. Norris Addiction Treatment Center
13 [Research Institute on Addictions]
14 South Beach Addiction Treatment Center
15 St. Lawrence Addiction Treatment Center
16 Stutzman Addiction Treatment Center
17 [The Research Institute on Addictions is designated as an institute
18 for the conduct of medical research and other scientific investigation
19 directed towards furthering knowledge of the etiology, diagnosis, treat-
20 ment and prevention of chemical dependence. The office shall foster
21 support and obtain funds for research thereby, or under the direction
22 thereof, or through contract or agreement, relating to such mental disa-
23 bilities. Such research shall include, but not be limited to, research
24 relating to primary biochemical, as well as social causes of such disa-
25 bilities, and the effectiveness of various types of prevention , treat-
26 ment, and rehabilitation programs and approaches. The research insti-
27 tute on addictions shall monitor and assist in the coordination of such
431 13001-04-9
1 research within the office, throughout the offices of the department of
2 mental hygiene, and throughout other state departments.]
3 § 4. 1. The powers, duties and functions of the Research Institute on
4 Addictions within the office of alcoholism and substance abuse services
5 hereby devolve upon the Research Institute on Addictions within the
6 state university of New York. All property, real and personal, includ-
7 ing moneys, investments, causes of action and every other asset of the
8 Research Institute on Addictions within the office of alcoholism and
9 substance abuse services hereby vests without further act or deed in the
10 Research Institute on Addictions within the state university of New
11 York.
12 2. The state university of New York hereby assumes, without further
13 act or deed, all liabilities and obligations of the Research Institute
14 on Addictions within the office of alcoholism and substance abuse
15 services. No liability or obligation due or to become due, claim or
16 demand for any cause existing against the Research Institute on
17 Addictions within the office of alcoholism and substance abuse services,
18 or any officer or member thereof, shall be released or impaired, or in
19 any respect expanded in regard to the source of payment thereof or
20 otherwise, by the succession effected hereby. Neither the rights of
21 creditors nor any liens upon, or security interests in, the property of
22 the Research Institute on Addictions within the office of alcoholism and
23 substance abuse services shall be impaired by the succession effected
24 hereby. No action or proceeding whether civil or criminal, pending by
25 or against the Research Institute on Addictions within the office of
26 alcoholism and substance abuse services, or any officer or member there-
27 of, shall abate or be discontinued by the succession effected hereby,
28 but may be enforced, prosecuted, settled or compromised as if such
432 13001-04-9
1 succession had not occurred, or the university may be substituted in
2 such action or special proceeding in place of the Research Institute on
3 Addictions within the office of alcoholism and substance abuse services.
4 3. With respect to contracts, agreements, leases and other similar
5 arrangements previously made by and between the Research Institute on
6 Addictions within the office of alcoholism and substance abuse services
7 and any other party, the university shall, in succeeding to the powers,
8 duties and functions of the Research Institute on Addictions within the
9 office of alcoholism and substance abuse services, perform all the obli-
10 gations and duties of, and shall have all the rights, powers, and func-
11 tions of the Research Institute on Addictions within the office of alco-
12 holism and substance abuse services, under and pursuant to such
13 contracts, agreements, leases or other similar arrangements.
14 § 5. The transfer of employees in state service effected as a conse-
15 quence of the transfer of functions pursuant to any provision hereof
16 shall be governed by this section.
17 1. Such transfers shall be deemed subject to section seventy of the
18 civil service law, and the provisions of such section seventy shall be
19 deemed applicable, except where the context clearly requires otherwise.
20 Any such employee who, at the time of such transfer, has a temporary or
21 provisional appointment shall be transferred subject to the same right
22 of removal, examination or termination as though such transfer had not
23 been made except to the extent such rights are modified by a collective
24 bargaining agreement. The foregoing notwithstanding, the chancellor is
25 hereby authorized to designate, prior or subsequent to the effective
26 date hereof, positions of the Research Institute on Addictions as in the
27 professional service, in accordance with the provisions of section thir-
28 ty-five of the civil service law; provided further that any such deter-
433 13001-04-9
1 mination shall not result in the diminution of the annual compensation
2 of the incumbent of the position.
3 2. A transferred employee shall remain in the same collective bargain-
4 ing unit as was the case prior to his transfer; successor employees to
5 the positions held by such transferred employees shall, consistent with
6 the provisions of article fourteen of the civil service law, be included
7 in the same unit as their predecessors. Employees, other than manageri-
8 al or confidential persons (as defined in article fourteen of the civil
9 service law), serving in positions in newly created titles shall be
10 assigned to the appropriate bargaining unit. Nothing contained herein
11 shall be construed to affect: (a) the rights of employees pursuant to a
12 collective bargaining agreement; or (b) the representational relation-
13 ships among employee organizations or the bargaining relationships
14 between the employer and an employee organization.
15 3. Notwithstanding the provisions of any other law to the contrary,
16 all lawful appointees holding positions which hereinbefore were subject
17 to the civil service law and are transferred to the university shall
18 continue to hold their positions without further examination or quali-
19 fications.
20 § 6. This act shall take effect July 1, 1999.
21 REVENUE
22 PART NN
23 § 1. Subsection (a) of section 616 of the tax law, as amended by chap-
24 ter 28 of the laws of 1987, is amended to read as follows:
25 (a) General. [For taxable years beginning after nineteen hundred
26 eighty-seven, a] A resident individual shall be allowed a New York
27 exemption [of one thousand dollars] for each exemption for which he or
28 she is entitled to a deduction for the taxable year under section one
434 13001-04-9
1 hundred fifty-one(c) of the Internal Revenue Code[; and for taxable
2 years beginning in nineteen hundred eighty-seven, a resident individual
3 other than a taxpayer whose federal exemption amount is zero shall be
4 allowed a New York exemption of nine hundred dollars for each exemption
5 for which he is entitled to a deduction for the taxable year for federal
6 income tax purposes].
7 For taxable years beginning: The amount of such
8 exemption shall be:
9 after 1987 and before 2002 $1,000
10 in 2002 $1,500
11 after 2002 $2,000
12 § 2. Subdivision (a) of section 11-1716 of the administrative code of
13 the city of New York, as amended by chapter 333 of the laws of 1987, is
14 amended to read as follows:
15 (a) General. [For taxable years beginning after nineteen hundred
16 eighty-seven, a] A city resident individual shall be allowed a city
17 exemption [of one thousand dollars] for each exemption for which such
18 resident individual is entitled to a deduction for the taxable year
19 under subsection (c) of section one hundred fifty-one of the internal
20 revenue code[; and for taxable years beginning in nineteen hundred
21 eighty-seven, a city resident individual other than a taxpayer whose
22 federal exemption amount is zero shall be allowed a city exemption of
23 nine hundred dollars for each exemption for which he is entitled to a
24 deduction for the taxable year for federal income tax purposes].
25 For taxable years beginning: The amount of such
435 13001-04-9
1 exemption shall be:
2 after 1987 and before 2002 $1,000
3 in 2002 $1,500
4 after 2002 $2,000
5 § 3. Paragraphs 2, 3 and 4 of subsection (a) of section 601 of the tax
6 law are renumbered paragraphs 4, 5 and 6 and paragraph 1 of subsection
7 (a) as amended by chapter 2 of the laws of 1995, is amended to read as
8 follows:
9 (1) For taxable years beginning after two thousand two:
10 If the New York taxable income is: The tax is:
11 Not over $16,000 4% of the New York taxable
12 income
13 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
14 $16,000
15 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
16 $22,000
17 Over $26,000 but not over $60,000 $1,120 plus 5.9% of excess over
18 $26,000
19 Over $60,000 $3,126 plus 6.85% of excess over
20 $60,000
21 (2) For taxable years beginning in two thousand two:
22 If the New York taxable income is: The tax is:
23 Not over $16,000 4% of the New York taxable
24 income
25 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
26 $16,000
27 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
436 13001-04-9
1 $22,000
2 Over $26,000 but not over $50,000 $1,120 plus 5.9% of excess over
3 $26,000
4 Over $50,000 $2,536 plus 6.85% of excess over
5 $50,000
6 (3) For taxable years beginning in nineteen hundred ninety-six and
7 before two thousand two:
8 If the New York taxable income is: The tax is:
9 Not over $16,000 4% of the New York taxable
10 income
11 Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
12 $16,000
13 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
14 $22,000
15 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
16 $26,000
17 Over $40,000 $1,946 plus 6.85% of excess over
18 $40,000
19 § 4. Paragraphs 2, 3 and 4 of subsection (b) of section 601 of the tax
20 law are renumbered paragraphs 4, 5 and 6 and paragraph 1 of subsection
21 (b) as amended by chapter 2 of the laws of 1995, is amended to read as
22 follows:
23 (1) For taxable years beginning after two thousand two:
24 If the New York taxable income is: The tax is:
25 Not over $11,000 4% of the New York taxable
26 income
27 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
437 13001-04-9
1 $11,000
2 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
3 $15,000
4 Over $17,000 but not over $45,000 $725 plus 5.9% of excess over
5 $17,000
6 Over $45,000 $2,377 plus 6.85% of excess over
7 $45,000
8 (2) For taxable years beginning in two thousand two:
9 If the New York taxable income is: The tax is:
10 Not over $11,000 4% of the New York taxable
11 income
12 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
13 $11,000
14 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
15 $15,000
16 Over $17,000 but not over $37,500 $725 plus 5.9% of excess over
17 $17,000
18 Over $37,500 $1,935 plus 6.85% of excess over
19 $37,500
20 (3) For taxable years beginning in nineteen hundred ninety-six and
21 before two thousand two:
22 If the New York taxable income is: The tax is:
23 Not over $11,000 4% of the New York taxable
24 income
25 Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
26 $11,000
27 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
438 13001-04-9
1 $15,000
2 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
3 $17,000
4 Over $30,000 $1,492 plus 6.85% of excess over
5 $30,000
6 § 5. Paragraphs 2, 3 and 4 of subsection (c) of section 601 of the tax
7 law are renumbered paragraphs 4, 5 and 6 and paragraph 1 of subsection
8 (c) as amended by chapter 2 of the laws of 1995, is amended to read as
9 follows:
10 (1) For taxable years beginning after two thousand two:
11 If the New York taxable income is: The tax is:
12 Not over $8,000 4% of the New York taxable
13 income
14 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
15 $8,000
16 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
17 $11,000
18 Over $13,000 but not over $30,000 $560 plus 5.9% of excess over
19 $13,000
20 Over $30,000 $1,563 plus 6.85% of excess over
21 $30,000
22 (2) For taxable years beginning in two thousand two:
23 If the New York taxable income is: The tax is:
24 Not over $8,000 4% of the New York taxable
25 income
26 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
439 13001-04-9
1 $8,000
2 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
3 $11,000
4 Over $13,000 but not over $25,000 $560 plus 5.9% of excess over
5 $13,000
6 Over $25,000 $1,268 plus 6.85% of excess over
7 $25,000
8 (3) For taxable years beginning in nineteen hundred ninety-six and
9 before two thousand two:
10 If the New York taxable income is: The tax is:
11 Not over $8,000 4% of the New York taxable
12 income
13 Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
14 $8,000
15 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
16 $11,000
17 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
18 $13,000
19 Over $20,000 $973 plus 6.85% of excess over
20 $20,000
21 § 6. This act shall take effect immediately.
22 PART OO
23 § 1. Paragraph 1 of subsection (a) of section 651 of the tax law, as
24 amended by chapter 333 of the laws of 1987, is amended to read as
25 follows:
26 (1) every resident individual (A) [required to file a federal income
27 tax return for the taxable year, or (B)] having [federal] New York
440 13001-04-9
1 adjusted gross income for the taxable year[, increased by the modifica-
2 tions under subsection (b) of section six hundred twelve,] in excess of
3 [four thousand dollars, or in excess of] his or her New York standard
4 deduction, [if lower,] or [(C)](B) subject to tax under section six
5 hundred two, or [(D)] (C) having received during the taxable year a lump
6 sum distribution any portion of which is subject to tax under section
7 six hundred three;
8 § 2. This act shall take effect immediately and shall apply to taxable
9 years beginning after 1998.
10 PART PP
11 § 1. Paragraph (e) of subdivision eighteenth-d of section 171 of the
12 tax law, as amended by chapter 567 of the laws of 1998, is amended to
13 read as follows:
14 (e) [If a taxpayer is jointly and severally liable pursuant to subpar-
15 agraph (B) of paragraph five of subsection (b) of section six hundred
16 fifty-one of this chapter, a] A compromise under this subdivision as to
17 a taxpayer’s spousal share of liability arising from a joint income tax
18 return shall not compromise the joint and several liability of the
19 spouse with respect to that return.
20 § 2. Paragraph 2, subparagraph (A) of paragraph 3 and paragraph 4 of
21 subsection (b) of section 651 of the tax law, as amended by chapter 567
22 of the laws of 1998, are amended to read as follows:
23 (2) If the federal income tax liabilities of husband and wife (other
24 than a husband and wife described in paragraph four of this subsection)
25 are determined on a joint federal return, they shall file a joint New
26 York income tax return, and their tax liabilities shall be [determined
27 under paragraph five of this subsection] joint and several except as
28 provided in paragraph six of this subsection [and in], section six
441 13001-04-9
1 hundred fifty-four and subsection (e) of section six hundred eighty-
2 five.
3 (A) they shall file a joint New York income tax return, and their tax
4 liabilities shall be [determined under paragraph five of this
5 subsection] joint and several except as provided in paragraph six of
6 this subsection [and in], section six hundred fifty-four and subsection
7 (e) of section six hundred eighty-five, or
8 (4) If either husband or wife is a resident and the other is a nonres-
9 ident or part-year resident, they shall file separate New York income
10 tax returns, in which event their tax liabilities shall be separate,
11 unless such husband and wife determine their federal taxable income
12 jointly and both elect to determine their joint New York taxable income
13 as if both were residents, in which event their tax liabilities shall be
14 [determined under paragraph five of this subsection] joint and several
15 except as provided in paragraph six of this subsection [and in], section
16 six hundred fifty-four and subsection (e) of section six hundred eight-
17 y-five.
18 § 3. Paragraph 5 of subsection (b) of section 651 of the tax law is
19 REPEALED.
20 § 4. Subsection (b) of section 651 of the tax law is amended by adding
21 a new paragraph 7 to read as follows:
22 (7) The commissioner shall clearly alert married taxpayers, on all
23 appropriate publications and instructions, that their liability for tax
24 will be joint and several if they file joint income tax returns. The
25 commissioner shall include notice of an individual’s right to relief
26 from joint and several liability pursuant to section six hundred fifty-
27 four of this article in the disclosure of rights statement required by
442 13001-04-9
1 section three thousand four of this chapter and in any notice regarding
2 collection of tax due with respect to a liability on a joint return.
3 § 5. The tax law is amended by adding a new section 654 to read as
4 follows:
5 § 654. Relief from joint and several liability on joint return. (a)
6 General.--The provisions of section six thousand fifteen of the internal
7 revenue code applicable to the liability of individuals who file joint
8 income tax returns shall apply to the same extent as if such section of
9 such code were contained in and made part of this section, except to the
10 extent that any provision of such section is either inconsistent with or
11 not relevant to this article and except as modified in subsection (b) of
12 this section, or with such other modifications as may be necessary to
13 adapt the language of such provisions to the provisions of this article.
14 (b) Modifications.--Section six thousand fifteen of the internal
15 revenue code shall be read as modified by this subsection.
16 (1) "Secretary" shall be read as "commissioner".
17 (2) "Internal revenue service" shall be read as "department of taxa-
18 tion and finance".
19 (3) "Tax court" shall be read as "division of tax appeals".
20 (4) In the heading of subsection (a) and in clause (ii) of subpara-
21 graph (A) of paragraph three of subsection (c), the phrase "section
22 6013(d)(3)" shall be read as "paragraphs two, three and four of
23 subsection (b) of section six hundred fifty-one of this article".
24 (5) In paragraph three of subsection (b), the phrase "section
25 6662(d)(2)(A)" shall be read as "subsection (p) of section six hundred
26 eighty-five of this article".
443 13001-04-9
1 (6) In subparagraph (B) of paragraph two of subsection (d), the phrase
2 "section 1 or 55" shall be read as "section six hundred one or six
3 hundred two of this article".
4 (7) In clause (i) of subparagraph (B) of paragraph one of subsection
5 (e), the phrase "section 6851 or 6861" shall be read as "section six
6 hundred ninety-four of this article" and "section 7485" shall be read as
7 "subsection (c) of section six hundred ninety of this article".
8 (8) In paragraph two of subsection (e), the phrase "section 6502"
9 shall be read as "section one hundred seventy-four-a of this chapter and
10 section six hundred ninety-two of this article".
11 (9) In subparagraph (A) of paragraph three of subsection (e), the
12 phrase "section 6512(b), 7121, or 7122" shall be read as "subdivision
13 fifteenth, eighteenth, eighteenth-a or eighteenth-d of section one
14 hundred seventy-one of this chapter and subsection (b) of section six
15 hundred eighty-nine of this article".
16 (10) The following provisions of such section six thousand fifteen
17 shall be disregarded: (A) The phrase "notwithstanding the provisions of
18 section 7421(a)" contained in clause (ii) of subparagraph (B) of para-
19 graph one of subsection (e); and (B) subparagraph (C) of paragraph three
20 of subsection (e).
21 (c) Federal determination.--If an individual is relieved of a federal
22 income tax liability pursuant to subsection (b) of section six thousand
23 fifteen of the internal revenue code, there shall be a rebuttable
24 presumption that such individual shall also be entitled to equivalent
25 relief from liability under this section, to the extent that such indi-
26 vidual has an understatement of tax under this article for the same
27 taxable year that is attributable to the same erroneous item or items to
28 which the individual’s federal income tax liability was attributable.
444 13001-04-9
1 § 6. Paragraph 2 and subparagraph (A) of paragraph 3 of subsection (b)
2 of section 1306 of the tax law, as amended by chapter 333 of the laws of
3 1987, are amended to read as follows:
4 (2) If the New York state personal income tax liabilities of husband
5 and wife (other than a husband and wife described in paragraph three)
6 are determined on a joint return, they shall file a joint city personal
7 income tax return, and their tax liabilities shall be joint and several
8 except as provided in [paragraphs four and] paragraph five of this
9 subsection [and in], section six hundred fifty-four and subsection (e)
10 of section six hundred eighty-five of this chapter.
11 (A) they may elect to file a joint city personal income tax return as
12 if both were residents, in which case their city personal income tax
13 liabilities shall be joint and several except as provided in [paragraphs
14 four and] paragraph five of this subsection [and in], section six
15 hundred fifty-four and subsection (e) of section six hundred eighty-five
16 of this chapter, or
17 § 7. Paragraph 4 of subsection (b) of section 1306 of the tax law is
18 REPEALED.
19 § 8. Subsection (b) of section 1306 of the tax law is amended by
20 adding a new paragraph 6 to read as follows:
21 (6) The commissioner shall clearly alert married taxpayers, on all
22 appropriate publications and instructions, that their liability for tax
23 will be joint and several if they file joint income tax returns. The
24 commissioner shall include notice of an individual’s right to relief
25 from joint and several liability pursuant to section six hundred fifty-
26 four of this chapter in the disclosure of rights statement required by
27 section three thousand four of this chapter and in any notice regarding
28 collection of tax due with respect to a liability on a joint return.
445 13001-04-9
1 § 9. Subsection (a) of section 1312 of the tax law, as amended by
2 chapter 577 of the laws of 1997, is amended to read as follows:
3 (a) Except as otherwise provided in this article, any tax imposed
4 pursuant to the authority of this article shall be administered and
5 collected by the commissioner in the same manner as the tax imposed by
6 article twenty-two of this chapter is administered and collected by the
7 commissioner. All of the provisions of article twenty-two of this chap-
8 ter relating to or applicable to payment of estimated tax, returns,
9 payment of tax, claim of right adjustment, withholding of tax from
10 wages, employer’s statements and returns, employer’s liability for taxes
11 required to be withheld and all other provisions of article twenty-two
12 of this chapter relating to or applicable to the administration,
13 collection, liability for and review of the tax imposed by article twen-
14 ty-two of this chapter, including sections six hundred fifty-two [and
15 six hundred fifty-three] through six hundred fifty-four, sections six
16 hundred fifty-seven through six hundred fifty-nine, sections six hundred
17 sixty-one and six hundred sixty-two, sections six hundred seventy-one
18 and six hundred seventy-two, sections six hundred seventy-four through
19 six hundred seventy-eight and sections six hundred eighty-one through
20 six hundred ninety-seven of this chapter, inclusive, shall apply to a
21 tax imposed pursuant to the authority of this article with the same
22 force and effect as if those provisions had been incorporated in full
23 into this article, and had expressly referred to the tax imposed pursu-
24 ant to the authority of this article, except where inconsistent with a
25 provision of this article. Whenever there is joint collection of state
26 and city personal income taxes, it shall be deemed that such collections
27 shall represent proportionately the applicable state and city personal
28 income taxes in determining the amount to be remitted to the city.
446 13001-04-9
1 § 10. Paragraph 2 and subparagraph (A) of paragraph 3 of subsection
2 (b) of section 1326 of the tax law, as amended by chapter 333 of the
3 laws of 1987, are amended to read as follows:
4 (2) If the New York state personal income tax liabilities of husband
5 and wife (other than a husband and wife described in paragraph three of
6 this subsection) are determined on a joint return, they shall file a
7 joint city income tax surcharge return, and their city income tax
8 surcharge liabilities shall be joint and several except as provided in
9 [paragraphs four and] paragraph five of this subsection [and in],
10 section six hundred fifty-four and subsection (e) of section six hundred
11 eighty-five of this chapter.
12 (A) they may elect to file a joint city income tax surcharge return as
13 if both were residents, in which case their city income tax surcharge
14 liabilities shall be joint and several except as provided in [paragraphs
15 four and] paragraph five of this subsection [and in], section six
16 hundred fifty-four and subsection (e) of section six hundred eighty-five
17 of this chapter, or
18 § 11. Paragraph 4 of subsection (b) of section 1326 of the tax law is
19 REPEALED.
20 § 12. Subsection (b) of section 1326 of the tax law is amended by
21 adding a new paragraph 6 to read as follows:
22 (6) The commissioner shall clearly alert married taxpayers, on all
23 appropriate publications and instructions, that their liability for tax
24 will be joint and several if they file joint income tax returns. The
25 commissioner shall include notice of an individual’s right to relief
26 from joint and several liability pursuant to section six hundred fifty-
27 four of this chapter in the disclosure of rights statement required by
447 13001-04-9
1 section three thousand four of this chapter and in any notice regarding
2 collection of tax due with respect to a liability on a joint return.
3 § 13. Subsection (a) of section 1332 of the tax law, as amended by
4 chapter 577 of the laws of 1997, is amended to read as follows:
5 (a) General. Except as otherwise provided in this article, any city
6 income tax surcharge imposed pursuant to the authority of this article
7 shall be administered and collected by the commissioner in the same
8 manner as the tax imposed by article twenty-two of this chapter is
9 administered and collected by the commissioner. All of the provisions of
10 article twenty-two of this chapter relating to or applicable to payment
11 of estimated tax, returns, payment of tax, claim of right adjustment,
12 withholding of tax from wages, employer’s statements and returns,
13 employer’s liability for taxes required to be withheld and all other
14 provisions of article twenty-two of this chapter relating to or applica-
15 ble to the administration, collection, liability for and review of the
16 tax imposed by article twenty-two, including sections six hundred
17 fifty-two [and six hundred fifty-three] through six hundred fifty-four,
18 sections six hundred fifty-seven through six hundred fifty-nine,
19 sections six hundred sixty-one and six hundred sixty-two, sections six
20 hundred seventy-one and six hundred seventy-two, sections six hundred
21 seventy-four through six hundred seventy-eight and sections six hundred
22 eighty-one through six hundred ninety-seven of this chapter, inclusive,
23 shall apply to a city income tax surcharge imposed pursuant to the
24 authority of this article with the same force and effect as if those
25 provisions had been incorporated in full into this article, and had
26 expressly referred to the city income tax surcharge imposed pursuant to
27 the authority of this article, except where inconsistent with a
28 provision of this article. Whenever there is joint collection of state
448 13001-04-9
1 personal income tax, city personal income tax, city income tax surcharge
2 or city nonresident earnings taxes, it shall be deemed that such
3 collection shall represent proportionately the applicable state personal
4 income tax, city personal income tax, city income tax surcharge or city
5 nonresident earnings taxes in determining the amount to be remitted to
6 the city.
7 § 14. Paragraph 2 and subparagraph (A) of paragraph 3 of subdivision
8 (b) of section 11-1751 of the administrative code of the city of New
9 York, as amended by chapter 333 of the laws of 1987, are amended to read
10 as follows:
11 (2) If the New York state personal income tax liabilities of husband
12 and wife (other than a husband and wife described in paragraph three)
13 are determined on a joint return, they shall file a joint city personal
14 income tax return, and their tax liabilities shall be joint and several
15 except as provided in [paragraphs four and] paragraph five of this
16 subdivision [and in], section 11-1755 of this chapter and subsection (e)
17 of section six hundred eighty-five of the tax law.
18 (A) they may elect to file a joint city personal income tax return as
19 if both were residents, in which case their city personal income tax
20 liabilities shall be joint and several except as provided in [paragraphs
21 four and] paragraph five of this subdivision [and in], section 11-1755
22 of this chapter and subsection (e) of section six hundred eighty-five of
23 the tax law, or
24 § 15. Paragraph 4 of subdivision (b) of section 11-1751 of the admin-
25 istrative code of the city of New York is REPEALED.
26 § 16. Subsection (b) of section 11-1751 of the administrative code of
27 the city of New York is amended by adding a new paragraph 6 to read as
28 follows:
449 13001-04-9
1 (6) The state commissioner of taxation and finance shall clearly alert
2 married taxpayers, on all appropriate publications and instructions,
3 that their liability for tax will be joint and several if they file
4 joint income tax returns. The state commissioner of taxation and finance
5 shall include notice of an individual’s right to relief from joint and
6 several liability pursuant to section six hundred fifty-four of the tax
7 law in the disclosure of rights statement required by section three
8 thousand four of the tax law and in any notice regarding collection of
9 tax due with respect to a liability on a joint return.
10 § 17. The administrative code of the city of New York is amended by
11 adding a new section 11-1755 to read as follows:
12 § 11-1755. Relief from joint and several liability on joint return.
13 (a) General.--The provisions of section six thousand fifteen of the
14 internal revenue code applicable to the liability of individuals who
15 file joint income tax returns shall apply to the same extent as if such
16 section of such code were contained in and made part of this section,
17 except to the extent that any provision of such section is either incon-
18 sistent with or not relevant to this chapter and except as modified in
19 subdivision (b) of this section, or with such other modifications as may
20 be necessary to adapt the language of such provisions to the provisions
21 of this chapter.
22 (b) Modifications.--Section six thousand fifteen of the internal
23 revenue code shall be read as modified by this subdivision.
24 (1) "Secretary" shall be read as "state commissioner of taxation and
25 finance".
26 (2) "Internal revenue service" shall be read as "department of taxa-
27 tion and finance".
28 (3) "Tax court" shall be read as "division of tax appeals".
450 13001-04-9
1 (4) In the heading of subsection (a) and in clause (ii) of subpara-
2 graph (A) of paragraph three of subsection (c), the phrase "section
3 6013(d)(3)" shall be read as "paragraphs two and three of subdivision
4 (b) of section 11-1751 of this chapter".
5 (5) In paragraph three of subsection (b), the phrase "section
6 6662(d)(2)(A)" shall be read as "subdivision (p) of section 11-1785 of
7 this chapter".
8 (6) In subparagraph (B) of paragraph two of subsection (d), the phrase
9 "section 1 or 55" shall be read as "section 11-1701 or 11-1702 of this
10 chapter".
11 (7) In clause (i) of subparagraph (B) of paragraph one of subsection
12 (e), the phrase "section 6851 or 6861" shall be read as "section 11-1794
13 of this chapter" and "section 7485" shall be read as "subdivision (c) of
14 section 11-1790 of this chapter".
15 (8) In paragraph two of subsection (e), the phrase "section 6502"
16 shall be read as "section one hundred seventy-four-a of the tax law and
17 section 11-1792 of this chapter".
18 (9) In subparagraph (A) of paragraph three of subsection (e), the
19 phrase "section 6512(b), 7121, or 7122" shall be read as "subdivision
20 fifteenth, eighteenth, eighteenth-a or eighteenth-d of section one
21 hundred seventy-one of the tax law and subdivision (b) of section
22 11-1789 of this chapter".
23 (10) The following provisions of such section six thousand fifteen
24 shall be disregarded: (A) The phrase "notwithstanding the provisions of
25 section 7421(a)" contained in clause (ii) of subparagraph (B) of para-
26 graph one of subsection (e); and (B) subparagraph (C) of paragraph three
27 of subsection (e).
451 13001-04-9
1 (c) Federal determination.--If an individual is relieved of a federal
2 income tax liability pursuant to subsection (b) of section six thousand
3 fifteen of the internal revenue code, there shall be a rebuttable
4 presumption that such individual shall also be entitled to equivalent
5 relief from liability under this section, to the extent that such indi-
6 vidual has an understatement of tax under this chapter for the same
7 taxable year that is attributable to the same erroneous item or items to
8 which the individual’s federal income tax liability was attributable.
9 § 18. This act shall take effect immediately and shall apply to taxa-
10 ble years beginning on and after January 1, 1999.
11 PART QQ
12 § 1. Paragraph (b) of subdivision 1 of section 183 of the tax law, as
13 amended by chapter 309 of the laws of 1996, is amended to read as
14 follows:
15 (b) For the privilege of exercising its corporate franchise, or of
16 doing business, or of employing capital, or of owning or leasing proper-
17 ty in this state in a corporate or organized capacity, or of maintaining
18 an office in this state, every domestic corporation, joint-stock company
19 or association formed for or principally engaged in the conduct of
20 canal, steamboat, ferry (except a ferry company operating between any of
21 the boroughs of the city of New York under a lease granted by the city),
22 express, navigation, pipe line, transfer, baggage express, omnibus,
23 taxicab, telegraph, or telephone business, or formed for or principally
24 engaged in the conduct of two or more of such businesses, and every
25 domestic corporation, joint-stock company or association formed for or
26 principally engaged in the conduct of a railroad, palace car, sleeping
27 car or trucking business or formed for or principally engaged in the
28 conduct of two or more of such businesses and which has made an election
452 13001-04-9
1 pursuant to subdivision ten of this section, and every other domestic
2 corporation, joint-stock company or association principally engaged in
3 the conduct of a transportation or transmission business, except a
4 corporation, joint-stock company or association formed for or principal-
5 ly engaged in the conduct of a railroad, palace car, sleeping car or
6 trucking business or formed for or principally engaged in the conduct of
7 two or more of such businesses and which has not made the election
8 provided for in subdivision ten of this section, and except a corpo-
9 ration, joint-stock company or association principally engaged in the
10 conduct of aviation (including air freight forwarders acting as princi-
11 pal and like indirect air carriers) and except a corporation principally
12 engaged in providing telecommunication services between aircraft and
13 dispatcher, aircraft and air traffic control or ground station and
14 ground station (or any combination of the foregoing), at least ninety
15 percent of the voting stock of which corporation is owned, directly or
16 indirectly, by air carriers and which corporation’s principal function
17 is to fulfill the requirements of (i) the federal aviation adminis-
18 tration (or the successor thereto) or (ii) the international civil
19 aviation organization (or the successor thereto), relating to the exist-
20 ence of a communication system between aircraft and dispatcher, aircraft
21 and air traffic control or ground station and ground station (or any
22 combination of the foregoing) for the purposes of air safety and naviga-
23 tion and except a corporation, joint-stock company or association
24 subject to taxation under [section one hundred eighty-six or] article
25 thirty-two of this chapter, shall pay, in advance, an annual tax to be
26 computed upon the basis of the amount of its capital stock within this
27 state during the preceding year, and upon each dollar of such amount.
28 Provided, however, a corporation, joint-stock company or association
453 13001-04-9
1 formed for or principally engaged in the transportation, transmission or
2 distribution of gas, electricity or steam shall not be subject to tax
3 under this section or section one hundred eight-four of this article.
4 § 2. Subdivision 1 of section 184 of the tax law, as amended by
5 section 119 of part A of chapter 389 of the laws of 1997, is amended to
6 read as follows:
7 1. The term "corporation" as used in this section shall include an
8 association, within the meaning of paragraph three of subsection (a) of
9 section seventy-seven hundred one of the internal revenue code (includ-
10 ing a limited liability company), a publicly traded partnership treated
11 as a corporation for purposes of the internal revenue code pursuant to
12 section seventy-seven hundred four thereof.
13 Every corporation, joint-stock company or association formed for or
14 principally engaged in the conduct of canal, steamboat, ferry (except a
15 ferry company operating between any of the boroughs of the city of New
16 York under a lease granted by the city), express, navigation, pipe line,
17 transfer, baggage express, omnibus, taxicab, telegraph or local tele-
18 phone business, or formed for or principally engaged in the conduct of
19 two or more of such businesses, and every corporation, joint-stock
20 company or association formed for or principally engaged in the conduct
21 of surface railroad, whether or not operated by steam, subway railroad,
22 elevated railroad, palace car, sleeping car or trucking business or
23 formed for or principally engaged in the conduct of two or more such
24 businesses and which has made an election pursuant to subdivision ten of
25 section one hundred eighty-three of this article, and every other corpo-
26 ration, joint-stock company or association formed for or principally
27 engaged in the conduct of a transportation or transmission business
28 (other than a telephone business), except a corporation, joint-stock
454 13001-04-9
1 company or association formed for or principally engaged in the conduct
2 of a surface railroad, whether or not operated by steam, subway rail-
3 road, elevated railroad, palace car, sleeping car or trucking business
4 or formed for or principally engaged in the conduct of two or more of
5 such businesses and which has not made the election provided for in
6 subdivision ten of section one hundred eighty-three of this article,
7 and, except a corporation, joint-stock company or association principal-
8 ly engaged in the conduct of aviation (including air freight forwarders
9 acting as principal and like indirect air carriers) and except a corpo-
10 ration principally engaged in providing telecommunication services
11 between aircraft and dispatcher, aircraft and air traffic control or
12 ground station and ground station (or any combination of the foregoing),
13 at least ninety percent of the voting stock of which corporation is
14 owned, directly or indirectly, by air carriers and which corporation’s
15 principal function is to fulfill the requirements of (i) the federal
16 aviation administration (or the successor thereto) or (ii) the interna-
17 tional civil aviation organization (or the successor thereto), relating
18 to the existence of a communication system between aircraft and
19 dispatcher, aircraft and air traffic control or ground station and
20 ground station (or any combination of the foregoing) for the purposes of
21 air safety and navigation and except a corporation, joint-stock company
22 or association which is liable to taxation under [section one hundred
23 eighty-six or] article thirty-two of this chapter, for the privilege of
24 exercising its corporate franchise, or of doing business, or of employ-
25 ing capital, or of owning or leasing property in this state in a corpo-
26 rate or organized capacity, or maintaining an office in this state,
27 shall pay a franchise tax which shall be equal to (i) three-quarters of
28 one percent for taxable years ending before two thousand one, provided
455 13001-04-9
1 that for a taxable year ending in two thousand the rate shall be reduced
2 to three-eighths of one percent effective July first, two thousand with
3 the result that for purposes of implementation of such change in rate
4 the applicable rate for such a year shall be nine-sixteenths of one
5 percent, and (ii) three-eighths of one percent for taxable years
6 commencing after two thousand, upon its gross earnings from all sources
7 within this state; except that, for taxable years commencing on or after
8 January first, nineteen hundred eighty-five and ending on or before
9 December thirty-first, nineteen hundred eighty-nine, every corporation,
10 joint-stock company or association formed for or principally engaged in
11 the conduct of telephone or telegraph business shall pay a franchise tax
12 which shall be equal to three-tenths of one per centum upon its gross
13 earnings from all sources within this state and, for taxable years
14 commencing on or after January first, nineteen hundred ninety, every
15 corporation, joint-stock company or association formed for or principal-
16 ly engaged in the conduct of local telephone business, or telegraph
17 business shall pay a franchise tax which shall be equal to (i) three-
18 quarters of one percent for taxable years ending before two thousand
19 one, provided that for a taxable year ending in two thousand the rate
20 shall be reduced to three-eighths of one percent effective July first,
21 two thousand with the result that for purposes of implementation of such
22 change in rate the applicable rate for such a year shall be nine-six-
23 teenths of one percent, and (ii) three-eighths of one percent for taxa-
24 ble years commencing after two thousand, upon its gross earnings from
25 all sources within this state, except that a corporation, joint-stock
26 company or association formed for or principally engaged in the conduct
27 of a local telephone business shall exclude the following earnings (but
28 not in any event earnings derived by such taxpayer from the provision of
456 13001-04-9
1 carrier access services) derived by such taxpayer from sales for ulti-
2 mate consumption of telecommunications service to its customers (i)
3 thirty percent of separately charged intra-LATA toll service (which
4 shall also include interregion regional calling plan service) and (ii)
5 one hundred percent of separately charged inter-LATA, interstate or
6 international telecommunications service; and except that corporations,
7 joint-stock companies or associations formed for or principally engaged
8 in the conduct of surface railroad, whether or not operated by steam,
9 subway railroad, elevated railroad, palace car or sleeping car, business
10 or any other corporation formed for or principally engaged in the
11 conduct of a railroad business, for taxable years prior to nineteen
12 hundred ninety-seven, and corporations, joint-stock companies or associ-
13 ations formed for or principally engaged in the conduct of canal, steam-
14 boat, ferry (except a ferry company operating between any of the
15 boroughs of the city of New York under a lease granted by the city),
16 navigation or any corporation formed for or principally engaged in the
17 operation of vessels, shall pay a franchise tax which shall be equal to
18 three-quarters of one per centum upon its gross earnings from all sourc-
19 es within this state, excluding earnings derived from business of an
20 interstate or foreign character; except that for taxable years beginning
21 in nineteen hundred ninety-seven or thereafter, in the case of a corpo-
22 ration, joint-stock company or association which, with respect to taxa-
23 ble years beginning after nineteen hundred ninety-seven, has made an
24 election pursuant to subdivision ten of section one hundred eighty-three
25 of this article and which is formed for or principally engaged in the
26 conduct of surface railroad, whether or not operated by steam, subway
27 railroad, elevated railroad, palace car, sleeping car or trucking busi-
28 ness or formed for or principally engaged in the conduct of two or more
457 13001-04-9
1 of such businesses, such corporation, joint-stock company or association
2 shall pay a franchise tax which shall be equal to (i) six-tenths of one
3 percent for taxable years ending before two thousand one, provided that
4 for a taxable year ending in two thousand the rate shall be reduced to
5 three-eighths of one percent effective July first, two thousand with the
6 result that for purposes of implementation of such change in rate the
7 applicable rate for such a year shall be thirty-nine eightieths of one
8 percent, and (ii) three-eighths of one percent for taxable years
9 commencing after two thousand, upon its gross earnings from all sources
10 within this state, provided that in the case of a corporation, joint-
11 stock company or association formed for or principally engaged in the
12 conduct of surface railroad, whether or not operated by steam, subway
13 railroad, elevated railroad, palace car or sleeping car business, or
14 formed for or principally engaged in the conduct of two or more of such
15 businesses, such gross earnings shall not include earnings derived from
16 business of an interstate or foreign character.
17 Provided, however, with respect to railroad, elevated railroad, palace
18 car or sleeping car business or any other corporation formed for or
19 principally engaged in the conduct of a railroad business and canal,
20 steamboat, ferry (except a ferry company operating between any of the
21 boroughs of the city of New York under a lease granted by the city),
22 navigation or any corporation formed for or principally engaged in the
23 operation of vessels where the gross earnings from such transportation
24 business both originating and terminating within this state and travers-
25 ing both this state and another state or states or country shall be
26 subject to the franchise tax imposed by this section (except where such
27 corporation, joint-stock company or association is formed for or princi-
28 pally engaged in the conduct of a railroad (including surface railroad,
458 13001-04-9
1 whether or not operated by steam, subway railroad or elevated railroad),
2 palace car or sleeping car business or formed for or principally engaged
3 in the conduct of two or more of such businesses, and has not made the
4 election provided for under subdivision ten of section one hundred
5 eighty-three of this article) and such earnings shall be allocated to
6 this state in the same ratio that the mileage within the state bears to
7 the total mileage of such business. Provided, further, a corporation,
8 joint-stock company or association formed for or principally engaged in
9 the transportation, transmission or distribution of gas, electricity or
10 steam shall not be subject to tax under this section or section one
11 hundred eighty-three of this article.
12 The term "local telephone business" means the provision or furnishing
13 of telecommunication services for hire wherein the service furnished by
14 the provider thereof consists of carrier access service or the service
15 originates and terminates within the same local access and transport
16 area ("LATA"), a local access and transport area being that geographic
17 area as established and approved, and as so set and in existence on July
18 first, nineteen hundred ninety-four, pursuant to the modification of
19 final judgment in United States v. Western Electric Company (civil
20 action no. 82-0192) in the United States district court for the District
21 of Columbia or within the LATA-like Rochester non-associated independent
22 area.
23 The term "telecommunication services" shall have the meaning ascribed
24 to such term in section one hundred eighty-six-e of this article.
25 § 3. Sections 186 and 186-b of the tax law are REPEALED.
26 § 4. Subdivision 1, paragraphs (b) and (c) of subdivision 2 and subdi-
27 vision 6 of section 186-a of the tax law, subdivision 1 as amended by
28 section 121 of part A of chapter 389 of the laws of 1997, paragraphs (b)
459 13001-04-9
1 and (c) of subdivision 2 as amended by chapter 536 of the laws of 1998
2 and subdivision 6 as added by chapter 321 of the laws of 1937 and as
3 renumbered by chapter 103 of the laws of 1981, are amended to read as
4 follows:
5 1. Notwithstanding any other provision of this chapter, or of any
6 other law, (a) a tax equal to [three and one-half percent prior to Octo-
7 ber first, nineteen hundred ninety-eight,] three and one-quarter percent
8 from [October first, nineteen hundred ninety-eight] January first, nine-
9 teen hundred ninety-nine through December thirty-first, nineteen hundred
10 ninety-nine, and two and one-half percent on and after January first,
11 two thousand of its gross income is hereby imposed upon every provider
12 of telecommunication services doing business in this state which is
13 subject to the supervision of the state department of public service
14 which has a gross income for the year ending December thirty-first in
15 excess of five hundred dollars; (b) a tax equal to (1) three and one-
16 quarter percent from January first, nineteen hundred ninety-nine through
17 December thirty-first, nineteen hundred ninety-nine, and two and one-
18 half percent on and after January first, two thousand of that portion of
19 its gross income derived from the transportation, transmission or
20 distribution of gas or electricity by means of conduits, mains, pipes,
21 wires, lines or the like and (2) two and six-tenths percent from January
22 first, nineteen hundred ninety-nine through December thirty-first, nine-
23 teen hundred ninety-nine, two and four-tenths percent from January
24 first, two thousand to December thirty-first, two thousand, one and
25 seventy-five hundredths percent from January first, two thousand one
26 through December thirty-first, two thousand one, one percent from Janu-
27 ary first, two thousand two through December thirty-first, two thousand
28 two, and zero percent commencing January first, two thousand three of
460 13001-04-9
1 all of its other gross income, is hereby imposed upon every utility not
2 taxed under paragraph (a) of this subdivision doing business in this
3 state which is subject to the supervision of the state department of
4 public service which has a gross income for the year ending December
5 thirty-first in excess of five hundred dollars, except motor carriers or
6 brokers subject to such supervision under [article three-b of] the
7 public service law; and (c) a tax equal to [three and one-half percent
8 prior to October first, nineteen hundred ninety-eight, three and one-
9 quarter] two and six-tenths percent from [October first, nineteen
10 hundred ninety-eight] January first, nineteen hundred ninety-nine
11 through December thirty-first, nineteen hundred ninety-nine, [and] two
12 and [one-half] four-tenths percent [on and after] from January first,
13 two thousand[,] through December thirty-first, two thousand, one and
14 seventy-five hundredths percent from January first, two thousand one
15 through December thirty-first, two thousand one, one percent from Janu-
16 ary first, two thousand two through December thirty-first, two thousand
17 two, and zero percent commencing January first, two thousand three of
18 its gross operating income is hereby imposed upon every other utility
19 doing business in this state which has a gross operating income for the
20 year ending December thirty-first in excess of five hundred dollars,
21 which taxes shall be in addition to any and all other taxes and fees
22 imposed by any other provision of law for the same period.
23 (b) the word "person" means persons, corporations, companies, associ-
24 ations, joint-stock companies or associations, partnerships and limited
25 liability companies, estates, assignee of rents, any person acting in a
26 fiduciary capacity, or any other entity, and persons, their assignees,
27 lessees, trustees or receivers, appointed by any court whatsoever, or by
28 any other means, except the state[,]; municipalities, political and
461 13001-04-9
1 civil subdivisions of the state or municipality[,] and public districts
2 [and] (provided, however, that with respect to gas, electricity and gas
3 or electric service, including the sale of the transportation, trans-
4 mission or distribution of gas or electricity, such municipalities,
5 political and civil subdivisions and public districts shall be excluded
6 from the definition of "person" if they own and operate facilities which
7 are used to generate and distribute electricity or distribute gas and
8 they distribute and sell such gas or electricity solely at retail, sole-
9 ly within their respective jurisdiction; or provided, further, with
10 respect to the sale of electricity or the transportation, transmission
11 or distribution of electricity, a municipality shall be excluded from
12 the definition of "person" if it sells electricity at retail where all
13 such electricity (excluding temporary substitution power during outages
14 or periods of reduced output) has been generated solely by and purchased
15 solely from the state or a public authority of the state; corporations
16 and associations which are organized and operated exclusively for reli-
17 gious, charitable or educational purposes, no part of the net earnings
18 of which inures to the benefit of any private shareholder or individual,
19 and which are described in paragraph four of subdivision (a) of section
20 eleven hundred sixteen of this chapter; and excepting a corporation
21 organized and operated exclusively for the purpose of leasing from a
22 city in this state a water-works system designed to supply water at cost
23 to users thereof for discharge, either before or after industrial use,
24 into a river within such city in order to improve the flow and condition
25 of such river and thereby to provide a means to relieve such river from
26 pollution; (c) the words "gross income" mean and include receipts
27 received in or by reason of any sale, conditional or otherwise, (except
28 sales hereinafter referred to with respect to which it is provided that
462 13001-04-9
1 profits from the sale shall be included in gross income) made or service
2 rendered for ultimate consumption or use by the purchaser in this state,
3 including cash, credits and property of any kind or nature (whether or
4 not such sale is made or such service is rendered for profit), without
5 any deduction therefrom on account of the cost of the property sold, the
6 cost of materials used, labor or services or other costs, interest or
7 discount paid, or any other expense whatsoever. (1) Provided, however,
8 that all receipts from sales of the transportation, transmission or
9 distribution of gas or electricity by means of conduits, mains, pipes,
10 wires, lines or the like, rendered or performed in this state, shall be
11 included in gross income except receipts from (i) sales of the transpor-
12 tation, transmission or distribution of gas or electricity to (A) a
13 utility which is supervised by this state or another jurisdiction (where
14 an element of such supervision includes rate regulation), (B) a munici-
15 pality which owns and operates facilities which are used to generate and
16 distribute electricity or distribute gas and which distributes and sells
17 such electricity or gas solely at retail, solely within its respective
18 jurisdiction or (C) a public authority of this state; where, as the case
19 may be, such utility or authority purchasing such transportation, trans-
20 mission or distribution sells the gas or electricity being so trans-
21 ported, transmitted or distributed or (ii) sales of the transportation,
22 transmission or distribution of electricity to a municipality where the
23 electricity being transported has been purchased by such municipality
24 has been generated solely by and purchased solely from the state or a
25 public authority of the state (except where the electricity being trans-
26 ported constitutes temporary substitution power being supplied during
27 outages or periods of reduced output) and where such municipality
28 purchasing such transportation, transmission or distribution, sells
463 13001-04-9
1 solely at retail, solely within its respective jurisdiction, the elec-
2 tricity being so transported, transmitted or distributed. (2) Provided,
3 further, receipts received from the sale of the transportation, trans-
4 mission or distribution of gas or electricity shall mean the receipts
5 received from customers representing the noncommodity charges for gas or
6 electric service. (3) Provided, further, gross income with respect to a
7 provider of telecommunication services shall not include receipts from
8 the sale of telecommunication services as such services are defined in
9 section one hundred eighty-six-e of this article. (4) Provided, further,
10 sales of gas, electricity, steam, water or refrigeration or gas, elec-
11 tric, steam, water or refrigerator service to a landlord that is a
12 person as defined in this subdivision for resale by such landlord to a
13 tenant, for consumption by such tenant as an incident to such landlord’s
14 activity of renting premises to such tenant, shall be subject to the tax
15 imposed under this section even though such sales are not for ultimate
16 consumption by such landlord. Provided, further, receipts derived by a
17 landlord from the resale for such gas, electricity, steam, water or
18 refrigeration or furnishing gas, electric, steam, water or refrigerator
19 service to such tenant shall be conclusively presumed to be equal to
20 such landlord’s cost of the same, and, if the tax under this section was
21 imposed on the sale to such landlord, no additional tax under this
22 section shall be owing on the sale by such landlord to such tenant. If,
23 however, the tax under this section was not imposed on such sale to the
24 landlord, then such landlord on the sale to its tenant shall file a
25 return hereunder based on such landlord’s cost (including any associated
26 transportation cost) of such gas, electricity, steam, water or refriger-
27 ation or gas, electric, steam, water or refrigerator service. (5) "Gross
28 income" also includes profits from the sale of securities; also profits
464 13001-04-9
1 from the sale of real property growing out of the ownership or use of or
2 interest in such property; also profit from the sale of personal proper-
3 ty (other than property of a kind which would properly be included in
4 the inventory of the taxpayer if on hand at the close of the period for
5 which a return is made); also receipts from interest, dividends, and
6 royalties, derived from sources within this state other than such as are
7 received from a corporation a majority of whose voting stock is owned by
8 the taxpaying utility, without any deduction therefrom for any expenses
9 whatsoever incurred in connection with the receipt thereof, also profits
10 from any transaction (except sales for resale and rentals) within this
11 state whatsoever;
12 [6. The tax imposed by this section shall be charged against and be
13 paid by the utility and shall not be added as a separate item to bills
14 rendered by the utility to customers or others but shall constitute a
15 part of the operating costs of such utility.]
16 § 5. Subdivisions 1, 2 and 4 of section 186-a of the tax law, subdivi-
17 sion 1 and paragraphs (b) and (c) of subdivision 2 as amended by section
18 four of this act, and subdivisions 2 and 4 as amended by chapter 536 of
19 the laws of 1998, are amended to read as follows:
20 1. Notwithstanding any other provision of this chapter, or of any
21 other law, (a) a tax equal to [three and one-quarter percent from Janu-
22 ary first, nineteen hundred ninety-nine through December thirty-first,
23 nineteen hundred ninety-nine, and] two and one-half percent [on and
24 after January first, two thousand] of its gross income is hereby imposed
25 upon every provider of telecommunication services doing business in this
26 state which is subject to the supervision of the state department of
27 public service which has a gross income for the year ending December
28 thirty-first in excess of five hundred dollars; and (b) a tax equal to
465 13001-04-9
1 [(1) three and one-quarter percent from January first, nineteen hundred
2 ninety-nine through December thirty-first, nineteen hundred ninety-nine,
3 and] two and one-half percent [on and after January first, two thousand]
4 of that portion of its gross income derived from the transportation,
5 transmission or distribution of gas or electricity by means of conduits,
6 mains, pipes, wires, lines or the like [and (2) two and six-tenths
7 percent from January first, nineteen hundred ninety-nine through Decem-
8 ber thirty-first, nineteen hundred ninety-nine, two and four-tenths
9 percent from January first, two thousand to December thirty-first, two
10 thousand, one and seventy-five hundredths percent from January first,
11 two thousand one through December thirty-first, two thousand one, one
12 percent from January first, two thousand two through December thirty-
13 first, two thousand two, and zero percent commencing January first, two
14 thousand three of all of its other gross income,] is hereby imposed upon
15 every utility not taxed under paragraph (a) of this subdivision doing
16 business in this state which is subject to the supervision of the state
17 department of public service which has a gross income for the year
18 ending December thirty-first in excess of five hundred dollars, except
19 motor carriers or brokers subject to such supervision under the public
20 service law[; and (c) a tax equal to two and six-tenths percent from
21 January first, nineteen hundred ninety-nine through December thirty-
22 first, nineteen hundred ninety-nine, two and four-tenths percent from
23 January first, two thousand through December thirty-first, two thousand,
24 one and seventy-five hundredths percent from January first, two thousand
25 one through December thirty-first, two thousand one, one percent from
26 January first, two thousand two through December thirty-first, two thou-
27 sand two, and zero percent commencing January first, two thousand three
28 of its gross operating income is hereby imposed upon every other utility
466 13001-04-9
1 doing business in this state which has a gross operating income for the
2 year ending December thirty-first in excess of five hundred dollars],
3 which taxes shall be in addition to any and all other taxes and fees
4 imposed by any other provision of law for the same period.
5 2. As used in this section, (a) the word "utility" includes every
6 person (including every provider of telecommunication services) subject
7 to the supervision of the state department of public service, except
8 persons engaged in the business of operating on the public highways of
9 this state one or more omnibuses, having a seating capacity of more than
10 seven persons, and persons engaged in the business of operating or leas-
11 ing sleeping and parlor railroad cars or of operating railroads other
12 than street surface, rapid transit, subway and elevated railroads[, and
13 also includes every person (whether or not such person is subject to
14 such supervision) who sells gas, electricity, steam, water or refriger-
15 ation, delivered through mains, pipes or wires, or furnishes gas, elec-
16 tric, steam, water or refrigerator service, by means of mains, pipes, or
17 wires; regardless of whether such activities are the main business of
18 such person or are only incidental thereto, or of whether use is made of
19 the public streets]; (b) the word "person" means persons, corporations,
20 companies, associations, joint-stock companies or associations, partner-
21 ships and limited liability companies, estates, assignee of rents, any
22 person acting in a fiduciary capacity, or any other entity, and persons,
23 their assignees, lessees, trustees or receivers, appointed by any court
24 whatsoever, or by any other means, except the state; municipalities,
25 political and civil subdivisions of the state or municipality and public
26 districts (provided, however, that with respect to gas, electricity and
27 gas or electric service, including the sale of the transportation, tran-
28 smission or distribution of gas or electricity, such municipalities,
467 13001-04-9
1 political and civil subdivisions and public districts shall be excluded
2 from the definition of "person" if they own and operate facilities which
3 are used to generate and distribute electricity or distribute gas and
4 they distribute and sell such gas or electricity solely at retail, sole-
5 ly within their respective jurisdiction; or provided, further, with
6 respect to the sale of electricity or the transportation, transmission
7 or distribution of electricity, a municipality shall be excluded from
8 the definition of "person" if it sells electricity at retail where all
9 such electricity (excluding temporary substitution power during outages
10 or periods of reduced output) has been generated solely by and purchased
11 solely from the state or a public authority of the state; corporations
12 and associations which are organized and operated exclusively for reli-
13 gious, charitable or educational purposes, no part of the net earnings
14 of which inures to the benefit of any private shareholder or individual,
15 and which are described in paragraph four of subdivision (a) of section
16 eleven hundred sixteen of this chapter[; and excepting a corporation
17 organized and operated exclusively for the purpose of leasing from a
18 city in this state a water-works system designed to supply water at cost
19 to users thereof for discharge, either before or after industrial use,
20 into a river within such city in order to improve the flow and condition
21 of such river and thereby to provide a means to relieve such river from
22 pollution]; (c) the words "gross income" (1) When used in reference to
23 persons described in paragraph (a) of subdivision one of this section,
24 mean and include receipts received in or by reason of any sale, condi-
25 tional or otherwise, (except sales hereinafter referred to with respect
26 to which it is provided that profits from the sale shall be included in
27 gross income) made or service rendered for ultimate consumption or use
28 by the purchaser in this state, including cash, credits and property of
468 13001-04-9
1 any kind or nature (whether or not such sale is made or such service is
2 rendered for profit), without any deduction therefrom on account of the
3 cost of the property sold, the cost of materials used, labor or services
4 or other costs, interest or discount paid, or any other expense whatso-
5 ever. [(1)] (2) Provided, however, [that all receipts from sales of the
6 transportation, transmission or distribution of gas or electricity by
7 means of conduits, mains, pipes, wires, lines or the like, rendered or
8 performed in this state, shall be included in gross income except
9 receipts from (i) sales of the transportation, transmission or distrib-
10 ution of gas or electricity to (A) a utility which is supervised by this
11 state or another jurisdiction (where an element of such supervision
12 includes rate regulation), (B) a municipality which owns and operates
13 facilities which are used to generate and distribute electricity or
14 distribute gas and which distributes and sells such electricity or gas
15 solely at retail, solely within its respective jurisdiction or (C) a
16 public authority of this state; where, as the case may be, such utility
17 or authority purchasing such transportation, transmission or distrib-
18 ution sells the gas or electricity being so transported, transmitted or
19 distributed or (ii) sales of the transportation, transmission or
20 distribution of electricity to a municipality where the electricity
21 being transported has been purchased by such municipality has been
22 generated solely by and purchased solely from the state or a public
23 authority of the state (except where the electricity being transported
24 constitutes temporary substitution power being supplied during outages
25 or periods of reduced output) and where such municipality purchasing
26 such transportation, transmission or distribution sells solely at
27 retail, solely within its respective jurisdiction, the electricity being
28 so transported, transmitted or distributed. (2) Provided, further,
469 13001-04-9
1 receipts received from the sale of the transportation, transmission or
2 distribution of gas or electricity shall mean the receipts received from
3 customers representing the noncommodity charges for gas or electric
4 service. (3) Provided, further,] gross income with respect to a provid-
5 er of telecommunication services shall not include receipts from the
6 sale of telecommunication services as such services are defined in
7 section one hundred eighty-six-e of this article. [(4) Provided,
8 further, sales of gas, electricity, steam, water or refrigeration or
9 gas, electric, steam, water or refrigerator service to a landlord that
10 is a person as defined in this subdivision for resale by such landlord
11 to a tenant, for consumption by such tenant as an incident to such land-
12 lord’s activity of renting premises to such tenant, shall be subject to
13 the tax imposed under this section even though such sales are not for
14 ultimate consumption by such landlord. Provided, further, receipts
15 derived by a landlord from the resale for such gas, electricity, steam,
16 water or refrigeration or furnishing gas, electric, steam, water or
17 refrigerator service to such tenant shall be conclusively presumed to be
18 equal to such landlord’s cost of the same, and, if the tax under this
19 section was imposed on the sale to such landlord, no additional tax
20 under this section shall be owing on the sale by such landlord to such
21 tenant. If, however, the tax under this section was not imposed on such
22 sale to the landlord, then such landlord on the sale to its tenant shall
23 file a return hereunder based on such landlord’s cost (including any
24 associated transportation cost) of such gas, electricity, steam, water
25 or refrigeration or gas, electric, steam, water or refrigerator service.
26 (5) "Gross income"] Provided further, "gross income" with respect to
27 such persons described in such subdivision (a) also includes profits
28 from the sale of securities; also profits from the sale of real property
470 13001-04-9
1 growing out of the ownership or use of or interest in such property;
2 also profit from the sale of personal property (other than property of a
3 kind which would properly be included in the inventory of the taxpayer
4 if on hand at the close of the period for which a return is made); also
5 receipts from interest, dividends, and royalties, derived from sources
6 within this state other than such as are received from a corporation a
7 majority of whose voting stock is owned by the taxpaying utility, with-
8 out any deduction therefrom for any expenses whatsoever incurred in
9 connection with the receipt thereof, also profits from any transaction
10 (except sales for resale and rentals) within this state whatsoever; (3)
11 When used in reference to persons described in paragraph (b) of subdivi-
12 sion one of this section, the words "gross income" means and include all
13 receipts received in or by reason of any sale, conditional or otherwise,
14 made or services rendered, in this state of the transportation, trans-
15 mission or distribution of gas or electricity by means of conduits,
16 mains, pipes, wires, lines or the like, including cash, credits and
17 property of any kind or nature (whether or not such sale is made or such
18 service is rendered for profit), without any deduction therefrom on
19 account of property sold, the cost of materials used, labor or services
20 or other costs, interest or discount paid, or any other expense whatso-
21 ever. Provided, however, receipts from the following sales shall be
22 excluded: (i) sales of the transportation, transmission or distribution
23 of gas or electricity to (A) a utility which is supervised by this state
24 or another jurisdiction (where an element of such supervision includes
25 rate regulation), (B) a municipality which owns and operates facilities
26 which are used to generate and distribute electricity or distribute gas
27 and which distributes and sells such electricity or gas solely at
28 retail, solely within its respective jurisdiction or (C) a public
471 13001-04-9
1 authority of this state; where, as the case may be, such utility or
2 authority purchasing such transportation, transmission or distribution
3 sells the gas or electricity being so transported, transmitted or
4 distributed or (ii) sales of the transportation, transmission or
5 distribution of electricity to a municipality where the electricity
6 being transported has been purchased by such municipality has been
7 generated solely by and purchased solely from the state or a public
8 authority of the state (except where the electricity being transported
9 constitutes temporary substitution power being supplied during outages
10 or periods of reduced output) and where such municipality purchasing
11 such transportation, transmission or distribution sells solely at
12 retail, solely within its respective jurisdiction, the electricity being
13 so transported, transmitted or distributed; (4) Provided, further,
14 receipts received from the sale of the transportation, transmission or
15 distribution of gas or electricity shall mean the receipts received from
16 customers representing the noncommodity charges for gas or electric
17 service; and (d) [the words "gross operating income" mean and include
18 receipts received in or by reason of any sale, conditional or otherwise,
19 made for ultimate consumption or use by the purchaser of gas, electric-
20 ity, steam, water or refrigeration, or in or by reason of the furnishing
21 for such consumption or use of gas, electric, steam, water or refrigera-
22 tor service in this state, including cash, credits and property of any
23 kind or nature, without any deduction therefrom on account of the cost
24 of the property sold, the cost of materials used, labor or services or
25 other costs, interest or discount paid, or any other expenses whatsoev-
26 er. Provided, further, sales of gas, electricity, steam, water or
27 refrigeration or gas, electric, steam, water or refrigerator service to
28 a landlord that is a person as defined in this subdivision for resale by
472 13001-04-9
1 such landlord to a tenant, for consumption by such tenant as an incident
2 to such landlord’s activity of renting premises to such tenant, shall be
3 subject to the tax imposed under this section even though such sales are
4 not for ultimate consumption by such landlord. Provided, further,
5 receipts derived by a landlord from the resale of such gas, electricity,
6 steam, water or refrigeration or furnishing gas, electric, steam, water
7 or refrigerator service to such tenant shall be conclusively presumed to
8 be equal to such landlord’s cost of the same, and, if the tax under this
9 section was imposed on the sale to such landlord, no additional tax
10 under this section shall be owing on the sale by such landlord to such
11 tenant. If the tax under this section was not imposed on such sale to
12 the landlord, then such landlord on the sale to its tenant shall file a
13 return hereunder based on such landlord’s cost (including any associated
14 transportation cost) of such gas, electricity, steam, water or refriger-
15 ation or gas, electric, steam, water or refrigerator service; (e)] the
16 term "telecommunication services" shall have the same meaning as such
17 term is defined in section one hundred eighty-six-e of this article[;
18 (f) The word "premises" means and includes any real property or part
19 thereof, and any structure thereon or space therein; and (g) the word
20 "tenant" means and includes a person paying, or required to pay, rent
21 for premises as a lessee, sublessee, licensee or concessionaire].
22 4. Every utility subject to tax hereunder shall file, on or before
23 March fifteenth of each year, a return for the year ended on the preced-
24 ing December thirty-first, [except that the year ended on December thir-
25 ty-first, nineteen hundred seventy-six shall be deemed, for the purposes
26 of this subdivision, to have commenced on June first, nineteen hundred
27 seventy-six, including any period for which the tax imposed hereby or by
28 any amendment hereof is effective,] each of which returns shall state,
473 13001-04-9
1 as the case may be, the gross income or that part of gross [operating]
2 income derived from the transportation, transmission, or distribution of
3 gas or electricity for the period covered by each such return. Returns
4 shall be filed with the commissioner [of taxation and finance] on a form
5 to be furnished by the commissioner for such purpose and shall contain
6 such other data, information or matter as the commissioner may require
7 to be included therein. Notwithstanding the foregoing provisions of this
8 subdivision, the commissioner may require any utility to file an annual
9 return, which shall contain any data specified by the commissioner,
10 regardless of whether the utility is subject to tax under this section[;
11 and the commissioner may require a landlord selling to a tenant gas,
12 electric, steam, water or refrigeration or furnishing gas, electric,
13 steam, water or refrigerator service, where the same has been subjected
14 to tax under this section on the sale to such landlord, to file, on or
15 before the fifteenth day of March of each year, an information return
16 for the year ended on the preceding December thirty-first, covering such
17 year in such form and containing such data as the commissioner may spec-
18 ify]. Every return shall have annexed thereto a certification by the
19 head of the utility making the same, or of the owner or of a co-partner
20 thereof, or of a principal officer of the corporation, if such business
21 be conducted by a corporation, to the effect that the statements
22 contained therein are true.
23 § 6. Paragraph (a) of subdivision 1 of section 186-c of the tax law,
24 as amended by section 123 of part A chapter 389 of the laws of 1997, is
25 amended to read as follows:
26 (a) (1) Every utility doing business in the metropolitan commuter
27 transportation district shall pay a tax surcharge, in addition to the
28 tax imposed by section one hundred eighty-six-a of this article, for all
474 13001-04-9
1 or any parts of its taxable years commencing on or after January first,
2 nineteen hundred eighty-two but ending before December thirty-first, two
3 thousand one, to be computed at the rate of eighteen per centum of the
4 tax imposed under section one hundred eighty-six-a of this article for
5 such taxable years or any part of such taxable years ending before
6 December thirty-first, nineteen hundred eighty-three after the deduction
7 of any credits otherwise allowable under this article, and at the rate
8 of seventeen per centum of the tax imposed under such section for such
9 taxable years or any part of such taxable years ending on or after
10 December thirty-first, nineteen hundred eighty-three after the deduction
11 of credits otherwise allowable under this article except any utility
12 credit provided for by article thirteen-A of this chapter; provided,
13 however, that such rates of tax surcharge shall be applied only to that
14 portion of the tax imposed under section one hundred eighty-six-a of
15 this article after the deduction of credits otherwise allowable under
16 this article, except any utility credit provided for by article thir-
17 teen-A of this chapter, which is attributable to the taxpayer’s gross
18 income or gross operating income from business activity carried on with-
19 in the metropolitan commuter transportation district; and provided,
20 further, that the tax surcharge imposed by this section shall not be
21 imposed upon any taxpayer for more than two hundred twenty-eight months.
22 (2) Provided however, that (A) commencing October first, nineteen
23 hundred ninety-eight such tax surcharge shall be calculated as if the
24 tax imposed under section one hundred eighty-six-a of this article were
25 imposed at a rate of three and one-half percent, and that (B) commencing
26 January first, nineteen hundred ninety-nine, in the case of (i) the tax
27 imposed under paragraph (a) of subdivision one of section one hundred
28 eighty-six-a of this article (relating to providers of telecommuni-
475 13001-04-9
1 cations services) and (ii) the tax imposed under paragraph (b) of subdi-
2 vision one of section one hundred eighty-six-a of this article on gross
3 income derived from the transportation, transmission or distribution of
4 gas or electricity, such tax surcharge shall be calculated as if the tax
5 imposed under section one hundred eighty-six-a of this article were
6 imposed at a rate of three and one-half percent.
7 § 7. Sections 189 and 189-a of the tax law are REPEALED.
8 § 8. Subdivision 3 of section 192 of the tax law is REPEALED.
9 § 9. Subdivision 1 of section 197-a of the tax law, as amended by
10 chapter 2 of the laws of the laws of 1995, is amended to read as
11 follows:
12 1. Every taxpayer subject to the taxes imposed under sections one
13 hundred eighty-two, one hundred eighty-two-a, former section one hundred
14 eighty-two-b, one hundred eighty-four, [one hundred eighty-six,] one
15 hundred eighty-six-a or one hundred eighty-six-e of this chapter shall
16 make a declaration of its estimated tax for the current taxable year,
17 containing such information as the commissioner may prescribe by regu-
18 lations or instructions, if such estimated tax can reasonably be
19 expected to exceed one thousand dollars. If a taxpayer is subject to the
20 tax surcharge imposed under section one hundred eighty-four-a[, one
21 hundred eighty-six-b] or one hundred eighty-six-c of this chapter and
22 such taxpayer’s estimated tax under section one hundred eighty-four[,
23 one hundred eighty-six] or one hundred eighty-six-a of this chapter,
24 respectively, can reasonably be expected to exceed one thousand dollars,
25 such taxpayer shall also make a declaration of its estimated tax
26 surcharge for the current taxable year.
476 13001-04-9
1 § 10. Paragraph (a) of subdivision 1 and subdivision 6 of section
2 197-b of the tax law, as amended by chapter 2 of the laws of 1995, are
3 amended to read as follows:
4 (a) For taxable years beginning on or after January first, nineteen
5 hundred seventy-seven, every taxpayer subject to tax under section one
6 hundred eighty-two, one hundred eighty-two-a, former section one hundred
7 eighty-two-b, one hundred eighty-four, [one hundred eighty-six,] one
8 hundred eighty-six-a or one hundred eighty-six-e, shall pay in each such
9 year an amount equal to twenty-five percent of the tax imposed under
10 each of such sections for the preceding taxable year, if such preceding
11 year’s tax exceeded one thousand dollars. If such preceding year’s tax
12 under section one hundred eighty-four, [one hundred eighty-six,] one
13 hundred eighty-six-a or one hundred eighty-six-e exceeded one thousand
14 dollars and such taxpayer is subject to the tax surcharge imposed by
15 section one hundred eighty-four-a[, one hundred eighty-six-b] or one
16 hundred eighty-six-c, respectively, such taxpayer shall also pay in each
17 such year an amount equal to twenty-five percent of the tax surcharge
18 imposed under such section for the preceding taxable year. Such amount
19 or amounts shall be paid with the return or report required to be filed
20 with respect to such tax or tax surcharge for such preceding taxable
21 year or with an application for extension of the time for filing such
22 return or report.
23 6. As used in this section, "the preceding year’s tax" means the tax
24 imposed upon the taxpayer by section one hundred eighty-two, former
25 section one hundred eighty-two-b, one hundred eighty-four, [one hundred
26 eighty-six,] one hundred eighty-six-a or one hundred eighty-six-e for
27 the preceding taxable year.
477 13001-04-9
1 § 11. Subdivision 9 of section 208 of the tax law is amended by adding
2 two new paragraphs (c-2) and (c-3) to read as follows:
3 (c-2) Adjustments by qualified public utilities. (1) In the case of a
4 taxpayer which is a qualified public utility, entire net income shall be
5 computed with the adjustments set forth in this paragraph.
6 (2) Definitions. (A) Qualified public utility. The term "qualified
7 public utility" means a taxpayer which:
8 (i) on December thirty-first, nineteen hundred ninety-eight, was
9 subject to the ratemaking supervision of the state department of public
10 service, and
11 (ii) for the year ending on December thirty-first, nineteen hundred
12 ninety-eight, was subject to tax under section one hundred eighty-six of
13 this chapter.
14 (B) Transition property. The term "transition property" means depreci-
15 able property placed in service by the taxpayer before January first,
16 nineteen hundred ninety-nine.
17 (3) Federal depreciation disallowed. With respect to transition prop-
18 erty, the deduction for federal income tax purposes for depreciation
19 shall not be allowed.
20 (4) New York depreciation. With respect to transition property, a
21 deduction shall be allowed for the depreciation expense shown on the
22 books and records of the taxpayer for the taxable year and determined in
23 accordance with generally accepted accounting principles.
24 (5) Regulatory assets. A deduction shall be allowed for amounts recog-
25 nized as expense on the books and records of the taxpayer for the taxa-
26 ble year, which amounts were recognized as expense for federal income
27 tax purposes in a taxable year ending on or before December thirty-
28 first, nineteen hundred ninety-eight, where:
478 13001-04-9
1 (A) such amounts represent expenditures which, when made, were charged
2 to a deferred debit account or similar asset account on the books and
3 records of the taxpayer, and where
4 (B) the recognition of expense on the books and records of the taxpay-
5 er is matched by revenue stemming from a procedure or adjustment allow-
6 ing the recovery of such expenditures, and where
7 (C) such revenue is recognized for federal income tax purposes in the
8 taxable year.
9 (6) Basis for gain or loss. (A) Recognition transactions. (i) General
10 rule - book basis. Except as provided in subclause (ii) of this clause,
11 where transition property is sold or otherwise disposed of in the taxa-
12 ble year in a transaction of the type requiring recognition of gain or
13 loss for federal income tax purposes, the basis for determining the
14 amount of such gain or loss under this article shall be the cost of the
15 property less the accumulated depreciation on the property determined on
16 the books and records of the taxpayer in accordance with generally
17 accepted accounting principles.
18 (ii) Qualified gain - New York basis. Where a sale or disposition
19 described in subclause (i) of this clause results in recognition of gain
20 for federal income tax purposes, and where either (I) such recognition
21 occurs in a taxable year ending after nineteen hundred ninety-eight and
22 before two thousand nine, or (II) such recognition is with respect to a
23 nuclear electric generating facility, the basis for determining the
24 amount of such gain under this article shall be the cost of the property
25 less the aggregate of the New York depreciation deductions on the prop-
26 erty determined under subparagraph four of this paragraph.
27 (iii) No conversion of gain to loss. In the event that the basis
28 determined under subclause (ii) of this clause results in determination
479 13001-04-9
1 of a loss on the sale or disposition of the property, no gain or loss
2 shall be recognized under this article with respect to such sale or
3 disposition.
4 (B) Nonrecognition transactions. (i) Carryover basis. (I) Where tran-
5 sition property is disposed of ("original disposition") in a transaction
6 of a type requiring deferral of recognition of gain or loss for federal
7 income tax purposes, and where
8 (II) there is a subsequent recognition of gain or loss for federal
9 income tax purposes ("clause B gain or loss"), the amount of which is
10 determined by reference, in whole or in part, to the basis of such tran-
11 sition property ("underlying transition property"), then
12 (III) the amount of such clause B gain or loss under this article
13 shall be adjusted as provided in subclause (ii) or (iii) of this clause.
14 (ii) General rule - book basis adjustment. Except as provided in
15 subclause (iii) of this clause, the amount of clause B gain shall be
16 reduced, or the amount of clause B loss increased, by the amount by
17 which the book basis of the underlying transition property on the date
18 of original disposition (determined using the provisions of subclause
19 (i) of clause (A) of this subparagraph) exceeds the federal income tax
20 basis of such property on such date.
21 (iii) Qualified gain - New York basis adjustment. Where clause B gain
22 either (I) occurs in a taxable year ending after nineteen hundred nine-
23 ty-eight and before two thousand nine, or (II) is with respect to a
24 nuclear electric generating facility, the amount of such gain under this
25 article shall be reduced, but not below zero, by the amount by which the
26 New York basis of the underlying transition property on the date of
27 original disposition (determined using the provisions of subclause (ii)
480 13001-04-9
1 of clause (A) of this subparagraph) exceeds the federal income tax basis
2 of such property on such date.
3 (iv) Application to replacement property and transferee taxpayers.
4 This clause shall apply whether the clause B gain or loss:
5 (I) is with respect to either transition property or depreciable prop-
6 erty the basis of which is determined by reference to transition proper-
7 ty,or
8 (II) is recognized by either a qualified public utility or by a
9 taxpayer which is a transferee of transition property (whether or not
10 such transferee is a qualified public utility, notwithstanding subpara-
11 graph one of this paragraph).
12 (c-3) Depreciation adjustments by qualified power producers. (1) In
13 the case of a taxpayer which is a qualified power producer, entire net
14 income shall be computed with the depreciation adjustments set forth in
15 this paragraph.
16 (2) Definitions. (A) Qualified power producer. The term "qualified
17 power producer" means a taxpayer which:
18 (i) on December thirty-first, nineteen hundred ninety-eight, was not
19 subject to the ratemaking supervision of the state department of public
20 service, and
21 (ii) for the year ending on December thirty-first, nineteen hundred
22 ninety-eight, was subject to tax under section one hundred eighty-six of
23 this chapter on account of its being principally engaged in the business
24 of supplying electricity.
25 (B) Qualified power producer transition property. The term "qualified
26 power producer transition property" means depreciable property placed in
27 service by the taxpayer before January first, nineteen hundred ninety-
28 nine.
481 13001-04-9
1 (3) Federal depreciation disallowed. With respect to qualified power
2 producer transition property, the deduction for federal income tax
3 purposes for depreciation shall not be allowed.
4 (4) New York depreciation. With respect to qualified power producer
5 transition property, a deduction shall be allowed for the depreciation
6 expense computed as provided in this subparagraph.
7 (A) All qualified power producer transition property shown on the
8 books and records of the taxpayer on January first, nineteen hundred
9 ninety-nine shall be treated as a single asset placed in service on such
10 date. The New York basis for purposes of computing the depreciation
11 deduction on such single asset shall be the net book value of such qual-
12 ified power producer transition property determined on the first day of
13 the federal taxable year ending in nineteen hundred ninety-nine (or on
14 the date any such property is placed in service, if later) adjusted as
15 provided in clause (B) of this subparagraph.
16 (B) If qualified power producer transition property is sold or other-
17 wise disposed of, the New York basis of the single asset shall be
18 reduced on the date of such sale or disposition by the amount of the
19 adjusted federal tax basis of such property on such date.
20 (C) The New York depreciation deduction allowed for any taxable year
21 with respect to such single asset shall be computed using the straight-
22 line method, a twenty-year life, and a salvage value of zero.
23 (D) For purposes of this subparagraph, the term "net book value" means
24 cost reduced by accumulated depreciation shown on the books and records
25 of the taxpayer and determined in accordance with generally accepted
26 accounting principles.
27 § 12. Subdivision 4 of section 209 of the tax law, as amended by chap-
28 ter 659 of the laws of 1993, is amended to read as follows:
482 13001-04-9
1 4. Corporations liable to tax under sections one hundred eighty-three
2 to one hundred [eighty-six] eighty-five, inclusive, corporations taxable
3 under articles thirty-two and thirty-three of this chapter, any trust
4 company organized under a law of this state all of the stock of which is
5 owned by not less than twenty savings banks organized under a law of
6 this state, bank holding companies filing a combined return in accord-
7 ance with subdivision (f) of section fourteen hundred sixty-two of this
8 chapter and housing companies organized and operating pursuant to the
9 provisions of article two or article five of the private housing finance
10 law and housing development fund companies organized pursuant to the
11 provisions of article eleven of the private housing finance law shall
12 not be subject to tax under this article.
13 § 13. Paragraph (b) of subdivision 1-c of section 210 of the tax law,
14 as amended by chapter 760 of the laws of 1992, is amended to read as
15 follows:
16 (b) is not a corporation over fifty percent of the number of shares of
17 stock of which entitling the holders thereof to vote for the election of
18 directors or trustees is owned by a taxpayer which (1) is subject to tax
19 under this article; section one hundred eighty-three, one hundred eight-
20 y-four[,] or one hundred eighty-five [or one hundred eighty-six] of
21 article nine; article thirty-two or thirty-three of this chapter, and
22 (2) does not qualify as a small business corporation as defined in para-
23 graph three of subsection (c) of section twelve hundred forty-four of
24 the internal revenue code (without regard to the second sentence of
25 subparagraph (A) thereof) as of the last day of its taxable year ending
26 within or with the taxable year of the taxpayer,
483 13001-04-9
1 § 13-a. Clause (B) of subparagraph 2 of paragraph (a) of subdivision 3
2 of section 210 of the tax law, as amended by chapter 760 of the laws of
3 1992, is amended to read as follows:
4 (B) services performed within the state, provided, however, that (i)
5 in the case of a taxpayer engaged in the business of publishing newspa-
6 pers or periodicals, receipts arising from sales of advertising
7 contained in such newspapers and periodicals shall be deemed to arise
8 from services performed within the state to the extent that such newspa-
9 pers and periodicals are delivered to points within the state, (ii)
10 receipts from an investment company arising from the sale of management,
11 administration or distribution services to such investment company shall
12 be deemed to arise from services performed within the state to the
13 extent set forth in subparagraph six of this paragraph [and], (iii) in
14 the case of taxpayers principally engaged in the activity of air freight
15 forwarding acting as principal and like indirect air carriage receipts
16 arising from such activity shall arise from services performed within
17 the state as follows: one hundred percent of such receipts if both the
18 pickup and delivery associated with such receipts are made in this state
19 and fifty percent of such receipts if either the pickup or delivery
20 associated with such receipts is made in this state, and (iv) in the
21 case of receipts arising from the transportation or transmission of gas
22 through pipes, the portion of such receipts which constitute receipts
23 from services performed within the state shall be the product of (I) the
24 total of such receipts and (II) a fraction, the numerator of which is
25 the taxpayer’s transportation units within the state and the denominator
26 of which is the taxpayer’s transportation units within and without the
27 state. A transportation unit is the transportation of one cubic foot of
28 gas over a distance of one mile,
484 13001-04-9
1 § 14. Subparagraph 1 of paragraph (j) of subdivision 12 of section 210
2 of the tax law, as amended by chapter 61 of the laws of 1989, is amended
3 to read as follows:
4 (1) over fifty percent of the number of shares of stock entitling the
5 holders thereof to vote for the election of directors or trustees is
6 owned or controlled, either directly or indirectly, by a taxpayer
7 subject to tax under this article; section one hundred eighty-three, one
8 hundred eighty-four[,] or one hundred eighty-five [or one hundred eight-
9 y-six] of article nine; article thirty-two or thirty-three of this chap-
10 ter; or
11 § 14-a. Subdivision 25 of section 210 of the tax law, as renumbered by
12 section 128 of part A of chapter 389 of the laws of 1997, is renumbered
13 subdivision 26 and a new subdivision 25 is added to read as follows:
14 25. Transitional credit in support of competitive energy markets. (a)
15 General. A taxpayer which is a seller of gas or electricity and which is
16 not subject to rate regulation by the state department of public service
17 on the sale of such gas and electricity shall be allowed a credit, to be
18 computed as hereinafter provided, against the tax imposed by this arti-
19 cle.
20 (b) Amount of the credit. The amount of the credit shall be equal to
21 the sales tax imposed and reported under subdivision (b) of section
22 eleven hundred five of this chapter on receipts from the sale of the
23 transportation, transmission or distribution of gas or electricity,
24 where the gas or electricity being so transported, transmitted or
25 distributed was sold by the taxpayer during the period from April first,
26 nineteen hundred ninety-nine to and including March thirty-first, two
27 thousand and such transportation, transmission or distribution is also
28 provided during such period. The amount received from the sale of trans-
485 13001-04-9
1 portation, transmission or distribution of such gas or electricity shall
2 mean the receipts received from purchasers representing the non-commodi-
3 ty charges for gas or electric service. If the taxpayer allowed a credit
4 under this subdivision is also the person required to collect the sales
5 tax on the transportation, transmission or distribution of such gas or
6 electricity, such credit shall only be taken for the taxable year during
7 which such sales tax is paid over to the commissioner. The person sell-
8 ing the transportation, transmission or distribution of such gas or
9 electricity shall, where such person is subject to rate regulation by
10 the state department of public service, certify to the commissioner and
11 to each taxpayer allowed a credit under this subdivision the aggregate
12 amount of such sales tax imposed on receipts from the sale of transpor-
13 tation, transmission or distribution with respect to those customers to
14 whom such taxpayer sold such gas and electricity. Each such certif-
15 ication shall be made for each calendar month during the period from
16 April of nineteen hundred ninety-nine to and including March of two
17 thousand and shall be part of, and filed with, the part-quarterly or
18 quarterly return or report required to be filed by such person under
19 section eleven hundred thirty-six of this chapter. In the event that a
20 customer is purchasing gas or electricity concurrently from more than
21 one seller, the commissioner, may in the commissioner’s discretion,
22 fairly apportion the credit hereunder among the several sellers.
23 (c) Carryovers. The credit and carryovers of such credit allowed under
24 this subdivision for any taxable year shall not, in the aggregate,
25 reduce the tax due for such year to less than the higher of the amounts
26 prescribed in paragraphs (c) and (d) of subdivision one of this section.
27 However, if the amount of credit or carryovers of such credit, or both,
28 allowed under this subdivision for any taxable year reduces the tax to
486 13001-04-9
1 such amount, any amount of credit or carryovers of such credit thus not
2 deductible in such taxable year may be carried over to the following
3 year or years and may be deducted from the tax for such year or years.
4 In lieu of such carryover, a taxpayer may elect to treat the amount of
5 such carryover as an overpayment of tax to be credited or refunded in
6 accordance with the provisions of section ten hundred eighty-six of this
7 chapter, provided, however, the provisions of subsection (c) of section
8 ten hundred eighty-eight of this chapter notwithstanding, no interest
9 shall be paid thereon.
10 § 14-b. Paragraph 1 of subsection (i) of section 606 of the tax law,
11 as separately amended by sections 56, 105 and 130 of part A of chapter
12 389 of the laws of 1997, is amended to read as follows:
13 (1) For purposes of determining the application under this section of
14 the credit provisions enumerated in the following table, a shareholder
15 of a New York S corporation:
16 (A) shall be treated as the taxpayer with respect to his or her pro
17 rata share of the corresponding credit base of such corporation, deter-
18 mined for the corporation’s taxable year ending with or within the
19 shareholder’s taxable year and
20 (B) shall be treated as the owner of a new business with respect to
21 such share if the corporation qualifies as a new business pursuant to
22 paragraph (j) of subdivision twelve of section two hundred ten of this
23 chapter, unless the shareholder has previously received a refund by
24 reason of the application of this subparagraph, or this subsection as it
25 was in effect for taxable years beginning before nineteen hundred nine-
26 ty-four.
27 The corporation’s
487 13001-04-9
1 With respect to the credit base under
2 following credit section two hundred ten
3 under this section: or section fourteen
4 hundred fifty-six of this
5 chapter is:
6 Investment tax credit Investment credit base
7 under subsection (a) or qualified
8 rehabilitation
9 expenditures under
10 subdivision twelve of
11 section two hundred ten
12 Economic development Cost or other basis
13 zone investment tax credit under subdivision
14 under subsection (j) twelve-B
15 of section two hundred
16 ten
17 Economic development Eligible wages under
18 zone wage tax credit subdivision nineteen of
19 under subsection (k) section two hundred ten
20 or subsection (e) of
21 section fourteen hundred
22 fifty-six
23 Economic development zone Qualified investments
24 capital tax credit and contributions under
25 under subsection (1) subdivision twenty of
26 section two hundred ten
27 or subsection (d) of
28 section fourteen hundred
488 13001-04-9
1 fifty-six
2 Agricultural property tax Allowable school
3 credit under subsection (n) district property taxes under
4 subdivision twenty-two of
5 section two hundred ten
6 Credit for employment Qualified first-year wages or
7 of persons with dis- qualified second-year wages
8 abilities under under subdivision
9 subsection (o) twenty-three of section
10 two hundred ten
11 or subsection (f)
12 of section fourteen
13 hundred fifty-six
14 Employment incentive Applicable investment credit
15 credit under subsec- base under subdivision
16 tion (a-1) twelve-D
17 Economic develop- Applicable investment
18 ment zone employment credit under sub-
19 incentive credit under division twelve-C
20 subsection (j-1)
21 Alternative fuels credit Cost under subdivision
22 under subsection (p) twenty-four
23 Transitional credit in support Amount set forth under
24 of competitive energy markets subdivision twenty-five of
25 under subsection (q) section two hundred ten
26 § 14-c. Subsections (q) and (r) of section 606 of the tax law, as
27 relettered by chapter 142 of the laws of 1997, are relettered
489 13001-04-9
1 subsections (r) and (s) and a new subsection (q) is added to read as
2 follows:
3 (q) Transitional credit in support of competitive energy markets. (1)
4 General. A taxpayer who is a seller of gas or electricity and who is not
5 subject to rate regulation by the state department of public service on
6 the sale of such gas and electricity shall be allowed a credit, to be
7 computed as hereinafter provided, against the tax imposed by this arti-
8 cle.
9 (2) Amount of credit. The amount of the credit shall be equal to the
10 sales tax imposed and reported under subdivision (b) of section eleven
11 hundred five of this chapter on receipts from the sale of transporta-
12 tion, transmission or distribution of gas and electricity, where the gas
13 or electricity being so transported, transmitted or distributed was sold
14 by the taxpayer during the period from April first, nineteen hundred
15 ninety-nine to and including March thirty-first, two thousand and such
16 transportation, transmission or distribution is also provided during
17 such period. The amount received from the sale of transportation, trans-
18 mission or distribution of such gas or electricity shall mean the
19 receipts received from purchasers representing the non-commodity charges
20 for gas or electric service. If the taxpayer allowed a credit under this
21 subsection is also the person required to collect the sales tax on the
22 transportation, transmission or distribution of such gas or electricity,
23 such credit shall only be taken for the taxable year during which such
24 sales tax is paid over to the commissioner. The person selling the
25 transportation, transmission or distribution of such gas or electricity
26 shall, where such person is subject to rate regulation by the state
27 department of public service, certify to the commissioner and to each
28 taxpayer allowed a credit under this subsection the aggregate amount of
490 13001-04-9
1 such sales tax imposed on receipts from the sale of transportation,
2 transmission or distribution with respect to those customers to whom
3 such taxpayer sold such gas and electricity. Each such certification
4 shall be made for each calendar month during the period from April of
5 nineteen hundred ninety-nine to and including March of two thousand and
6 shall be part of, and filed with, the part-quarterly or quarterly return
7 or report required to be filed by such person under section eleven
8 hundred thirty-six of this chapter. In the event that a customer is
9 purchasing gas or electricity concurrently from more than one seller,
10 the commissioner, may in the commissioner’s discretion, fairly apportion
11 the credit hereunder among the several sellers.
12 (3) Carryovers. If the amount of the credit and carryovers of such
13 credit allowed under this subsection for any taxable year shall exceed
14 the taxpayer’s tax for such year, the excess, as well as any part of the
15 credit or carryovers of such credit, or both, may be carried over to the
16 following year or years and may be deducted from the taxpayer’s tax for
17 such year or years. In lieu of carrying over any such excess, a taxpay-
18 er may, at his or her option, receive such excess as a refund. Any
19 refund paid pursuant to this paragraph shall be deemed to be a refund of
20 an overpayment of tax as provided in section six hundred eighty-six of
21 this article, provided, however, that no interest shall be paid thereon.
22 § 15. Paragraph 3 of subsection (c) of section 1085 of the tax law, as
23 added by chapter 166 of the laws of 1991, is amended to read as follows:
24 (3) The provisions of this subsection and subsections (d) and (e) of
25 this section shall apply to the failure of a taxpayer to file a declara-
26 tion of estimated tax surcharge or the failure to pay all or any part of
27 an amount which is applied as an installment against such estimated tax
28 surcharge pursuant to sections one hundred ninety-seven-a, one hundred
491 13001-04-9
1 ninety-seven-b, two hundred thirteen-a, two hundred thirteen-b, fourteen
2 hundred sixty, fourteen hundred sixty-one, fifteen hundred thirteen and
3 fifteen hundred fourteen of this chapter. For purposes of applying this
4 section and subsections (d) and (e) of this section to the estimated tax
5 surcharge, where appropriate the term "tax" shall be read to mean "tax
6 surcharge," and the terms "amount required to be paid," "amount which
7 would be required to be paid," and "amount which would have been
8 required to be paid" shall be computed as the product of (1) such amount
9 computed without regard to the tax surcharges imposed under sections one
10 hundred eighty-four-a, [one hundred eighty-six-b,] one hundred eighty-
11 six-c, one hundred eighty-eight, two hundred nine-A, two hundred nine-B,
12 fourteen hundred fifty-five-A, fourteen hundred fifty-five-B, fifteen
13 hundred five-a, and fifteen hundred twenty, and (2) the MTA percentage.
14 The term "MTA percentage" shall mean the product of (A) the tax rate
15 applicable under such sections imposing such surcharges and (B) the
16 percentage utilized in determining the portion of the taxpayer’s busi-
17 ness activity carried on within the metropolitan commuter transportation
18 district under such sections.
19 § 15-a. Subdivision (f) of section 1146 of the tax law is relettered
20 subdivision (h) and a new subdivision (f) is added to read as follows:
21 (f) Notwithstanding the provisions of subdivision (a) of this section,
22 the commissioner shall disclose to a person which is or may be allowed a
23 credit under subdivision twenty-five of section two hundred ten of this
24 chapter or subsection (q) of section six hundred six of this chapter
25 returns or reports filed under this article or the particulars set forth
26 or disclosed in any such return or report, but only to the extent that
27 such disclosure is necessary to administer and enforce such credits with
28 respect to such person and only so much of such reports, returns or the
492 13001-04-9
1 facts shown thereby as are, in the commissioner’s discretion, pertinent
2 to such administration or enforcement.
3 § 16. Paragraph 9 of subsection (a) of section 1452 of the tax law, as
4 amended by chapter 298 of the laws of 1985, is amended to read as
5 follows:
6 (9) any corporation sixty-five percent or more of whose voting stock
7 is owned or controlled, directly or indirectly, by a corporation or
8 corporations subject to article three-a of the banking law, or regis-
9 tered under the federal bank holding company act of nineteen hundred
10 fifty-six, as amended, or registered as a savings and loan holding
11 company (but excluding a diversified savings and loan holding company)
12 under the federal national housing act, as amended, or by a corporation
13 or corporations described in any of the foregoing paragraphs of this
14 subsection, provided the corporation whose voting stock is so owned or
15 controlled is principally engaged in a business, regardless of where
16 conducted, which (i) might be lawfully conducted by a corporation
17 subject to article three of the banking law or by a national banking
18 association or (ii) is so closely related to banking or managing or
19 controlling banks as to be a proper incident thereto, as set forth in
20 paragraph eight of subsection (c) of section four of the federal bank
21 holding company act of nineteen hundred fifty-six, as amended; and
22 provided, further, that in no event shall a corporation principally
23 engaged in a business described in section one hundred eighty-three[,]
24 or one hundred eighty-four, or section one hundred eighty-six as it was
25 in effect on December thirty-first, nineteen hundred ninety-eight, of
26 this chapter be subject to the tax imposed under this article if any of
27 its business receipts from such principally engaged in business are from
28 other than a corporation (A) which owns or controls, directly or indi-
493 13001-04-9
1 rectly, sixty-five percent or more of its voting stock, or (B) sixty-
2 five percent or more of whose voting stock is owned or controlled,
3 directly or indirectly, by the corporation engaged in such business, or
4 (C) sixty-five percent or more of whose voting stock is owned or
5 controlled, directly or indirectly, by the same interest.
6 § 17. Section 25-u of the general city law, as added by chapter 551 of
7 the laws of 1985, is amended to read as follows:
8 § 25-u. Construction. Nothing contained in this article shall be
9 construed as reducing the amount of a receipt for sales tax purposes
10 under any of the sales taxes imposed or authorized by article twenty-
11 eight or twenty-nine of the tax law; or as reducing the gross receipts,
12 the gross income or the gross operating income subject to tax pursuant
13 to section [one hundred eighty-six or] one hundred eighty-six-a of the
14 tax law or authorized to be subjected to tax by section twelve hundred
15 one of the tax law. The burden of establishing eligibility to claim the
16 benefits of this article shall rest with the party claiming such bene-
17 fits.
18 § 18. Section 25-x of the general city law, as added by chapter 331 of
19 the laws of 1987, is amended to read as follows:
20 § 25-x. Construction. Nothing contained in this article shall be
21 construed as reducing the amount of a receipt for sales tax purposes
22 under any of the sales taxes imposed or authorized by article twenty-
23 eight or twenty-nine of the tax law; or as reducing the gross receipts,
24 the gross income or the gross operating income subject to tax pursuant
25 to section [one hundred eighty-six or] one hundred eighty-six-a of the
26 tax law or authorized to be subjected to tax by section twelve hundred
27 one of the tax law. The burden of establishing eligibility to claim the
28 benefits of this article shall rest with party claiming such benefits.
494 13001-04-9
1 § 19. Subdivision 2 of section 1020-q of the public authorities law,
2 as added by chapter 517 of the laws of 1986, is amended to read as
3 follows:
4 2. The authority shall also make payments in lieu of taxes for those
5 taxes which would otherwise be imposed upon LILCO, if LILCO were to
6 continue in operation, pursuant to sections [one hundred eighty-six,]
7 one hundred eighty-six-a, and one hundred eighty-six-c of the tax law,
8 and sections one hundred eighty-six and one hundred eighty-six-b [and
9 one hundred eighty-six-c of the tax law] of the tax law as such sections
10 were in effect on December thirty-first, nineteen hundred ninety-eight,
11 paragraph (b) of subdivision four of section one hundred seventy-four of
12 the navigation law, and any taxes imposed by a city pursuant to the
13 authorization granted by section twenty-b of the general city law.
14 § 20. Transition provisions for former section 186 taxpayers. (a)
15 Previous year’s tax. In the case of a taxpayer subject to section 186 of
16 the tax law, for a taxable year ending on December 31, 1998, which is
17 subject to tax under article 9-A or 32 of the tax law for a taxable year
18 beginning on January 1, 1999, by reason of this act, with respect to
19 such taxable year under such article 9-A or 32 the term "tax" in the
20 phrase "tax shown on the return of the taxpayer for the preceding taxa-
21 ble year" in paragraph 1 of subdivision (d) of section 1085 of the tax
22 law, and in the phrase "tax shown on the taxpayer’s report for the
23 preceding taxable year" in paragraph a of subdivision 2 of section 213
24 of the tax law, and in the phrase "tax shown on the taxpayer’s return
25 for the preceding taxable year" in paragraph 1 of subdivision (b) of
26 section 1463 of the tax law, shall be read to refer to the tax shown on
27 such taxpayer’s return under such section 186 for such taxable year
28 ending on December 31, 1998.
495 13001-04-9
1 (b) Overpayments. In the case of a taxpayer subject to section 186 of
2 the tax law for a taxable year ending on December 31, 1998, which is
3 subject to tax under article 9-A or 32 of the tax law for a taxable year
4 beginning on January 1, 1999, by reason of this act, any amount of over-
5 payment of tax claimed on such taxpayer’s report under such section 186
6 for such taxable year ending on December 31, 1998, shall be subject to
7 the provisions of section 1086 of the tax law, except that the refer-
8 ences to credits of such overpayment against tax liability or estimated
9 tax shall be deemed to be references to tax liability and estimated tax
10 under such article 9-A or 32, as applicable.
11 (c) Mandatory first installments. Every taxpayer which (1) was subject
12 to tax under section 186 of the tax law for a taxable year ending on
13 December 31, 1998, (2) which had a tax liability under such section for
14 such year in excess of 1000 dollars, and (3) which is subject to tax
15 under article 9-A or 32 of the tax law for a taxable year beginning on
16 January 1, 1999, by reason of this act, shall make a payment to the
17 commissioner of taxation and finance on or before March 15, 1999. Such
18 payment shall be made in an amount equal to 25 percent of the taxpayer’s
19 liability for tax under section 186 for such taxable year ending on
20 December 31, 1998, plus, if the taxpayer is subject to the tax surcharge
21 imposed under section 209-b of the tax law for the taxable year begin-
22 ning on January 1, 1999, 25 percent of the taxpayer’s liability for tax
23 surcharge under section 186-b of the tax law for the taxable year ending
24 on December 31, 1998. Such payment shall be made pursuant to a procedure
25 established by such commissioner. Such commissioner may treat a payment
26 made pursuant to subdivision 1 of section 197-b of the tax law computed
27 based on tax due under section 186 of the tax law for the taxable year
28 ending on December 31, 1998, as the payment required to be made pursuant
496 13001-04-9
1 to the first sentence of this subdivision. Such payment shall constitute
2 a payment of estimated tax with respect to such taxpayer’s liability
3 under such article 9-A or 32 for such taxable year, and shall be deemed
4 to constitute a payment made pursuant to subdivision (a) of section
5 213-b or subsection (a) of section 1461, respectively, of the tax law.
6 (d) Credits. In the case of a taxpayer subject to tax under section
7 186 of the tax law, for the taxable year ending on December 31, 1998,
8 which by reason of this act is subject to article 9-A or 32 of the tax
9 law for a taxable year beginning on January 1, 1999, any portion of
10 credit allowed under section 187, 187-a or 187-b of the tax law for a
11 taxable year under such section 186 ending before January 1, 1999 which
12 may not be deducted from tax due under such section 186 for any taxable
13 year under such article ending before January 1, 1999 shall be treated,
14 for purposes of article 9-A or 32 of the tax law, respectively, as an
15 amount of credit allowed under subdivision 17, 23 or 24 of section 210
16 of the tax law or subsection (c) or (f) of section 1456 of the tax law,
17 as applicable, with respect to a taxable year under such article 9-A or
18 32 ending before January 1, 1999 but not deductible from tax due under
19 such article 9-A or 32 for any such year ending before January 1, 1999.
20 (e) EIC and Economic Development Zone EIC. In the case of a taxpayer
21 subject to tax under section 186 of the tax law for the taxable year
22 ending December 31, 1998 which by reason of this act is subject to arti-
23 cle 9-A of the tax law for a taxable year beginning on January 1, 1999
24 and which claims a credit under subdivision 12-C or 12-D of section 210
25 of the tax law with respect to its taxable year under such article 9-A
26 immediately succeeding such taxable year under article 9-A beginning on
27 January 1, 1999, the phrases "the taxable year immediately preceding the
28 taxable year for which the credit under such subdivision twelve-B is
497 13001-04-9
1 allowed" and "the taxable year immediately preceding the taxable year
2 for which the credit under such subdivision twelve is allowed" shall be
3 deemed to refer to the taxpayer’s taxable year under such section 186
4 which ends on December 31, 1998.
5 (f) General savings provision. Notwithstanding the repeal of sections
6 186 and 186-b of the tax law by section three of this act, the repeal of
7 sections 189 and 189-a of the tax law by section seven of this act, and
8 the repeal of subdivision 3 of section 192 of the tax law by section
9 eight of this act, all provisions of the tax law and of any regulations
10 adopted thereunder, with respect to the assessment, payment or payment
11 over, determination, collection and refund of taxes or surcharges,
12 imposed by such sections, and related interest and penalties, the filing
13 of forms and reports and the preservation of records for the purpose of
14 the taxes or surcharges imposed by such sections, the civil and criminal
15 penalties applicable to the violation of the provisions of such
16 sections, the secrecy of reports, and the disposition of revenues, shall
17 continue in effect with regard to all liabilities for such taxes or
18 surcharges (including any penalty and interest related thereto) incurred
19 prior to such repeal or prior to the effective date of such amendment,
20 as applicable.
21 § 21. Subdivision (b) of section 1101 of the tax law is amended by
22 adding a new paragraph 19 to read as follows:
23 (19) Gas and electric services. Gas service means "gas and gas
24 service," and electric service means "electricity and electric service,"
25 as such terms have customarily been used, and such gas and electricity
26 and such services have customarily been subject to tax, under subdivi-
27 sion (b) of section eleven hundred five of this article, and such terms
28 shall also include, respectively, gas or electricity, itself, as a
498 13001-04-9
1 commodity, or as part of an integrated (bundled) service including
2 delivery to the purchaser and other components of such service, the
3 service of transporting, transmitting, or distributing such gas or elec-
4 tricity by means of conduits, mains, pipes, wires, lines or the like
5 (whether or not such service is provided by the seller of the gas or
6 electricity being transported, transmitted or distributed and whether or
7 not such service is provided by one or more persons), itself, or as part
8 of an integrated (bundled) service including the commodity and other
9 components of such service, and also including any other components of
10 gas or gas service, or of electricity or electric service, which are
11 currently provided or furnished with such service and included in the
12 rates or charges authorized by the New York state public service commis-
13 sion or comparable federal agency, but which may become unbundled and
14 furnished separately (whether or not by the same seller of other compo-
15 nents of such gas, electricity or service), such as metering services or
16 billing or collection services or the services represented by capacity,
17 demand or the like charges. In addition, gas and electric services shall
18 include any ancillary services furnished in conjunction with gas or gas
19 service or electricity or electrical service, which ancillary services
20 are currently included in rates or charges or the like authorized by the
21 New York state public service commission or comparable federal agency
22 but which may be separately charged for in the future.
23 § 22. Paragraph 7 of subdivision (b) of section 1101 of the tax law,
24 as amended by chapter 61 of the laws of 1989, is amended to read as
25 follows:
26 (7) Use. The exercise of any right or power over tangible personal
27 property or services, including electric service, by the purchaser ther-
28 eof and includes, but is not limited to, the receiving, storage or any
499 13001-04-9
1 keeping or retention for any length of time, withdrawal from storage,
2 any installation, any affixation to real or personal property, or any
3 consumption of such property. Without limiting the foregoing, use also
4 shall include the distribution of only tangible personal property, such
5 as promotional materials.
6 § 23. Subdivision (b) of section 1105 of the tax law, as amended by
7 chapter 166 of the laws of 1991, is amended to read as follows:
8 (b) The receipts from every sale, other than sales for resale, of
9 [gas, electricity,] refrigeration and steam, and gas, electric, refrig-
10 eration and steam service of whatever nature, and from every sale, other
11 than sales for resale, of telephony and telegraphy and telephone and
12 telegraph service of whatever nature except interstate and international
13 telephony and telegraphy and telephone and telegraph service and from
14 every sale, other than sales for resale, of a telephone answering
15 service.
16 § 24. Subdivisions (b) and (d) of section 1105-A of the tax law,
17 subdivision (b) as amended by chapter 747 of the laws of 1979, subdivi-
18 sion (d) as added by chapter 70 of the laws of 1978, are amended to read
19 as follows:
20 (b) Notwithstanding any other provision of this article, but not for
21 purposes of the taxes imposed by section eleven hundred seven or eleven
22 hundred eight or pursuant to the authority of article twenty-nine of
23 this chapter, for purposes of [clause] clauses (A) and (G) of subdivi-
24 sion (a) of section eleven hundred ten, the compensating use tax imposed
25 by such section on the use of the property and services described in
26 [subsection] subdivision (a) of this section shall be at the rate of
27 [three percent for the period commencing January first, nineteen hundred
28 seventy-nine and ending December thirty-first, nineteen hundred seven-
500 13001-04-9
1 ty-nine; at the rate of two and one-half percent for the period commenc-
2 ing January first, nineteen hundred eighty and ending September thirti-
3 eth, nineteen hundred eighty and at the rate of] zero percent [on and
4 after October first, nineteen hundred eighty of the consideration given
5 or contracted to be given for the property or services described in
6 subsection (a) of this section or for use of such property or services,
7 plus the cost of transportation except where such cost is separately
8 stated in the written contract, if any, and on the bill rendered to the
9 purchaser].
10 (d) Where a residence is a part of a multiple dwelling or other prem-
11 ises consisting of residential and non-residential units, or where a
12 portion of a residence is used for non-dwelling purposes including the
13 conduct of a trade or business, the [tax commission] commissioner may
14 establish such rules and regulations as may be necessary in order to
15 allocate to such residence the portion of the sale or use of energy
16 sources or services attributable to the residential portion.
17 § 25. Clause 3 of subdivision (b) of section 1107 of the tax law, as
18 amended by chapter 376 of the laws of 1989, is amended to read as
19 follows:
20 (3) Where a sale of tangible personal property or services, including
21 gas or electric service, including an agreement therefor, is made in a
22 city in which the taxes imposed by subdivision (a) of this section
23 apply, but the property sold [or], the property upon which the services
24 were performed or such service, including gas or electric service is or
25 will be delivered to the purchaser elsewhere, such sale will not be
26 subject to taxes imposed by such subdivision (a). However, if delivery
27 occurs or will occur in any city where the tax imposed by such subdivi-
28 sion (a) applies, a vendor will be required to collect from the purchas-
501 13001-04-9
1 er the sales or compensating use taxes imposed by this section. For the
2 purposes of this section delivery shall be deemed to include transfer of
3 possession to the purchaser and the receiving of the property or of the
4 service, including gas or electric service by the purchaser.
5 § 26. Paragraph 3 of subdivision (b) of section 1108 of the tax law,
6 as added chapter 168 of the laws of 1975, is amended to read as follows:
7 (3) Where a sale of tangible personal property or services, including
8 gas or electric service, including an agreement therefor, is made in a
9 city in which the taxes imposed by subdivision (a) of this section
10 apply, but the property sold [or], the property upon which the services
11 were performed or such service, including gas or electric service is or
12 will be delivered to the purchaser elsewhere, such sale will not be
13 subject to taxes imposed by such subdivision (a). However, if delivery
14 occurs or will occur in any city where the tax imposed by such subdivi-
15 sion (a) applies, a vendor will be required to collect from the purchas-
16 er[,] the sales or compensating use taxes imposed by this section. For
17 the purposes of this section delivery shall be deemed to include trans-
18 fer of possession to the purchaser and the receiving of the property or
19 of the service, including gas or electric service by the purchaser.
20 § 27. Subdivision (c) of section 1109 of the tax law, as added by
21 chapter 485 of the laws of 1981, is amended to read as follows:
22 (c) Deliveries outside the district; deliveries within the district of
23 property sold or serviced elsewhere. Where a sale of tangible personal
24 property or services, including gas or electric service, including an
25 agreement therefor, is made in the district in which the taxes imposed
26 by this section apply, but the property sold [or], the property upon
27 which the services were performed or such service, including gas or
28 electric service is or will be delivered to the purchaser elsewhere,
502 13001-04-9
1 such sale will not be subject to taxes imposed by this section. However,
2 if delivery occurs or will occur in the district where the tax imposed
3 by this section applies, a vendor will be required to collect from the
4 purchaser the sales or compensating use taxes imposed by this section.
5 For the purposes of this section, delivery shall be deemed to include
6 transfer of possession to the purchaser and the receiving of the proper-
7 ty or of the service, including gas or electric service by the purchas-
8 er. The provisions of section twelve hundred fourteen of this chapter
9 shall be applicable to this section, but any reference in that section
10 to a local sales or use tax imposed by a city, county or school district
11 shall mean the additional taxes imposed by this section.
12 § 28. Subdivision (a) of section 1110 of the tax law, as separately
13 amended by sections 19, 158 and 168 of chapter 166 of the laws of 1991,
14 is amended to read as follows:
15 (a) Except to the extent that property or services have already been
16 or will be subject to the sales tax under this article, there is hereby
17 imposed on every person a use tax for the use within this state on and
18 after June first, nineteen hundred seventy-one except as otherwise
19 exempted under this article, (A) of any tangible personal property
20 purchased at retail, (B) of any tangible personal property (other than
21 computer software used by the author or other creator) manufactured,
22 processed or assembled by the user, (i) if items of the same kind of
23 tangible personal property are offered for sale by him in the regular
24 course of business or (ii) if items are used as such or incorporated
25 into a structure, building or real property by a contractor, subcontrac-
26 tor or repairman in erecting structures or buildings, or building on, or
27 otherwise adding to, altering, improving, maintaining, servicing or
28 repairing real property, property or land, as the terms real property,
503 13001-04-9
1 property or land are defined in the real property tax law, if items of
2 the same kind are not offered for sale as such by such contractor,
3 subcontractor or repairman or other user in the regular course of busi-
4 ness, (C) of any of the services described in paragraphs (1), (7) and
5 (8) of subdivision (c) of section eleven hundred five, (D) of any tangi-
6 ble personal property, however acquired, where not acquired for purposes
7 of resale, upon which any of the services described in paragraphs (2),
8 (3) and (7) of subdivision (c) of section eleven hundred five have been
9 performed [and], (E) of any telephone answering service described in
10 subdivision (b) of section eleven hundred five [and], (F) of any comput-
11 er software written or otherwise created by the user if the user offers
12 software of a similar kind for sale as such or as a component part of
13 other property in the regular course of business and (G) of any gas or
14 electric service described in subdivision (b) of section eleven hundred
15 five.
16 § 29. Section 1110 of the tax law is amended by adding a new subdivi-
17 sion (h) to read as follows:
18 (h) For purposes of clause (G) of subdivision (a) of this section, the
19 tax shall be at the rate of four percent of the consideration given or
20 contracted to be given for the gas or electric service, or for the use
21 of such service, including the consideration for any tangible personal
22 property transferred in conjunction with the performance of the service
23 and also including any charges for shipping and delivery of the property
24 so transferred, and also including any charge, whether or not separately
25 stated and whether or not made by the vendor or other seller of the gas
26 or electric service, for shipping, delivery, transportation, trans-
27 mission, distribution or the like, and for any unbundled component of
504 13001-04-9
1 such service, as described in paragraph nineteen of subdivision (b) of
2 section eleven hundred one.
3 § 30. Paragraph (ii) of subdivision (b) of section 1115 of the tax
4 law, as added by chapter 575 of the laws of 1965, is amended to read as
5 follows:
6 (ii) [Gas, electricity, refrigeration] Refrigeration and steam, and
7 gas, electric, refrigeration and steam service of whatever nature for
8 use or consumption directly and exclusively in research and development
9 in the experimental or laboratory sense shall be exempt from the tax
10 imposed under subdivision (b) of section eleven hundred five and the
11 compensating use tax imposed under section eleven hundred ten. Such
12 research and development shall not be deemed to include the ordinary
13 testing or inspection of materials or products for quality control,
14 efficiency surveys, management studies, consumer surveys, advertising,
15 promotions or research in connection with literary, historical or simi-
16 lar projects.
17 § 31. Subdivision (c) of section 1115 of the tax law, as added by
18 chapter 93 of the laws of 1965, is amended to read as follows:
19 (c) Fuel, [gas, electricity,] refrigeration and steam, and gas, elec-
20 tric, refrigeration and steam service of whatever nature for use or
21 consumption directly and exclusively in the production of tangible
22 personal property, gas, electricity, refrigeration or steam, for sale,
23 by manufacturing, processing, assembling, generating, refining, mining,
24 extracting, farming, agriculture, horticulture or floriculture, shall be
25 exempt from the taxes imposed under subdivisions (a) and (b) of section
26 eleven hundred five and the compensating use tax imposed under section
27 eleven hundred ten.
505 13001-04-9
1 § 32. The opening paragraph, subdivision 2 and paragraph (a) of subdi-
2 vision 7 of section 1118 of the tax law, as added by chapter 93 of the
3 laws of 1965, paragraph (a) of subdivision 7 as amended by chapter 300
4 of the laws of 1967, are amended to read as follows:
5 The following uses of property and services shall not be subject to
6 the compensating use tax imposed under this article:
7 (2) In respect to the use of property or services, including gas or
8 electric service, purchased by the user while a nonresident of this
9 state, except in the case of tangible personal property or services
10 which the user, in the performance of a contract, incorporates into real
11 property located in the state. A person while engaged in any manner in
12 carrying on in this state any employment, trade, business or profession,
13 shall not be deemed a nonresident with respect to the use in this state
14 of property or services, including gas or electric service, in such
15 employment, trade, business or profession.
16 (a) In respect to the use of property or services, including gas or
17 electric service, to the extent that a retail sales or use tax was
18 legally due and paid thereon, without any right to a refund or credit
19 thereof, to any other state or jurisdiction within any other state but
20 only when it is shown that such other state or jurisdiction allows a
21 corresponding exemption with respect to the sale or use of tangible
22 personal property or services, including gas or electric service, upon
23 which such a sales tax or compensating use tax was paid to this state.
24 To the extent that the tax imposed by this article is at a higher rate
25 than the rate of tax in the first taxing jurisdiction, this exemption
26 shall be inapplicable and the tax imposed by section eleven hundred ten
27 of this chapter shall apply to the extent of the difference in such
28 rates, except as provided in paragraph (b) of this subdivision.
506 13001-04-9
1 § 33. Subdivision 4 of section 1131 of the tax law, as amended by
2 chapter 166 of the laws of 1991, is amended to read as follows:
3 (4) "Property and services the use of which is subject to tax" shall
4 include: (a) all property sold to a person within the state, whether or
5 not the sale is made within the state, the use of which property is
6 subject to tax under section eleven hundred ten or will become subject
7 to tax when such property is received by or comes into the possession or
8 control of such person within the state; (b) all information services,
9 protective and detective services and interior decorating and design
10 services as such services are described in subdivision (c) of section
11 eleven hundred five, rendered to a person within the state, whether or
12 not such services are rendered from or at a location within the state;
13 (c) all services rendered to a person within the state, whether or not
14 such services are performed within the state, upon tangible personal
15 property the use of which is subject to tax under section eleven hundred
16 ten or will become subject to tax when such property is received by or
17 comes into possession or control of such person within the state; (d)
18 all property sold by a person making sales described in clause (F) of
19 subparagraph (i) of paragraph eight of subdivision (b) of section eleven
20 hundred one of this article to a person described in such clause (F) who
21 purchases such property at retail, whether or not the sale is made with-
22 in the state; [and] (e) all telephone answering service rendered to a
23 person within the state, whether or not such services are performed
24 within the state, the use of which is subject to tax under section elev-
25 en hundred ten or will become subject to tax when such service is
26 received by or comes into possession or control of such person within
27 the state; and (f) all gas and electric services sold to a person within
28 the state, whether or not the sale is made within the state, the use of
507 13001-04-9
1 which services are subject to tax under section eleven hundred ten or
2 will become subject to tax when such services are received by or come
3 into the possession or control of such person within the state, and
4 whether or not such services are rendered from or at a location within
5 the state.
6 § 34. Subparagraph (i) of paragraph 3 of subdivision (a) of section
7 1210 of the tax law, as amended by chapter 261 of the laws of 1988, is
8 amended to read as follows:
9 (i) Notwithstanding any other provision of law to the contrary but not
10 with respect to cities subject to the provisions of section eleven
11 hundred seven or section eleven hundred eight, any city or county,
12 except a county wholly contained within a city, may provide that the
13 taxes imposed, pursuant to this subdivision, by such city or county on
14 the retail sale or use of fuel oil and coal used for residential
15 purposes, the retail sale or use of wood used for residential heating
16 purposes [and], the sale, other than for resale, of propane (except when
17 sold in containers of less than one hundred pounds), natural gas, elec-
18 tricity, steam and gas, electric and steam services used for residential
19 purposes and the use of gas or electric service used for residential
20 purposes may be imposed at a lower rate than the uniform local rate
21 imposed pursuant to the opening paragraph of this section, as long as
22 such rate is one of the rates authorized by such paragraph or such sale
23 or use may be exempted from such taxes. Provided, however, such lower
24 rate must apply to all such energy sources and services and at the same
25 rate and no such exemption may be enacted unless such exemption applies
26 to all such energy sources and services. The provisions of this subpar-
27 agraph shall not apply to a sale or use of (i) diesel motor fuel which
28 involves a delivery at a filling station or into a repository which is
508 13001-04-9
1 equipped with a hose or other apparatus by which such fuel can be
2 dispensed into the fuel tank of a motor vehicle and (ii) enhanced diesel
3 motor fuel except in the case of a sale or use of such enhanced diesel
4 motor fuel used exclusively for residential purposes which is delivered
5 into a storage tank which is not equipped with a hose or other apparatus
6 by which such fuel can be dispensed into the fuel tank of a motor vehi-
7 cle and such storage tank is attached to the heating unit burning such
8 fuel, provided that each delivery of such fuel of over four thousand
9 five hundred gallons shall be evidenced by a certificate signed by the
10 purchaser stating that the product will be used exclusively for residen-
11 tial purposes.
12 § 35. Paragraphs 1 and 2 and subparagraph (i) of paragraph 3 of subdi-
13 vision (b) and subdivision (c) of section 1210 of the tax law, paragraph
14 1 as amended by chapter 166 of the laws of 1991, paragraph 2 and subpar-
15 agraph (i) of paragraph 3 as amended by chapter 746 of the laws of 1979,
16 and subdivision (c) as added by chapter 93 of the laws of 1965, are
17 amended to read as follows:
18 (1) Or, one or more of the taxes described in subdivisions (b), (d),
19 (e) and (f) of section eleven hundred five, at the same uniform rate,
20 including the transitional provisions in section eleven hundred six
21 covering such taxes, but not the taxes described in subdivisions (a) and
22 (c) of section eleven hundred five. Provided, further, that where the
23 tax [on telephone answering service] described in subdivision (b) of
24 section eleven hundred five is imposed, the compensating use [tax] taxes
25 described in [clause] clauses (E) and (G) of subdivision (a) of section
26 eleven hundred ten shall also be imposed.
27 (2) In respect to the taxes described in such subdivisions (b), (d),
28 (e) and (f) of section eleven hundred five and in such clauses (E) and
509 13001-04-9
1 (G) of subdivision (a) of section eleven hundred ten and the transi-
2 tional provisions in such section eleven hundred six covering those
3 taxes, all provisions of a local law imposing any such tax, except as to
4 rate and except as otherwise provided herein, shall be identical with
5 the corresponding provisions in such article twenty-eight, including the
6 definition and exemption provisions of such article, so far as the
7 provisions of such article twenty-eight can be made applicable to the
8 taxes imposed by such city or county and with such limitations and
9 special provisions as are set forth in this article; provided, however,
10 that any local law enacted by any city of one million or more, imposing
11 the taxes authorized by this subdivision, shall omit the exemption
12 provided in subdivision (c) of section eleven hundred fifteen and may
13 omit the exception provided in paragraph (1) of subdivision (f) of
14 section eleven hundred five for charges to a patron for admission to, or
15 use of, facilities for sporting activities in which such patron is to be
16 a participant, such as bowling alleys and swimming pools. The transi-
17 tional provisions contained in subdivision (d) of section eleven hundred
18 six shall apply in the same manner and to the same extent to a tax
19 imposed by omitting the exception in paragraph (1) of subdivision (f) of
20 section eleven hundred five, as described in the preceding sentence,
21 except that an equivalent date shall be substituted to accord with the
22 date when the tax so imposed becomes effective. The tax described in any
23 one of such subdivisions (b), (d), (e) and (f) of section eleven hundred
24 five, including the related transitional provisions in such section
25 eleven hundred six, and the taxes described in clauses (E) and (G) of
26 subdivision (a) of section eleven hundred ten where the tax described in
27 such subdivision (b) of section eleven hundred five is imposed, may not
28 be imposed by a city or county unless the local law, ordinance or resol-
510 13001-04-9
1 ution imposes such tax so as to include all portions and all types of
2 receipts, charges or rents, as the case may be, subject to state tax
3 under the applicable subdivision of section eleven hundred five and uses
4 subject to tax under the applicable provisions of section eleven hundred
5 ten where the tax described in subdivision (b) of section eleven hundred
6 five is imposed.
7 (i) Notwithstanding any other provision of law to the contrary but not
8 with respect to cities subject to the provisions of section eleven
9 hundred seven or section eleven hundred eight, any city or county,
10 except a county wholly contained within a city, may provide that the tax
11 imposed, pursuant to this subdivision, by such city or county on the
12 sale, other than for resale, of propane (except when sold in containers
13 of less than one hundred pounds), natural gas, electricity, steam and
14 gas, electric and steam services used for residential purposes and on
15 the use of gas and electric services used for residential purposes may
16 be imposed at a lower rate than the uniform local rate imposed pursuant
17 to the opening paragraph of this section, as long as such rate is one of
18 the rates authorized by such paragraph or such sale may be exempted from
19 such taxes. Provided, however, such lower rate must apply to all such
20 energy sources and services and at the same rate and no such exemption
21 may be enacted unless such exemption applies to all such energy sources
22 and services.
23 (c) Notwithstanding the prior provisions of this section, where a city
24 has, pursuant to section twelve hundred twenty-four, pre-empted the
25 right to impose any of the taxes described in subdivisions (b), (d), (e)
26 and (f) of section eleven hundred five by imposing one or more of such
27 taxes, and, if the taxes described in such subdivision (b) of section
28 eleven hundred five are imposed, the compensating use taxes described in
511 13001-04-9
1 clauses (E) and (G) of subdivision (a) of section eleven hundred ten, as
2 provided for in subdivision (b) of this section, the county in which
3 such city is located may still impose those taxes authorized under
4 subdivision (a) or (b) of this section not pre-empted by such city.
5 Within areas in such county but outside of such city, the county shall
6 continue to be authorized and empowered to impose the taxes as author-
7 ized in subdivisions (a) and (b) of this section, without any diminution
8 in the county’s right to impose such taxes in areas outside such city.
9 § 36. Subdivision (a) of section 1212 of the tax law, as amended by
10 chapter 300 of the laws of 1968, is amended to read as follows:
11 (a) Any school district which is coterminous with, partly within or
12 wholly within a city having a population of less than one hundred twen-
13 ty-five thousand, is hereby authorized and empowered, by majority vote
14 of the whole number of its school authorities, to impose for school
15 district purposes, within the territorial limits of such school district
16 and without discrimination between residents and nonresidents thereof,
17 the tax described in subdivision (b) of section eleven hundred five and
18 the taxes described in clauses (E) and (G) of subdivision (a) of section
19 eleven hundred ten, including the transitional provisions in subdivision
20 (b) of section eleven hundred six, so far as such provisions can be made
21 applicable to the [tax] taxes imposed by such school district and with
22 such limitations and special provisions as are set forth in this arti-
23 cle, such [tax] taxes to be imposed at the rate of one-half, one, one
24 and one-half, two, two and one-half or three percent which rate shall be
25 uniform for all portions and all types of receipts and uses subject to
26 such [tax] taxes. In respect to such [tax] taxes, all provisions of the
27 resolution imposing [it] them, except as to rate and except as otherwise
28 provided herein, shall be identical with the corresponding provisions in
512 13001-04-9
1 such article twenty-eight, including the applicable definition and
2 exemption provisions of such article, so far as the provisions of such
3 article twenty-eight can be made applicable to the [tax] taxes imposed
4 by such school district and with such limitations and special provisions
5 as are set forth in this article. The [tax] taxes described in [such]
6 subdivision (b) of section eleven hundred six and clauses (E) and (G) of
7 subdivision (a) of section eleven hundred ten, including the transi-
8 tional provision in subdivision (b) of such section eleven hundred six,
9 may not be imposed by such school district unless the resolution imposes
10 [the tax described in such subdivision] such taxes so as to include all
11 portions and all types of receipts and uses subject to tax under such
12 subdivision and clauses.
13 § 37. Section 1213 of the tax law, as amended by chapter 575 of the
14 laws of 1965, is amended to read as follows:
15 § 1213. Deliveries outside the jurisdiction where sale is made. Where
16 a sale of tangible personal property or services, including gas, elec-
17 tric and telephone answering services, but not including other [than
18 those] services described in subdivision (b) of section eleven hundred
19 five, including an agreement therefor, is made in any city, county or
20 school district, but the property sold or the property upon which the
21 services were performed or the gas, electric, telephone answering or
22 other service is or will be delivered to the purchaser elsewhere, such
23 sale shall not be subject to tax by such city, county or school
24 district. However, if delivery occurs or will occur in a city, county or
25 school district imposing a tax on the sale or use of such property or
26 such gas, electric, telephone answering or other services, the vendor
27 shall be required to collect from the purchaser, as provided in section
28 twelve hundred fifty-four, the aggregate sales or compensating use taxes
513 13001-04-9
1 imposed by the city, if any, county and school district in which deliv-
2 ery occurs or will occur, for distribution by the [state tax commission]
3 commissioner to such taxing jurisdiction or jurisdictions. For the
4 purposes of this section delivery shall be deemed to include transfer of
5 possession to the purchaser and the receiving of the property or gas,
6 electric, telephone answering service by the purchaser.
7 § 38. Section 1220 of the tax law, as added by chapter 93 of the laws
8 of 1965, is amended to read as follows:
9 § 1220. Territorial limitations. Any tax imposed under the authority
10 of this article shall apply only within the territorial limits of the
11 city, county or school district imposing the tax, except that where [a
12 tax] the taxes described in subdivision (b) [or (e)] of section eleven
13 hundred five, and clauses (E) and (G) of subdivision (a) of section
14 eleven hundred ten or the tax described in subdivision (e) of section
15 eleven hundred five is imposed by a city, as provided in [sections]
16 section twelve hundred ten or twelve hundred eleven, any establishment
17 located partially within such city and partially within a town or towns
18 and receiving or using any services or utilities provided by the city
19 shall be deemed to be wholly within such city for the purposes of such
20 taxes.
21 § 39. Paragraph 1 of subdivision (b) of section 1224 of the tax law,
22 as amended by chapter 426 of the laws of 1968, is amended to read as
23 follows:
24 (1) any or all of the taxes described in subdivisions (b), (d), (e)
25 and (f) of section eleven hundred five, and, where the tax described in
26 subdivision (b) of section eleven hundred five is imposed, all of the
27 taxes described in clauses (E) and (G) of subdivision (a) of section
514 13001-04-9
1 eleven hundred ten, as authorized by subdivision (b) of section twelve
2 hundred ten.
3 § 40. Paragraph 2 of subdivision (s) of section 1224 of the tax law,
4 as added by chapter 718 of the laws of 1996, is amended to read as
5 follows:
6 (2) any or all of the taxes described in subdivisions (b), (d), (e)
7 and (f) of section eleven hundred five of this chapter, and, where the
8 tax described in such subdivision (b) of section eleven hundred five is
9 imposed, all of the taxes described in clauses (E) and (G) of subdivi-
10 sion (a) of section eleven hundred ten, as authorized by subdivision (b)
11 of section twelve hundred ten of this article.
12 § 41. Movable machinery and equipment which is used in the generation
13 of electrical power for sale directly or indirectly to the public, which
14 was subject to taxation on a final assessment roll completed in 1998,
15 and which would otherwise become wholly exempt from taxation by virtue
16 of paragraph (f) of subdivision 12 of section 102 of the real property
17 tax law due to either a change in ownership or the amendment to article
18 9 of the tax law effectuated by section three of this act, shall be
19 taxable to the extent provided herein for purposes of the final assess-
20 ment rolls completed in 1999 through 2008, inclusive, notwithstanding
21 any provision in paragraph (f) of subdivision 12 of section 102 of the
22 real property tax law or in any other law to the contrary.
23 (a) On the final assessment roll completed in 1999, such property
24 shall be fully taxable.
25 (b) On the final assessment roll completed in 2000, 10 percent of the
26 total assessed valuation of such property shall be exempt from taxation.
27 (c) On the final assessment roll completed in 2001, 20 percent of the
28 total assessed valuation of such property shall be exempt from taxation.
515 13001-04-9
1 (d) On the final assessment roll completed in 2002, 30 percent of the
2 total assessed valuation of such property shall be exempt from taxation.
3 (e) On the final assessment roll completed in 2003, 40 percent of the
4 total assessed valuation of such property shall be exempt from taxation.
5 (f) On the final assessment roll completed in 2004, 50 percent of the
6 total assessed valuation of such property shall be exempt from taxation.
7 (g) On the final assessment roll completed in 2005, 60 percent of the
8 total assessed valuation of such property shall be exempt from taxation.
9 (h) On the final assessment roll completed in 2006, 70 percent of the
10 total assessed valuation of such property shall be exempt from taxation.
11 (i) On the final assessment roll completed in 2007, 80 percent of the
12 total assessed valuation of such property shall be exempt from taxation.
13 (j) On the final assessment roll completed in 2008, 90 percent of the
14 total assessed valuation of such property shall be exempt from taxation.
15 § 42. Tax Reduction Credit Under Tax Law, Sections 189 and 189-a.
16 There shall be allowed a credit against the tax imposed under section
17 189 of the tax law, and a credit against the tax imposed under section
18 189-a of the tax law to account for (i) the rate reduction under tax
19 law, section 186-a which occurred on October 1, 1998 and (ii) the repeal
20 of section 186 of the tax law, as provided for in section three of this
21 act. The appropriate credit shall commence for the taxable month which
22 coincides with such rate reduction under section 186-a and the repeal of
23 such section 186 and shall terminate at the time of the repeal of such
24 sections 189 and 189-a, as provided for by section seven of this act.
25 The section 189 credit shall apply as if the rate of tax imposed under
26 section 189 had been reduced by one-quarter of one percent on October 1,
27 1998 and by a total of one percent commencing with the repeal of section
28 186; and the section 189-a credit shall apply as if the base of the
516 13001-04-9
1 surcharge were the tax under section 189 reduced by the section 189
2 credit allowed by this section. Any credit or excess credit allowed
3 under this section shall be treated as an overpayment for purposes of
4 administering such credit or excess credit in accordance with article 27
5 of the tax law and other laws applicable to credits or excess credits
6 allowed under article 9 of the tax law.
7 § 43. Severability. If any provision of this act shall be adjudged by
8 any court of competent jurisdiction to be invalid, after exhaustion of
9 all further judicial review the judgment shall not affect, impair or
10 invalidate the remainder of the provisions of this act but shall be
11 confined in its operation to the provision of this act directly involved
12 in the controversy in which the judgment shall have been rendered. It is
13 hereby declared to be the intent of the legislature that this act would
14 have been enacted even if such invalid provision had not been included
15 herein.
16 § 44. This act shall take effect immediately, provided that:
17 (a) Sections one, two, three, four, six and eight through nineteen of
18 this act shall apply to taxable years ending after January 1, 1999.
19 (b) Section five of this act shall take effect January 1, 2003 and
20 shall apply to taxable years beginning on or after such date.
21 (c) Section seven of this act shall apply on the first day of the
22 first month which is at least 30 days from the date this act shall have
23 become a law.
24 (d) Sections twenty-one through twenty-seven and thirty through forty
25 of this act shall take effect April 1, 1999, and shall apply to property
26 or services sold on or after such date although made under a prior
27 contract. Where property or service is sold on a monthly, quarterly or
28 other term basis and the bills for such property or service are based on
517 13001-04-9
1 meter readings, the amount received on each bill for such property or
2 service for a month or other term shall be a receipt subject to the tax,
3 but such tax shall be applicable to all bills based on meters read on or
4 after April 1, 1999, only where more than one-half of the number of days
5 included in the month or other period billed are days subsequent to
6 March 31, 1999, provided, however, any provisions of such sections
7 relating to the compensating use tax imposed by section twenty-eight of
8 this act shall take effect at the same time as such section twenty-eight
9 takes effect.
10 (e) Sections twenty-eight and twenty-nine of this act shall take
11 effect June 1, 1999, and shall apply to property or services sold on or
12 after such date although made under a prior contract. Where property or
13 service is sold on a monthly, quarterly or other term basis and the
14 bills for such property or service are based on meter readings, the
15 amount received on each bill for such property or service for a month or
16 other term shall be a receipt subject to the tax, but such tax shall be
17 applicable to all bills based on meters read on or after June 1, 1999,
18 only where more than one-half of the number of days included in the
19 month or other period billed are days subsequent to May 31, 1999.
20 (f) Section forty-one of this act shall apply and be in full force and
21 effect with respect to final assessment rolls completed between January
22 1, 1999 and December 31, 2008, inclusive, and shall expire and be deemed
23 repealed December 31, 2008.
24 PART RR
25 § 1. Subparagraph (ii) of paragraph (c) of subdivision 1 of section
26 210 of the tax law, as amended by section 10 of part A of chapter 56 of
27 the laws of 1998, is amended to read as follows:
518 13001-04-9
1 (ii) For taxable years beginning in nineteen hundred ninety, nineteen
2 hundred ninety-one, nineteen hundred ninety-two, nineteen hundred nine-
3 ty-three and nineteen hundred ninety-four the amount prescribed by this
4 paragraph shall be computed at the rate of five percent of the taxpay-
5 er’s minimum taxable income base. For taxable years beginning after
6 nineteen hundred ninety-four and before July first, nineteen hundred
7 ninety-eight, the amount prescribed by this paragraph shall be computed
8 at the rate of three and one-half percent of the taxpayer’s minimum
9 taxable income base. For taxable years beginning after June thirtieth,
10 nineteen hundred ninety-eight and before July first, nineteen hundred
11 ninety-nine, the amount prescribed by this paragraph shall be computed
12 at the rate of three and one-quarter percent of the taxpayer’s minimum
13 taxable income base. For taxable years beginning after June thirtieth,
14 nineteen hundred ninety-nine and before July first, two thousand, the
15 amount prescribed by this paragraph shall be computed at the rate of
16 three percent of the taxpayer’s minimum taxable income base. For taxable
17 years beginning after June thirtieth, two thousand, the amount
18 prescribed by this paragraph shall be computed at the rate of two and
19 one-half percent of the taxpayer’s minimum taxable income base. The
20 "taxpayer’s minimum taxable income base" shall mean the portion of the
21 taxpayer’s minimum taxable income allocated within the state as herein-
22 after provided, subject to any modifications required by paragraphs (d)
23 and (e) of subdivision three of this section.
24 § 2. Paragraph (d) of subdivision 12-E of section 210 of the tax law,
25 as added by section 32 of part A of chapter 56 of the laws of 1998, is
26 amended to read as follows:
27 (d) The amount of the credit shall equal the product of [one thousand
28 dollars times] the credit factor multiplied by the number of individuals
519 13001-04-9
1 employed full-time by the taxpayer in the taxable year that are in
2 excess of one hundred percent of the taxpayer’s base year employment.
3 The credit factor shall be one thousand dollars for taxable years begin-
4 ning in nineteen hundred ninety-nine and two thousand and fifteen
5 hundred dollars for taxable years beginning after two thousand.
6 § 3. Paragraph (a) of subdivision 12-F of section 210 of the tax law,
7 as added by section 32 of part A of chapter 56 of the laws of 1998, is
8 amended to read as follows:
9 (a) A taxpayer shall be allowed a credit against the tax imposed by
10 this article. The amount of the credit shall be equal to one of the
11 following percentages, per each qualified investment in a qualified
12 emerging technology company as defined in section thirty-one hundred
13 two-e of the public authorities law, made during the taxable year, and
14 certified by the commissioner, either:
15 (1) for taxable years beginning in nineteen hundred ninety-nine and
16 two thousand, ten percent, and for taxable years beginning after two
17 thousand, twenty-five percent, of qualified investments in qualified
18 emerging technology companies, except for investments made by or on
19 behalf of an owner of the business, including, but not limited to, a
20 stockholder, partner or sole proprietor, or any related person, as
21 defined in subparagraph (C) of paragraph three of subsection (b) of
22 section four hundred sixty-five of the internal revenue code, and
23 provided, however, that the taxpayer certifies to the commissioner that
24 the qualified investment will not be sold, transferred, traded, or
25 disposed of during the four years following the year in which the credit
26 is first claimed; or
27 (2) for taxable years beginning in nineteen hundred ninety-nine and
28 two thousand, twenty percent, and for taxable years beginning after two
520 13001-04-9
1 thousand, fifty percent, of qualified investments in qualified emerging
2 technology companies, except for investments made by or on behalf of an
3 owner of the business, including, but not limited to, a stockholder,
4 partner or sole proprietor, or any related person, as defined in subpar-
5 agraph (C) of paragraph three of subsection (b) of section four hundred
6 sixty-five of the internal revenue code, and provided, however, that the
7 taxpayer certifies to the commissioner that the qualified investment
8 will not be sold, transferred, traded, or disposed of during the nine
9 years following the year in which the credit is first claimed.
10 "Qualified investment" means the contribution of property to a corpo-
11 ration in exchange for original issue capital stock or other ownership
12 interest, the contribution of property to a partnership in exchange for
13 an interest in the partnership, and similar contributions in the case of
14 a business entity not in corporate or partnership form in exchange for
15 an ownership interest in such entity. The total amount of credit allow-
16 able to a taxpayer under this provision for all years, taken in the
17 aggregate, shall not exceed [one hundred fifty] five hundred thousand
18 dollars in the case of investments made pursuant to subparagraph one of
19 this paragraph and shall not exceed [three hundred thousand] one million
20 dollars in the case of investments made pursuant to subparagraph two of
21 this paragraph.
22 § 4. This act shall take effect immediately.
23 PART SS
24 § 1. The tax law is amended by adding a new section 187-C to read as
25 follows:
26 § 187-C. Credit for increased urban employment. 1. General. A taxpayer
27 shall be allowed a credit, to be computed as provided in subdivision
28 four of this section, against the taxes imposed under sections one
521 13001-04-9
1 hundred eighty-three, one hundred eighty-four, one hundred eighty-five
2 and one hundred eighty-six of this article, based on an increase in
3 urban employment. Provided, however, that the amount of such credit
4 allowable against the tax imposed by section one hundred eighty-four of
5 this article shall be the excess of the credit allowed by this section
6 over the amount of such credit allowable against the tax imposed by
7 section one hundred eighty-three of this article.
8 2. Pre-requisite for credit. The job growth credit provided for herein
9 shall be allowed only where the average number of individuals, excluding
10 general executive officers, employed full-time by the taxpayer during
11 the taxable year in (A) the state and (B) the cities of this state,
12 exceeds by more than twenty-five the average number of such individuals
13 employed full-time by the taxpayer in (A) the state and (B) such cities,
14 respectively, during the immediately preceding taxable year (whether
15 under this article, article nine-A, thirty-two or thirty-three of this
16 chapter). If the taxpayer had no such immediately preceding taxable
17 year, such numbers with respect to such a taxable year shall be deemed
18 to be zero. For purposes of this section, the term "cities of this
19 state" shall include, in the case of the city of New York, only those
20 areas thereof which constitute economic development zones.
21 3. Number of employees. The average number of individuals, excluding
22 general executive officers, employed full-time shall be computed by
23 determining the number of such individuals employed by the taxpayer on
24 the thirty-first day of March, the thirtieth day of June, the thirtieth
25 day of September and the thirty-first day of December during the appli-
26 cable taxable year, by adding together the number of such individuals
27 determined to be so employed on each of such dates and dividing the sum
522 13001-04-9
1 so obtained by the number of such dates occurring within such applicable
2 taxable year.
3 4. Amount of credit. (a) General. The amount of the credit for a taxa-
4 ble year shall be the sum of the job growth credit and the job mainte-
5 nance credit allowable with respect to the taxable year.
6 (b) Job growth credit. The amount of the job growth credit shall be
7 the product of (i) the applicable credit factor set forth in paragraph
8 (d) of this subdivision and (ii) the excess of the average number of
9 full-time employees, excluding general executive officers, employed in
10 the cities of this state by the taxpayer during the taxable year over
11 the sum of (i) twenty-five and (ii) the average number of such employees
12 so employed during the immediately preceding taxable year (whether under
13 this article, article nine-A, thirty-two or thirty-three of this chap-
14 ter). If the taxpayer had no such immediately preceding taxable year,
15 such number with respect to such a taxable year shall be deemed to be
16 zero.
17 (c) Job maintenance credit. The amount of the job maintenance credit
18 shall be an amount equal to the amount of the job growth credit, if any,
19 allowed for the immediately preceding taxable year, and shall be allowed
20 only if the average number of full-time employees, excluding general
21 executive officers, employed in the state and the cities of this state
22 by the taxpayer during the taxable year is at least equal to the average
23 number of such employees so employed in such immediately preceding taxa-
24 ble year.
25 (d) Applicable credit factor. The applicable credit factor shall be
26 five hundred dollars if the average hourly rate of compensation of all
27 of the taxpayer’s employees, excluding general executive officers,
28 employed in the cities of this state during the taxable year was in
523 13001-04-9
1 excess of eight dollars. If such average hourly rate of compensation
2 was not in excess of eight dollars, then the applicable credit factor
3 shall be two hundred fifty dollars.
4 5. Anti-abuse provision. Where the taxpayer is described in subpara-
5 graph one or two of paragraph (j) of subdivision twelve of section two
6 hundred ten of this chapter, it shall not be allowed the credit where
7 such allowance would result in a credit being allowed twice for a
8 particular increase in, or maintenance of, urban employment, as the case
9 may be, or would otherwise be contrary to the intent and purposes of
10 this provision. In addition, where the composition of the taxpayer is
11 the result of a merger, consolidation or other reorganization, the
12 employment figures for the taxpayer shall be computed as if the employ-
13 ment figures for the entities merged or consolidated into, or otherwise
14 incorporated into, the taxpayer were those of the taxpayer, for both the
15 taxable year and any relevant prior taxable year.
16 6. Carryovers. In no event shall the credit under this section be
17 allowed in an amount which will reduce the tax payable to less than the
18 applicable minimum tax fixed by section one hundred eighty-three, one
19 hundred eighty-five or one hundred eighty-six of this article. If,
20 however, the amount of credit allowable under this section for any taxa-
21 ble year reduces the tax to such amount, any amount of credit not deduc-
22 tible in such taxable year may be carried over to the following year or
23 years and may be deducted from the taxpayer’s tax for such year or
24 years, provided that such amount of credit may not be so carried forward
25 for more than ten years.
26 § 2. Subdivision 25 of section 210 of the tax law, as renumbered by
27 section 128 of part A of chapter 389 of the laws of 1997, is renumbered
28 subdivision 26 and a new subdivision 25 is added to read as follows:
524 13001-04-9
1 25. Credit for increased urban employment. (a) General. A taxpayer
2 shall be allowed a credit, to be computed as provided in paragraph (d)
3 of this subdivision, against the tax imposed by this article, based on
4 an increase in urban employment.
5 (b) Pre-requisite for credit. The job growth credit provided for here-
6 in shall be allowed only where the average number of individuals,
7 excluding general executive officers, employed full-time by the taxpayer
8 during the taxable year in (i) the state and (ii) the cities of this
9 state, exceeds by more than twenty-five the average number of such indi-
10 viduals employed full-time by the taxpayer in (i) the state and (ii)
11 such cities, respectively, during the immediately preceding taxable year
12 (whether under this article, article nine, thirty-two or thirty-three of
13 this chapter). If the taxpayer had no such immediately preceding taxa-
14 ble year, such numbers with respect to such a taxable year shall be
15 deemed to be zero. For purposes of this subdivision, the term "cities
16 of this state" shall include, in the case of the city of New York, only
17 those areas thereof which constitute economic development zones.
18 (c) Number of employees. The average number of individuals, excluding
19 general executive officers, employed full-time shall be computed by
20 determining the number of such individuals employed by the taxpayer on
21 the thirty-first day of March, the thirtieth day of June, the thirtieth
22 day of September and the thirty-first day of December during the appli-
23 cable taxable year, by adding together the number of such individuals
24 determined to be so employed on each of such dates and dividing the sum
25 so obtained by the number of such dates occurring within such applicable
26 taxable year.
525 13001-04-9
1 (d) Amount of credit. (1) General. The amount of the credit for a
2 taxable year shall be the sum of the job growth credit and the job main-
3 tenance credit allowable with respect to the taxable year.
4 (2) Job growth credit. The amount of the job growth credit shall be
5 the product of (i) the applicable credit factor set forth in paragraph
6 four of this subdivision and (ii) the excess of the average number of
7 full-time employees, excluding general executive officers, employed in
8 the cities of this state by the taxpayer during the taxable year over
9 the sum of (i) twenty-five and (ii) the average number of such employees
10 so employed during the immediately preceding taxable year (whether under
11 this article, article nine, thirty-two or thirty-three of this chapter).
12 If the taxpayer had no such immediately preceding taxable year, such
13 number with respect to such a taxable year shall be deemed to be zero.
14 (3) Job maintenance credit. The amount of the job maintenance credit
15 shall be an amount equal to the amount of the job growth credit, if any,
16 allowed for the immediately preceding taxable year, and shall be allowed
17 only if the average number of full-time employees, excluding general
18 executive officers, employed in the state and the cities of this state
19 by the taxpayer during the taxable year is at least equal to the average
20 number of such employees so employed in such immediately preceding taxa-
21 ble year.
22 (4) Applicable credit factor. The applicable credit factor shall be
23 five hundred dollars if the average hourly rate of compensation of all
24 of the taxpayer’s employees, excluding general executive officers,
25 employed in the cities of this state during the taxable year was in
26 excess of eight dollars. If such average hourly rate of compensation
27 was not in excess of eight dollars, then the applicable credit factor
28 shall be two hundred fifty dollars.
526 13001-04-9
1 (e) Anti-abuse provision. Where the taxpayer is described in subpara-
2 graph one or two of paragraph (j) of subdivision twelve of this section,
3 it shall not be allowed the credit where such allowance would result in
4 a credit being allowed twice for a particular increase in, or mainte-
5 nance of, urban employment, as the case may be, or would otherwise be
6 contrary to the intent and purposes of this provision. In addition,
7 where the composition of the taxpayer is the result of a merger, consol-
8 idation or other reorganization, the employment figures for the taxpayer
9 shall be computed as if the employment figures for the entities merged
10 or consolidated into, or otherwise incorporated into, the taxpayer were
11 those of the taxpayer, for both the taxable year and any relevant prior
12 taxable year.
13 (f) Carryovers. The credit and carryovers of such credit allowed under
14 this subdivision for any taxable year shall not, in the aggregate,
15 reduce the tax due for such year to less than the higher of the amounts
16 prescribed in paragraphs (c) and (d) of subdivision one of this section.
17 However, if the amount of credit or carryovers of such credit, or both,
18 allowed under this subdivision for any taxable year reduces the tax to
19 such amount, any amount of credit or carryovers of such credit thus not
20 deductible in such taxable year may be carried over to the following
21 year or years and may be deducted from the tax for such year or years,
22 provided that such amount of credit may not be so carried forward for
23 more than ten years.
24 § 3. Paragraph 1 of subsection (i) of section 606 of the tax law, as
25 separately amended by sections 56, 105 and 130 of part A of chapter 389
26 of the laws of 1997, is amended to read as follows:
527 13001-04-9
1 (1) For purposes of determining the application under this section of
2 the credit provisions enumerated in the following table, a shareholder
3 of a New York S corporation:
4 (A) shall be treated as the taxpayer with respect to his or her pro
5 rata share of the corresponding credit base of such corporation, deter-
6 mined for the corporation’s taxable year ending with or within the
7 shareholder’s taxable year and
8 (B) shall be treated as the owner of a new business with respect to
9 such share if the corporation qualifies as a new business pursuant to
10 paragraph (j) of subdivision twelve of section two hundred ten of this
11 chapter, unless the shareholder has previously received a refund by
12 reason of the application of this subparagraph, or this subsection as it
13 was in effect for taxable years beginning before nineteen hundred nine-
14 ty-four.
15 The corporation’s
16 With respect to the credit base under
17 following credit section two hundred ten
18 under this section: or section fourteen
19 hundred fifty-six of this
20 chapter is:
21 Investment tax credit Investment credit base
22 under subsection (a) or qualified
23 rehabilitation
24 expenditures under
25 subdivision twelve of
26 section two hundred ten
27 Economic development Cost or other basis
528 13001-04-9
1 zone investment tax credit under subdivision
2 under subsection (j) twelve-B
3 of section two hundred
4 ten
5 Economic development Eligible wages under
6 zone wage tax credit subdivision nineteen of
7 under subsection (k) section two hundred ten
8 or subsection (e) of
9 section fourteen hundred
10 fifty-six
11 Economic development zone Qualified investments
12 capital tax credit and contributions under
13 under subsection (1) subdivision twenty of
14 section two hundred ten
15 or subsection (d) of
16 section fourteen hundred
17 fifty-six
18 Agricultural property tax Allowable school
19 credit under subsection (n) district property taxes under
20 subdivision twenty-two of
21 section two hundred ten
22 Credit for employment Qualified first-year wages or
23 of persons with dis- qualified second-year wages
24 abilities under under subdivision
25 subsection (o) twenty-three of section
26 two hundred ten
27 or subsection (f)
28 of section fourteen
529 13001-04-9
1 hundred fifty-six
2 Employment incentive Applicable investment credit
3 credit under subsec- base under subdivision
4 tion (a-1) twelve-D
5 Economic develop- Applicable investment
6 ment zone employment credit under sub-
7 incentive credit under division twelve-C
8 subsection (j-1)
9 Alternative fuels credit Cost under subdivision
10 under subsection (p) twenty-four
11 Credit for increased Applicable credit for
12 urban employment under increased urban
13 subsection (q) employment under
14 subdivision twenty-five of section
15 two hundred ten or subsection (j)
16 of section fourteen hundred
17 fifty-six
18 § 4. Subsections (q) and (r) of section 606 of the tax law, as relet-
19 tered by chapter 142 of the laws of 1997, are relettered subsections (r)
20 and (s) and a new subsection (q) is added to read as follows:
21 (q) Credit for increased urban employment. (1) General. A taxpayer
22 shall be allowed a credit, to be computed as provided in paragraph four
23 of this subsection, against the tax imposed by this article, based on an
24 increase in urban employment.
25 (2) Pre-requisite for credit. The job growth credit provided for here-
26 in shall be allowed only where the average number of individuals,
27 excluding general executive officers, employed full-time by the taxpayer
28 during the taxable year in (A) the state and (B) the cities of this
530 13001-04-9
1 state, exceeds by more than twenty-five the average number of such indi-
2 viduals employed full-time by the taxpayer in (A) the state and (B) such
3 cities, respectively, during the immediately preceding taxable year. If
4 the taxpayer had no such immediately preceding taxable year, such
5 numbers with respect to such a taxable year shall be deemed to be zero.
6 For purposes of this subsection, the term "cities of this state" shall
7 include, in the case of the city of New York, only those areas thereof
8 which constitute economic development zones.
9 (3) Number of employees. The average number of individuals, excluding
10 general executive officers, employed full-time shall be computed by
11 determining the number of such individuals employed by the taxpayer on
12 the thirty-first day of March, the thirtieth day of June, the thirtieth
13 day of September and the thirty-first day of December during the appli-
14 cable taxable year, by adding together the number of such individuals
15 determined to be so employed on each of such dates and dividing the sum
16 so obtained by the number of such dates occurring within such applicable
17 taxable year.
18 (4) Amount of credit. (i) General. The amount of the credit for a
19 taxable year shall be the sum of the job growth credit and the job main-
20 tenance credit allowable with respect to the taxable year.
21 (ii) Job growth credit. The amount of the job growth credit shall be
22 the product of (A) the applicable credit factor set forth in paragraph
23 (iv) of this subsection and (B) the excess of the average number of
24 full-time employees, excluding general executive officers, employed in
25 the cities of this state by the taxpayer during the taxable year over
26 the sum of (A) twenty-five and (B) the average number of such employees
27 so employed during the immediately preceding taxable year. If the
531 13001-04-9
1 taxpayer had no such immediately preceding taxable year, such number
2 with respect to such a taxable year shall be deemed to be zero.
3 (iii) Job maintenance credit. The amount of the job maintenance credit
4 shall be an amount equal to the amount of the job growth credit, if any,
5 allowed for the immediately preceding taxable year, and shall be allowed
6 only if the average number of full-time employees, excluding general
7 executive officers, employed in the state and the cities of this state
8 by the taxpayer during the taxable year is at least equal to the average
9 number of such employees so employed in such immediately preceding taxa-
10 ble year.
11 (iv) Applicable credit factor. The applicable credit factor shall be
12 five hundred dollars if the average hourly rate of compensation of all
13 of the taxpayer’s employees, excluding general executive officers,
14 employed in the cities of this state during the taxable year was in
15 excess of eight dollars. If such average hourly rate of compensation
16 was not in excess of eight dollars, then the applicable credit factor
17 shall be two hundred fifty dollars.
18 (5) Anti-abuse provision. Where the taxpayer is either a sole propri-
19 etor or a member of a partnership described in subparagraph (B) of para-
20 graph ten of subsection (a) of this section, such taxpayer shall not be
21 allowed the credit where such allowance would result in a credit being
22 allowed twice for a particular increase in, or maintenance of, urban
23 employment, as the case may be, or would otherwise be contrary to the
24 intent and purposes of this provision. In addition, where the composi-
25 tion of the business of which such a taxpayer is the owner or partner is
26 the result of an amalgamation of the operations of entities or of other
27 such businesses, the employment figures for the business of which such
28 taxpayer is the owner or partner shall be computed as if the employment
532 13001-04-9
1 figures for the entities or businesses so amalgamated were those of the
2 business of which such taxpayer is the owner.
3 (6) Carryovers. If the amount of the credit and carryovers of such
4 credit allowed under this subsection for any taxable year shall exceed
5 the taxpayer’s tax for such year, the excess, as well as any part of the
6 credit or carryovers of such credit, or both, may be carried over to the
7 following year or years and may be deducted from the taxpayer’s tax for
8 such year or years, provided that such amount of credit may not be so
9 carried forward for more than ten years.
10 § 5. Section 1456 of the tax law is amended by adding a new subsection
11 (j) to read as follows:
12 (j) Credit for increased urban employment. (1) General. A taxpayer
13 shall be allowed a credit, to be computed as provided in paragraph four
14 of this subsection, against the tax imposed by this article, based on an
15 increase in urban employment.
16 (2) Pre-requisite for credit. The job growth credit provided for here-
17 in shall be allowed only where the average number of individuals,
18 excluding general executive officers, employed full-time by the taxpayer
19 during the taxable year in (A) the state and (B) the cities of this
20 state, exceeds by more than twenty-five the average number of such indi-
21 viduals employed full-time by the taxpayer in (A) the state and (B) such
22 cities, respectively, during the immediately preceding taxable year
23 (whether under this article, article nine, nine-A or thirty-three of
24 this chapter). If the taxpayer had no such immediately preceding taxa-
25 ble year, such numbers with respect to such a taxable year shall be
26 deemed to be zero. For purposes of this section, the term "cities of
27 this state" shall include, in the case of the city of New York, only
28 those areas thereof which constitute economic development zones.
533 13001-04-9
1 (3) Number of employees. The average number of individuals, excluding
2 general executive officers, employed full-time shall be computed by
3 determining the number of such individuals employed by the taxpayer on
4 the thirty-first day of March, the thirtieth day of June, the thirtieth
5 day of September and the thirty-first day of December during the appli-
6 cable taxable year, by adding together the number of such individuals
7 determined to be so employed on each of such dates and dividing the sum
8 so obtained by the number of such dates occurring within such applicable
9 taxable year.
10 (4) Amount of credit. (i) General. The amount of the credit for a
11 taxable year shall be the sum of the job growth credit and the job main-
12 tenance credit allowable with respect to the taxable year.
13 (ii) Job growth credit. The amount of the job growth credit shall be
14 the product of (A) the applicable credit factor set forth in paragraph
15 (iv) of this subsection and (B) the excess of the average number of
16 full-time employees, excluding general executive officers, employed in
17 the cities of this state by the taxpayer during the taxable year over
18 the sum of (A) twenty-five and (B) the average number of such employees
19 so employed during the immediately preceding taxable year (whether under
20 this article, article nine, nine-A or thirty-three of this chapter). If
21 the taxpayer had no such immediately preceding taxable year, such number
22 with respect to such a taxable year shall be deemed to be zero.
23 (iii) Job maintenance credit. The amount of the job maintenance credit
24 shall be an amount equal to the amount of the job growth credit, if any,
25 allowed for the immediately preceding taxable year, and shall be allowed
26 only if the average number of full-time employees, excluding general
27 executive officers, employed in the state and the cities of this state
28 by the taxpayer during the taxable year is at least equal to the average
534 13001-04-9
1 number of such employees so employed in such immediately preceding taxa-
2 ble year.
3 (iv) Applicable credit factor. The applicable credit factor shall be
4 five hundred dollars if the average hourly rate of compensation of all
5 of the taxpayer’s employees, excluding general executive officers,
6 employed in the cities of this state during the taxable year was in
7 excess of eight dollars. If such average hourly rate of compensation
8 was not in excess of eight dollars, then the applicable credit factor
9 shall be two hundred fifty dollars.
10 (5) Anti-abuse provision. Where the taxpayer is described in subpara-
11 graph (A) or (B) of paragraph eight of subsection (i) of this section,
12 it shall not be allowed the credit where such allowance would result in
13 a credit being allowed twice for a particular increase in, or mainte-
14 nance of, urban employment, as the case may be, or would otherwise be
15 contrary to the intent and purposes of this provision. In addition,
16 where the composition of the taxpayer is the result of a merger, consol-
17 idation or other reorganization, the employment figures for the taxpayer
18 shall be computed as if the employment figures for the entities merged
19 or consolidated into, or otherwise incorporated into, the taxpayer were
20 those of the taxpayer, for both the taxable year and any relevant prior
21 taxable year.
22 (6) Carryover. The credit and carryovers of such credit allowed under
23 this subsection for any taxable year shall not, in the aggregate, reduce
24 the tax due for such year to less than the minimum tax fixed by
25 subsection (b) of section fourteen hundred fifty-five of this article.
26 However, if the amount of credit or carryovers of such credit, or both,
27 allowed under this subsection for any taxable year reduces the tax to
28 such amount, then any amount of credit or carryovers of such credit thus
535 13001-04-9
1 not deductible in such taxable year may be carried over to the following
2 year or years and may be deducted from the taxpayer’s tax for such year
3 or years, provided that such amount of credit may not be so carried
4 forward for more than ten years.
5 § 6. Subdivision (l) of section 1511 of the tax law, as amended by
6 chapter 639 of the laws of 1996, and as relettered by section 143 of
7 part A of chapter 389 of the laws of 1997, is relettered subdivision (m)
8 and a new subdivision (l) is added to read as follows:
9 (1) Credit for increased urban employment. (1) General. A taxpayer
10 shall be allowed a credit, to be computed as provided in paragraph four
11 of this subdivision, against the taxes imposed by this article, based on
12 an increase in urban employment.
13 (2) Pre-requisite for credit. The job growth credit provided for here-
14 in shall be allowed only where the average number of individuals,
15 excluding general executive officers, employed full-time by the taxpayer
16 during the taxable year in (A) the state and (B) the cities of this
17 state, exceeds by more than twenty-five the average number of such indi-
18 viduals employed full-time by the taxpayer in (A) the state and (B) such
19 cities, respectively, during the immediately preceding taxable year
20 (whether under this article, article nine, nine-A or thirty-two of this
21 chapter). If the taxpayer had no such immediately preceding taxable
22 year, such numbers with respect to such a taxable year shall be deemed
23 to be zero. For purposes of this section, the term "cities of this
24 state" shall include, in the case of the city of New York, only those
25 areas thereof which constitute economic development zones.
26 (3) Number of employees. The average number of individuals, excluding
27 general executive officers, employed full-time shall be computed by
28 determining the number of such individuals employed by the taxpayer on
536 13001-04-9
1 the thirty-first day of March, the thirtieth day of June, the thirtieth
2 day of September and the thirty-first day of December during the appli-
3 cable taxable year, by adding together the number of such individuals
4 determined to be so employed on each of such dates and dividing the sum
5 so obtained by the number of such dates occurring within such applicable
6 taxable year.
7 (4) Amount of credit. (i) General. The amount of the credit for a
8 taxable year shall be the sum of the job growth credit and the job main-
9 tenance credit allowable with respect to the taxable year.
10 (ii) Job growth credit. The amount of the job growth credit shall be
11 the product of (A) the applicable credit factor set forth in paragraph
12 (iv) of this subdivision and (B) the excess of the average number of
13 full-time employees, excluding general executive officers, employed in
14 the cities of this state by the taxpayer during the taxable year over
15 the sum of (A) twenty-five and (B) the average number of such employees
16 so employed during the immediately preceding taxable year (whether under
17 this article, article nine, nine-A or thirty-two of this chapter). If
18 the taxpayer had no such immediately preceding taxable year, such number
19 with respect to such a taxable year shall be deemed to be zero.
20 (iii) Job maintenance credit. The amount of the job maintenance credit
21 shall be an amount equal to the amount of the job growth credit, if any,
22 allowed for the immediately preceding taxable year, and shall be allowed
23 only if the average number of full-time employees, excluding general
24 executive officers, employed in the state and the cities of this state
25 by the taxpayer during the taxable year is at least equal to the average
26 number of such employees so employed in such immediately preceding taxa-
27 ble year.
537 13001-04-9
1 (iv) Applicable credit factor. The applicable credit factor shall be
2 five hundred dollars if the average hourly rate of compensation of all
3 of the taxpayer’s employees, excluding general executive officers,
4 employed in the cities of this state during the taxable year was in
5 excess of eight dollars. If such average hourly rate of compensation
6 was not in excess of eight dollars, then the applicable credit factor
7 shall be two hundred fifty dollars.
8 (5) Anti-abuse provision. Where the taxpayer is described in subpara-
9 graph one or two of paragraph (j) of subdivision twelve of section two
10 hundred ten of this chapter, it shall not be allowed the credit where
11 such allowance would result in a credit being allowed twice for a
12 particular increase in, or maintenance of, urban employment, as the case
13 may be, or would otherwise be contrary to the intent and purposes of
14 this provision. In addition, where the composition of the taxpayer is
15 the result of a merger, consolidation or other reorganization, the
16 employment figures for the taxpayer shall be computed as if the employ-
17 ment figures for the entities merged or consolidated into, or otherwise
18 incorporated into, the taxpayer were those of the taxpayer, for both the
19 taxable year and any relevant prior taxable year.
20 (6) Carryover. The credit and carryovers of such credit allowed under
21 this subdivision for any taxable year shall not, in the aggregate,
22 reduce the tax due for such year to less than the minimum tax fixed by
23 paragraph four of subdivision (a) of section fifteen hundred two of this
24 article. However, if the amount of credit or carryovers of such credit,
25 or both, allowed under this subdivision for any taxable year reduces the
26 tax to such amount, then any amount of credit or carryovers of such
27 credit thus not deductible in such taxable year may be carried over to
28 the following year or years and may be deducted from the taxpayer’s tax
538 13001-04-9
1 for such year or years, provided that such amount of credit may not be
2 so carried forward for more than ten years.
3 § 7. This act shall take effect immediately and shall apply to taxable
4 years beginning on or after January 1, 2001.
5 PART TT
6 § 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is
7 amended by adding a new subparagraph 15 to read as follows:
8 (15) The exclusion relating to gain on sale of New York capital assets
9 pursuant to paragraph (n) of this subdivision.
10 § 2. Subdivision 9 of section 208 of the tax law is amended by adding
11 a new paragraph (n) to read as follows:
12 (n) Exclusion of gain on sale of New York capital assets. (1) General.
13 Gain on the sale of New York capital assets shall be excluded from
14 entire net income as provided in this paragraph.
15 (2) New York capital assets. The term "New York capital asset" means
16 an asset used in this state in a trade or business carried on in this
17 state, where the use of such asset in this state in such trade or busi-
18 ness first occurred on or after June first, nineteen hundred ninety-
19 nine, and where such asset is:
20 (A) real or depreciable personal property, or
21 (B) intangible property, whether acquired or self-created, which is a
22 "section 197 intangible" listed in sections 197(d)(1)(A) through (F) or
23 197(d)(2) or (3) of the internal revenue code (without regard to section
24 197(e) of such code).
25 (C) exceptions. New York capital assets shall not include:
26 (i) inventory property,
27 (ii) property significantly used for rental purposes, except for
28 depreciable real property which is new or substantially rehabilitated.
539 13001-04-9
1 Depreciable real property is substantially rehabilitated if the cost of
2 rehabilitation incurred during the two year rehabilitation period is at
3 least fifty percent of the taxpayer’s federal adjusted basis in the
4 property at the commencement of such two year period. The term "two year
5 rehabilitation period" means any two year period commencing on or after
6 June first, nineteen hundred ninety-nine and ending with or within the
7 taxable year which is designated as such by the taxpayer. Depreciable
8 real property is significantly used for rental purposes where, on aver-
9 age, more than twenty percent of the usable space is used for rental
10 purposes, or
11 (iii) any interest in a corporation, partnership, trust, or estate, or
12 in a contract which is a futures, foreign currency, notional principal,
13 or similar financial contract. Provided, however, in the case of an
14 interest in an entity which is a partnership, estate or trust, this
15 subclause shall not be construed to disallow the passthrough for
16 purposes of this paragraph of gain on the sale of New York capital
17 assets by the entity to the partners or beneficiaries, respectively, of
18 the entity.
19 (3) Amount of exclusion. The amount of exclusion provided by this
20 paragraph with respect to a New York capital asset shall be the product
21 of the exclusion percentage applicable to such asset and the amount of
22 gain on the sale of such asset taken into account in computing federal
23 taxable income. Provided, however, the amount of gain with respect to
24 New York capital assets taken into account under this paragraph shall be
25 limited to the amount by which
26 (A) the total of all gains from the sale of property (of whatever
27 kind), to the extent taken into account in computing federal gross
28 income, exceeds
540 13001-04-9
1 (B) the total of all losses from the sale of property (of whatever
2 kind) to the extent taken into account in computing federal gross
3 income.
4 (4) Exclusion percentage. The exclusion percentage shall be:
5 If the New York capital asset The exclusion percentage shall
6 is used in this state for: be:
7 1 or more but less than 3 years 5%
8 3 or more but less than 5 years 10%
9 5 or more but less than 10 years 15%
10 10 or more years 20%
11 § 3. Subsection (c) of section 612 of the tax law is amended by adding
12 a new paragraph 37 to read as follows:
13 (37) The exclusion relating to gain on sale of New York capital assets
14 pursuant to subsection (w) of this section.
15 § 4. Section 612 of the tax law is amended by adding a new subsection
16 (w) to read as follows:
17 (w) Exclusion of gain on sale of New York capital assets. (1) General.
18 Gain on the sale of New York capital assets shall be excluded from New
19 York adjusted gross income as provided in this subsection.
20 (2) New York capital assets. The term "New York capital asset" means
21 an asset used in this state in a trade or business carried on in this
22 state, where the use of such asset in this state in such trade or busi-
23 ness first occurred on or after June first, nineteen hundred ninety-
24 nine, and where such asset is:
25 (A) real or depreciable personal property, or
26 (B) intangible property, whether acquired or self-created, which is a
27 "section 197 intangible" listed in sections 197(d)(1)(A) through (F) or
541 13001-04-9
1 197(d)(2) or (3) of the internal revenue code (without regard to section
2 197(e) of such code).
3 (C) exceptions. New York capital assets shall not include:
4 (i) inventory property,
5 (ii) property significantly used for rental purposes, except for
6 depreciable real property which is new or substantially rehabilitated.
7 Depreciable real property is substantially rehabilitated if the cost of
8 rehabilitation incurred during the two year rehabilitation period is at
9 least fifty percent of the taxpayer’s federal adjusted basis in the
10 property at the commencement of such two year period. The term "two year
11 rehabilitation period" means any two year period commencing on or after
12 June first, nineteen hundred ninety-nine and ending with or within the
13 taxable year which is designated as such by the taxpayer. Depreciable
14 real property is significantly used for rental purposes where, on aver-
15 age, more than twenty percent of the usable space is used for rental
16 purposes, or
17 (iii) any interest in a corporation, partnership, trust, or estate, or
18 in a contract which is a futures, foreign currency, notional principal,
19 or similar financial contract. Provided, however, in the case of an
20 interest in an entity which is a New York S corporation, a partnership,
21 or an estate or trust, this clause shall not be construed to disallow
22 the passthrough for purposes of this subsection of gain on the sale of
23 New York capital assets by the entity to the shareholders, partners or
24 beneficiaries, respectively, of the entity.
25 (3) Amount of exclusion. The amount of exclusion provided by this
26 subsection with respect to a New York capital asset shall be the product
27 of the exclusion percentage applicable to such asset and the amount of
28 gain on the sale of such asset taken into account in computing federal
542 13001-04-9
1 adjusted gross income. Provided, however, the amount of gain with
2 respect to New York capital assets taken into account under this
3 subsection shall be limited to the amount by which
4 (A) the total of all gains from the sale of property (of whatever
5 kind), to the extent taken into account in computing federal gross
6 income, exceeds
7 (B) the total of all losses from the sale of property (of whatever
8 kind) to the extent taken into account in computing federal gross
9 income.
10 (4) Exclusion percentage. The exclusion percentage shall be:
11 If the New York capital asset The exclusion percentage shall
12 is used in this state for: be:
13 1 or more but less than 3 years 5%
14 3 or more but less than 5 years 10%
15 5 or more but less than 10 years 15%
16 10 or more years 20%
17 § 5. Subdivision (c) of section 11-1712 of the administrative code of
18 the city of New York is amended by adding a new paragraph 35 to read as
19 follows:
20 (35) The exclusion relating to gain on sale of New York capital assets
21 pursuant to subdivision (u) of this section.
22 § 6. Section 11-1712 of the administrative code of the city of New
23 York is amended by adding a new subdivision (u) to read as follows:
24 (u) Exclusion of gain on sale of New York capital assets. (1) General.
25 Gain on the sale of New York capital assets shall be excluded from city
26 adjusted gross income as provided in this subdivision.
27 (2) New York capital assets. The term "New York capital asset" means
28 an asset used in this state in a trade or business carried on in this
543 13001-04-9
1 state, where the use of such asset in this state in such trade or busi-
2 ness first occurred on or after June first, nineteen hundred ninety-
3 nine, and where such asset is:
4 (A) real or depreciable personal property, or
5 (B) intangible property, whether acquired or self-created, which is a
6 "section 197 intangible" listed in sections 197(d)(1)(A) through (F) or
7 197(d)(2) or (3) of the internal revenue code (without regard to section
8 197(e) of such code).
9 (C) exceptions. New York capital assets shall not include:
10 (i) inventory property,
11 (ii) property significantly used for rental purposes, except for
12 depreciable real property which is new or substantially rehabilitated.
13 Depreciable real property is substantially rehabilitated if the cost of
14 rehabilitation incurred during the two year rehabilitation period is at
15 least fifty percent of the taxpayer’s federal adjusted basis in the
16 property at the commencement of such two year period. The term "two year
17 rehabilitation period" means any two year period commencing on or after
18 June first, nineteen hundred ninety-nine and ending with or within the
19 taxable year which is designated as such by the taxpayer. Depreciable
20 real property is significantly used for rental purposes where, on aver-
21 age, more than twenty percent of the usable space is used for rental
22 purposes, or
23 (iii) any interest in a corporation, partnership, trust, or estate, or
24 in a contract which is a futures, foreign currency, notional principal,
25 or similar financial contract. Provided, however, in the case of an
26 interest in an entity which is a New York S corporation, a partnership,
27 or an estate or trust, this clause shall not be construed to disallow
28 the passthrough for purposes of this subdivision of gain on the sale of
544 13001-04-9
1 New York capital assets by the entity to the shareholders, partners or
2 beneficiaries, respectively, of the entity.
3 (3) Amount of exclusion. The amount of exclusion provided by this
4 subdivision with respect to a New York capital asset shall be the prod-
5 uct of the exclusion percentage applicable to such asset and the amount
6 of gain on the sale of such asset taken into account in computing feder-
7 al adjusted gross income. Provided, however, the amount of gain with
8 respect to New York capital assets taken into account under this subdi-
9 vision shall be limited to the amount by which
10 (A) the total of all gains from the sale of property (of whatever
11 kind), to the extent taken into account in computing federal gross
12 income, exceeds
13 (B) the total of all losses from the sale of property (of whatever
14 kind) to the extent taken into account in computing federal gross
15 income.
16 (4) Exclusion percentage. The exclusion percentage shall be:
17 If the New York capital asset The exclusion percentage shall
18 is used in this state for: be:
19 1 or more but less than 3 years 5%
20 3 or more but less than 5 years 10%
21 5 or more but less than 10 years 15%
22 10 or more years 20%
23 § 7. This act shall take effect immediately and shall apply to taxable
24 years beginning on or after January 1, 2001.
25 PART UU
26 § 1. Subsection (a) of section 1455 of the tax law, as amended by
27 chapter 298 of the laws of 1985, is amended to read as follows:
545 13001-04-9
1 (a) Basic tax. [Nine] For taxable years beginning before July first,
2 two thousand, nine percent of the taxpayer’s entire net income, or the
3 portion thereof allocated to this state, for the taxable year, or part
4 thereof. For taxable years beginning after June thirtieth, two thousand
5 and before July first, two thousand one, eight and one-half percent of
6 the taxpayer’s entire net income, or the portion thereof allocated to
7 this state, for the taxable year, or part thereof. For taxable years
8 beginning after June thirtieth, two thousand one and before July first,
9 two thousand two, eight percent of the taxpayer’s entire net income, or
10 the portion thereof allocated to this state, for the taxable year, or
11 part thereof. For taxable years beginning after June thirtieth, two
12 thousand two, seven and one-half percent of the taxpayer’s entire net
13 income, or the portion thereof allocated to this state, for the taxable
14 year, or part thereof.
15 § 2. Subsection 1 of section 1455-B of the tax law, as amended by
16 section 75 of Part A of chapter 389 of the laws of 1997, is amended to
17 read as follows:
18 1. For the privilege of exercising its franchise or doing business in
19 the metropolitan commuter transportation district in a corporate or
20 organized capacity, there is hereby imposed on every taxpayer subject to
21 tax under this article, other than a New York S corporation, for the
22 taxable years commencing on or after January first, nineteen hundred
23 eighty-two but ending before December thirty-first, two thousand one, a
24 tax surcharge, in addition to the tax imposed under section fourteen
25 hundred fifty-one of this article, at the rate of eighteen per centum of
26 the tax imposed under such section fourteen hundred fifty-one of this
27 article, for such taxable years or any part of such taxable years ending
28 before December thirty-first, nineteen hundred eighty-three after the
546 13001-04-9
1 deduction of any credits otherwise allowable under this article, and at
2 the rate of seventeen per centum of the tax imposed under such section
3 for such taxable years or any part of such taxable years ending on or
4 after December thirty-first, nineteen hundred eighty-three after the
5 deduction of any credits otherwise allowable under this article;
6 provided however, that such rates of tax surcharge shall be applied only
7 to that portion of the tax imposed under section fourteen hundred
8 fifty-one of this article after the deduction of any credits otherwise
9 allowable under this article which is attributable to the taxpayer’s
10 business activity carried on within the metropolitan commuter transpor-
11 tation district; and provided, further, that the tax surcharge imposed
12 by this section shall not be imposed upon any taxpayer for more than two
13 hundred twenty-eight months. Provided however, that for taxable years
14 commencing on or after July first, two thousand, such surcharge shall be
15 calculated as if the rate of the basic tax computed under subsection (a)
16 of section fourteen hundred fifty-five of this article was nine percent.
17 § 3. Paragraph 1 of subdivision (a) of section 1502 of the tax law, as
18 amended by chapter 57 of the laws of 1977, is amended to read as
19 follows:
20 (1) for taxable years beginning before July first, two thousand, nine
21 percent of the taxpayer’s entire net income, or portion thereof allo-
22 cated within this state, for the taxable year, or part thereof, except
23 that for taxable years beginning prior to January first, nineteen
24 hundred seventy-eight, the rate shall be four and five-tenths percent;
25 for taxable years beginning after June thirtieth, two thousand and
26 before July first, two thousand one, eight and one-half percent of the
27 taxpayer’s entire net income, or portion thereof allocated within this
28 state, for the taxable year, or part thereof; for taxable years begin-
547 13001-04-9
1 ning after June thirtieth, two thousand one and before July first, two
2 thousand two, eight percent of the taxpayer’s entire net income, or
3 portion thereof allocated within this state, for the taxable year, or
4 part thereof; and for taxable years beginning after June thirtieth, two
5 thousand two, seven and one-half percent of the taxpayer’s entire net
6 income, or portion thereof allocated within this state, for the taxable
7 year, or part thereof; or
8 § 4. Section 1502-a of the tax law is REPEALED.
9 § 5. Paragraph 1 of subdivision (a) of section 1505 of the tax law, as
10 amended by section 87 of part A of chapter 389 of the laws of 1997, is
11 amended to read as follows:
12 (1) Domestic, foreign and alien insurance corporations except life
13 insurance corporations. Notwithstanding the provisions of sections
14 fifteen hundred one and fifteen hundred ten of this article, and except
15 as otherwise provided in paragraph two of this subdivision, the amount
16 of taxes imposed under such sections for taxable years beginning on or
17 after January first, nineteen hundred seventy-seven, computed without
18 regard to any credits allowable against such tax other than those cred-
19 its provided under subdivisions (g) and (h) of section fifteen hundred
20 eleven of this article, shall not exceed an amount computed as if such
21 taxes were determined solely under section fifteen hundred ten, except
22 that for purposes of the limitation provided herein, the rate of tax
23 under such section shall be deemed to be (i) two and six-tenths percent
24 for taxable years beginning on or after January first, nineteen hundred
25 seventy-seven and before July first, two thousand, (ii) two and four
26 tenths percent for taxable years beginning after June thirtieth, two
27 thousand and before July first, two thousand one, (iii) two and two
28 tenths percent for taxable years beginning after June thirtieth, two
548 13001-04-9
1 thousand one and before July first, two thousand two, and (iv) two
2 percent for taxable years beginning after June thirtieth, two thousand
3 two.
4 § 6. Subdivision (a) of section 1505-a of the tax law, as amended by
5 chapter 59 of the laws of 1997, is amended to read as follows:
6 (a) Every domestic insurance corporation and every foreign or alien
7 insurance corporation, and every life insurance corporation described in
8 subdivision (b) of section fifteen hundred one of this article, for the
9 privilege of exercising its corporate franchise, or of doing business,
10 or of employing capital, or of owning or leasing property in the metro-
11 politan commuter transportation district in a corporate or organized
12 capacity, or of maintaining an office in the metropolitan commuter
13 transportation district, for all or any part of its taxable years
14 commencing on or after January first, nineteen hundred eighty-two, but
15 ending before December thirty-first, two thousand one, except corpo-
16 rations specified in subdivision (c) of section fifteen hundred twelve
17 of this article, shall annually pay, in addition to the taxes imposed by
18 sections fifteen hundred one and fifteen hundred ten of this article as
19 limited by section fifteen hundred five of this article, a tax surcharge
20 on the taxes imposed under sections fifteen hundred one and fifteen
21 hundred ten of this article as limited by section fifteen hundred five
22 of this article after the deduction of any credits otherwise allowable
23 under this article as allocated to such district. Such taxes shall be
24 allocated to such district for purposes of computing such tax surcharge
25 by applying the methodology, procedures and computations set forth in
26 subdivisions (a) and (b) of section fifteen hundred four of this arti-
27 cle, except that references to terms denoting New York premiums, and
28 total wages, salaries, personal service compensation and commissions
549 13001-04-9
1 within New York shall be read as denoting within the metropolitan commu-
2 ter transportation district and terms denoting total premiums and total
3 wages, salaries, personal service compensation and commissions shall be
4 read as denoting within the state. If it shall appear to the commission-
5 er that the application of the methodology, procedures and computations
6 set forth in such subdivisions (a) and (b) does not properly reflect the
7 activity, business or income of a taxpayer within the metropolitan
8 commuter transportation district, then the commissioner shall be author-
9 ized, in the commissioner’s discretion, to adjust such methodology,
10 procedures and computations for the purpose of allocating such taxes by:
11 (1) excluding one or more factors therein;
12 (2) including one or more other factors therein, such as expenses,
13 purchases, receipts other than premiums, real property or tangible
14 personal property; or
15 (3) any other similar or different method which allocates such taxes
16 by attributing a fair and proper portion of such taxes to the metropol-
17 itan commuter transportation district. The commissioner from time to
18 time shall publish all rulings of general public interest with respect
19 to any application of the provisions of the preceding sentence. The
20 commissioner may promulgate rules and regulations to further implement
21 the provisions of this section. Such tax surcharge shall be computed at
22 the rate of eighteen per centum of the taxes imposed under sections
23 fifteen hundred one and fifteen hundred ten of this article as limited
24 by section fifteen hundred five of this article, as allocated to such
25 district, for such taxable years or any part of such taxable years
26 ending before December thirty-first, nineteen hundred eighty-three after
27 the deduction of any credits otherwise allowable under this article, and
28 at the rate of seventeen per centum of the taxes imposed under such
550 13001-04-9
1 sections as limited by section fifteen hundred five of this article, as
2 allocated to such district, for such taxable years or any part of such
3 taxable years ending on or after December thirty-first, nineteen hundred
4 eighty-three after the deduction of any credits otherwise allowable
5 under this article; provided, however, that the tax surcharge imposed by
6 this section shall not be imposed upon any taxpayer for more than two
7 hundred twenty-eight months. Provided however, that for taxable years
8 commencing on or after July first, two thousand, such surcharge shall be
9 calculated as if (i) the rate of the tax computed under paragraph one of
10 subdivision (a) of section fifteen hundred two of this article was nine
11 percent and (ii) the rate of the limitation on tax set forth in section
12 fifteen hundred five of this article for domestic, foreign and alien
13 insurance corporations except life insurance corporations was two and
14 six-tenths percent.
15 § 7. This act shall take effect immediately; provided however that
16 section four of this act shall apply to taxable years beginning on or
17 after January 1, 2001.
18 PART VV
19 § 1. Subparagraph (ii) of paragraph (a) of subdivision 2 of section
20 2807-d of the public health law, as amended by section 113 of part A of
21 chapter 56 of the laws of 1998, is amended to read as follows:
22 (ii) For general hospitals the assessment shall be six-tenths of one
23 percent of each general hospital’s gross receipts received from all
24 patient care services and other operating income on a cash basis begin-
25 ning April first, nineteen hundred ninety-two for hospital or health-re-
26 lated services, including, but not limited to inpatient service, outpa-
27 tient service, emergency service, referred ambulatory service and
28 ambulatory surgical service; provided, however, that for all such gross
551 13001-04-9
1 receipts received on or after December first, nineteen hundred ninety-
2 eight, such assessment shall be two-tenths of one percent, and further
3 provided that [for all such gross receipts received on or after April
4 first, nineteen hundred ninety-nine, such assessment shall be one-tenth
5 of one percent, and further provided that] such assessment shall expire
6 and be of no further effect for all such gross receipts received on or
7 after April first, [two thousand] nineteen hundred ninety-nine.
8 § 2. Subparagraph (v) of paragraph (b) of subdivision 2 of section
9 2807-d of the public health law, as amended by section 114 of part A of
10 chapter 56 of the laws of 1998, is amended to read as follows:
11 (v) For residential health care facilities in addition a further addi-
12 tional assessment shall be (a) two and three-tenths percent of each
13 residential care facility’s gross receipts received from all patient
14 care services and other operating income on a cash basis beginning May
15 first, nineteen hundred ninety-six and ending December thirty-first,
16 nineteen hundred ninety-six for hospital or health-related services,
17 including adult day services and (b) one and nine-tenths percent of each
18 residential care facility’s gross receipts received from all patient
19 care services and other operating income on a cash basis beginning Janu-
20 ary first, nineteen hundred ninety-seven and ending February twenty-
21 eighth, nineteen hundred ninety-seven for hospital or health-related
22 services, including adult day services; provided, however, that for all
23 such gross receipts received on or after April first, nineteen hundred
24 ninety-seven, such further additional assessment shall be three and
25 six-tenths percent, and further provided that [for all such gross
26 receipts received on or after April first, nineteen hundred ninety-nine,
27 such further additional assessment shall be two and four-tenths percent,
28 and further provided that] such further additional assessment shall
552 13001-04-9
1 expire and be of no further effect for all such gross receipts received
2 on or after April first, [two thousand] nineteen hundred ninety-nine.
3 § 3. Subparagraph (iv) of paragraph (a) of subdivision 2 of section
4 2807-d of the public health law, as added by chapter 639 of the laws of
5 1996, is amended to read as follows:
6 (iv) Subject to the provisions of subdivision twelve of this section,
7 the assessment and additional assessment pursuant to subparagraphs (ii)
8 and (iii) of this paragraph during the period January first, nineteen
9 hundred ninety-eight through December thirty-first, nineteen hundred
10 ninety-eight for voluntary nonprofit and private proprietary general
11 hospitals which qualified for distributions made in accordance with
12 paragraph (c) of subdivision nineteen of section twenty-eight hundred
13 seven-c of this article as of December thirty-first, nineteen hundred
14 ninety-five shall be abated by seventy-five percent, and during the
15 period January first, nineteen hundred ninety-nine through [December]
16 March thirty-first, nineteen hundred ninety-nine shall be abated by
17 twenty-five percent.
18 § 4. Paragraph (c) of subdivision 2 of section 2807-d of the public
19 health law, as amended by section 115 of part A of chapter 56 of the
20 laws of 1998, is amended to read as follows:
21 (c) For all other facilities issued an operating certificate pursuant
22 to section twenty-eight hundred five of this article, including diagnos-
23 tic and treatment centers, the assessment shall be six-tenths of one
24 percent of each facility’s gross receipts received from all patient care
25 services and other operating income on a cash basis beginning January
26 first, nineteen hundred ninety-one for hospital or health-related
27 services, including diagnostic and treatment center services; provided,
28 however, that [for all such gross receipts received on or after April
553 13001-04-9
1 first, nineteen hundred ninety-nine, such assessment shall be two-tenths
2 of one percent, and further provided that] such assessment shall expire
3 and be of no further effect for all such gross receipts received on or
4 after April first, [two thousand] nineteen hundred ninety-nine.
5 § 5. Subdivision 9 of section 2807-d of the public health law, as
6 separately amended by chapters 309 and 639 of the laws of 1996, is
7 amended to read as follows:
8 9. Funds accumulated, including income from invested funds, from the
9 assessments specified in this section, including interest and penalties,
10 shall be deposited by the commissioner and:
11 (a) credited to the general fund;
12 (b) [provided, however, that funds accumulated, including income from
13 invested funds, from the further additional assessment provided in
14 accordance with subparagraphs (iii), (iv), and (v) of paragraph (b) of
15 subdivision two of this section, including interest and penalties, shall
16 be deposited by the commissioner and credited to a special revenue-other
17 special medical assistance fund to be established by the comptroller. To
18 the extent of funds appropriated therefore, funds shall be made avail-
19 able for payments under the medical assistance program provided pursuant
20 to title eleven of article five of the social services law;
21 (c) and] provided [further], however, that funds accumulated, includ-
22 ing income from invested funds, for a period from the assessment and
23 additional assessment provided in accordance with subparagraphs (ii) and
24 (iii) of paragraph (a) of subdivision two of this section, including
25 interest and penalties, on voluntary nonprofit and private proprietary
26 general hospitals which qualified for distributions made in accordance
27 with paragraph (c) of subdivision nineteen of section twenty-eight
28 hundred seven-c of this article as of December thirty-first, nineteen
554 13001-04-9
1 hundred ninety-five shall be transferred by the commissioner and consol-
2 idated with funds accumulated from the allowance pursuant to subdivision
3 two of section twenty-eight hundred seven-j of this article for such
4 period and allocated in accordance with subdivision nine of section
5 twenty-eight hundred seven-j of this article.
6 § 6. Paragraph (b) of subdivision 10 of section 2807-d of the public
7 health law, as amended by section 116 of part A of chapter 56 of the
8 laws of 1998, is amended to read as follows:
9 (b) provided, however, that for purposes of determining rates of
10 payment pursuant to this article for residential health care facilities,
11 for the period January first, nineteen hundred ninety-two through March
12 thirty-first, nineteen hundred ninety-nine, the additional assessment of
13 one and two-tenths percent, and for the period July first, nineteen
14 hundred ninety-five through March thirty-first, nineteen hundred nine-
15 ty-six the further additional assessment of three and eight-tenths
16 percent, and for the period April first, nineteen hundred ninety-six
17 through March thirty-first, nineteen hundred ninety-seven the further
18 additional assessment of one and nine-tenths percent, and for the peri-
19 od May first, nineteen hundred ninety-six through December thirty-first,
20 nineteen hundred ninety-six the further additional assessment of two and
21 three-tenths percent and for the period January first, nineteen hundred
22 ninety-seven through February twenty-eighth, nineteen hundred ninety-
23 seven the further additional assessment of one and nine-tenths percent,
24 and for the period April first, nineteen hundred ninety-seven through
25 March thirty-first, nineteen hundred ninety-nine the further additional
26 assessment of three and six-tenths percent, [and for the period April
27 first, nineteen hundred ninety-nine through March thirty-first, two
28 thousand the further additional assessment of two and four-tenths
555 13001-04-9
1 percent,] imposed pursuant to this section shall be a reimbursable cost
2 to be reflected as timely as practicable in rates of payment applicable
3 within the assessment period, contingent, for payments by governmental
4 agencies, on all federal approvals necessary by federal law and regu-
5 lations for federal financial participation in payments made for benefi-
6 ciaries eligible for medical assistance under title XIX of the federal
7 social security act.
8 § 7. Subparagraph (i) of paragraph (a) of subdivision 2 of section
9 3614-a of the public health law, as amended by section 117 of part A of
10 chapter 56 of the laws of 1998, is amended to read as follows:
11 (i) For certified home health agencies the assessment shall be six-
12 tenths of one percent of each certified home health agency’s gross
13 receipts received from all patient care services and other operating
14 income on a cash basis beginning January first, nineteen hundred nine-
15 ty-one for home care services; provided, however, that [for all such
16 gross receipts received on or after April first, nineteen hundred nine-
17 ty-nine, such assessment shall be two-tenths of one percent, and further
18 provided that] such assessment shall expire and be of no further effect
19 for all such gross receipts received on or after April first, [two thou-
20 sand] nineteen hundred ninety-nine.
21 § 8. Subparagraph (i) of paragraph (b) of subdivision 2 of section
22 3614-a of the public health law, as amended by section 118 of part A of
23 chapter 56 of the laws of 1998, is amended to read as follows:
24 (i) For providers of long term home health care programs the assess-
25 ment shall be six-tenths of one percent of each provider’s gross
26 receipts received from all patient care services and other operating
27 income on a cash basis beginning January first, nineteen hundred nine-
28 ty-one for long term home health care services; provided, however, that
556 13001-04-9
1 [for all such gross receipts received on or after April first, nineteen
2 hundred ninety-nine, such assessment shall be two-tenths of one percent,
3 and further provided that] such assessment shall expire and be of no
4 further effect for all such gross receipts received on or after April
5 first, [two thousand] nineteen hundred ninety-nine.
6 § 9. Subdivision 2 of section 3614-b of the public health law, as
7 amended by section 119 of part A of chapter 56 of the laws of 1998, is
8 amended to read as follows:
9 2. The assessment shall be six-tenths of one percent of such licensed
10 home care services agency’s gross receipts received from all patient
11 care services and other operating income on a cash basis beginning April
12 first, nineteen hundred ninety-two; provided, however, that [for all
13 such gross receipts received on or after April first, nineteen hundred
14 ninety-nine, such assessment shall be two-tenths of one percent, and
15 further provided that] such assessment shall expire and be of no further
16 effect for all such gross receipts received on or after April first,
17 [two thousand] nineteen hundred ninety-nine.
18 § 10. Subdivision 2 of section 367-i of the social services law, as
19 amended by section 120 of part A of chapter 56 of the laws of 1998, is
20 amended to read as follows:
21 2. The assessment shall be six-tenths of one percent of each such
22 provider’s gross receipts received from all personal care services and
23 other operating income on a cash basis beginning January first, nineteen
24 hundred ninety-one; provided, however, that [for all such gross receipts
25 received on or after April first, nineteen hundred ninety-nine, such
26 assessment shall be two-tenths of one percent, and further provided
27 that] such assessment shall expire and be of no further effect for all
557 13001-04-9
1 such gross receipts received on or after April first, [two thousand]
2 nineteen hundred ninety-nine.
3 § 11. Notwithstanding any inconsistent provision of paragraph (b) of
4 subdivision 9 of section 2807-d of the public health law, or any other
5 inconsistent provision of law, the comptroller is hereby authorized and
6 directed, upon request of the director of the budget, to transfer to the
7 general fund, funds accumulated, including income from invested funds,
8 from the further additional assessment provided in accordance with
9 subparagraphs (iii), (iv) and (v) of paragraph (b) of subdivision 2 of
10 section 2807-d of the public health law, including interest and penal-
11 ties, which were deposited by the commissioner of health and credited
12 prior to April 1, 1999 to the special revenue-other special medical
13 assistance fund established by the comptroller.
14 § 12. This act shall take effect April 1, 1999.
15 PART WW
16 § 1. Paragraph (d) and subparagraph 2 of paragraph (e) of subdivision
17 22 of section 210 of the tax law, paragraph (d) as added by chapter 309
18 of the laws of 1996 and subparagraph 2 of paragraph (e) as amended by
19 section 72 of part A of chapter 56 of the laws of 1998, are amended to
20 read as follows:
21 (d) Qualified agricultural property. For purposes of this subdivi-
22 sion, the term "qualified agricultural property" means land located in
23 this state which is used in agricultural production, and land improve-
24 ments, structures and buildings (excluding buildings used for the
25 taxpayer’s residential purpose) located on such land which are used or
26 occupied to carry out such production. Qualified agricultural property
27 also includes land set aside or retired under a federal supply manage-
28 ment or soil conservation program.
558 13001-04-9
1 (2) Allowable acreage. The allowable acreage is the sum of the base
2 acreage set forth below and fifty percent of the incremental acreage.
3 The incremental acreage is the excess of the entire acreage of qualified
4 agricultural land owned by the taxpayer over the base acreage. Except
5 as provided in subparagraph three of this paragraph:
6 For taxable years beginning: The base acreage is:
7 in 1997 100
8 after 1997 250
9 For taxable years beginning after nineteen hundred ninety-eight, the
10 total base acreage may be increased by any acreage enrolled or partic-
11 ipating during the taxable year in a federal environmental conservation
12 acreage reserve program pursuant to title three of the federal agricul-
13 ture improvement and reform act of nineteen hundred ninety-six.
14 § 2. Paragraph 4 and subparagraph (B) of paragraph 5 of subsection (n)
15 of section 606 of the tax law, paragraph 4 as added by chapter 309 of
16 the laws of 1996 and subparagraph (B) of paragraph 5 as amended by
17 section 73 of part A of chapter 56 of the laws of 1998, are amended to
18 read as follows:
19 (4) Qualified agricultural property. For purposes of this subsection,
20 the term "qualified agricultural property" means land located in this
21 state which is used in agricultural production, and land improvements,
22 structures and buildings (excluding buildings used for the taxpayer’s
23 residential purpose) located on such land which are used or occupied to
24 carry out such production. Qualified agricultural property also
25 includes land set aside or retired under a federal supply management or
26 soil conservation program.
559 13001-04-9
1 (B) Allowable acreage. The allowable acreage is the sum of the base
2 acreage set forth below and fifty percent of the incremental acreage.
3 The incremental acreage is the excess of the entire acreage of qualified
4 agricultural land owned by the taxpayer over the base acreage. Except as
5 provided in subparagraph (C) of this paragraph:
6 For taxable years beginning: The base acreage is:
7 in 1997 100
8 after 1997 250
9 For taxable years beginning after nineteen hundred ninety-eight, total
10 base acreage may be increased by any acreage enrolled or participating
11 during the taxable year in a federal environmental conservation acreage
12 reserve program pursuant to title three of the federal agriculture
13 improvement and reform act of nineteen hundred ninety-six.
14 § 3. This act shall take effect immediately, and shall apply to taxa-
15 ble years beginning after 1998.
16 PART XX
17 § 1. Section 185 of the tax law is amended by adding a new subdivision
18 7 to read as follows:
19 7. A taxpayer shall be allowed a credit in the amount of one thousand
20 dollars, to be credited against the tax imposed by this section. The
21 credit shall be deducted before any other allowable credits.
22 § 2. Subdivision 1 of section 192 of the tax law, as amended by chap-
23 ter 96 of the laws of 1976, is amended to read as follows:
24 1. Corporations paying franchise tax. Every corporation, association
25 or joint-stock company liable to pay a tax under section one hundred
26 eighty-three or one hundred eighty-five of this [chapter] article shall,
27 on or before March fifteenth in each year, make a written report to the
28 tax commission of its condition at the close of its business on the
560 13001-04-9
1 preceding December thirty-first, stating the amount of its authorized
2 capital stock, the amount of stock paid in, the date and rate per centum
3 of each dividend paid by it during the year ending with such day, the
4 entire amount of the capital of such corporation, and the capital
5 employed by it in this state during such year. Provided, however, any
6 taxpayer subject to tax under section one hundred eighty-five of this
7 article shall be exempt from such reporting requirement if the taxpay-
8 er’s tax computed under such section, without the application of any
9 credit, is one thousand dollars or less.
10 § 3. The opening paragraph of subdivision 1 of section 210 of the tax
11 law, as amended by chapter 190 of the laws of 1990, is amended to read
12 as follows:
13 The tax imposed by subdivision one of section two hundred nine of this
14 [chapter] article shall be[,]: (A) in the case of each taxpayer other
15 than a New York S corporation or a qualified homeowners association, the
16 sum of (1) the highest of the amounts prescribed in paragraphs (a), (b),
17 (c) and (d) of this subdivision and (2) the amount prescribed in para-
18 graph (e) of this subdivision, [and,] (B) in the case of each New York S
19 corporation, the amount prescribed in paragraph (g) of this subdivision,
20 and (C) in the case of a qualified homeowners association, the sum of
21 (1) the highest of the amounts prescribed in paragraphs (a), (b) and (c)
22 of this subdivision and (2) the amount prescribed in paragraph (e) of
23 this subdivision. For purposes of this paragraph, the term "qualified
24 homeowners association" means a homeowners association, as such term is
25 defined in subsection (c) of section five hundred twenty-eight of the
26 internal revenue code without regard to subparagraph (E) of paragraph
27 one of such subsection (relating to elections to be taxed pursuant to
28 such section), which has no homeowners association taxable income, as
561 13001-04-9
1 such term is defined in subsection (d) of such section. Provided,
2 however, that in the case of a small business taxpayer (other than a New
3 York S corporation) as defined in paragraph (f) of this subdivision, if
4 the amount prescribed in such paragraph (b) is higher than the amount
5 prescribed in such paragraph (a) solely by reason of the application of
6 the rate applicable to small business taxpayers, then with respect to
7 such taxpayer the tax referred to in the previous sentence shall be the
8 sum of (1) the highest of the amounts prescribed in paragraphs (a), (c)
9 and (d) of this subdivision and (2) the amount prescribed in paragraph
10 (e) of this subdivision.
11 § 4. Subdivision (a) of section 301-a of the tax law, as added by
12 chapter 190 of the laws of 1990, is amended to read as follows:
13 (a) General. Notwithstanding any other provision of this chapter, or
14 of any other law, for taxable months commencing on or after the first
15 day of September, nineteen hundred ninety, there is hereby imposed upon
16 every petroleum business for the privilege of engaging in business,
17 doing business, employing capital, owning or leasing property, or main-
18 taining an office in this state, a monthly tax for each or any part of a
19 taxable month equal to the sum of the motor fuel component determined
20 pursuant to subdivision (b) of this section, the automotive-type diesel
21 motor fuel component determined pursuant to paragraph one of subdivision
22 (c) of this section, the nonautomotive-type diesel motor fuel component
23 determined pursuant to paragraph two of subdivision (c) of this section
24 and the residual petroleum product component determined pursuant to
25 subdivision (d) of this section. [In no event shall the tax imposed by
26 this article be less than twenty-five dollars for each or any part of a
27 taxable month.]
562 13001-04-9
1 § 5. Subdivision (a) of section 301-e of the tax law, as amended by
2 chapter 2 of the laws of 1995, is amended to read as follows:
3 (a) Notwithstanding any other provision of this chapter, for taxable
4 months commencing on and after the first day of September, nineteen
5 hundred ninety, there is hereby imposed upon every aviation fuel busi-
6 ness for the privilege of engaging in business, doing business, employ-
7 ing capital, owning or leasing property, or maintaining an office in
8 this state, for all or any part of each of its taxable months a monthly
9 tax equal to the sum of (1) the aviation gasoline component determined
10 pursuant to subdivision (b) of this section and (2) the kero-jet compo-
11 nent determined pursuant to subdivision (c) of this section. [In no
12 event shall the tax imposed by this article be less than two dollars for
13 each or any part of a taxable month.] Provided, however, the commis-
14 sioner may permit the tax imposed under this subdivision and returns
15 related to such tax to be paid and filed for a period covering twelve
16 consecutive taxable months by aviation fuel businesses which are not
17 airlines.
18 § 6. Subdivision (j) of section 1111 of the tax law, as added by
19 chapter 2 of the laws of 1995, is amended to read as follows:
20 (j)(1) The tax required to be prepaid pursuant to section eleven
21 hundred three of this article shall be computed by multiplying the base
22 retail price by a tax rate of seven percent and rounding the result
23 thereof to the nearest whole cent.
24 (2) For purposes of this subdivision, the base retail price shall mean
25 for the period September first, nineteen hundred ninety-five, through
26 August thirty-first, nineteen hundred ninety-six, one dollar for each
27 package of cigarettes containing ten cigarettes or fraction thereof, and
28 two dollars for each package of cigarettes containing twenty cigarettes
563 13001-04-9
1 or fraction thereof in excess of ten and, if a package contains more
2 than twenty cigarettes, the base retail price shall be increased by
3 fifty cents for each five cigarettes or fraction thereof in excess of
4 twenty. [Provided, however, if the United States of America enacts a
5 law by July first, nineteen hundred ninety-five, imposing on manufactur-
6 ers, distributors, wholesalers, retailers, agents or other persons,
7 other than retail consumers, a new or additional excise tax on ciga-
8 rettes or repealing or reducing the rate of such a tax, and such imposi-
9 tion, repeal or reduction becomes effective no later than September
10 first, nineteen hundred ninety-five, then the base retail price set
11 forth in the preceding sentence shall be increased by the amount of the
12 new or additional federal excise tax or reduced by the amount of such
13 repeal or reduction, as effective on or before September first, nineteen
14 hundred ninety-five, applicable to such quantities of cigarettes.]
15 Commencing on the first day of September, nineteen hundred ninety-six,
16 and on the first day of September of each year thereafter, the base
17 retail price then in effect on the immediately preceding August thirty-
18 first shall be adjusted as follows: Such base retail price shall be
19 multiplied by a fraction, the numerator of which is the sum of the
20 [monthly consumer price indices for all urban consumers for the north-
21 east urban region (unadjusted) published by the bureau of labor statis-
22 tics of the United States department of labor for the category of
23 commodities designated tobacco and smoking products] total of the major
24 manufacturer’s list prices for a carton of standard brand cigarettes
25 containing ten packages of twenty cigarettes, as published by the
26 department in conjunction with its determination of the cost of ciga-
27 rettes under article twenty-A of this chapter, plus the amount of ciga-
28 rette tax imposed by subdivision one of section four hundred seventy-one
564 13001-04-9
1 of this chapter on such a carton of cigarettes, in effect on the first
2 day of each month for the twelve consecutive months ending with the
3 immediately preceding month of [May] June, and the denominator of which
4 is the sum of the [monthly consumer price indices for all urban consum-
5 ers for the northeast urban region (unadjusted) published by such bureau
6 of labor statistics for such category of products] total of the major
7 manufacturer’s list prices for a carton of standard brand cigarettes
8 containing ten packages of twenty cigarettes, as published by the
9 department in conjunction with its determination of the cost of ciga-
10 rettes under article twenty-A of this chapter, plus the amount of ciga-
11 rette tax imposed by subdivision one of section four hundred seventy-one
12 of this chapter on such a carton of cigarettes, in effect on the first
13 day of each month for the twelve consecutive months ending with the
14 month of [May] June in the immediately preceding year. Provided, howev-
15 er, for the period commencing September first, nineteen hundred ninety-
16 nine, the denominator shall be such total plus the amount of such tax,
17 in effect on the first day of each month for the twelve consecutive
18 months ending with the month of June, nineteen hundred ninety-seven.
19 Provided, further, that if on the first day of any month the major
20 manufacturer’s list prices for a carton of standard brand cigarettes are
21 not the same, the list price for a carton of standard brand cigarettes
22 for that month will be determined by calculating a weighted average of
23 the major manufacturer’s list prices for a carton of standard brand
24 cigarettes in effect on the first day of such month, using the most
25 recently published annual national market shares of the major manufac-
26 turers of cigarettes. The commissioner shall cause to be published in
27 the section for miscellaneous notices in the state register, and give
28 other appropriate general notice of, the base retail price adjustment
565 13001-04-9
1 calculation and the resulting base retail price fixed by this section
2 for the period commencing September first of each year beginning Septem-
3 ber first, nineteen hundred ninety-six, no later than the immediately
4 preceding first day of August. The calculation and publication of the
5 base retail price so fixed by provisions of this section shall not be
6 included within the definition of "rule" as defined in paragraph (a) of
7 subdivision two of section one hundred two of the state administrative
8 procedure act. The base retail prices determined pursuant to this para-
9 graph shall be rounded to the nearest one-tenth of one cent for each
10 package containing ten cigarettes or fraction thereof, for each package
11 containing twenty cigarettes and, if packages are sold in excess of
12 twenty cigarettes and stamps have been issued therefor, for each such
13 package.
14 § 7. Subdivision (a) of section 1142-A of the tax law, as amended by
15 chapter 141 of the laws of 1995, is amended to read as follows:
16 (a) For the period commencing December first, nineteen hundred ninety
17 two, and ending November thirtieth, [nineteen hundred ninety-nine] two
18 thousand four, every person required to collect the taxes described in
19 paragraph six of subdivision (c) of section eleven hundred five, subdi-
20 vision (c) of section eleven hundred seven and paragraph one of subdivi-
21 sion (a) of section twelve hundred twelve-A of this chapter, in a county
22 with a population density in excess of fifty thousand persons per square
23 mile in any city in this state having a population of one million or
24 more, shall be subject to the requirements set forth in this section,
25 except as otherwise provided herein.
26 § 8. This act shall take effect immediately; provided, however, that:
27 (a) sections one and two of this act shall apply to taxable years
28 beginning on or after January 1, 2000.
566 13001-04-9
1 (b) section three of this act shall apply to taxable years beginning
2 on or after January 1, 1999.
3 (c) sections four and five of this act shall take effect December 1,
4 1999, provided, further, that any rules or regulations necessary to
5 implement the provisions of sections four and five of this act may be
6 promulgated and any procedures, forms or instructions necessary for such
7 implementation may be adopted and issued on and after the date this act
8 shall have become a law; and the provisions of article 13-A of the tax
9 law amended by sections four and five of this act shall continue in
10 effect with respect to the administration, collection and enforcement of
11 taxes accruing prior to repeal or amendment.
12 (d) section six of this act shall apply to adjustments and determi-
13 nations regarding the base retail price required to be made for periods
14 beginning on and after September 1, 1999.
15 PART YY
16 § 1. Subsection (a) of section 951 of the tax law, as amended by
17 section 33 of part A of chapter 56 of the laws of 1998, is amended to
18 read as follows:
19 (a) Dates. For purposes of this article, any reference to the internal
20 revenue code means the United States Internal Revenue Code of 1986, with
21 all amendments enacted on or before [August fifth, nineteen hundred
22 ninety-seven] July twenty-second, nineteen hundred ninety-eight, and,
23 unless specifically provided otherwise in this article, any reference to
24 December thirty-first, nineteen hundred seventy-six or January first,
25 nineteen hundred seventy-seven contained in the provisions of such code
26 which are applicable to the determination of the tax imposed by this
27 article shall be read as a reference to June thirtieth, nineteen hundred
28 seventy-eight or July first, nineteen hundred seventy-eight, respective-
567 13001-04-9
1 ly. Notwithstanding the foregoing, the unified credit against the estate
2 tax provided in section two thousand ten of the internal revenue code
3 shall, for purposes of this article, be the amount allowed by such
4 section under the applicable federal law in effect on the decedent’s
5 date of death. Provided, however, the amount of such credit allowable
6 for purposes of this article shall not exceed the amount allowable as if
7 the federal unified credit did not exceed the tax due under section two
8 thousand one of the internal revenue code on a federal taxable estate of
9 one million dollars.
10 § 2. Paragraph 1 of subsection (d) of section 954 of the tax law, as
11 amended by section 34 of part A of chapter 56 of the laws of 1998, is
12 amended to read as follows:
13 (1) For provisions of the internal revenue code defining the federal
14 gross estate, see:
15 Sec. 2031. Definition of gross estate.
16 Sec. 2033. Property in which the decedent had an interest.
17 [Sec. 2033A. Family-owned business exclusion.]
18 Sec. 2034. Dower or curtesy interest.
19 Sec. 2035. Adjustments for gifts made within three years of
20 decedent’s death.
21 Sec. 2036. Transfers with retained life estate.
22 Sec. 2037. Transfers taking effect at death.
23 Sec. 2038. Revocable transfers.
24 Sec. 2039. Annuities.
25 Sec. 2040. Joint interests.
26 Sec. 2041. Powers of appointment.
27 Sec. 2042. Proceeds of life insurance.
28 Sec. 2043. Transfers for insufficient consideration.
568 13001-04-9
1 Sec. 2044. Certain property for which marital deduction was previous-
2 ly allowed.
3 Sec. 2045. Prior interests.
4 § 2-a. Paragraph 1 of subsection (c) of section 954 of the tax law, as
5 separately amended by section 12 of part A of chapter 389 of the laws of
6 1997 and section 34 of part A of chapter 56 of the laws of 1998, is
7 amended to read as follows:
8 (1) For provisions of the internal revenue code defining the federal
9 gross estate, see:
10 Sec. 2031. Definition of gross estate.
11 Sec. 2032. Alternate valuation.
12 Sec. 2032A. Valuation of certain farm, etc., real property.
13 Sec. 2033. Property in which the decedent had an interest.
14 [Sec. 2033A. Family-owned business exclusion.]
15 Sec. 2034. Dower or curtesy interest.
16 Sec. 2035. Adjustments for gifts made within three years of decedent’s
17 death.
18 Sec. 2036. Transfers with retained life estate.
19 Sec. 2037. Transfers taking effect at death.
20 Sec. 2038. Revocable transfers.
21 Sec. 2039. Annuities.
22 Sec. 2040. Joint interests.
23 Sec. 2041. Powers of appointment.
24 Sec. 2042. Proceeds of life insurance.
25 Sec. 2043. Transfers for insufficient consideration.
26 Sec. 2044. Certain property for which marital deduction was previously
27 allowed.
28 Sec. 2045. Prior interests.
569 13001-04-9
1 Sec. 2046. Disclaimers.
2 § 3. Section 954-c of the tax law is REPEALED.
3 § 4. Subsection (g) of section 955 of the tax law is relettered
4 subsection (h) and a new subsection (g) is added to read as follows:
5 (g) Family-owned business interests.--(1) If a deduction for family-
6 owned business interests allowable under section two thousand fifty-sev-
7 en of the internal revenue code is elected pursuant to this section, the
8 following provisions of such section two thousand fifty-seven shall not
9 be applicable to the deduction for family-owned business interests
10 allowed for purposes of this article: (A) paragraph three of subsection
11 (a) of such section (relating to coordination with the unified credit);
12 (B) subsection (f) of such section (imposing an additional estate tax
13 for failure to materially participate in business or dispositions of
14 interests); (C) subsection (h) of such section (requiring the filing of
15 an agreement with the commissioner); and (D) any other provision of such
16 section which is not relevant to the deduction for family-owned business
17 interests allowed by this section.
18 (2) Where no federal estate tax return is required to be filed under
19 the internal revenue code, the time for making the election referred to
20 in paragraph one of this subsection shall be the same as would be
21 required under the federal estate tax, had a federal estate tax return
22 been required to be filed, and the election with respect to the tax
23 imposed under this article shall be made on the return of the tax
24 imposed by this article.
25 § 5. Paragraph 1 of subsection (h) of section 955 of the tax law, as
26 amended by chapter 190 of the laws of 1990 and such subsection as relet-
27 tered by section four of this act, is amended to read as follows:
570 13001-04-9
1 (1) For provisions of the internal revenue code specifying the
2 deductions allowable for federal estate tax purposes, see:
3 Sec. 2032(b). Alternate valuation--special rule for deductions.
4 Sec. 2046. Disclaimers.
5 Sec. 2053. Expenses, indebtedness, and taxes.
6 Sec. 2054. Losses.
7 Sec. 2055. Transfers for public, charitable, and religious uses.
8 Sec. 2056. Bequests, etc., to surviving spouse.
9 Sec. 2056A. Qualified domestic trust.
10 Sec. 2057. Family-owned business interests.
11 § 6. Subsection (i) of section 958-a of the tax law, as added by
12 section 39 of part A of chapter 56 of the laws of 1998, is amended to
13 read as follows:
14 (i) [Family owned] Family-owned business [exclusion] deduction.--If
15 [an exclusion from federal gross estate is elected pursuant to section
16 two thousand thirty-three-A of the internal revenue code, or an exclu-
17 sion] a family-owned business deduction from New York gross estate in
18 accordance with section two thousand fifty-seven of the internal revenue
19 code is elected and allowed pursuant to section [nine hundred fifty-
20 four-c] nine hundred fifty-five of this article, a credit may not be
21 claimed under this section.
22 § 7. Subsection (f) of section 958-b of the tax law, as added by
23 section 40 of part A of chapter 56 of the laws of 1998, is amended to
24 read as follows:
25 (f) [Family owned] Family-owned business [exclusion] deduction.--If
26 [an exclusion from federal gross estate is elected pursuant to section
27 two thousand thirty-three-A of the internal revenue code, or an exclu-
28 sion] a family-owned business deduction from New York gross estate in
571 13001-04-9
1 accordance with section two thousand fifty-seven of the internal revenue
2 code is elected and allowed pursuant to section [nine hundred fifty-
3 four-c] nine hundred fifty-five of this article, a credit may not be
4 claimed under this section.
5 § 8. Paragraph 6 of subsection (c) of section 2031 contained in
6 section 2 of chapter 1013 of the laws of 1962 amending the tax law
7 relating to the imposition of a tax on the transfer of estates of
8 certain decedents, as added by section 44 of part A of chapter 56 of the
9 laws of 1998, is amended to read as follows:
10 (6) ELECTION.--The election under this subsection shall be made on or
11 before the due date (including extensions) for filing the return of
12 [the] tax imposed by section 2001 and shall be made on such return.
13 [Such an election, once made, shall be irrevocable.]
14 § 9. Paragraph 9 of subsection (c) of section 2031 contained in
15 section 2 of chapter 1013 of the laws of 1962 amending the tax law
16 relating to the imposition of a tax on the transfer of estates of
17 certain decedents, is renumbered paragraph 10 and a new paragraph 9 is
18 added to read as follows:
19 (9) TREATMENT OF EASEMENTS GRANTED AFTER DEATH.--In any case in which
20 the qualified conservation easement is granted after the date of the
21 decedent’s death and on or before the due date (including extensions)
22 for filing the return of tax imposed by section 2001, the deduction
23 under section 2055(f) with respect to such easement shall be allowed to
24 the estate but only if no charitable deduction is allowed under chapter
25 1 to any person with respect to the grant of such easement.
26 § 10. Section 2033A contained in section 2 of chapter 1013 of the laws
27 of 1962 amending the tax law relating to the imposition of a tax on the
28 transfer of estates of certain decedents is renumbered section 2057 and
572 13001-04-9
1 the section heading and subsection (a) of such section, as added by
2 section 50 of part A of chapter 56 of the laws of 1998, are amended to
3 read as follows:
4 FAMILY-OWNED BUSINESS [EXCLUSION] INTERESTS. (a) [IN] GENERAL
5 RULE.--[In the case of an estate of a decedent to which this section
6 applies, the value of the gross estate shall not include the lesser of--
7 (1) the adjusted value of the qualified family owned business inter-
8 ests of the decedent otherwise includible in the estate, or
9 (2) the excess of $1,300,000 over the applicable exclusion amount
10 under section 2010(c) with respect to such estate]
11 (1) ALLOWANCE OF DEDUCTION.--For purposes of the tax imposed by
12 section 2001, in the case of an estate of a decedent to which this
13 section applies, the value of the taxable estate shall be determined by
14 deducting from the value of the gross estate the adjusted value of the
15 qualified family-owned business interests of the decedent which are
16 described in subsection (b)(2).
17 (2) MAXIMUM DEDUCTION.--The deduction allowed by this section shall
18 not exceed $675,000.
19 (3) COORDINATION WITH UNIFIED CREDIT.--
20 (A) IN GENERAL.--Except as provided in subparagraph (B), if this
21 section applies to an estate, the applicable exclusion amount under
22 section 2010 shall be $625,000.
23 (B) INCREASE IN UNIFIED CREDIT IF DEDUCTION IS LESS THAN $675,000.--If
24 the deduction allowed by this section is less than $675,000, the amount
25 of the applicable exclusion amount under section 2010 shall be increased
26 (but not above the amount which would apply to the estate without regard
27 to this section) by the excess of $675,000 over the amount of the
28 deduction allowed.
573 13001-04-9
1 § 11. Subparagraph (A) of paragraph 2 of subsection (b) of section
2 2057 contained in section 2 of chapter 1013 of the laws of 1962 amending
3 the tax law relating to the imposition of a tax on the transfer of
4 estates of certain decedents, as added by section 50 of part A of chap-
5 ter 56 of the laws of 1998 and such section as renumbered by section ten
6 of this act, is amended to read as follows:
7 (A) are included in determining the value of the gross estate [(with-
8 out regard to this section)], and
9 § 12. Paragraph 3 of subsection (b) of section 2057 contained in
10 section 2 of chapter 1013 of the laws of 1962 amending the tax law
11 relating to the imposition of a tax on the transfer of estates of
12 certain decedents, as added by section 50 of part A of chapter 56 of the
13 laws of 1998 and such section as renumbered by section ten of this act,
14 is amended to read as follows:
15 (3) INCLUDIBLE GIFTS OF INTERESTS.--The amount of the gifts of quali-
16 fied [family owned] family-owned business interests determined under
17 this paragraph is the [excess] sum of--
18 (A) [the sum of--
19 (i)] the amount of such gifts from the decedent to members of the
20 decedent’s family taken into account under subsection 2001(b)(1)(B),
21 plus
22 [(ii)] (B) the amount of such gifts otherwise excluded under section
23 2503(b), to the extent such interests are continuously held by members
24 of such family (other than the decedent’s spouse) between the date of
25 the gift and the date of the decedent’s death[, over
26 (B) the amount of such gifts from the decedent to members of the
27 decedent’s family otherwise included in the gross estate].
574 13001-04-9
1 § 13. The opening paragraph of subsection (c) of section 2057
2 contained in section 2 of chapter 1013 of the laws of 1962 amending the
3 tax law relating to the imposition of a tax on the transfer of estates
4 of certain decedents, as added by section 50 of part A of chapter 56 of
5 the laws of 1998 and such section as renumbered by section ten of this
6 act, is amended to read as follows:
7 ADJUSTED GROSS ESTATE.--For purposes of this section, the term
8 "adjusted gross estate" means the value of the gross estate [(determined
9 without regard to this section)]--
10 § 14. Paragraph 1 of subsection (e) of section 2057 contained in
11 section 2 of chapter 1013 of the laws of 1962 amending the tax law
12 relating to the imposition of a tax on the transfer of estates of
13 certain decedents, as added by section 50 of part A of chapter 56 of the
14 laws of 1998 and such section as renumbered by section ten of this act,
15 is amended to read as follows:
16 (1) IN GENERAL.--For purposes of this section, the term "qualified
17 [family owned] family-owned business interest" means--
18 (A) an interest as a proprietor in a trade or business carried on as a
19 proprietorship, or
20 (B) an interest in an entity carrying on a trade or business, if--
21 (i) at least--
22 (I) 50 percent of such entity is owned (directly or indirectly) by the
23 decedent and members of the decedent’s family,
24 (II) 70 percent of such entity is so owned by members of 2 families,
25 or
26 (III) 90 percent of such entity is so owned by members of 3 families,
27 and
575 13001-04-9
1 (ii) for purposes of subclause (II) or (III) of clause (i), at least
2 30 percent of such entity is so owned by the decedent and members of the
3 decedent’s family.
4 For purposes of the preceding sentence, a decedent shall be treated as
5 engaged in a trade or business if any member of the decedent’s family is
6 engaged in such trade or business.
7 § 15. Paragraph 2 of subsection (e) of section 2057 contained in
8 section 2 of chapter 1013 of the laws of 1962 amending the tax law
9 relating to the imposition of a tax on the transfer of estates of
10 certain decedents, as added by section 50 of part A of chapter 56 of the
11 laws of 1998 and such section as renumbered by section ten of this act,
12 is amended to read as follows:
13 (2) LIMITATION.--Such term shall not include--
14 (A) any interest in a trade or business the principal place of busi-
15 ness of which is not located in the United States,
16 (B) any interest in an entity, if the stock or debt of such entity or
17 a controlled group (as defined in section 267(f)(1)) of which such enti-
18 ty was a member was readily tradable on an established securities market
19 or secondary market (as defined by the Secretary) at any time within 3
20 years of the date of the decedent’s death,
21 (C) any interest in a trade or business not described in section
22 542(c)(2), if more than 35 percent of the adjusted ordinary gross income
23 of such trade or business for the taxable year which includes the date
24 of the decedent’s death would qualify as personal holding company income
25 (as defined in section 543(a)[)] without regard to paragraph (2)(B)
26 thereof) if such trade or business were a corporation,
27 (D) that portion of an interest in a trade or business that is attrib-
28 utable to--
576 13001-04-9
1 (i) cash or marketable securities, or both, in excess of the reason-
2 ably expected day-to-day working capital needs of such trade or busi-
3 ness, and
4 (ii) any other assets of the trade or business (other than assets used
5 in the active conduct of a trade or business described in section
6 542(c)(2)), which produce, or are held for the production of, [income of
7 which is described in section 543(a) or] personal holding company income
8 (as defined in subparagraph (C)) or income described in section
9 954(c)(1) (determined without regard to subparagraph (A) thereof and by
10 substituting "trade or business" for "controlled foreign corporation").
11 In the case of a lease of property on a net cash basis by the decedent
12 to a member of the decedent’s family, income from such lease shall not
13 be treated as personal holding company income for purposes of subpara-
14 graph (C), and such property shall not be treated as an asset described
15 in subparagraph (D)(ii), if such income and property would not be so
16 treated if the lessor had engaged directly in the activities engaged in
17 by the lessee with respect to such property.
18 § 16. Subparagraph (A) of paragraph 2 of subsection (f) of section
19 2057 contained in section 2 of chapter 1013 of the laws of 1962 amending
20 the tax law relating to the imposition of a tax on the transfer of
21 estates of certain decedents, as added by section 50 of part A of chap-
22 ter 56 of the laws of 1998 and such section as renumbered by section ten
23 of this act, is amended and a new subparagraph (C) is added to read as
24 follows:
25 (A) IN GENERAL.--The amount of the additional estate tax imposed by
26 paragraph (1) shall be equal to--
27 (i) the applicable percentage of the adjusted tax difference attribut-
28 able to the qualified [family owned] family-owned business interest [(as
577 13001-04-9
1 determined under rules similar to the rules of section 2032A(c)(2)(B))],
2 plus
3 (ii) interest on the amount determined under clause (i) at the under-
4 payment rate established under section 6621 for the period beginning on
5 the date the estate tax liability was due under this chapter and ending
6 on the date such additional estate tax is due.
7 (C) ADJUSTED TAX DIFFERENCE.--For purposes of subparagraph (A)--
8 (i) IN GENERAL.--The adjusted tax difference attributable to a quali-
9 fied family-owned business interest is the amount which bears the same
10 ratio to the adjusted tax difference with respect to the estate (deter-
11 mined under clause (ii)) as the value of such interest bears to the
12 value of all qualified family-owned business interests described in
13 subsection (b)(2).
14 (ii) ADJUSTED TAX DIFFERENCE WITH RESPECT TO THE ESTATE.--For purposes
15 of clause (i), the term "adjusted tax difference with respect to the
16 estate" means the excess of what would have been the estate tax liabil-
17 ity but for the election under this section over the estate tax liabil-
18 ity. For purposes of this clause, the term "estate tax liability" means
19 the tax imposed by section 2001 reduced by the credits allowable against
20 such tax.
21 § 17. Subsection (f) of section 2057 contained in section 2 of chapter
22 1013 of the laws of 1962 amending the tax law relating to the imposition
23 of a tax on the transfer of estates of certain decedents, such section
24 as renumbered by section ten of this act, is amended by adding a new
25 paragraph 3 to read as follows:
26 (3) USE IN TRADE OR BUSINESS BY FAMILY MEMBERS.--A qualified heir
27 shall not be treated as disposing of an interest described in subsection
28 (e)(1)(A) by reason of ceasing to be engaged in a trade or business so
578 13001-04-9
1 long as the property to which such interest relates is used in a trade
2 or business by any member of such individual’s family.
3 § 18. Paragraph 1 of subsection (g) of section 2057 contained in
4 section 2 of chapter 1013 of the laws of 1962 amending the tax law
5 relating to the imposition of a tax on the transfer of the estates of
6 certain decedents, as added by section 50 of part A of chapter 56 of the
7 laws of 1998 and such section as renumbered by section ten of this act,
8 is amended to read as follows:
9 (1) IN GENERAL.--Except upon the application of subparagraph (F) [or
10 (M)] of subsection (i)(3), if a qualified heir is not a citizen of the
11 United States, any interest under this section passing to or acquired by
12 such heir (including any interest held by such heir at a time described
13 in subsection (f)(1)(C)) shall be treated as a qualified [family owned]
14 family-owned business interest only if the interest passes or is
15 acquired (or is held) in a qualified trust.
16 § 19. Subparagraphs (L), (M) and (N) of paragraph 3 of subsection (i)
17 of section 2057 contained in section 2 of chapter 1013 of the laws of
18 1962 amending the tax law relating to the imposition of a tax on the
19 transfer of estates of certain decedents, such section as renumbered by
20 section ten of this act, are relettered subparagraphs (N), (O) and (P)
21 and two new subparagraphs (L) and (M) are added to read as follows:
22 (L) Section 2032A(g) (relating to application to interests in partner-
23 ships, corporations, and trusts).
24 (M) Subsections (h) and (i) of section 2032A.
25 § 20. Section 2057 contained in section 2 of chapter 1013 of the laws
26 of 1962 amending the tax law relating to the imposition of a tax on the
27 transfer of estates of certain decedents is REPEALED.
579 13001-04-9
1 § 21. Clause (iii) of subparagraph (A) of paragraph 7 of subsection
2 (b) of section 6166 contained in section 2 of chapter 1013 of the laws
3 of 1962 amending the tax law relating to the imposition of a tax on the
4 transfer of estates of certain decedents, as amended by section 64 of
5 part A of chapter 56 of the laws of 1998, is amended to read as follows:
6 (iii) for purposes of applying section 6601(j) [(relating to 2-per-
7 cent rate of interest) shall not apply], the 2-percent portion (as
8 defined in such section) shall be treated as being zero.
9 § 22. Clause (iii) of subparagraph (A) of paragraph 8 of subsection
10 (b) of section 6166 contained in section 2 of chapter 1013 of the laws
11 of 1962 amending the tax law relating to the imposition of a tax on the
12 transfer of estates of certain decedents, as amended by section 65 of
13 part A of chapter 56 of the laws of 1998, is amended to read as follows:
14 (iii) 2-PERCENT INTEREST RATE NOT TO APPLY.--[Section] For purposes of
15 applying section 6601(j) [(relating to 2-percent rate of interest) shall
16 not apply], the 2-percent portion (as defined in such section) shall be
17 treated as being zero.
18 § 23. Subsection (a) of section 1020 of the tax law, as amended by
19 section 67 of part A of chapter 56 of the laws of 1998, is amended to
20 read as follows:
21 (a) General. For purposes of this article, any reference to the inter-
22 nal revenue code means the United States Internal Revenue Code of 1986,
23 with all amendments enacted on or before [August fifth, nineteen hundred
24 ninety-seven] July twenty-second, nineteen hundred ninety-eight.
25 § 24. Paragraph 1 of subsection (b) of section 2652 contained in
26 section 1025 of the tax law, as amended by section 70 of part A of chap-
27 ter 56 of the laws of 1998, is amended to read as follows:
580 13001-04-9
1 (1) Trust.--The term "trust" includes any arrangement (other than an
2 estate) which, although not a trust, has substantially the same effect
3 as a trust. [Such term shall not include any trust during any period the
4 trust is treated as part of an estate under section 646.]
5 § 25. Subsection (b) of section 2654 contained in section 1025 of the
6 tax law, as added by chapter 190 of the laws of 1990, is amended to read
7 as follows:
8 (b) Certain trusts treated as separate trusts.--For purposes of this
9 chapter--
10 (1) the portions of a trust attributable to transfers from different
11 transferors shall be treated as separate trusts, and
12 (2) substantially separate and independent shares of different benefi-
13 ciaries in a trust shall be treated as separate trusts.
14 Except as provided in the preceding sentence, nothing in this chapter
15 shall be construed as authorizing a single trust to be treated as two or
16 more trusts. For purposes of this subsection, a trust shall be treated
17 as part of an estate during any period that the trust is so treated
18 under section 645.
19 § 26. Section 38 of part A of chapter 56 of the laws of 1998 amending
20 the tax law and other laws relating to implementing the state 1998-1999
21 fiscal plan is REPEALED.
22 § 27. This act shall take effect immediately; provided, however, that:
23 (a) sections two through nineteen, twenty-one, twenty-two and twenty-
24 six of this act shall apply to estates of decedents dying after December
25 31, 1997, (1) except that estates of decedents dying after December 31,
26 1997, but before the date which is 30 days after the date this act shall
27 have become a law, may elect to file New York estate tax returns in
28 accordance with the law in effect prior to the effective date of
581 13001-04-9
1 sections two through seven, ten through nineteen and twenty-six of this
2 act, as if such sections had not become law, and (2) the amendments to
3 sections 955, 958-a and 958-b of the tax law made by sections four,
4 five, six and seven respectively, of this act shall not affect the expi-
5 ration or repeal of such sections and shall be deemed to expire or
6 repeal therewith.
7 (b) sections two-a and twenty of this act shall take effect on the
8 same date as section 9 of part A of chapter 389 of the laws of 1997,
9 takes effect and shall apply to estates of decedents dying on and after
10 such date.
11 (c) sections twenty-four and twenty-five of this act shall apply to
12 estates of decedents dying after August 5, 1997.
13 PART ZZ
14 § 1. Subparagraph (B) of paragraph 2 of subdivision (b) of section
15 1402 of the tax law, as amended by chapter 309 of the laws of 1996, is
16 amended to read as follows:
17 (B) For purposes of this subdivision, the phrase "real estate invest-
18 ment trust transfer" shall mean any conveyance of real property or an
19 interest therein to a REIT, or to a partnership or corporation in which
20 a REIT owns a controlling interest immediately following the conveyance,
21 which conveyance (I) occurs in connection with the initial formation of
22 the REIT, provided that the conditions set forth in clauses (i) and (ii)
23 of this subparagraph are satisfied, or (II) in the case of any real
24 estate investment trust transfer occurring on or after [the effective
25 date of the chapter of the laws of] July thirteenth, nineteen hundred
26 ninety-six [that enacted this clause] and before September first, [nine-
27 teen hundred ninety-nine] two thousand two, is described in the last
28 sentence of this subparagraph.
582 13001-04-9
1 § 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section
2 1201 of the tax law, as amended by chapter 309 of the laws of 1996, is
3 amended to read as follows:
4 (2) any issuance or transfer of an interest in a REIT, or in a part-
5 nership or corporation in which a REIT owns a controlling interest imme-
6 diately following the issuance or transfer, in connection with a trans-
7 action described in subparagraph one. Notwithstanding the foregoing, a
8 transaction described in the preceding sentence shall not constitute a
9 real estate investment trust transfer unless (A) it occurs in connection
10 with the initial formation of the REIT and the conditions described in
11 subparagraphs three and four of this paragraph are satisfied, or (B) in
12 the case of any real estate investment trust transfer occurring on or
13 after [the effective date of the chapter of the laws of] July thir-
14 teenth, nineteen hundred ninety-six [that enacted this clause] and
15 before September first, [nineteen hundred ninety-nine] two thousand two,
16 the condition described in subparagraph five of this paragraph is satis-
17 fied.
18 § 3. Subparagraph (B) of paragraph 2 of subdivision e of section
19 11-2102 of the administrative code of the city of New York, as amended
20 by chapter 309 of the laws of 1996, is amended to read as follows:
21 (B) any issuance or transfer of an interest in a REIT, or in a part-
22 nership or corporation in which a REIT owns a controlling interest imme-
23 diately following the issuance or transfer in connection with a trans-
24 action described in subparagraph (A). Notwithstanding the foregoing, a
25 transaction described in the preceding sentence shall not constitute a
26 real estate investment trust transfer unless (i) it occurs in connection
27 with the initial formation of the REIT and the conditions described in
28 subparagraphs (C) and (D) of this paragraph are satisfied, or (ii) in
583 13001-04-9
1 the case of any real estate investment trust transfer occurring on or
2 after [the effective date of the chapter of the laws of] July thir-
3 teenth, nineteen hundred ninety-six [that enacted this clause] and
4 before September first, [nineteen hundred ninety-nine] two thousand two,
5 the condition described in subparagraph (E) of this paragraph is satis-
6 fied.
7 § 4. This act shall take effect immediately.
8 PART AAA
9 § 1. Subdivision (p) of section 406 of chapter 166 of the laws of
10 1991, amending the tax law and other laws relating to taxes, as amended
11 by chapter 435 of the laws of 1997, is amended to read as follows:
12 (p) The amendments to section 1809 of the vehicle and traffic law made
13 by sections three hundred thirty-seven and three hundred thirty-eight of
14 this act shall not apply to any offense committed prior to such effec-
15 tive date; provided, further, that section three hundred forty-one of
16 this act shall take effect immediately and shall expire November 1, 1993
17 at which time it shall be deemed repealed; sections three hundred
18 forty-five and three hundred forty-six of this act shall take effect
19 July 1, 1991; sections three hundred fifty-five, three hundred fifty-
20 six, three hundred fifty-seven and three hundred fifty-nine of this act
21 shall take effect immediately and shall expire June 30, 1995 and shall
22 revert to and be read as if this act had not been enacted; section three
23 hundred fifty-eight of this act shall take effect immediately and shall
24 expire June 30, 1998 and shall revert to and be read as if this act had
25 not been enacted; section three hundred sixty-four through three hundred
26 sixty-seven of this act shall apply to claims filed on or after such
27 effective date; [sections three hundred sixty-nine, three hundred seven-
28 ty-two, three hundred seventy-three, three hundred seventy-four, three
584 13001-04-9
1 hundred seventy-five and three hundred seventy-six of this act shall
2 remain in effect until November 1, 1999, at which time they shall be
3 deemed repealed; provided, however, that] the mandatory surcharge
4 provided in section three hundred seventy-four of this act shall apply
5 to parking violations occurring on or after said effective date; [and
6 provided further that the amendments made to section 235 of the vehicle
7 and traffic law by section three hundred seventy-two of this act, the
8 amendments made to section 1809 of the vehicle and traffic law by
9 sections three hundred thirty-seven and three hundred thirty-eight of
10 this act and the amendments made to section 215-a of the labor law by
11 section three hundred seventy-five of this act shall expire on November
12 1, 1999 and upon such date the provisions of such subdivisions and
13 sections shall revert to and be read as if the provisions of this act
14 had not been enacted;] the amendments to subdivisions 2 and 3 of section
15 400.05 of the penal law made by sections three hundred seventy-seven and
16 three hundred seventy-eight of this act shall expire on July 1, 1992 and
17 upon such date the provisions of such subdivisions shall revert and
18 shall be read as if the provisions of this act had not been enacted; the
19 state board of law examiners shall take such action as is necessary to
20 assure that all applicants for examination for admission to practice as
21 an attorney and counsellor at law shall pay the increased examination
22 fee provided for by the amendment made to section 465 of the judiciary
23 law by section three hundred eighty of this act for any examination
24 given on or after the effective date of this act notwithstanding that an
25 applicant for such examination may have prepaid a lesser fee for such
26 examination as required by the provisions of such section 465 as of the
27 date prior to the effective date of this act; the provisions of section
28 306-a of the civil practice law and rules as added by section three
585 13001-04-9
1 hundred eighty-one of this act shall apply to all actions pending on or
2 commenced on or after September 1, 1991, provided, however, that for the
3 purposes of this section service of such summons made prior to such date
4 shall be deemed to have been completed on September 1, 1991; the
5 provisions of section three hundred eighty-three of this act shall apply
6 to all money deposited in connection with a cash bail or a partially
7 secured bail bond on or after such effective date; and the provisions of
8 sections three hundred eighty-four and three hundred eighty-five of this
9 act shall apply only to jury service commenced during a judicial term
10 beginning on or after the effective date of this act; provided, however,
11 that nothing contained herein shall be deemed to affect the application,
12 qualification, expiration or repeal of any provision of law amended by
13 any section of this act and such provisions shall be applied or quali-
14 fied or shall expire or be deemed repealed in the same manner, to the
15 same extent and on the same date as the case may be as otherwise
16 provided by law;
17 § 2. Subdivision 8 of section 1809 of the vehicle and traffic law is
18 REPEALED.
19 § 3. Subdivision 9 of section 1809 of the vehicle and traffic law, as
20 added by chapter 452 of the laws of 1997, is amended to read as follows:
21 [9] 8. [Nothwithstanding] Notwithstanding the provisions of subdivi-
22 sion one of this section, in the event a proceeding is in a town or
23 village court, the court shall add an additional five dollars to the
24 surcharges imposed by such subdivision one of this section.
25 § 4. This act shall take effect April 1, 1999.
26 PART BBB
27 § 1. Paragraph 1 of subdivision a of section 1612 of the tax law, as
28 amended by chapter 2 of the laws of 1995, is amended to read as follows:
586 13001-04-9
1 (1) sixty percent of the total amount for which tickets have been sold
2 for [a lawful lottery game introduced on or after the effective date of
3 this paragraph, subject to the following provisions:
4 (A) drawings in such game shall be held during no more than thirteen
5 hours each day, no more than eight hours of which shall be consecutive;
6 (B) such game shall be available only on premises occupied by licensed
7 lottery sales agents, subject to the following provisions:
8 (i) if the licensee holds a license issued pursuant to the alcoholic
9 beverage control law to sell alcoholic beverages for consumption on the
10 premises, then not less than twenty-five percent of the gross sales must
11 result from sales of food;
12 (ii) if the licensee does not hold a license issued pursuant to the
13 alcoholic beverage control law to sell alcoholic beverages for consump-
14 tion on the premises, then the premises must have a minimum square
15 footage greater than two thousand five hundred square feet;
16 (iii) notwithstanding the foregoing provisions, television equipment
17 that automatically displays the results of such drawings may be
18 installed and used without regard to the percentage of food sales or the
19 square footage if such premises are used as:
20 (I) a commercial bowling establishment, or
21 (II) a facility authorized under the racing, pari-mutuel wagering and
22 breeding law to accept pari-mutuel wagers;
23 (C)] the "Quick Draw" game. The rules for the operation of such game
24 shall be as prescribed by regulations promulgated and adopted by the
25 division, provided however, that such rules shall provide that no person
26 under the age of twenty-one may participate in such games on the prem-
27 ises of a licensee who holds a license issued pursuant to the alcoholic
28 beverage control law to sell alcoholic beverages for consumption on the
587 13001-04-9
1 premises[; and, provided, further, that such regulations may be revised
2 on an emergency basis not later than ninety days after the enactment of
3 this paragraph in order to conform such regulations to the requirements
4 of this paragraph]; or
5 § 2. Paragraph 2 of subdivision a of section 1612 of the tax law, as
6 amended by chapter 2 of the laws of 1995, is amended to read as follows:
7 (2) [fifty-five] sixty-five percent of the total amount for which
8 tickets have been sold for the "Instant Cash" game in which the partic-
9 ipant purchases a preprinted ticket on which dollar amounts or symbols
10 are concealed on the face or the back of such ticket; or
11 § 3. Subdivision b of section 1612 of the tax law, as amended by chap-
12 ter 2 of the laws of 1995, is amended to read as follows:
13 b. Notwithstanding section one hundred twenty-one of the state finance
14 law, on or before the twentieth day of each month, the division shall
15 pay into the state treasury, to the credit of the state lottery fund
16 created by section ninety-two-c of the state finance law, not less than
17 forty-five percent of the total amount for which tickets have been sold
18 for games defined in paragraph four of subdivision a of this section
19 during the preceding month, not less than thirty-five percent of the
20 total amount for which tickets have been sold for games defined in para-
21 graph three of subdivision a of this section during the preceding month,
22 not less than [thirty] twenty percent of the total amount for which
23 tickets have been sold for games defined in paragraph two of subdivision
24 a of this section during the preceding month, and not less than twenty-
25 five percent of the total amount for which tickets have been sold for
26 games defined in paragraph one of subdivision a of this section during
27 the preceding month. Within twenty days after any award of lottery
28 prizes, the division shall pay into the state treasury, to the credit of
588 13001-04-9
1 the state lottery fund, the balance of all moneys received from the sale
2 of all tickets for the lottery in which such prizes were awarded remain-
3 ing after provision for the payment of prizes as herein provided. Any
4 revenues derived from the sale of advertising on lottery tickets shall
5 be deposited in the state lottery fund.
6 § 4. Subdivision 9 of section 152 of chapter 2 of the laws of 1995
7 amending the tax law and other laws relating to a new lottery game and
8 the expiration thereof, is amended to read as follows:
9 9. Sections ninety-four-a through ninety-four-g of this act shall take
10 effect immediately; provided, however, that section ninety-four-d of
11 this act adding section 1620 of the tax law to require a request for
12 proposals to be issued by the division of the lottery for any equipment
13 or services necessary for the implementation of an on-line lottery game
14 shall not apply to any contract or any holder of a contract existing
15 prior to the effective date of this act, or any amendment of such
16 contract during the initial term thereof or during the extension of such
17 term permitted by an option existing as of the effective date of this
18 act; and provided, further, that the amendments made [to paragraph 1 of
19 subdivision a of section 1612 of the tax law by section ninety-four-a of
20 this act and] to section 1615 of the tax law by section ninety-four-g of
21 this act and [paragraphs a through e of] section 1620 by section nine-
22 ty-four-d of this act shall expire and be deemed repealed March 31,
23 1999.
24 § 5. Section 152 of chapter 166 of the laws of 1991 amending the tax
25 law and other laws relating to taxes is REPEALED.
26 § 6. This act shall take effect immediately.
27 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
28 sion, section or part of this act shall be adjudged by any court of
589 13001-04-9
1 competent jurisdiction to be invalid, such judgment shall not affect,
2 impair, or invalidate the remainder thereof, but shall be confined in
3 its operation to the clause, sentence, paragraph, subdivision, section
4 or part thereof directly involved in the controversy in which such judg-
5 ment shall have been rendered. It is hereby declared to be the intent of
6 the legislature that this act would have been enacted even if such
7 invalid provisions had not been included herein.
8 § 3. This act shall take effect immediately provided, however, that
9 the applicable effective date of Parts A through BBB of this act shall
10 be as specifically set forth in the last section of such Parts.
REPEAL NOTES
PART C
REPEAL NOTE.--Section 97-aa of the state finance law, proposed to be
repealed by section one of Part C of this act, establishes the licensing
examination services account.
PART E
REPEAL NOTE.--Section 378 and subdivision 4 of section 379 of the
executive law and section 54-g of the state finance law proposed to be
repealed by sections three and five, respectively, of Part E of this act
relate to the building, fire safety, and energy code.
PART P
REPEAL NOTE:--Subdivision 2 of section 902 of the racing, pari-mutuel
wagering and breeding law, proposed to be repealed by section two of
Part P of this act, requires that all costs associated with equine drug
testing be supported through the general fund.
PART HH
REPEAL NOTE.--1. Subparagraph 4 of paragraph (bb) of subdivision 4 of
section 1950 of the education law as proposed to be repealed by section
590 13001-04-9
nine of Part HH of this act relates to aid for boards of cooperative
educational services.
2. Subdivision 5-a of section 1950 of the education law as proposed to
be repealed by section eleven of Part HH of this act relates to finan-
cial assistance for school districts first joining a board of cooper-
ative educational services.
3. Paragraph f of subdivision 13 and paragraph f of subdivision 14 of
section 1950 of the education law as proposed to be repealed by section
fifteen of Part HH of this act relate to aid for boards of cooperative
educational services.
4. Paragraph h of subdivision 14 of section 3602 of the education law
as proposed to be repealed by section thirty of Part HH of this act
relates to efficiency study grants.
PART JJ
REPEAL NOTE.--Section 237 of the education law proposed to be repealed
by section one of Part JJ of this act requires that the regents quadren-
nially develop a statewide master plan for the development of higher
education in the state and that private and public institutions of high-
er education must submit master plans to the regents for such purpose.
Section 354 of the education law proposed to be repealed by section
three of Part JJ of this act requires the state university trustees to
submit a master plan once every four years to the regents and the gover-
nor for approval.
Section 500 of the education law proposed to be repealed by section
seven of Part JJ of this act requires the regents to provide standards
and review plans for college cooperative services boards.
Section 603 of the education law proposed to be repealed by section
twelve of Part JJ of this act requires the Regents to report to the
591 13001-04-9
Governor and the legislature recommendations relating to higher educa-
tion financial assistance and loan programs.
Section 607 of the education law proposed to be repealed by section
fifteen of Part JJ of this act requires the commissioner to promulgate
rules and regulations to administer the intent of the Federal Higher
Education Act of 1965.
Paragraph d of subdivision 3 of section 663 of the education law
proposed to be repealed by section twenty-one-a of Part JJ of this act
references section 603 of the education law which is repealed by section
twelve of such part.
Subdivisions 3 and 4 of section 6206 of the education law proposed to
be repealed by section forty-nine of Part JJ of this act require the
board of trustees of the city university of New York to submit a master
plan once every four years to the regents and the governor for approval.
Paragraph 3 of subdivision a of section 6226 of the education law
proposed to be repealed by section fifty of Part JJ of this act states
that the inclusion of a facility of a community college in the master
plan of the state university of New York shall be deemed to be also
included in the master plan of the city university of New York.
Section 137 of Chapter 82 of the Laws of 1995 proposed to be repealed
by section fifty-eight of Part JJ of this act directed the Regents and
the Commissioner of Education to streamline the master plan amendment
process and changed the frequency of master plan publication to an eight
year cycle.
PART QQ
REPEAL NOTE.--Section 186 of the tax law, proposed to be repealed by
section three of Part QQ of this act, imposes a franchise tax on corpo-
rations formed for or principally engaged in the business of supplying
592 13001-04-9
water, steam or gas when delivered through pipes or mains, or electric-
ity, or principally engaged in two or more such businesses. Section
186-b of the tax law, proposed to be repealed by section three of Part
QQ of this act, imposes a surcharge on corporations subject to the tax
imposed by section 186 of the tax law which are doing business within
the metropolitan commuter transportation district. Section 189 of the
tax law, proposed to be repealed by section seven of Part QQ of this
act, imposes the privilege tax on importation of gas services for
consumption. Section 189-a of the tax law, proposed to be repealed by
section seven of Part QQ of this act, imposes a surcharge on gas import-
ers, in the case of importation for use or consumption in the metropol-
itan commuter transportation district. Subdivision 3 of section 192 of
the tax law, proposed to be repealed by section eight of Part QQ of this
act, relates to tax returns of the tax imposed under section 186 of the
tax law, which is proposed to be repealed by section three of Part QQ of
this act.
PART UU
REPEAL NOTE: Section 1502-a of the tax law, proposed to be repealed by
section four of Part UU of this act requires the state insurance fund to
calculate its franchise tax liability at the rate and in the manner set
forth in section 1505 of the tax law, in lieu of the tax computations
required by sections 1502 and 1510 of the tax law.
FISCAL NOTE
PART G
FISCAL NOTE PURSUANT TO LEGISLATIVE LAW, SECTION 50:
This bill would (1) generate a twenty-five year level dollar amorti-
zation schedule of liabilities for employers joining the New York State
and Local Employees' Retirement System and the New York State and Local
593 13001-04-9
Police and Fire Retirement System on or after April 1, 1999, and (2)
change the calculation of the annual administrative costs billed to
employers in certain years.
If this bill is enacted, due to the change in the calculation of the
administrative bill, we estimate that employers in the New York State
and Local Employees' Retirement System will see a reduction in their
annual billing of approximately 0.3 percent of their payroll (totaling
$50 million) for the next several years. New York State and Local
Police and Fire Retirement system employers could also see a reduction
of approximately 0.3 percent of payroll (totaling $6 million). The
other changes in the bill will have negligible effects.
This estimate was prepared by the New York State Division of the Budg-
et based on an estimate provided by the Actuary for the New York State
and Local Employees' Retirement System and the New York State and Local
Police and Fire Retirement System.
594 13001-04-9
1999-2000 ARTICLE VII BILL
CONTENTS
Part Subject Pages
General Government
A Property/Casualty Insurance Security Fund 13
B Expedited Department of State services to businesses 14
C Department of State revenue accounts 15
D Community Services Block Grant funds 21
E Model Fire Prevention/Building Code and Energy 23
Conservation Code
F Use of Certificates of Participation for Y2K compliance 37
G Administrative expenses of the New York State and Local 38
Retirement Systems
H Miscellaneous fiscal provisions 40
Transportation, Economic Development
and
Environmental Conservation
I Transfer of ERDA funds to NYPA 78
J Environmental Protection Fund 79
K Forest property tax exemptions 84
L Pesticide registration fees 86
M Clean air 87
N Oil Spill Fund 89
O Public service assessments spending 92
P Funding of racing regulation activities 94
Q Funding of Cornell Theory Center 110
R Transportation bonding and CHIPs capital 110
595 13001-04-9
Public Protection, Health and Mental Hygiene
S Programs for the elderly: CSE and EISEP 122
T Shock incarceration program 124
U Reimbursement for housing low-level felons 125
V DPCA/Parole Interstate Compact 125
W Conformity with Federal Sex Offender law 126
X District Attorney salaries 138
Y Medicaid 140
Z Youth Opportunity Program 149
AA OASAS treatment systems 149
BB Reimbursement to county clerks 224
CC Suspension and revocation of driver’s licenses 225
DD DMV use of Postal Service data for mailings 227
EE Commercial driver’s license suspensions 231
FF Extension of various criminal justice programs 233
GG Public Safety Communication Account 239
Education, Labor and Family Assistance
HH Special education and other reforms 240
II Modifications to STAR program 337
JJ SED higher education functions 366
KK Family and Children’s Services Block Grant 414
LL Division of Human rights certification 417
MM Transfer of Research Institute on Addictions 428
Miscellaneous/Revenue
NN Personal income tax brackets and dependent exemptions 433
OO Personal income tax filing threshold 439
PP Innocent spouse protection 440
QQ Utility deregulation 451
596 13001-04-9
RR Alternative Minimum Tax; Qualified Emerging Technology 517
credit
SS Urban employment credit 520
TT New York capital assets 538
UU Bank and Insurance tax rate cut 544
VV Medical provider assessments 550
WW Farmers' school property tax credit 557
XX Miscellaneous tax relief 559
YY Estate and gift tax conformity 566
ZZ Real estate investment trusts 581
AAA Mandatory Vehicle and Traffic surcharge 583
BBB Lottery game authorizations 585