STATE OF NEW YORK ________________________________________________________________________

S. 3006--C A. 3006--C SENATE - ASSEMBLY January 22, 2025 ___________

IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the education law, in relation to contracts for excel- lence; to amend the education law, in relation to foundation aid; to amend the education law, in relation to the establishment of a state- wide dual enrollment program policy; to amend the education law, in relation to allowable transportation expenses; to amend the education law, in relation to universal pre-kindergarten and the Statewide universal full-day pre-kindergarten program; to amend the education law, in relation to state aid adjustments; to amend the education law, in relation to the apportionment of moneys for school aid; to amend chapter 378 of the laws of 2010 amending the education law relating to paperwork reduction, in relation to extending the provisions thereof; to amend the education law and the general business law, in relation to requirements for zero-emissions school buses; to amend chapter 756 of the laws of 1992 relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursement for the 2025-2026 school year with- holding a portion of employment preparation education aid and in relation to the effectiveness thereof; to amend the education law, in relation to maximum class sizes for special classes for certain students with disabilities; to amend chapter 82 of the laws of 1995

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12572-05-5 S. 3006--C 2 A. 3006--C

amending the education law and other laws relating to state aid to school districts and the appropriation of funds for the support of government, in relation to the effectiveness thereof; to amend part C of chapter 56 of the laws of 2020 directing the commissioner of educa- tion to appoint a monitor for the Rochester city school district, establishing the powers and duties of such monitor and certain other officers and relating to the apportionment of aid to such school district, in relation to the effectiveness thereof; to amend chapter 19 of the laws of 2020 authorizing the commissioner of education to appoint a monitor to oversee the Hempstead union free school district and establishing the powers and duties of such monitor, in relation to the effectiveness thereof; to amend chapter 18 of the laws of 2020 authorizing the commissioner of education to appoint a monitor to oversee the Wyandanch union free school district and establishing the powers and duties of the monitor, in relation to the effectiveness thereof; to amend chapter 89 of the laws of 2016 relating to supple- mentary funding for dedicated programs for public school students in the East Ramapo central school district, in relation to the effective- ness thereof; to amend the education law, in relation to creat- ing safe harbors and a phase-in period for compliance with certain sections of such law relating to instruction at nonpublic schools; providing for special apportionment for salary expenses; providing for special apportionment for public pension accruals; to amend chapter 121 of the laws of 1996 authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to an apportionment for salary expenses; providing for set-a- sides from the state funds which certain districts are receiving from the total foundation aid; providing for support of public libraries; and to repeal certain provisions of the education law relating to calculation of school aid (Part A); to amend the education law, in relation to establishing a universal free school meals program; and to repeal section 925 of the education law relating to the community eligibility provision state subsidy (Part B); to amend the education law, in relation to student use of internet-enabled devices during the school day (Part C); to amend the education law in relation to schol- arships awarded to part-time students by the New York state higher education services corporation; to amend the education law, in relation to making conforming changes; to repeal section 666 of the education law, relating to tuition awards for part-time undergraduate students; and to repeal section 667-c-1 of the education law relating to the New York state part-time scholarship award program (Part D); to amend the education law, in relation to excelsior scholarship awarded to students by the New York state higher education services corpo- ration (Part E); to amend the education law, in relation to creating a New York opportunity promise scholarship (Part F); intentionally omit- ted (Part G); intentionally omitted (Part H); intentionally omitted (Part I); intentionally omitted (Part J); intentionally omitted (Part K); to amend the private housing finance law, in relation to reduction of taxes pursuant to shelter rent (Part L); intentionally omitted (Part M); to utilize reserves in the mortgage insurance fund for vari- ous housing purposes (Part N); to amend part N of chapter 56 of the laws of 2020, amending the social services law relating to restructur- ing financing for residential school placements, in relation to the effectiveness thereof (Part O); to amend the social services law, in relation to certification of child care support centers to place substitute caregivers in licensed and registered child care programs S. 3006--C 3 A. 3006--C

(Part P); to amend the social services law, in relation to improving infancy health by increasing public assistance allowances to certain persons (Part Q); to amend the social services law, in relation to increasing the standards of monthly need for aged, blind and disabled persons living in the community (Part R); to amend part W of chapter 54 of the laws of 2016 amending the social services law relating to the powers and duties of the commissioner of social services relating to the appointment of a temporary operator, in relation to the effec- tiveness thereof (Part S); to amend the labor law, in relation to revising the healthy terminals act (Part T); to amend the labor law, in relation to limiting liquidated damages in certain frequency of pay violations (Part U); to amend the labor law, in relation to civil penalties for violations of certain provisions for the payment of wages (Part V); to amend the labor law, in relation to the civil penalties for violations of child labor laws (Part W); to amend the labor law and the education law, in relation to digitizing the process by which minors apply for employment certificates or working papers; and to repeal certain provisions of the labor law and the education law relating thereto (Part X); to amend the veterans' services law, in relation to annuity to be paid to parents, spouses, and minor children of service members who died while on active duty; and to authorize the commissioner of veterans' services to conduct an outreach program for the purpose of informing the public and persons who may be eligible to receive an annuity (Part Y); intentionally omitted (Part Z); in relation to requiring the submission of an annual report on the New York state museum (Part AA); to amend the labor law, in relation to decreasing the length of the suspension period applicable to certain striking workers who seek to obtain unemployment insurance benefits (Part BB); to amend the social services law, in relation to the main- tenance of effort requirements of social services districts in provid- ing child care assistance under the child care block grant (Part CC); to amend the penal law, in relation to evading arrest by concealment of identity (Part DD); to amend the correction law, in relation to merit time allowance and limited credit time allowance (Part EE); in relation to authorizing the commissioner of education to appoint a monitor to oversee the Mount Vernon city school district and estab- lishing the powers and duties of such monitor; and providing for the repeal of such provisions upon expiration thereof (Part FF); to amend the general business law, the real property law and the administrative code of the city of New York, in relation to providing expanded homeownership opportunities from the conversion of certain residential rental buildings to condominium status by property owners that commit to the stewardship of permanently affordable units and the preserva- tion of expiring affordable housing inventory in the city of New York; and providing for the repeal of certain provisions upon expiration thereof (Part GG); to amend the public housing law, in relation to establishing the housing access voucher pilot program (Part HH); to amend section 2 of chapter 868 of the laws of 1975 constituting the New York state financial emergency act for the city of New York, in relation to the effectiveness thereof (Part II); to amend the public authorities law, in relation to establishing the city of Buffalo park- ing authority (Part JJ); to amend the labor law, in relation to increasing the maximum benefit rate for unemployment insurance (Part KK); to amend the criminal procedure law, in relation to discovery reform (Part LL); and in relation to providing for the administration of certain funds and accounts related to the 2025-2026 budget, author- S. 3006--C 4 A. 3006--C

izing certain payments and transfers; to amend the state finance law, in relation to the administration of certain funds and accounts, in relation to the effectiveness thereof, and in relation to interest owed on outstanding balances of debt; to amend part XX of chapter 56 of the laws of 2024, amending the state finance law and other laws relating to providing for the administration of certain funds and accounts related to the 2023-2024 budget, in relation to the effec- tiveness thereof; to amend the state finance law, in relation to the school tax relief fund; to amend the state finance law, in relation to the dedicated infrastructure investment fund; authorizing the comp- troller to transfer up to $25,000,000 from various state bond funds to the general debt service fund for the purposes of redeeming or defeas- ing outstanding state bonds; to amend the private housing finance law, in relation to housing program bonds and notes; to amend the public authorities law, in relation to the issuance of bonds and notes by the dedicated highway and bridge trust fund; to amend the public authorities law, in relation to the issuance of bonds and notes for city university facilities; to amend the public authorities law, in relation to the issuance of bonds for library construction projects; to amend the public authorities law, in relation to the issuance of bonds for state university educational facilities; to amend the public authorities law, in relation to the issuance of bonds and notes for locally sponsored community colleges; to amend the New York state medical care facilities finance agency act, in relation to the issu- ance of mental health services facilities improvement bonds and notes; to amend part K of chapter 81 of the laws of 2002, relating to provid- ing for the administration of certain funds and accounts related to the 2002-2003 budget, in relation to the issuance of bonds and notes to finance capital costs related to homeland security; to amend the urban development corporation act, in relation to the issuance of bonds and notes for purposes of funding office of information technol- ogy services project costs; to amend chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the estab- lishment of the dedicated highway and bridge trust fund, in relation to the issuance of funds to the thruway authority; to amend the urban development corporation act, in relation to the issuance of bonds and notes to fund costs for statewide equipment; to amend the public authorities law, in relation to the issuance of bonds for purposes of financing environmental infrastructure projects; to amend part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds and notes for the youth facilities improvement fund; to amend the public authori- ties law, in relation to the issuance of bonds and notes for the purpose of financing peace bridge projects and capital costs of state and local highways; to amend the urban development corporation act, in relation to the issuance of bonds for economic development initi- atives; to amend part Y of chapter 61 of the laws of 2005, relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the issuance of bonds and notes for the purpose of financing capital projects for the divi- sion of military and naval affairs and initiative of the state police; to amend the public authorities law, in relation to the issuance of bonds and notes for the purpose of financing the construction of the New York state agriculture and markets food laboratory; to amend the public authorities law, in relation to authorization for the issuance S. 3006--C 5 A. 3006--C

of bonds for the capital restructuring financing program, the health care facility transformation programs, and the essential health care provider program; to amend the public authorities law, in relation to the issuance of bonds or notes for the purpose of assisting the metropolitan transportation authority in the financing of transporta- tion facilities; to amend part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issu- ance of certain bonds and notes; to amend the public authorities law, in relation to funds for the department of health and financing through the dormitory authority; to amend the public health law, in relation to the department of health income fund; to amend chapter 174 of the laws of 1968 constituting the urban development corporation act, in relation to personal income tax revenue anticipation notes; to amend the state finance law, in relation to certain revenue bonds; to repeal certain provisions of the state finance law relating to the accident prevention course internet, and other technology pilot program fund, relating to the required contents of the budget, relat- ing to the deposit of receipts derived from certain indirect cost assessments and relating to the New York state storm recovery capital fund; to repeal certain provisions of the urban development corpo- ration act relating to funding project costs for restoring state prop- erties damaged as a result of Storm Sandy; and providing for the repeal of certain provisions upon expiration thereof (Part MM) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 necessary to implement the state education, labor, housing and family 3 assistance budget for the 2025-2026 state fiscal year. Each component is 4 wholly contained within a Part identified as Parts A through MM. The 5 effective date for each particular provision contained within such Part 6 is set forth in the last section of such Part. Any provision in any 7 section contained within a Part, including the effective date of the 8 Part, which makes a reference to a section "of this act", when used in 9 connection with that particular component, shall be deemed to mean and 10 refer to the corresponding section of the Part in which it is found. 11 Section three of this act sets forth the general effective date of this 12 act.

13 PART A

14 Section 1. Paragraph e of subdivision 1 of section 211-d of the educa- 15 tion law, as amended by section 1 of part A of chapter 56 of the laws of 16 2024, is amended to read as follows: 17 e. Notwithstanding paragraphs a and b of this subdivision, a school 18 district that submitted a contract for excellence for the two thousand 19 eight--two thousand nine school year shall submit a contract for excel- 20 lence for the two thousand nine--two thousand ten school year in 21 conformity with the requirements of subparagraph (vi) of paragraph a of 22 subdivision two of this section unless all schools in the district are 23 identified as in good standing and provided further that, a school 24 district that submitted a contract for excellence for the two thousand 25 nine--two thousand ten school year, unless all schools in the district S. 3006--C 6 A. 3006--C

1 are identified as in good standing, shall submit a contract for excel- 2 lence for the two thousand eleven--two thousand twelve school year which 3 shall, notwithstanding the requirements of subparagraph (vi) of para- 4 graph a of subdivision two of this section, provide for the expenditure 5 of an amount which shall be not less than the product of the amount 6 approved by the commissioner in the contract for excellence for the two 7 thousand nine--two thousand ten school year, multiplied by the 8 district's gap elimination adjustment percentage and provided further 9 that, a school district that submitted a contract for excellence for the 10 two thousand eleven--two thousand twelve school year, unless all schools 11 in the district are identified as in good standing, shall submit a 12 contract for excellence for the two thousand twelve--two thousand thir- 13 teen school year which shall, notwithstanding the requirements of 14 subparagraph (vi) of paragraph a of subdivision two of this section, 15 provide for the expenditure of an amount which shall be not less than 16 the amount approved by the commissioner in the contract for excellence 17 for the two thousand eleven--two thousand twelve school year and 18 provided further that, a school district that submitted a contract for 19 excellence for the two thousand twelve--two thousand thirteen school 20 year, unless all schools in the district are identified as in good 21 standing, shall submit a contract for excellence for the two thousand 22 thirteen--two thousand fourteen school year which shall, notwithstanding 23 the requirements of subparagraph (vi) of paragraph a of subdivision two 24 of this section, provide for the expenditure of an amount which shall be 25 not less than the amount approved by the commissioner in the contract 26 for excellence for the two thousand twelve--two thousand thirteen school 27 year and provided further that, a school district that submitted a 28 contract for excellence for the two thousand thirteen--two thousand 29 fourteen school year, unless all schools in the district are identified 30 as in good standing, shall submit a contract for excellence for the two 31 thousand fourteen--two thousand fifteen school year which shall, 32 notwithstanding the requirements of subparagraph (vi) of paragraph a of 33 subdivision two of this section, provide for the expenditure of an 34 amount which shall be not less than the amount approved by the commis- 35 sioner in the contract for excellence for the two thousand thirteen--two 36 thousand fourteen school year; and provided further that, a school 37 district that submitted a contract for excellence for the two thousand 38 fourteen--two thousand fifteen school year, unless all schools in the 39 district are identified as in good standing, shall submit a contract for 40 excellence for the two thousand fifteen--two thousand sixteen school 41 year which shall, notwithstanding the requirements of subparagraph (vi) 42 of paragraph a of subdivision two of this section, provide for the 43 expenditure of an amount which shall be not less than the amount 44 approved by the commissioner in the contract for excellence for the two 45 thousand fourteen--two thousand fifteen school year; and provided 46 further that a school district that submitted a contract for excellence 47 for the two thousand fifteen--two thousand sixteen school year, unless 48 all schools in the district are identified as in good standing, shall 49 submit a contract for excellence for the two thousand sixteen--two thou- 50 sand seventeen school year which shall, notwithstanding the requirements 51 of subparagraph (vi) of paragraph a of subdivision two of this section, 52 provide for the expenditure of an amount which shall be not less than 53 the amount approved by the commissioner in the contract for excellence 54 for the two thousand fifteen--two thousand sixteen school year; and 55 provided further that, a school district that submitted a contract for 56 excellence for the two thousand sixteen--two thousand seventeen school S. 3006--C 7 A. 3006--C

1 year, unless all schools in the district are identified as in good 2 standing, shall submit a contract for excellence for the two thousand 3 seventeen--two thousand eighteen school year which shall, notwithstand- 4 ing the requirements of subparagraph (vi) of paragraph a of subdivision 5 two of this section, provide for the expenditure of an amount which 6 shall be not less than the amount approved by the commissioner in the 7 contract for excellence for the two thousand sixteen--two thousand 8 seventeen school year; and provided further that a school district that 9 submitted a contract for excellence for the two thousand seventeen--two 10 thousand eighteen school year, unless all schools in the district are 11 identified as in good standing, shall submit a contract for excellence 12 for the two thousand eighteen--two thousand nineteen school year which 13 shall, notwithstanding the requirements of subparagraph (vi) of para- 14 graph a of subdivision two of this section, provide for the expenditure 15 of an amount which shall be not less than the amount approved by the 16 commissioner in the contract for excellence for the two thousand seven- 17 teen--two thousand eighteen school year; and provided further that, a 18 school district that submitted a contract for excellence for the two 19 thousand eighteen--two thousand nineteen school year, unless all schools 20 in the district are identified as in good standing, shall submit a 21 contract for excellence for the two thousand nineteen--two thousand 22 twenty school year which shall, notwithstanding the requirements of 23 subparagraph (vi) of paragraph a of subdivision two of this section, 24 provide for the expenditure of an amount which shall be not less than 25 the amount approved by the commissioner in the contract for excellence 26 for the two thousand eighteen--two thousand nineteen school year; and 27 provided further that, a school district that submitted a contract for 28 excellence for the two thousand nineteen--two thousand twenty school 29 year, unless all schools in the district are identified as in good 30 standing, shall submit a contract for excellence for the two thousand 31 twenty--two thousand twenty-one school year which shall, notwithstanding 32 the requirements of subparagraph (vi) of paragraph a of subdivision two 33 of this section, provide for the expenditure of an amount which shall be 34 not less than the amount approved by the commissioner in the contract 35 for excellence for the two thousand nineteen--two thousand twenty school 36 year; and provided further that, a school district that submitted a 37 contract for excellence for the two thousand twenty--two thousand twen- 38 ty-one school year, unless all schools in the district are identified as 39 in good standing, shall submit a contract for excellence for the two 40 thousand twenty-one--two thousand twenty-two school year which shall, 41 notwithstanding the requirements of subparagraph (vi) of paragraph a of 42 subdivision two of this section, provide for the expenditure of an 43 amount which shall be not less than the amount approved by the commis- 44 sioner in the contract for excellence for the two thousand twenty--two 45 thousand twenty-one school year; and provided further that, a school 46 district that submitted a contract for excellence for the two thousand 47 twenty-one--two thousand twenty-two school year, unless all schools in 48 the district are identified as in good standing, shall submit a contract 49 for excellence for the two thousand twenty-two--two thousand twenty- 50 three school year which shall, notwithstanding the requirements of 51 subparagraph (vi) of paragraph a of subdivision two of this section, 52 provide for the expenditure of an amount which shall be not less than 53 the amount approved by the commissioner in the contract for excellence 54 for the two thousand twenty-one--two thousand twenty-two school year; 55 and provided further that, a school district that submitted a contract 56 for excellence for the two thousand twenty-two--two thousand twenty- S. 3006--C 8 A. 3006--C

1 three school year, unless all schools in the district are identified as 2 in good standing, shall submit a contract for excellence for the two 3 thousand twenty-three--two thousand twenty-four school year which shall, 4 notwithstanding the requirements of subparagraph (vi) of paragraph a of 5 subdivision two of this section, provide for the expenditure of an 6 amount which shall be not less than the amount approved by the commis- 7 sioner in the contract for excellence for the two thousand twenty-two-- 8 two thousand twenty-three school year; and provided further that, a 9 school district that submitted a contract for excellence for the two 10 thousand twenty-three--two thousand twenty-four school year, unless all 11 schools in the district are identified as in good standing, shall submit 12 a contract for excellence for the two thousand twenty-four--two thousand 13 twenty-five school year which shall, notwithstanding the requirements of 14 subparagraph (vi) of paragraph a of subdivision two of this section, 15 provide for the expenditure of an amount which shall be not less than 16 the amount approved by the commissioner in the contract for excellence 17 for the two thousand twenty-three--two thousand twenty-four school year; 18 and provided further that a school district that submitted a contract 19 for excellence for the two thousand twenty-four--two thousand twenty- 20 five school year, unless all schools in the district are identified as 21 in good standing, shall submit a contract for excellence for the two 22 thousand twenty-five--two thousand twenty-six school year which shall, 23 notwithstanding the requirements of subparagraph (vi) of paragraph a of 24 subdivision two of this section, provide for the expenditure of an 25 amount which shall be not less than the amount approved by the commis- 26 sioner in the contract for excellence for the two thousand twenty-four- 27 -two thousand twenty-five school year; provided, however, that, in a 28 city school district in a city having a population of one million or 29 more, notwithstanding the requirements of subparagraph (vi) of paragraph 30 a of subdivision two of this section, the contract for excellence shall 31 provide for the expenditure as set forth in subparagraph (v) of para- 32 graph a of subdivision two of this section. For purposes of this para- 33 graph, the "gap elimination adjustment percentage" shall be calculated 34 as the sum of one minus the quotient of the sum of the school district's 35 net gap elimination adjustment for two thousand ten--two thousand eleven 36 computed pursuant to chapter fifty-three of the laws of two thousand 37 ten, making appropriations for the support of government, plus the 38 school district's gap elimination adjustment for two thousand eleven-- 39 two thousand twelve as computed pursuant to chapter fifty-three of the 40 laws of two thousand eleven, making appropriations for the support of 41 the local assistance budget, including support for general support for 42 public schools, divided by the total aid for adjustment computed pursu- 43 ant to chapter fifty-three of the laws of two thousand eleven, making 44 appropriations for the local assistance budget, including support for 45 general support for public schools. Provided, further, that such amount 46 shall be expended to support and maintain allowable programs and activ- 47 ities approved in the two thousand nine--two thousand ten school year or 48 to support new or expanded allowable programs and activities in the 49 current year. 50 § 2. Paragraph p of subdivision 1 of section 3602 of the education law 51 is REPEALED. 52 § 3. The opening paragraph and subparagraphs (i) and (ii) of paragraph 53 q of subdivision 1 of section 3602 of the education law, as amended by 54 section 16 of part YYY of chapter 59 of the laws of 2017, are amended to 55 read as follows: S. 3006--C 9 A. 3006--C

1 "Poverty count" shall mean the sum of the product of the [ lunch ] 2 economically disadvantaged student count multiplied by sixty-five 3 percent, plus the product of the [ census ] SAIPE count multiplied by 4 sixty-five percent, where: 5 (i) [ "Lunch ] "Economically disadvantaged student count" shall mean the 6 product of the public school enrollment of the school district on the 7 date enrollment was counted in accordance with this subdivision for the 8 base year multiplied by the three-year average [ free and reduced price 9 lunch percent ] economically disadvantaged rate ; and 10 (ii) [ "Census ] "SAIPE count" shall mean the product of the public 11 school enrollment of the school district on the date enrollment was 12 counted in accordance with this subdivision for the base year multiplied 13 by the [ census 2000 poverty ] three-year average small area income and 14 poverty estimate rate. 15 § 4. Subparagraphs (iii), (iv) and (v) of paragraph q of subdivision 1 16 of section 3602 of the education law are REPEALED. 17 § 4-a. Paragraph s of subdivision 1 of section 3602 of the education 18 law, as amended by section 8 of part A of chapter 56 of the laws of 19 2022, is amended to read as follows: 20 s. "Extraordinary needs count" shall mean the sum of the product of 21 the English language learner count multiplied by [ fifty percent ] the ELL 22 weight , plus, the poverty count and the sparsity count , provided that 23 the 'ELL weight' shall be five tenths (0.50) for the two thousand twen- 24 ty-four--two thousand twenty-five school year and prior, and shall be 25 equal to fifty-three hundredths (0.53) in the two thousand twenty-five- 26 -two thousand twenty-six school year and thereafter . 27 § 5. Paragraph kk of subdivision 1 of section 3602 of the education 28 law is REPEALED. 29 § 6. Paragraph ll of subdivision 1 of section 3602 of the education 30 law, as added by section 11-a of part A of chapter 56 of the laws of 31 2021, is renumbered subparagraph (iv) of paragraph q of such subdivision 32 1 and is amended to read as follows: 33 (iv) (1) "Economically disadvantaged count" shall be equal to the 34 unduplicated count of all children registered to receive educational 35 services in grades kindergarten through twelve, including children in 36 ungraded programs who participate in, or whose family participates in, 37 economic assistance programs, such as the free or reduced-price lunch 38 programs, Social Security Insurance, Supplemental Nutrition Assistance 39 Program, Foster Care, Refugee Assistance (cash or medical assistance), 40 Earned Income Tax Credit (EITC), Home Energy Assistance Program (HEAP), 41 Safety Net Assistance (SNA), Bureau of Indian Affairs (BIA), or Tempo- 42 rary Assistance for Needy Families (TANF). 43 (2) "Economically disadvantaged rate" shall mean the quotient arrived 44 at when dividing the economically disadvantaged count by public enroll- 45 ment as computed pursuant to subparagraph one of paragraph n of this 46 subdivision. 47 (3) "Three-year average economically disadvantaged rate" shall equal 48 the quotient of: (i) the sum of the economically disadvantaged count for 49 the school year prior to the base year, plus such number for the school 50 year two years prior to the base year, plus such number for the school 51 year three years prior to the base year; divided by (ii) the sum of 52 enrollment as computed pursuant to subparagraph one of paragraph n of 53 this subdivision [ one of this section ] for the school year prior to the 54 base year, plus such number for the school year two years prior to the 55 base year, plus such number for the school year three years prior to the 56 base year, [ computed ] rounded to four decimals [ without rounding ]. S. 3006--C 10 A. 3006--C

1 § 7. Paragraph mm of subdivision 1 of section 3602 of the education 2 law is renumbered subparagraph (iii) of paragraph q of such subdivision 3 1 and is amended to read as follows: 4 (iii) "Three-year average small area income and poverty estimate rate" 5 shall equal the quotient of: (i) the sum of the number of persons aged 6 five to seventeen within the school district, based on the small area 7 income and poverty estimates produced by the United States census 8 bureau, whose families had incomes below the poverty level for the 9 calendar year prior to the year in which the base year began, plus such 10 number for the calendar year two years prior to the year in which the 11 base year began, plus such number for the calendar year three years 12 prior to the year in which the base year began; divided by (ii) the sum 13 of the total number of persons aged five to seventeen within the school 14 district, based on such census bureau estimates, for the year prior to 15 the year in which the base year began, plus such total number for the 16 year two years prior to the year in which the base year began, plus such 17 total number for the year three years prior to the year in which the 18 base year began, [ computed ] rounded to four decimals [ without rounding ]. 19 § 8. Subparagraph 2 of paragraph g of subdivision 3 of section 3602 of 20 the education law, as amended by section 13 of part B of chapter 57 of 21 the laws of 2008, is amended to read as follows: 22 (2) a value computed by subtracting from one the product obtained by 23 multiplying the combined wealth ratio by sixty-four hundredths , provided 24 however, that for the purpose of computing the state sharing ratio for 25 total foundation aid, the tier two value shall be computed by subtract- 26 ing from one the product obtained when multiplying the combined wealth 27 ratio by six hundred sixteen thousandths (0.616) and such values shall 28 be computed using the combined wealth ratio for total foundation aid in 29 place of the combined wealth ratio ; or 30 § 9. The closing paragraph of paragraph g of subdivision 3 of section 31 3602 of the education law, as amended by section 8 of part A of chapter 32 56 of the laws of 2024, is amended to read as follows: 33 Such result shall be expressed as a decimal carried to three places 34 without rounding, but shall not be greater than ninety hundredths nor 35 less than zero, provided, however, that for the purpose of computing the 36 state sharing ratio for total foundation aid in the two thousand twen- 37 ty-four--two thousand twenty-five school year [ and thereafter ], such 38 result shall not be greater than ninety-one hundredths (0.91), and that 39 for the purpose of computing the state sharing ratio for total founda- 40 tion aid in the two thousand twenty-five--two thousand twenty-six school 41 year and thereafter, such result shall not be greater than ninety-three 42 hundredths (0.93) . 43 § 10. Subdivision 4 of section 3602 of the education law is amended by 44 adding a new paragraph f to read as follows: 45 f. Foundation aid payable in the two thousand twenty-five--two thou- 46 sand twenty-six school year. Notwithstanding any provision of law to the 47 contrary, foundation aid payable in the two thousand twenty-five--two 48 thousand twenty-six school year shall equal the greater of total founda- 49 tion aid or the product of one and two hundredths (1.02) multiplied by 50 the foundation aid base. 51 § 10-a. Subparagraph 2 of paragraph a of subdivision 4 of section 3602 52 of the education law, as amended by section 9-b of part CCC of chapter 53 59 of the laws of 2018, is amended to read as follows: 54 (2) The regional cost index shall reflect an analysis of labor market 55 costs based on median salaries in professional occupations that require 56 similar credentials to those of positions in the education field, but S. 3006--C 11 A. 3006--C

1 not including those occupations in the education field, provided that 2 the regional cost indices for the two thousand seven--two thousand eight 3 school year and thereafter shall be as follows: 4 Labor Force Region Index 5 Capital District 1.124 6 Southern Tier 1.045 7 Western New York 1.091 8 Hudson Valley 1.314 9 Long Island/NYC 1.425 10 Finger Lakes 1.141 11 Central New York 1.103 12 Mohawk Valley 1.000 13 North Country 1.000 14 Provided that in the two thousand twenty-five--two thousand twenty- 15 six school year and thereafter, the regional cost index for Westchester 16 county shall be 1.351. 17 § 10-b. Paragraph b of subdivision 5 of section 1950 of the education 18 law, as amended by chapter 130 of the laws of 2022, is amended to read 19 as follows: 20 b. The cost of services herein referred to shall be the amount allo- 21 cated to each component school district by the board of cooperative 22 educational services to defray expenses of such board, including 23 approved expenses from the testing of potable water systems of occupied 24 school buildings under the board's jurisdiction as required pursuant to 25 section eleven hundred ten of the public health law provided that such 26 expenses for testing of potable water systems are not reimbursable from 27 another state or federal source, except that that part of the salary 28 paid any teacher, supervisor or other employee of the board of cooper- 29 ative educational services which is , (i) for aid payable in the two 30 thousand twenty-five--two thousand twenty-six school year and prior 31 school years in excess of thirty thousand dollars , (ii) for aid payable 32 in the two thousand twenty-six--two thousand twenty-seven school year in 33 excess of forty thousand dollars, (iii) for aid payable in the two thou- 34 sand twenty-seven--two thousand twenty-eight school year in excess of 35 fifty thousand dollars, and (iv) for aid payable in the two thousand 36 twenty-eight--two thousand twenty-nine school year and thereafter, in 37 excess of sixty thousand dollars, shall not be such an approved expense, 38 and except also that administrative and clerical expenses shall not 39 exceed ten percent of the total expenses for purposes of this computa- 40 tion. Any gifts, donations or interest earned by the board of cooper- 41 ative educational services or on behalf of the board of cooperative 42 educational services by the dormitory authority or any other source 43 shall not be deducted in determining the cost of services allocated to 44 each component school district. Any payments made to a component school 45 district by the board of cooperative educational services pursuant to 46 subdivision eleven of section six-p of the general municipal law attrib- 47 utable to an approved cost of service computed pursuant to this subdivi- 48 sion shall be deducted from the cost of services allocated to such 49 component school district. The expense of transportation provided by the 50 board of cooperative educational services pursuant to paragraph q of 51 subdivision four of this section shall be eligible for aid apportioned 52 pursuant to subdivision seven of section thirty-six hundred two of this 53 chapter and no board of cooperative educational services transportation 54 expense shall be an approved cost of services for the computation of aid 55 under this subdivision. Transportation expense pursuant to paragraph q S. 3006--C 12 A. 3006--C

1 of subdivision four of this section shall be included in the computation 2 of the ten percent limitation on administrative and clerical expenses. 3 § 10-c. Paragraph b of subdivision 10 of section 3602 of the education 4 law, as amended by section 16 of part B of chapter 57 of the laws of 5 2007, is amended to read as follows: 6 b. (1) Aid for career education. There shall be apportioned to such 7 city school districts and other school districts which were not compo- 8 nents of a board of cooperative educational services in the base year 9 for pupils in selected grades [ ten through twelve ] in attendance in 10 career education programs as such programs are defined by the commis- 11 sioner, subject for the purposes of this paragraph to the approval of 12 the director of the budget, an amount for each such pupil to be computed 13 by multiplying the career education aid ratio by three thousand nine 14 hundred dollars for aid payable in the two thousand twenty-four--two 15 thousand twenty-five school year and prior and four thousand one hundred 16 dollars thereafter . Such aid will be payable for weighted pupils 17 attending career education programs operated by the school district and 18 for weighted pupils for whom such school district contracts with boards 19 of cooperative educational services to attend career education programs 20 operated by a board of cooperative educational services. Weighted pupils 21 for the purposes of this paragraph shall mean the sum of the attendance 22 of students in selected grades [ ten through twelve ] in career education 23 sequences in trade, industrial, technical, agricultural or health 24 programs plus the product of sixteen hundredths multiplied by the 25 attendance of students in selected grades [ ten through twelve ] in career 26 education sequences in business and marketing as defined by the commis- 27 sioner in regulations. The career education aid ratio shall be computed 28 by subtracting from one the product obtained by multiplying fifty-nine 29 percent by the combined wealth ratio. This aid ratio shall be expressed 30 as a decimal carried to three places without rounding, but not less than 31 thirty-six percent. For purposes of this subparagraph, "selected 32 grades" shall be grades ten through twelve for aid payable in the two 33 thousand twenty-four--two thousand twenty-five school year and prior, 34 and shall be grades nine through twelve for aid payable in the two thou- 35 sand twenty-five--two thousand twenty-six school year and thereafter. 36 (2) Any school district that receives aid pursuant to this paragraph 37 shall be required to use such amount to support career education 38 programs in the current year. 39 (3) A board of education which spends less than its local funds as 40 defined by regulations of the commissioner for career education in the 41 base year during the current year shall have its apportionment under 42 this subdivision reduced in an amount equal to such deficiency in the 43 current or a succeeding school year, provided however that the commis- 44 sioner may waive such reduction upon determination that overall expendi- 45 tures per pupil in support of career education programs were continued 46 at a level equal to or greater than the level of such overall expendi- 47 tures per pupil in the preceding school year. 48 § 10-d. The opening paragraph of subdivision 41 of section 3602 of the 49 education law, as amended by section 20 of part B of chapter 57 of the 50 laws of 2008, is amended and a new paragraph (e) is added to read as 51 follows: 52 Transitional aid for charter school payments. In addition to any other 53 apportionment under this section, for the two thousand seven--two thou- 54 sand eight school year and thereafter, a school district other than a 55 city school district in a city having a population of one million or 56 more shall be eligible for an apportionment in an amount equal to the S. 3006--C 13 A. 3006--C

1 greater of the sum of paragraphs (a), (b), and (c), or paragraph (e) of 2 this subdivision. 3 (e) For school districts other than city school districts of cities 4 having populations of one hundred twenty-five thousand or more as of the 5 two thousand twenty decennial census, the product of eligible pupils 6 multiplied by eight-tenths (0.8) and further multiplied by charter 7 school basic tuition for the base year as defined pursuant to section 8 twenty-eight hundred fifty-six of this chapter. For purposes of this 9 paragraph, eligible pupils shall be equal to the positive difference, if 10 any, of the number of resident pupils enrolled in a charter school in 11 the base year less the product of two-tenths (0.2) multiplied by total 12 resident public school district enrollment in the base year. 13 § 10-e. Subparagraph 6 of paragraph d and paragraph d-1 of subdivision 14 14 of section 3602 of the education law, subparagraph 6 of paragraph d 15 as added by section 17-a of part B of chapter 57 of the laws of 2007 and 16 paragraph d-1 as amended by section 10-a of part A of chapter 56 of the 17 laws of 2024, are amended to read as follows: 18 (6) where such reorganization includes at least two school districts 19 employing eight or more teachers forming a central high school district 20 pursuant to section nineteen hundred thirteen of this chapter[ , ] . 21 (7) such reorganized district shall be entitled to an apportionment 22 equal to an additional percent of the apportionment computed in accord- 23 ance with the provisions of paragraph d-1 of this subdivision; but in no 24 case shall the sum of such apportionment under this paragraph plus the 25 [ selected operating aid per pupil ] total operating aid base as defined 26 in this subdivision be more than a total of ninety-five per centum of 27 the year prior to the base year approved operating expense; for a period 28 of five years beginning with the first school year of operation as a 29 reorganized district such additional percent shall be forty percent; and 30 thereafter such additional forty percent apportionment to such district 31 shall be reduced by four percentage points each year, beginning with the 32 sixth school year of operation as a reorganized district, and continuing 33 until such additional forty percent apportionment is eliminated; 34 provided, however, that the total apportionment to such reorganized 35 district, beginning with the first school year of operation as a reor- 36 ganized district, and for a period of fifteen years thereafter, shall be 37 not less than the sum of all apportionments computed in accordance with 38 the provisions of this paragraph plus the apportionment computed in 39 accordance with the provisions of paragraph d-1 of this subdivision that 40 each component school district was entitled to receive and did receive 41 during the last school year preceding such first year of operation. In 42 the event a school district is eligible for incentive operating aid and 43 again reorganizes pursuant to a new plan or reorganization established 44 by the commissioner, and where such new reorganization is again eligible 45 for incentive operating aid, the newly created school district shall be 46 entitled to receive incentive operating aid pursuant to the provisions 47 of this paragraph, based on all school districts included in any such 48 reorganization, provided, however, that incentive operating aid payments 49 due because of any such former reorganization shall cease. 50 d-1. For purposes of paragraph d of this subdivision, [ "selected oper- 51 ating aid per pupil" ] "total operating aid base" shall mean the appor- 52 tionment computed for the 2006-07 school year, based on data on file 53 with the commissioner as of the date upon which an electronic data file 54 was created for the purposes of compliance with paragraph b of subdivi- 55 sion twenty-one of section three hundred five of this chapter on Febru- 56 ary fifteenth, provided further that for school districts which reorgan- S. 3006--C 14 A. 3006--C

1 ize on or after July first, two thousand twenty-four, for purposes of 2 paragraph d of this subdivision, [ "selected operating aid per pupil" ] 3 "total operating aid base" shall mean the total foundation aid base, as 4 defined pursuant to paragraph j of subdivision one of this section, 5 calculated as of the effective date of the reorganization. 6 § 11. The education law is amended by adding a new section 319 to read 7 as follows: 8 § 319. Establishment of dual enrollment program policy. 1. For 9 purposes of this section: 10 (a) "Dual enrollment program" means any program that is a partnership 11 between at least one school and at least one institution of higher 12 education that provides high school students with the opportunity to 13 enroll in college courses and earn transferable college credit from the 14 institution or institutions while completing high school graduation and 15 diploma requirements. 16 (b) "School" means a charter school, a school district, or a board of 17 cooperative educational services. 18 2. The commissioner shall adopt a statewide policy outlining the defi- 19 nition of dual enrollment programs in New York state and guidelines for 20 participation and data reporting. 21 3. The policy established pursuant to subdivision two of this section 22 shall require that schools and higher education institutions annually 23 submit to the department data regarding participation in and outcomes of 24 dual enrollment programs in a form and manner determined by the commis- 25 sioner pursuant to subdivision five of this section. The department 26 shall annually publish such data on its public website no later than 27 January first in the school year following the school year for which the 28 data is applicable. 29 4. The policy established pursuant to subdivision two of this section 30 shall require that, by September first, two thousand twenty-six, all 31 schools participating in a dual enrollment program shall submit to the 32 department a partnership agreement with the institution or institutions 33 of higher education with which they are partnered. Such partnership 34 agreements shall establish the scope and terms of the dual enrollment 35 program, as well as a protocol for collecting, sharing, and reporting 36 any data required by the commissioner pursuant to this section. Partner- 37 ship agreements shall be consistent with the policy adopted by the 38 commissioner pursuant to subdivision two of this section, and shall 39 contain such other provisions as may be required by the commissioner. 40 The partnership agreements shall be updated and resubmitted no less than 41 once every five years. The commissioner shall develop and make publicly 42 available the required partnership agreement form for schools and higher 43 education institutions no later than January first, two thousand twen- 44 ty-six. 45 5. On or before January first, two thousand twenty-six, the commis- 46 sioner, the chancellor of the state university of New York, the chancel- 47 lor of the city university of New York, and the governor shall jointly 48 establish data points to be submitted pursuant to this section. 49 § 12. Subdivision 4 of section 3627 of the education law, as amended 50 by section 13-a of part A of chapter 56 of the laws of 2024, is amended 51 to read as follows: 52 4. Notwithstanding any other provision of law to the contrary, any 53 expenditures for transportation provided pursuant to this section in the 54 two thousand thirteen--two thousand fourteen school year and thereafter 55 and otherwise eligible for transportation aid pursuant to subdivision 56 seven of section thirty-six hundred two of this article shall be consid- S. 3006--C 15 A. 3006--C

1 ered approved transportation expenses eligible for transportation aid, 2 provided further that for the two thousand thirteen--two thousand four- 3 teen school year such aid shall be limited to eight million one hundred 4 thousand dollars and for the two thousand fourteen--two thousand fifteen 5 school year such aid shall be limited to the sum of twelve million six 6 hundred thousand dollars plus the base amount and for the two thousand 7 fifteen--two thousand sixteen school year through two thousand eigh- 8 teen--two thousand nineteen school year such aid shall be limited to the 9 sum of eighteen million eight hundred fifty thousand dollars plus the 10 base amount and for the two thousand nineteen--two thousand twenty 11 school year such aid shall be limited to the sum of nineteen million 12 three hundred fifty thousand dollars plus the base amount and for the 13 two thousand twenty--two thousand twenty-one school year such aid shall 14 be limited to the sum of nineteen million eight hundred fifty thousand 15 dollars plus the base amount and for the two thousand twenty-two--two 16 thousand twenty-three school year such aid shall be limited to the sum 17 of twenty-two million three hundred fifty thousand dollars plus the base 18 amount and for the two thousand twenty-three--two thousand twenty-four 19 school year such aid shall be limited to the sum of twenty-four million 20 eight hundred fifty thousand dollars plus the base amount and for the 21 two thousand twenty-four--two thousand twenty-five school year [ and 22 thereafter ] such aid shall be limited to the sum of twenty-nine million 23 eight hundred fifty thousand dollars plus the base amount and for the 24 two thousand twenty-five--two thousand twenty-six school year and there- 25 after such aid shall be limited to the product of (i) the maximum amount 26 of aid authorized by this subdivision for the base year, and (ii) the 27 sum of one plus the product of (a) two and one-half multiplied by (b) 28 the percentage increase in the consumer price index as defined in para- 29 graph hh of subdivision one of section thirty-six hundred two of this 30 article . For purposes of this subdivision, "base amount" means the 31 amount of transportation aid paid to the school district for expendi- 32 tures incurred in the two thousand twelve--two thousand thirteen school 33 year for transportation that would have been eligible for aid pursuant 34 to this section had this section been in effect in such school year, 35 except that subdivision six of this section shall be deemed not to have 36 been in effect. And provided further that the school district shall 37 continue to annually expend for the transportation described in subdivi- 38 sion one of this section at least the expenditures used for the base 39 amount. 40 § 12-a. Section 11 of chapter 378 of the laws of 2010 amending the 41 education law relating to paperwork reduction, as amended by section 1 42 of item FF of subpart B of part XXX of chapter 58 of the laws of 2020, 43 is amended to read as follows: 44 § 11. This act shall take effect immediately; provided, however, that 45 the commissioner of education shall promulgate any rules or regulations 46 necessary to implement the provisions of this act on or before July 1, 47 2010; provided, further that if section ten of this act shall take 48 effect after July 1, 2010 it shall be deemed to have been in full force 49 and effect on and after July 1, 2010; and provided further that section 50 ten of this act shall expire and be deemed repealed [ on ] June 30, [ 2025 ] 51 2030 . 52 § 12-b. Subdivision 4 of section 3638 of the education law, as added 53 by section 1 of subpart A of part B of chapter 56 of the laws of 2022, 54 is amended to read as follows: 55 4. (a) A school district may apply to the commissioner, and the 56 department may grant a [ one-time extension ] maximum of two extensions of S. 3006--C 16 A. 3006--C

1 up to twenty-four months each to comply with the requirements of subdi- 2 vision two of this section. The commissioner shall consider a school 3 district's effort to meet the requirements of subdivision two of this 4 section and any other factors outside of the control of the district 5 when granting an extension, including but not limited to, procurement 6 efforts made by the school district, applications for state or federal 7 funds, changes needed to school district operations to meet the require- 8 ments of this section, employee training, [ and ] receipt of technical 9 assistance, [ if any. Upon a school district receiving an extension, the 10 New York state energy research and development authority, in consulta- 11 tion with the department, shall provide any additional technical assist- 12 ance necessary to the district to meet the requirements of subdivision 13 two of this section ] market availability of zero-emission school buses 14 or supporting infrastructure, and availability of state or federal 15 funds. In order to receive a second extension pursuant to this para- 16 graph, a school district must have at least engaged with the New York 17 state energy research and development authority in the initiation and 18 development of a fleet electrification plan. 19 The commissioner shall provide written notification to a school 20 district where such school district is granted an extension and shall 21 detail the grounds for granting such extension. 22 (b) The commissioner shall notify the New York state energy research 23 and development authority when the first extension is granted to a 24 school district pursuant to paragraph (a) of this subdivision. The New 25 York state energy research and development authority or its designee 26 shall meet with the school district at least annually during the exten- 27 sion period to provide technical assistance to address the grounds 28 detailed in the extension. 29 (c) The New York state energy research and development authority shall 30 make a recommendation to the commissioner if they determine a school 31 district has the capacity to fulfill the requirements of subdivision two 32 of this section based on the fleet electrification technical assessment 33 and shall notify the education department and the school district of 34 such recommendation in writing. No school district may be granted an 35 extension pursuant to paragraph (a) of this subdivision where the New 36 York state energy research and development authority has notified the 37 commissioner of their recommendation that such school district has the 38 capacity to fulfill the requirements of subdivision two of this section. 39 (d) The commissioner shall publish on the department's website no 40 later than December thirty-first, two thousand twenty-five the applica- 41 tion school districts must use to apply for extensions pursuant to para- 42 graph (a) of this subdivision and the requirements school districts must 43 meet to qualify for such extensions . 44 § 12-c. The general business law is amended by adding a new article 45 11-C to read as follows: 46 ARTICLE 11-C 47 SALE OF ZERO-EMISSION SCHOOL BUSES 48 Section. 199-o. Independent range estimate required. 49 199-p. Penalties. 50 § 199-o. Independent range estimate required. (a) Any entity that 51 sells a zero-emission school bus to a school district or contractor for 52 use in providing transportation services to a school district located 53 within the state of New York shall be required to provide an independent 54 third-party range estimate to prospective purchasers prior to such a 55 sale. Such range estimate must, at a minimum, provide the estimated 56 range on different terrain and different weather conditions. The range S. 3006--C 17 A. 3006--C

1 estimate shall also include the average level of battery degradation per 2 ten thousand miles traveled. The range estimate shall also consider 3 whether the bus is stored outside or utilizes an indoor garage. For the 4 purposes of this section "zero-emission school bus" shall have the same 5 meaning as in subdivision one of section thirty-six hundred thirty-eight 6 of the education law. 7 (b) Nothing in this section shall be interpreted to impact sales 8 completed prior to January first, two thousand twenty-six, provided 9 however that if the entity selling such zero-emission school buses later 10 receives a range estimate for the model or models sold prior to January 11 first, two thousand twenty-six, the selling entity shall provide such 12 range estimate to the purchasing school district or contractor. 13 § 199-p. Penalties. Any person, firm, corporation, or association or 14 agent or employee thereof who violates the provisions of this article 15 shall be liable for a civil penalty of not more than one thousand 16 dollars for each violation, which shall accrue to the state of New York 17 and may be recovered in a civil action brought by the attorney general. 18 For the purposes of this article, the noncompliant sale of each zero-em- 19 ission school bus shall constitute a single violation. 20 § 12-d. Subparagraph 2 of paragraph d of subdivision 3 of section 21 3623-a of the education law, as added by section 13 of part A of chapter 22 56 of the laws of 2024, is amended to read as follows: 23 (2) (i) In the case of allowable expenses for transportation capital, 24 debt service, or leases which are related to costs associated with the 25 purchase of or conversion to zero-emission school buses and supporting 26 infrastructure and which are supported in whole or in part by vouchers, 27 payments, or grants authorized under section 58-0701 of the environ- 28 mental conservation law, such allowable expenses at the time in which 29 the expense is claimed for aid shall [ not exceed ] be reduced by the 30 quotient of (A) the positive difference, if any, of the maximum state 31 support less allowable expenses, divided by (B) the transportation aid 32 ratio calculated pursuant to subdivision seven of section thirty-six 33 hundred two of this article, provided that allowable expenses after such 34 reduction, if any, shall be greater than zero. 35 (ii) For purposes of this subparagraph "maximum state support" shall 36 be equal to the sum of [ (i) ] (A) the product of the transportation aid 37 ratio calculated pursuant to subdivision seven of section thirty-six 38 hundred two of this article multiplied by allowable expenses, plus 39 [ (ii) ] (B) the final value of any such vouchers paid on behalf of a 40 school district, payments, and grants authorized under section 58-0701 41 of the environmental conservation law. 42 § 13. Paragraph i of subdivision 12 of section 3602 of the education 43 law, as amended by section 14 of part A of chapter 56 of the laws of 44 2024, is amended to read as follows: 45 i. For the two thousand twenty-one--two thousand twenty-two school 46 year through the two thousand [ twenty-four ] twenty-five --two thousand 47 [ twenty-five ] twenty-six school year, each school district shall be 48 entitled to an apportionment equal to the amount set forth for such 49 school district as "ACADEMIC ENHANCEMENT" under the heading "2020-21 50 ESTIMATED AIDS" in the school aid computer listing produced by the 51 commissioner in support of the budget for the two thousand twenty--two 52 thousand twenty-one school year and entitled "SA202-1", and such appor- 53 tionment shall be deemed to satisfy the state obligation to provide an 54 apportionment pursuant to subdivision eight of section thirty-six 55 hundred forty-one of this article. S. 3006--C 18 A. 3006--C

1 § 14. The opening paragraph of subdivision 16 of section 3602 of the 2 education law, as amended by section 15 of part A of chapter 56 of the 3 laws of 2024, is amended to read as follows: 4 Each school district shall be eligible to receive a high tax aid 5 apportionment in the two thousand eight--two thousand nine school year, 6 which shall equal the greater of (i) the sum of the tier 1 high tax aid 7 apportionment, the tier 2 high tax aid apportionment and the tier 3 high 8 tax aid apportionment or (ii) the product of the apportionment received 9 by the school district pursuant to this subdivision in the two thousand 10 seven--two thousand eight school year, multiplied by the due-minimum 11 factor, which shall equal, for districts with an alternate pupil wealth 12 ratio computed pursuant to paragraph b of subdivision three of this 13 section that is less than two, seventy percent (0.70), and for all other 14 districts, fifty percent (0.50). Each school district shall be eligible 15 to receive a high tax aid apportionment in the two thousand nine--two 16 thousand ten through two thousand twelve--two thousand thirteen school 17 years in the amount set forth for such school district as "HIGH TAX AID" 18 under the heading "2008-09 BASE YEAR AIDS" in the school aid computer 19 listing produced by the commissioner in support of the budget for the 20 two thousand nine--two thousand ten school year and entitled "SA0910". 21 Each school district shall be eligible to receive a high tax aid appor- 22 tionment in the two thousand thirteen--two thousand fourteen through two 23 thousand [ twenty-four ] twenty-five --two thousand [ twenty-five ] twenty- 24 six school year equal to the greater of (1) the amount set forth for 25 such school district as "HIGH TAX AID" under the heading "2008-09 BASE 26 YEAR AIDS" in the school aid computer listing produced by the commis- 27 sioner in support of the budget for the two thousand nine--two thousand 28 ten school year and entitled "SA0910" or (2) the amount set forth for 29 such school district as "HIGH TAX AID" under the heading "2013-14 ESTI- 30 MATED AIDS" in the school aid computer listing produced by the commis- 31 sioner in support of the executive budget for the 2013-14 fiscal year 32 and entitled "BT131-4". 33 § 15. Subdivision 16 of section 3602-ee of the education law, as 34 amended by section 18 of part A of chapter 56 of the laws of 2024, is 35 amended to read as follows: 36 16. The authority of the department to administer the universal full- 37 day pre-kindergarten program shall expire June thirtieth, two thousand 38 [ twenty-five ] twenty-six ; provided that the program shall continue and 39 remain in full effect. 40 § 16. Intentionally omitted. 41 § 17. The opening paragraph of section 3609-a of the education law, as 42 amended by section 23 of part A of chapter 56 of the laws of 2024, is 43 amended to read as follows: 44 For aid payable in the two thousand seven--two thousand eight school 45 year through the two thousand [ twenty-four ] twenty-five --two thousand 46 [ twenty-five ] twenty-six school year, "moneys apportioned" shall mean 47 the lesser of (i) the sum of one hundred percent of the respective 48 amount set forth for each school district as payable pursuant to this 49 section in the school aid computer listing for the current year produced 50 by the commissioner in support of the budget which includes the appro- 51 priation for the general support for public schools for the prescribed 52 payments and individualized payments due prior to April first for the 53 current year plus the apportionment payable during the current school 54 year pursuant to subdivision six-a and subdivision fifteen of section 55 thirty-six hundred two of this part minus any reductions to current year 56 aids pursuant to subdivision seven of section thirty-six hundred four of S. 3006--C 19 A. 3006--C

1 this part or any deduction from apportionment payable pursuant to this 2 chapter for collection of a school district basic contribution as 3 defined in subdivision eight of section forty-four hundred one of this 4 chapter, less any grants provided pursuant to subparagraph two-a of 5 paragraph b of subdivision four of section ninety-two-c of the state 6 finance law, less any grants provided pursuant to subdivision five of 7 section ninety-seven-nnnn of the state finance law, less any grants 8 provided pursuant to subdivision twelve of section thirty-six hundred 9 forty-one of this article, or (ii) the apportionment calculated by the 10 commissioner based on data on file at the time the payment is processed; 11 provided however, that for the purposes of any payments made pursuant to 12 this section prior to the first business day of June of the current 13 year, moneys apportioned shall not include any aids payable pursuant to 14 subdivisions six and fourteen, if applicable, of section thirty-six 15 hundred two of this part as current year aid for debt service on bond 16 anticipation notes and/or bonds first issued in the current year or any 17 aids payable for full-day kindergarten for the current year pursuant to 18 subdivision nine of section thirty-six hundred two of this part. The 19 definitions of "base year" and "current year" as set forth in subdivi- 20 sion one of section thirty-six hundred two of this part shall apply to 21 this section. For aid payable in the two thousand [ twenty-four ] twenty- 22 five --two thousand [ twenty-five ] twenty-six school year, reference to 23 such "school aid computer listing for the current year" shall mean the 24 printouts entitled [ "SA242-5" ] "SA252-6" . 25 § 18. Subdivision b of section 2 of chapter 756 of the laws of 1992, 26 relating to funding a program for work force education conducted by the 27 consortium for worker education in New York city, as amended by section 28 27 of part A of chapter 56 of the laws of 2024, is amended to read as 29 follows: 30 b. Reimbursement for programs approved in accordance with subdivision 31 a of this section for the reimbursement for the 2018--2019 school year 32 shall not exceed 59.4 percent of the lesser of such approvable costs per 33 contact hour or fourteen dollars and ninety-five cents per contact hour, 34 reimbursement for the 2019--2020 school year shall not exceed 57.7 35 percent of the lesser of such approvable costs per contact hour or 36 fifteen dollars sixty cents per contact hour, reimbursement for the 37 2020--2021 school year shall not exceed 56.9 percent of the lesser of 38 such approvable costs per contact hour or sixteen dollars and twenty- 39 five cents per contact hour, reimbursement for the 2021--2022 school 40 year shall not exceed 56.0 percent of the lesser of such approvable 41 costs per contact hour or sixteen dollars and forty cents per contact 42 hour, reimbursement for the 2022--2023 school year shall not exceed 55.7 43 percent of the lesser of such approvable costs per contact hour or 44 sixteen dollars and sixty cents per contact hour, reimbursement for the 45 2023--2024 school year shall not exceed 54.7 percent of the lesser of 46 such approvable costs per contact hour or seventeen dollars and seventy 47 cents per contact hour, [ and ] reimbursement for the 2024--2025 school 48 year shall not exceed 56.6 percent of the lesser of such approvable 49 costs per contact hour or eighteen dollars and seventy cents per contact 50 hour, and reimbursement for the 2025--2026 school year shall not exceed 51 58.2 percent of the lesser of such approvable costs per contact hour or 52 nineteen dollars and fifty-five cents per contact hour, and where a 53 contact hour represents sixty minutes of instruction services provided 54 to an eligible adult. Notwithstanding any other provision of law to the 55 contrary, for the 2018--2019 school year such contact hours shall not 56 exceed one million four hundred sixty-three thousand nine hundred S. 3006--C 20 A. 3006--C

1 sixty-three (1,463,963); for the 2019--2020 school year such contact 2 hours shall not exceed one million four hundred forty-four thousand four 3 hundred forty-four (1,444,444); for the 2020--2021 school year such 4 contact hours shall not exceed one million four hundred six thousand 5 nine hundred twenty-six (1,406,926); for the 2021--2022 school year such 6 contact hours shall not exceed one million four hundred sixteen thousand 7 one hundred twenty-two (1,416,122); for the 2022--2023 school year such 8 contact hours shall not exceed one million four hundred six thousand 9 nine hundred twenty-six (1,406,926); for the 2023--2024 school year such 10 contact hours shall not exceed one million three hundred forty-two thou- 11 sand nine hundred seventy-five (1,342,975); [ and ] for the 2024--2025 12 school year such contact hours shall not exceed one million two hundred 13 twenty-eight thousand seven hundred thirty-three (1,228,733) ; and for 14 the 2025--2026 school year such contact hours shall not exceed one 15 million one hundred forty-three thousand three hundred fifty-nine 16 (1,143,359) . Notwithstanding any other provision of law to the contra- 17 ry, the apportionment calculated for the city school district of the 18 city of New York pursuant to subdivision 11 of section 3602 of the 19 education law shall be computed as if such contact hours provided by the 20 consortium for worker education, not to exceed the contact hours set 21 forth herein, were eligible for aid in accordance with the provisions of 22 such subdivision 11 of section 3602 of the education law. 23 § 19. Section 4 of chapter 756 of the laws of 1992, relating to fund- 24 ing a program for work force education conducted by the consortium for 25 worker education in New York city, is amended by adding a new subdivi- 26 sion dd to read as follows: 27 dd. The provisions of this subdivision shall not apply after the 28 completion of payments for the 2025--2026 school year. Notwithstanding 29 any inconsistent provisions of law, the commissioner of education shall 30 withhold a portion of employment preparation education aid due to the 31 city school district of the city of New York to support a portion of the 32 costs of the work force education program. Such moneys shall be credited 33 to the elementary and secondary education fund-local assistance account 34 and shall not exceed thirteen million dollars ($13,000,000). 35 § 20. Section 6 of chapter 756 of the laws of 1992, relating to fund- 36 ing a program for work force education conducted by the consortium for 37 worker education in New York city, as amended by section 29 of part A of 38 chapter 56 of the laws of 2024, is amended to read as follows: 39 § 6. This act shall take effect July 1, 1992, and shall be deemed 40 repealed June 30, [ 2025 ] 2026 . 41 § 20-a. Paragraph a-1 of subdivision 11 of section 3602 of the educa- 42 tion law, as amended by section 29-a of part A of chapter 56 of the laws 43 of 2024, is amended to read as follows: 44 a-1. Notwithstanding the provisions of paragraph a of this subdivi- 45 sion, for aid payable in the school years two thousand--two thousand one 46 through two thousand nine--two thousand ten, and two thousand eleven-- 47 two thousand twelve through two thousand [ twenty-four ] twenty-five --two 48 thousand [ twenty-five ] twenty-six , the commissioner may set aside an 49 amount not to exceed two million five hundred thousand dollars from the 50 funds appropriated for purposes of this subdivision for the purpose of 51 serving persons twenty-one years of age or older who have not been 52 enrolled in any school for the preceding school year, including persons 53 who have received a high school diploma or high school equivalency 54 diploma but fail to demonstrate basic educational competencies as 55 defined in regulation by the commissioner, when measured by accepted S. 3006--C 21 A. 3006--C

1 standardized tests, and who shall be eligible to attend employment prep- 2 aration education programs operated pursuant to this subdivision. 3 § 21. Subdivision 6 of section 4402 of the education law, as amended 4 by section 25 of part A of chapter 56 of the laws of 2024, is amended to 5 read as follows: 6 6. Notwithstanding any other law, rule or regulation to the contrary, 7 the board of education of a city school district with a population of 8 one hundred twenty-five thousand or more inhabitants shall be permitted 9 to establish maximum class sizes for special classes for certain 10 students with disabilities in accordance with the provisions of this 11 subdivision. For the purpose of obtaining relief from any adverse fiscal 12 impact from under-utilization of special education resources due to low 13 student attendance in special education classes at the middle and 14 secondary level as determined by the commissioner, such boards of educa- 15 tion shall, during the school years nineteen hundred ninety-five--nine- 16 ty-six through June thirtieth, two thousand [ twenty-five ] twenty-six , be 17 authorized to increase class sizes in special classes containing 18 students with disabilities whose age ranges are equivalent to those of 19 students in middle and secondary schools as defined by the commissioner 20 for purposes of this section by up to but not to exceed one and two 21 tenths times the applicable maximum class size specified in regulations 22 of the commissioner rounded up to the nearest whole number, provided 23 that in a city school district having a population of one million or 24 more, classes that have a maximum class size of fifteen may be increased 25 by no more than one student and provided that the projected average 26 class size shall not exceed the maximum specified in the applicable 27 regulation, provided that such authorization shall terminate on June 28 thirtieth, two thousand. Such authorization shall be granted upon filing 29 of a notice by such a board of education with the commissioner stating 30 the board's intention to increase such class sizes and a certification 31 that the board will conduct a study of attendance problems at the 32 secondary level and will implement a corrective action plan to increase 33 the rate of attendance of students in such classes to at least the rate 34 for students attending regular education classes in secondary schools of 35 the district. Such corrective action plan shall be submitted for 36 approval by the commissioner by a date during the school year in which 37 such board increases class sizes as provided pursuant to this subdivi- 38 sion to be prescribed by the commissioner. Upon at least thirty days 39 notice to the board of education, after conclusion of the school year in 40 which such board increases class sizes as provided pursuant to this 41 subdivision, the commissioner shall be authorized to terminate such 42 authorization upon a finding that the board has failed to develop or 43 implement an approved corrective action plan. 44 § 22. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws 45 of 1995, amending the education law and other laws relating to state aid 46 to school districts and the appropriation of funds for the support of 47 government, as amended by section 26 of part A of chapter 56 of the laws 48 of 2024, are amended to read as follows: 49 (22) sections one hundred twelve, one hundred thirteen, one hundred 50 fourteen, one hundred fifteen and one hundred sixteen of this act shall 51 take effect on July 1, 1995; provided, however, that section one hundred 52 thirteen of this act shall remain in full force and effect until July 1, 53 [ 2025 ] 2026 at which time it shall be deemed repealed; 54 (24) sections one hundred eighteen through one hundred thirty of this 55 act shall be deemed to have been in full force and effect on and after 56 July 1, 1995; provided further, however, that the amendments made pursu- S. 3006--C 22 A. 3006--C

1 ant to section one hundred twenty-four of this act shall be deemed to be 2 repealed on and after July 1, [ 2025 ] 2026 ; 3 § 22-a. Section 12 of part C of chapter 56 of the laws of 2020 direct- 4 ing the commissioner of education to appoint a monitor for the Rochester 5 city school district, establishing the powers and duties of such monitor 6 and certain other officers and relating to the apportionment of aid to 7 such district, as amended by section 25 of part A of chapter 56 of the 8 laws of 2023, is amended to read as follows: 9 § 12. This act shall take effect immediately, provided, however, that 10 sections two, three, four, five, six, seven, eight, nine and ten of this 11 act shall expire and be deemed repealed June 30, [ 2025 ] 2027 ; and 12 provided further, however that sections one and eleven of this act shall 13 expire and be deemed repealed June 30, 2049. 14 § 22-b. Section 12 of chapter 19 of the laws of 2020 authorizing the 15 commissioner of education to appoint a monitor to oversee the Hempstead 16 union free school district and establishing the powers and duties of 17 such monitor, is amended to read as follows: 18 § 12. This act shall take effect immediately; provided, however, 19 section one of this act shall take effect on the same date as a chapter 20 of the laws of 2019, authorizing the commissioner of education and the 21 chancellor of the board of regents, with the approval of the board of 22 regents, to appoint monitors to oversee the Hempstead union free school 23 district, as proposed in legislative bills numbers S.6559 and A.8403, 24 takes effect; and provided further, however sections two, three, four, 25 five, six, seven, eight, nine, ten and eleven of this act shall expire 26 and be deemed repealed June 30, [ 2025 ] 2027 . 27 § 22-c. Section 13 of chapter 18 of the laws of 2020 authorizing the 28 commissioner of education to appoint a monitor to oversee the Wyandanch 29 union free school district and establishing the powers and duties of the 30 monitor, is amended to read as follows: 31 § 13. This act shall take effect immediately, provided however: 32 Section one of this act shall take effect on the same date as a chap- 33 ter of the laws of 2019, authorizing the commissioner of education, in 34 consultation with the comptroller to appoint a monitor to oversee the 35 Wyandanch union free school district and establishing the powers and 36 duties of the monitor, as proposed in legislative bills numbers S.6588-A 37 and A.8422-A, takes effect. 38 Sections three through ten of this act shall expire and be deemed 39 repealed June 30, [ 2025 ] 2027 . 40 Section eleven shall expire and be deemed repealed June 30 of the last 41 fiscal year during which serial bonds or bonds issued to refund such 42 serial bonds that are outstanding pursuant to such section of this act, 43 provided that the superintendent of the Wyandanch union free school 44 district shall notify the legislative bill drafting commission upon such 45 occurrence in order that the commission may maintain an accurate and 46 timely effective data base of the official text of the laws of the state 47 of New York in furtherance of effectuating the provisions of section 44 48 of the legislative law and section 70-b of the public officers law. 49 Sections two and twelve of this act shall expire and be deemed 50 repealed June 30, 2049. 51 § 22-d. Section 13 of chapter 89 of the laws of 2016 relating to 52 supplementary funding for dedicated programs for public school students 53 in the East Ramapo central school district, as amended by chapter 173 of 54 the laws of 2021, is amended to read as follows: 55 § 13. This act shall take effect July 1, 2016 and shall expire and be 56 deemed repealed June 30, [ 2025 ] 2027 . S. 3006--C 23 A. 3006--C

1 § 22-e. Section 3204 of the education law is amended by adding a new 2 subdivision 6 to read as follows: 3 6. Notwithstanding any law, rule, or regulation to the contrary: 4 (a) Instruction at a nonpublic school satisfies all the requirements 5 of this part applicable to instruction, including subdivision two of 6 this section, subdivision two of section thirty-two hundred ten of this 7 part, and any other requirements in this chapter applicable to instruc- 8 tion, and shall thereby qualify as and be finally recognized to be at 9 least substantially equivalent to the instruction given to minors of 10 like age and attainments at the public schools of the city or district 11 where the minor resides, if such nonpublic school is: 12 (i) a registered high school or nonpublic school serving grades one 13 through eight that has a registered high school; 14 (ii) a state-approved private special education school or state-oper- 15 ated or state-supported school established by the state legislature 16 pursuant to article eighty-five, eighty-seven or eighty-eight of this 17 chapter; 18 (iii) a nonpublic school that is accredited or is awarded provisional 19 status by an accreditation body approved by the commissioner for 20 purposes of demonstrating compliance with the requirements of this 21 section, except that such provisional status shall only apply for the 22 first five years that such nonpublic school has been awarded provisional 23 status. An accreditation body shall have the knowledge and expertise to 24 properly evaluate the entirety of the day's curriculum of those schools 25 that it accredits and shall use a peer review process that includes 26 evaluation by leaders of similar nonpublic schools, appropriately train 27 all staff and peer reviewers who are involved in the accreditation proc- 28 ess, accredit based on publicly accessible documented standards, perform 29 a comprehensive onsite visit of any school seeking accreditation while 30 such school is in session, and periodically conduct a combination of 31 interim and full accreditation reviews of the nonpublic schools which it 32 accredits during at least a ten-year period. Additionally, such accred- 33 itation body shall require nonpublic schools seeking accreditation to 34 have curriculum that is informed by research, document individual 35 student progress, and have mechanisms for monitoring, assessing, and 36 providing feedback on student progress. The commissioner may, at any 37 time, revoke such commissioner's approval of an accreditation body for 38 cause, upon notice and hearing; 39 (iv) a nonpublic school that participates in the international bacca- 40 laureate program; 41 (v) a nonpublic school whose instruction is approved by the United 42 States government for instruction on a military base or service academy; 43 (vi) a nonpublic school in which the percentage of students who score 44 "proficient" on a year-end summative or cumulative assessment and taken 45 in the same subject areas and for the same grade levels as the annual 46 New York state testing program to comply with the federal Every Student 47 Succeeds Act is equal to or greater than one of the following metrics, 48 and such school has declared the intended use of such metric at the 49 beginning of the school year: 50 (1) the percentage of similarly situated public school students scor- 51 ing at the "proficient" level on New York state testing program tests 52 taken in the same subject areas and grade levels in the school district 53 that serves the same geographic area as the nonpublic school is located; 54 or S. 3006--C 24 A. 3006--C

1 (2) the percentage of similarly situated public school students state- 2 wide scoring at the "proficient" level on New York state testing program 3 tests taken in the same subject areas and grade levels; or 4 (vii) a nonpublic school that administers a year-end summative or 5 cumulative assessment taken in substantially the same subject areas and 6 same grade levels as the annual New York state testing program to comply 7 with the federal Every Student Succeeds Act, has a three-year average 8 participation rate that is equal to or greater than the three-year 9 statewide average participation rate, and uses the results to assess the 10 school's educational program and to seek to improve instruction and its 11 students' performance on such tests. 12 (a-1) A nonpublic school's satisfaction of one or more criteria listed 13 in paragraph (a) of this subdivision in one school year shall not auto- 14 matically be deemed satisfaction of such criteria in later school years 15 if such school ceases to satisfy such criteria in such later years. 16 (b) (i) For purposes of subparagraphs (vi) and (vii) of paragraph (a) 17 of this subdivision, the following terms shall have the following mean- 18 ings: 19 (1) "Year-end summative or cumulative assessment" shall mean one or 20 more assessments selected by the nonpublic school that qualifies as (A) 21 a New York state testing program test; (B) an assessment approved by the 22 commissioner; or (C) a nationally-recognized, commercially published 23 norm-referenced achievement test that is: (I) recognized and used in at 24 least three other states; (II) selected by the nonpublic school from one 25 of the following: the Iowa Test of Basic Skills, the California Achieve- 26 ment Test, the Stanford Achievement Test, the Comprehensive Test of 27 Basic Skills, the Metropolitan Achievement Test, i-Ready, a state educa- 28 tion department test, or; (III) another test approved by the state 29 education department. All assessments and materials used in connection 30 with such assessments shall be culturally competent and respectful of 31 cultural curricula and pedagogy. A nonpublic school shall not need to 32 use the same year-end summative or cumulative assessment across all 33 grades or years and may change assessments used at any time. 34 (2) "Proficient" shall mean, as applicable, (A) a score of "profi- 35 cient" on a New York state testing program test; (B) a score determined 36 by the commissioner for an assessment approved by the commissioner; or 37 (C) a score of at least the thirty-third percentile on a nationally-re- 38 cognized, commercially published norm-referenced achievement test, 39 unless the commissioner approves a lower percentage for such tests. 40 (ii) To rely on subparagraph (vi) of paragraph (a) of this subdivi- 41 sion, a nonpublic school shall demonstrate a student participation rate 42 on its year-end summative or cumulative assessment or assessments equal 43 to or greater than the three-year average statewide participation rate. 44 (iii) To allow for adequate preparation of students in connection with 45 subparagraphs (vi) and (vii) of paragraph (a) of this subdivision, a 46 phase-in period shall be established. During such phase-in period, a 47 nonpublic school and its affiliated schools shall be deemed to have met 48 the criteria in subparagraphs (vi) and (vii) of paragraph (a) of this 49 subdivision, for purposes of all components of this subdivision. Such 50 phase-in status shall commence upon the effective date of this subdivi- 51 sion, including prior to the administration of any year-end summative or 52 cumulative assessment, and shall continue until the first cohort enter- 53 ing second grade at such nonpublic school after such effective date 54 completes the year-end summative or cumulative assessment for the third 55 grade and shall further continue in the subsequent years, as long as 56 such nonpublic school continues administering a year-end summative or S. 3006--C 25 A. 3006--C

1 cumulative assessment for the third grade and adds one additional, high- 2 er grade each year until such nonpublic school is administering a year- 3 end summative or cumulative assessment for grades three through ten. The 4 phase-in period shall end after the two thousand thirty-two--two thou- 5 sand thirty-three school year. Prior to such cohorts tested using year- 6 end summative or cumulative assessments under subparagraphs (vi) and 7 (vii) of paragraph (a) of this subdivision, such cohorts may be provided 8 with practice and/or sample testing questions to begin familiarizing 9 themselves with standardized testing methodology. The phase-in period 10 shall be applicable to all nonpublic schools, and it shall only be 11 necessary for a nonpublic school to administer year-end summative or 12 cumulative assessments for the phased-in grades, notwithstanding the 13 nonpublic school's past or current administration of such assessments 14 for other grades. 15 (iv) If a nonpublic school meets, or has been deemed pursuant to 16 subparagraph (iii) of this paragraph to have met, the criteria in 17 subparagraph (vi) or (vii) of paragraph (a) of this subdivision, then 18 during the phase-in period of subparagraph (iii) of this paragraph, all 19 affiliated schools shall be deemed to have met such criteria. Affil- 20 iated schools are those with one of the following: the same office of 21 religious and independent school support (ORISS) code under a single 22 basic educational data system (BEDS) code; or the same organization with 23 a different BEDS code in the same location; or the same ORISS code and 24 leadership but may have physical buildings in different locations. 25 During the phase-in period of subparagraph (iii) of this paragraph, a 26 nonpublic school which meets the criteria of subparagraph (vii) of 27 paragraph (a) of this subdivision shall include its affiliated schools 28 when using the results of the year-end summative or cumulative assess- 29 ment to assess educational programming and improve instruction and 30 students' performance on such tests. During the phase-in period of 31 subparagraph (iii) of this paragraph, if a nonpublic school meets the 32 criteria in subparagraph (iii) of paragraph (a) of this subdivision with 33 respect to provisional status then all affiliated schools shall be 34 deemed to have met such criteria. If a nonpublic high school meets the 35 criteria in subparagraph (i) or (vi) of paragraph (a) of this subdivi- 36 sion, then all affiliated middle or elementary schools shall be deemed 37 to have met such criteria. 38 (c) Nothing in this subdivision shall preclude the commissioner from 39 defining by rule or regulation alternative criteria which may also be 40 used to demonstrate that instruction at a nonpublic school is in compli- 41 ance with this section. Compliance with this section may be demonstrated 42 through any one or more of the criteria established in this subdivision 43 and shall thereby qualify as and be finally recognized to be substan- 44 tially equivalent without any further requirements. A nonpublic 45 school's satisfaction of one or more criteria in one school year shall 46 not automatically be deemed satisfaction of such criteria in later 47 school years if such school ceases to satisfy such criteria in such 48 later years. A nonpublic school may elect at any time to select differ- 49 ent criteria. A nonpublic school's omission to satisfy one or more 50 criteria shall not affect a nonpublic school's ability to satisfy anoth- 51 er criteria, or such criteria at a later date. 52 § 23. Special apportionment for salary expenses. 1. Notwithstanding 53 any other provision of law, upon application to the commissioner of 54 education, not sooner than the first day of the second full business 55 week of June 2026 and not later than the last day of the third full 56 business week of June 2026, a school district eligible for an apportion- S. 3006--C 26 A. 3006--C

1 ment pursuant to section 3602 of the education law shall be eligible to 2 receive an apportionment pursuant to this section, for the school year 3 ending June 30, 2026, for salary expenses incurred between April 1 and 4 June 30, 2025 and such apportionment shall not exceed the sum of (a) the 5 deficit reduction assessment of 1990--1991 as determined by the commis- 6 sioner of education, pursuant to paragraph f of subdivision 1 of section 7 3602 of the education law, as in effect through June 30, 1993, plus (b) 8 186 percent of such amount for a city school district in a city with a 9 population in excess of 1,000,000 inhabitants, plus (c) 209 percent of 10 such amount for a city school district in a city with a population of 11 more than 195,000 inhabitants and less than 219,000 inhabitants accord- 12 ing to the latest federal census, plus (d) the net gap elimination 13 adjustment for 2010--2011, as determined by the commissioner of educa- 14 tion pursuant to chapter 53 of the laws of 2010, plus (e) the gap elimi- 15 nation adjustment for 2011--2012 as determined by the commissioner of 16 education pursuant to subdivision 17 of section 3602 of the education 17 law, and provided further that such apportionment shall not exceed such 18 salary expenses. Such application shall be made by a school district, 19 after the board of education or trustees have adopted a resolution to do 20 so and in the case of a city school district in a city with a population 21 in excess of 125,000 inhabitants, with the approval of the mayor of such 22 city. 23 2. The claim for an apportionment to be paid to a school district 24 pursuant to subdivision 1 of this section shall be submitted to the 25 commissioner of education on a form prescribed for such purpose, and 26 shall be payable upon determination by such commissioner that the form 27 has been submitted as prescribed. Such approved amounts shall be payable 28 on the same day in September of the school year following the year in 29 which application was made as funds provided pursuant to subparagraph 4 30 of paragraph b of subdivision 4 of section 92-c of the state finance 31 law, on the audit and warrant of the state comptroller on vouchers 32 certified or approved by the commissioner of education in the manner 33 prescribed by law from moneys in the state lottery fund and from the 34 general fund to the extent that the amount paid to a school district 35 pursuant to this section exceeds the amount, if any, due such school 36 district pursuant to subparagraph 2 of paragraph a of subdivision 1 of 37 section 3609-a of the education law in the school year following the 38 year in which application was made. 39 3. Notwithstanding the provisions of section 3609-a of the education 40 law, an amount equal to the amount paid to a school district pursuant to 41 subdivisions 1 and 2 of this section shall first be deducted from the 42 following payments due the school district during the school year 43 following the year in which application was made pursuant to subpara- 44 graphs 1, 2, 3, 4 and 5 of paragraph a of subdivision 1 of section 45 3609-a of the education law in the following order: the lottery appor- 46 tionment payable pursuant to subparagraph 2 of such paragraph followed 47 by the fixed fall payments payable pursuant to subparagraph 4 of such 48 paragraph and then followed by the district's payments to the teachers' 49 retirement system pursuant to subparagraph 1 of such paragraph, and any 50 remainder to be deducted from the individualized payments due the 51 district pursuant to paragraph b of such subdivision shall be deducted 52 on a chronological basis starting with the earliest payment due the 53 district. 54 § 24. Special apportionment for public pension accruals. 1. Notwith- 55 standing any other provision of law, upon application to the commission- 56 er of education, not later than June 30, 2026, a school district eligi- S. 3006--C 27 A. 3006--C

1 ble for an apportionment pursuant to section 3602 of the education law 2 shall be eligible to receive an apportionment pursuant to this section, 3 for the school year ending June 30, 2026 and such apportionment shall 4 not exceed the additional accruals required to be made by school 5 districts in the 2004--2005 and 2005--2006 school years associated with 6 changes for such public pension liabilities. The amount of such addi- 7 tional accrual shall be certified to the commissioner of education by 8 the president of the board of education or the trustees or, in the case 9 of a city school district in a city with a population in excess of 10 125,000 inhabitants, the mayor of such city. Such application shall be 11 made by a school district, after the board of education or trustees have 12 adopted a resolution to do so and in the case of a city school district 13 in a city with a population in excess of 125,000 inhabitants, with the 14 approval of the mayor of such city. 15 2. The claim for an apportionment to be paid to a school district 16 pursuant to subdivision one of this section shall be submitted to the 17 commissioner of education on a form prescribed for such purpose, and 18 shall be payable upon determination by such commissioner that the form 19 has been submitted as prescribed. Such approved amounts shall be payable 20 on the same day in September of the school year following the year in 21 which application was made as funds provided pursuant to subparagraph 4 22 of paragraph b of subdivision 4 of section 92-c of the state finance 23 law, on the audit and warrant of the state comptroller on vouchers 24 certified or approved by the commissioner of education in the manner 25 prescribed by law from moneys in the state lottery fund and from the 26 general fund to the extent that the amount paid to a school district 27 pursuant to this section exceeds the amount, if any, due such school 28 district pursuant to subparagraph 2 of paragraph a of subdivision 1 of 29 section 3609-a of the education law in the school year following the 30 year in which application was made. 31 3. Notwithstanding the provisions of section 3609-a of the education 32 law, an amount equal to the amount paid to a school district pursuant to 33 subdivisions 1 and 2 of this section shall first be deducted from the 34 following payments due the school district during the school year 35 following the year in which application was made pursuant to subpara- 36 graphs 1, 2, 3, 4 and 5 of paragraph a of subdivision 1 of section 37 3609-a of the education law in the following order: the lottery appor- 38 tionment payable pursuant to subparagraph 2 of such paragraph followed 39 by the fixed fall payments payable pursuant to subparagraph 4 of such 40 paragraph and then followed by the district's payments to the teachers' 41 retirement system pursuant to subparagraph 1 of such paragraph, and any 42 remainder to be deducted from the individualized payments due the 43 district pursuant to paragraph b of such subdivision shall be deducted 44 on a chronological basis starting with the earliest payment due the 45 district. 46 § 24-a. Subdivision a of section 5 of chapter 121 of the laws of 1996 47 authorizing the Roosevelt union free school district to finance deficits 48 by the issuance of serial bonds, as amended by section 36-a of part A of 49 chapter 56 of the laws of 2024, is amended to read as follows: 50 a. Notwithstanding any other provisions of law, upon application to 51 the commissioner of education submitted not sooner than April first and 52 not later than June thirtieth of the applicable school year, the Roose- 53 velt union free school district shall be eligible to receive an appor- 54 tionment pursuant to this chapter for salary expenses, including related 55 benefits, incurred between April first and June thirtieth of such school 56 year. Such apportionment shall not exceed: for the 1996-97 school year S. 3006--C 28 A. 3006--C

1 through the [ 2024-25 ] 2025-26 school year, four million dollars 2 ($4,000,000); for the [ 2025-26 ] 2026-27 school year, three million 3 dollars ($3,000,000); for the [ 2026-27 ] 2027-28 school year, two million 4 dollars ($2,000,000); for the [ 2027-28 ] 2028-29 school year, one million 5 dollars ($1,000,000); and for the [ 2028-29 ] 2029-30 school year, zero 6 dollars. Such annual application shall be made after the board of 7 education has adopted a resolution to do so with the approval of the 8 commissioner of education. 9 § 25. The amounts specified in this section shall be a set-aside from 10 the state funds which each such district is receiving from the total 11 foundation aid: 12 1. for the development, maintenance or expansion of magnet schools or 13 magnet school programs for the 2025--2026 school year. For the city 14 school district of the city of New York there shall be a set-aside of 15 foundation aid equal to forty-eight million one hundred seventy-five 16 thousand dollars ($48,175,000) including five hundred thousand dollars 17 ($500,000) for the Andrew Jackson High School; for the Buffalo city 18 school district, twenty-one million twenty-five thousand dollars 19 ($21,025,000); for the Rochester city school district, fifteen million 20 dollars ($15,000,000); for the Syracuse city school district, thirteen 21 million dollars ($13,000,000); for the Yonkers city school district, 22 forty-nine million five hundred thousand dollars ($49,500,000); for the 23 Newburgh city school district, four million six hundred forty-five thou- 24 sand dollars ($4,645,000); for the Poughkeepsie city school district, 25 two million four hundred seventy-five thousand dollars ($2,475,000); for 26 the Mount Vernon city school district, two million dollars ($2,000,000); 27 for the New Rochelle city school district, one million four hundred ten 28 thousand dollars ($1,410,000); for the Schenectady city school district, 29 one million eight hundred thousand dollars ($1,800,000); for the Port 30 Chester city school district, one million one hundred fifty thousand 31 dollars ($1,150,000); for the White Plains city school district, nine 32 hundred thousand dollars ($900,000); for the Niagara Falls city school 33 district, six hundred thousand dollars ($600,000); for the Albany city 34 school district, three million five hundred fifty thousand dollars 35 ($3,550,000); for the Utica city school district, two million dollars 36 ($2,000,000); for the Beacon city school district, five hundred sixty- 37 six thousand dollars ($566,000); for the Middletown city school 38 district, four hundred thousand dollars ($400,000); for the Freeport 39 union free school district, four hundred thousand dollars ($400,000); 40 for the Greenburgh central school district, three hundred thousand 41 dollars ($300,000); for the Amsterdam city school district, eight 42 hundred thousand dollars ($800,000); for the Peekskill city school 43 district, two hundred thousand dollars ($200,000); and for the Hudson 44 city school district, four hundred thousand dollars ($400,000). 45 2. Notwithstanding any inconsistent provision of law to the contrary, 46 a school district setting aside such foundation aid pursuant to this 47 section may use such set-aside funds for: (a) any instructional or 48 instructional support costs associated with the operation of a magnet 49 school; or (b) any instructional or instructional support costs associ- 50 ated with implementation of an alternative approach to promote diversity 51 and/or enhancement of the instructional program and raising of standards 52 in elementary and secondary schools of school districts having substan- 53 tial concentrations of minority students. 54 3. The commissioner of education shall not be authorized to withhold 55 foundation aid from a school district that used such funds in accordance 56 with this paragraph, notwithstanding any inconsistency with a request S. 3006--C 29 A. 3006--C

1 for proposals issued by such commissioner for the purpose of attendance 2 improvement and dropout prevention for the 2025--2026 school year, and 3 for any city school district in a city having a population of more than 4 one million, the set-aside for attendance improvement and dropout 5 prevention shall equal the amount set aside in the base year. For the 6 2025--2026 school year, it is further provided that any city school 7 district in a city having a population of more than one million shall 8 allocate at least one-third of any increase from base year levels in 9 funds set aside pursuant to the requirements of this section to communi- 10 ty-based organizations. Any increase required pursuant to this section 11 to community-based organizations must be in addition to allocations 12 provided to community-based organizations in the base year. 13 4. For the purpose of teacher support for the 2025--2026 school year: 14 for the city school district of the city of New York, sixty-two million 15 seven hundred seven thousand dollars ($62,707,000); for the Buffalo city 16 school district, one million seven hundred forty-one thousand dollars 17 ($1,741,000); for the Rochester city school district, one million seven- 18 ty-six thousand dollars ($1,076,000); for the Yonkers city school 19 district, one million one hundred forty-seven thousand dollars 20 ($1,147,000); and for the Syracuse city school district, eight hundred 21 nine thousand dollars ($809,000). All funds made available to a school 22 district pursuant to this section shall be distributed among teachers 23 including prekindergarten teachers and teachers of adult vocational and 24 academic subjects in accordance with this section and shall be in addi- 25 tion to salaries heretofore or hereafter negotiated or made available; 26 provided, however, that all funds distributed pursuant to this section 27 for the current year shall be deemed to incorporate all funds distrib- 28 uted pursuant to former subdivision 27 of section 3602 of the education 29 law for prior years. In school districts where the teachers are repres- 30 ented by certified or recognized employee organizations, all salary 31 increases funded pursuant to this section shall be determined by sepa- 32 rate collective negotiations conducted pursuant to the provisions and 33 procedures of article 14 of the civil service law, notwithstanding the 34 existence of a negotiated agreement between a school district and a 35 certified or recognized employee organization. 36 § 26. Support of public libraries. The moneys appropriated for the 37 support of public libraries by a chapter of the laws of 2025 enacting 38 the aid to localities budget shall be apportioned for the 2025--2026 39 state fiscal year in accordance with the provisions of sections 271, 40 272, 273, 282, 284, and 285 of the education law as amended by the 41 provisions of such chapter and the provisions of this section, provided 42 that library construction aid pursuant to section 273-a of the education 43 law shall not be payable from the appropriations for the support of 44 public libraries and provided further that no library, library system or 45 program, as defined by the commissioner of education, shall receive less 46 total system or program aid than it received for the year 2001--2002 47 except as a result of a reduction adjustment necessary to conform to the 48 appropriations for support of public libraries. 49 Notwithstanding any other provision of law to the contrary the moneys 50 appropriated for the support of public libraries for the year 2025--2026 51 by a chapter of the laws of 2025 enacting the aid to localities budget 52 shall fulfill the state's obligation to provide such aid and, pursuant 53 to a plan developed by the commissioner of education and approved by the 54 director of the budget, the aid payable to libraries and library systems 55 pursuant to such appropriations shall be reduced proportionately to S. 3006--C 30 A. 3006--C

1 assure that the total amount of aid payable does not exceed the total 2 appropriations for such purpose. 3 § 27. 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, or 9 part 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 § 28. This act shall take effect immediately, and shall be deemed to 15 have been in full force and effect on and after April 1, 2025, provided, 16 however, that: 17 1. Sections one, two, three, four, four-a, five, six, seven, eight, 18 nine, ten, ten-a, ten-b, ten-c, ten-d, ten-e, twelve, thirteen, four- 19 teen, fifteen, seventeen, twenty-one and twenty-five of this act shall 20 take effect July 1, 2025; and 21 2. The amendments to chapter 756 of the laws of 1992 made by sections 22 eighteen and nineteen of this act shall not affect the repeal of such 23 chapter and shall be deemed repealed therewith.

24 PART B

25 Section 1. The education law is amended by adding a new section 915-a 26 to read as follows: 27 § 915-a. Universal free school meals. 1. The department shall require 28 all school districts, charter schools and non-public schools in the 29 state that participate in the national school lunch program or school 30 breakfast program as provided in the Richard B. Russell National School 31 Lunch Act and the Child Nutrition Act, as amended, to serve breakfast 32 and lunch at no cost to the student. School districts, charter schools 33 and non-public schools shall maximize federal reimbursement for school 34 breakfast and lunch programs by adopting Provision 2, the federal Commu- 35 nity Eligibility Provision, or any other provision under such Act, the 36 National School Lunch Act or the National Child Nutrition Act that, in 37 the opinion of the department, maximizes federal funding for meals 38 served in such programs. Provided that school food authorities that do 39 not qualify as a single entity to participate in the community eligibil- 40 ity provision shall be required to group schools within the school food 41 authority, to the extent possible, for purposes of maximizing partic- 42 ipation in the community eligibility provision, and provided further 43 that school food authorities shall reapply annually for the community 44 eligibility provision program in the event that doing so would result in 45 a higher percentage of meals being reimbursed at the federal reimburse- 46 ment rate for a free meal. 47 2. Notwithstanding any provision of law, rule or regulation to the 48 contrary, for the two thousand twenty-five--two thousand twenty-six 49 school year and each school year thereafter, for each breakfast and 50 lunch meal served, the department shall reimburse the school food 51 authority the difference between (a) the combined state and federal 52 reimbursement rate for a reduced-price or paid meal, respectively, for 53 the current school year and (b) the combined state and federal 54 reimbursement rate for a free meal for the current school year, provided S. 3006--C 31 A. 3006--C

1 that the total reimbursement rate for each meal served shall equal the 2 combined state and federal reimbursement rate for a free meal for the 3 current school year. 4 3. The department, in consultation with the office of temporary and 5 disability assistance, shall promulgate any rule or regulation needed 6 for school districts, charter schools and non-public schools to promote 7 the supplemental nutrition assistance program to a student or person in 8 parental relation to a student by providing either application assist- 9 ance or a direct referral to an outreach partner identified to the 10 department by the office of temporary and disability assistance to maxi- 11 mize the number of students directly certified for free school meals. 12 4. In addition to fulfilling any other applicable state and federal 13 requirements, the department shall provide technical assistance to 14 assist school districts, charter schools, and non-public schools in the 15 transition to universal school meals to ensure successful program oper- 16 ations and to maximize federal funding, including but not limited to the 17 following: 18 (a) Assisting school food authorities with one or more schools quali- 19 fying for the community eligibility provision in meeting any state and 20 federal requirements necessary in order to maximize reimbursement 21 through the community eligibility provision, including assisting such 22 school food authorities in maximizing participation in the community 23 eligibility provision. 24 (b) If a school food authority is ineligible to participate in and 25 receive reimbursement through the community eligibility provision, 26 assisting the school food authority in achieving and maximizing eligi- 27 bility and, if that is not feasible, assisting the school food authority 28 in determining the viability of using Provision 2 or other special 29 federal provisions available to schools to maximize federal reimburse- 30 ment. 31 5. School districts, charter schools, and non-public schools shall 32 maximize the number of students eligible for free meals by conducting 33 the Direct Certification Matching Process at a minimum of three times 34 per year, designating children as "Other Source Categorically Eligible", 35 as defined by federal regulations, or, for schools not participating in 36 the Community Eligibility Provision or Provision 2, by annually collect- 37 ing the free and reduced-price meal application. 38 § 2. Section 925 of the education law is REPEALED. 39 § 3. This act shall take effect July 1, 2025.

40 PART C

41 Section 1. The education law is amended by adding a new section 2803 42 to read as follows: 43 § 2803. Use of internet-enabled devices during the school day. 1. For 44 purposes of this section: 45 (a) "Internet-enabled devices" shall mean and include any smartphone, 46 tablet, smartwatch, or other device capable of connecting to the inter- 47 net and enabling the user to access content on the internet, including 48 social media applications; provided, however, that "internet-enabled 49 devices" shall not include: 50 (i) non-internet-enabled devices such as cellular phones or other 51 communication devices not capable of connecting to the internet or 52 enabling the user to access content on the internet; or S. 3006--C 32 A. 3006--C

1 (ii) internet-enabled devices supplied by the school district, charter 2 school, or board of cooperative educational services that are used for 3 an educational purpose. 4 (b) "School day" shall mean the entirety of every instructional day as 5 required by subdivision seven of section thirty-six hundred four of this 6 chapter during all instructional time and non-instructional time, 7 including but not limited to homeroom periods, lunch, recess, study 8 halls, and passing time. 9 (c) "School grounds" shall mean in or on or within any building, 10 structure, athletic playing field, playground, or land contained within 11 the real property boundary line of a district elementary, intermediate, 12 junior high, vocational, or high school, a charter school, or a board of 13 cooperative educational services facility. 14 2. Notwithstanding paragraph b of subdivision one of section twenty- 15 eight hundred fifty-four of this chapter, each school district, charter 16 school, and board of cooperative educational services shall adopt a 17 written policy prohibiting the use of internet-enabled devices by 18 students during the school day anywhere on school grounds. Each school 19 district, charter school, and board of cooperative educational services 20 shall consult local stakeholders, including but not limited to the 21 employee organization representing each bargaining unit within the 22 school building, parents, and students, in the development of such poli- 23 cy prior to its adoption. 24 3. The policy adopted and implemented pursuant to subdivision two of 25 this section shall include one or more methods for persons in parental 26 relation to a student to contact the student during the school day and 27 provide for written notification to such persons in parental relation to 28 a student of these methods at the beginning of each school year and upon 29 enrollment. 30 4. The policy adopted and implemented pursuant to subdivision two of 31 this section shall include one or more methods for on-site storage where 32 students may store their internet-enabled devices during the school day, 33 which may include student lockers. 34 5. (a) The policy adopted and implemented pursuant to subdivision two 35 of this section may authorize student use of an internet-enabled device 36 during the school day on school grounds: 37 (i) if authorized by a teacher, principal, or the school district, 38 charter school, or board of cooperative educational services for a 39 specific educational purpose; 40 (ii) where necessary for the management of a student's healthcare; 41 (iii) in the event of an emergency; 42 (iv) for translation services; 43 (v) on a case-by-case basis, upon review and determination by a school 44 psychologist, school social worker, or school counselor, for a student 45 caregiver who is routinely responsible for the care and wellbeing of a 46 family member; or 47 (vi) where required by law. 48 (b) The policy may not prohibit a student's use of an internet-enabled 49 device where such use is included in the student's: 50 (i) individualized education program; or 51 (ii) plan developed pursuant to section five hundred four of the 52 federal rehabilitation act of 1973, 29 U.S.C. 794. 53 6. No later than August first, two thousand twenty-five, each school 54 district, charter school, and board of cooperative educational services 55 shall adopt and publish in a clearly visible and accessible location on 56 its website the internet-enabled device policy established pursuant to S. 3006--C 33 A. 3006--C

1 subdivision two of this section. Translation of such policy into any of 2 the twelve most common non-English languages spoken by limited-English 3 proficient individuals in the state, based on the data in the most 4 recent American community survey published by the United States census 5 bureau, shall be provided upon request by a student or persons in 6 parental relation to a student. 7 7. (a) No later than September first, two thousand twenty-six, and 8 each September first thereafter, each school district, charter school, 9 and board of cooperative educational services shall publish an annual 10 report on its website detailing enforcement of the policy within the 11 district, charter school, or board of cooperative educational services 12 in the prior school year, including non-identifiable demographic data of 13 students who have faced disciplinary action for non-compliance and anal- 14 ysis of any demographic disparities in enforcement of the policy. If a 15 statistically significant disparate enforcement impact is identified, 16 such report shall include a mitigation action plan. 17 (b) Each school district, charter school, and board of cooperative 18 educational services shall not permit the suspension of a student if the 19 sole grounds for the suspension is that the student accessed an inter- 20 net-enabled device in violation of the policy adopted and implemented 21 pursuant to subdivision two of this section. 22 § 2. This act shall take effect immediately.

23 PART D

24 Section 1. Section 666 of the education law is REPEALED. 25 § 2. Paragraph a of subdivision 2 of section 667-c of the education 26 law, as amended by section 1 of part E of chapter 56 of the laws of 27 2022, is amended to read as follows: 28 a. for students defined in paragraph a of subdivision one of this 29 section, a part-time student is one who: (i) is enrolled [ as a first- 30 time freshman during the two thousand six--two thousand seven academic 31 year or thereafter ] at a college or university within the state univer- 32 sity, including a statutory or contract college, a community college 33 established pursuant to article one hundred twenty-six of this chapter, 34 the city university of New York, or a non-profit college or university 35 incorporated by the regents or by the legislature; 36 (ii) is enrolled for at least [ six ] three but less than twelve semes- 37 ter hours, or the equivalent, per semester in an approved undergraduate 38 degree program; and 39 (iii) has a cumulative grade-point average of at least 2.00. 40 § 3. Section 667-c-1 of the education law is REPEALED. 41 § 4. Paragraph c of subdivision 5 of section 610 of the education law, 42 as added by chapter 425 of the laws of 1988, is amended to read as 43 follows: 44 c. Any semester, quarter or term of attendance during which a student 45 receives an award for part-time study pursuant to this section shall be 46 counted as one-half of a semester, quarter or term, as the case may be, 47 toward the maximum term of eligibility for tuition assistance awards 48 pursuant to [ sections six hundred sixty-six and ] section six hundred 49 sixty-seven of this chapter. 50 § 5. Subdivision 2 of section 667 of the education law, as amended by 51 chapter 376 of the laws of 2019, is amended to read as follows: 52 2. Duration. No undergraduate shall be eligible for more than four 53 academic years of study, or five academic years if the program of study 54 normally requires five years. Students enrolled in a program of remedial S. 3006--C 34 A. 3006--C

1 study, approved by the commissioner in an institution of higher educa- 2 tion and intended to culminate in a degree in undergraduate study shall, 3 for purposes of this section, be considered as enrolled in a program of 4 study normally requiring five years. An undergraduate student enrolled 5 in an eligible two year program of study approved by the commissioner 6 shall be eligible for no more than three academic years of study. An 7 undergraduate student enrolled in an approved two or four-year program 8 of study approved by the commissioner who must transfer to another 9 institution as a result of permanent college closure shall be eligible 10 for up to two additional semesters, or their equivalent, to the extent 11 credits necessary to complete [ his or her ] the student's program of 12 study were deemed non-transferable from the closed institution or were 13 deemed not applicable to such student's program of study by the new 14 institution. Any semester, quarter, or term of attendance during which 15 a student receives any award under this article, after the effective 16 date of the former scholar incentive program and prior to academic year 17 nineteen hundred eighty-nine--nineteen hundred ninety, shall be counted 18 toward the maximum term of eligibility for tuition assistance under this 19 section, except that any semester, quarter or term of attendance during 20 which a student received an award pursuant to section six hundred 21 sixty-six of this subpart shall be counted as one-half of a semester, 22 quarter or term, as the case may be, toward the maximum term of eligi- 23 bility under this section. Any semester, quarter or term of attendance 24 during which a student received an award pursuant to section six hundred 25 sixty-seven-a of this subpart shall not be counted toward the maximum 26 term of eligibility under this section. 27 § 6. This act shall take effect immediately and shall apply to academ- 28 ic years 2025-2026 and thereafter.

29 PART E

30 Section 1. Subdivision 2 of section 669-h of the education law, as 31 amended by section 1 of part G of chapter 56 of the laws of 2022, is 32 amended to read as follows: 33 2. Amount. Within amounts appropriated therefor and based on avail- 34 ability of funds, awards shall be granted [ beginning with the two thou- 35 sand seventeen--two thousand eighteen academic year and thereafter ] to 36 applicants that the corporation has determined are eligible to receive 37 such awards. The corporation shall grant such awards in an amount up to 38 [ five thousand five hundred dollars or ] actual tuition[ , whichever is 39 less ]; provided, however, (a) a student who receives educational grants 40 and/or scholarships that cover the student's full cost of attendance 41 shall not be eligible for an award under this program; and (b) an award 42 under this program shall be applied to tuition after the application of 43 payments received under the tuition assistance program pursuant to 44 section six hundred sixty-seven of this subpart, tuition credits pursu- 45 ant to section six hundred eighty-nine-a of this article, federal Pell 46 grant pursuant to section one thousand seventy of title twenty of the 47 United States code, et seq., and any other program that covers the cost 48 of attendance unless exclusively for non-tuition expenses, and the award 49 under this program shall be reduced in the amount equal to such 50 payments, provided that the combined benefits do not exceed [ five thou- 51 sand five hundred dollars. Upon notification of an award under this 52 program, the institution shall defer the amount of tuition. Notwith- 53 standing paragraph h of subdivision two of section three hundred fifty- 54 five and paragraph (a) of subdivision seven of section six thousand two S. 3006--C 35 A. 3006--C

1 hundred six of this chapter, and any other law, rule or regulation to 2 the contrary, ] the resident undergraduate tuition charged by [ the insti- 3 tution to recipients of an award shall not exceed the tuition rate 4 established by the institution for the two thousand sixteen--two thou- 5 sand seventeen academic year provided, however, that in the two thousand 6 twenty-two--two thousand twenty-three academic year and every year ther- 7 eafter, the undergraduate tuition charged by the institution to recipi- 8 ents of an award shall be reset to equal the tuition rate established by 9 the institution for the forthcoming academic year, provided further that 10 the tuition credit calculated pursuant to section six hundred eighty- 11 nine-a of this article shall be applied toward the tuition rate charged 12 for recipients of an award under this program. Provided further that ] 13 the state university of New York [ and the city university of New York 14 shall provide an additional tuition credit to students receiving an 15 award to cover the remaining cost of tuition ]. 16 § 2. This act shall take effect immediately and shall be applicable to 17 academic years 2025-2026 and thereafter.

18 PART F

19 Section 1. The education law is amended by adding a new section 6311 20 to read as follows: 21 § 6311. New York opportunity promise scholarship. 1. Eligibility. A 22 New York opportunity promise scholarship shall be awarded to an appli- 23 cant who meets all of the following conditions: 24 (a) is at least twenty-five years of age or older, but in no case more 25 than fifty-five years of age, as of January first of the calendar year 26 for the semester for which the applicant makes initial application; 27 (b) has applied for a New York state tuition assistance program award 28 pursuant to section six hundred sixty-seven of this chapter, a federal 29 Pell grant pursuant to section 1070 of title 20 of the United States 30 code, et. seq., and any other applicable financial aid; 31 (c) is matriculated at a community college of the state university of 32 New York or the city university of New York, as defined in subdivision 33 two of section sixty-three hundred one of this article or subdivision 34 four of section sixty-two hundred two of this title, respectively, in an 35 approved program directly leading to an associate's degree in a high-de- 36 mand field; provided that for the two thousand twenty-five -- two thou- 37 sand twenty-six academic year, such fields shall include but not be 38 limited to advanced manufacturing, technology, cybersecurity, engineer- 39 ing, artificial intelligence, nursing and allied health professions, 40 green and renewable energy, and pathways to teaching in shortage areas, 41 provided further that such fields may be updated annually thereafter by 42 the department of labor no later than one hundred eighty days prior to 43 the first start date of the fall term of such community colleges, and 44 provided further that the eligibility of such approved program estab- 45 lished in the semester for which the applicant makes initial application 46 shall continue; 47 (d) is eligible for the payment of tuition and fees at a rate no 48 greater than that imposed for resident students in community colleges; 49 and 50 (e) has not already obtained any postsecondary degree, provided that 51 nothing in this paragraph shall be construed to prohibit the eligibility 52 of a student who is already enrolled in an eligible associate degree 53 program on the effective date of this section and who meets all the 54 other eligibility requirements of this subdivision. S. 3006--C 36 A. 3006--C

1 2. Amount. Within amounts appropriated therefor, and subject to avail- 2 ability of funds, awards shall be granted for the two thousand twenty- 3 five -- two thousand twenty-six academic year and thereafter to appli- 4 cants who are determined to be eligible to receive such awards. Such 5 awards shall be calculated on a per term basis prior to the start of 6 each term the applicant is successfully enrolled and shall not exceed 7 the positive difference, if any, of (a) the sum of actual tuition, fees, 8 books, and applicable supplies charged to the applicant and approved by 9 the applicable community college, less (b) the sum of all payments 10 received by the applicant from all sources of financial aid received by 11 the applicant with the exception of aid received pursuant to federal 12 work-study programs authorized under sections 1087-51 through 1087-58 of 13 title 20 of the United States code and educational loans taken by the 14 applicant or guardian. 15 3. Additional provisions. An eligible recipient shall complete at 16 least six credits per semester, for a total of at least twelve credits 17 per academic year, in an approved program of study. An eligible recipi- 18 ent shall be continuously enrolled without a gap of more than one 19 academic year, provided that such duration may be extended for an allow- 20 able interruption of study including, but not limited to, death of a 21 family member, medical leave, military service, and parental leave. 22 Notwithstanding any inconsistent provision of this section, if an appli- 23 cant fails to meet the eligibility criteria of this section at any 24 point, no further awards shall be made to the applicant. 25 4. Conditions. (a) An eligible recipient shall continue to make satis- 26 factory academic progress in order to maintain continued eligibility for 27 an award pursuant to this section. 28 (b) Each campus that enrolls students pursuant to this section shall 29 take steps consistent with established policy to maximize the award of 30 credit for prior learning for participating students. 31 (c) No student shall receive an award pursuant to this section for 32 greater than ten semesters. 33 (d) A student who earns college credit pursuant to this section shall 34 be entitled to transfer such credit to another state university of New 35 York or city university of New York campus consistent with transfer 36 policies established by the state university of New York or city univer- 37 sity of New York. 38 5. Reporting. By September first, two thousand twenty-six, and by 39 September first of each year thereafter, the chancellor of the state 40 university of New York and the chancellor of the city university of New 41 York shall each submit a report to the governor, the speaker of the 42 assembly, and the temporary president of the senate, including but not 43 limited to the following information: 44 (a) enrollment data by full and part-time status; 45 (b) retention and completion rates by full and part-time status; 46 (c) barriers to student participation; 47 (d) demographic data related to the program; 48 (e) average prior learning and transfer credit awarded; 49 (f) the total amount of funds awarded and the average award per 50 student; and 51 (g) post-completion outcomes including transfer, employment, and 52 wages, as applicable. 53 § 2. This act shall take effect immediately.

54 PART G S. 3006--C 37 A. 3006--C

1 Intentionally Omitted

2 PART H

3 Intentionally Omitted

4 PART I

5 Intentionally Omitted

6 PART J

7 Intentionally Omitted

8 PART K

9 Intentionally Omitted

10 PART L

11 Section 1. Paragraph (a) of subdivision 1 of section 33 of the private 12 housing finance law, as amended by chapter 229 of the laws of 1989, is 13 amended to read as follows: 14 (a) Upon the consent of the local legislative body of any municipality 15 in which a project is or is to be located, the real property in a 16 project shall be exempt from local and municipal taxes, other than 17 assessments for local improvements, to the extent of all or part of the 18 value of the property included in such project which represents an 19 increase over the assessed valuation of the real property, both land and 20 improvements, acquired for the project at the time of its acquisition by 21 the limited-profit housing company, provided, however, that the real 22 property in a project acquired for purposes of rehabilitation shall be 23 exempt to the extent of all or part of the value of the property 24 included in such project, and further provided that the amount of such 25 taxes to be paid shall not be less than ten per centum of the annual 26 shelter rent or carrying charges of such project except that for 27 projects located or to be located in a city of a population of one 28 million or more, [ upon the consent of the local legislative body of the 29 municipality, the amount of such taxes to be paid may be set at not less 30 than (i) the taxes payable with respect to the real property in such 31 project with respect to the year nineteen hundred seventy-three, or, 32 (ii) if such project was not occupied in such year, not less than ten 33 per centum of the annual shelter rent or carrying charges first estab- 34 lished pursuant to subdivision one of section thirty-one of this arti- 35 cle ] the amount of such taxes shall be no more than five per centum of 36 the annual shelter rent or carrying charges of the project. Upon the 37 consent of the local legislative body of a municipality, other than a 38 city with a population of one million or more, in which the project is 39 located, the amount of such taxes may be further reduced to five per 40 centum or less of the annual shelter rent or carrying charges of the 41 project. Any such granted consent to reduce the amount of such taxes S. 3006--C 38 A. 3006--C

1 shall expire every ten years. If such authorization is not renewed, the 2 rate of taxation shall revert to the level established before the 3 consent was granted . Shelter rent shall mean the total rents received 4 from the occupants of a project less the cost of providing to the occu- 5 pants electricity, gas, heat and other utilities. Total rents shall 6 include rent supplements and subsidies received from the federal govern- 7 ment, the state or a municipality on behalf of such occupants[ , ] but 8 shall not include interest reduction payments pursuant to subdivision 9 (a) of section two hundred one of the Federal Housing and Urban Develop- 10 ment Act of nineteen hundred sixty-eight. The tax exemption shall oper- 11 ate and continue so long as the mortgage loans of the company, including 12 any additional mortgage loan the proceeds of which are used primarily 13 for the residential portion of the project, which additional loan is 14 approved by the commissioner or the supervising agency, are outstanding. 15 § 2. Paragraph (c) of subdivision 1 of section 33 of the private hous- 16 ing finance law, as amended by chapter 229 of the laws of 1989, is 17 amended to read as follows: 18 (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 19 subdivision, the real property of a state urban development corporation 20 project acquired, owned, constructed, managed or operated by a company 21 incorporated pursuant to the not-for-profit corporation law and this 22 article shall be entitled to all the benefits provided by section four 23 hundred twenty-two of the real property tax law. The real property of a 24 state urban development corporation project, other than a state urban 25 development corporation project acquired, owned, constructed, managed or 26 operated by a company incorporated pursuant to the not-for-profit corpo- 27 ration law and this article, shall be exempt from all local and munici- 28 pal taxes, other than assessments for local improvements, to the extent 29 of the value of the property included in such project as represents an 30 increase over the assessed valuation of the real property, both land and 31 improvements, acquired for the project on the date of its acquisition by 32 the limited-profit housing company, provided that the amount of such 33 taxes to be paid shall not be less than ten per centum of the annual 34 shelter rent or carrying charges of such project, as defined in para- 35 graph (a) hereof , except that in a city with a population of one million 36 or more, the amount of such taxes shall be no more than five per centum 37 of the annual shelter rent or carrying charges of the project. Upon the 38 consent of the local legislative body of the municipality, other than a 39 city with a population of one million or more, in which the project is 40 located, the amount of such taxes may be further reduced to five per 41 centum or less of the annual shelter rent or carrying charges of the 42 project. Any such granted consent to reduce the amount of such taxes 43 shall expire every ten years. If such authorization is not renewed, the 44 rate of taxation shall revert to the level established before the 45 consent was granted . The tax exemption shall operate and continue so 46 long as the mortgage loans of such limited profit housing company, 47 including any additional mortgage loan the proceeds of which are used 48 primarily for the residential portion of the project, which additional 49 loan is approved by the commissioner or the supervising agency, are 50 outstanding and the project is continued to be operated as a limited- 51 profit housing project. If a state urban development corporation project 52 qualifying for tax exemption pursuant to this paragraph is sold, with 53 the approval of the commissioner, to another limited-profit housing 54 company, such successor company shall be entitled to all the benefits of 55 this paragraph. In the event that such sale is to a company incorporated 56 pursuant to the not-for-profit corporation law and this article, such S. 3006--C 39 A. 3006--C

1 successor company shall be entitled to all the benefits provided by 2 section four hundred twenty-two of the real property tax law. 3 § 3. Paragraph (d) of subdivision 1 of section 33 of the private hous- 4 ing finance law, as amended by chapter 744 of the laws of 1977, is 5 amended to read as follows: 6 (d) Notwithstanding the provisions of paragraphs (a) and (b) of this 7 subdivision, when a project is financed with a mortgage loan pursuant to 8 this article or article three of this chapter and (i) there is a partic- 9 ipation, new loan or investment pursuant to section twenty-three-b of 10 this article or (ii) such mortgage loan is assigned, modified or satis- 11 fied pursuant to section twenty-three-a or forty-four-b or subdivision 12 twenty-two-a of section six hundred fifty-four of this chapter, the real 13 property of the project shall be exempt from all local and municipal 14 taxes, other than assessments for local improvements, to the extent of 15 the value of the real property included in such project which represents 16 an increase over the assessed valuation of the real property, both land 17 and improvements, acquired for the project on the date of its original 18 acquisition for the project by the original mortgagor under a mortgage 19 loan pursuant to this article or article three of this chapter, provided 20 that the amount of taxes to be paid on the project shall not be less 21 than ten per centum of the annual shelter rent or carrying charges of 22 such project, as defined in paragraph (a) of this subdivision , except 23 that in a city with a population of one million or more, the amount of 24 such taxes shall be no more than five per centum of the annual shelter 25 rent or carrying charges of the project. Upon the consent of the local 26 legislative body of the municipality, other than a city with a popu- 27 lation of one million or more, in which the project is located, the 28 amount of such taxes may be further reduced to five per centum or less 29 of the annual shelter rent or carrying charges of the project. Any such 30 granted consent to reduce the amount of such taxes shall expire every 31 ten years. If such authorization is not renewed, the rate of taxation 32 shall revert to the level established before the consent was granted . 33 Such tax exemption shall commence in each instance from the date when 34 the project becomes subject to a mortgage insured by the federal govern- 35 ment and shall operate and continue so long as a mortgage on such 36 project is insured or held by the federal government or so long as the 37 project is thereafter owned by the federal government or so long as any 38 residual indebtedness is outstanding, whichever is longer. When there is 39 a participation, new loan or investment pursuant to section twenty- 40 three-b of this article, such participation, new loan or investment 41 shall be deemed to be the equivalent of a federally insured mortgage for 42 purposes of this paragraph. Nothing contained in this paragraph shall be 43 construed to limit or otherwise impair the benefits available to any 44 company eligible for exemption from taxation pursuant to section thir- 45 ty-one or section thirty-six-a of this article, section four hundred 46 twenty-two or section four hundred sixty-seven-c of the real property 47 tax law, or section fifty-eight of the public housing law. The foregoing 48 shall not be deemed to authorize any company to receive the benefits of 49 any exemption from taxation in contravention of the provisions of 50 section two of article eighteen of the constitution. 51 § 4. Subdivision 4 of section 33 of the private housing finance law, 52 as amended by chapter 229 of the laws of 1989, is amended to read as 53 follows: 54 4. Notwithstanding the provisions of subdivision one hereof, when a 55 mutual company is organized under this article to facilitate the acqui- 56 sition of a building by residents thereof, the amount of local and S. 3006--C 40 A. 3006--C

1 municipal taxes, other than assessments for local improvements, to be 2 paid on the real property included in such project, both land and 3 improvements, shall not exceed twenty per centum of the annual shelter 4 rent or carrying charges of such project, as defined in paragraph (a) of 5 subdivision one hereof; provided, however, that where such acquisition 6 of a building by residents thereof involves the financing of rehabili- 7 tation or other improvement as well as acquisition, upon the consent of 8 the local legislative body of the municipality in which the project is 9 located the amount of such taxes may be further reduced provided that 10 such amount shall not be less than ten per centum of the annual shelter 11 rent or carrying charges of the project, as defined in paragraph (a) of 12 subdivision one hereof; or the company may in lieu of requesting such 13 consent apply for the benefits of the local law, if any, enacted pursu- 14 ant to section four hundred eighty-nine of the real property tax law. 15 Notwithstanding any other provision of this subdivision, in a city with 16 a population of one million or more, the amount of such taxes shall be 17 no more than five per centum of the annual shelter rent or carrying 18 charges of the project. Upon the consent of the local legislative body 19 of the municipality, other than a city with a population of one million 20 or more, in which the project is located, the amount of such taxes may 21 be further reduced to five per centum or less of the annual shelter rent 22 or carrying charges of the project. Any such granted consent to reduce 23 the amount of such taxes shall expire every ten years. If such authori- 24 zation is not renewed, the rate of taxation shall revert to the level 25 established before the consent was granted. Such tax exemption, if any, 26 granted pursuant to this article shall operate and continue so long as a 27 loan made under this article or any subsequent loan approved by the 28 commissioner or the supervising agency to enhance the residential 29 portion of the project and the project is continued to be operated for 30 the purposes set forth in this article is outstanding. 31 § 5.Section 93 of the private housing finance law is amended by adding 32 a new subdivision 8 to read as follows: 33 8. Notwithstanding any other provision of this section, the maximum 34 combined local and municipal taxes, other than assessments for local 35 improvements, that a project operated by a housing company established 36 pursuant to this article, and which is eligible for a tax exemption 37 pursuant to any other subdivision of this section, shall be required to 38 pay in a city with a population of one million or more shall be no more 39 than the equivalent of five per centum of the annual shelter rent or 40 carrying charges of such project. Upon the consent of the local legisla- 41 tive body of the municipality, other than a city with a population of 42 one million or more, in which the project is located, the amount of such 43 taxes may be further reduced to five per centum or less of the annual 44 shelter rent or carrying charges of the project. Any such granted 45 consent to reduce the amount of such taxes shall expire every ten years. 46 If such authorization is not renewed, the rate of taxation shall revert 47 to the level established before the consent was granted. For the 48 purposes of this subdivision, "shelter rent" shall have the same meaning 49 as such term is defined to have in paragraph a of subdivision one of 50 section thirty-three of this chapter. 51 § 6. This act shall take effect immediately.

52 PART M

53 Intentionally Omitted S. 3006--C 41 A. 3006--C

1 PART N

2 Section 1. Notwithstanding any other provision of law, the housing 3 trust fund corporation may provide, for purposes of the neighborhood 4 preservation program, a sum not to exceed $18,800,000 for the fiscal 5 year ending March 31, 2026. Within this total amount, $250,000 shall be 6 used for the purpose of entering into a contract with the neighborhood 7 preservation coalition to provide technical assistance and services to 8 companies funded pursuant to article 16 of the private housing finance 9 law. Notwithstanding any other provision of law, and subject to the 10 approval of the New York state director of the budget, the board of 11 directors of the state of New York mortgage agency shall authorize the 12 transfer to the housing trust fund corporation, for the purposes of 13 reimbursing any costs associated with neighborhood preservation program 14 contracts authorized by this section, a total sum not to exceed 15 $18,800,000, such transfer to be made from (i) the special account of 16 the mortgage insurance fund created pursuant to section 2429-b of the 17 public authorities law, in an amount not to exceed the actual excess 18 balance in the special account of the mortgage insurance fund, as deter- 19 mined and certified by the state of New York mortgage agency for the 20 fiscal year 2024-2025 in accordance with section 2429-b of the public 21 authorities law, if any, and/or (ii) provided that the reserves in the 22 project pool insurance account of the mortgage insurance fund created 23 pursuant to section 2429-b of the public authorities law are sufficient 24 to attain and maintain the credit rating (as determined by the state of 25 New York mortgage agency) required to accomplish the purposes of such 26 account, the project pool insurance account of the mortgage insurance 27 fund, such transfer to be made as soon as practicable but no later than 28 June 30, 2025. 29 § 2. Notwithstanding any other provision of law, the housing trust 30 fund corporation may provide, for purposes of the rural preservation 31 program, a sum not to exceed $8,050,000 for the fiscal year ending March 32 31, 2026. Within this total amount, $250,000 shall be used for the 33 purpose of entering into a contract with the rural housing coalition to 34 provide technical assistance and services to companies funded pursuant 35 to article 17 of the private housing finance law. Notwithstanding any 36 other provision of law, and subject to the approval of the New York 37 state director of the budget, the board of directors of the state of New 38 York mortgage agency shall authorize the transfer to the housing trust 39 fund corporation, for the purposes of reimbursing any costs associated 40 with rural preservation program contracts authorized by this section, a 41 total sum not to exceed $8,050,000, such transfer to be made from (i) 42 the special account of the mortgage insurance fund created pursuant to 43 section 2429-b of the public authorities law, in an amount not to exceed 44 the actual excess balance in the special account of the mortgage insur- 45 ance fund, as determined and certified by the state of New York mortgage 46 agency for the fiscal year 2024-2025 in accordance with section 2429-b 47 of the public authorities law, if any, and/or (ii) provided that the 48 reserves in the project pool insurance account of the mortgage insurance 49 fund created pursuant to section 2429-b of the public authorities law 50 are sufficient to attain and maintain the credit rating (as determined 51 by the state of New York mortgage agency) required to accomplish the 52 purposes of such account, the project pool insurance account of the 53 mortgage insurance fund, such transfer to be made as soon as practicable 54 but no later than June 30, 2025. S. 3006--C 42 A. 3006--C

1 § 3. Notwithstanding any other provision of law, the housing trust 2 fund corporation may provide, for purposes of the rural rental assist- 3 ance program pursuant to article 17-A of the private housing finance 4 law, a sum not to exceed $23,455,000 for the fiscal year ending March 5 31, 2026. Notwithstanding any other provision of law, and subject to 6 the approval of the New York state director of the budget, the board of 7 directors of the state of New York mortgage agency shall authorize the 8 transfer to the housing trust fund corporation, for the purposes of 9 reimbursing any costs associated with rural rental assistance program 10 contracts authorized by this section, a total sum not to exceed 11 $23,455,000, such transfer to be made from (i) the special account of 12 the mortgage insurance fund created pursuant to section 2429-b of the 13 public authorities law, in an amount not to exceed the actual excess 14 balance in the special account of the mortgage insurance fund, as deter- 15 mined and certified by the state of New York mortgage agency for the 16 fiscal year 2024-2025 in accordance with section 2429-b of the public 17 authorities law, if any, and/or (ii) provided that the reserves in the 18 project pool insurance account of the mortgage insurance fund created 19 pursuant to section 2429-b of the public authorities law are sufficient 20 to attain and maintain the credit rating, as determined by the state of 21 New York mortgage agency, required to accomplish the purposes of such 22 account, the project pool insurance account of the mortgage insurance 23 fund, such transfer shall be made as soon as practicable but no later 24 than June 30, 2025. 25 § 4. Notwithstanding any other provision of law, the homeless housing 26 and assistance corporation may provide, for purposes of the New York 27 state supportive housing program, the solutions to end homelessness 28 program or the operational support for AIDS housing program, or to qual- 29 ified grantees under such programs, in accordance with the requirements 30 of such programs, a sum not to exceed $56,381,000 for the fiscal year 31 ending March 31, 2026. The homeless housing and assistance corporation 32 may enter into an agreement with the office of temporary and disability 33 assistance to administer such sum in accordance with the requirements of 34 such programs. Notwithstanding any other provision of law, and subject 35 to the approval of the New York state director of the budget, the board 36 of directors of the state of New York mortgage agency shall authorize 37 the transfer to the homeless housing and assistance corporation, a total 38 sum not to exceed $56,381,000, such transfer to be made from (i) the 39 special account of the mortgage insurance fund created pursuant to 40 section 2429-b of the public authorities law, in an amount not to exceed 41 the actual excess balance in the special account of the mortgage insur- 42 ance fund, as determined and certified by the state of New York mortgage 43 agency for the fiscal year 2024-2025 in accordance with section 2429-b 44 of the public authorities law, if any, and/or (ii) provided that the 45 reserves in the project pool insurance account of the mortgage insurance 46 fund created pursuant to section 2429-b of the public authorities law 47 are sufficient to attain and maintain the credit rating as determined by 48 the state of New York mortgage agency, required to accomplish the 49 purposes of such account, the project pool insurance account of the 50 mortgage insurance fund, such transfer shall be made as soon as practi- 51 cable but no later than March 31, 2026. 52 § 5. Notwithstanding any other provision of law, the housing trust 53 fund corporation may provide, for grants to non-profit organizations to 54 assist non-profit affordable housing owners in joining an insurance 55 captive, a sum not to exceed $5,000,000 for the fiscal year ending March 56 31, 2026. Notwithstanding any other provision of law, and subject to S. 3006--C 43 A. 3006--C

1 the approval of the New York state director of the budget, the board of 2 directors of the state of New York mortgage agency shall authorize the 3 transfer to the housing trust fund corporation, for the purpose of reim- 4 bursing any grants to non-profit organizations to assist non-profit 5 affordable housing owners in joining an insurance captive authorized by 6 this section, a total sum not to exceed $5,000,000, such transfer to be 7 made from (i) the special account of the mortgage insurance fund 8 created pursuant to section 2429-b of the public authorities law, in an 9 amount not to exceed the actual excess balance in the special account of 10 the mortgage insurance fund, as determined and certified by the state of 11 New York mortgage agency for the fiscal year 2024-2025 in accordance 12 with section 2429-b of the public authorities law, if any, and/or (ii) 13 provided that the reserves in the project pool insurance account of the 14 mortgage insurance fund created pursuant to section 2429-b of the public 15 authorities law are sufficient to attain and maintain the credit rating 16 (as determined by the state of New York mortgage agency) required to 17 accomplish the purposes of such account, the project pool insurance 18 account of the mortgage insurance fund, such transfer to be made as soon 19 as practicable but no later than June 30, 2025. 20 § 6. This act shall take effect immediately.

21 PART O

22 Section 1. Section 3 of part N of chapter 56 of the laws of 2020, 23 amending the social services law relating to restructuring financing for 24 residential school placements, as amended by section 1 of part G of 25 chapter 56 of the laws of 2024, is amended to read as follows: 26 § 3. This act shall take effect immediately and shall expire and be 27 deemed repealed April 1, [ 2025 ] 2026 ; provided however that the amend- 28 ments to subdivision 10 of section 153 of the social services law made 29 by section one of this act, shall not affect the expiration of such 30 subdivision and shall be deemed to expire therewith. 31 § 2. This act shall take effect immediately and shall be deemed to 32 have been in full force and effect on and after April 1, 2025.

33 PART P

34 Section 1. The social services law is amended by adding a new section 35 390-n to read as follows: 36 § 390-n. Child care support center; operating certificate required. 1. 37 For purposes of this section, "child care support center" shall mean an 38 entity operating as a child care resource and referral program as 39 defined in title five-B of this article that is certified by the office 40 of children and family services to place individuals as substitute care- 41 givers at child day care centers, group family day care homes, family 42 day care homes, or school age child care programs as defined in section 43 three hundred ninety of this title for the purpose of providing child 44 day care. 45 2. The office of children and family services shall be authorized to 46 certify child care support centers and may, at its discretion, limit the 47 number of operating certificates issued. The office of children and 48 family services shall regulate and monitor child care support centers. 49 3. No entity may place substitute caregivers at child day care 50 centers, group family day care homes, family day care homes, or school 51 age child care programs unless it possesses a valid operating certif- 52 icate issued by the office of children and family services. S. 3006--C 44 A. 3006--C

1 4. Prior to placing an individual as a substitute caregiver at a child 2 day care center, group family day care home, family day care home, or 3 school age child care program as defined in section three hundred ninety 4 of this title for the purpose of providing child day care, a child care 5 support center shall verify that the substitute caregiver has met the: 6 (a) standards and training requirements set forth in section three 7 hundred ninety-a of this title for child day care program employees; 8 (b) criminal history review and background clearance requirements of 9 section three hundred ninety-b of this title for prospective employees 10 of a child day care program; and 11 (c) any other requirements established by the regulations of the 12 office of children and family services. 13 5. Any child day care program licensed or registered by the office of 14 children and family services shall be authorized to request placement of 15 a substitute caregiver by a child care support center in accordance with 16 procedures established by the child care support center. 17 6. Operating certificates issued under this section shall remain valid 18 unless surrendered by the child care support center or revoked by the 19 office of children and family services. The office of children and fami- 20 ly services may revoke an operating certificate at any time upon a 21 determination that the child care support center has not operated in 22 accordance with applicable state or federal law. 23 7. The office of children and family services shall deny an applica- 24 tion for certification of a child care support center if the applicant 25 had an operating certificate revoked within the two years prior to the 26 date of application. 27 § 2. Section 390-b of the social services law is amended by adding a 28 new subdivision 12 to read as follows: 29 12. A child care support center certified pursuant to section three 30 hundred ninety-n of this title shall be authorized to request clearances 31 for substitute caregivers in accordance with this section. Substitute 32 caregivers shall be considered "prospective employees" of a child day 33 care program under subparagraph (iii) of paragraph (a) of subdivision 34 two of this section. 35 § 3. This act shall take effect one year after it shall have become a 36 law. Effective immediately, the addition, amendment, and/or repeal of 37 any rule or regulation necessary for the implementation of this act on 38 its effective date are authorized to be made and completed on or before 39 such effective date.

40 PART Q

41 Section 1. Subdivision 5 of section 131-a of the social services law 42 is amended by adding a new paragraph (f-1) to read as follows: 43 (f-1) a one-time benefit to public assistance recipients upon the 44 birth of a new child, as prescribed by regulations of the department. 45 § 2. This act shall take effect on the one hundred eightieth day after 46 it shall have become a law.

47 PART R

48 Section 1. Paragraphs (a), (b), (c) and (d) of subdivision 1 of 49 section 131-o of the social services law, as amended by section 1 of 50 part H of chapter 56 of the laws of 2024, are amended to read as 51 follows: S. 3006--C 45 A. 3006--C

1 (a) in the case of each individual receiving family care, an amount 2 equal to at least [ $181.00 ] $186.00 for each month beginning on or after 3 January first, two thousand [ twenty-four ] twenty-five . 4 (b) in the case of each individual receiving residential care, an 5 amount equal to at least [ $208.00 ] $213.00 for each month beginning on 6 or after January first, two thousand [ twenty-four ] twenty-five . 7 (c) in the case of each individual receiving enhanced residential 8 care, an amount equal to at least [ $249.00 ] $255.00 for each month 9 beginning on or after January first, two thousand [ twenty-four ] twenty- 10 five . 11 (d) for the period commencing January first, two thousand [ twenty- 12 five ] twenty-six , the monthly personal needs allowance shall be an 13 amount equal to the sum of the amounts set forth in subparagraphs one 14 and two of this paragraph: 15 (1) the amounts specified in paragraphs (a), (b) and (c) of this 16 subdivision; and 17 (2) the amount in subparagraph one of this paragraph, multiplied by 18 the percentage of any federal supplemental security income cost of 19 living adjustment which becomes effective on or after January first, two 20 thousand [ twenty-five ] twenty-six , but prior to June thirtieth, two 21 thousand [ twenty-five ] twenty-six , rounded to the nearest whole dollar. 22 § 2. Paragraphs (a), (b), (c), (d), (e) and (f) of subdivision 2 of 23 section 209 of the social services law, as amended by section 2 of part 24 H of chapter 56 of the laws of 2024, are amended to read as follows: 25 (a) On and after January first, two thousand [ twenty-four ] 26 twenty-five , for an eligible individual living alone, [ $1,030.00 ] 27 $1,054.00 ; and for an eligible couple living alone, [ $1,519.00 ] 28 $1,554.00 . 29 (b) On and after January first, two thousand [ twenty-four ] 30 twenty-five , for an eligible individual living with others with or with- 31 out in-kind income, [ $966.00 ] $990.00 ; and for an eligible couple living 32 with others with or without in-kind income, [ $1,461.00 ] $1,496.00 . 33 (c) On and after January first, two thousand [ twenty-four ] 34 twenty-five , (i) for an eligible individual receiving family care, 35 [ $1,209.48 ] $1,233.48 if [ he or she ] such individual is receiving such 36 care in the city of New York or the county of Nassau, Suffolk, Westches- 37 ter or Rockland; and (ii) for an eligible couple receiving family care 38 in the city of New York or the county of Nassau, Suffolk, Westchester or 39 Rockland, two times the amount set forth in subparagraph (i) of this 40 paragraph; or (iii) for an eligible individual receiving such care in 41 any other county in the state, [ $1,171.48 ] $1,195.48 ; and (iv) for an 42 eligible couple receiving such care in any other county in the state, 43 two times the amount set forth in subparagraph (iii) of this paragraph. 44 (d) On and after January first, two thousand [ twenty-four ] 45 twenty-five , (i) for an eligible individual receiving residential care, 46 [ $1,378.00 ] $1,402.00 if [ he or she ] such individual is receiving such 47 care in the city of New York or the county of Nassau, Suffolk, Westches- 48 ter or Rockland; and (ii) for an eligible couple receiving residential 49 care in the city of New York or the county of Nassau, Suffolk, Westches- 50 ter or Rockland, two times the amount set forth in subparagraph (i) of 51 this paragraph; or (iii) for an eligible individual receiving such care 52 in any other county in the state, [ $1,348.00 ] $1,372.00 ; and (iv) for an 53 eligible couple receiving such care in any other county in the state, 54 two times the amount set forth in subparagraph (iii) of this paragraph. 55 (e) On and after January first, two thousand [ twenty-four ] 56 twenty-five , (i) for an eligible individual receiving enhanced residen- S. 3006--C 46 A. 3006--C

1 tial care, [ $1,637.00 ] $1,661.00 ; and (ii) for an eligible couple 2 receiving enhanced residential care, two times the amount set forth in 3 subparagraph (i) of this paragraph. 4 (f) The amounts set forth in paragraphs (a) through (e) of this subdi- 5 vision shall be increased to reflect any increases in federal supple- 6 mental security income benefits for individuals or couples which become 7 effective on or after January first, two thousand [ twenty-five ] twenty- 8 six but prior to June thirtieth, two thousand [ twenty-five ] twenty-six . 9 § 3. This act shall take effect December 31, 2025.

10 PART S

11 Section 1. Section 4 of part W of chapter 54 of the laws of 2016 12 amending the social services law relating to the powers and duties of 13 the commissioner of social services relating to the appointment of a 14 temporary operator, as amended by section 1 of part T of chapter 56 of 15 the laws of 2022, is amended to read as follows: 16 § 4. This act shall take effect immediately and shall be deemed to 17 have been in full force and effect on and after April 1, 2016, provided 18 further that this act shall expire and be deemed repealed March 31, 19 [ 2025 ] 2028 . 20 § 2. This act shall take effect immediately.

21 PART T

22 Section 1. Article 19-D of the labor law, as added by chapter 88 of 23 the laws of 2021, is amended to read as follows:

24 ARTICLE 19-D 25 MINIMUM WAGE RATES FOR COVERED AIRPORT WORKERS

26 Section 696-a. Definitions. 27 [ 696-b. Certification to the commissioner. 28 696-c. ] 696-b. Minimum wage rate for covered airport workers. 29 [ 696-d. ] 696-c. Commissioner's powers of investigation. 30 [ 696-e. ] 696-d. Records of employers. 31 [ 696-f. ] 696-e. Penalties. 32 [ 696-g. ] 696-f. Civil action. 33 [ 696-h. ] 696-g. Regulations. 34 [ 696-i. ] 696-h. Savings clause. 35 § 696-a. Definitions. As used in this article: 1. "Covered airport 36 location" means John F. Kennedy International Airport and LaGuardia 37 Airport or any location used to perform [ airline catering ] work [ as such 38 work is described in subparagraph (iv) of paragraph (a) of subdivision 39 two of this section ] related to the preparation or delivery of food for 40 consumption on airplanes departing from John F. Kennedy International 41 Airport or LaGuardia Airport . 42 2. (a) "Covered airport worker" means any person employed to perform 43 work at a covered airport location [ provided at least one-half of the 44 employee's time during any workweek is performed at a covered airport 45 location and who works in one of the following covered categories: 46 (i) Cleaning and related services, which shall mean: 47 (1) building cleaning, including warehouse, kitchen, and terminal 48 cleaning, including common areas, gateways, gates, lounges, clubs, 49 concession areas, terminal entryways from ramp and where planes park at S. 3006--C 47 A. 3006--C

1 the gate, and other nearby facilities used for the preparation, packag- 2 ing, and storage of inflight meals and supplies; and 3 (2) aircraft and cabin cleaning, including lavatory and water disposal 4 and replenishment, lift truck driving and helping, dispatching, cleaning 5 crew driving, and sorting and packing of inflight materials, such as 6 blankets, pillows, and magazines; 7 (ii) Security related services, including catering security, escort- 8 ing, escort security, passenger aircraft security, fire guarding, termi- 9 nal security, baggage security, traffic security, cargo screening, 10 including guarding, warehouse security, concessions and airport lounge 11 security, security dispatch, and security at nearby facilities used for 12 the preparation, packaging, and storage of inflight meals; or 13 (iii) In terminal and passenger handling services, including baggage 14 handling, sky cap services, wheelchair attending, wheelchair dispatch- 15 ing, customer and passenger services, line queue, identification check- 16 ing, porter services for baggage, and passenger and employee shuttle 17 driving. 18 (iv) Airline catering, including work related to the preparation or 19 delivery of food or beverage for consumption on airplanes departing from 20 a covered airport location or related location; or 21 (v) Airport lounge services, including food and retail services ]. 22 (b) "Covered airport worker" shall include any person employed to 23 perform work at a covered airport location, provided at least half of 24 the employee's time during any workweek is performed at a covered 25 airport location. 26 [ (b) ] (c) "Covered airport worker" shall not include [ anyone who works 27 in one of the following non-covered categories: 28 (i) Non-cleaning and security related cargo and ramp services, includ- 29 ing ramp baggage and cargo handling, load control and ramp communi- 30 cation, aircraft mechanics and fueling of aircraft, provision of cool- 31 ing, heating, and power, passenger aircraft servicing, cabin equipment 32 maintenance, guiding aircraft in and out of gates, and gate side 33 aircraft maintenance; 34 (ii) Ramp and tarmac maintenance services, including operation of snow 35 plows, ramp cleaning vehicles, and tarmac sweepers; 36 (iii) Concession services, including food service, which includes food 37 and beverage service, wait service, and cashiers, and retail service, 38 which includes news, and gifts, and duty-free; 39 (c) "Covered airport worker" shall not include direct employees of the 40 Port Authority of New York and New Jersey, or any workers hired by 41 companies contracted by the Port Authority of New York and New Jersey, 42 that are performing work under such contract ] persons employed in an 43 executive, administrative, or professional capacity as defined in 44 subparagraph one of paragraph (a) of section thirteen of the Fair Labor 45 Standards Act of 1938 (29 U.S.C. s.213 et seq.), or persons employed by 46 the Port Authority of New York and New Jersey or any other governmental 47 agency . 48 [ (d) Covered airport worker shall include only: 49 (i) Employees employed at a covered airport location on December thir- 50 tieth, two thousand twenty and who are working an average of at least 51 thirty hours per week; and 52 (ii) Employees employed at a covered airport location on or after 53 January first, two thousand twenty-three and who are working for an 54 average of thirty hours per week. 55 (e) "Covered airport worker" shall also not include persons employed 56 in an executive, administrative, or professional capacity as defined in S. 3006--C 48 A. 3006--C

1 subparagraph one of paragraph (a) of section thirteen of the Fair Labor 2 Standards Act of 1938. ] 3 3. "Successor airport employer" means any [ person who furnishes clean- 4 ing and related services, security related services, in terminal and 5 passenger handling services, airline catering, or airport lounge 6 services ] employer that employs covered airport workers who provide 7 services at a covered airport location that are substantially similar to 8 those that were provided by covered airport workers previously employed 9 by another employer at such covered airport location. 10 4. "Employer" means any person, corporation, limited liability compa- 11 ny, or association employing any individual in an occupation, industry, 12 trade, business or service. The term "employer" shall not include a 13 governmental agency or employers with ten or fewer employees . 14 5. [ The "standard wage rate" means the greater of: 15 (a) any minimum wage rate that would be otherwise applicable to 16 covered airport workers established by article nineteen of this chapter; 17 or 18 (b) any otherwise applicable minimum wage rate established through a 19 policy of the Port Authority of New York and New Jersey ] The "applicable 20 standard rate" means the wage and benefit rates designated by the 21 commissioner based on the determinations made by the General Services 22 Administration pursuant to the federal McNamara-O'Hara Service Contract 23 Act of 1965 (41 U.S.C. 6701 et seq.), for the appropriate localities and 24 classifications of building service employees; provided, however, that 25 in no event shall the prevailing wage rate applicable to a covered 26 airport worker on and after January first, two thousand twenty-five and 27 every year thereafter be less than the following: 28 (a) any otherwise applicable minimum wage rate established through a 29 regulation of the Port Authority of New York and New Jersey; and 30 (b) an amount of supplemental wages or a supplemental healthcare 31 contribution equal to the rate for health and welfare for all occupa- 32 tions, designated by the commissioner based on the determinations made 33 by the federal department of labor pursuant to the McNamara-O'Hara 34 Service Contract Act of 1965 (41 U.S.C. 6701 et seq.) for the geographic 35 region in which the covered airport location is situated and in effect 36 on the date of the designation by the commissioner; and 37 (c) paid leave equal to the paid leave requirements designated by the 38 commissioner the immediately preceding January first, based on the 39 determinations made by the General Services Administration pursuant to 40 the McNamara-O'Hara Service Contract Act of 1965 (41 U.S.C. 6701 et 41 seq.) . 42 6. [ The "standard benefits supplement rate" means an hourly supplement 43 of four dollars and fifty-four cents furnished to an employee by provid- 44 ing at least four dollars and fifty-four cents per hour toward the cost 45 of minimum essential coverage under an eligible employer-sponsored plan 46 as defined in treasury regulation section 1.5000A-2(c)(1) beginning on 47 July first, two thousand twenty-one. The standard benefits supplement 48 rate shall apply only to the first forty hours worked by each covered 49 airport worker in each week and shall not apply to any overtime hours 50 worked by any covered airport worker. The standard benefits supplement 51 rate shall apply to any paid leave taken by a covered airport worker 52 that does not exceed forty hours in a week ] "Commissioner" means the 53 commissioner of labor of the state of New York . 54 [ 7. The "applicable standard rate" shall mean a combination of (a) the 55 standard wage rate; and (b) the standard benefits supplemental rate. S. 3006--C 49 A. 3006--C

1 § 696-b. Certification to the commissioner. 1. No later than March 2 thirty-first, two thousand twenty-one, each employer of a covered 3 airport worker shall submit to the commissioner a sworn statement certi- 4 fying the total number of workers employed by such employer at a covered 5 airport location to perform cleaning and related services, security 6 related services, in terminal and passenger handling services, airline 7 catering, or airport lounge services, at a covered airport location on 8 December thirtieth, two thousand twenty, and identifying the number that 9 is equal to eighty percent of such total number of employees, which 10 shall be the December thirtieth, two thousand twenty benchmark for the 11 purposes of this section. Such statement shall further include an affir- 12 mation that such employer will ensure that the number of covered airport 13 workers it employs at a covered airport location between July first, two 14 thousand twenty-one and December thirty-first, two thousand twenty-two 15 is no less than the December thirtieth, two thousand twenty benchmark. 16 Such sworn statement shall be provided by the commissioner upon request 17 by any airport worker performing cleaning and related services, security 18 related services, in terminal and passenger handling services, airline 19 catering, or airport lounge services, at a covered airport location or 20 any representative of such airport workers. Prior to employing any 21 airport workers to perform cleaning and related services, security 22 related services, in terminal and passenger handling services, airline 23 catering, or airport lounge services, at a covered airport location, any 24 successor airport employer shall obtain the applicable December thirti- 25 eth, two thousand twenty benchmark from the commissioner and submit to 26 the commissioner an affirmation that such employer will ensure that the 27 number of covered airport workers it employs at a covered airport 28 location between July first, two thousand twenty-one and December thir- 29 ty-first, two thousand twenty-two is no less than the December thirti- 30 eth, two thousand twenty benchmark. 31 2. Each employer of any covered airport worker employed at a covered 32 airport location on or after January first, two thousand twenty-three 33 shall submit to the commissioner, in a form and manner proscribed by the 34 commissioner, a sworn statement affirming that such employer will 35 ensure, where applicable, that the proportion of covered airport workers 36 in each classification it employs to work an average of at least thirty 37 hours per week at a covered airport location is the same as such propor- 38 tion was compared to all workers in the same classification working at 39 such covered airport location in the calendar year two thousand nineteen 40 workforce. The commissioner shall publish a list of all covered classi- 41 fications with the corresponding proportions of all workers employed to 42 work an average of at least thirty hours a week compared to all workers 43 in the same classification employed to work at each covered airport 44 location in the calendar year two thousand nineteen. The commissioner 45 shall be empowered to promulgate rules or regulations to determine the 46 method and accounting for such information and to verify its accuracy, 47 including the ability to establish a presumed proportion where records 48 are missing or unavailable and provided further that such full-time 49 levels shall be no less than such December thirtieth, two thousand twen- 50 ty benchmark. If such proportion is not maintained, consistent with such 51 rules or regulations promulgated by the commissioner, then the hours 52 worked by such part time workers, which are outside of such proportion, 53 shall be subject to the provisions of this section as if they worked an 54 average of at least thirty hours per week at a covered airport location 55 and were otherwise a covered airport worker. S. 3006--C 50 A. 3006--C

1 3. Each employer of a covered airport worker employed at a covered 2 airport location on December thirtieth, two thousand twenty and who is 3 working an average of at least thirty hours per week shall provide such 4 covered airport worker the ability to begin or change enrollment in an 5 eligible employer-sponsored plan as defined in treasury regulation 6 section 1.5000A-2(c)(1) for coverage beginning on July first, two thou- 7 sand twenty-one. 8 4. Each employer of any other covered airport worker at a covered 9 airport location shall provide such covered airport worker the ability 10 to begin or change enrollment in an eligible employer-sponsored plan as 11 defined in treasury regulation section 1.5000A-2(c)(1) for coverage 12 beginning no later than thirty days after becoming a covered airport 13 worker. ] 14 § [ 696-c. ] 696-b. Minimum wage rate for covered airport workers. All 15 [ covered ] employers at a covered airport location shall ensure that 16 every covered airport worker is compensated at a rate that is no less 17 than the applicable standard rate. Nothing in this article shall alter 18 or limit any employer's obligation to pay any otherwise applicable 19 prevailing wage under article eight or nine of this chapter. 20 § [ 696-d. ] 696-c. Commissioner's powers of investigation. The commis- 21 sioner or [ his or her ] such commissioner's authorized representative 22 shall have the power to: 23 1. investigate the compensation of covered airport workers in the 24 state; 25 2. enter the place of business or employment of any employer for the 26 purpose of (a) examining and inspecting any and all books, registers, 27 payrolls, and other records that in any way relate to or have a bearing 28 upon the compensation provided to, or the hours worked by any employees, 29 and (b) ascertaining whether the provisions of this article and the 30 rules and regulations promulgated hereunder are being complied with; and 31 3. require from any employer full and correct statements and reports 32 in writing, at such times as the commissioner may deem necessary, of the 33 compensation provided to and the hours by such employer's employees. 34 § [ 696-e. ] 696-d. Records of employers. For every employee covered by 35 this article, every employer shall establish, maintain, and preserve for 36 not less than six years contemporaneous, true, and accurate payroll 37 records showing for each week worked the hours worked, the compensation 38 provided, plus such other information as the commissioner deems material 39 and necessary. For all covered airport workers who are not exempt from 40 overtime compensation as established in the commissioner's minimum wage 41 orders or otherwise provided by law, rule, or regulation, the payroll 42 records shall include the compensation provided and the regular hourly 43 rate or rates of pay, the overtime rate or rates of pay, the number of 44 regular hours worked, the number of overtime hours worked and the cost 45 of benefits and/or benefit supplements. On demand, the employer shall 46 furnish to the commissioner or [ his or her ] such commissioner's duly 47 authorized representative a sworn statement of the hours worked, rate or 48 rates of compensation, for each covered airport worker, plus such other 49 information as the commissioner deems material and necessary. Every 50 employer shall keep such records open to inspection by the commissioner 51 or [ his or her ] such commissioner's duly authorized representative at 52 any reasonable time. Every employer of a covered airport worker shall 53 keep a digest and summary of this article which shall be prepared by the 54 commissioner, posted in a conspicuous place in [ his or her ] their estab- 55 lishment and shall also keep posted such additional copies of said 56 digest and summary as the commissioner prescribes. Employers shall, on S. 3006--C 51 A. 3006--C

1 request, be furnished with copies of this article and of orders, and of 2 digests and summaries thereof, without charge. Employers shall permit 3 the commissioner or [ his or her ] such commissioner's duly authorized 4 representative to question without interference any employee of such 5 employer in a private location at the place of employment and during 6 working hours in respect to the wages paid to and the hours worked by 7 such employee or other employees. 8 § [ 696-f. ] 696-e. Penalties. 1. If the commissioner finds that any 9 employer has violated any provision of this article or of a rule or 10 regulation promulgated thereunder, the commissioner may, after an oppor- 11 tunity for a hearing, and by an order which shall describe particularly 12 the nature of the violation, assess the employer a civil penalty of not 13 more than ten thousand dollars for the first such violation within six 14 years, not more than twenty thousand dollars for a second violation 15 within six years and not more than fifty thousand dollars for a third or 16 subsequent violation within six years. Such penalty shall be paid to the 17 commissioner for deposit in the treasury of the state. In assessing the 18 amount of the penalty, the commissioner shall give due consideration to 19 the size of the employer's business, the good faith [ of the employer ] 20 basis of the employer to believe that its conduct was in compliance with 21 the law , the gravity of the violation, the history of previous 22 violations and the failure to comply with record-keeping or other 23 requirements. 24 2. Any order issued under subdivision one of this section shall be 25 deemed a final order of the commissioner and not subject to review by 26 any court or agency unless the employer files a petition with the indus- 27 trial board of appeals for a review of the order, pursuant to section 28 one hundred one of this chapter. 29 3. The civil penalty provided for in this section shall be in addition 30 to and may be imposed concurrently with any other remedy or penalty 31 provided for in this chapter. 32 4. Upon a showing by an employee organization, the commissioner may 33 investigate by examining payroll records whether an employer withheld 34 hours of work to employees for the purpose of reducing the employer's 35 obligations under this article. If, after the opportunity for a hearing, 36 the commissioner determines that an employer withheld hours of work to 37 employees for the purpose of reducing the employer's obligations under 38 this article, the commissioner may, in addition to any other penalty 39 available, also require that the employer pay the [ standard benefits 40 supplement ] applicable standard rate to all of the employer's employees, 41 regardless of the number of hours worked by the employees. 42 § [ 696-g. ] 696-f. Civil action. 1. On behalf of any employee paid 43 less than the applicable standard rate to which the employee is entitled 44 under the provisions of this article, the commissioner may bring any 45 legal action necessary, including administrative action, to collect such 46 claim, and the employer shall be required to pay the full amount of the 47 underpayment, plus costs, and unless the employer proves a good faith 48 basis to believe that its underpayment was in compliance with the law, 49 an additional amount as liquidated damages. Liquidated damages shall be 50 calculated by the commissioner as no more than one hundred percent of 51 the total amount of underpayments found to be due the employee. In any 52 action brought by the commissioner in a court of competent jurisdiction, 53 liquidated damages shall be calculated as an amount equal to one hundred 54 percent of underpayments found to be due the employee. 55 2. Notwithstanding any other provision of law, an action to recover 56 upon a liability imposed by this article must be commenced within six S. 3006--C 52 A. 3006--C

1 years. The statute of limitations shall be tolled from the date an 2 employee files a complaint with the commissioner or the commissioner 3 commences an investigation, whichever is earlier, until an order to 4 comply issued by the commissioner becomes final, or where the commis- 5 sioner does not issue an order, until the date on which the commissioner 6 notifies the complainant that the investigation has concluded. 7 3. In any civil action by the commissioner, the commissioner shall 8 have the right to collect attorneys' fees and costs incurred in enforc- 9 ing any court judgment. Any judgment or court order awarding remedies 10 under this section shall provide that if any amounts remain unpaid upon 11 the expiration of ninety days following issuance of judgment, or ninety 12 days after expiration of the time to appeal and no appeal therefrom is 13 then pending, whichever is later, the total amount of judgment shall 14 automatically increase by fifteen percent. 15 § [ 696-h. ] 696-g. Regulations. [ 1. ] The commissioner may promulgate 16 such regulations as [ he or she ] such commissioner deems appropriate to 17 carry out the purposes of this article and to safeguard minimum compen- 18 sation standards. 19 § [ 696-i. ] 696-h. Savings clause. 1. If any provision of this article 20 or the application thereof to any person, occupation or circumstance is 21 held invalid, the remainder of the article and the application of such 22 provision to other persons, employees, occupations, or circumstances 23 shall not be affected thereby. 24 2. If any clause, sentence, paragraph, subdivision, section or part of 25 this article shall be adjudged by any court of competent jurisdiction to 26 be invalid, such judgment shall not affect, impair, or invalidate the 27 remainder thereof, but shall be confined in its operation to the clause, 28 sentence, paragraph, subdivision, section or part thereof directly 29 involved in the controversy in which such judgment shall have been 30 rendered. It is hereby declared to be the intent of the legislature that 31 this article would have been enacted even if such invalid provisions had 32 not been included herein. 33 [ 3. If section six hundred ninety-six-a, section six hundred ninety- 34 six-b, or section six hundred ninety-six-c of this article or any 35 portion thereof shall be adjudged, whether by final judgment, a tempo- 36 rary restraining order, or a preliminary injunction, by any court of 37 competent jurisdiction to be preempted by federal law, then the "stand- 38 ard benefits supplement rate" defined in subdivision six of section six 39 hundred ninety-six-a of this article shall immediately mean the follow- 40 ing: 41 (a) An hourly supplement of four dollars and fifty-four cents 42 furnished to an employee by providing at least four dollars and fifty- 43 four cents per hour beginning on July first, two thousand twenty-one in 44 one of the following ways: (i) in the form of health and/or other bene- 45 fits, not including paid leave, that cost the employer the entire 46 required hourly supplemental amount; (ii) by providing a portion of the 47 required hourly supplement in the form of health and/or other benefits, 48 not including paid leave, and the balance in cash; or (iii) by providing 49 the entire supplement in cash. 50 (b) The value of such supplement shall be no less than four dollars 51 and fifty-four cents per hour. 52 (c) The standard benefits supplement rate shall apply only to the 53 first forty hours worked by each covered airport worker in each week and 54 shall not apply to any overtime hours worked by any covered airport 55 worker. S. 3006--C 53 A. 3006--C

1 (d) The standard benefits supplement rate shall apply to any paid 2 leave taken by a covered airport worker that does not exceed forty hours 3 in a week. 4 4. If section six hundred ninety-six-a, section six hundred ninety- 5 six-b, or section six hundred ninety-six-c of this article or any 6 portion thereof shall be adjudged by any preliminary relief, including a 7 temporary restraining order or a preliminary injunction, by any court of 8 competent jurisdiction to be preempted by federal law but is later 9 adjudged by the same court not to be preempted by federal law in a final 10 judgment, then the definition of "standard benefits supplement rate" 11 shall immediately revert to the definition stated in subdivision six of 12 section six hundred ninety-six-a of this article. ] 13 § 2. This act shall take effect January 1, 2026.

14 PART U

15 Section 1. Subdivision 1-a of section 198 of the labor law, as amended 16 by chapter 362 of the laws of 2015, is amended to read as follows: 17 1-a. On behalf of any employee paid less than the wage to which [ he or 18 she is ] they are entitled under the provisions of this article, the 19 commissioner may bring any legal action necessary, including administra- 20 tive action, to collect such claim and as part of such legal action, in 21 addition to any other remedies and penalties otherwise available under 22 this article, the commissioner shall assess against the employer the 23 full amount of any such underpayment, and an additional amount as liqui- 24 dated damages, unless the employer proves a good faith basis for believ- 25 ing that its underpayment of wages was in compliance with the law. 26 Liquidated damages shall be calculated by the commissioner as no more 27 than one hundred percent of the total amount of wages found to be due, 28 except such liquidated damages may be up to three hundred percent of the 29 total amount of the wages found to be due for a willful violation of 30 section one hundred ninety-four of this article. In any action insti- 31 tuted in the courts upon a wage claim by an employee or the commissioner 32 in which the employee prevails, the court shall allow such employee to 33 recover the full amount of any underpayment, all reasonable attorney's 34 fees, prejudgment interest as required under the civil practice law and 35 rules, and, unless the employer proves a good faith basis to believe 36 that its underpayment of wages was in compliance with the law, an addi- 37 tional amount as liquidated damages equal to one hundred percent of the 38 total amount of the wages found to be due, except such liquidated 39 damages may be up to three hundred percent of the total amount of the 40 wages found to be due for a willful violation of section one hundred 41 ninety-four of this article. Notwithstanding the provisions of this 42 subdivision, liquidated damages shall not be applicable to violations of 43 paragraph a of subdivision one of section one hundred ninety-one of this 44 article where the employer paid the employee wages on a regular payday, 45 no less frequently than semi-monthly. Such violations shall be subject 46 to damages as follows: 47 (i) no more than one hundred percent of the lost interest found to be 48 due for the delayed payment of wages calculated using a daily interest 49 rate for each day payment is late based on the annual rate of interest 50 then in effect, as prescribed by the superintendent of financial 51 services pursuant to section fourteen-a of the banking law for the 52 employer's first violation; or 53 (ii) for conduct occurring after the effective date of this paragraph, 54 liquidated damages equal to one hundred percent of the total amount of S. 3006--C 54 A. 3006--C

1 wages found to be due in violation of paragraph a of subdivision one of 2 section one hundred ninety-one of this article for any employer who, 3 after the effective date of this paragraph, has been subject to one or 4 more previous findings and orders for violations of paragraph a of 5 subdivision one of section one hundred ninety-one of this article for 6 which no proceeding for administrative or judicial review as provided in 7 this chapter is pending and the time for initiation of such proceeding 8 shall have expired and relating to employees performing the same work. 9 For purposes of this subdivision, an order shall mean a single final 10 order or determination made by the commissioner or a court of competent 11 jurisdiction, regardless of the number of employees or the time period 12 that was subject to such order. 13 § 2. This act shall take effect immediately and shall apply to causes 14 of action pending or commenced on or after such date.

15 PART V

16 Section 1. Subdivision 3 of section 218 of the labor law, as amended 17 by chapter 2 of the laws of 2015, is amended to read as follows: 18 3. (a) Provided that no proceeding for administrative or judicial 19 review as provided in this chapter shall then be pending and the time 20 for initiation of such proceeding shall have expired, the commissioner 21 may file with the county clerk of the county where the employer resides 22 or has a place of business the order of the commissioner, or the deci- 23 sion of the industrial board of appeals containing the amount found to 24 be due including the civil penalty, if any, and at the commissioner's 25 discretion, an additional fifteen percent damages upon any outstanding 26 monies owed. [ At ] Notwithstanding any provision to the contrary, in 27 execution of any order or decision filed by the commissioner pursuant to 28 this section, the commissioner shall have all the powers conferred upon 29 sheriffs by article twenty-five of the civil practice law and rules, but 30 the commissioner shall be entitled to no fee or compensation in excess 31 of the actual expenses paid in the performance of such duty. Addi- 32 tionally, at the request of an employee, the commissioner shall assign, 33 without consideration or liability, that portion of the filed order that 34 constitutes wages, wage supplements, interest on wages or wage supple- 35 ments, or liquidated damages due that employee, to that employee and may 36 file an assignment or order in that amount in the name of that employee 37 with the county clerk of the county where the employer resides or has a 38 place of business. The filing of such assignment, order or decision 39 shall have the full force and effect of a judgment duly docketed in the 40 office of such clerk. The assignment[ , order or decision ] may be 41 enforced [ by and in the name of the commissioner, or ] by the employee[ , ] 42 in the same manner, and with like effect, as that prescribed by the 43 civil practice law and rules for the enforcement of a money judgment. 44 (b) In addition and as an alternative to any other remedy provided by 45 this section and provided that no proceeding for administrative or judi- 46 cial review as provided in this chapter shall then be pending and the 47 time for initiation of such proceeding shall have expired, the commis- 48 sioner may issue a warrant under the commissioner's official seal, 49 directed to the sheriff of any county, commanding the sheriff to levy 50 upon and sell the real and personal property that may be found within 51 the sheriff's county of an employer who has defaulted in the payment of 52 any sum determined to be due from such employer for the payment of such 53 sum together with interest, penalties, and the cost of executing the 54 warrant, and to return such warrant to the commissioner and to pay into S. 3006--C 55 A. 3006--C

1 the fund the money collected by virtue thereof within sixty days after 2 the receipt of such warrant. The sheriff shall, within five days after 3 the receipt of the warrant, file with the clerk of the county a copy 4 thereof, and thereupon such clerk shall enter in the judgment docket the 5 name of the employer mentioned in the warrant and the amount of the 6 contribution, interest, and penalties for which the warrant is issued 7 and the date when such copy is filed. Thereupon the amount of such 8 warrant so docketed shall become a lien upon the title to and interest 9 in real property and chattels of the employer against whom the warrant 10 is issued in the same manner as a judgment duly docketed in the office 11 of such clerk. The sheriff shall then proceed upon the warrant in the 12 same manner, and with like effect, as that provided by law in respect to 13 executions issued against property upon judgments of a court of record, 14 and the sheriff shall be entitled to the same fees, which they may 15 collect in the same manner, for the sheriff's services in executing the 16 warrant. 17 (c) In the discretion of the commissioner, a warrant of like terms, 18 force, and effect may be issued and directed to any officer or employee 19 of the department of labor who may file a copy of such warrant with the 20 clerk of any county in the state, and thereupon each such clerk shall 21 docket it and it shall become a lien in the same manner and with the 22 same force and effect as hereinbefore provided with respect to a warrant 23 issued and directed to and filed by a sheriff; and in the execution 24 thereof such officer or employee shall have all the powers conferred by 25 law upon sheriffs, but they shall be entitled to no fee or compensation 26 in excess of the actual expenses paid in the performance of such duty. 27 If a warrant is returned not satisfied in full, the commissioner shall 28 have the same remedies to enforce the amount thereof as if the commis- 29 sioner had recovered judgment for the same. 30 § 2. Subdivision 3 of section 219 of the labor law, as amended by 31 chapter 2 of the laws of 2015, is amended to read as follows: 32 3. (a) Provided that no proceeding for administrative or judicial 33 review as provided in this chapter shall then be pending and the time 34 for initiation of such proceeding shall have expired, the commissioner 35 may file with the county clerk of the county where the employer resides 36 or has a place of business the order of the commissioner or the decision 37 of the industrial board of appeals containing the amount found to be 38 due, including, at the commissioner's discretion, an additional fifteen 39 percent damages upon any outstanding monies owed. [ At ] Notwithstanding 40 any provision to the contrary, in execution of any order or decision 41 filed by the commissioner pursuant to this section, the commissioner 42 shall have all the powers conferred upon sheriffs by article twenty-five 43 of the civil practice law and rules, but the commissioner shall be enti- 44 tled to no fee or compensation in excess of the actual expenses paid in 45 the performance of such duty. Additionally, at the request of an employ- 46 ee, the commissioner shall assign, without consideration or liability, 47 that portion of the filed order that constitutes wages, wage supple- 48 ments, interest on wages or wage supplements, or liquidated damages due 49 the employee, to that employee and may file an assignment or order in 50 that amount in the name of such employee with the county clerk of the 51 county where the employer resides or has a place of business. The filing 52 of such assignment, order or decision shall have the full force and 53 effect of a judgment duly docketed in the office of such clerk. The 54 assignment[ , order or decision ] may be enforced [ by and in the name of 55 the commissioner, or ] by the employee[ , ] in the same manner, and with S. 3006--C 56 A. 3006--C

1 like effect, as that prescribed by the civil practice law and rules for 2 the enforcement of a money judgment. 3 (b) In addition and as an alternative to any other remedy provided by 4 this section and provided that no proceeding for administrative or judi- 5 cial review as provided in this chapter shall then be pending and the 6 time for initiation of such proceeding shall have expired, the commis- 7 sioner may issue a warrant under the official seal of the commissioner, 8 directed to the sheriff of any county, commanding the sheriff to levy 9 upon and sell the real and personal property that may be found within 10 the sheriff's county of an employer who has defaulted in the payment of 11 any sum determined to be due from such employer for the payment of such 12 sum together with interest, penalties, and the cost of executing the 13 warrant, and to return such warrant to the commissioner and to pay into 14 the fund the money collected by virtue thereof within sixty days after 15 the receipt of such warrant. The sheriff shall, within five days after 16 the receipt of the warrant, file with the clerk of the county a copy 17 thereof, and thereupon such clerk shall enter in the judgment docket the 18 name of the employer mentioned in the warrant and the amount of the 19 contribution, interest, and penalties for which the warrant is issued 20 and the date when such copy is filed. Thereupon the amount of such 21 warrant so docketed shall become a lien upon the title to and interest 22 in real property and chattels of the employer against whom the warrant 23 is issued in the same manner as a judgment duly docketed in the office 24 of such clerk. The sheriff shall then proceed upon the warrant in the 25 same manner, and with like effect, as that provided by law in respect to 26 executions issued against property upon judgments of a court of record, 27 and the sheriff shall be entitled to the same fees, which they may 28 collect in the same manner, for the sheriff's services in executing the 29 warrant. 30 (c) In the discretion of the commissioner, a warrant of like terms, 31 force, and effect may be issued and directed to any officer or employee 32 of the department of labor who may file a copy of such warrant with the 33 clerk of any county in the state, and thereupon each such clerk shall 34 docket it and it shall become a lien in the same manner and with the 35 same force and effect as hereinbefore provided with respect to a warrant 36 issued and directed to and filed by a sheriff; and in the execution 37 thereof such officer or employee shall have all the powers conferred by 38 law upon sheriffs, but they shall be entitled to no fee or compensation 39 in excess of the actual expenses paid in the performance of such duty. 40 If a warrant is returned not satisfied in full, the commissioner shall 41 have the same remedies to enforce the amount thereof as if the commis- 42 sioner had recovered judgment for the same. 43 § 3. This act shall take effect immediately.

44 PART W

45 Section 1. Subdivision 1 of section 141 of the labor law, as amended 46 by chapter 642 of the laws of 1991, is amended to read as follows: 47 1. If the commissioner finds that an employer has violated any 48 provision of this article or of a rule or regulation promulgated there- 49 under, the commissioner may by an order which shall describe particular- 50 ly the nature of the violation, assess the employer a civil penalty of 51 not more than [ one ] ten thousand dollars for the first such violation, 52 at least two thousand but not more than [ two ] twenty-five thousand 53 dollars for a second violation , and at least ten thousand but not more 54 than [ three ] fifty-five thousand dollars for a third or subsequent S. 3006--C 57 A. 3006--C

1 violation. Such penalty shall be paid to the commissioner for deposit in 2 the treasury of the state. In assessing the amount of the penalty, the 3 commissioner shall give due consideration to the size of the employer's 4 business, the good faith of the employer to believe that its conduct was 5 in compliance with the law , the gravity of the violation, the history of 6 previous violations and the failure to comply with record-keeping or 7 other requirements, provided, however, that where such violation 8 involves illegal employment during which a minor is seriously injured or 9 dies, such penalty shall be [ treble the maximum penalty allowable under 10 the law for such violation ] at least three thousand dollars but not more 11 than thirty thousand dollars for the first such violation, at least six 12 thousand but not more than seventy-five thousand dollars for the second 13 violation, and at least thirty thousand dollars but not more than one 14 hundred seventy-five thousand dollars for the third or subsequent 15 violation . For the purposes of this subdivision, a minor shall be 16 deemed to be seriously injured if such injury results in a permanent 17 partial or permanent total disability as determined by the workers' 18 compensation board. 19 § 2. This act shall take effect immediately.

20 PART X

21 Section 1. Sections 135, 137 and 139 of the labor law are REPEALED. 22 § 2. Paragraph c of subdivision 2 of section 130 of the labor law is 23 REPEALED. 24 § 3. Section 131 of the labor law, as amended by chapter 975 of the 25 laws of 1966, subdivision 2 and paragraph a of subdivision 3 as amended 26 by chapter 1017 of the laws of 1971, subparagraph 4 of paragraph a of 27 subdivision 3 as added by chapter 292 of the laws of 1991, subparagraph 28 5 of paragraph a of subdivision 3 as added and subparagraph 6 of para- 29 graph a of subdivision 3 as renumbered by chapter 123 of the laws of 30 1997, paragraph b of subdivision 3 as amended by chapter 35 of the laws 31 of 2004, paragraph c of subdivision 3 as amended by chapter 478 of the 32 laws of 1984, paragraph d of subdivision 3 as amended by chapter 377 of 33 the laws of 1973, and subdivision 6 as amended by chapter 920 of the 34 laws of 1982, is amended to read as follows: 35 § 131. Employment of minors fourteen or fifteen years of age. 1. No 36 minor fourteen or fifteen years of age shall be employed in or in 37 connection with any trade, business, or service when attendance upon 38 instruction is required by the education law. 39 2. When attendance upon instruction is not required by the education 40 law, a minor fourteen or fifteen years of age may be employed if [ he 41 presents ] they present an employment certificate or permit issued in 42 accordance with the education law; provided, however, that no minor 43 fourteen or fifteen years of age shall be employed in or in connection 44 with a factory. 45 3. Exceptions: 46 a. When attendance upon instruction is not required by the education 47 law, a minor fourteen or fifteen years of age may be employed without an 48 employment certificate or permit in the following occupations: 49 (1) Caddy service on a golf course; 50 (2) Service as a baby sitter staying with and at the home of a younger 51 child or children with or without the presence at such home of such 52 child's or children's [ parents or guardians ] persons in parental 53 relation ; S. 3006--C 58 A. 3006--C

1 (3) Casual employment consisting of yard work and household chores in 2 and about a residence or the premises of a non-profit, non-commercial 3 organization, not involving the use of power-driven machinery; 4 (4) Assisting a [ parent ] person in parental relation as defined in 5 section thirty-two hundred twelve of the education law , aunt, uncle, or 6 grandparent [ or guardian ] in the sale of produce of a farm that is owned 7 or leased by the minor's [ parent ] person in parental relation , aunt, 8 uncle, or grandparent [ or guardian ], at a farm stand or farmer's market 9 stand that is owned or leased by the minor's [ parent ] person in parental 10 relation , aunt, uncle, or grandparent [ or guardian ], at times when 11 school [ in ] is not in session and the minor is accompanied by the 12 [ parent or guardian ] person in parental relation or has presented the 13 written consent of the [ parent or guardian ] person in parental 14 relation . 15 (5) Caddie service at a bridge tournament; 16 (6) Work for [ his parents or guardians ] their person in parental 17 relation either on the home farm or at other outdoor work not connected 18 with or for any trade, business, or service. 19 b. Nothing in this section shall be construed to prohibit the employ- 20 ment of a minor fourteen or fifteen years of age as a child performer in 21 compliance with section 35.01 of the arts and cultural affairs law and 22 article four-A of this chapter. 23 c. Nothing in this section shall be construed to apply to the employ- 24 ment of a minor fourteen or fifteen years of age as a child model in 25 compliance with section 35.05 of the arts and cultural affairs law. 26 d. [ Nothing in this section, or the hours of work requirements of this 27 chapter, shall apply to a newspaper carrier in compliance with section 28 thirty-two hundred twenty-eight of the education law. The picking up of 29 newspapers at a newspaper plant shall not be construed to be employment 30 in or in connection with a factory if there is provided a place for the 31 picking up of such newspapers, which place does not contain any danger- 32 ous machinery or equipment and does not afford access to space in which 33 any such dangerous machinery or equipment is located. 34 e. Nothing in this section shall prohibit the employment of a minor 35 fifteen years old who is found to be incapable of profiting from further 36 instruction available and who presents a special employment certificate 37 issued in accordance with the education law. Such employment certificate 38 shall not be valid for work in or in connection with a factory. 39 f. ] A minor fourteen or fifteen years of age may be employed in farm 40 service, when attendance upon instruction is not required by the educa- 41 tion law, provided such minor presents a farm work permit issued in 42 accordance with the education law. Such permit shall be valid only when 43 signed by the employer and it shall not be valid for work in or in 44 connection with a factory. 45 [ g. ] e. Nothing in this section shall prohibit the employment of a 46 minor fourteen or fifteen years of age during the school lunch period in 47 a school cafeteria at the school which the minor attends if the minor 48 presents an employment certificate issued in accordance with the educa- 49 tion law. 50 4. Employment in delivery and clerical employments: 51 a. Nothing contained in this article shall be deemed to prohibit the 52 employment of a minor fourteen or fifteen years of age for whom a 53 student non-factory employment certificate has been issued in accordance 54 with the provisions of the education law, in delivery and clerical 55 employments: S. 3006--C 59 A. 3006--C

1 (1) in an office of a factory, provided that such office is enclosed 2 and separate from the place where manufacturing is carried on, and 3 provided that the minor is not engaged in any manufacturing operation or 4 process; or 5 (2) in or in connection with dry cleaning stores, tailor shops, shoe 6 repair shops and similar service stores which clean, press, alter, 7 repair or dye articles or goods belonging to the ultimate consumer, 8 provided that such employment does not involve the use of dangerous 9 machinery or equipment, or chemical processes. 10 b. The commissioner may promulgate rules and regulations which [ he 11 deems ] they deem necessary to carry out the provisions of this subdivi- 12 sion. 13 5. Nothing in this section shall be construed to permit the employment 14 of a minor fourteen or fifteen years of age in any occupation prohibited 15 by section one hundred thirty-three of this chapter. 16 6. Nothing in this section shall prevent the rendering of services for 17 the public good by a minor of fourteen or fifteen years pursuant to 18 section seven hundred fifty-eight-a or 353.6 of the family court act. 19 § 4. The labor law is amended by adding a new section 135 to read as 20 follows: 21 § 135. Database for employment of minors; employee registration; minor 22 employment certificates. 1. Creation of database. The department, in 23 consultation with the department of education, shall create and maintain 24 a database for the employment of minors. Except as otherwise provided in 25 this section, all information pertaining to any employer or minor that 26 is submitted to the department under this section shall be confidential 27 and shall not be accessible to the public. Nothing herein shall prevent 28 the commissioner from sharing such information for civil or criminal law 29 enforcement purposes. 30 2. Employer registration and renewal process. Any employer required to 31 be registered under this section shall provide the department with the 32 information set forth in this section, as well as any additional infor- 33 mation that the department may require, in the form and manner 34 prescribed by the department. 35 3. Employer registration and information. Every employer that hires, 36 employs, or otherwise permits any minor under the age of eighteen to 37 work for the employer within the state shall register in the database 38 and shall provide, in the form and manner prescribed by the department, 39 the following information: 40 (a) the name of the employer; 41 (b) the email address of the employer; 42 (c) any location of the employer's business operations within the 43 state, including any location where a minor will be working; 44 (d) the number and names of minors who are hired, employed, or other- 45 wise permitted to work for the employer; 46 (e) a certified statement from the employer that the employer is 47 hiring, employing, or otherwise permitting minors to work only in posi- 48 tions for the employer as permitted by law, rule, or regulation in order 49 to ensure their health, safety, and well-being; and 50 (f) any other information deemed appropriate by the commissioner. 51 4. Employer recordkeeping. An employer that is required to be regis- 52 tered under this section shall, before employment begins, file at the 53 place of the minor's employment such employment certificate or permit so 54 that it may be readily accessible to any person authorized by law to 55 examine such document. An employer's electronic access to such employ- S. 3006--C 60 A. 3006--C

1 ment certificate or permit in the database shall meet the requirements 2 of this subdivision. 3 5. Minor registration. Any minor under the age of eighteen who plans 4 to work for an employer within the state shall complete a registration 5 in the database for any employment certificate or permit. All informa- 6 tion pertaining to the minor shall be confidential and shall not be 7 accessible by the public. When the minor receives a job offer from an 8 employer, they must update their certificate or permit in the database 9 to reflect that employer in order for the certificate or permit to be 10 valid. If the minor plans to work for a different employer, or for an 11 employer in addition to the employer for which the minor first regis- 12 tered, the minor shall update the minor's registration. The minor shall 13 be required to submit documentation for registration in the form and 14 manner prescribed by the department. 15 6. Issuance and revocation of employment certificate or permit. (a) 16 Any employment certificate or permit issued pursuant to part one of 17 article sixty-five of the education law shall be issued by the commis- 18 sioner electronically within the database. Any application for an 19 employment certificate or permit that is made pursuant to part one of 20 article sixty-five of the education law shall be made by a minor on a 21 form prescribed by the department. 22 (b) The chancellor in the city school district of the city of New 23 York, and elsewhere the superintendent of schools or the district super- 24 intendent of schools within their respective jurisdictions, or a princi- 25 pal of a nonpublic secondary school, may request that the commissioner 26 revoke a minor's employment certificate or permit. The requestor shall 27 use the database to file this request and electronically upload, 28 disclose, or otherwise provide additional information as necessary. 29 Additional information may relate to: (i) an evaluation of the student's 30 overall academic performance and past academic record; (ii) an examina- 31 tion of the student's attendance record; (iii) the willingness of the 32 student to participate in a cooperative education program, work study 33 program, school to work program or any other structured program which 34 provides a student with an opportunity to earn income while earning 35 academic credit; (iv) such other factors as the aforementioned officials 36 identify; and (v) any material submitted by the student. Upon review of 37 information provided by schools or gathered on their own, the commis- 38 sioner may revoke the minor's employment certificate or permit. 39 7. Records. The commissioner, in consultation with the commissioner 40 of education, shall provide a method by which authorized school employ- 41 ees acting on behalf of a school district, board of cooperative educa- 42 tional services, or nonpublic school may access the database for the 43 purpose of compliance with part one of article sixty-five of the educa- 44 tion law. The commissioner may share information with such authorized 45 school employees about registered minors and request information from 46 such school authorized employees about registered minors or minors 47 applying for a certificate or permit. Notwithstanding any law, rule, or 48 regulation to the contrary, a school district, board of cooperative 49 educational services, nonpublic secondary school and the education 50 department shall provide the commissioner with such records and informa- 51 tion as requested to fulfill the requirements of this section, provided 52 that, as applied to student educational records, such entity shall 53 provide all protections afforded to parents and persons in parental 54 relationships, or students where applicable, required under the family 55 educational rights and privacy act, 20 U.S.C. section 1232g, where 56 applicable the individuals with disabilities education act, sections S. 3006--C 61 A. 3006--C

1 fourteen hundred, et seq. of title twenty of the United States code, and 2 the federal regulations implementing such statutes. 3 8. Regulations. The commissioner may prescribe regulations necessary 4 to carry out the provisions of this section. 5 § 5. Section 140 of the labor law, as amended by chapter 478 of the 6 laws of 1984, is amended to read as follows: 7 § 140. Enforcement of violations relating to child performers[ , ] and 8 child models[ , street trades, and newspaper carriers ]. The commissioner 9 is hereby authorized and empowered to prosecute violations of section 10 35.01 of the arts and cultural affairs law, relating to child perform- 11 ers, and section 35.05 of the arts and cultural affairs law, relating to 12 child models[ , section thirty-two hundred twenty-seven of the education 13 law, relating to street trades, and section thirty-two hundred twenty- 14 eight of the education law, relating to newspaper carriers ]. 15 § 6. Section 3215 of the education law, as amended by chapter 1017 of 16 the laws of 1971, subdivision 1 and paragraph d of subdivision 4 as 17 amended by chapter 919 of the laws of 1974, is amended to read as 18 follows: 19 § 3215. Unlawful employment. 1. It shall be unlawful, except as 20 otherwise provided by law, to employ in any trade, business or service a 21 minor who does not present an employment certificate or permit issued in 22 accordance with this article and section one hundred thirty-five of the 23 labor law . 24 2. No minor shall be employed during the hours when attendance upon 25 instruction is required by this chapter. 26 3. No minor shall be employed in violation of any provision of the 27 labor law or other law. 28 4. Exceptions. a. When attendance upon instruction is not required by 29 this chapter, a minor fourteen years of age or over may be employed 30 without an employment certificate or permit in the following occupa- 31 tions: 32 (1) Caddy service on a golf course; 33 (2) Service as a baby sitter staying with and at the home of another 34 child or children with or without the presence at such home of such 35 child or children's [ parents or guardians ] persons in parental relation ; 36 (3) Casual employment of a minor fourteen or fifteen years of age 37 consisting of yard work and household chores in and about a residence or 38 the premises of a non-profit, non-commercial organization, not involving 39 the use of power-driven machinery; and 40 (4) Casual employment of a minor sixteen years of age or over consist- 41 ing of yard work and household chores in and about a residence or the 42 premises of a non-profit, non-commercial organization, not involving the 43 use of power-driven machinery other than power-driven machinery ordinar- 44 ily used in such yard work or household chores. 45 b. When attendance upon instruction is not required, a minor sixteen 46 years of age or over may be employed in work on a farm without an 47 employment certificate or permit. 48 c. Nothing in this section shall prohibit the employment of a minor 49 during the school lunch period in a school cafeteria at the school which 50 the minor attends if the minor presents an employment certificate issued 51 in accordance with this article. 52 d. Nothing in this section shall be construed to prohibit the employ- 53 ment of a minor in accordance with [ sections ] section thirty-two hundred 54 twenty-six [ through and including section thirty-two hundred thirty ] of 55 this chapter. S. 3006--C 62 A. 3006--C

1 e. Nothing in this section shall be construed to prohibit the employ- 2 ment of a minor twelve years of age or over in work for [ his parents or 3 guardians ] their person in parental relation on the home farm or at 4 other outdoor work not connected with or for any trade, business or 5 service when attendance upon instruction is not required by this chap- 6 ter. 7 f. Notwithstanding any other provision of this chapter, an employment 8 certificate or permit shall not be required for a student sixteen years 9 of age or over who is in attendance at a recognized institution of high- 10 er learning and who is employed by a non-profit college or university or 11 by a non-profit college or university fraternity, sorority, student 12 association or faculty association. 13 § 7. Section 3215-a of the education law, as amended by chapter 1017 14 of the laws of 1971 and subdivisions 1 and 2 as amended by chapter 197 15 of the laws of 1992, is amended to read as follows: 16 § 3215-a. General certification provisions. 1. Certificating offi- 17 cials. Employment certificates or permits shall be issued by the [ chan- 18 cellor in the city school district of the city of New York, and by the 19 superintendent of schools in other school districts, provided that the 20 district superintendent of schools may issue such certificates or 21 permits for students attending classes operated by a board of cooper- 22 ative educational services, and the principal of a nonpublic secondary 23 school may issue such certificates or permits for students attending 24 such school. The chancellor in New York city, or elsewhere the super- 25 intendent of schools or district superintendent of schools may designate 26 in writing the principal of the public school the minor attends or last 27 attended or other public school official to act as certificating offi- 28 cial in his stead. During the months of July and August, and at other 29 times in extraordinary circumstances and emergencies, one or more public 30 school officials shall be designated in writing by the chancellor in New 31 York city and elsewhere by the superintendent or district superintendent 32 to act as certificating officials. The designation or authorization of 33 certificating officials in public schools shall be subject to such limi- 34 tations or standards as may be prescribed by the chancellor in New York 35 city and elsewhere by the superintendent or district superintendent ] 36 commissioner of labor . The commissioner of labor may share the status 37 of a student's certificate or permit with the chancellor in the city 38 school district of the city of New York and elsewhere with the super- 39 intendent of schools or the district superintendent of schools within 40 their respective jurisdictions or with a principal of a nonpublic 41 secondary school for a student attending such school. 42 2. Revocation. Employment certificates or permits may be revoked [ for 43 cause ] by the [ chancellor in New York city and elsewhere by the super- 44 intendent of schools or the district superintendent of schools within 45 their respective jurisdictions, or, by a principal of a nonpublic 46 secondary school for a student attending such school. Where a student 47 who is required to attend school pursuant to section thirty-two hundred 48 five of this article has failed no less than four academic courses in 49 one semester, the chancellor in New York city, and elsewhere the super- 50 intendent of schools or the district superintendent of schools within 51 their respective jurisdictions, or a principal of a nonpublic secondary 52 school may revoke such student's employment certificate or permit. In 53 determining whether to revoke an employment certificate or permit, the 54 chancellor in New York city, and elsewhere the superintendent of schools 55 or the district superintendent of schools within their respective juris- 56 dictions, or a principal of a nonpublic secondary school, shall consid- S. 3006--C 63 A. 3006--C

1 er, (1) an evaluation of the student's overall academic performance and 2 past academic record; (2) an examination of the student's attendance 3 record; (3) the economic need of the student's family for the income 4 provided by the student; (4) the willingness of the student to partic- 5 ipate in a cooperative education program, work study program, school to 6 work program or any other structured program which provides a student 7 with an opportunity to earn income while earning academic credit; (5) 8 such other factors as the aforementioned officials identify; and (6) any 9 material submitted by the student ] commissioner of labor pursuant to 10 section one hundred thirty-five of the labor law . 11 Notwithstanding any other provisions of law, nothing in this section 12 shall be construed to prevent any student from obtaining an employment 13 certificate or permit for the purpose of working during the months of 14 July and August. 15 3. Approval of form and contents. The commissioner of [ education ] 16 labor, in consultation with the commissioner of education, shall 17 prescribe [ or approve ] the form and contents of all certificates, 18 permits, [ physical examination records, ] and schooling records required 19 by part one of this article for employment purposes and consistent with 20 section one hundred thirty-five of the labor law . [ The form of such 21 certificates and permits shall also be subject to the approval of the 22 industrial commissioner ] Any employment certificate or permit issued 23 pursuant to this part shall be issued electronically within the database 24 created and maintained by the department of labor, in consultation with 25 and with support from the department, pursuant to section one hundred 26 thirty-five of the labor law . 27 § 8. Section 3216 of the education law, as amended by chapter 1017 of 28 the laws of 1971 and subdivision 3 as amended by chapter 919 of the laws 29 of 1974, is amended to read as follows: 30 § 3216. Employment certificates. 1. A student non-factory employment 31 certificate may be issued to a minor fourteen or fifteen years of age 32 who is attending day school. The certificate shall be valid for work in 33 a trade, business or service, but shall not be valid for work in or in 34 connection with a factory except as provided in subdivision four of 35 section one hundred thirty-one of the labor law. 36 2. A student general employment certificate may be issued to a minor 37 sixteen or seventeen years of age who is attending day school. It shall 38 be valid for work in or in connection with a factory or any other trade, 39 business or service. 40 3. A full-time employment certificate may be issued to a minor sixteen 41 or seventeen years of age who is not attending day school or who 42 declares [ his ] their intention to leave day school for full-time employ- 43 ment. It shall be valid for work in or in connection with a factory or 44 any other trade, business or service. A full-time employment certificate 45 also may be issued to a minor who is a graduate of a four-year high 46 school, but if such minor is under sixteen years of age the certificate 47 shall not be valid for work in or in connection with a factory except as 48 provided in subdivision four of section one hundred and thirty-one of 49 the labor law. 50 4. [ A limited employment certificate may be issued as provided in 51 subdivision two of section thirty-two hundred twenty of this article. 52 5. A special employment certificate may be issued as provided in 53 section thirty-two hundred twenty-five of this article. 54 6. ] An employment certificate shall be valid not only for the initial 55 employment but also for subsequent employments in work permitted by the 56 particular type of certificate , provided that the minor has updated S. 3006--C 64 A. 3006--C

1 their electronic registration to reflect the subsequent employer as 2 required by section one hundred thirty-five of the labor law . 3 [ 7. ] 5. An employment certificate shall expire two years from the date 4 of its issuance, except as otherwise provided in this article. No 5 employment certificate shall be valid for employment in violation of any 6 provision of the labor law or rules issued thereunder. 7 [ 8. ] 6. An employment certificate shall be kept on file at the place 8 of the minor's employment [ and shall be returned to the minor when the 9 employment terminates ] or be readily accessible to any person authorized 10 by law to examine such document in accordance with the recordkeeping 11 requirements set forth in section one hundred thirty-five of the labor 12 law . 13 § 9. Section 3217 of the education law, as amended by chapter 1017 of 14 the laws of 1971, is amended to read as follows: 15 § 3217. Procedure for issuance of employment certificates. 1. An 16 application for an employment certificate shall be made by a minor [ on a 17 form ] in the manner prescribed by the commissioner of [ education ] labor 18 and consistent with the requirements of section one hundred thirty-five 19 of the labor law . 20 2. Before issuing an employment certificate the issuing official shall 21 require the minor to submit the following: 22 a. Evidence of age; 23 b. Written consent of the [ parent or guardian ] person in parental 24 relation as defined in section thirty-two hundred twelve of this part ; 25 and 26 c. [ A certificate of physical fitness; and 27 d. ] If the application is for a full-time employment certificate, a 28 schooling record. 29 In addition, in a city or school district which, pursuant to section 30 thirty-two hundred five, subdivision three, of this article, requires 31 minors from sixteen to seventeen years of age who are not employed to 32 attend school, the certificating official shall require a minor applying 33 for a full-time employment certificate to submit the following: 34 a. A pledge of employment; and 35 b. A schooling record. 36 § 10. Section 3219 of the education law is REPEALED. 37 § 11. Section 3220 of the education law is REPEALED. 38 § 12. Section 3221 of the education law, as amended by chapter 1017 of 39 the laws of 1971, is amended to read as follows: 40 § 3221. Pledge of employment. The pledge of employment shall be 41 [ signed ] completed in the method prescribed pursuant to section one 42 hundred thirty-five of the labor law by the initial prospective employer 43 or [ his ] their authorized representative and shall show [ his ] their name 44 and place of business, the minor's name, the number of days per week and 45 the number of hours per day and per week during which [ he ] they will be 46 employed, the hours of the beginning and the ending of work, and the 47 nature and type of the employment. 48 § 13. Section 3223 of the education law, as amended by chapter 1017 of 49 the laws of 1971, is amended to read as follows: 50 § 3223. Duties of employers. The employer of any minor required to 51 have an employment certificate: 52 1. Shall [ satisfy himself ] personally confirm that the minor present- 53 ing an employment certificate is in fact the minor named therein. 54 2. Shall before employment begins, physically or electronically file 55 at the place of the minor's employment such certificate so that it may 56 be readily accessible to any authorized person to examine such document. S. 3006--C 65 A. 3006--C

1 3. Shall, upon termination of the minor's employment, [ return the 2 employment certificate to the minor ] destroy any physical or electronic 3 copies of such certificate . 4 § 14. Section 3224 of the education law, as added by chapter 975 of 5 the laws of 1966, is amended to read as follows: 6 § 3224. Temporary services. a. If an employer is engaged in a busi- 7 ness of assigning employees for temporary services at another establish- 8 ment, and the employer compensates the employee for such services 9 rendered the employer shall keep on file [ in his office ] physically in 10 office or electronically and readily accessible the employment certif- 11 icate and shall cause to be delivered to each establishment where the 12 child will perform [ his ] the services a true copy of such employment 13 certificate. Such delivery shall be deemed compliance with sections 14 thirty-two hundred sixteen and thirty-two hundred twenty-three of this 15 [ chapter ] part and section one hundred thirty-five of the labor law . The 16 owner of each establishment to which the child is assigned shall [ keep 17 on file in his office such ] also retain a copy of the employment certif- 18 icate[ , which shall be deemed compliance with sections thirty-two 19 hundred sixteen and thirty-two hundred twenty-three of this chapter, ] 20 and shall return such copy to the employer at the conclusion of the 21 child's assignment. Such employer shall note on the original employment 22 certificate the existence of each copy. 23 b. As used in this section, the term "establishment" includes a facto- 24 ry, mercantile establishment, business office, restaurant, hotel and any 25 other trade, business or service. 26 c. The commissioner of education may promulgate rules and regulations 27 as [ he deems ] they deem necessary to [ insure ] ensure that employment 28 under the provisions of this section shall not be harmful or undesirable 29 from the point of view of the welfare, development, or proper education 30 of the child. 31 § 15. Sections 3225, 3227, and 3228 of the education law are REPEALED. 32 § 16. Section 3226 of the education law, as added by chapter 975 of 33 the laws of 1966, is amended to read as follows: 34 § 3226. Farm work permits. 1. A farm work permit may be issued to a 35 minor fourteen or fifteen years of age authorizing employment in farm 36 service. 37 2. A farm work permit also may be issued to a minor over twelve years 38 of age for employment in assisting in the hand work harvest of berries, 39 fruits and vegetables pursuant to paragraph e of subdivision two of 40 section one hundred thirty of the labor law. 41 3. To obtain a farm work permit a minor shall present to the issuing 42 officer the following: 43 a. Evidence of age; and 44 b. Written consent of the [ parent or guardian; and 45 c. A certificate of physical fitness ] person in parental relation as 46 defined in section thirty-two hundred twelve of this article . 47 4. Such permit shall be valid only when signed by the employer and 48 subject only to the condition that it shall not be valid for work in or 49 in connection with a factory. 50 5. A farm work permit shall not be required for the employment of a 51 minor sixteen years of age or over in farm service. 52 § 17. This act shall take effect two years after it shall have become 53 a law. Effective immediately, the addition, amendment and/or repeal of 54 any rule or regulation necessary for the implementation of this act on 55 its effective date are authorized to be made and completed on or before 56 such date. S. 3006--C 66 A. 3006--C

1 PART Y

2 Section 1. The section heading, paragraphs (a), (b) and (c) of subdi- 3 vision 1, paragraphs (a), (b) and (c) of subdivision 2, and paragraphs 4 (a), (b) and (c) of subdivision 3 of section 26 of the veterans' 5 services law are amended to read as follows: 6 Payment to [ parents ] immediate family members of veterans. 7 (a) (i) A parent, spouse, or minor child identified in 10 USC 1126 as 8 a gold star parent, spouse, or minor child; or (ii) a parent, spouse, or 9 minor child of a veteran who [ heretofore has died or a parent of a 10 veteran dying hereafter ] died while on active duty , shall upon applica- 11 tion to the state commissioner, be paid an annual annuity out of the 12 treasury of the state for the sum of five hundred dollars for such term 13 as such parent , spouse, or minor child shall be entitled thereto under 14 the provisions of this article. Commencing in the year two thousand 15 nineteen, the amount of any annuity payable under this section shall be 16 the same amount as the annuity payable in the preceding year plus a 17 percentage adjustment equal to the annual percentage increase, if any, 18 for compensation and pension benefits administered by the United States 19 Department of Veterans Affairs in the previous year. Such percentage 20 increase shall be rounded up to the next highest one-tenth of one 21 percent and shall not be less than one percent nor more than four 22 percent. The commissioner of veterans' services, not later than February 23 first of each year, shall publish by any reasonable means, including but 24 not limited to posting on the department's website, the amount of the 25 annuity as adjusted payable under this section. The term "parent" for 26 the purposes of this section includes mother, father, stepmother, step- 27 father, mother through adoption and father through adoption. The term 28 "spouse" for the purposes of this section means a person who was the 29 spouse or domestic partner of the veteran at the time of such veteran's 30 death regardless of whether such person has remarried or entered into a 31 new domestic partnership since such veteran's death. The term "minor 32 child" for the purposes of this section means a person who is under the 33 age of eighteen years, or who, after attaining the age of eighteen years 34 and until completion of education or training, but not after attaining 35 the age of twenty-three years, is pursuing a course of instruction at an 36 approved educational institution and who is the biological, step, or 37 adopted child of a veteran. The term "active duty" for purposes of this 38 section shall have the same meaning as such term is defined in section 39 101 of title 38 of the United States code, and shall also include any 40 period of active duty for training during which the individual concerned 41 died from a disease or injury incurred or aggravated in the line of 42 duty, or any period of inactive duty training during which the individ- 43 ual concerned died from an injury incurred or aggravated in the line of 44 duty or from an acute myocardial infarction, a cardiac arrest, or a 45 cerebrovascular accident which occurred during such training. The terms 46 "active duty for training" and "inactive duty training" for the purposes 47 of this section shall have the same meaning as such terms are defined in 48 section 101 of title 38 of the United States code. 49 (b) The entitlement of any parent , spouse, or minor child to receive 50 the annuity provided by paragraph (a) of this subdivision shall termi- 51 nate upon [ his or her ] such parent's, spouse's, or minor child's death 52 or upon [ his or her ] such parent's, spouse's, or minor child's ceasing 53 to continue to be a resident of and domiciled in the state of New York, 54 but such entitlement may be reinstated upon application to the state 55 commissioner, if such parent , spouse, or minor child shall thereafter S. 3006--C 67 A. 3006--C

1 resume [ his or her ] such parent's, spouse's, or minor child's residence 2 and domicile in the state. 3 (c) The effective date of an award of the annuity to a parent , spouse, 4 or minor child shall be the day after the date of death of the veteran 5 if the application therefor is received within one year from date of 6 death. If the application is received after the expiration of the first 7 year following the date of the death of the veteran, the effective date 8 of an award of the annuity to a parent , spouse, or minor child shall be 9 the date of receipt of the application by the state commissioner. If the 10 application is denied but is granted at a later date upon an application 11 for reconsideration based upon new evidence, the effective date of the 12 award of the annuity to a parent , spouse, or minor child shall be the 13 date of the receipt of the application for reconsideration by the state 14 commissioner. 15 (a) Any gold star parent , spouse, or minor child , [ who is the parent ] 16 of a deceased veteran, [ and ] or a parent, spouse, or minor child of a 17 veteran pursuant to subparagraph (ii) of paragraph (a) of subdivision 18 one of this section, who is a resident of and domiciled in the state of 19 New York, [ shall ] may make application to the department. 20 (b) No entitlement shall be paid under this section to or for a gold 21 star parent , spouse, or minor child, or a parent, spouse, or minor child 22 of a veteran pursuant to subparagraph (ii) of paragraph (a) of subdivi- 23 sion one of this section, who is in prison in a federal, state, or local 24 penal institution as a result of conviction of a felony or misdemeanor 25 for any part of the period beginning sixty-one days after [ his or her ] 26 such parent's, spouse's, or minor child's imprisonment begins and ending 27 with [ his or her ] such parent's, spouse's, or minor child's release. 28 (c) Where one or more gold star parents , spouse, or minor children, or 29 parents, spouse, or minor children of a veteran pursuant to subparagraph 30 (ii) of paragraph (a) of subdivision one of this section, are disquali- 31 fied for the annuity for a period under paragraph (b) of this subdivi- 32 sion, the state commissioner shall pay the shares of such disqualified 33 parents , spouse, or minor children to the other parents or minor chil- 34 dren , if they meet the qualifications on their own. 35 (a) Evidence of the military service of the deceased veteran [ of the 36 gold star parent ] for each case shall be furnished in the manner and 37 form prescribed by the state commissioner. 38 (b) Upon being satisfied that such service was honorable, that other 39 facts and statements in the application of such gold star parent , 40 spouse, or minor child or parent, spouse, or minor child of a veteran 41 pursuant to subparagraph (ii) of paragraph (a) of subdivision one of 42 this section, are true, the state commissioner shall certify to the 43 state comptroller the name and address of such gold star parent , spouse, 44 or minor child, or parent, spouse, or minor child of a veteran pursuant 45 to subparagraph (ii) of paragraph (a) of subdivision one of this 46 section . 47 (c) Thereafter, the department of taxation and finance, on the audit 48 and warrant of the comptroller, shall pay such gold star parent , spouse, 49 or minor child, or parent, spouse, or minor child of a veteran pursuant 50 to subparagraph (ii) of paragraph (a) of subdivision one of this 51 section, such sum as is authorized by the provisions of this section in 52 semi-annual installments for so long as such qualified gold star parent , 53 spouse, or minor child, or parent, spouse, or minor child of a veteran 54 pursuant to subparagraph (ii) of paragraph (a) of subdivision one of 55 this section, shall meet the requirements of this section. S. 3006--C 68 A. 3006--C

1 § 1-a. The commissioner of veterans' services shall conduct an 2 outreach program for the purpose of informing the public and persons who 3 may be eligible to receive an annuity under section 26 of the veterans' 4 services law of the amendments made to such section by section one of 5 this act. Such outreach activities shall include, but not be limited to, 6 an announcement on the department of veterans' services official website 7 and, to the extent practicable, making contact with any parent, spouse, 8 domestic partner or minor child of a service member known to have died 9 on active duty prior to the effective date of this act and subsequent to 10 such date, to inform such persons of their potential eligibility to 11 receive an annuity and to offer assistance in preparing an application 12 for such benefit. The commissioner of veterans' services may seek the 13 assistance of the division of military and naval affairs and federal 14 military authorities in identifying persons who may be eligible to 15 receive an annuity under section 26 of the veterans' services law. 16 § 2. This act shall take effect immediately.

17 PART Z

18 Intentionally Omitted

19 PART AA

20 Section 1. On or before September 1, 2025, the commissioner of educa- 21 tion shall submit a report to the governor, the speaker of the assembly, 22 and the temporary president of the senate providing information regard- 23 ing usage, budgeting, staffing, assets, and functions of the New York 24 state museum in a form and manner as determined by the director of the 25 budget. Such report shall include but not be limited to the following 26 information: 27 1. Annual statistics for state fiscal years 2004-05 through 2024-25 28 for the following categories: 29 (a) visitorship by month; 30 (b) philanthropic donations, either monetary or in-kind; 31 (c) school student visitorship; 32 (d) marketing, advertising, and promotional expenditures; 33 (e) staffing levels and expenditures for each office of the museum; 34 (f) capital expenditures; 35 (g) museum revenue from sources other than state aid; and 36 (h) balance of total revenues and operating expenses; 37 2. A summary of current agreements with other cultural institutions 38 regarding loan or exchange of collections; 39 3. Current collections on display and length of time on display; 40 4. Current collections in possession of the museum but not on display; 41 5. New collections scheduled to go on display in the next five years; 42 6. A listing of special events, exhibitions, tours, limited or travel- 43 ing displays, and other events not included in information regarding 44 normal displayed collections over the prior five years; 45 7. A listing of any ancillary services provided at the museum, includ- 46 ing but not limited to food service, retail, or walking tours; and 47 8. Usage over the prior five years of the state museum collection by 48 federal agencies, New York state agencies, local governments, and other 49 governmental entities, whether for display or research purposes. 50 § 2. On or before September 1, 2026 and annually thereafter, the 51 commissioner shall submit a report to the governor, the speaker of the S. 3006--C 69 A. 3006--C

1 assembly, and the temporary president of the senate including updated 2 information from the prior state fiscal year supplementing the informa- 3 tion provided in the report required by section one of this act. 4 § 3. This act shall take effect immediately.

5 PART BB

6 Section 1. Subdivisions 1 and 3 of section 592 of the labor law, as 7 amended by chapter 20 of the laws of 2020, are amended to read as 8 follows: 9 1. Industrial controversy. (a) The accumulation of benefit rights by a 10 claimant shall be suspended during a period of [ two consecutive weeks ] 11 one week beginning with the day after such claimant lost [ his or her ] 12 their employment because of a strike or other industrial controversy 13 except for lockouts, including concerted activity not authorized or 14 sanctioned by the recognized or certified bargaining agent of the claim- 15 ant, and other concerted activity conducted in violation of any existing 16 collective bargaining agreement, in the establishment in which [ he or 17 she ] such claimant was employed, except that benefit rights may be accu- 18 mulated before the expiration of such [ two ] one week period beginning 19 with the day after such strike or other industrial controversy was 20 terminated. 21 (b) Benefits shall not be suspended under this section if: 22 (i) The employer hires a permanent replacement worker for the employ- 23 ee's position. A replacement worker shall be presumed to be permanent 24 unless the employer certifies in writing that the employee will be able 25 to return to [ his or her ] such employee's prior position upon conclusion 26 of the strike, in the event the strike terminates prior to the conclu- 27 sion of the employee's eligibility for benefit rights under this chap- 28 ter. In the event the employer does not permit such return after such 29 certification, the employee shall be entitled to recover any benefits 30 lost as a result of the [ two ] one week suspension of benefits, and the 31 department may impose a penalty upon the employer of up to seven hundred 32 fifty dollars per employee per week of benefits lost. The penalty 33 collected shall be paid into the unemployment insurance control fund 34 established pursuant to section five hundred fifty-two-b of this arti- 35 cle; or 36 (ii) The commissioner determines that the claimant: 37 (A) is not employed by an employer that is involved in the industrial 38 controversy that caused [ his or her ] such claimant's unemployment and is 39 not participating in the industrial controversy; or 40 (B) is not in a bargaining unit involved in the industrial controversy 41 that caused [ his or her ] such claimant's unemployment and is not partic- 42 ipating in the industrial controversy. 43 3. Terms of suspension. No waiting period may be served during a 44 suspension period. 45 The suspension of accumulation of benefit rights shall not be termi- 46 nated by subsequent employment of the claimant irrespective of when the 47 claim is filed except as provided in subdivision one of this section and 48 shall not be confined to a single benefit year. 49 A "week" as used in subdivision one of this section means any seven 50 consecutive calendar days. 51 § 2. This act shall take effect immediately.

52 PART CC S. 3006--C 70 A. 3006--C

1 Section 1. Section 410-y of the social services law, as added by 2 section 52 of part B of chapter 436 of the laws of 1997, is amended to 3 read as follows: 4 § 410-y. Maintenance of effort. 1. Each social services district shall 5 maintain the amount of local funds spent for child care assistance under 6 the child care block grant at a level equal to or greater than the 7 amount the district spent for child care assistance during federal 8 fiscal year nineteen hundred ninety-five under title IV-A of the federal 9 social security act, the federal child care development block grant 10 program and the state low income child care program ; provided however, a 11 social services district for a city of a population of a million or more 12 shall spend local funds for child care assistance at an amount no less 13 than three hundred twenty-eight million dollars . 14 2. If the state fails to meet the level of state and local child care 15 funding necessary to maintain the federal matching funds for child care 16 assistance available under title IV-a of the federal social security 17 act, the state shall withhold funding from those social services 18 districts which spent a lower amount of local funds for child care 19 assistance than the amount [ they spent during federal fiscal year nine- 20 teen hundred ninety-five ] required by subdivision one of this section , 21 based on a formula established in department regulations, equal to the 22 amount of the matching funds which have been lost. 23 § 2. This act shall take effect October 1, 2025.

24 PART DD

25 Section 1. The penal law is amended by adding a new section 205.35 to 26 read as follows: 27 § 205.35 Evading arrest by concealment of identity. 28 A person is guilty of evading arrest by concealment of identity when, 29 in the course of the commission of a felony or class A misdemeanor or in 30 the immediate flight therefrom, such person wears a mask or facial 31 covering or otherwise obscures their face, completely or partially, for 32 no legitimate purpose with the intent to prevent their identification, 33 apprehension, or arrest for such crime. 34 Evading arrest by concealment of identity is a class B misdemeanor. 35 § 2. This shall take effect on the thirtieth day after it shall have 36 become a law.

37 PART EE

38 Section 1. Subparagraph (iv) of paragraph (d) of subdivision 1 of 39 section 803 of the correction law, as separately amended by chapters 242 40 and 322 of the laws of 2021, is amended to read as follows: 41 (iv) Such merit time allowance may be granted when an incarcerated 42 individual successfully participates in the work and treatment program 43 assigned pursuant to section eight hundred five of this article and when 44 such incarcerated individual obtains a general equivalency diploma, an 45 alcohol and substance abuse treatment certificate, a vocational trade 46 certificate following at least six months of vocational programming, at 47 least eighteen credits in a program registered by the state education 48 department from a degree-granting higher education institution or 49 performs at least four hundred hours of service as part of a community 50 work crew. The commissioner may designate additional programs and 51 achievements for which merit time may be granted. S. 3006--C 71 A. 3006--C

1 Such allowance shall be withheld for any serious disciplinary infrac- 2 tion or upon a judicial determination that the person, while an incar- 3 cerated individual, commenced or continued a civil action, proceeding or 4 claim that was found to be frivolous as defined in subdivision (c) of 5 section eight thousand three hundred three-a of the civil practice law 6 and rules, or an order of a federal court pursuant to rule 11 of the 7 federal rules of civil procedure imposing sanctions in an action 8 commenced by a person, while an incarcerated individual, against a state 9 agency, officer or employee. 10 § 2. Subparagraph (xii) of paragraph (c) of subdivision 1 of section 11 803-b of the correction law, as amended by chapter 322 of the laws of 12 2021, is amended and a new subparagraph (xiii) is added to read as 13 follows: 14 (xii) receives a certificate from the food production center in an 15 assigned position following the completion of no less than eight hundred 16 hours of work in such position, and continues to work for an additional 17 eighteen months at the food production center[ . ] ; or 18 (xiii) successfully completes a program of not less than eighteen 19 months as established by the commissioner. 20 § 3. This act shall take effect on the one hundred twentieth day 21 after it shall have become a law and shall apply to offenses committed 22 prior to, on or after the effective date of this act; provided that the 23 amendments to section 803 of the correction law made by section one of 24 this act shall be subject to the expiration and reversion of such 25 section pursuant to subdivision d of section 74 of chapter 3 of the laws 26 of 1995, as amended.

27 PART FF

28 Section 1. Definitions. As used in this act: 29 (a) "Commissioner" shall mean the commissioner of education; 30 (b) "Department" shall mean the state education department; 31 (c) "Board of education" or "board" shall mean the board of education 32 of the Mount Vernon city school district; 33 (d) "School district" or "district" shall mean the Mount Vernon city 34 school district; 35 (e) "Superintendent" shall mean the superintendent of the Mount Vernon 36 city school district; and 37 (f) "Relatives" shall mean a Mount Vernon city school district board 38 member's spouse, domestic partner, child, stepchild, stepparent, or any 39 person who is a direct descendant of the grandparents of a current board 40 member or a board member's spouse or domestic partner. 41 § 2. Appointment of a monitor. The commissioner shall appoint one 42 monitor to provide oversight, guidance and technical assistance related 43 to the educational and fiscal policies, practices, programs and deci- 44 sions of the school district, the board of education and the superinten- 45 dent. 46 (a) The monitor, to the extent practicable, shall have experience in 47 school district finances and one or more of the following areas: 48 (i) elementary and secondary education; 49 (ii) the operation of school districts in New York; 50 (iii) educating students with disabilities; and 51 (iv) educating English language learners. 52 (b) The monitor shall be a non-voting ex-officio member of the board 53 of education. The monitor shall be an individual who is not a resident, S. 3006--C 72 A. 3006--C

1 employee of the school district or relative of a board member of the 2 school district at the time of their appointment. 3 (c) The reasonable and necessary expenses incurred by the monitor 4 while performing their official duties shall be paid by the school 5 district. Notwithstanding any other provision of law, the monitor shall 6 be entitled to defense and indemnification by the school district to the 7 same extent as a school district employee. 8 § 3. Meetings. (a) The monitor shall be entitled to attend all meet- 9 ings of the board, including executive sessions; provided however, such 10 monitor shall not be considered for purposes of establishing a quorum of 11 the board. The school district shall fully cooperate with the monitor 12 including, but not limited to, providing such monitor with access to any 13 necessary documents and records of the district including access to 14 electronic information systems, databases and planning documents, 15 consistent with all applicable state and federal statutes including, but 16 not limited to, Family Education Rights and Privacy Act (FERPA) (20 17 U.S.C. § 1232g) and section 2-d of the education law. 18 (b) The board, in consultation with the monitor, shall adopt a 19 conflict of interest policy that complies with all existing applicable 20 laws, rules and regulations that ensures its board members and adminis- 21 tration act in the school district's best interest and comply with 22 applicable legal requirements. The conflict of interest policy shall 23 include, but not be limited to: 24 (i) a definition of the circumstances that constitute a conflict of 25 interest; 26 (ii) procedures for disclosing a conflict of interest to the board; 27 (iii) a requirement that the person with the conflict of interest not 28 be present at or participate in board deliberations or votes on the 29 matter giving rise to such conflict, provided that nothing in this 30 subdivision shall prohibit the board from requesting that the person 31 with the conflict of interest present information as background or 32 answer questions at a board meeting prior to the commencement of delib- 33 erations or voting relating thereto; 34 (iv) a prohibition against any attempt by the person with the conflict 35 to influence improperly the deliberation or voting on the matter giving 36 rise to such conflict; and 37 (v) a requirement that the existence and resolution of the conflict be 38 documented in the board's records, including in the minutes of any meet- 39 ing at which the conflict was discussed or voted upon. 40 § 4. Public hearings. (a) The monitor shall schedule three public 41 hearings to be held within sixty days of their appointment, which shall 42 allow public comment from the district's residents, students, parents, 43 employees, board members and administration. 44 (i) The first hearing shall take public comment on existing statutory 45 and regulatory authority of the commissioner, the department and the 46 board of regents regarding school district governance and intervention 47 under applicable state law and regulations, including but not limited 48 to, sections 306, 211-c, and 211-f of the education law. 49 (ii) The second hearing shall take public comment on the academic 50 performance of the district. 51 (iii) The third hearing shall take public comment on the fiscal 52 performance of the district. 53 (b) The board of education and the monitor shall consider these public 54 comments when developing the financial plan and academic improvement 55 plan under this act. S. 3006--C 73 A. 3006--C

1 § 5. Financial plan. (a) No later than November 1, 2025, the board of 2 education and the monitor shall develop a proposed financial plan for 3 the 2025--2026 school year and the four subsequent school years. The 4 financial plan shall ensure that annual aggregate operating expenses 5 shall not exceed annual aggregate operating revenues for such school 6 year and that the major operating funds of the district be balanced in 7 accordance with generally accepted accounting principles. The financial 8 plan shall include statements of all estimated revenues, expenditures, 9 and cash flow projections of the district. 10 (b) If the board of education and the monitor agree on all the 11 elements of the proposed financial plan, the board of education shall 12 conduct a public hearing on the plan and consider the input of the 13 community. The proposed financial plan shall be made public on the 14 district's website at least three business days before such public hear- 15 ing. Once the proposed financial plan has been approved by the board of 16 education, such plan shall be submitted by the monitor to the commis- 17 sioner for approval and shall be deemed approved for the purposes of 18 this act. 19 (c) If the board of education and the monitor do not agree on all the 20 elements of the proposed financial plan, the board of education shall 21 conduct a public hearing on the proposed plan that details the elements 22 of disagreement between the monitor and the board, including documented 23 justification for such disagreements and any requested amendments from 24 the monitor. The proposed financial plan, elements of disagreement, and 25 requested amendments shall be made public on the district's website at 26 least three business days before such public hearing. After considering 27 the input of the community, the board may alter the proposed financial 28 plan and the monitor may alter their requested amendments, and the moni- 29 tor shall submit the proposed financial plan, their amendments to the 30 plan, and documentation providing justification for such disagreements 31 and amendments to the commissioner no later than December 1, 2025. By 32 January 15, 2026, the commissioner shall approve the proposed plan with 33 any of the monitor's proposed amendments, or make other modifications, 34 such commissioner deems appropriate. The board of education shall 35 provide the commissioner with any information such commissioner requests 36 to approve such plan within three business days of such request. Upon 37 the approval of the commissioner, the financial plan shall be deemed 38 approved for purposes of this act. 39 § 6. Academic improvement plan. (a) No later than November 1, 2025, 40 the board of education and the monitor shall develop an academic 41 improvement plan for the district's 2025--2026 school year and the four 42 subsequent school years. The academic improvement plan shall contain a 43 series of programmatic recommendations designed to improve academic 44 performance over the period of the plan in those academic areas that the 45 commissioner deems to be in need of improvement which shall include 46 addressing the provisions contained in any action plan set forth by the 47 department. 48 (b) If the board of education and the monitor agree on all the 49 elements of the proposed academic improvement plan, the board of educa- 50 tion shall conduct a public hearing on the plan and consider the input 51 of the community. The proposed academic improvement plan shall be made 52 public on the district's website at least three business days before 53 such public hearing. Once the proposed academic improvement plan has 54 been approved by the board of education, such plan shall be submitted by 55 the monitor to the commissioner for approval and shall be deemed 56 approved for the purposes of this act. S. 3006--C 74 A. 3006--C

1 (c) If the board of education and the monitor do not agree on all the 2 elements of the proposed academic improvement plan, the board of educa- 3 tion shall conduct a public hearing on the proposed plan that details 4 the elements of disagreement between the monitor and the board, includ- 5 ing documented justification for such disagreements and any requested 6 amendments from the monitor. The proposed academic improvement plan, 7 elements of disagreement, and requested amendments shall be made public 8 on the district's website at least three business days before such 9 public hearing. After considering the input of the community, the board 10 may alter the proposed academic improvement plan and the monitor may 11 alter their requested amendments, and the monitor shall submit the 12 proposed academic improvement plan, their amendments to the plan, and 13 documentation providing justification for such disagreements and amend- 14 ments to the commissioner no later than December 1, 2025. By January 15, 15 2026, the commissioner shall approve the proposed plan with any of the 16 monitor's proposed amendments, or make other modifications, such commis- 17 sioner deems appropriate. The board of education shall provide the 18 commissioner with any information such commissioner requests to approve 19 such plan within three business days of such request. Upon the approval 20 of the commissioner, the academic improvement plan shall be deemed 21 approved for purposes of this act. 22 § 7. Fiscal and operational oversight. (a) The board of education 23 shall annually submit the school district's proposed budget for the next 24 succeeding school year to the monitor no later than March first prior to 25 the school district's annual budget vote. The monitor shall review the 26 proposed budget to ensure that it is balanced within the context of 27 revenue and expenditure estimates and mandated programs. The monitor 28 shall also review the proposed budget to ensure that it, to the greatest 29 extent possible, is consistent with the district academic improvement 30 plan and financial plan developed and approved pursuant to this act. The 31 monitor shall present their findings to the board of education and the 32 commissioner no later than forty-five days prior to the date scheduled 33 for the school district's annual budget vote. The commissioner shall 34 require the board of education to make amendments to the proposed budget 35 consistent with any recommendations made by the monitor if the commis- 36 sioner determines such amendments are necessary to comply with the 37 financial plan and academic improvement plan under this act. The school 38 district shall make available on the district's website: the initial 39 proposed budget, the monitor's findings, and the final proposed budget 40 at least seven days prior to the date of the school district's budget 41 hearing. In the event of a revote, the board of education, in conjunc- 42 tion with the monitor, shall develop and submit the school district's 43 proposed budget for the next succeeding school year to the commissioner 44 no later than seven days prior to the budget hearing. The board of 45 education shall provide the commissioner with any information such 46 commissioner requests in order to make a determination pursuant to this 47 subdivision within three business days of such request. 48 (b) The district shall provide quarterly reports to the monitor and 49 annual reports to the commissioner and board of regents on the academic, 50 fiscal, and operational status of the school district. In addition, the 51 monitor shall provide semi-annual reports to the commissioner, board of 52 regents, the governor, the temporary president of the senate, and the 53 speaker of the assembly on the academic, fiscal, and operational status 54 of the school district. Such semi-annual report shall include all the 55 contracts that the district entered into throughout the year. S. 3006--C 75 A. 3006--C

1 (c) The monitor shall have the authority to disapprove travel outside 2 the state paid for by the district. 3 (d) The monitor shall work with the district's shared decision-making 4 committee as defined in 8 NYCRR 100.11 in developing the academic 5 improvement plan, financial plan, district goals, implementation of 6 district priorities and budgetary recommendations. 7 (e) The monitor shall assist in resolving any disputes and conflicts, 8 including but not limited to, those between the superintendent and the 9 board of education and among the members of the board of education. 10 (f) The monitor may recommend, and the board shall consider by vote of 11 a resolution at the next scheduled meeting of the board, cost saving 12 measures including, but not limited to, shared service agreements. 13 § 8. The commissioner may overrule any decision of the monitor, except 14 for collective bargaining agreements negotiated in accordance with arti- 15 cle 14 of the civil service law, if such commissioner deems that such 16 decision is not aligned with the financial plan, academic improvement 17 plan, or the school district's budget. 18 § 9. The monitor may notify the commissioner and the board in writing 19 when such monitor deems the district is violating an element of the 20 financial plan or academic improvement plan under this act. Within twen- 21 ty days, the commissioner shall determine whether the district is in 22 violation of any of the elements of the plans highlighted by the monitor 23 and shall order the district to comply immediately with the plans and 24 remedy any such violation. The school district shall suspend all actions 25 related to the potential violation of the financial plan or academic 26 improvement plan until the commissioner issues a determination. 27 § 10. Nothing in this section shall be construed to abrogate the 28 duties and responsibilities of the school district consistent with 29 applicable state law and regulations. 30 § 11. The Mount Vernon city school district shall be paid on an accel- 31 erated schedule as follows: 32 (a) (i) Notwithstanding any other provisions of law, for aid payable 33 in the school years 2024-2025 through 2053-2054 upon application to the 34 commissioner of education submitted not sooner than the second Monday in 35 June of the school year in which such aid is payable and not later than 36 the Friday following the third Monday in June of the school year in 37 which such aid is payable, the Mount Vernon city school district shall 38 be eligible to receive an apportionment pursuant to this section in an 39 amount equal to the product of up to eight million dollars ($8,000,000) 40 and the quotient of the positive difference of thirty minus the number 41 of school years elapsed since the 2024-2025 school year divided by thir- 42 ty, provided, however, that for the 2024-2025 school year such applica- 43 tion shall be submitted no later than May 11, 2025. 44 (ii) Funds apportioned pursuant to this subdivision shall be used for 45 services and expenses of the Mount Vernon city school district and shall 46 be applied to support of its educational programs and any liability 47 incurred by such city school district in carrying out its functions and 48 responsibilities under the education law. 49 (b) The claim for an apportionment to be paid to the Mount Vernon city 50 school district pursuant to subdivision (a) of this section shall be 51 submitted to the commissioner of education on a form prescribed for such 52 purpose, and shall be payable upon determination by such commissioner 53 that the form has been submitted as prescribed and that the school 54 district has complied with the reporting requirements of this section. 55 For each school year in which application is made pursuant to subdivi- 56 sion (a) of this section, such approved amount shall be payable on or S. 3006--C 76 A. 3006--C

1 before June thirtieth of such school year upon the audit and warrant of 2 the state comptroller on vouchers certified or approved by the commis- 3 sioner of education in the manner prescribed by law from moneys appro- 4 priated for general support of public schools, provided, however, that 5 for the 2024-2025 school year such approved amount shall be payable on 6 or before May 20, 2025. 7 (c) Notwithstanding the provisions of section 3609-a of the education 8 law, an amount equal to the amount paid to the Mount Vernon city school 9 district during the base year pursuant to subdivisions (a) and (b) of 10 this section shall first be deducted from general aid payments due 11 during the current school year pursuant to subparagraphs (1), (2), (3), 12 (4) and (5) of paragraph a of subdivision 1 of section 3609-a of the 13 education law from the fixed fall payments payable pursuant to subpara- 14 graph (4) of such paragraph, and any remainder to be deducted from the 15 individualized payments due to the district pursuant to paragraph b of 16 such subdivision shall be deducted on a chronological basis starting 17 with the earliest payment due the district. 18 (d) Notwithstanding any other provisions of law, the sum of payments 19 made to the Mount Vernon city school district during the base year 20 pursuant to subdivisions (a) and (b) of this section plus payments made 21 to such school district during the current year pursuant to section 22 3609-a of the education law shall be deemed to truly represent all aids 23 paid to such school district during the current school year pursuant to 24 such section 3609-a for the purposes of computing any adjustments to 25 such aids that may occur in a subsequent school year. 26 (e) (i) On or before the first day of each month beginning in July 27 2025 and ending in June 2054, the chief fiscal officer and the super- 28 intendent of schools of the Mount Vernon city school district shall 29 prepare and submit to the board of education a report of the fiscal 30 condition of the school district, including but not limited to the most 31 current available data on fund balances on funds maintained by the 32 school district and the district's use of the apportionments provided 33 pursuant to subdivisions (a) and (b) of this section. 34 (ii) Such monthly report shall be in a format prescribed by the 35 commissioner of education. The board of education shall either reject 36 and return the report to the chief fiscal officer and the superintendent 37 of schools for appropriate revisions and resubmittal or shall approve 38 the report and submit copies to the commissioner of education and the 39 state comptroller of such approved report as submitted or resubmitted. 40 (iii) In the 2024-2025 through 2053-2054 school years, the chief 41 fiscal officer of the Mount Vernon city school district shall monitor 42 all budgets and for each budget, shall prepare a quarterly report of 43 summarized budget data depicting overall trends of actual revenues and 44 budget expenditures for the entire budget as well as individual line 45 items. Such report shall compare revenue estimates and appropriations as 46 set forth in such budget with the actual revenues and expenditures made 47 to date. All quarterly reports shall be accompanied by a recommendation 48 from the superintendent of schools or chief fiscal officer to the board 49 of education setting forth any remedial actions necessary to resolve any 50 unfavorable budget variance including the overestimation of revenue and 51 underestimation of appropriations. The chief fiscal officer shall also 52 prepare, as part of such report, a quarterly trial balance of general 53 ledger accounts in accordance with generally accepted accounting princi- 54 ples as prescribed by the state comptroller. All reports shall be 55 completed within sixty days after the end of each quarter and shall be 56 submitted to the chief fiscal officer and the board of education of the S. 3006--C 77 A. 3006--C

1 Mount Vernon city school district, the state division of budget, the 2 office of the state comptroller, the commissioner of education, the 3 chair of the assembly ways and means committee and the chair of the 4 senate finance committee. 5 § 12. This act shall take effect immediately, provided, however, that: 6 (a) sections one through ten of this act shall expire and be deemed 7 repealed June 30, 2027; and 8 (b) section eleven of this act shall expire and be deemed repealed 9 June 30, 2054.

10 PART GG

11 Section 1. The general business law is amended by adding a new section 12 352-eeeee to read as follows: 13 § 352-eeeee. Conversions to condominium ownership for the preservation 14 of expiring affordable housing in the city of New York. 1. As used in 15 this section, the following words and terms shall have the following 16 meanings: 17 (a) "Annual update amendment". An annual update amendment is an amend- 18 ment to the preservation plan that shall be submitted to the attorney 19 general every year that a dwelling unit is unsold, with the first such 20 annual update amendment due within forty-five days of the anniversary of 21 the acceptance of the post-closing amendment to the preservation plan. 22 An annual update amendment shall supply the evidence, data and informa- 23 tion required in this section, and such other information as the attor- 24 ney general's regulations shall require, so that the attorney general is 25 satisfied that the preservation plan as amended discloses the informa- 26 tion necessary for a reasonable investor to make their purchase decision 27 and that the preservation plan is otherwise complete, current and accu- 28 rate. 29 (b) "Bona fide purchaser". A bona fide purchaser is either (i) a 30 tenant in occupancy who enters into a purchase agreement for a dwelling 31 unit pursuant to their or its exercise of one of the rights accorded to 32 tenants in occupancy in subdivision five of this section, or (ii) a bona 33 fide non-tenant purchaser. 34 (c) "Bona fide non-tenant purchaser". A bona fide non-tenant purchaser 35 is a purchaser of a dwelling unit who has represented that they or a 36 member or members of their immediate family intend to occupy the dwell- 37 ing unit when it becomes vacant. A bona fide non-tenant purchaser shall 38 not include any purchaser who is an offeror, the selling agent, or the 39 managing agent or is a principal of the offeror, the selling agent or 40 the managing agent or is related to the sponsor, the selling agent or 41 the managing agent or to any principal of the sponsor or the selling 42 agent or the managing agent by blood, marriage or adoption or as a busi- 43 ness associate, an employee, a shareholder or a limited partner; except 44 that such a purchaser other than the offeror or a principal of the spon- 45 sor may be included as a bona fide non-tenant purchaser if the offeror 46 has submitted proof satisfactory to the department of law establishing 47 that the purchaser is bona fide. 48 (d) "Commercially reasonable good faith effort". A commercially 49 reasonable good faith effort on the part of an offeror of a preservation 50 plan shall, at minimum, include (i) the filing of an annual update 51 amendment to the preservation plan; (ii) all of the condominium's dwell- 52 ing units other than any income-restricted rental units as the units 53 being offered for sale under the preservation plan, each at an offering 54 price that is consistent with comparable dwelling units recently sold S. 3006--C 78 A. 3006--C

1 within the locality; and (iii) entering into a written agreement with a 2 licensed real estate broker or selling agent in connection with the sale 3 of dwelling units offered for sale under the preservation plan. For the 4 avoidance of doubt, a commercially reasonable good faith effort shall 5 not require an offeror to sell dwelling units at a price substantially 6 below the market-rate for comparable units recently sold within the 7 locality, nor shall it require an offeror to offer for sale dwelling 8 units that are occupied by non-purchasing tenants. 9 (e) "Condominium". A condominium shall also include a qualified lease- 10 hold condominium as defined in subdivision twelve of section three 11 hundred thirty-nine-e of the real property law. 12 (f) "Consummation of the preservation plan". Consummation of the pres- 13 ervation plan shall refer to the filing of the declaration for the 14 condominium and the first transfer of title to at least one purchaser 15 under the preservation plan following a declaration of effectiveness by 16 the department of law declaring the preservation plan effective. 17 (g) "Eligible disabled persons". Non-purchasing tenants who have an 18 impairment which results from anatomical, physiological or psychological 19 conditions, other than addiction to alcohol, gambling, or any controlled 20 substance, which are demonstrable by medically acceptable clinical and 21 laboratory diagnostic techniques, and which are expected to be permanent 22 and which prevent the tenant from engaging in any substantial gainful 23 employment on the date the preservation plan is submitted to the depart- 24 ment of law or on the date the attorney general has accepted the preser- 25 vation plan for filing, and the spouses of any such tenants on such 26 date, and who have elected, within sixty days of the date the preserva- 27 tion plan is submitted to the department of law or on the date the 28 attorney general has accepted the preservation plan for filing, on forms 29 promulgated by the attorney general and presented to such tenants by the 30 offeror, to become non-purchasing tenants under the provisions of this 31 section; provided, however, that if the disability first occurs after 32 acceptance of the preservation plan for filing, then such election may 33 be made within sixty days following the onset of such disability unless 34 during the period subsequent to sixty days following the acceptance of 35 the preservation plan for filing but prior to such election, the offeror 36 accepts a written agreement to purchase the apartment from a bona fide 37 purchaser; and provided further that such election shall not preclude 38 any such tenant from subsequently purchasing the dwelling unit on the 39 terms then offered to tenants in occupancy. 40 (h) "Eligible project". An eligible project shall refer to a building 41 or group of buildings or development with one hundred or more dwelling 42 units built after nineteen hundred ninety-six that is the subject of a 43 preservation plan under this section, which shall meet the criteria set 44 forth in subdivision two of this section. An eligible project shall not 45 include any building or group of buildings or development owned under 46 article two, four or five of the private housing finance law. For the 47 avoidance of doubt, no building, group of buildings or development other 48 than an eligible project shall convert to condominium status under this 49 section, the status of which shall be confirmed by the relevant housing 50 finance agency prior to the date of submission of the preservation plan. 51 (i) "Eligible senior citizens". Non-purchasing tenants who are sixty- 52 two years of age or older on the date the preservation plan is submitted 53 to the department of law or on the date the attorney general has 54 accepted the preservation plan for filing, and the spouses of any such 55 tenants on such date, and who have elected, within sixty days of the 56 date the preservation plan is submitted to the department of law or on S. 3006--C 79 A. 3006--C

1 the date the attorney general has accepted the preservation plan for 2 filing, on forms promulgated by the attorney general and presented to 3 such tenants by the offeror, to become non-purchasing tenants under the 4 provisions of this section; provided that such election shall not 5 preclude any such tenant from subsequently purchasing the dwelling unit 6 on the terms then offered to tenants in occupancy. 7 (j) "Extended affordability term". The extended affordability term for 8 the income-restricted rental units shall be in perpetuity for so long as 9 the building or group of buildings or development are in existence, and 10 subject to any obligation to rebuild in the event of condemnation, 11 damage or destruction required by the regulatory agreement with the 12 relevant housing finance agency. 13 (k) "Inclusionary housing unit". An inclusionary housing unit is an 14 income-restricted rental unit that is located within a building that 15 received an increase in the maximum permitted floor area pursuant to 16 sections 23-154 and 23-90 of the zoning resolution or is located in a 17 mandatory inclusionary housing area, as such sections may be amended 18 from time to time. 19 (l) "Inclusionary housing designated area". An inclusionary housing 20 designated area is a specified area in which the inclusionary housing 21 program (also known as the voluntary inclusionary housing program) is 22 applicable, pursuant to the regulations set forth for such areas in 23 section 23-90 of the zoning resolution, as such section may be amended 24 from time to time. The locations of inclusionary housing designated 25 areas are identified in either (i) appendix "F" of the zoning resolution 26 or (ii) in a special purpose district as described in section 15-011 of 27 the zoning resolution, as such appendix or section may be amended from 28 time to time. 29 (m) "Income-restricted rental unit". An income-restricted rental unit 30 shall refer to a dwelling unit located in a building or group of build- 31 ings or development of an eligible project that is the subject of a 32 preservation plan submitted to the attorney general pursuant to this 33 section, and such dwelling unit: 34 (i) meets the definition of a "low-income unit" as such term is 35 defined in section forty-two of the internal revenue code and is subject 36 to a regulatory agreement with a relevant housing finance agency; or 37 (ii) meets the definition of a "low-income unit" as such term is 38 defined in subdivision (d) of section one hundred forty-two of the 39 internal revenue code and is subject to a regulatory agreement with a 40 relevant housing finance agency; or 41 (iii) previously met the definition of "low-income unit" pursuant to 42 subparagraph (i) or (ii) of this paragraph, and notwithstanding the 43 expiration of a regulatory agreement with a relevant housing finance 44 agency, the owner of such dwelling unit affirms, under the penalty of 45 perjury and provides other documentation to the satisfaction of the 46 relevant housing finance agency, that it has continuously operated and 47 rented the dwelling unit (A) as if it remained an income-restricted 48 rental unit and (B) as if all of the restrictions of the expired regula- 49 tory agreement had continuously been extended or otherwise remained in 50 effect; or 51 (iv) is a dwelling unit located within a building or group of build- 52 ings or development that, in accordance with provisions of subdivisions 53 one through fifteen of section four hundred twenty-one-a of the real 54 property tax law, the relevant housing finance agency shall have 55 required to be a unit affordable to families of low and moderate income; S. 3006--C 80 A. 3006--C

1 (v) is a dwelling unit that is rented to persons of low income or 2 families of low income as defined in subdivision nineteen of section two 3 of the private housing finance law or as otherwise required by a feder- 4 al, state, or local law or mandate; or 5 (vi) is a dwelling unit located in a building, group of buildings or 6 development subject to a regulatory agreement due to bond financing 7 provided by the relevant housing finance agency that required dwelling 8 units be affordable to families of low or moderate income. 9 (n) "Mandatory inclusionary housing area". A mandatory inclusionary 10 housing area is a specified area in which the inclusionary housing 11 program is applicable, pursuant to the regulations set forth for such 12 areas in section 23-90 of the zoning resolution, as such section may be 13 amended from time to time. The locations of mandatory inclusionary 14 housing areas are identified in either (i) appendix "F" of the zoning 15 resolution or (ii) in a special purpose district as described in section 16 15-011 of the zoning resolution, as such appendix or section may be 17 amended from time to time. 18 (o) "Non-purchasing tenant". A person who has not purchased under the 19 preservation plan from offeror and who is a tenant entitled to 20 possession at the time the preservation plan is declared effective or a 21 person to whom a dwelling unit is rented from offeror after the preser- 22 vation plan was declared effective, which solely for purposes of this 23 section, shall include any person who is a tenant regardless of whether 24 (i) such person was a tenant entitled to possession at the time the 25 preservation plan was declared effective, or (ii) such person rented a 26 dwelling unit from offeror after the preservation plan was declared 27 effective. A person who sublets a dwelling unit from a purchaser under 28 the preservation plan shall not be deemed a non-purchasing tenant. A 29 tenant entitled to possession of an income-restricted rental unit at the 30 time the preservation plan is declared effective or a person to whom an 31 income-restricted rental unit is rented from offeror or qualified owner 32 after the preservation plan is declared effective is a non-purchasing 33 tenant, notwithstanding that the income-restricted rental units are not 34 offered for sale pursuant to such preservation plan. 35 (p) "Post-closing amendment". A post-closing amendment is an amendment 36 to a preservation plan filed with the attorney general confirming that 37 the preservation plan has been consummated. A post-closing amendment 38 must be submitted to the attorney general no more than forty-five days 39 after the first closing of a dwelling unit to a bona fide purchaser 40 under the preservation plan. 41 (q) "Preservation plan". An offering statement or prospectus submitted 42 to the department of law pursuant to this section for the conversion of 43 a building or group of buildings or development of an eligible project 44 from rental status to condominium ownership, wherein the offeror docu- 45 ments that it has entered into a regulatory agreement with a relevant 46 housing finance agency in which it agreed to an extended affordability 47 term for the income-restricted rental units with a relevant housing 48 finance agency. 49 (r) "Purchaser under the preservation plan". A purchaser under the 50 preservation plan is a person who purchases a dwelling unit from offeror 51 pursuant to the terms of a preservation plan that has been accepted for 52 filing by the attorney general. A person or entity that acquires dwell- 53 ing units and assumes certain obligations of offeror shall not be 54 considered a purchaser under the preservation plan. 55 (s) "Qualified owner". A qualified owner refers to the entity approved 56 by the relevant housing finance agency on or before the date of S. 3006--C 81 A. 3006--C

1 submission of a preservation plan to the department of law that will 2 own, operate and maintain the income-restricted rental unit or units 3 that are in the building, group of buildings or development that are the 4 subject of the preservation plan. The entity which is a qualified owner 5 shall only be either: (i) a housing development fund company incorpo- 6 rated pursuant to article eleven of the private finance housing law; or 7 (ii) a community land trust or other charitable corporation organized 8 under the not-for-profit corporation law that has as its primary chari- 9 table purpose the ownership, operation and maintenance of multifamily 10 housing for persons and families of low income as defined by subdivision 11 nineteen of section two of the private finance housing law. 12 (t) "Relevant housing finance agency". Relevant housing finance agency 13 shall refer to a city or state agency with oversight over income-res- 14 tricted rental units prior to the date of submission of a preservation 15 plan. For purposes of this section, a relevant housing finance agency 16 shall also refer to the city or state agency that will continue to have 17 oversight of income-restricted rental units after consummation of the 18 preservation plan and in accordance with the terms of a regulatory 19 agreement. 20 (u) "Regulatory agreement". A regulatory agreement shall refer to the 21 written agreement with a relevant housing finance agency that restricts 22 the income and rents of income-restricted rental units that is either: 23 (i) in effect prior to the date of submission of a preservation plan; or 24 (ii) in effect after consummation of the preservation plan. Any regula- 25 tory agreement in effect at the date of the submission of the preserva- 26 tion plan shall remain in effect until the consummation of the preserva- 27 tion plan unless otherwise agreed to by the relevant housing finance 28 agency. A regulatory agreement that shall take effect after consummation 29 of the preservation plan shall require that at least twenty percent of 30 all units be income-restricted rental units, and require further that 31 all existing income-restricted rental units, as of the effective date of 32 this act, shall remain income-restricted in perpetuity. 33 (v) "Rent stabilization". Rent stabilization shall mean, collectively, 34 the rent stabilization law of nineteen sixty-nine, and the emergency 35 tenant protection act of nineteen seventy-four together with any other 36 successor statutes thereto. 37 (w) "Zoning resolution". Zoning resolution shall refer to the zoning 38 resolution of the city of New York. 39 2. The attorney general shall refuse to accept for submission a pres- 40 ervation plan for the conversion of a building or group of buildings or 41 development if the relevant housing finance agency has not confirmed in 42 writing through the issuance of a letter of support as described in 43 subdivision three of this section and that the preservation plan is for 44 an eligible project, which shall be defined as a building or group of 45 buildings or development that meets the definition of an eligible 46 project and one or more of the following requirements as of the date of 47 submission of the preservation plan: 48 (a) The preservation plan is for a building or group of buildings or 49 development that (i) receives a partial property tax exemption pursuant 50 to subdivisions one through fifteen of section four hundred twenty-one-a 51 of the real property tax law, (ii) contains income-restricted rental 52 units, and (iii) is not otherwise prohibited by any federal, state, or 53 local law, rule, or regulation or subject to an existing regulatory 54 agreement that prohibits the conversion of the dwelling units to condo- 55 minium ownership; or S. 3006--C 82 A. 3006--C

1 (b) The preservation plan is for a building or group of buildings or 2 development that (i) receives low income housing tax credits pursuant to 3 section forty-two of the internal revenue code, (ii) contains income- 4 restricted rental units, (iii) is not subject to any agreement providing 5 for a right of first refusal with a not-for-profit corporation unless 6 evidence deemed satisfactory to the department of law has been provided 7 that such right of first refusal has either expired or that such not- 8 for-profit declined to exercise such right, and (iv) is not otherwise 9 prohibited by any federal, state, or local law, rule, or regulation or 10 subject to an existing regulatory agreement that prohibits the conver- 11 sion of the dwelling units to condominium ownership; or 12 (c) The preservation plan is for a building or group of buildings or 13 development that (i) receives bond financing under subsection (d) of 14 section one hundred forty-two of the internal revenue code, (ii) 15 contains income-restricted rental units, and (iii) is not otherwise 16 prohibited by any federal, state, or local law, rule, or regulation or 17 subject to an existing regulatory agreement that prohibits the conver- 18 sion of the dwelling units to condominium ownership; or 19 (d) The preservation plan is for a building or group of buildings or 20 development, that (i) contains one or more inclusionary housing units, 21 (ii) is not otherwise prohibited by any federal, state, or local law, 22 rule, or regulation or subject to an existing regulatory agreement that 23 prohibits the conversion of the dwelling units to condominium ownership, 24 and (iii) contains a representation that an agreement has been reached 25 with the relevant housing finance agency to increase the total number of 26 income-restricted rental units in the building or group of buildings or 27 development to thirty percent for the extended affordability term upon 28 consummation of the preservation plan; or 29 (e) The preservation plan is for a building or group of buildings or 30 development that (i) contains exclusively moderate income units as 31 required for bond financing with the relevant housing finance agency, 32 (ii) the total number of income-restricted rental units in the building 33 or group of buildings or development is less than twenty percent, (iii) 34 is not subject to an existing regulatory agreement that prohibits the 35 conversion of the dwelling units to condominium ownership, and (iv) 36 contains a representation that an agreement has been reached with the 37 relevant housing finance agency to increase the total number of income- 38 restricted rental units in the building or group of buildings or devel- 39 opment to at least twenty percent for the extended affordability term 40 upon consummation of the preservation plan. 41 3. At the time of submission of the preservation plan, the offeror 42 shall provide a letter of support from the relevant housing finance 43 agency demonstrating that a regulatory agreement has been entered into 44 between the offeror, the qualified owner, and the relevant housing 45 finance agency regarding the income-restricted rental units during the 46 extended affordability term, and that such regulatory agreement will, 47 among other things, require the offeror to include the following disclo- 48 sures in the preservation plan: 49 (a) A list of the proposed income-restricted rental units; 50 (b) The proposed qualified owner of the income-restricted rental 51 units, which qualified owner shall take title to the income-restricted 52 rental units no later than three hundred sixty-five days from the date 53 of consummation of the preservation plan; 54 (c) The operating expenses and revenues applicable to the income-res- 55 tricted rental units, which shall be reflected in the updated Schedule A 56 and Schedule B for the first year of operation of the condominium, the S. 3006--C 83 A. 3006--C

1 allocation of common interests, projected common charges, estimated real 2 estate taxes, and rents to be collected from each income-restricted 3 rental unit, and the allocation of common expenses under section three 4 hundred thirty-nine-m of the real property law, applicable to the 5 income-restricted rental units, which shall be used to limit certain 6 condominium expenses allocable to the income-restricted rental units and 7 to cover any shortfall in the revenue from rent to cover the costs of 8 operation of the income-restricted rental units; 9 (d) A description of any financing encumbering the income-restricted 10 rental units, and whether a tax exemption or abatement is in place to 11 reduce real estate taxes for the income-restricted rental units; 12 (e) A description of any regulatory agreement or agreements to be 13 recorded against the income-restricted rental units and the term thereof 14 and the relevant housing finance agency or agencies with supervisory 15 oversight; 16 (f) A description of the provisions of the declaration and by-laws for 17 the condominium that provides for the special allocation of common 18 expenses in accordance with section three hundred thirty-nine-m of the 19 real property law, and any specific requirements set forth in a regula- 20 tory agreement requiring unit owners in the condominium to cover any 21 shortfall in the revenue from rent to cover the costs of operation of 22 the income-restricted rental units; 23 (g) A description of the contemplated structure of the board of manag- 24 ers of the condominium, including specifically an explanation as to how 25 the interests of the qualified owner of the income-restricted rental 26 units are to be adequately represented; 27 (h) A description of the building-wide amenities and a representation 28 that the declaration and by-laws for the condominium shall require that 29 tenants of the income-restricted rental units be provided an opportunity 30 to use commonly accessible amenities of the condominium and not unique 31 to an individual unit, including but not limited to: pools, fitness 32 centers, storage spaces, parking, and roofs or gardens accessible on a 33 building-wide basis, and that the tenants of the income-restricted 34 rental units may only be charged a nominal and reasonable fee for such 35 use, as approved by the relevant housing finance agency in accordance 36 with the regulatory agreement, and which shall not be treated as rent 37 under any rental agreement; 38 (i) The name, address and contact details for the relevant housing 39 finance agency or agencies with supervisory oversight of the income-res- 40 tricted rental units and the occupants within; 41 (j) That the regulatory agreement contains a provision which requires 42 that once a vacancy occurs of an income-restricted rental unit, after 43 consummation of the preservation plan, then said unit shall only be 44 leased to low income households whose annual household income is not 45 greater than sixty percent of area median income at the time of the 46 initial lease, and such unit shall be marketed and leased in compliance 47 with the relevant housing finance agency's leasing requirements, which 48 may include leasing through New York city's housing connect portal; 49 (k) A representation by offeror that the regulatory agreement includes 50 and accounts for (i) all of the existing on-site income-restricted 51 rental units in an existing building or group of buildings or develop- 52 ment, or (ii) all of the income-restricted rental units associated with 53 an existing building or group of buildings or development located on a 54 zoning lot where one or more buildings were set aside as affordable 55 housing for purposes of qualifying for a partial property tax exemption S. 3006--C 84 A. 3006--C

1 pursuant to section four hundred twenty-one-a of the real property tax 2 law; 3 (l) To the extent not already subject thereto prior to the consum- 4 mation of the preservation plan, a representation by offeror that the 5 regulatory agreement shall require all income-restricted rental units be 6 subject to rent stabilization during the extended affordability term, 7 and that no income-restricted rental units shall be removed from rent 8 stabilization pursuant to the exemption for units owned as a condominium 9 under section 26-504 of the administrative code of the city of New York; 10 and 11 (m) The recording of the condominium declaration and commencement of 12 condominium operations does not modify the requirement under section 13 four hundred twenty-one-a of the real property tax law that all residen- 14 tial rental apartments are subject to rent stabilization. 15 4. Upon submission of the preservation plan to the department of law, 16 each tenant in occupancy of any unit, including but not limited to any 17 income-restricted rental unit, in the eligible project that is the 18 subject of such preservation plan shall be provided with a written 19 notice stating that such preservation plan has been submitted to the 20 department of law. Written notice to each tenant in occupancy shall 21 contain or be accompanied by: 22 (a) a copy of the proposed preservation plan that has been submitted 23 to the department of law; 24 (b) a statement that tenants of the dwelling units being offered for 25 sale pursuant to the preservation plan or their representatives may 26 physically inspect the premises at any time subsequent to the submission 27 of the preservation plan to the department of law, during normal busi- 28 ness hours, upon written request made by them to the offeror, provided 29 such representatives are registered architects or professional engineers 30 licensed by the office of the professions of the education department of 31 the state of New York; and 32 (c) a statement to tenants of the income-restricted rental units that 33 the dwelling units they occupy are not being offered for sale, but their 34 tenancies shall continue undisturbed during and after the conversion of 35 the property to condominium ownership. The statement shall also disclose 36 that all income-restricted rental units shall be subject to rent 37 stabilization throughout the extended affordability term. 38 5. The tenants in occupancy of dwelling units being offered for sale 39 on the date the attorney general accepts the preservation plan for 40 filing shall have the exclusive right to purchase their dwelling units 41 for ninety days after the preservation plan has been accepted for filing 42 by the attorney general, during which time the offering price available 43 to the tenant in occupancy shall not be increased and a tenant's dwell- 44 ing unit shall not be shown to a third party unless such tenant has, in 45 writing, waived their right to purchase. Subsequent to the expiration of 46 such ninety-day period, a tenant in occupancy of a dwelling unit who has 47 not purchased shall be given the exclusive right for an additional six 48 months from said expiration date to purchase said dwelling unit on the 49 same terms and conditions as are contained in any executed contract to 50 purchase said dwelling unit entered into by a purchaser under the pres- 51 ervation plan, such exclusive right to be exercisable within fifteen 52 days from the date of mailing by registered mail of notice of the 53 execution of a contract of sale together with a copy of said executed 54 purchase agreement to said tenant. 55 6. The preservation plan shall also disclose that the offeror shall: S. 3006--C 85 A. 3006--C

1 (a) market and sell all the dwelling units (other than the income-res- 2 tricted rental units) in the building or group of buildings or develop- 3 ment, as each such dwelling unit becomes vacant, to a purchaser under 4 the preservation plan through the use of commercially reasonable good 5 faith efforts; 6 (b) fund the reserve fund and dedicated capital fund in the manner and 7 amounts as provided in section three hundred thirty-nine-mm of the real 8 property law; 9 (c) file an annual update amendment every year which shall include an 10 updated Schedule A of all dwelling units being offered for sale under 11 the preservation plan; and 12 (d) exercise commercially reasonable good faith efforts to sell at 13 least fifty-one percent of the total number of dwelling units offered 14 for sale under the preservation plan (excluding any income-restricted 15 rental units not offered for sale) within five years from the date of 16 consummation of the preservation plan. 17 7. After the issuance of the letter from the attorney general stating 18 that the preservation plan has been accepted for filing, the offeror 19 shall, on the thirtieth, sixtieth, eighty-eighth and ninetieth day after 20 such date and at least once every thirty days until the preservation 21 plan is declared effective or abandoned, as the case may be, and on the 22 second day before the expiration of any exclusive purchase period 23 provided in a substantial amendment to the preservation plan: 24 (a) file with the attorney general a written statement under oath 25 setting forth the percentage of bona fide tenants in occupancy of all 26 dwelling units in the building or group of buildings or development on 27 the date the preservation plan was accepted for filing by the attorney 28 general who have executed and delivered written agreements to purchase 29 under the preservation plan as of the date of such written statement 30 under oath; and 31 (b) before noon on the day such statement is filed post a copy of such 32 written statement under oath in a prominent place accessible to all 33 tenants in each building covered by the preservation plan. 34 8. A preservation plan shall not be declared effective until written 35 purchase agreements have been executed and delivered for at least 36 fifteen percent of all dwelling units offered for sale in the building 37 or group of buildings or development from either (a) bona fide tenants 38 who were in occupancy on the date a letter was issued by the attorney 39 general accepting the preservation plan for filing or (b) bona fide 40 non-tenant purchasers. The purchase agreement shall be executed and 41 delivered pursuant to an offering made in good faith without fraud and 42 discriminatory repurchase agreements or other discriminatory induce- 43 ments. A negotiated reduction from the original offering price extended 44 shall not, by itself, be deemed a discriminatory inducement. 45 9. Those written statements under oath that the offeror is required to 46 file with the attorney general pursuant to subdivision seven of this 47 section shall also include: 48 (a) the total number of written agreements to purchase under the pres- 49 ervation plan received from bona fide non-tenant purchasers; 50 (b) the total number of written agreements to purchase under the pres- 51 ervation plan received from all bona fide tenants in occupancy; 52 (c) the percentage of dwelling units under contract, calculated by 53 adding the number of written purchase agreements for a unit that were 54 received from (i) all bona fide tenants in occupancy plus (ii) all bona 55 fide non-tenant purchasers and then dividing the sum of those two S. 3006--C 86 A. 3006--C

1 numbers by the total number of dwelling units offered for sale under the 2 preservation plan; 3 (d) whether or not the offeror intends to claim a credit against the 4 mandatory initial contribution the offeror is obligated to deposit into 5 the condominium's reserve fund pursuant to subdivision three of section 6 three hundred thirty-nine-mm of the real property law for the actual 7 cost of capital replacements which the offeror has begun after the pres- 8 ervation plan was submitted for filing to the department of law but 9 before the preservation plan is declared effective, together with their 10 actual or estimated costs which credit shall not exceed the actual cost 11 of the credit; 12 (e) whether or not the offeror shall be making its reserve fund 13 contributions required pursuant to section three hundred thirty-nine-mm 14 earlier or in an amount greater than required; and 15 (f) a representation that no purchaser counted for purposes of declar- 16 ing the preservation plan effective is the offeror, the selling agent or 17 the managing agent, or is a principal of the offeror, the selling agent, 18 or the managing agent or is related to any principal of the offeror, any 19 principal of the selling agent or any principal of the managing agent by 20 blood, marriage, or adoption, or is an affiliate, business associate, an 21 employee, a shareholder, a member, a manager, a director, an officer, a 22 limited partner of the offeror, selling agent or managing agent. 23 10. The preservation plan shall provide that it will be deemed aban- 24 doned, void and of no effect if it does not become effective within 25 fifteen months from the date of issue of the letter of the attorney 26 general stating that the preservation plan has been accepted for filing 27 and, in the event of such abandonment, no new plan, including but not 28 limited to a preservation plan, for the conversion of such building or 29 group of buildings or development shall be submitted to the attorney 30 general for at least twelve months after such abandonment. 31 11. No closings of title of a dwelling unit to a purchaser under the 32 preservation plan shall take place until the attorney general shall have 33 also accepted for filing an amendment that declares the preservation 34 plan effective. Within forty-five days of the first closing of title of 35 a dwelling unit to a purchaser under the preservation plan, the offeror 36 shall submit to the attorney general its post-closing amendment to the 37 preservation plan. Thereafter, the preservation plan shall continually 38 be updated with the filing of an annual update amendment, no later than 39 thirty days from the anniversary of the date the attorney general 40 accepted the post-closing amendment for filing. An offeror or successor 41 offeror shall only be relieved of its obligation to file an annual 42 update amendment to the preservation plan after the last dwelling unit 43 offered for sale is conveyed to a purchaser under the preservation plan. 44 12. After the date of acceptance for filing of the post-closing amend- 45 ment, the offeror or successor offeror shall continue to make commer- 46 cially reasonable good faith efforts to sell the dwelling units it owns. 47 13. The attorney general shall refuse to accept for filing an annual 48 update amendment to the preservation plan unless: 49 (a) The annual update amendment discloses, in addition to the other 50 disclosures required elsewhere in this section or the regulations of the 51 attorney general, the following data and information: 52 (i) an accounting of the dwelling units sold and closed by the offeror 53 in the preceding twelve months, with an indication if the dwelling unit 54 was conveyed to a purchaser under the preservation plan or to a succes- 55 sor offeror; S. 3006--C 87 A. 3006--C

1 (ii) an inventory of the offeror's unsold dwelling units at the end of 2 the preceding twelve months, in form and substance as shall satisfy the 3 attorney general; and 4 (iii) all the information, data and literature presented by the board 5 of managers in its semi-annual reports on the status of the reserve fund 6 as required under subdivision five of section three hundred thirty-nine- 7 mm of the real property law. 8 (b) The annual update amendment shall be accompanied by an affidavit 9 from a principal of the offeror attesting to the following data and 10 information with respect to all the dwelling units the offeror then 11 owns: 12 (i) the dwelling units' identifying information and general location; 13 (ii) whether, on the date of submission of the annual update amend- 14 ment, the unsold dwelling unit is subject to a fully executed purchase 15 agreement, and if so, whether the purchaser is a purchaser under the 16 preservation plan or otherwise; 17 (iii) whether, on the date of submission of the annual update amend- 18 ment, the dwelling unit is occupied or vacant, and if occupied, an indi- 19 cation that occupancy is: 20 (A) by a rent-regulated tenant; 21 (B) by a market-rate tenant; 22 (C) a month-to-month tenancy; 23 (D) a tenancy at sufferance; or 24 (E) other. 25 (iv) regardless of the occupancy status of a dwelling unit on the date 26 of submission of the annual update amendment, an indication if the 27 dwelling unit was vacant for more than one of the twelve preceding 28 months. For each dwelling unit so indicated, the offeror shall also 29 disclose: 30 (A) the date range that the dwelling unit was vacant; 31 (B) the date range for any period of time that the dwelling unit was 32 marketed for sale; 33 (C) date of sale; 34 (D) the date the dwelling unit was leased by a tenant; and 35 (E) the date the lease is set to expire (if applicable). 36 14. No eviction proceedings shall be commenced at any time against 37 non-purchasing tenants for failure to purchase or for any other reason 38 applicable to expiration of tenancy; provided that such proceedings may 39 be commenced for non-payment of rent, illegal use or occupancy of the 40 premises, refusal of reasonable access to the owner or a similar breach 41 by the non-purchasing tenant of their obligations to the owner of the 42 dwelling unit; and provided further that an owner of a unit shall not 43 commence an action to recover possession of a dwelling unit from a non- 44 purchasing tenant on the grounds that they seek the dwelling unit for 45 the use and occupancy of themself or their family's use and occupancy. 46 15. No eviction proceedings shall be commenced, except as provided in 47 this subdivision, at any time against either eligible senior citizens or 48 eligible disabled persons. The rentals of eligible senior citizens and 49 eligible disabled persons who reside in dwelling units not subject to 50 government regulation as to rentals and continued occupancy and eligible 51 senior citizens and eligible disabled persons who reside in dwelling 52 units with respect to which government regulation as to rentals and 53 continued occupancy is eliminated or becomes inapplicable after the 54 preservation plan has been accepted for filing shall not be subject to 55 unconscionable increases which, solely for the purposes of this subdivi- 56 sion, and notwithstanding any exemptions for housing accommodations S. 3006--C 88 A. 3006--C

1 owned as condominiums provided for under subdivision seven of section 2 two hundred fourteen of the real property law, and regardless of whether 3 such non-purchasing tenant has a rent that exceeds two hundred forty- 4 five percent of the fair market rent, all rent increases for eligible 5 senior citizens and eligible disabled persons shall be considered uncon- 6 scionable if such increases exceed the permissible increases provided 7 for under the good cause eviction law under article six-A of the real 8 property law; provided that such proceedings may be commenced against 9 such tenants for non-payment of rent, illegal use or occupancy of the 10 premises, refusal of reasonable access to the owner or a similar breach 11 by the tenant of their obligations to the owner of the dwelling unit. 12 16. Eligible senior citizens and eligible disabled persons who reside 13 in dwelling units subject to government regulation as to rentals and 14 continued occupancy shall continue to be subject thereto. 15 17. The rights granted under the preservation plan to eligible senior 16 citizens and eligible disabled persons shall not be abrogated or reduced 17 notwithstanding any expiration of, or amendment to, this section. 18 18. Any offeror who disputes the election by a person to be an eligi- 19 ble senior citizen or an eligible disabled person shall apply to the 20 attorney general within thirty days of the receipt of the election forms 21 for a determination by the attorney general of such person's eligibil- 22 ity. The attorney general shall, within thirty days thereafter, issue a 23 determination of eligibility. The foregoing shall, in the absence of 24 fraud, be the sole method for determining a dispute as to whether a 25 person is an eligible senior citizen or an eligible disabled person. The 26 determination of the attorney general shall be reviewable only through a 27 proceeding under article seventy-eight of the civil practice law and 28 rules, which proceeding shall be commenced within thirty days after such 29 determination by the attorney general becomes final. 30 19. Non-purchasing tenants who reside in dwelling units subject to 31 government regulation as to rentals and continued occupancy prior to the 32 conversion of the building or group of buildings or development to 33 condominium ownership shall continue to be subject thereto. 34 20. The rentals of non-purchasing tenants who reside in dwelling units 35 not subject to government regulation as to rentals and continued occu- 36 pancy and non-purchasing tenants who reside in dwelling units with 37 respect to which government regulation as to rentals and continued occu- 38 pancy is eliminated or becomes inapplicable after the preservation plan 39 has been accepted for filing by the attorney general shall not be 40 subject to unconscionable increases which, solely for the purposes of 41 this subdivision, and notwithstanding any exemptions for housing accom- 42 modations owned as condominiums provided for under subdivision seven of 43 section two hundred fourteen of the real property law, in the event the 44 rent of a non-purchasing tenant shall be less than two hundred forty- 45 five percent of the fair market rent, then such increases for such non- 46 purchasing tenant shall be governed by article six-A of the real proper- 47 ty law. 48 21. The rights granted under the preservation plan to purchasers under 49 the preservation plan and to non-purchasing tenants shall not be abro- 50 gated or reduced notwithstanding any expiration of, or amendment to, 51 this section. 52 22. Any local legislative body may adopt local laws and any agency, 53 officer or public body may prescribe rules and regulations with respect 54 to the continued occupancy by tenants of dwelling units which are 55 subject to regulation as to rentals and continued occupancy pursuant to 56 law, provided that in the event that any such local law, rule or regu- S. 3006--C 89 A. 3006--C

1 lation shall be inconsistent with the provisions of this section, the 2 provisions of this section shall control. 3 23. The attorney general shall refuse to accept for filing a preserva- 4 tion plan when the attorney general determines: (a) that one or more of 5 the income-restricted rental units within the building, group of build- 6 ings or development was vacant on the date of submission; or (b) of the 7 dwelling units that are not income-restricted rental units, an excessive 8 number of long-term vacancies existed on the date that the preservation 9 plan was first submitted to the department of law. For purposes of this 10 subdivision, "long-term vacancies" shall mean dwelling units not leased 11 or occupied by bona fide tenants for more than five months prior to the 12 date of such submission to the department of law; and "excessive" shall 13 mean a vacancy rate in excess of the greater of (i) ten percent and (ii) 14 a percentage that is double the normal average vacancy rate for the 15 building or group of buildings or development for two years prior to the 16 January preceding the date the preservation plan was first submitted to 17 the department of law. 18 24. All dwelling units occupied by non-purchasing tenants shall be 19 managed by the same managing agent who manages all other dwelling units 20 in the building or group of buildings or development. Such managing 21 agent shall provide to non-purchasing tenants all services and facili- 22 ties required by law on a non-discriminatory basis. The offeror shall 23 guarantee the obligation of the managing agent to provide all such 24 services and facilities until such time as the offeror surrenders 25 control of the board of managers, at which time the board of managers of 26 the condominium shall assume responsibility for the provision of all 27 services and facilities required by law on a non-discriminatory basis. 28 Such managing agent shall also ensure that non-purchasing tenants be 29 provided an opportunity to use commonly accessible amenities of the 30 condominium and not unique to an individual unit, including but not 31 limited to pools, fitness centers, storage spaces, parking and roofs or 32 gardens accessible on a building-wide basis, and that the tenants of the 33 income-restricted rental units may only be charged a nominal and reason- 34 able fee for such use, as approved by the relevant housing finance agen- 35 cy in accordance with the regulatory agreement, and which shall not be 36 treated as rent under any rental agreement. 37 25. It shall be unlawful for any person to engage in any course of 38 conduct, including, but not limited to, interruption or discontinuance 39 of essential services, which substantially interferes with or disturbs 40 the comfort, repose, peace or quiet of any tenant in their use or occu- 41 pancy of their dwelling unit or the facilities related thereto. The 42 attorney general may apply to a court of competent jurisdiction for an 43 order restraining such conduct and, if they deem it appropriate, an 44 order restraining the owner from selling the dwelling unit itself or 45 from proceeding with the preservation plan of conversion; provided that 46 nothing contained herein shall be deemed to preclude the tenant from 47 applying on their own behalf for similar relief. 48 26. Any provision of a lease or other rental agreement which purports 49 to waive a tenant's rights under this section or rules and regulations 50 promulgated pursuant hereto shall be void as contrary to public policy. 51 27. Notwithstanding the requirements of this section regarding the 52 preservation of an income-restricted rental unit or units as permanently 53 affordable, and to the extent permitted under existing law as it relates 54 to the income-restricted rental unit or units, the income-restricted 55 rental unit or units in a building or group of buildings or development 56 of an eligible project may be converted to a limited equity housing S. 3006--C 90 A. 3006--C

1 cooperative pursuant to article eleven of the private housing finance 2 law under a separate offering statement or prospectus, if the relevant 3 housing finance agency ensures that the proposed offering statement or 4 prospectus discloses that the regulatory agreement provides as follows: 5 (a) the offering prices are affordable to the existing tenants and/or 6 the qualified low-income purchasers who meet the definition of persons 7 of low income or families of low income as defined by subdivision nine- 8 teen of section two of the private housing finance law; 9 (b) any tenant of an income-restricted rental unit that chooses not to 10 buy the income-restricted rental unit such tenant occupies shall contin- 11 ue to be protected under rent stabilization throughout the process of 12 conversion to a limited equity housing cooperative and thereafter, and 13 that no existing tenant of an income-restricted rental unit shall be 14 evicted solely due to such tenant's decision not to purchase their 15 income-restricted rental unit; 16 (c) the regulatory agreement and certificate of incorporation of the 17 limited equity housing cooperative shall ensure that the income-res- 18 tricted rental units converted to a limited equity housing cooperative 19 shall be reserved for occupancy by persons of low income and families of 20 low income in perpetuity; 21 (d) the regulatory agreement and certificate of incorporation of the 22 limited equity housing cooperative shall ensure that, notwithstanding 23 the creation of a separate condominium, any obligations that the non-in- 24 come-restricted rental unit owners may have to ensure the financial 25 viability and delivery of services in a non-discriminatory manner, prior 26 to the date of conversion to a limited equity housing cooperative, shall 27 not be abrogated and shall remain in full force and effect; 28 (e) the relevant housing finance agency shall have oversight authority 29 over the limited equity housing cooperative in the regulatory agreement, 30 condominium declaration, condominium by-laws and certificate of incorpo- 31 ration of the limited equity housing cooperative, including the ability 32 to appoint a new board of directors of the limited equity housing coop- 33 erative in the event of a violation of a term of, or an event of default 34 by the limited equity housing cooperative under any of its governing 35 documents, requiring purchasers of such units to attend homeownership 36 training, and providing for the procedures to sell the units upon vacan- 37 cy; and 38 (f) that the ownership of the dedicated capital account by the quali- 39 fied owner, and the funding of the dedicated capital account by the 40 offeror of the preservation plan, shall each be subject to the oversight 41 authority of the relevant housing finance agency as provided in section 42 three hundred thirty-nine-mm of the real property law. 43 28. It shall be unlawful for an offeror, its designees and/or succes- 44 sors to have or exercise voting control of the condominium's board of 45 managers for more than ninety days from the fifth anniversary date of 46 the first closing of title to a dwelling unit, or whenever the unsold 47 dwelling units constitute less than fifty percent of the common inter- 48 ests appurtenant to all dwelling units, whichever is sooner. 49 29. The attorney general may, in their discretion, waive the require- 50 ment in paragraph (d) of subdivision six of this section that an offeror 51 sell at least fifty-one percent of the dwelling units offered for sale 52 under the preservation plan when the offeror provides proof satisfactory 53 to the attorney general that five years of commercially reasonable good 54 faith efforts did not result in the sale of fifty-one percent of the 55 dwelling units. If such waiver is granted, the offeror shall be required 56 to disclose the new date by which it will sell at least fifty-one S. 3006--C 91 A. 3006--C

1 percent of the dwelling units offered for sale under the preservation 2 plan in its subsequent annual update amendment. Any waiver granted here- 3 under shall not alleviate an offeror, its designees and/or successors of 4 the obligation set forth in subdivision twenty-eight of this section. 5 30. Within three hundred and sixty-five days of the effective date of 6 this section, the attorney general shall submit a notice of proposed 7 rulemaking for publication in the state register which shall contain the 8 suitable rules necessary to carry out the provisions of this section. 9 The authority of the attorney general to promulgate, adopt, publish, 10 notify, review, amend, modify, reconsider, or rescind any rule or regu- 11 lation as may be conferred anywhere within this section shall comply 12 with the state administrative procedure act in all respects. Notwith- 13 standing the foregoing, an offeror may submit a preservation plan to the 14 department of law regardless of whether the attorney general has adopted 15 suitable rules to carry out this section, and the department of law 16 shall not rely on the lack of rulemaking to refuse to accept a preserva- 17 tion plan for submission or filing if offeror has otherwise complied 18 with the requirements of this section. 19 31. For any offering statement or prospectus (including, without limi- 20 tation, a preservation plan and any amended filings thereto), submitted 21 to the department of law pursuant to this section, the filing fees set 22 forth in paragraph (a) of subdivision seven of section three hundred 23 fifty-two-e of this article shall not apply. Instead, an offeror shall 24 tender the following filing fee with and for its submission: 25 (a) seven hundred fifty dollars for every offering not in excess of 26 two hundred fifty thousand dollars; 27 (b) for every offering in excess of two hundred fifty thousand 28 dollars, four-tenths of one percent of the total amount of the offering 29 but not in excess of sixty thousand dollars, of which one-half of said 30 amount shall be a nonrefundable deposit paid at the time of submitting 31 the preservation plan to the department of law for review and the 32 balance payable upon the attorney general's issuance of a letter of 33 acceptance of the preservation plan for filing; 34 (c) seven hundred fifty dollars for each price change amendment to a 35 preservation plan; 36 (d) seven hundred fifty dollars for any other amendment to a preserva- 37 tion plan; and 38 (e) seven hundred fifty dollars for each such application, and an 39 additional seven hundred fifty dollars for each and every amendment 40 submitted in furtherance of such an application to permit an offeror to 41 solicit public interest prior to the filing of a preservation plan to 42 the department of law. 43 32. The relevant housing finance agency may promulgate regulations, 44 rules, and other guidance documents necessary to carry out the 45 provisions of this section, as it deems necessary. 46 33. The provisions of this section shall only be applicable in the 47 city of New York. 48 34. The attorney general shall make any offering statement or prospec- 49 tus (including, without limitation, a preservation plan and any amended 50 filings thereto), submitted pursuant to this section available to the 51 public in a searchable repository on its official internet website. 52 § 2. Section 339-e of the real property law is amended by adding nine 53 new subdivisions 1-a, 6-a, 7-a, 8-a, 10-a, 11-a, 12-a, 12-b and 13-a to 54 read as follows: 55 1-a. "Capital replacement" means a building-wide replacement of a 56 major component of any of the following systems: S. 3006--C 92 A. 3006--C

1 (a) elevator; 2 (b) heating, ventilation and air conditioning; 3 (c) environmental and sustainability upgrades; 4 (d) plumbing; 5 (e) wiring; 6 (f) window; or 7 (g) a major structural replacement to the building; provided, however, 8 that major structural replacements made to cure code violations of 9 record shall not be included. 10 6-a. "Consummation of the preservation plan" means, in the context of 11 a preservation plan for the conversion of residential rental property to 12 condominium ownership that has been accepted for filing by the depart- 13 ment of law pursuant to section three hundred fifty-two-eeeee of the 14 general business law and subsequently amended to disclose that said 15 preservation plan has been declared effective, (i) the recording of the 16 declaration for the condominium and (ii) the closing of title to a 17 dwelling unit with a purchaser under the preservation plan. 18 7-a. "Income-restricted rental unit", as used in section three hundred 19 thirty-nine-mm of this article, means a unit that also meets the defi- 20 nition of "income-restricted rental unit" set forth in section three 21 hundred fifty-two-eeeee of the general business law. 22 8-a. "Offeror", as used in section three hundred thirty-nine-mm of 23 this article, means the offeror of a preservation plan to convert resi- 24 dential rental property to condominium ownership pursuant to section 25 three hundred fifty-two-eeeee of the general business law, together with 26 their or its nominees, assignees and successors in interest. 27 10-a. "Preservation plan", as used in section three hundred thirty- 28 nine-mm of this article, means an offering statement or prospectus 29 submitted to the department of law pursuant to section three hundred 30 fifty-two-eeeee of the general business law for the conversion of a 31 building or group of buildings or development from rental status to 32 condominium ownership, wherein the offeror documents that it has entered 33 into a regulatory agreement with a relevant housing finance agency in 34 which it agreed to an extended affordability term for the income-res- 35 tricted rental units. 36 11-a. "Purchaser under the preservation plan", when used in section 37 three hundred thirty-nine-mm of this article, means a bona fide purchas- 38 er under the preservation plan shall refer to a person who purchases a 39 dwelling unit from the offeror pursuant to the terms of a preservation 40 plan that has been accepted for filing by the attorney general. A person 41 or entity that acquires dwelling units and assumes certain obligations 42 of the offeror shall not be considered a purchaser under the preserva- 43 tion plan. 44 12-a. "Qualified owner", as used in section three hundred thirty-nine- 45 mm of this article, shall refer to a unit owner that also meets the 46 definition of "qualified owner" as set forth in section three hundred 47 fifty-two-eeeee of the general business law. 48 12-b. "Relevant housing finance agency", as used in section three 49 hundred thirty-nine-mm of this article, shall have the same meaning as 50 set forth in section three hundred fifty-two-eeeee of the general busi- 51 ness law. 52 13-a. "Total price", when used in section three hundred thirty-nine-mm 53 of this article, means the sum of the cost of all units in the offering, 54 but excluding any income-restricted rental units owned or to be trans- 55 ferred to a qualified owner, at the last price which was offered to S. 3006--C 93 A. 3006--C

1 tenants in occupancy prior to the effective date of the preservation 2 plan regardless of the number of sales made. 3 § 3. The real property law is amended by adding a new section 339-mm 4 to read as follows: 5 § 339-mm. Establishment of reserve fund and dedicated capital fund for 6 buildings converting to condominium ownership under section three 7 hundred fifty-two-eeeee of the general business law. 1. Within thirty 8 days after the consummation of a preservation plan, the offeror thereof 9 (and/or its designee or designees and/or successor or successors) shall 10 establish and transfer: 11 (a) to the condominium board of managers a reserve fund to be used 12 exclusively for making capital repairs, replacements and improvements 13 necessary for the health and safety of the residents (including resi- 14 dents of the income-restricted rental units) of such building or group 15 of buildings or development. Such reserve fund shall be exclusive of 16 any other funds required to be reserved under the preservation plan or 17 applicable law or regulation of the attorney general, except a fund for 18 capital repairs, replacements and improvements substantially similar in 19 purpose to and in an amount not less than the reserve fund mandated by 20 this section. Such reserve fund shall also be exclusive of any working 21 capital fund or dedicated capital fund and shall not be subject to 22 reduction for closing apportionments. 23 (b) to the qualified owner of the income-restricted rental units, and 24 subject to the oversight of the relevant housing finance agency set 25 forth in a regulatory agreement, a dedicated capital fund to be used 26 exclusively for making unit repairs, replacements and improvements 27 necessary for the health and safety of the residents of an income-res- 28 tricted rental unit or units of such building or group of buildings or 29 development. Such dedicated capital fund shall be exclusive and supple- 30 mental of any other funds required to be reserved under the preservation 31 plan or applicable law or regulation. Such dedicated capital fund shall 32 also be exclusive and supplemental of any reserve fund or working capi- 33 tal fund and shall not be subject to reduction for closing apportion- 34 ments. The dedicated capital fund shall not be used towards any build- 35 ing-wide capital replacement, and instead shall be used solely for unit 36 repairs, replacements and improvements of the income-restricted rental 37 units. 38 1-a. In the event that the funds are insufficient, unless the relevant 39 housing finance agency provides otherwise, repairs and capital improve- 40 ments necessary for the health and safety of the residents in all common 41 areas and building infrastructure shall be at the sole expense of the 42 condominium board of managers. The relevant housing finance agency may 43 establish penalties for failure to comply with legal and regulatory 44 requirements. 45 2. (a) Such reserve fund shall be established in an amount equal to 46 either (i) three percent of the total price or, (ii) (A) three percent 47 of the actual sales price of all condominium units sold by the offeror 48 at the time the preservation plan is declared effective, provided, 49 however, that if such amount is less than one percent of the total 50 price, then the fund shall be established as a minimum of one percent of 51 the total price; plus (B) supplemental contributions to be made by the 52 offeror at a rate of three percent of the actual sales price of condo- 53 minium units for each unit held by the offeror and sold to bona fide 54 purchasers subsequent to the effective date of the preservation plan and 55 within five years of the consummation of the preservation plan, notwith- 56 standing that the total amount contributed may exceed three percent of S. 3006--C 94 A. 3006--C

1 the total price; and provided, further, that if five years from thirty 2 days after the consummation of the preservation plan the total contrib- 3 utions by the offeror to the fund are less than three percent of the 4 total price the offeror shall pay the difference between the amount 5 contributed and three percent of the total price. Supplemental contrib- 6 utions shall be made within thirty days of each sale. 7 (b) Such dedicated capital fund shall be established in an amount 8 equal to one-half of one percent of the total price, and shall be trans- 9 ferred in full within thirty days of the date of consummation of the 10 preservation plan into an account at a financial institution regulated 11 by the department of financial services of the state of New York that 12 shall have been opened by, and shall at all times be subject to the 13 oversight authority of the relevant housing finance agency of the quali- 14 fied owner of the income-restricted rental unit or units. 15 3. Notwithstanding the provisions of subdivisions one and two of this 16 section, the contributions required pursuant to this section may be made 17 earlier or in an amount greater than so provided, including as may be 18 directed by the relevant housing finance agency. An offeror may claim 19 and receive credit against the mandatory initial contribution to the 20 reserve fund for the actual cost of capital replacements which such 21 offeror has begun after the preservation plan is submitted for filing to 22 the department of law and before the preservation plan is declared 23 effective; provided, however, that any such replacements shall be set 24 forth in the preservation plan together with their actual or estimated 25 costs and further provided, that such credit shall not exceed the lesser 26 of the actual cost of the capital replacements or one and a half percent 27 of the total price. 28 4. The condominium board of managers shall report to unit owners and 29 the relevant housing finance agency, and shall make available to all 30 tenants in each building, on a semi-annual basis with respect to all 31 deposits into and withdrawals from the reserve fund mandated by para- 32 graph (a) of subdivision two of this section. 33 5. The offeror, not later than the thirtieth day following the accept- 34 ance of a preservation plan for filing by the department of law pursuant 35 to section three hundred fifty-two-eeeee of the general business law and 36 until the consummation of the preservation plan, shall post and maintain 37 in a prominent place, accessible to all tenants in each building covered 38 by the preservation plan, a listing of all violations of record against 39 such buildings as determined by the department of buildings of the city 40 of New York and the department of housing preservation and development 41 of the city of New York. All newly issued violations shall be posted 42 within forty-eight hours of their issuance and maintained as described 43 in this subdivision. The offeror may satisfy the requirements of this 44 section by designating an agent on the premises with whom such listing 45 shall be made available for inspection by the tenants. Any penalty for 46 failure to comply with a state or local building and housing maintenance 47 law or regulation shall be paid by, and the sole responsibility of, the 48 condominium board of managers. 49 6. Any provision purporting to waive the provisions of this section in 50 any contract to purchase, any agreement between an offeror and a unit 51 purchaser, any agreement between an offeror and the condominium board of 52 managers created under a preservation plan, any agreement between an 53 offeror and the owner of the income-restricted rental unit or units 54 shall be void as against public policy. 55 7. (a) Except as otherwise provided in paragraph (b) of this subdivi- 56 sion, any person who knowingly violates or assists in the violation of S. 3006--C 95 A. 3006--C

1 any provision of this section shall be subject to a civil penalty of one 2 hundred dollars per day per unit for each day that a building is not in 3 compliance with the provisions of such section; provided, however, that 4 such civil penalty shall not exceed one thousand dollars per unit. 5 (b) Any person who violates or assists in the violation of subdivision 6 two of this section shall also be subject to a civil penalty of one 7 thousand dollars per day for each day that the reserve fund required by 8 subdivision two of this section is not established; provided, however, 9 that such civil penalty shall not exceed the amount required to be 10 reserved pursuant to subdivision two of this section. 11 (c) Any other action or proceeding in any court of competent jurisdic- 12 tion that may be appropriate or necessary for the enforcement of the 13 provisions of this section may be brought in the name of the people of 14 the state of New York by the attorney general, including actions to 15 secure permanent injunctions enjoining any acts or practices which 16 constitute a violation of any provision of this section, mandating 17 compliance with the provisions of this section or for such other relief 18 as may be appropriate. In any such action or proceeding, the attorney 19 general may apply to any court of competent jurisdiction, or to a judge 20 or justice thereof, for a temporary restraining order or preliminary 21 injunction enjoining and restraining all persons from violating any 22 provision of this section, mandating compliance with the provisions of 23 this section, or for such other relief as may be appropriate, until the 24 hearing and determination of such action or proceeding and the entry of 25 final judgment or order therein. The court, or judge or justice thereof, 26 to whom such application is made, is hereby authorized to make any or 27 all of the orders specified in this paragraph, as may be required in 28 such application, with notice, and to make such other or further orders 29 or directions as may be necessary to render the same effectual. No 30 undertaking shall be required as a condition of the granting or issuing 31 of such order, or by reason thereof. 32 (d) Nothing contained in this section shall impair any rights, reme- 33 dies or causes of action accrued or accruing to purchasers of condomin- 34 ium units with regard to the funding of the reserve fund and capital 35 fund under this section. 36 § 4. Subdivision 2, subparagraph (i) of paragraph (a) of subdivision 37 2-a, and paragraphs (a) and (c) of subdivision 7 of section 352-e of the 38 general business law, subdivision 2 as amended by chapter 1042 of the 39 laws of 1981, subparagraph (i) of paragraph (a) of subdivision 2-a as 40 added by chapter 771 of the laws of 1983, paragraph (a) of subdivision 7 41 as amended by section 1 of part BBB-1 of chapter 57 of the laws of 2008, 42 and paragraph (c) of subdivision 7 as amended by chapter 637 of the laws 43 of 1989, are amended to read as follows: 44 2. Unless otherwise provided by regulation issued by the attorney 45 general, the offering statement or statements or prospectus required in 46 subdivision one of this section shall be filed with the department of 47 law at its office in the city of New York, prior to the public offering 48 of the security involved. No offer, advertisement or sale of such secu- 49 rities shall be made in or from the state of New York until the attorney 50 general has issued to the issuer or other [ offerer ] offeror a letter 51 stating that the offering has been filed. The attorney general, not 52 later than thirty days after the submission of such filing, shall issue 53 such a letter or, in the alternative, a notification in writing indicat- 54 ing deficiencies in the offering statement, statements or prospectus; 55 provided, however, that in the case of a building or group of buildings 56 to be converted to cooperative or condominium ownership which is occu- S. 3006--C 96 A. 3006--C

1 pied in whole or in part for residential purposes and which is not the 2 subject of a preservation plan submitted pursuant to section three 3 hundred fifty-two-eeeee of this article , such letter or notification 4 shall be issued in not sooner than four months and not later than six 5 months from the date of submission of such filing. The attorney general 6 may also refuse to issue a letter stating that the offering statement or 7 statements or prospectus has been filed whenever it appears that the 8 offering statement or statements or prospectus does not clearly set 9 forth the specific property or properties to be purchased, leased, mort- 10 gaged, or otherwise to be acquired, financed or the subject of specific 11 investment with a substantial portion of the offering proceeds. 12 (i) "Plan". Every offering statement or prospectus submitted to the 13 department of law for the conversion of a building or group of buildings 14 or development from residential rental status to cooperative or condo- 15 minium ownership, other than a plan governed by the provisions of either 16 section three hundred fifty-two-eee [ or ] , three hundred fifty-two-eeee 17 or section three hundred fifty-two-eeeee of this [ chapter ] article , or a 18 plan for such conversion pursuant to article two, eight or eleven of the 19 private housing finance law. 20 (a) The department of law shall collect the following fees for the 21 filing of each offering statement or prospectus as described in subdivi- 22 sion one of this section: seven hundred fifty dollars for every offering 23 not in excess of two hundred fifty thousand dollars; for every offering 24 in excess of two hundred fifty thousand dollars, four-tenths of one 25 percent of the total amount of the offering but not in excess of [ thir- 26 ty ] sixty thousand dollars of which one-half of said amount shall be a 27 nonrefundable deposit paid at the time of submitting the offering state- 28 ment to the department of law for review and the balance payable upon 29 the issuance of a letter of acceptance for filing said offering state- 30 ment. The department of law shall, in addition, collect a fee of [ two 31 hundred twenty-five ] seven hundred fifty dollars for each other amend- 32 ment to an offering statement. For each application granted by the 33 department of law , which permits the applicant to solicit public inter- 34 est or public funds preliminary to the filing of an offering statement 35 or for the issuance of a "no-filing required" letter and any amendment 36 thereto , the department of law shall collect a fee of [ two ] seven 37 hundred [ twenty-five ] fifty dollars. [ In the event the sponsor thereaft- 38 er files an offering statement, the fee paid for the preliminary appli- 39 cation shall be credited against the balance of the fee due and payable 40 on filing. ] For each application granted pursuant to section three 41 hundred fifty-two-g of this article, the department of law shall collect 42 a fee of two-tenths of one percent of the amount of the offering of 43 securities; however, the minimum fee shall be seven hundred fifty 44 dollars , and the maximum fee shall be [ thirty ] sixty thousand dollars. 45 All revenue from that portion of any fee imposed pursuant to this para- 46 graph, which exceeds twenty thousand dollars for offering statements, 47 and five hundred twenty-five dollars for all other filings, shall be 48 paid by the department of law to the state comptroller to be deposited 49 in and credited to the real estate finance bureau fund, established 50 pursuant to section eighty of the state finance law. 51 (c) Notwithstanding the provisions of paragraph (a) of this subdivi- 52 sion, the department of law shall not collect any fees for the filing of 53 an offering statement or prospectus or any amended filings thereto as 54 described in subdivision one of this section whenever : (i) a conversion 55 of a mobile home park, building or group of buildings or development 56 from residential rental status to cooperative or condominium ownership S. 3006--C 97 A. 3006--C

1 is being made pursuant to article eleven, eighteen, nineteen or twenty 2 of the private housing finance law ; or (ii) the offering statement or 3 prospectus or amendment thereto is submitted to the department of law 4 pursuant to section three hundred fifty-two-eeeee of this article. For 5 submissions made pursuant to section three hundred fifty-two-eeeee of 6 this article, the department of law shall instead collect the fees set 7 forth in subdivision thirty-one of such section. All revenue from that 8 portion of any fee imposed pursuant to subdivision thirty-one of section 9 three hundred fifty-two-eeeee of this article shall be paid by the 10 department of law to the state comptroller to be deposited in and cred- 11 ited to the real estate finance bureau fund, established pursuant to 12 section eighty of the state finance law . 13 § 5. Paragraph (a) of subdivision 1 of section 352-eeee of the general 14 business law, as amended by section 1 of part N of chapter 36 of the 15 laws of 2019, is amended to read as follows: 16 (a) "Plan". Every offering statement or prospectus submitted to the 17 department of law pursuant to section three hundred fifty-two-e of this 18 article for the conversion of a building or group of buildings or devel- 19 opment from residential rental status to cooperative or condominium 20 ownership or other form of cooperative interest in realty, other than an 21 offering statement or prospectus for such conversion pursuant to section 22 three hundred fifty-two-eeeee of this article or article two, eight or 23 eleven of the private housing finance law. 24 § 6. The opening paragraph of subdivision a of section 26-504 of the 25 administrative code of the city of New York is amended to read as 26 follows: 27 Class A multiple dwellings not owned as a cooperative or as a condo- 28 minium, except as provided in section three hundred fifty-two-eeee of 29 the general business law or as provided in section three hundred fifty- 30 two-eeeee of the general business law , containing six or more dwelling 31 units which: 32 § 7. This act shall take effect on the one hundred eightieth day after 33 it shall have become a law; provided that sections one, two, and three 34 of this act shall expire and be deemed repealed 6 years after such date; 35 provided further, that such repeal shall not abrogate any requirements 36 or responsibilities imposed on offerors or condominium boards of direc- 37 tors as set forth in such sections, including but not limited to any 38 such requirements or responsibilities contained in any regulatory agree- 39 ments entered into pursuant to this act; and provided that the amend- 40 ments to section 26-504 of chapter 4 of title 26 of the administrative 41 code of the city of New York made by section six of this act shall 42 expire on the same date as such law expires and shall not affect the 43 expiration of such law as provided under section 26-520 of such law.

44 PART HH

45 Section 1. The public housing law is amended by adding a new article 46 14-A to read as follows: 47 ARTICLE 14-A 48 HOUSING ACCESS VOUCHER PILOT PROGRAM 49 Section 605. Definitions. 50 606. Housing access voucher pilot program. 51 607. Eligibility. 52 608. Funding allocation and distribution. 53 609. Payment of housing vouchers. 54 610. Leases and tenancy. S. 3006--C 98 A. 3006--C

1 611. Rental obligation. 2 612. Monthly assistance payment. 3 613. Inspection of units. 4 614. Rent. 5 615. Vacated units. 6 616. Leasing of units owned by a housing access voucher local 7 administrator. 8 617. Verification of income. 9 618. Division of an assisted family. 10 619. Maintenance of effort. 11 620. Vouchers statewide. 12 621. Applicable codes. 13 622. Housing choice. 14 623. Annual reports. 15 § 605. Definitions. For the purposes of this article, the following 16 terms shall have the following meanings: 17 1. "Homeless" means lacking a fixed, regular, and adequate nighttime 18 residence; having a primary nighttime residence that is a public or 19 private place not designed for or ordinarily used as a regular sleeping 20 accommodation for human beings, including a car, park, abandoned build- 21 ing, bus or train station, airport, campground, or other place not meant 22 for human habitation; living in a supervised publicly or privately oper- 23 ated shelter designated to provide temporary living arrangements 24 (including hotels and motels paid for by federal, state or local govern- 25 ment programs for low-income individuals or by charitable organizations, 26 congregate shelters, or transitional housing); exiting an institution 27 where an individual or family has resided and lacking a regular fixed 28 and adequate nighttime residence upon release or discharge; individuals 29 released or scheduled to be released from incarceration and lacking a 30 regular fixed and adequate nighttime residence upon release or 31 discharge; being a homeless family with children or unaccompanied youth 32 defined as homeless under 42 U.S.C. § 11302(a); having experienced a 33 long-term period without living independently in permanent housing or 34 having experienced persistent instability as measured by frequent moves 35 and being reasonably expected to continue in such status for an extended 36 period of time because of chronic disabilities, chronic physical health 37 or mental health conditions, substance addiction, histories of domestic 38 violence or childhood abuse, the presence of a child or youth with a 39 disability, multiple barriers to employment, or other dangerous or life- 40 threatening conditions, including conditions that relate to violence 41 against an individual or a family member. 42 2. "Imminent loss of housing" means having received a verified rent 43 demand or a petition for eviction; having received a court order result- 44 ing from an eviction action that notifies the individual or family that 45 they must leave their housing; facing loss of housing due to a court 46 order to vacate the premises due to hazardous conditions, which may 47 include but not be limited to asbestos, lead exposure, mold, and radon; 48 having a primary nighttime residence that is a room in a hotel or motel 49 and lacking the resources necessary to stay; facing loss of the primary 50 nighttime residence, which may include living in the home of another 51 household, where the owner or renter of the housing will not allow the 52 individual or family to stay, provided further, that an assertion from 53 an individual or family member alleging such loss of housing or home- 54 lessness shall be sufficient to establish eligibility; or fleeing or 55 attempting to flee domestic violence, dating violence, sexual assault, 56 stalking, human trafficking or other dangerous or life-threatening S. 3006--C 99 A. 3006--C

1 conditions that relate to violence against the individual or a family 2 member, provided further that an assertion from an individual or family 3 member alleging such abuse and loss of housing shall be sufficient to 4 establish eligibility. 5 3. "Public housing agency" means any county, municipality, or other 6 governmental entity or public body that is authorized to administer any 7 public housing program (or an agency or instrumentality of such an enti- 8 ty), and any other public or private non-profit entity that administers 9 any other public housing program or assistance. 10 4. "Section 8 local administrator" means a public housing agency that 11 administers the Section 8 Housing Choice Voucher program under section 8 12 of the United States housing act of 1937 within a community, county or 13 region, or statewide, on behalf of and under contract with the housing 14 trust fund corporation. 15 5. "Housing access voucher local administrator" means a public housing 16 agency, as defined in subdivision three of this section, or Section 8 17 local administrator designated to administer the housing access voucher 18 pilot program within a community, county or region, or statewide, on 19 behalf of and under contract with the housing trust fund corporation. 20 In the city of New York, the housing access voucher local administrator 21 shall be the New York city department of housing preservation and devel- 22 opment, or the New York city housing authority, or both. 23 6. "Family" means a group of persons residing together. Such group 24 includes, but is not limited to a family with or without children (a 25 child who is temporarily away from the home because of placement in 26 foster care is considered a member of the family) or any remaining 27 members of a tenant family. The commissioner shall have the discretion 28 to determine if any other group of persons qualifies as a family. 29 7. "Owner" means any private person or any entity, including a cooper- 30 ative, an agency of the federal government, or a public housing agency, 31 having the legal right to lease or sublease dwelling units. 32 8. "Dwelling unit" means a single-family dwelling, including attached 33 structures such as porches and stoops; or a single-family dwelling unit 34 in a structure that contains more than one separate residential dwelling 35 unit, and in which each such unit is used or occupied, or intended to be 36 used or occupied, in whole or in part, as the residence of one or more 37 persons. 38 9. "Income" shall mean the same as it is defined by 24 CFR § 5.609 and 39 any amendments thereto. 40 10. "Adjusted income" shall mean the same as it is defined by 24 CFR § 41 5.611 and any amendments thereto. 42 11. "Reasonable rent" means rent not more than the rent charged on 43 comparable units in the private unassisted market and rent charged for 44 comparable unassisted units in the premises. 45 12. "Fair market rent" means the fair market rent for each rental area 46 as promulgated annually by the United States department of housing and 47 urban development pursuant to 42 U.S.C. 1437f. 48 13. "Voucher" means a document issued by the housing trust fund corpo- 49 ration pursuant to this article to an individual or family selected for 50 admission to the housing access voucher pilot program, which describes 51 such pilot program and the procedures for approval of a unit selected by 52 the family and states the obligations of the individual or family under 53 the pilot program. 54 14. "Lease" means a written agreement between an owner and a tenant 55 for the leasing of a dwelling unit to the tenant. The lease establishes 56 the conditions for occupancy of the dwelling unit by an individual or S. 3006--C 100 A. 3006--C

1 family with housing assistance payments under a contract between the 2 owner and the housing access voucher local administrator. 3 15. "Dependent" means any member of the family who is neither the head 4 of household, nor the head of the household's spouse, and who is: 5 (a) under the age of eighteen; 6 (b) a person with a disability; or 7 (c) a full-time student. 8 16. "Elderly" means a person sixty-two years of age or older. 9 17. "Child care expenses" means expenses relating to the care of chil- 10 dren under the age of thirteen. 11 18. "Severely rent burdened" means those individuals and families who 12 pay more than fifty percent of their income in rent as defined by the 13 United States census bureau. 14 19. "Disability" means: 15 (a) the inability to engage in any substantial gainful activity by 16 reason of any medically determinable physical or mental impairment which 17 can be expected to result in death or which has lasted or can be 18 expected to last for a continuous period of not less than twelve months; 19 or 20 (b) in the case of an individual who has attained the age of fifty- 21 five and is blind, the inability by reason of such blindness to engage 22 in substantial gainful activity requiring skills or abilities comparable 23 to those of any gainful activity in which they have previously engaged 24 with some regularity and over a substantial period of time; or 25 (c) a physical, mental, or emotional impairment which: 26 (i) is expected to be of long-continued and indefinite duration; 27 (ii) substantially impedes their ability to live independently; and 28 (iii) is of such a nature that such ability could be improved by more 29 suitable housing conditions; or 30 (d) a developmental disability that is a severe, chronic disability of 31 an individual that: 32 (i) is attributable to a mental or physical impairment or combination 33 of mental and physical impairments; 34 (ii) is manifested before the individual attains age twenty-two; 35 (iii) is likely to continue indefinitely; 36 (iv) results in substantial functional limitations in three or more of 37 the following areas of major life activity: 38 (A) self-care; 39 (B) receptive and expressive language; 40 (C) learning; 41 (D) mobility; 42 (E) self-direction; 43 (F) capacity for independent living; or 44 (G) economic self-sufficiency; and 45 (v) reflects the individual's need for a combination and sequence of 46 special, interdisciplinary, or generic services, individualized 47 supports, or other forms of assistance that are of lifelong or extended 48 duration and are individually planned and coordinated. 49 § 606. Housing access voucher pilot program. The commissioner, 50 subject to the appropriation of funds for this purpose, shall implement 51 a four-year pilot program to provide rental assistance in the form of 52 housing vouchers for eligible individuals and families who are homeless 53 or who face an imminent loss of housing in accordance with the 54 provisions of this article. The housing trust fund corporation shall 55 issue vouchers pursuant to this article beginning March first, two thou- 56 sand twenty-six, subject to appropriation of funds for this purpose, and S. 3006--C 101 A. 3006--C

1 may contract with the division of housing and community renewal to 2 administer any aspect of this pilot program in accordance with the 3 provisions of this article. The commissioner shall designate and 4 contract with housing access voucher local administrators in the state 5 to make vouchers available to such individuals and families beginning 6 March first, two thousand twenty-six and to administer other aspects of 7 the pilot program in accordance with the provisions of this article. 8 § 607. Eligibility. The commissioner shall promulgate standards for 9 determining eligibility for assistance under this pilot program. Indi- 10 viduals and families who meet the standards shall be eligible regardless 11 of immigration status. Eligibility shall be limited to individuals and 12 families who are homeless or facing imminent loss of housing. Housing 13 access voucher local administrators may rely on a certification from a 14 social services provider serving homeless individuals, including, but 15 not limited to, homeless shelters to determine whether an applicant 16 qualifies as a homeless individual or family. 17 1. An individual or family shall be eligible for this pilot program if 18 they are homeless or facing imminent loss of housing and have an income 19 of no more than fifty percent of the area median income, as defined by 20 the United States department of housing and urban development. 21 2. An individual or family in receipt of rental assistance pursuant to 22 this pilot program shall be no longer financially eligible for such 23 assistance under this pilot program when thirty percent of the individ- 24 ual's or family's adjusted income is greater than or equal to the total 25 rent for the dwelling unit. 26 3. When an individual or family becomes financially ineligible for 27 rental assistance under this pilot program pursuant to subdivision two 28 of this section, the individual or family shall retain rental assistance 29 for a period no shorter than one year, subject to appropriation of funds 30 for this purpose. 31 4. Income eligibility shall be verified prior to a housing access 32 voucher local administrator's initial determination to provide rental 33 assistance for this pilot program and upon determination of such eligi- 34 bility, an individual or family shall annually certify their income for 35 the purpose of determining continued eligibility and any adjustments to 36 such rental assistance. 37 5. The commissioner may collaborate with the office of temporary and 38 disability assistance and other state and city agencies to allow a hous- 39 ing access voucher local administrator to access income information for 40 the purpose of determining an individual's or family's initial and 41 continued eligibility for the pilot program. 42 6. Reviews of income shall be made no less frequently than annually. 43 § 608. Funding allocation and distribution. 1. Subject to appropri- 44 ation, funding shall be allocated by the commissioner in each county 45 except for those counties located within the city of New York, the 46 initial allocation shall be in proportion to the number of households in 47 each county or the city of New York who are severely rent burdened based 48 on data published by the United States census bureau. Funding for coun- 49 ties located within the city of New York shall be allocated directly to 50 the New York city department of housing preservation and development 51 and/or the New York city housing authority, as appropriate, in propor- 52 tion to the number of households in New York city as compared to the 53 rest of the state of New York who are severely rent burdened based on 54 data published by the United States census bureau. 55 2. The commissioner shall be responsible for distributing the funds 56 allocated in each county not located within the city of New York among S. 3006--C 102 A. 3006--C

1 housing access voucher local administrators operating in each county or 2 in the city of New York. 3 3. Priority shall be given to applicants who are homeless. The commis- 4 sioner shall have the discretion to establish further priorities as 5 appropriate. 6 4. Up to ten percent of the funds allocated may be used by the commis- 7 sioner and the housing access voucher local administrator for adminis- 8 trative expenses attributable to administering the housing access vouch- 9 er pilot program. 10 § 609. Payment of housing vouchers. 1. The housing voucher shall be 11 paid directly to any owner under a contract between the owner of the 12 dwelling unit to be occupied by the voucher recipient and the appropri- 13 ate housing access voucher local administrator. The commissioner shall 14 determine the form of the housing assistance payment contract and the 15 method of payment. A housing assistance payment contract entered into 16 pursuant to this section shall establish the payment standard (including 17 utilities and all maintenance and management charges) which the owner is 18 entitled to receive for each dwelling unit with respect to which such 19 assistance payments are to be made. The payment standard shall not 20 exceed one hundred twenty percent nor be less than ninety percent of the 21 fair market rent for the rental area in which it is located. Fair 22 market rent shall be determined pursuant to the procedures and standards 23 as set forth in the Federal Housing Choice voucher program, as set forth 24 in the applicable sections of Part 888 of Title 24 of the Code of Feder- 25 al Regulations. Fair market rent for a rental area shall be published 26 not less than annually by the commissioner and shall be made available 27 on the website of New York state homes and community renewal. 28 2. A housing assistance payment contract entered into pursuant to 29 subdivision one of this section may provide for an initial payment of up 30 to five months of rent arrears that have accrued during prior occupancy 31 of a dwelling unit by a voucher recipient if such payment of arrears is 32 necessary to continue such voucher recipient's occupancy of such dwell- 33 ing unit, and thereby prevent imminent loss of housing. 34 § 610. Leases and tenancy. Each housing assistance payment contract 35 entered into by a housing access voucher local administrator and the 36 owner of a dwelling unit shall provide: 37 1. that the lease between the tenant and the owner shall be for a term 38 of not less than one year, except that the housing access voucher local 39 administrator may approve a shorter term for an initial lease between 40 the tenant and the dwelling unit owner if the housing access voucher 41 local administrator determines that such shorter term would improve 42 housing opportunities for the tenant and if such shorter term is consid- 43 ered to be a prevailing local market practice; 44 2. that the dwelling unit owner shall offer leases to tenants assisted 45 under this article that: 46 (a) are in a standard form used in the locality by the dwelling unit 47 owner; and 48 (b) contain terms and conditions that: 49 (i) are consistent with state and local law; and 50 (ii) apply generally to tenants in the property who are not assisted 51 under this article; 52 (c) shall provide that during the term of the lease, the owner shall 53 not terminate the tenancy except for serious or repeated violation of 54 the terms and conditions of the lease, for violation of applicable state 55 or local law, or for other good cause, including, but not limited to, 56 the non-payment of the tenant's portion of the rent owed, and in the S. 3006--C 103 A. 3006--C

1 case of an owner who is an immediate successor in interest pursuant to 2 foreclosure during the term of the lease vacating the property prior to 3 sale shall not constitute other good cause, except that the owner may 4 terminate the tenancy effective on the date of transfer of the unit to 5 the owner if the owner: 6 (i) will occupy the unit as a primary residence; and 7 (ii) has provided the tenant a notice to vacate at least ninety days 8 before the effective date of such notice; 9 (d) shall provide that any termination of tenancy under this section 10 shall be preceded by the provision of written notice by the owner to the 11 tenant specifying the grounds for that action, and any relief shall be 12 consistent with applicable state and local law; 13 3. that any unit under an assistance contract originated under this 14 article shall only be occupied by the individual or family designated in 15 said contract and shall be the designated individual or family's primary 16 residence. Contracts shall not be transferable between units and shall 17 not be transferable between recipients. A family or individual may 18 transfer their voucher to a different unit under a new contract pursuant 19 to this article; 20 4. that an owner shall not charge more than a reasonable rent as 21 defined in section six hundred five of this article. 22 § 611. Rental obligation. The monthly rental obligation for an indi- 23 vidual or family receiving housing assistance pursuant to the housing 24 access voucher pilot program shall be the greater of: 25 1. thirty percent of the monthly adjusted income of the family or 26 individual; or 27 2. If the family or individual is receiving payments for welfare 28 assistance from a public agency and a part of those payments, adjusted 29 in accordance with the actual housing costs of the family, is specif- 30 ically designated by that agency to meet the housing costs of the fami- 31 ly, the portion of those payments that is so designated. These payments 32 include, but are not limited to any shelter assistance or housing 33 assistance administered by any federal, state or local agency. 34 § 612. Monthly assistance payment. 1. The amount of the monthly 35 assistance payment with respect to any dwelling unit shall be the 36 difference between the maximum monthly rent which the contract provides 37 that the owner is to receive for the unit and the rent the individual or 38 family is required to pay under section six hundred eleven of this arti- 39 cle. 40 2. The commissioner shall establish maximum rent levels for different 41 sized rentals in each rental area in a manner that promotes the use of 42 the pilot program in all localities based on the fair market rent of the 43 rental area. Rental areas shall be determined by the commissioner. The 44 commissioner may rely on data or other information promulgated by any 45 other state or federal agency in determining the rental areas and fair 46 market rent. 47 3. The payment standard for each size of dwelling unit in a rental 48 area shall not be less than ninety percent and shall not exceed one 49 hundred twenty percent of the fair market rent as defined in section six 50 hundred five of this article for the same size of dwelling unit in the 51 same rental area, except that the commissioner shall not be required as 52 a result of a reduction in the fair market rent to reduce the payment 53 standard applied to a family continuing to reside in a unit for which 54 the family was receiving assistance under this article at the time the 55 fair market rent was reduced. S. 3006--C 104 A. 3006--C

1 § 613. Inspection of units. Inspection of units shall be conducted 2 pursuant to the procedures and standards of the Federal Housing Choice 3 voucher program, as set forth in the applicable sections of Part 982 of 4 Title 24 of the Code of Federal Regulations. 5 § 614. Rent. 1. The rent for dwelling units for which a housing 6 assistance payment contract is established under this article shall be 7 reasonable in comparison with rents charged for comparable dwelling 8 units in the private, unassisted local market. 9 2. A housing access voucher local administrator (or other entity, as 10 provided in section six hundred sixteen of this article) may, at the 11 request of an individual or family receiving assistance under this arti- 12 cle, assist that individual or family in negotiating a reasonable rent 13 with a dwelling unit owner. A housing access voucher local administrator 14 (or other such entity) shall review the rent for a unit under consider- 15 ation by the individual or family (and all rent increases for units 16 under lease by the individual or family) to determine whether the rent 17 (or rent increase) requested by the owner is reasonable. If a housing 18 access voucher local administrator (or other such entity) determines 19 that the rent (or rent increase) for a dwelling unit is not reasonable, 20 the housing access voucher local administrator (or other such entity) 21 shall not make housing assistance payments to the owner under this 22 subdivision with respect to that unit. 23 3. If a dwelling unit for which a housing assistance payment contract 24 is established under this article is exempt from local rent control 25 provisions during the term of that contract, the rent for that unit 26 shall be reasonable in comparison with other units in the rental area 27 that are exempt from local rent control provisions. 28 4. Each housing access voucher local administrator shall make timely 29 payment of any amounts due to a dwelling unit owner under this section, 30 subject to appropriation of funds for this purpose. 31 § 615. Vacated units. If an assisted family vacates a dwelling unit 32 for which rental assistance is provided under a housing assistance 33 payment contract before the expiration of the term of the lease for the 34 unit, rental assistance pursuant to such contract may not be provided 35 for the unit after the month during which the unit was vacated. 36 § 616. Leasing of units owned by a housing access voucher local admin- 37 istrator. 1. If an eligible individual or family assisted under this 38 article leases a dwelling unit (other than a public housing dwelling 39 unit) that is owned by a housing access voucher local administrator 40 administering assistance to that individual or family under this 41 section, the commissioner shall require the unit of general local 42 government or another entity approved by the commissioner, to make 43 inspections required under section six hundred thirteen of this article 44 and rent determinations required under section six hundred fourteen of 45 this article. The housing access voucher local administrator shall be 46 responsible for any expenses of such inspections and determinations, 47 subject to the appropriation of funds for this purpose. 48 2. For purposes of this section, the term "owned by a housing access 49 voucher local administrator" means, with respect to a dwelling unit, 50 that the dwelling unit is in a project that is owned by such administra- 51 tor, by an entity wholly controlled by such administrator, or by a 52 limited liability company or limited partnership in which such adminis- 53 trator (or an entity wholly controlled by such administrator) holds a 54 controlling interest in the managing member or general partner. A dwell- 55 ing unit shall not be deemed to be owned by a housing access voucher 56 local administrator for purposes of this section because such adminis- S. 3006--C 105 A. 3006--C

1 trator holds a fee interest as ground lessor in the property on which 2 the unit is situated, holds a security interest under a mortgage or deed 3 of trust on the unit, or holds a non-controlling interest in an entity 4 which owns the unit or in the managing member or general partner of an 5 entity which owns the unit. 6 § 617. Verification of income. The commissioner shall establish proce- 7 dures which are appropriate and necessary to assure that income data 8 provided to the housing access voucher local administrator and owners by 9 individuals and families applying for or receiving assistance under this 10 article is complete and accurate. In establishing such procedures, the 11 commissioner shall randomly, regularly, and periodically select a sample 12 of families to authorize the commissioner to obtain information on these 13 families for the purpose of income verification, or to allow those fami- 14 lies to provide such information themselves. Such information may 15 include, but is not limited to, data concerning unemployment compen- 16 sation and federal income taxation and data relating to benefits made 17 available under the social security act, 42 U.S.C. 301 et seq., the food 18 and nutrition act of 2008, 7 U.S.C. 2011 et seq., or title 38 of the 19 United States Code. Any such information received pursuant to this 20 section shall remain confidential and shall be used only for the purpose 21 of verifying incomes in order to determine eligibility of individuals 22 and families for benefits (and the amount of such benefits, if any) 23 under this article. 24 § 618. Division of an assisted family. 1. In those instances where a 25 family assisted under this article becomes divided into two otherwise 26 eligible individuals or families due to divorce, legal separation or the 27 division of the family, where such individuals or families cannot agree 28 as to which such individual or family should continue to receive the 29 assistance, and where there is no determination by a court, the housing 30 access voucher local administrator shall consider the following factors 31 to determine which of the individuals or families will continue to be 32 assisted: 33 (a) which of such individuals or families has custody of dependent 34 children; 35 (b) which such individual was the head of household when the voucher 36 was initially issued as listed on the initial application; 37 (c) the composition of such individuals and families and which such 38 family includes elderly or disabled members; 39 (d) whether domestic violence was involved in the breakup of such 40 family; 41 (e) which family members remain in the unit; and 42 (f) recommendations of social services professionals. 43 2. Documentation of these factors will be the responsibility of the 44 requesting parties. If documentation is not provided, the housing access 45 voucher local administrator will terminate assistance on the basis of 46 failure to provide information necessary for a recertification. 47 § 619. Maintenance of effort. Any funds made available pursuant to 48 this article shall not be used to offset or reduce the amount of funds 49 previously expended for the same or similar programs in a prior year in 50 any county or in the city of New York, but shall be used to supplement 51 any prior year's expenditures. The commissioner may grant an exception 52 to this requirement if any county, municipality, or other governmental 53 entity or public body can affirmatively show that such amount of funds 54 previously expended is in excess of the amount necessary to provide 55 assistance to all individuals and families within the area in which the S. 3006--C 106 A. 3006--C

1 funds were previously expended who are homeless or facing an imminent 2 loss of housing. 3 § 620. Vouchers statewide. Notwithstanding section six hundred ten of 4 this article, any voucher issued pursuant to this article may be used 5 for housing anywhere in the state. The commissioner shall inform voucher 6 holders that a voucher may be used anywhere in the state and, to the 7 extent practicable, the commissioner shall assist voucher holders in 8 finding housing in the area of their choice. Provided further, however, 9 that a voucher must be used in the county in which it was issued, or 10 within the city of New York, if the voucher was issued within the city 11 of New York, for no less than one year before it can be used in a 12 different jurisdiction, unless the issuing housing access voucher local 13 administrator grants a waiver, or the voucher holder, or a family member 14 thereof, is or has been the victim of domestic violence, dating 15 violence, sexual assault, or stalking. 16 § 621. Applicable codes. Housing eligible for participation in the 17 housing access voucher pilot program shall comply with applicable state 18 and local health, housing, building and safety codes. 19 § 622. Housing choice. 1. The commissioner shall administer the hous- 20 ing access voucher pilot program under this article to promote housing 21 choice for voucher holders. The commissioner shall affirmatively promote 22 fair housing to the extent possible under this pilot program. 23 2. Nothing in this article shall lessen or abridge any fair housing 24 obligations promulgated by municipalities, localities, or any other 25 applicable jurisdiction. 26 § 623. Annual reports. The commissioner shall, on or before November 27 first, two thousand twenty-six and annually thereafter until the conclu- 28 sion of the pilot program created pursuant to this article, submit a 29 report on the implementation of this article in counties located outside 30 of the city of New York to the governor, the temporary president of the 31 senate, the speaker of the assembly, the chair of the senate committee 32 on housing, the chair of the senate finance committee, the chair of the 33 assembly committee on housing, and the chair of the assembly ways and 34 means committee. The commissioner of the New York city department of 35 housing preservation and development, or the chief executive officer of 36 the New York city housing authority, or both, shall, on or before Novem- 37 ber first, two thousand twenty-six and annually thereafter until the 38 conclusion of the pilot program created pursuant to this article, submit 39 a report on the implementation of this article in the city of New York 40 to the governor, the temporary president of the senate, the speaker of 41 the assembly, the chair of the senate committee on housing, the chair of 42 the senate finance committee, the chair of the assembly committee on 43 housing, and the chair of the assembly ways and means committee. Such 44 report shall include, but need not be limited to, the following: (i) the 45 amount of funding allocated for each county or the city of New York for 46 vouchers pursuant to this article, (ii) the number of individuals or 47 families who applied for vouchers pursuant to this article, (iii) the 48 number of individuals or families placed on waiting lists for vouchers 49 pursuant to this article, if any such waiting lists exist, (iv) the 50 number of individuals or families issued vouchers pursuant to this arti- 51 cle, (v) the number of individuals or families who were homeless prior 52 to receiving a voucher pursuant to this article, (vi) the voucher utili- 53 zation rate for vouchers pursuant to this article, (vii) the median 54 income of individuals or families issued vouchers pursuant to this arti- 55 cle, (viii) the median payment standard per dwelling unit, including the 56 monthly assistance payment and monthly rent obligation, for vouchers S. 3006--C 107 A. 3006--C

1 pursuant to this article, and (ix) the number of individuals or families 2 who had been issued vouchers pursuant to this article but who became no 3 longer financially eligible for vouchers pursuant to this article during 4 the reporting period. 5 § 2. This act shall take effect immediately and shall remain in full 6 force and effect until May 1, 2030. Any rule, regulation, plan or guid- 7 ance document necessary for the implementation of this act promulgated 8 by the commissioner of the division of housing and community renewal 9 shall apply only to those counties located outside of the city of New 10 York. The New York city department of housing preservation and develop- 11 ment and the New York city housing authority, as applicable, shall 12 promulgate or release rules, regulations, plans or guidance documents as 13 necessary for the implementation of this act within the city of New 14 York.

15 PART II

16 Section 1. Section 13 of section 2 of chapter 868 of the laws of 1975 17 constituting the New York state financial emergency act for the city of 18 New York, as amended by section 2 of part K of chapter 686 of the laws 19 of 2003, is amended to read as follows: 20 § 13. Termination. This act shall terminate on the later of (a) July 21 first, two thousand [ eight ] thirty-five or (b) the date (i) when all 22 bonds and notes containing the pledge and agreement authorized by subdi- 23 vision one of section ten-a of this act are refunded, redeemed, 24 discharged or otherwise defeased, or (ii) when there shall no longer be 25 outstanding any guarantee by the United States of America or any agency 26 or instrumentality thereof as to payment of principal of or interest on 27 any note or bond issued by the city or a state financing agency, which- 28 ever of (i) or (ii) shall occur later. 29 § 2. This act shall take effect immediately.

30 PART JJ

31 Section 1. Article 7 of the public authorities law is amended by 32 adding a new title 5 to read as follows: 33 TITLE 5 34 CITY OF BUFFALO PARKING AUTHORITY 35 Section 1500-a. Short title. 36 1500-b. Definitions. 37 1500-c. City of Buffalo parking authority. 38 1500-d. Purpose and powers of the authority. 39 1500-e. Conveyance of property by the city to the authority; 40 acquisition of property by the city or by the authori- 41 ty. 42 1500-f. Construction and purchase contracts. 43 1500-g. Contract for employees. 44 1500-h. Moneys of the authority. 45 1500-i. Bonds or notes of the authority. 46 1500-j. Agreements of New York state. 47 1500-k. Agreements of the city. 48 1500-l. State and city not liable on bonds. 49 1500-m. Bonds legal investments for public officers. 50 1500-n. Tax exemptions. 51 1500-o. Tax contract by the state. 52 1500-p. Remedies of bondholders. S. 3006--C 108 A. 3006--C

1 1500-q. Actions against the authority. 2 1500-r. Defense and indemnification. 3 1500-s. Code of ethics. 4 1500-t. Contracting for municipal services. 5 1500-u. Termination of authority. 6 1500-v. Title not affected if in part unconstitutional or inef- 7 fective. 8 1500-w. Inconsistent provisions in other acts superseded. 9 § 1500-a. Short title. This title shall be known and may be cited as 10 the "city of Buffalo parking authority act". 11 § 1500-b. Definitions. As used or referred to in this title, unless a 12 different meaning clearly appears from the context: 13 1. The term "authority" shall mean the corporation created by section 14 fifteen hundred-c of this title; 15 2. The term "city" shall mean the city of Buffalo; 16 3. The term "bonds" shall mean the bonds, notes or other evidences of 17 indebtedness issued by the authority pursuant to this title relating to 18 bonds and bondholders; 19 4. The term "board" shall mean the members of the authority; 20 5. The term "real property" shall mean lands, structures, franchises, 21 and interest in lands, and any and all things usually included within 22 the said term, and includes not only fees simple absolute but also any 23 and all lesser interest, such as easements, rights of way, uses, leases, 24 licenses, and all other incorporeal hereditaments and every estate, 25 interest or right, legal or equitable, including terms of years, and 26 liens thereon by way of judgments, mortgages or otherwise, and also 27 claims for damage to real estate, in the area of the city; 28 6. The term "project" shall mean any area or place operated or to be 29 operated by the authority for the parking or storing of motor and other 30 vehicles and shall, without limiting the foregoing, include all real and 31 personal property, driveways, roads, approaches, structures, terminals 32 of all kinds, garages, meters, mechanical equipment, and all appurte- 33 nances and facilities on, above or under the ground which are used or 34 usable in connection with such parking or storing of such vehicles in 35 the area of the city or which facilitates electric vehicle charging 36 infrastructure; 37 7. The term "projects" shall mean more than one covered projects. 38 8. The term "covered project" shall mean a project located on a public 39 parking facility owned by the city at the time this title shall take 40 effect. 41 9. The term "Buffalo fiscal stability authority" shall mean the public 42 benefit corporation established pursuant to title two of article ten-D 43 of this chapter. 44 § 1500-c. City of Buffalo parking authority. 1. A board to be known as 45 the "city of Buffalo parking authority" is hereby created. Such board 46 shall be a body corporate and politic, constituting a public benefit 47 corporation, and its existence shall commence upon the appointment of 48 the members as herein provided. It shall consist of a chair and four 49 other members, who shall be appointed by the mayor of the city of 50 Buffalo, with the advice and consent of the city of Buffalo common coun- 51 cil. The mayor of the city may remove any member of the board for 52 neglect of duty or misconduct in office, giving such member a copy of 53 the charges against them and an opportunity of being heard in person, or 54 by counsel, in their defense upon not less than ten days notice. Of the 55 members first appointed, one shall be appointed for a period of one 56 year, one for a period of two years, one for a period of three years, S. 3006--C 109 A. 3006--C

1 one for a period of four years, and one for a period of five years. At 2 the expiration of such terms, the terms of office of their successors 3 shall be five years. Each member shall continue to serve until the 4 appointment and qualification of a successor. Vacancies in such board 5 occurring otherwise than by the expiration of term shall be filled for 6 the unexpired term. The members of the board shall choose from their 7 number a vice-chair. The members of the board shall not be compensated 8 for their services, however, members shall be entitled to reimbursement 9 for any actual and necessary expenses incurred in the performance of 10 such member's official duties. The powers of the authority shall be 11 vested in and exercised by a majority of the members of the board. Such 12 board may delegate to one or more of its members or to its officers, 13 agents and employees such powers and duties as it may deem proper. 14 2. Notwithstanding any inconsistent provisions of any general, special 15 or local law, ordinance, resolution or charter, no officer, member or 16 employee of the state or of any public authority shall forfeit such 17 officer, member or employee's office or employment by reason of such 18 acceptance of appointment as a member, officer or employee of the 19 authority, nor shall service as such member, officer or employee be 20 deemed incompatible or in conflict with such office, membership or 21 employment. 22 3. (a) The mayor of the city shall file on or before December thirty- 23 first of the year in which this title shall take effect, in the office 24 of the secretary of state, a certificate signed by the mayor setting 25 forth: 26 (i) the name of the authority; 27 (ii) the names of the members of the board and their terms of office; 28 and 29 (iii) the effective date of this title. 30 (b) If such certificate is not filed with the secretary of state on or 31 before such date, then the corporate existence of the authority shall 32 thereupon terminate and it shall thereupon be deemed to be and shall be 33 dissolved. 34 4. The city of Buffalo parking authority shall not be authorized to 35 exercise the powers, duties, and functions outlined in this article 36 until all initial members and the initial chair are appointed. 37 § 1500-d. Purpose and powers of the authority. The purpose of the 38 authority shall be to aquire, reconstruct, operate and maintain one or 39 more covered projects in the city. To carry out said purpose, the 40 authority shall have power: 41 1. To sue and be sued; 42 2. To have a seal and alter the same at pleasure; 43 3. To acquire, hold and dispose of personal property for its corporate 44 purposes; 45 4. To make by-laws for the management and regulation of its affairs, 46 and, subject to agreements with bondholders, for the regulation of the 47 covered projects; 48 5. With the consent of the city, to use agents, employees and facili- 49 ties of the city, paying to the city its agreed proportion of the 50 compensation or costs; 51 6. To appoint officers, agents and employees, to prescribe their qual- 52 ifications and to fix their compensation; subject, however, to the 53 provisions of the civil service law, as hereinafter provided; 54 7. To appoint an attorney, who may be the corporation counsel of the 55 city, and to fix such attorney's compensation; S. 3006--C 110 A. 3006--C

1 8. To make contracts and leases, and to execute all instruments neces- 2 sary for its corporate purpose; 3 9. To construct such buildings, structures and facilities as may be 4 necessary for its corporate purpose; 5 10. To reconstruct, improve, maintain, repair and operate the covered 6 projects; 7 11. To accept grants, loans or contributions from the United States, 8 the state of New York, or any agency or instrumentality of either of 9 them, or the city, or an individual, by bequest or otherwise, and to 10 expend the proceeds for any purposes of the authority; 11 12. To fix and collect rentals, fees and other charges for the use of 12 the covered projects subject to and in accordance with such agreements 13 with bondholders as may be made as hereinafter provided; and 14 13. To construct, operate or maintain in the covered projects all 15 facilities necessary or convenient in connection therewith; and to 16 contract for the construction, operation or maintenance of any parts 17 thereof or for services to be performed; to rent parts thereof, and 18 grant concessions, all on such terms and conditions as it may determine; 19 provided however, that neither the authority, the city or any agency of 20 the authority or city, or any other person, firm or corporation shall, 21 within or on any property comprising a part of any covered project 22 authorized by this title, sell, dispense or otherwise handle any product 23 used in or for the servicing of any motor vehicle using any project or 24 facility authorized by this title, and provided further that the 25 location of sites of the covered projects shall be subject to the prior 26 approval of the planning board and common council of the city. 27 § 1500-e. Conveyance of property by the city to the authority; acqui- 28 sition of property by the city or by the authority. 1. The city may, by 29 resolution or resolutions of the common council or by instruments 30 authorized by such resolutions, convey, with or without consideration, 31 and upon appropriate conditions as to outstanding city bonds appertain- 32 ing thereto, to the authority real and personal property owned by the 33 city for use by the authority as a covered project or covered projects 34 or a part thereof. In case of real property so conveyed, the title ther- 35 eto shall remain in the city but the authority shall have the use and 36 occupancy thereof for so long as its corporate existence shall continue. 37 In the case of personal property so conveyed, the title shall pass to 38 the authority. 39 2. The city may acquire in the name of the city by purchase or condem- 40 nation real property in the city for any of the covered projects or for 41 the widening of existing roads, streets, avenues or highways, or for new 42 roads, streets, avenues or highways within a radius of one mile to any 43 of the covered projects, or partly for such purposes and partly for 44 other city purposes, by purchase or condemnation in the manner provided 45 by law for the acquisition of real property by the city. For like 46 purposes, the city may close such streets, roads, avenues, or highways 47 as may be necessary or convenient, except as to state highways and 48 arterial ways which shall not be closed without the consent of the New 49 York state commissioner of transportation. 50 3. Subject to the approval of the common council, contracts may be 51 entered into between the city and the authority providing for the prop- 52 erty to be conveyed by the city to the authority, the additional proper- 53 ty to be acquired by the city and so conveyed, the streets, roads, 54 avenues, and highways to be closed by the city and the amounts, terms 55 and conditions of payment to be made by the authority. Such contracts 56 may also contain covenants by the city as to the road, street, avenue S. 3006--C 111 A. 3006--C

1 and highway improvements to be made by the city. Any such contracts 2 between the city and the authority may be pledged by the authority to 3 secure its bonds and may not be modified thereafter except as provided 4 by the terms of the pledge. The common council may authorize such 5 contracts between the city and the authority and no other authorization 6 on the part of the city for such contracts shall be necessary. Any such 7 contracts may be so authorized and entered into by the city and in such 8 manner as the common council may determine, and the payments required to 9 be made by the city may be made and financed notwithstanding that no 10 provisions therefor shall have first been made in the annual appropri- 11 ations of the city. All contractual or other obligations of the city 12 incurred in carrying out the provisions of this title shall be included 13 in and provided for by each annual appropriation of the city thereafter 14 made, if and to the extent that they may appropriately be included ther- 15 ein. 16 4. The authority may, subject to the approval of the common council of 17 the city, itself acquire real property for a covered project in the name 18 of the city at the cost and expense of the authority by purchase. The 19 authority shall have the use and occupancy of such real property so long 20 as its corporate existence shall continue. 21 5. In case the authority shall have the use and occupancy of any real 22 property which it shall determine is no longer required for a covered 23 project then, if such property was acquired at the cost and expense of 24 the city, the authority shall have the power to surrender its use and 25 occupancy thereof to the city, or, if such real property was acquired at 26 the cost and expense of the authority, then the authority shall have the 27 power to sell, lease or otherwise dispose of said real property at 28 public or private sale, subject to applicable provisions of law, and 29 shall retain and have the power to use the proceeds of sale, rentals, or 30 other moneys derived from the disposition thereof for its purposes. 31 § 1500-f. Construction and purchase contracts. The authority shall let 32 contracts for construction in the same manner, so far as practicable, as 33 is provided by law for contracts of the city, including but not limited 34 to section one hundred three of the general municipal law. Nothing in 35 this section shall be construed to limit the power of the authority to 36 do any construction directly by the officers, agents and employees of 37 the authority. Contracts for the purchase of supplies, material and 38 equipment shall be let in the same manner as is provided by law for 39 contracts of the city. 40 § 1500-g. Contract for employees. The authority is hereby authorized 41 to enter into contracts under which such contractor would provide 42 employees to the authority for the purpose of operation and maintenance 43 of the projects of the authority. All employees currently employed by 44 the city or by a contractor to support operations currently managed by 45 the city shall be retained by any contractor retained pursuant to this 46 section. The authority shall not begin operation of any project until 47 such a contract shall be in force. Such contract shall provide that all 48 employees engaged in the operation and maintenance of any authority 49 project shall be employees of the contractor and not employees of the 50 authority. Such employees shall receive their total compensation and any 51 employee benefits directly from the contractor for whom they are 52 employed provided any relevant local regulation, rule or ordinance 53 related to wage shall apply. Except for roles considered to be manage- 54 ment or confidential pursuant to article fourteen of the civil service 55 law, including the board of the authority, established by section 56 fifteen hundred-c of this title, the authority shall have no employees S. 3006--C 112 A. 3006--C

1 other than the employees of the contractor pursuant to any contract 2 authorized by this section. 3 § 1500-h. Moneys of the authority. All moneys of the authority from 4 whatever source derived shall be paid to the treasurer of the city as 5 agent of the authority, who shall not commingle such moneys with any 6 other moneys. Such moneys shall be deposited in a separate bank account 7 or accounts. The money in such accounts shall be paid out by the treas- 8 urer on requisition of the chair of the authority or of such person or 9 persons as the authority may authorize to make such requisitions after 10 audit by and upon the warrant of the city comptroller. All deposits of 11 such moneys shall, if required by the treasurer or the authority, be 12 secured by obligations of the United States or the state of New York or 13 of any municipality of a market value equal at all times to the amount 14 of the deposit, and all banks and trust companies are authorized to give 15 such security for such deposits. To the extent practicable, consistent 16 with the cash requirements of the authority, all such monies shall be 17 deposited in interest bearing accounts. The treasurer and a legally 18 authorized representative of the treasurer are authorized and empowered 19 from time to time to examine the accounts and books of the authority, 20 including its receipts, disbursements, contracts, leases, sinking funds, 21 investments and any other records and papers relating to its financial 22 standing. The account of the authority shall be subject to the super- 23 vision of the New York state comptroller, and such comptroller or legal- 24 ly authorized representatives of the comptroller are authorized and 25 empowered from time to time to examine the accounts and books of the 26 authority, including its receipts, disbursements, contracts, leases, 27 sinking funds, investments and any other records and papers relating to 28 its financial standing and fiscal affairs. The authority shall have 29 power, notwithstanding the provisions of this section, to contract with 30 the holders of any of its bonds as to the custody, collection, securing, 31 investment and payment of any moneys of the authority or any moneys held 32 in trust or otherwise for the payment of bonds or in any way to secure 33 bonds, and to carry out any such contract notwithstanding that such 34 contract may be inconsistent with the previous provisions of this 35 section. Moneys held in trust or otherwise for the payment of bonds or 36 in any way to secure bonds and deposits of such moneys may be acquired 37 in the same manner as moneys of the authority, and all banks and trust 38 companies are authorized to give such security for such deposits. Any 39 monies of the authority not required for immediate use or disbursement 40 may, at the discretion of the authority, be invested pursuant to section 41 ninety-eight-a of the state finance law in accordance with guidelines 42 established by the board and amended from time to time. Subject to the 43 provisions of any contract with bondholders and with the approval of the 44 state comptroller, the authority shall prescribe a system of accounts, 45 provided however, the authority shall render a complete annual account 46 of its proceedings to the common council at its first meeting in January 47 of each and every year. The authority shall enter into agreement with 48 the city to pay and transfer a certain portion of excess revenues of the 49 authority to the city each fiscal year. Within ninety days after the end 50 of each fiscal year, an annual financial and management audit of the 51 authority's performance and operations shall be prepared by an independ- 52 ent certified public accountancy firm. Such firm shall be chosen from an 53 approved list of auditors prescribed by the city comptroller, the 54 expense of which shall be treated as an expense of the authority. 55 § 1500-i. Bonds or notes of the authority. 1. The authority shall have 56 the power and is hereby authorized from time to time to issue bonds, S. 3006--C 113 A. 3006--C

1 notes, or other obligations in conformity with applicable provisions of 2 the uniform commercial code to: (a) pay the cost of acquisition of prop- 3 erty in any covered project; (b) pay the cost of reconstructing, main- 4 taining, improving or repairing any covered project; (c) pay such 5 expenses as may be deemed by the board necessary or desirable to the 6 financing thereof and placing such covered project in operation; (d) 7 establish reserves to secure the bonds; and (e) pay the principal of, 8 premium, if any, and interest on the bonds and the payment of incidental 9 expenses in connection therewith. The aggregate principal amount of such 10 bonds, notes or other obligations shall not exceed sixty-five million 11 dollars, excluding bonds, notes or other obligations issued to refund or 12 repay bonds, notes or other obligations therefore issued for such 13 purposes; provided, however, that upon any such refunding or repayment 14 the total aggregate principal amount of outstanding bonds, notes or 15 other obligations may be greater than sixty-five million dollars, only 16 if the present value of the aggregate debt service of the refunding or 17 repayment of bonds, notes or other obligations to be issued shall not 18 exceed the present value of the aggregate debt service of the bonds, 19 notes or other obligations so to be refunded or repaid. For the purpose 20 of this section, the present value of the aggregate debt service of the 21 refunding or repayment bonds, notes or other obligations and the aggre- 22 gate debt service of the bonds, notes or other obligations refunded or 23 repaid shall be calculated by utilizing the effective interest rate of 24 the refunding or repayment of bonds, notes or other obligations, which 25 shall be that rate arrived at by doubling the semi-annual interest rate 26 (compounded semi-annually) necessary to discount the debt service 27 payments on the refunding or repayment of bonds, notes or other obli- 28 gations from payment of dates thereof to the date of issue of the 29 refunding or repayment of bonds, notes or other obligations and to the 30 price bid including estimated accrued interest from the sale thereof. 31 The authority shall have the power and is hereby authorized to enter 32 into such agreements and perform such acts as may be required under any 33 applicable federal law, rule or regulation to secure a federal guarantee 34 to any bonds. With respect to any proposed borrowing by the authority, 35 the authority shall notify the Buffalo fiscal stability authority of 36 each proposed issue of bonds or notes to be issued to give the Buffalo 37 fiscal stability authority an opportunity to review the terms of and 38 comment on the prudence of each proposed issue of bonds or notes to be 39 issued by the parking authority for a period of no less than ten days 40 prior to issuing such bonds or notes. 41 2. The authority shall have the power from time to time to renew bonds 42 or to issue renewal bonds for such purpose, to issue bonds to pay bonds, 43 and, whenever it deems refunding expedient, to refund any bond by the 44 issuance of new bonds, whether the bonds to be refunded have or have not 45 matured, and may issue bonds, partly to refund bonds then outstanding 46 and partly for any other purpose of the authority. Bonds issued for 47 refunding purposes shall be sold and the proceeds applied to the 48 purchase, redemption or payment of the bonds or notes to be refunded. 49 3. Bonds issued by the authority may be general obligations secured by 50 the faith and credit of the authority or may be special obligations 51 payable solely out of particular revenues or other monies as may be 52 designated in the proceedings of the authority under which the bonds 53 shall be authorized to be issued, subject as to priority only to any 54 agreements with the holders of outstanding bonds pledging any particular 55 property, revenues or monies. The authority may also enter into loan 56 agreements, lines of credit and other security agreements and obtain for S. 3006--C 114 A. 3006--C

1 or on its behalf letters of credit, insurance, guarantees or other cred- 2 it enhancements to the extent now or hereafter available, in each case 3 for securing its bonds or to provide direct payment of any costs which 4 the authority is authorized to pay. 5 4. (a) Bonds shall be authorized by resolution of the authority be in 6 such denominations and bear such date or dates and mature at such time 7 or times, as such resolution may provide, provided that bonds and 8 renewals thereof shall mature within thirty years from the date of 9 original issuance of any such bonds. 10 (b) Bonds shall be subject to such terms of redemption, bear interest 11 at such rate or rates, be payable at such times, be in such form, either 12 coupon or registered, carry such registration privileges, be executed in 13 such manner, be payable in such medium of payment at such place or plac- 14 es, and be subject to such terms and conditions as such resolution may 15 provide. Notwithstanding any other provision of law, the bonds of the 16 authority issued pursuant to this section shall be sold to the bidder 17 offering the lowest true interest cost, taking into consideration any 18 premium or discount not less than four nor more than fifteen days, 19 Sunday excepted, after a notice of such sale has been published at least 20 once in a newspaper of general circulation in the area served by the 21 authority, which shall state the terms of the sale. The terms of the 22 sale may not change unless notice of such change is published in such 23 newspaper at least one day prior to the date of the sale as set forth in 24 the original notice of sale. Advertisements shall contain a provision to 25 the effect that the authority, in its discretion, may reject any or all 26 bids made pursuant to such advertisements, and in the event of such 27 rejection, the authority is authorized to negotiate a private or public 28 sale or readvertise for bids in the form and manner described above in 29 this paragraph as many times as, in its judgment, may be necessary to 30 effect satisfactory sale. 31 (c) Notwithstanding the provisions of paragraph (b) of this subdivi- 32 sion, whenever in the judgment of the authority the interests of the 33 authority will be served thereby, the board, on the written recommenda- 34 tion of the chairperson may authorize the sale of such bonds at private 35 or public sale on a negotiated basis or on either a competitive or nego- 36 tiated basis. The authority shall set guidelines governing the terms and 37 conditions of any such private or public sales. The private or public 38 bond sale guidelines set by the authority shall include, but not be 39 limited to, a requirement that where the interests of the authority will 40 be served by a private or public sale of bonds, the authority shall 41 select underwriters taking into account, among other things, qualifica- 42 tions of underwriters as to experience, their ability to structure and 43 sell authority bond issues, anticipated costs to the authority, the 44 prior experience of the authority with the firm, if any, the capitaliza- 45 tion of such firms, participation of qualified minority and women-owned 46 business enterprise firms in such private or public sales of bonds of 47 the authority and the experience and ability of firms under consider- 48 ation to work with minority and women-owned business enterprises so as 49 to promote and assist participation by such enterprises. 50 (d) The authority shall have the power from time to time to amend such 51 private bond sale guidelines in accordance with the provisions of this 52 subdivision. 53 (e) No private or public bond sale on a negotiated basis shall be 54 conducted by the authority without prior approval of the state comp- 55 troller. The authority shall annually prepare and approve a bond sale 56 report which shall include the private or public bond sale guidelines as S. 3006--C 115 A. 3006--C

1 specified in this subdivision, amendments to such guidelines since the 2 last private or public bond sale report, an explanation of the bond sale 3 guidelines and amendments, and the results of any sale of bonds 4 conducted during the fiscal year. Such bond sale report may be a part of 5 any other annual report that the authority is required to make. 6 (f) The authority shall annually submit its bond sale report to the 7 Buffalo fiscal stability authority and the state comptroller and copies 8 thereof to the senate finance committee and the assembly ways and means 9 committee. 10 (g) The authority shall make available to the public copies of its 11 bond sale report upon reasonable request thereof. 12 (h) Nothing contained in this subdivision shall be deemed to alter, 13 affect the validity of, modify the terms of, or impair any contract or 14 agreement made or entered into in violation of, or without compliance 15 with, the provisions of this subdivision. 16 5. Any resolution or resolutions authorizing bonds or any issue of 17 bonds by the authority may contain provisions which may be a part of the 18 contract with the holders of the bonds thereby authorized as to: 19 (a) pledging all or part of the revenues, together with any other 20 monies or property of the authority to secure the payment of the bonds, 21 or any costs of issuance thereof, including but not limited to, any 22 contracts, earnings or proceeds of any grant to the authority received 23 from any private or public source subject to such agreements with bond- 24 holders as may then exist; 25 (b) the setting aside of reserves and the creation of sinking funds 26 and the regulation and disposition thereof; 27 (c) limitations on the purpose to which the proceeds from the sale of 28 bonds may be applied; 29 (d) the rates, rents, fees and other charges to be fixed and collected 30 by the authority and the amount to be raised in each year thereby and 31 the use and disposition of revenues; 32 (e) limitations on the right of the authority to restrict and regulate 33 the use of the covered project or part thereof in connection with which 34 bonds are issued; 35 (f) limitations on the issuance of additional bonds, the terms upon 36 which additional bonds may be issued and secured and the refunding of 37 outstanding or other bonds; 38 (g) the procedure, if any, by which the terms of any contract with 39 bondholders may be amended or abrogated, including the proportion of 40 bondholders which must consent thereto, and the manner in which such 41 consent may be given; 42 (h) the creation of special funds into which any revenues or monies 43 may be deposited; 44 (i) the terms and provisions of any trust, mortgage, deed or indenture 45 securing the bonds under which the bonds may be issued; 46 (j) vesting in a trustee or trustees such properties, rights, powers 47 and duties in trust as the authority may determine which may include any 48 or all of the rights, powers and duties of the trustees appointed by the 49 bondholders pursuant to this title or limiting the rights, duties and 50 powers of such trustee; 51 (k) defining the acts or omissions to act which may constitute a 52 default in the obligations and duties of the authority to the bondhold- 53 ers and providing for the rights and remedies of the bondholders in the 54 event of such default, including as a matter of right appointment of a 55 receiver, provided, however, that such rights and remedies shall not be S. 3006--C 116 A. 3006--C

1 inconsistent with the laws of the state and other provisions of this 2 title; 3 (l) limitations on the power of the authority to sell or otherwise 4 dispose of any covered project or any part thereof or other property; 5 (m) limitations on the amount of revenues and other monies to be 6 expended for operating, administrative or other expenses of the authori- 7 ty; 8 (n) the payment of the proceeds of bonds, revenues and other monies to 9 a trustee or other depository, and for the method of disbursement there- 10 of with such safeguards and restrictions as the authority may determine; 11 and 12 (o) any other matters of like or different character which in any way 13 affect the security or protection of the bonds or the rights and reme- 14 dies of the bondholders. 15 6. In addition to the powers conferred by this section upon the 16 authority to secure its bonds, the authority shall have the power in 17 connection with the issuance of bonds to adopt resolutions and enter 18 into such trust indentures, agreements or other instruments as the 19 authority may deem necessary, convenient or desirable concerning the use 20 or disposition of its revenues or other monies or property, including 21 the mortgaging of any property and the entrusting, pledging or creation 22 of any other security interest in any such revenues, monies or property 23 and the doing of any act, including refraining from doing any act which 24 the authority would have the right to do in the absence of such resol- 25 utions, trust indentures, agreements or other instruments. The authori- 26 ty shall have power to enter into amendments of any such resolutions, 27 trust indentures, agreements or other instruments within the powers 28 granted to the authority by this title and to perform such resolutions, 29 trust indentures, agreements or other instruments. The provisions of any 30 such resolutions, trust indentures, agreements or other instruments may 31 be made a part of the contract with the holders of bonds of the authori- 32 ty. 33 7. Any provision of the uniform commercial code to the contrary 34 notwithstanding, any pledge of or other security interest in revenues, 35 monies, accounts, contract rights, general intangibles or other personal 36 property made or created by the authority shall be valid, binding and 37 perfected from the time when such pledge is made or other security 38 interest attaches without any physical delivery of the collateral or 39 further act, and the lien of any such pledge or other security interest 40 shall be valid, binding and perfected against all parties having claims 41 of any kind in tort, contract or otherwise against the authority irre- 42 spective of whether or not such parties have notice thereof. No instru- 43 ment by which such a pledge or security interest is created nor any 44 financing statement need be recorded or filed. 45 8. Whether or not the bonds of the authority are of such form and 46 character as to be negotiable instruments under the terms of the uniform 47 commercial code, the bonds are hereby made negotiable instruments within 48 the meaning of and for all the purposes of the uniform commercial code, 49 subject only to the provisions of the bonds for registration. 50 9. Neither the members nor the officers of the authority nor any 51 person executing its bonds shall be liable personally on its bonds or be 52 subject to any personal liability or accountability by reason of the 53 issuance thereof. 54 10. Subject to such agreements with bondholders as may then exist, the 55 authority shall have the power to purchase the bonds of the authority, 56 in lieu of redemption, out of any funds available therefor, at a price S. 3006--C 117 A. 3006--C

1 not exceeding, if the bonds are then redeemable, the redemption price 2 then applicable plus accrued interest to the next interest payment date, 3 or, if the bonds are not then redeemable, the redemption price applica- 4 ble on the first date after such purchase upon which the bonds become 5 subject to redemption plus accrued interest to the next interest payment 6 date. Bonds so purchased shall there upon be canceled. 7 11. The authority shall have power and is hereby authorized to issue 8 negotiable bond anticipation notes in conformity with the applicable 9 provisions of the uniform commercial code and may renew the same from 10 time to time but the maximum maturity of any such note, including 11 renewals thereof, shall not exceed two years from the date of issue of 12 such original note. 13 § 1500-j. Agreements of New York state. The state does hereby pledge 14 to and agree with the holders of any bonds issued by the authority 15 pursuant to this title and with those persons or public authorities who 16 may enter into contracts with the authority pursuant to the provisions 17 of this title that the state will not alter, limit or impair the rights 18 vested in the authority by this title to purchase, construct, own and 19 operate, maintain, repair, improve, reconstruct, renovate, rehabilitate, 20 enlarge, increase and extend, or dispose of any covered project, or any 21 part or parts thereof for which bonds of the authority shall have been 22 issued, to establish and collect rentals, fees and other charges 23 referred to in this title, to fulfill the terms of any contracts or 24 agreements made with or for the benefit of the holders of the bonds, or 25 with any person or public authority with reference to such covered 26 project or part thereof, or in any way to impair the rights and remedies 27 of the bondholders, until the bonds, together with interest thereon, 28 including interest on any unpaid installments of interest and all costs 29 and expenses in connection with any action or proceeding by or on behalf 30 of the holders of bonds, are fully met and discharged and such contracts 31 are fully performed on the part of the authority. The authority is 32 authorized to include this pledge and agreement of the state in any 33 agreement with the holders of bonds. 34 § 1500-k. Agreements of the city. 1. The city is authorized to 35 pledge to and agree with the holders of any bonds issued by the authori- 36 ty pursuant to this title and with those persons or public authorities 37 who may enter into contracts with the authority pursuant to the 38 provisions of this title that the city will not alter, limit or impair 39 the rights hereby vested in the authority by this title to purchase, 40 construct, own and operate, maintain, repair, improve, reconstruct, 41 renovate, rehabilitate, enlarge, increase and extend, or dispose of any 42 covered project, or any part or parts thereof, for which bonds of the 43 authority shall have been issued, to establish, collect and adjust 44 rates, rents, fees and other charges referred to in this title, to 45 fulfill the terms of any agreements made with the holders of the bonds 46 or with any public authority or person with reference to such project or 47 part thereof, or in any way impair the rights and remedies of the hold- 48 ers of bonds, until the bonds, together with interest thereon, including 49 interest on any unpaid installments of interest, and all costs and 50 expenses in connection with any action or proceeding by or on behalf of 51 the holders of bonds, are fully met and discharged and such contracts 52 are fully performed on the part of the authority. 53 2. The authority is hereby authorized, in its discretion, for and on 54 behalf of itself and subject to approval by the common council and the 55 mayor, to covenant and agree with the holders of the bonds, with such 56 exceptions and limitations as it may deem to be in the public interest, S. 3006--C 118 A. 3006--C

1 that no public parking areas except those acquired and operated by the 2 authority will be constructed or operated in the city by the city, or by 3 any public benefit or other corporation the members or some of which are 4 elected or are appointed by city officials, until either (a) the bonds, 5 together with interest thereon, interest on any unpaid installments of 6 interest and all costs and expenses in connection with any action or 7 proceeding by or on behalf of the bondholders are fully met and 8 discharged or (b) principal or interest of any of the bonds shall be 9 overdue and unpaid for a period of three years or more, provided that 10 nothing in this section shall be deemed to impair the right of the city 11 to install and operate parking meters on the public streets of the city. 12 § 1500-l. State and city not liable on bonds. The bonds and other 13 obligations of the authority shall not be a debt of the state of New 14 York or of the city, and neither the state nor the city shall be liable 15 thereon, nor shall they be payable out of any funds other than those of 16 the authority. 17 § 1500-m. Bonds legal investments for public officers. The bonds are 18 hereby made securities in which all public officers and bodies of this 19 state and all municipalities and municipal subdivisions, all insurance 20 companies and associations and other persons carrying on an insurance 21 business, all banks, bankers, trust companies, savings banks and savings 22 associations, including savings and loan associations, building and loan 23 associations, investment companies and other persons carrying on a bank- 24 ing business, and all other persons whatsoever except as hereinafter 25 provided, who are now or may hereafter be authorized to invest in bonds 26 or other obligations of the state, may properly and legally invest funds 27 including capital in their control or belonging to them; provided that, 28 notwithstanding the provisions of any other general or special law to 29 the contrary, such bonds shall not be eligible for the investment of 30 funds, including capital, of trusts, estates or guardianships under the 31 control of individual administrators, guardians, executors, trustees and 32 other individual fiduciaries. The bonds are also hereby made securities 33 which may be deposited with and shall be received by all public officers 34 and bodies of this state and all municipalities and municipal subdivi- 35 sions for any purpose for which the deposit of bonds or other obli- 36 gations of this state is now or may hereafter be authorized. 37 § 1500-n. Tax exemptions. 1. It is hereby determined that the creation 38 of the authority and the carrying out of its corporate purposes is in 39 all respects for the benefit of the people of the city and its environs, 40 and is a public purpose, and the authority shall be regarded as perform- 41 ing a governmental function in the exercise of the powers conferred upon 42 it by this title and shall be required to pay no taxes or assessments 43 upon any of the property acquired by it or under its jurisdiction or 44 control or supervision or upon its activities. 45 2. Any bonds or notes issued pursuant to this title, together with the 46 income therefrom, as well as the property of the authority, shall be 47 exempt from taxation, except for estate or gift taxes and taxes on 48 transfers. 49 § 1500-o. Tax contract by the state. The state of New York covenants 50 with the purchasers and with all subsequent holders and transferees of 51 bonds or notes issued by the authority pursuant to this title, in 52 consideration of the acceptance of and payment for the bonds or notes, 53 that the bonds and notes of the authority issued pursuant to this title 54 and the income therefrom, and all moneys, funds and revenues pledged to 55 pay or secure the payment of such bonds or notes shall at all times be S. 3006--C 119 A. 3006--C

1 free from taxation except for estate or gift taxes and taxes on trans- 2 fers. 3 § 1500-p. Remedies of bondholders. 1. In the event that the authority 4 shall default in the payment of principal of or interest on any issue of 5 the bonds after the same shall become due, whether at maturity or upon 6 call for redemption, and such default shall continue for a period of 7 thirty days, or in the event that the authority shall fail or refuse to 8 comply with the provisions of this title, or shall default in any agree- 9 ment made with the holders of any issue of the bonds, the holders of 10 twenty-five per centum in aggregate principal amount of the bonds of 11 such issue then outstanding, by instrument or instruments filed in the 12 office of the clerk of the county of Erie and proved or acknowledged in 13 the same manner as a deed to be recorded, may appoint a trustee to 14 represent the holders of such bonds for the purposes herein provided. 15 2. Such trustee may, and upon written request of the holders of twen- 16 ty-five per centum in principal amount of such bonds then outstanding 17 shall, in such trustee's own name: 18 (a) by action or special proceeding enforce all rights of the bond- 19 holders, including the right to require the authority to collect reven- 20 ues adequate to carry out by any agreement as to, or pledge of, such 21 revenues, and to require the authority to carry out any other agreements 22 with the holders of such bonds and to perform its duties under this 23 title; 24 (b) bring suit upon such bonds; 25 (c) by action or special proceeding, require the authority to account 26 as if it were the trustee of an express trust for the holders of such 27 bonds; 28 (d) by action or special proceeding, enjoin any acts or things which 29 may be unlawful or in violation of the rights of the holders of such 30 bonds; 31 (e) declare all such bonds due and payable, and if all defaults shall 32 be made good then with the consent of the holders of twenty-five per 33 centum of the principal amount of such bonds then outstanding, to annul 34 such declaration and its consequences. 35 3. The supreme court shall have jurisdiction of any suit, action or 36 proceeding by the trustee on behalf of bondholders. The venue of any 37 such suit, action or proceeding shall be laid in the county of Erie. 38 4. Before declaring the principal of all such bonds due and payable, 39 the trustee shall first give thirty days' notice in writing to the 40 authority. 41 5. Any such trustee, whether or not the issue of bonds represented by 42 such trustee has been declared due and payable, shall be entitled as of 43 right to the appointment of a receiver of any part or parts of the 44 covered project the revenues of which are pledged for the security of 45 the bonds of such issue, and such receiver may enter and take possession 46 of such part or parts of the covered project and, subject to any pledge 47 or agreement with bondholders, shall take possession of all moneys and 48 other property derived from or applicable to the acquisition, 49 construction, operation, maintenance and reconstruction of such part or 50 parts of the covered project and proceed with the acquisition of any 51 necessary real property in connection with the covered project that the 52 authority has covenanted to construct, and with any construction which 53 the authority is under obligation to do and to operate, maintain and 54 reconstruct such part or parts of the covered project and collect and 55 receive all revenues thereafter arising therefrom subject to any pledge 56 thereof or agreement with bondholders relating thereto and perform the S. 3006--C 120 A. 3006--C

1 public duties and carry out the agreements and obligations of the 2 authority under the direction of the court. In any suit, action or 3 proceeding by the trustee, the fee, counsel fees and expenses of the 4 trustee and of the receiver, if any, shall constitute taxable disburse- 5 ments and all costs and disbursements allowed by the court shall be a 6 first charge on any revenues derived from such project. 7 6. Such trustee shall, in addition to the foregoing, have and possess 8 all of the powers necessary or appropriate for the exercise of any func- 9 tions specifically set forth herein or incident to the general represen- 10 tation of bondholders in the enforcement and protection of their rights. 11 § 1500-q. Actions against the authority. 1. In every action against 12 the authority for damages, for injuries to real or personal property, or 13 for the destruction thereof, or for personal injuries or death, the 14 complaint shall contain an allegation that at least ninety days have 15 elapsed since the demand, claim or claims upon which such action is 16 founded were presented to a member of the authority, or to its secre- 17 tary, or to its chief executive officer and that the authority has 18 neglected or refused to make an adjustment or payment thereof for ninety 19 days after such presentment. 20 2. Except in an action for wrongful death, an action against the 21 authority for damages for injuries to real or personal property, or for 22 the destruction thereof, or for personal injuries, alleged to have been 23 sustained, shall not be commenced more than one year and ninety days 24 after the cause of action therefor shall have accrued, nor unless a 25 notice of claim shall have been served on the authority within the time 26 limit established by, and in compliance with all requirements of section 27 fifty-e of the general municipal law. An action against the authority 28 for wrongful death shall be commenced in accordance with the notice of 29 claim and time limitation provisions of title eleven of article nine of 30 this chapter. 31 § 1500-r. Defense and indemnification. The authority shall not execute 32 any of its powers, except as necessary to commence its corporate exist- 33 ence, until the authority confers upon its members the provisions of 34 section eighteen of the public officers law, pursuant to subdivision two 35 of such section; provided, however, that nothing contained within this 36 section shall be deemed to permit the authority to extend the provisions 37 of section eighteen of the public officers law upon any independent 38 contractor. 39 § 1500-s. Code of ethics. 1. As used in this section, the term 40 "authority employee" shall mean any member, officer, employee, or 41 contracted employee of the authority. 42 2. No authority employee shall have any interest, financial or other- 43 wise, direct or indirect, or engage in any business or transaction or 44 professional activity or incur any obligation of any nature, which is in 45 substantial conflict with the proper discharge of such authority employ- 46 ee's duties in the public interest. 47 3. (a) No authority employee shall accept other employment, which will 48 impair such authority employee's independence of judgment in the exer- 49 cise of such employee's official duties. 50 (b) No authority employee shall accept employment or engage in any 51 business or professional activity which will require the employee to 52 disclose confidential information which such employee has gained by 53 reason of their official position or authority. 54 (c) No authority employee shall disclose confidential information 55 acquired by the employee in the course of such employee's official 56 duties nor use such information to further any personal interests. S. 3006--C 121 A. 3006--C

1 (d) No authority employee shall use or attempt to use such employee's 2 official position to secure unwarranted privileges or exemptions for 3 personal gain or the personal gain of others. 4 (e) No authority employee shall engage in any transaction as represen- 5 tative or agent of the authority with any business entity in which such 6 employee has a direct or indirect financial interest that might reason- 7 ably tend to conflict with the proper discharge of such employee's offi- 8 cial duties. 9 (f) An authority employee shall not by such employee's conduct give 10 reasonable basis for the impression that any person can improperly 11 influence such employee or unduly enjoy such employee's favor in the 12 performance of their official duties, or that such employee is affected 13 by the kinship, rank, position or influence of any party or person. 14 (g) An authority employee shall abstain from making personal invest- 15 ments in enterprises which such authority employee has reason to believe 16 may be directly involved in decisions to be made by the employee or 17 which will otherwise create substantial conflict between such employee's 18 duty in the public interest and their private interest. 19 (h) An authority employee shall endeavor to pursue a course of conduct 20 which will not raise suspicion among the public that such employee is 21 likely to be engaged in acts that are in violation of public trust. 22 (i) No authority employee who is employed on a full-time basis by any 23 firm, company, or association, is a member of such firm, company or, 24 association, or owns or controls, directly or indirectly, a substantial 25 portion of stock of such firm, company, or association which sells goods 26 or services shall sell such goods or services to any person, firm, 27 corporation or association which is licensed or whose rates are fixed by 28 the authority in which such employee serves or is employed. 29 (j) If any authority employee shall have any financial interest, 30 direct or indirect, having a value of ten thousand dollars or more in 31 any activity which is subject to the jurisdiction of a regulatory agen- 32 cy, such authority employee shall file with the secretary of state a 33 written statement that such employee has such a financial interest in 34 such activity. Such statement shall be open to public inspection. 35 4. In addition to any applicable provision of law, any authority 36 employee who shall knowingly and intentionally violate any of the 37 provisions of this section may be fined, suspended, or removed from 38 office or employment. 39 § 1500-t. Contracting for municipal services. In addition to any other 40 general or special powers vested in public benefit corporations for the 41 performance of their respective functions, powers or duties on an indi- 42 vidual, cooperative, joint, or contract basis, the authority shall have 43 power to enter into, amend, cancel, and terminate agreements with the 44 city of Buffalo for the provision and reimbursement of services. Any 45 agreement entered into hereunder shall be subject to prior approval of 46 the common council of the city of Buffalo and the authority by a majori- 47 ty vote of the voting strength of its governing body. 48 § 1500-u. Termination of authority. Whenever all bonds or notes issued 49 by the authority shall have been redeemed or cancelled, and all trans- 50 actions, debt, and such other obligations have been satisfied or other- 51 wise terminated, the agency shall cease to exist and all rights, titles, 52 interest, and assets thereof vested in or possessed by the authority 53 shall thereupon vest in and be possessed by the city of Buffalo. 54 § 1500-v. Title not affected if in part unconstitutional or ineffec- 55 tive. If any section, clause or provision of this title shall be uncon- 56 stitutional or be ineffective in whole or in part, to the extent that it S. 3006--C 122 A. 3006--C

1 is not unconstitutional or ineffective, it shall be valid and effective 2 and no other section, clause or provision shall on account thereof be 3 deemed invalid or ineffective. 4 § 1500-w. Inconsistent provisions in other acts superseded. Insofar as 5 the provisions of this title are inconsistent with the provisions of any 6 other act, general or special, or of any local law of the city, the 7 provisions of this title shall be controlling. 8 § 2. This act shall take effect immediately.

9 PART KK

10 Section 1. Paragraph (a) of subdivision 1 of section 518 of the labor 11 law, as amended by section 1 of part O of chapter 57 of the laws of 12 2013, is amended to read as follows: 13 (a) "Wages" means all remuneration paid, except that such term does 14 not include remuneration paid to an employee by an employer after eight 15 thousand five hundred dollars have been paid to such employee by such 16 employer with respect to employment during any calendar year, except 17 that such term does not include remuneration paid to an employee by an 18 employer with respect to employment during any calendar year beginning 19 with the first day of 20 that exceeds 21 January 2014 $10,300 22 January 2015 $10,500 23 January 2016 $10,700 24 January 2017 $10,900 25 January 2018 $11,100 26 January 2019 $11,400 27 January 2020 $11,600 28 January 2021 $11,800 29 January 2022 $12,000 30 January 2023 $12,300 31 January 2024 $12,500 32 January 2025 $12,800 33 [ January 2026 $13,000 ] 34 and each year thereafter on the first day of January that exceeds 35 [ sixteen ] eighteen percent of the state's average annual wage as deter- 36 mined by the commissioner on an annual basis pursuant to section five 37 hundred twenty-nine of this [ article ] title ; provided, however, that in 38 calculating such maximum amount of remuneration, the amount arrived at 39 by multiplying the state's average annual wage times [ sixteen ] eighteen 40 percent shall be rounded up to the nearest hundred dollars. In no event 41 shall the state's annual average wage be reduced from the amount deter- 42 mined in the previous year. The term "employment" includes for the 43 purposes of this subdivision services constituting employment under any 44 unemployment compensation law of another state or the United States. 45 § 2. Subdivision 1 of section 529 of the labor law, as added by 46 section 3 of part O of chapter 57 of the laws of 2013, is amended to 47 read as follows: 48 1. The "average annual wage" shall be the average annual wage of the 49 state of New York for the previous calendar year as determined by the 50 commissioner no later than the thirty-first day of May of each year. 51 For purposes of calculating "wages" pursuant to paragraph (a) of subdi- 52 vision one of section five hundred eighteen of this title only, the 53 "average annual wage" shall be calculated using the four most recent S. 3006--C 123 A. 3006--C

1 quarters of published New York state quarterly census of employment and 2 wages data. 3 § 3. Subdivision 5 of section 590 of the labor law, as amended by 4 section 8, paragraph (b) as added by section 10 of part O of chapter 57 5 of the laws of 2013 and paragraph (c) as added by chapter 277 of the 6 laws of 2021, is amended to read as follows: 7 5. Benefit rate. (a) A claimant's weekly benefit amount shall be one 8 twenty-sixth of the remuneration paid during the highest calendar quar- 9 ter of the base period by employers, liable for contributions or 10 payments in lieu of contributions under this article, provided the 11 claimant has remuneration paid in all four calendar quarters during [ his 12 or her ] such claimant's base period or alternate base period. However, 13 for any claimant who has remuneration paid in all four calendar quarters 14 during [ his or her ] such claimant's base period or alternate base period 15 and whose high calendar quarter remuneration during the base period is 16 three thousand five hundred seventy-five dollars or less, the benefit 17 amount shall be one twenty-fifth of the remuneration paid during the 18 highest calendar quarter of the base period by employers liable for 19 contributions or payments in lieu of contributions under this article. A 20 claimant's weekly benefit shall be one twenty-sixth of the average 21 remuneration paid in the two highest quarters paid during the base peri- 22 od or alternate base period by employers liable for contributions or 23 payments in lieu of contributions under this article when the claimant 24 has remuneration paid in two or three calendar quarters provided howev- 25 er, that a claimant whose high calendar quarter is four thousand dollars 26 or less but greater than three thousand five hundred seventy-five 27 dollars shall have a weekly benefit amount of one twenty-sixth of such 28 high calendar quarter. However, for any claimant who has remuneration 29 paid in two or three calendar quarters during [ his or her ] such claim- 30 ant's base period or alternate base period and whose high calendar quar- 31 ter remuneration during the base period is three thousand five hundred 32 seventy-five dollars or less, the benefit amount shall be one twenty- 33 fifth of the remuneration paid during the highest calendar quarter of 34 the base period by employers liable for contributions or payments in 35 lieu of contributions under this article. Any claimant whose high calen- 36 dar quarter remuneration during the base period is more than three thou- 37 sand five hundred seventy-five dollars shall not have a weekly benefit 38 amount less than one hundred forty-three dollars. The weekly benefit 39 amount, so computed, that is not a multiple of one dollar shall be 40 lowered to the next multiple of one dollar. On the first Monday of 41 September, nineteen hundred ninety-eight the weekly benefit amount shall 42 not exceed three hundred sixty-five dollars nor be less than forty 43 dollars, until the first Monday of September, two thousand, at which 44 time the maximum benefit payable pursuant to this subdivision shall 45 equal one-half of the state average weekly wage for covered employment 46 as calculated by the department no sooner than July first, two thousand 47 and no later than August first, two thousand, rounded down to the lowest 48 dollar. On and after the first Monday of October, two thousand fourteen, 49 the weekly benefit shall not be less than one hundred dollars, nor shall 50 it exceed four hundred twenty dollars until the first Monday of October, 51 two thousand fifteen when the maximum benefit amount shall be four 52 hundred twenty-five dollars, until the first Monday of October, two 53 thousand sixteen when the maximum benefit amount shall be four hundred 54 thirty dollars, until the first Monday of October, two thousand seven- 55 teen when the maximum benefit amount shall be four hundred thirty-five 56 dollars, until the first Monday of October, two thousand eighteen when S. 3006--C 124 A. 3006--C

1 the maximum benefit amount shall be four hundred fifty dollars, until 2 the first Monday of October, two thousand nineteen when the maximum 3 benefit amount shall be thirty-six percent of the average weekly wage 4 until the first Monday of October[ , two thousand twenty when the maximum 5 benefit amount shall be thirty-eight percent of the average weekly wage, 6 until the first Monday of October two thousand twenty-one when the maxi- 7 mum benefit amount shall be forty percent of the average weekly wage, 8 until the first Monday of October, two thousand twenty-two when the 9 maximum benefit amount shall be forty-two percent of the average weekly 10 wage, until the first Monday of October, two thousand twenty-three when 11 the maximum benefit amount shall be forty-four percent of the average 12 weekly wage, until the first Monday of October, two thousand twenty-four 13 when the maximum benefit amount shall be forty-six percent of the aver- 14 age weekly wage, until the first Monday of October ], two thousand twen- 15 ty-five when the maximum benefit amount shall be [ forty-eight percent of 16 the average weekly wage ] eight hundred sixty-nine dollars , until the 17 first Monday of October, two thousand twenty-six and each year thereaft- 18 er on the first Monday of October when the maximum benefit amount shall 19 be fifty percent of the average weekly wage provided, however, that in 20 no event shall the maximum benefit amount be reduced from the previous 21 year. 22 (b) Notwithstanding the foregoing , except for the increase to the 23 maximum benefit amount that is scheduled to occur on the first Monday of 24 October in the year two thousand twenty-five , the maximum benefit amount 25 shall not be increased in accordance with the schedule set forth in 26 paragraph (a) of this subdivision in any year in which the balance of 27 the fund is determined by the commissioner to not have reached or 28 exceeded thirty percent of the average high cost multiple, as defined in 29 20 CFR Part 606 as the standard for receipt of interest-free federal 30 loans, on at least one day between April first and June thirtieth of the 31 same calendar year as the increase shall take effect. If, following such 32 suspension of an increase in the maximum benefit amount, the commission- 33 er shall determine, on at least one day between April first and June 34 thirtieth that the balance of the fund is greater than such thirty 35 percent average high cost multiple, then the maximum benefit amount 36 shall increase to the percentage for the year previously scheduled to be 37 established pursuant to paragraph (a) of this subdivision had the 38 increase not been suspended and increased annually thereafter in accord- 39 ance with the schedule set forth in paragraph (a) of this subdivision. 40 In no case shall such suspension result in a reduction of the maximum 41 benefit amount to less than the amount provided in the most recent year. 42 (c) Benefit for partial unemployment. [ Except as provided in paragraph 43 (d) of this subdivision, any ] Any claimant who is partially unemployed 44 with respect to any effective week shall be paid, with respect to such 45 effective week, a benefit equal to [ his ] their weekly benefit rate less 46 the total of the remuneration, if any, paid or payable to [ him ] them 47 with respect to such week for services performed which is in excess of 48 [ his ] their partial benefit credit. 49 § 4. This act shall take effect upon the transfer of sufficient funds, 50 as determined by the commissioner of labor, to the unemployment insur- 51 ance trust fund to permit changes to provisions of the labor law made by 52 this act; provided the commissioner of labor shall notify the legisla- 53 tive bill drafting commission of such transfer of such sufficient funds 54 in order that the commission may maintain an accurate and timely effec- 55 tive database of the official text of the laws of the state of New York S. 3006--C 125 A. 3006--C

1 in furtherance of effectuating the provisions of section 44 of the 2 legislative law and section 70-b of the public officers law.

3 PART LL

4 Section 1. Paragraph (c) of subdivision 1 of section 245.10 of the 5 criminal procedure law, as added by section 2 of part LLL of chapter 59 6 of the laws of 2019, is amended to read as follows: 7 (c) The prosecution shall disclose statements of the defendant as 8 described in paragraph (a) of subdivision one of section 245.20 of this 9 article to any defendant who has been arraigned in a local criminal 10 court upon a currently undisposed of felony complaint charging an 11 offense which is a subject of a prospective or pending grand jury 12 proceeding, no later than forty-eight hours before the time scheduled 13 for the defendant to testify at a grand jury proceeding pursuant to 14 subdivision five of section 190.50 of this part. Provided, however, that 15 if no grand jury is open and available to hear cases in the time frame 16 necessary to allow the prosecution to provide a forty-eight hour notice, 17 such statement shall be provided no later than twenty-four hours prior 18 to the scheduled time for the defendant to testify before the grand jury 19 pursuant to subdivision five of section 190.50 of this part. 20 § 2. The opening paragraph, paragraphs (a), (b), (e), (h), (i), (k), 21 (l), (m), (n) and subparagraph (i) of paragraph (u) of subdivision 1, 22 and subdivisions 2 and 6 of section 245.20 of the criminal procedure 23 law, as added by section 2 of part LLL of chapter 59 of the laws of 24 2019, are amended, and subdivision 1 is amended by adding a new para- 25 graph (v) to read as follows: 26 The prosecution shall disclose to the defendant, and permit the 27 defendant to discover, inspect, copy, photograph and test[ , all items ] 28 the following material and information [ that relate to the subject 29 matter of the case and are ] in the possession, custody or control of the 30 prosecution or persons under the prosecution's direction or control[ , 31 including but not limited to ]: 32 (a) All written or recorded statements, and the substance of all oral 33 statements, made by the defendant or a co-defendant to a public servant 34 engaged in law enforcement activity or to a person then acting under 35 [ his or her ] their direction or in cooperation with [ him or her ] them 36 that relate to the subject matter of the charges against the defendant 37 or co-defendant in the instant case, or a defense thereto . 38 (b) All transcripts of the testimony of a person who has testified 39 before a grand jury that relate to the subject matter of the charges 40 against the defendant in the instant case , including but not limited to 41 the defendant or a co-defendant. If in the exercise of reasonable dili- 42 gence, and due to the limited availability of transcription resources, a 43 transcript is unavailable for disclosure within the time period speci- 44 fied in subdivision one of section 245.10 of this article, such time 45 period may be stayed by up to an additional thirty calendar days without 46 need for a motion pursuant to subdivision two of section 245.70 of this 47 article; except that such disclosure shall be made as soon as practica- 48 ble and not later than thirty calendar days before the first scheduled 49 trial date, unless an order is obtained pursuant to section 245.70 of 50 this article. When the court is required to review grand jury tran- 51 scripts, the prosecution shall disclose such transcripts to the court 52 expeditiously upon receipt by the prosecutor, notwithstanding the other- 53 wise-applicable time periods for disclosure in this article. S. 3006--C 126 A. 3006--C

1 (e) All statements related to the subject matter of the case , written 2 or recorded or summarized in any writing or recording, made by persons 3 who have evidence or information relevant to any offense charged or to 4 any potential defense thereto, including all police reports, notes of 5 police and other investigators, [ and ] law enforcement agency reports[ . 6 This provision also includes ] , and statements, written or recorded or 7 summarized in any writing or recording, by persons to be called as 8 witnesses at pre-trial hearings. 9 (h) All photographs and drawings that relate to the subject matter of 10 the charges against the defendant in the instant case or a defense ther- 11 eto made or completed by a public servant engaged in law enforcement 12 activity, or which were made by a person whom the prosecutor intends to 13 call as a witness at trial or a pre-trial hearing[ , or which relate to 14 the subject matter of the case ]. 15 (i) All photographs, photocopies and reproductions made by or at the 16 direction of law enforcement personnel of any property that relate to 17 the subject matter of the charges against the defendant in the instant 18 case or a defense thereto prior to its release pursuant to section 19 450.10 of the penal law. 20 (k) All evidence and information that relate to the subject matter of 21 the case , including that which is known to police or other law enforce- 22 ment agencies acting on the government's behalf in the case, that tends 23 to: (i) negate the defendant's guilt as to a charged offense; (ii) 24 reduce the degree of or mitigate the defendant's culpability as to a 25 charged offense; (iii) support a potential defense to a charged offense; 26 (iv) impeach the credibility of a testifying prosecution witness; (v) 27 undermine evidence of the defendant's identity as a perpetrator of a 28 charged offense; (vi) provide a basis for a motion to suppress evidence; 29 or (vii) mitigate punishment. Information under this subdivision shall 30 be disclosed whether or not such information is recorded in tangible 31 form and irrespective of whether the prosecutor credits the information. 32 The prosecutor shall disclose the information expeditiously upon its 33 receipt and shall not delay disclosure if it is obtained earlier than 34 the time period for disclosure in subdivision one of section 245.10 of 35 this article. 36 (l) A summary of all promises, rewards and inducements made in 37 connection with the instant case to, or in favor of, persons who may be 38 called as witnesses, as well as requests for consideration by persons 39 who may be called as witnesses and copies of all documents relevant to a 40 promise, reward or inducement. 41 (m) A list of all tangible objects obtained from, or allegedly 42 possessed by, the defendant or a co-defendant in connection with the 43 criminal action or proceeding . The list shall include a designation by 44 the prosecutor as to which objects were physically or constructively 45 possessed by the defendant and were recovered during a search or seizure 46 by a public servant or an agent thereof, and which tangible objects were 47 recovered by a public servant or an agent thereof after allegedly being 48 abandoned by the defendant. If the prosecution intends to prove the 49 defendant's possession of any tangible objects by means of a statutory 50 presumption of possession, it shall designate such intention as to each 51 such object. If reasonably practicable, the prosecution shall also 52 designate the location from which each tangible object was recovered. 53 There is also a right to inspect, copy, photograph and test the listed 54 tangible objects. 55 (n) Whether a search warrant has been executed in connection with the 56 criminal action or proceeding and all documents relating thereto, S. 3006--C 127 A. 3006--C

1 including but not limited to the warrant, the warrant application, 2 supporting affidavits, a police inventory of all property seized under 3 the warrant, and a transcript of all testimony or other oral communi- 4 cations offered in support of the warrant application. 5 (i) A copy of all electronically created or stored information seized 6 or obtained by or on behalf of law enforcement from: (A) the defendant 7 as described in subparagraph (ii) of this paragraph; or (B) a source 8 other than the defendant which relates to the subject matter of the 9 charges against the defendant in the instant case or a defense thereto . 10 (v) Any other material and information relevant to the subject matter 11 of the charges against the defendant in the instant case or a defense 12 thereto that are not designated in paragraphs (a) through (u) of this 13 subdivision. 14 2. Duties of the prosecution. The prosecutor shall make a diligent, 15 good faith effort to ascertain the existence of material or information 16 discoverable under subdivision one of this section and to cause such 17 material or information to be made available for discovery where it 18 exists but is not within the prosecutor's possession, custody or 19 control[ ; provided that the prosecutor shall not be required to obtain 20 by subpoena duces tecum material or information which the defendant may 21 thereby obtain ]. The prosecutor shall not be required to obtain material 22 or information if it may be obtained with use of a subpoena duces tecum 23 where the defense is able to obtain the same material with the use of a 24 subpoena duces tecum. For purposes of subdivision one of this section, 25 all items and information related to the prosecution of a charge in the 26 possession of any New York state or local police or law enforcement 27 agency shall be deemed to be in the possession of the prosecution. The 28 prosecution shall also identify any laboratory having contact with 29 evidence related to the prosecution of a charge. This subdivision shall 30 not require the prosecutor to ascertain the existence of witnesses not 31 known to the police or another law enforcement agency, or the written or 32 recorded statements thereof, under paragraph (c) or (e) of subdivision 33 one of this section. 34 6. Redactions permitted. (a) Either party may redact the following 35 without the need to move for a protective order pursuant to section 36 245.70 of this article: social security numbers [ and ] ; tax numbers [ from 37 disclosures under this article ] ; the physical addresses or other forms 38 of contact information of witnesses, provided that for any witness 39 disclosed under paragraph (c) of subdivision one of this section, the 40 disclosing party provides at least one form of adequate contact informa- 41 tion; and material or information not otherwise required to be disclosed 42 under subdivision one of this section, so long as the party making 43 redactions based on the material not being required to be disclosed 44 under subdivision one of this section provides the underlying reason for 45 the redactions. 46 (b) If the contact information disclosed pursuant to paragraph (a) of 47 this subdivision is incorrect or inoperative, the party that made the 48 disclosure shall, upon request, furnish an alternative form of adequate 49 contact information for such witness . 50 § 3. Subdivision 1 of section 245.30 of the criminal procedure law, as 51 added by section 2 of part LLL of chapter 59 of the laws of 2019, is 52 amended to read as follows: 53 1. Order to preserve evidence. At any time, a party may move for a 54 court order to any individual, agency or other entity in possession, 55 custody or control of items which [ relate to the subject matter of the 56 case or are otherwise relevant ] are required to be disclosed under S. 3006--C 128 A. 3006--C

1 subdivision one of section 245.20 of this article , requiring that such 2 items be preserved for a specified period of time. The court shall hear 3 and rule upon such motions expeditiously. The court may modify or vacate 4 such an order upon a showing that preservation of particular evidence 5 will create significant hardship to such individual, agency or entity, 6 on condition that the probative value of that evidence is preserved by a 7 specified alternative means. 8 § 4. Subdivisions 1, 3 and 4 of section 245.50 of the criminal proce- 9 dure law, subdivisions 1 and 3 as amended by section 7 of part HHH of 10 chapter 56 of the laws of 2020 and subdivision 4 as amended by section 1 11 of subpart D of part UU of chapter 56 of the laws of 2022, are amended 12 and two new subdivisions 5 and 6 are added to read as follows: 13 1. By the prosecution. When the prosecution has [ provided ] , pursuant 14 to this section, exercised due diligence and acted in good faith in 15 making reasonable inquiries and efforts to obtain and provide the 16 discovery required by subdivision one of section 245.20 of this article, 17 except for discovery that is lost or destroyed as provided by paragraph 18 (b) of subdivision one of section 245.80 of this article and except for 19 any [ items ] material or information that [ are ] is the subject of an 20 order pursuant to section 245.70 of this article, it shall serve upon 21 the defendant and file with the court a certificate of compliance. The 22 certificate of compliance shall state that, after exercising due dili- 23 gence and making reasonable inquiries and efforts to ascertain the 24 existence of , obtain, and disclose material and information subject to 25 discovery, the [ prosecutor ] prosecution has disclosed and made available 26 all known material and information it has obtained subject to discovery. 27 It shall also identify the items provided. [ If additional discovery is 28 subsequently provided ] The prosecution shall also identify the items 29 that the prosecution is required to disclose and of which the prose- 30 cution is aware, but has been unable to obtain despite the exercise of 31 due diligence as evaluated under this section. If the prosecution 32 provides additional discovery prior to trial pursuant to section 245.60 33 of this article, a supplemental certificate shall be served upon the 34 defendant and filed with the court identifying the additional material 35 and information provided. No adverse consequence to the prosecution or 36 the prosecutor shall result from the filing of a certificate of compli- 37 ance in good faith and reasonable under the circumstances; but the court 38 may grant a remedy or sanction for a discovery violation as provided in 39 section 245.80 of this article. The filing of a supplemental certificate 40 of compliance shall not impact the validity of the original certificate 41 of compliance if filed in good faith and after exercising due diligence 42 as assessed under this section. 43 3. Trial readiness. Notwithstanding the provisions of any other law, 44 absent an individualized finding of special circumstances in the instant 45 case by the court before which the charge is pending, the prosecution 46 shall not be deemed ready for trial for purposes of section 30.30 of 47 this chapter until it has filed a [ proper ] valid certificate pursuant to 48 subdivision one of this section. A court may deem the prosecution ready 49 for trial pursuant to section 30.30 of this chapter where information 50 that might be considered discoverable under this article cannot be 51 disclosed because it has been lost, destroyed, or otherwise unavailable 52 as provided by paragraph (b) of subdivision one of section 245.80 of 53 this article, despite diligent and good faith efforts, reasonable under 54 the circumstances. Provided, however, that the court may grant a remedy 55 or sanction for a discovery violation as provided by section 245.80 of 56 this article. S. 3006--C 129 A. 3006--C

1 4. Challenges. (a) Challenges to, or questions related to a certif- 2 icate of compliance shall be addressed by motion. 3 (b) To the extent that the party is aware of a potential defect or 4 deficiency related to a certificate of compliance or supplemental 5 certificate of compliance, the party entitled to disclosure shall notify 6 or alert the opposing party [ as soon as practicable ] in accordance with 7 the procedure set forth in this subdivision . 8 (c) Challenges [ related to the sufficiency ] to the validity of a 9 certificate of compliance or supplemental certificates of compliance 10 served on the defense and filed with the court pursuant to subdivision 11 one of this section shall be addressed by motion [ as soon as practica- 12 ble, provided that nothing in this section shall be construed to waive a 13 party's right to make further challenges, including but not limited to a 14 motion pursuant to section 30.30 of this chapter ] within thirty-five 15 days of the service of the certificate provided that the prosecution has 16 filed an indictment or information prior to filing the certificate of 17 compliance. Nothing in this section shall be construed to waive a 18 party's right to file a motion pursuant to section 30.30 of this chapter 19 on grounds unrelated to the validity of a certificate of compliance. 20 Provided, however, that any challenges to a certificate of compliance or 21 supplemental certificate of compliance shall be accompanied by an affir- 22 mation by the moving party that, after the filing of the opposing 23 party's certificate of compliance, such moving party timely conferred in 24 good faith or timely made good faith efforts to confer with the opposing 25 party regarding the specific and particularized matters forming the 26 basis for such challenge, that efforts to obtain the missing discovery 27 from the opposing party or otherwise resolve the issues raised were 28 unsuccessful, and that no accommodation could be reached. For the 29 purposes of this subdivision, the parties may confer informally, includ- 30 ing but not limited to communication by email, telephone, or any other 31 reasonable means. 32 (i) Upon request, the court may extend the time period to challenge a 33 certificate of compliance or supplemental certificate of compliance 34 beyond the thirty-five days for good cause shown. A request for exten- 35 sion shall be made before the expiration of the thirty-five days. Unless 36 the court finds that the prosecutor unreasonably delayed in responding 37 to the defense's good faith efforts to confer or that the prosecutor did 38 not file the certificate of compliance in good faith, any such extension 39 shall be excluded from a speedy trial calculation pursuant to paragraph 40 (b) of subdivision four of section 30.30 of this chapter. 41 (ii) Notwithstanding the provisions of this subdivision, a party may 42 challenge the validity of the certificate of compliance after the expi- 43 ration of the thirty-five day period where the grounds for such chal- 44 lenge are based upon a material change in circumstances, including but 45 not limited to the belated disclosure of discoverable material pursuant 46 to section 245.20 of this article, or, where the party entitled to 47 disclosure could not, with due diligence, have known of the specific and 48 particularized matters forming the basis of the challenge prior to the 49 expiration of such period. 50 (iii) Nothing in this subdivision shall limit the court's authority to 51 facilitate compliance pursuant to section 245.35 of this article. Any 52 extension of time granted pursuant to section 245.35 shall be excluded 53 from a speedy trial calculation pursuant to paragraph (b) of subdivision 54 four of section 30.30 of this chapter. 55 5. Assessing due diligence. In assessing a party's due diligence, the 56 court shall look at the totality of the party's efforts to comply with S. 3006--C 130 A. 3006--C

1 the provisions of this article, rather than assess the party's efforts 2 item by item. 3 (a) Relevant factors for assessing the prosecutor's due diligence 4 include, but are not limited to: the efforts made by the prosecutor to 5 comply with the requirements of this article; the volume of discovery 6 provided and the volume of discovery outstanding; the complexity of the 7 case; whether the prosecutor knew that the belatedly disclosed or 8 allegedly missing material existed; the explanation for any alleged 9 discovery lapse; the prosecutor's response when apprised of any alleged- 10 ly missing discovery; whether the belated discovery was substantively 11 duplicative, insignificant, or easily remedied; whether the omission was 12 corrected; whether the prosecution self-reported the error and took 13 prompt remedial action without court intervention; and whether the pros- 14 ecution's delayed disclosure of discovery was prejudicial to the defense 15 or otherwise impeded the defense's ability to effectively investigate 16 the case or prepare for trial. 17 (b) The court's determination shall be based on consideration of all 18 factors listed in paragraph (a) of this subdivision and no one factor 19 shall be determinative. The court shall explain the basis for its 20 determination on the record or in writing. 21 (c) A finding of a valid certificate under this section shall consti- 22 tute a valid certificate pursuant to subdivision five of section 30.30 23 of this chapter. Upon a finding of a valid certificate, the court shall, 24 if warranted, fashion an appropriate and proportional remedy for any 25 discovery violation resulting from the belated disclosure pursuant to 26 subdivision two of section 245.80 of this article. 27 6. Determinations by the court. Notwithstanding any other section of 28 law to the contrary, a court shall not invalidate a certificate of 29 compliance where the party has exercised due diligence and acted in good 30 faith in making reasonable inquiries and efforts to obtain and provide 31 the material required to be disclosed pursuant to section 245.20 of this 32 article. 33 § 5. The criminal procedure law is amended by adding a new section 34 245.90 to read as follows: 35 § 245.90 Federal and state constitutional obligations. 36 Nothing in this article shall be construed to limit the people's obli- 37 gations to comply with federal and state constitutional law. 38 § 6. Subdivision 5 of section 30.30 of the criminal procedure law, as 39 amended by section 1 of part KKK of chapter 59 of the laws of 2019, is 40 amended to read as follows: 41 5. (a) Whenever pursuant to this section a prosecutor states or other- 42 wise provides notice that the people are ready for trial, the court 43 shall make inquiry on the record as to their actual readiness. If, after 44 conducting its inquiry, the court determines that the people are not 45 ready to proceed to trial, the prosecutor's statement or notice of read- 46 iness shall not be valid for purposes of this section. [ Any statement of 47 trial readiness must be accompanied or preceded by a certification of 48 good faith compliance with the disclosure requirements of section 245.20 49 of this chapter and the defense shall be afforded an opportunity to be 50 heard on the record as to whether the disclosure requirements have been 51 met. ] The court may deem the people not ready for trial based on the 52 people's failure to comply with the provisions of article two hundred 53 forty-five of this chapter only if it finds that the people's certif- 54 icate of compliance that accompanied or preceded the people's statement 55 of readiness at issue was invalid under section 245.50 of this chapter. S. 3006--C 131 A. 3006--C

1 (b) Pursuant to section 245.50 of this chapter, the certificate of 2 compliance is deemed invalid when the court determined that the people 3 did not exercise due diligence and, in making such determination, the 4 court looked at the totality of the prosecution's efforts to comply with 5 the provisions of article two hundred forty-five of this chapter, rather 6 than assess the prosecution's efforts item by item, and considered the 7 factors relevant to assessing due diligence, which include, but are not 8 limited to: the efforts made by the prosecutor to comply with the 9 requirements of article two hundred forty-five of this chapter; the 10 volume of discovery provided and the volume of discovery outstanding; 11 the complexity of the case; whether the prosecutor knew that the belat- 12 edly disclosed or allegedly missing material existed; the explanation 13 for any alleged discovery lapse; the prosecutor's response when apprised 14 of any allegedly missing discovery; whether the belated discovery was 15 substantively duplicative, insignificant, or easily remedied; whether 16 the omission was corrected; whether the prosecution self-reported the 17 error and took prompt remedial action without court intervention; and 18 whether the prosecution's delayed disclosure of discovery was prejudi- 19 cial to the defense or otherwise impeded the defense's ability to effec- 20 tively investigate the case or prepare for trial. 21 § 7. Section 245.70 of the criminal procedure law is amended by adding 22 a new subdivision 8 to read as follows: 23 8. A motion filed in good faith pursuant to subdivision one or two of 24 this section shall be deemed a pre-trial motion for the purposes of 25 paragraph (a) of subdivision four of section 30.30 of this chapter. 26 § 8. This act shall take effect on the ninetieth day after it shall 27 have become a law and shall apply to all criminal actions pending on 28 such date and all actions commenced on or after such date. Any time- 29 frames provided in this act regarding the time limitation to challenge a 30 certificate of compliance shall run from the effective date of this act.

31 PART MM

32 Section 1. The state comptroller is hereby authorized and directed to 33 loan money in accordance with the provisions set forth in subdivision 5 34 of section 4 of the state finance law to the following funds and/or 35 accounts: 36 1. DOL-Child performer protection account (20401). 37 2. Local government records management account (20501). 38 3. Child health plus program account (20810). 39 4. EPIC premium account (20818). 40 5. Education - New (20901). 41 6. VLT - Sound basic education fund (20904). 42 7. Sewage treatment program management and administration fund 43 (21000). 44 8. Hazardous bulk storage account (21061). 45 9. Utility environmental regulatory account (21064). 46 10. Federal grants indirect cost recovery account (21065). 47 11. Low level radioactive waste account (21066). 48 12. Recreation account (21067). 49 13. Public safety recovery account (21077). 50 14. Environmental regulatory account (21081). 51 15. Natural resource account (21082). 52 16. Mined land reclamation program account (21084). 53 17. Great lakes restoration initiative account (21087). 54 18. Environmental protection and oil spill compensation fund (21200). S. 3006--C 132 A. 3006--C

1 19. Public transportation systems account (21401). 2 20. Metropolitan mass transportation (21402). 3 21. Operating permit program account (21451). 4 22. Mobile source account (21452). 5 23. Statewide planning and research cooperative system account 6 (21902). 7 24. New York state thruway authority account (21905). 8 25. Financial control board account (21911). 9 26. Regulation of racing account (21912). 10 27. State university dormitory income reimbursable account (21937). 11 28. Criminal justice improvement account (21945). 12 29. Environmental laboratory reference fee account (21959). 13 30. Training, management and evaluation account (21961). 14 31. Clinical laboratory reference system assessment account (21962). 15 32. Indirect cost recovery account (21978). 16 33. Multi-agency training account (21989). 17 34. Bell jar collection account (22003). 18 35. Industry and utility service account (22004). 19 36. Real property disposition account (22006). 20 37. Parking account (22007). 21 38. Courts special grants (22008). 22 39. Asbestos safety training program account (22009). 23 40. Batavia school for the blind account (22032). 24 41. Investment services account (22034). 25 42. Surplus property account (22036). 26 43. Financial oversight account (22039). 27 44. Regulation of Indian gaming account (22046). 28 45. Rome school for the deaf account (22053). 29 46. Seized assets account (22054). 30 47. Administrative adjudication account (22055). 31 48. New York City assessment account (22062). 32 49. Cultural education account (22063). 33 50. Local services account (22078). 34 51. DHCR mortgage servicing account (22085). 35 52. Housing indirect cost recovery account (22090). 36 53. Voting Machine Examinations account (22099). 37 54. DHCR-HCA application fee account (22100). 38 55. Low income housing monitoring account (22130). 39 56. Restitution account (22134). 40 57. Corporation administration account (22135). 41 58. New York State Home for Veterans in the Lower-Hudson Valley 42 account (22144). 43 59. Deferred compensation administration account (22151). 44 60. Rent revenue other New York City account (22156). 45 61. Rent revenue account (22158). 46 62. Transportation aviation account (22165). 47 63. Tax revenue arrearage account (22168). 48 64. New York State Campaign Finance Fund account (22211). 49 65. New York state medical indemnity fund account (22240). 50 66. Behavioral health parity compliance fund (22246). 51 67. Pharmacy benefit manager regulatory fund (22255). 52 68. Virtual currency assessments account (22262). 53 69. Employers assessment account (22269). 54 70. State university general income offset account (22654). 55 71. Lake George park trust fund account (22751). 56 72. Highway safety program account (23001). S. 3006--C 133 A. 3006--C

1 73. DOH drinking water program account (23102). 2 74. NYCCC operating offset account (23151). 3 75. Commercial gaming revenue account (23701). 4 76. Commercial gaming regulation account (23702). 5 77. Highway use tax administration account (23801). 6 78. New York state secure choice administrative account (23806). 7 79. New York state cannabis revenue fund (24800). 8 80. Cannabis education account (24801). 9 81. Fantasy sports administration account (24951). 10 82. Mobile sports wagering fund (24955). 11 83. Highway and bridge capital account (30051). 12 84. State university residence hall rehabilitation fund (30100). 13 85. State parks infrastructure account (30351). 14 86. Clean water/clean air implementation fund (30500). 15 87. Hazardous waste remedial cleanup account (31506). 16 88. Youth facilities improvement account (31701). 17 89. Housing assistance fund (31800). 18 90. Housing program fund (31850). 19 91. Highway facility purpose account (31951). 20 92. New York racing account (32213). 21 93. Capital miscellaneous gifts account (32214). 22 94. Information technology capital financing account (32215). 23 95. New York environmental protection and spill remediation account 24 (32219). 25 96. Department of financial services IT modernization capital account 26 (32230). 27 97. Mental hygiene facilities capital improvement fund (32300). 28 98. Correctional facilities capital improvement fund (32350). 29 99. OGS convention center account (50318). 30 100. Empire Plaza Gift Shop (50327). 31 101. Unemployment Insurance Benefit Fund, Interest Assessment Account 32 (50651). 33 102. Centralized services fund (55000). 34 103. Archives records management account (55052). 35 104. Federal single audit account (55053). 36 105. Civil service administration account (55055). 37 106. Civil service EHS occupational health program account (55056). 38 107. Banking services account (55057). 39 108. Cultural resources survey account (55058). 40 109. Neighborhood work project account (55059). 41 110. Automation & printing chargeback account (55060). 42 111. OFT NYT account (55061). 43 112. Data center account (55062). 44 113. Intrusion detection account (55066). 45 114. Domestic violence grant account (55067). 46 115. Centralized technology services account (55069). 47 116. Labor contact center account (55071). 48 117. Human services contact center account (55072). 49 118. Tax contact center account (55073). 50 119. Department of law civil recoveries account (55074). 51 120. Executive direction internal audit account (55251). 52 121. CIO Information technology centralized services account (55252). 53 122. Health insurance internal service account (55300). 54 123. Civil service employee benefits division administrative account 55 (55301). 56 124. Correctional industries revolving fund (55350). S. 3006--C 134 A. 3006--C

1 125. Employees health insurance account (60201). 2 126. Medicaid management information system escrow fund (60900). 3 127. Animal shelter regulation account. 4 128. Climate initiative account. 5 129. Fire Island project account. 6 § 2. The state comptroller is hereby authorized and directed to loan 7 money in accordance with the provisions set forth in subdivision 5 of 8 section 4 of the state finance law to any account within the following 9 federal funds, provided the comptroller has made a determination that 10 sufficient federal grant award authority is available to reimburse such 11 loans: 12 1. Federal USDA-food and nutrition services fund (25000). 13 2. Federal health and human services fund (25100). 14 3. Federal education fund (25200). 15 4. Federal block grant fund (25250). 16 5. Federal miscellaneous operating grants fund (25300). 17 6. Federal unemployment insurance administration fund (25900). 18 7. Federal unemployment insurance occupational training fund (25950). 19 8. Federal emergency employment act fund (26000). 20 9. Federal capital projects fund (31350). 21 § 3. Notwithstanding any law to the contrary, and in accordance with 22 section 4 of the state finance law, the comptroller is hereby authorized 23 and directed to transfer, upon request of the director of the budget, on 24 or before March 31, 2026, up to the unencumbered balance or the follow- 25 ing amounts: 26 Economic Development and Public Authorities: 27 1. An amount up to the unencumbered balance from the miscellaneous 28 special revenue fund, underground facilities safety training account 29 (22172), to the general fund. 30 2. An amount up to the unencumbered balance from the miscellaneous 31 special revenue fund, business and licensing services account (21977), 32 to the general fund. 33 3. $19,810,000 from the miscellaneous special revenue fund, code 34 enforcement account (21904), to the general fund. 35 4. $3,000,000 from the general fund to the miscellaneous special 36 revenue fund, tax revenue arrearage account (22168). 37 Education: 38 1. $2,591,119,000 from the general fund to the state lottery fund, 39 education account (20901), as reimbursement for disbursements made from 40 such fund for supplemental aid to education pursuant to section 92-c of 41 the state finance law that are in excess of the amounts deposited in 42 such fund for such purposes pursuant to section 1612 of the tax law. 43 2. $1,131,000,000 from the general fund to the state lottery fund, VLT 44 education account (20904), as reimbursement for disbursements made from 45 such fund for supplemental aid to education pursuant to section 92-c of 46 the state finance law that are in excess of the amounts deposited in 47 such fund for such purposes pursuant to section 1612 of the tax law. 48 3. $134,682,000 from the general fund to the New York state commercial 49 gaming fund, commercial gaming revenue account (23701), as reimbursement 50 for disbursements made from such fund for supplemental aid to education 51 pursuant to section 97-nnnn of the state finance law that are in excess 52 of the amounts deposited in such fund for purposes pursuant to section 53 1352 of the racing, pari-mutuel wagering and breeding law. 54 4. $1,457,339,000 from the general fund to the mobile sports wagering 55 fund, education account (24955), as reimbursement for disbursements made 56 from such fund for supplemental aid to education pursuant to section S. 3006--C 135 A. 3006--C

1 92-c of the state finance law that are in excess of the amounts deposit- 2 ed in such fund for such purposes pursuant to section 1367 of the 3 racing, pari-mutuel wagering and breeding law. 4 5. $5,000,000 from the interactive fantasy sports fund, fantasy sports 5 education account (24950), to the state lottery fund, education account 6 (20901), as reimbursement for disbursements made from such fund for 7 supplemental aid to education pursuant to section 92-c of the state 8 finance law. 9 6. $4,856,000 from the cannabis revenue fund cannabis education 10 account (24801), to the state lottery fund, education account (20901), 11 as reimbursement for disbursements made from such fund for supplemental 12 aid to education pursuant to section 99-ii of the state finance law. 13 7. An amount up to the unencumbered balance in the fund on March 31, 14 2025 from the charitable gifts trust fund, elementary and secondary 15 education account (24901), to the general fund, for payment of general 16 support for public schools pursuant to section 3609-a of the education 17 law. 18 8. Moneys from the state lottery fund (20900) up to an amount deposit- 19 ed in such fund pursuant to section 1612 of the tax law in excess of the 20 current year appropriation for supplemental aid to education pursuant to 21 section 92-c of the state finance law. 22 9. $300,000 from the New York state local government records manage- 23 ment improvement fund, local government records management account 24 (20501), to the New York state archives partnership trust fund, archives 25 partnership trust maintenance account (20351). 26 10. $900,000 from the general fund to the miscellaneous special reven- 27 ue fund, Batavia school for the blind account (22032). 28 11. $900,000 from the general fund to the miscellaneous special reven- 29 ue fund, Rome school for the deaf account (22053). 30 12. $343,400,000 from the state university dormitory income fund 31 (40350) to the miscellaneous special revenue fund, state university 32 dormitory income reimbursable account (21937). 33 13. $24,000,000 from any of the state education department's special 34 revenue and internal service funds to the miscellaneous special revenue 35 fund, indirect cost recovery account (21978). 36 14. $4,200,000 from any of the state education department's special 37 revenue or internal service funds to the capital projects fund (30000). 38 15. $30,013,000 from the general fund to the miscellaneous special 39 revenue fund, HESC-insurance premium payments account (21960). 40 16. $312,000,000 from the state university income fund, state univer- 41 sity hospitals income reimbursable account (22656), and the state 42 university income fund, state university-wide hospital reimbursable 43 account (22658) to the General Fund for the payment of SUNY Hospitals 44 Health Insurance premiums on or before March 31, 2026. 45 17. $25,000,000 from the general fund to the miscellaneous capital 46 projects fund, state university of New York green energy loan fund. 47 Environmental Affairs: 48 1. $16,000,000 from any of the department of environmental conserva- 49 tion's special revenue federal funds, and/or federal capital funds, to 50 the environmental conservation special revenue fund, federal indirect 51 recovery account (21065). 52 2. $5,000,000 from any of the department of environmental conserva- 53 tion's special revenue federal funds, and/or federal capital funds, to 54 the conservation fund (21150) or Marine Resources Account (21151) as 55 necessary to avoid diversion of conservation funds. S. 3006--C 136 A. 3006--C

1 3. $3,000,000 from any of the office of parks, recreation and historic 2 preservation capital projects federal funds and special revenue federal 3 funds to the miscellaneous special revenue fund, federal grant indirect 4 cost recovery account (22188). 5 4. $125,000,000 from the general fund to the environmental protection 6 fund, environmental protection fund transfer account (30451). 7 5. $10,000,000 from the general fund to the hazardous waste remedial 8 fund, hazardous waste cleanup account (31506). 9 6. An amount up to or equal to the cash balance within the special 10 revenue-other waste management & cleanup account (21053) to the capital 11 projects fund (30000) for services and capital expenses related to the 12 management and cleanup program as put forth in section 27-1915 of the 13 environmental conservation law. 14 7. $1,800,000 from the miscellaneous special revenue fund, public 15 service account (22011) to the miscellaneous special revenue fund, util- 16 ity environmental regulatory account (21064). 17 8. $7,000,000 from the general fund to the enterprise fund, state fair 18 account (50051). 19 9. $3,000,000 from the waste management & cleanup account (21053) to 20 the general fund. 21 10. $3,000,000 from the waste management & cleanup account (21053) to 22 the environmental protection fund transfer account (30451). 23 11. $14,000,000 from the general fund to the miscellaneous special 24 revenue fund, patron services account (22163). 25 12. $15,000,000 from the enterprise fund, golf account (50332) to the 26 state park infrastructure fund, state park infrastructure account 27 (30351). 28 13. $10,000,000 from the general fund to the environmental protection 29 and oil spill compensation fund (21203). 30 14. $5,000,000 from the general fund to the enterprise fund, golf 31 account (50332). 32 Family Assistance: 33 1. $7,000,000 from any of the office of children and family services, 34 office of temporary and disability assistance, or department of health 35 special revenue federal funds and the general fund, in accordance with 36 agreements with social services districts, to the miscellaneous special 37 revenue fund, office of human resources development state match account 38 (21967). 39 2. $4,000,000 from any of the office of children and family services 40 or office of temporary and disability assistance special revenue federal 41 funds to the miscellaneous special revenue fund, family preservation and 42 support services and family violence services account (22082). 43 3. $18,670,000 from any of the office of children and family services, 44 office of temporary and disability assistance, or department of health 45 special revenue federal funds and any other miscellaneous revenues 46 generated from the operation of office of children and family services 47 programs to the general fund. 48 4. $205,000,000 from any of the office of temporary and disability 49 assistance or department of health special revenue funds to the general 50 fund. 51 5. $2,500,000 from any of the office of temporary and disability 52 assistance special revenue funds to the miscellaneous special revenue 53 fund, office of temporary and disability assistance program account 54 (21980). 55 6. $35,000,000 from any of the office of children and family services, 56 office of temporary and disability assistance, department of labor, and S. 3006--C 137 A. 3006--C

1 department of health special revenue federal funds to the office of 2 children and family services miscellaneous special revenue fund, multi- 3 agency training contract account (21989). 4 7. $205,000,000 from the miscellaneous special revenue fund, youth 5 facility per diem account (22186), to the general fund. 6 8. $788,000 from the general fund to the combined gifts, grants, and 7 bequests fund, WB Hoyt Memorial account (20128). 8 9. $5,000,000 from the miscellaneous special revenue fund, state 9 central registry (22028), to the general fund. 10 10. $900,000 from the general fund to the Veterans' Remembrance and 11 Cemetery Maintenance and Operation account (20201). 12 11. $7,000,000 from the general fund to the housing program fund 13 (31850). 14 12. $15,000,000 from any of the office of children and family services 15 special revenue federal funds to the office of court administration 16 special revenue other federal iv-e funds account. 17 13. $10,000,000 from any of the office of children and family services 18 special revenue federal funds to the office of indigent legal services 19 special revenue other federal iv-e funds account. 20 General Government: 21 1. $9,000,000 from the general fund to the health insurance revolving 22 fund (55300). 23 2. $292,400,000 from the health insurance reserve receipts fund 24 (60550) to the general fund. 25 3. $150,000 from the general fund to the not-for-profit revolving loan 26 fund (20650). 27 4. $150,000 from the not-for-profit revolving loan fund (20650) to the 28 general fund. 29 5. $3,000,000 from the miscellaneous special revenue fund, surplus 30 property account (22036), to the general fund. 31 6. $19,000,000 from the miscellaneous special revenue fund, revenue 32 arrearage account (22024), to the general fund. 33 7. $3,828,000 from the miscellaneous special revenue fund, revenue 34 arrearage account (22024), to the miscellaneous special revenue fund, 35 authority budget office account (22138). 36 8. $1,000,000 from the miscellaneous special revenue fund, parking 37 account (22007), to the general fund, for the purpose of reimbursing the 38 costs of debt service related to state parking facilities. 39 9. $11,460,000 from the general fund to the agencies internal service 40 fund, central technology services account (55069), for the purpose of 41 enterprise technology projects. 42 10. $10,000,000 from the general fund to the agencies internal service 43 fund, state data center account (55062). 44 11. $12,000,000 from the miscellaneous special revenue fund, parking 45 account (22007), to the centralized services, building support services 46 account (55018). 47 12. $33,000,000 from the general fund to the internal service fund, 48 business services center account (55022). 49 13. $9,500,000 from the general fund to the internal service fund, 50 building support services account (55018). 51 14. $1,500,000 from the combined expendable trust fund, plaza special 52 events account (20120), to the general fund. 53 15. $50,000,000 from the New York State cannabis revenue fund (24800) 54 to the general fund. S. 3006--C 138 A. 3006--C

1 16. A transfer from the general fund to the miscellaneous special 2 revenue fund, New York State Campaign Finance Fund Account (22211), up 3 to an amount equal to total reimbursements due to qualified candidates. 4 17. $6,000,000 from the miscellaneous special revenue fund, standards 5 and purchasing account (22019), to the general fund. 6 18. $12,400,000 from the banking department special revenue fund 7 (21970) funded by the assessment to defray operating expenses authorized 8 by section 206 of the financial services law to the IT Modernization 9 Capital Fund. 10 19. $12,400,000 from the insurance department special revenue fund 11 (21994) funded by the assessment to defray operating expenses authorized 12 by section 206 of the financial services law to the IT Modernization 13 Capital Fund. 14 20. $1,550,000 from the pharmacy benefits bureau special revenue fund 15 (22255) funded by the assessment to defray operating expenses authorized 16 by section 206 of the financial services law, to the IT Modernization 17 Capital Fund. 18 21. $4,650,000 from the virtual currency special revenue fund (22262) 19 funded by the assessment to defray operating expenses authorized by 20 section 206 of the financial services law, to the IT Modernization Capi- 21 tal Fund. 22 Health: 23 1. A transfer from the general fund to the combined gifts, grants and 24 bequests fund, breast cancer research and education account (20155), up 25 to an amount equal to the monies collected and deposited into that 26 account in the previous fiscal year. 27 2. A transfer from the general fund to the combined gifts, grants and 28 bequests fund, prostate cancer research, detection, and education 29 account (20183), up to an amount equal to the moneys collected and 30 deposited into that account in the previous fiscal year. 31 3. A transfer from the general fund to the combined gifts, grants and 32 bequests fund, Alzheimer's disease research and assistance account 33 (20143), up to an amount equal to the moneys collected and deposited 34 into that account in the previous fiscal year. 35 4. $3,600,000 from the miscellaneous special revenue fund, certificate 36 of need account (21920), to the miscellaneous capital projects fund, 37 healthcare IT capital subfund (32216). 38 5. $4,000,000 from the miscellaneous special revenue fund, vital 39 health records account (22103), to the miscellaneous capital projects 40 fund, healthcare IT capital subfund (32216). 41 6. $6,000,000 from the miscellaneous special revenue fund, profes- 42 sional medical conduct account (22088), to the miscellaneous capital 43 projects fund, healthcare IT capital subfund (32216). 44 7. $127,000,000 from the HCRA resources fund (20800) to the capital 45 projects fund (30000). 46 8. $6,550,000 from the general fund to the medical cannabis trust 47 fund, health operation and oversight account (23755). 48 9. An amount up to the unencumbered balance from the charitable gifts 49 trust fund, health charitable account (24900), to the general fund, for 50 payment of general support for primary, preventive, and inpatient health 51 care, dental and vision care, hunger prevention and nutritional assist- 52 ance, and other services for New York state residents with the overall 53 goal of ensuring that New York state residents have access to quality 54 health care and other related services. S. 3006--C 139 A. 3006--C

1 10. $500,000 from the miscellaneous special revenue fund, New York 2 State cannabis revenue fund (24800), to the miscellaneous special reven- 3 ue fund, environmental laboratory fee account (21959). 4 11. An amount up to the unencumbered balance from the public health 5 emergency charitable gifts trust fund (23816), to the general fund, for 6 payment of goods and services necessary to respond to a public health 7 disaster emergency or to assist or aid in responding to such a disaster. 8 12. $1,000,000,000 from the general fund to the health care transfor- 9 mation fund (24850). 10 13. $2,590,000 from the miscellaneous special revenue fund, patient 11 safety center account (22139), to the general fund. 12 14. $1,000,000 from the miscellaneous special revenue fund, nursing 13 home receivership account (21925), to the general fund. 14 15. $130,000 from the miscellaneous special revenue fund, quality of 15 care account (21915), to the general fund. 16 16. $2,200,000 from the miscellaneous special revenue fund, adult home 17 quality enhancement account (22091), to the general fund. 18 17. $17,283,000 from the general fund, to the miscellaneous special 19 revenue fund, helen hayes hospital account (22140). 20 18. $3,672,000 from the general fund, to the miscellaneous special 21 revenue fund, New York city veterans' home account (22141). 22 19. $2,731,000 from the general fund, to the miscellaneous special 23 revenue fund, New York state home for veterans' and their dependents at 24 oxford account (22142). 25 20. $1,455,000 from the general fund, to the miscellaneous special 26 revenue fund, western New York veterans' home account (22143). 27 21. $4,683,000 from the general fund, to the miscellaneous special 28 revenue fund, New York state for veterans in the lower-hudson valley 29 account (22144). 30 22. $350,000,000 from the general fund, to the miscellaneous special 31 revenue fund, healthcare stability fund account (22267). 32 23. $5,000,000 from the general fund to the occupational health clin- 33 ics account (22177). 34 24. $88,000 from the miscellaneous special revenue fund, veterans home 35 assistance account (20208), to the miscellaneous special revenue fund, 36 New York city veterans' home account (22141). 37 25. $88,000 from the miscellaneous special revenue fund, veterans home 38 assistance account (20208), to the miscellaneous special revenue fund, 39 New York state home for veterans' and their dependents at oxford account 40 (22142). 41 26. $88,000 from the miscellaneous special revenue fund, veterans 42 assistance account (20208), to the miscellaneous special revenue fund, 43 western New York veterans' home account (22143). 44 27. $88,000 from the miscellaneous special revenue fund, veterans 45 assistance account (20208), to the miscellaneous special revenue fund, 46 New York state for veterans in the lower-Hudson valley account (22144). 47 28. $88,000 from the miscellaneous special revenue fund, veterans 48 assistance account (20208), to the state university income fund, Long 49 Island Veterans' Home Account (22652). 50 29. $159,000,000 from the miscellaneous special revenue fund, health- 51 care stability fund account (22267) to the HCRA resources fund, HCRA 52 program account (20807). 53 Labor: 54 1. $600,000 from the miscellaneous special revenue fund, DOL fee and 55 penalty account (21923), to the child performer's protection fund, child 56 performer protection account (20401). S. 3006--C 140 A. 3006--C

1 2. $11,700,000 from the unemployment insurance interest and penalty 2 fund, unemployment insurance special interest and penalty account 3 (23601), to the general fund. 4 3. $50,000,000 from the DOL fee and penalty account (21923), unemploy- 5 ment insurance special interest and penalty account (23601), and public 6 work enforcement account (21998), to the general fund. 7 4. $850,000 from the miscellaneous special revenue fund, DOL elevator 8 safety program fund (22252) to the miscellaneous special revenue fund, 9 DOL fee and penalty account (21923). 10 5. $22,000,000 from the miscellaneous special revenue fund, Interest 11 and Penalty Account (23601), to the Training and Education Program on 12 Occupation Safety and Health Fund, OSHA Training and Education Account 13 (21251). 14 6. $1,000,000 from the miscellaneous special revenue fund, Public Work 15 Enforcement account (21998), to the Training and Education Program on 16 Occupation Safety and Health Fund, OSHA Training and Education Account 17 (21251). 18 7. $250,000,000 from the general fund to the enterprise fund, unem- 19 ployment insurance benefit fund, interest assessment account (50651). 20 8. $4,000,000 from the miscellaneous special revenue fund, Public Work 21 Enforcement account (21998), to the Training and Education Program on 22 Occupational Safety and Health Fund, OSHA Inspection Account (21252). 23 9. $8,000,000,000 from the general fund to the enterprise fund, unem- 24 ployment insurance benefit fund, unemployment insurance benefit account 25 (50650). 26 Mental Hygiene: 27 1. $2,000,000 from the general fund, to the mental hygiene facilities 28 capital improvement fund (32300). 29 2. $20,000,000 from the opioid settlement fund (23817) to the miscel- 30 laneous capital projects fund, opioid settlement capital account 31 (32200). 32 3. $20,000,000 from the miscellaneous capital projects fund, opioid 33 settlement capital account (32200) to the opioid settlement fund 34 (23817). 35 Public Protection: 36 1. $2,587,000 from the general fund to the miscellaneous special 37 revenue fund, recruitment incentive account (22171). 38 2. $23,773,000 from the general fund to the correctional industries 39 revolving fund, correctional industries internal service account 40 (55350). 41 3. $2,000,000,000 from any of the division of homeland security and 42 emergency services special revenue federal funds to the general fund. 43 4. $115,420,000 from the state police motor vehicle law enforcement 44 and motor vehicle theft and insurance fraud prevention fund, state 45 police motor vehicle enforcement account (22802), to the general fund 46 for state operation expenses of the division of state police. 47 5. $138,272,000 from the general fund to the correctional facilities 48 capital improvement fund (32350). 49 6. $5,000,000 from the general fund to the dedicated highway and 50 bridge trust fund (30050) for the purpose of work zone safety activities 51 provided by the division of state police for the department of transpor- 52 tation. 53 7. $10,000,000 from the miscellaneous special revenue fund, statewide 54 public safety communications account (22123), to the capital projects 55 fund (30000). S. 3006--C 141 A. 3006--C

1 8. $9,830,000 from the miscellaneous special revenue fund, legal 2 services assistance account (22096), to the general fund. 3 9. $1,000,000 from the general fund to the agencies internal service 4 fund, neighborhood work project account (55059). 5 10. $7,980,000 from the miscellaneous special revenue fund, finger- 6 print identification & technology account (21950), to the general fund. 7 11. $1,100,000 from the state police motor vehicle law enforcement and 8 motor vehicle theft and insurance fraud prevention fund, motor vehicle 9 theft and insurance fraud account (22801), to the general fund. 10 12. $38,938,000 from the general fund to the miscellaneous special 11 revenue fund, criminal justice improvement account (21945). 12 13. $6,000,000 from the general fund to the miscellaneous special 13 revenue fund, hazard mitigation revolving loan account (22266). 14 14. $234,000,000 from the indigent legal services fund, indigent legal 15 services account (23551) to the general fund. 16 Transportation: 17 1. $20,000,000 from the general fund to the mass transportation oper- 18 ating assistance fund, public transportation systems operating assist- 19 ance account (21401), of which $12,000,000 constitutes the base need for 20 operations. 21 2. $727,500,000 from the general fund to the dedicated highway and 22 bridge trust fund (30050). 23 3. $244,250,000 from the general fund to the MTA financial assistance 24 fund, mobility tax trust account (23651). 25 4. $477,000 from the miscellaneous special revenue fund, traffic adju- 26 dication account (22055), to the general fund. 27 5. $5,000,000 from the miscellaneous special revenue fund, transporta- 28 tion regulation account (22067) to the general fund, for disbursements 29 made from such fund for motor carrier safety that are in excess of the 30 amounts deposited in the general fund for such purpose pursuant to 31 section 94 of the transportation law. 32 Miscellaneous: 33 1. $250,000,000 from the general fund to any funds or accounts for the 34 purpose of reimbursing certain outstanding accounts receivable balances. 35 2. $500,000,000 from the general fund to the debt reduction reserve 36 fund (40000). 37 3. $15,500,000 from the general fund, community projects account GG 38 (10256), to the general fund, state purposes account (10050). 39 4. $100,000,000 from any special revenue federal fund to the general 40 fund, state purposes account (10050). 41 5. An amount up to the unencumbered balance from the special revenue 42 federal fund, ARPA-Fiscal Recovery Fund (25546) to the general fund. 43 6. $1,000,000,000 from the general fund to the hazardous waste cleanup 44 account (31506), State parks infrastructure account (30351), environ- 45 mental protection fund transfer account (30451), the correctional facil- 46 ities capital improvement fund (32350), housing program fund (31850), or 47 the Mental hygiene facilities capital improvement fund (32300), up to an 48 amount equal to certain outstanding accounts receivable balances. 49 § 4. Notwithstanding any law to the contrary, and in accordance with 50 section 4 of the state finance law, the comptroller is hereby authorized 51 and directed to transfer, on or before March 31, 2026: 52 1. Upon request of the commissioner of environmental conservation, up 53 to $12,745,400 from revenues credited to any of the department of envi- 54 ronmental conservation special revenue funds, including $4,000,000 from 55 the environmental protection and oil spill compensation fund (21200), S. 3006--C 142 A. 3006--C

1 and $1,834,600 from the conservation fund (21150), to the environmental 2 conservation special revenue fund, indirect charges account (21060). 3 2. Upon request of the commissioner of agriculture and markets, up to 4 $3,000,000 from any special revenue fund or enterprise fund within the 5 department of agriculture and markets to the general fund, to pay appro- 6 priate administrative expenses. 7 3. Upon request of the commissioner of the division of housing and 8 community renewal, up to $6,221,000 from revenues credited to any divi- 9 sion of housing and community renewal federal or miscellaneous special 10 revenue fund to the miscellaneous special revenue fund, housing indirect 11 cost recovery account (22090). 12 4. Upon request of the commissioner of the division of housing and 13 community renewal, up to $5,500,000 may be transferred from any miscel- 14 laneous special revenue fund account, to any miscellaneous special 15 revenue fund. 16 5. Upon request of the commissioner of health up to $13,694,000 from 17 revenues credited to any of the department of health's special revenue 18 funds, to the miscellaneous special revenue fund, administration account 19 (21982). 20 6. Upon the request of the attorney general, up to $5,000,000 from 21 revenues credited to the federal health and human services fund, federal 22 health and human services account (25117) or the miscellaneous special 23 revenue fund, recoveries and revenue account (22041), to the miscella- 24 neous special revenue fund, litigation settlement and civil recovery 25 account (22117). 26 § 5. On or before March 31, 2026, the comptroller is hereby authorized 27 and directed to deposit earnings that would otherwise accrue to the 28 general fund that are attributable to the operation of section 98-a of 29 the state finance law, to the agencies internal service fund, banking 30 services account (55057), for the purpose of meeting direct payments 31 from such account. 32 § 6. Notwithstanding any law to the contrary, and in accordance with 33 section 4 of the state finance law, the comptroller is hereby authorized 34 and directed to transfer, upon request of the director of the budget and 35 upon consultation with the state university chancellor or their desig- 36 nee, on or before March 31, 2026, up to $16,000,000 from the state 37 university income fund general revenue account (22653) to the state 38 general fund for debt service costs related to campus supported capital 39 project costs for the NY-SUNY 2020 challenge grant program at the 40 University at Buffalo. 41 § 7. Notwithstanding any law to the contrary, and in accordance with 42 section 4 of the state finance law, the comptroller is hereby authorized 43 and directed to transfer, upon request of the director of the budget and 44 upon consultation with the state university chancellor or their desig- 45 nee, on or before March 31, 2026, up to $6,500,000 from the state 46 university income fund general revenue account (22653) to the state 47 general fund for debt service costs related to campus supported capital 48 project costs for the NY-SUNY 2020 challenge grant program at the 49 University at Albany. 50 § 8. Notwithstanding any law to the contrary, the state university 51 chancellor or their designee is authorized and directed to transfer 52 estimated tuition revenue balances from the state university collection 53 fund (61000) to the state university income fund, state university 54 general revenue offset account (22655) on or before March 31, 2026. 55 § 8-a. Notwithstanding any law to the contrary, and in accordance with 56 section 4 of the state finance law, the comptroller is hereby authorized S. 3006--C 143 A. 3006--C

1 and directed to transfer, upon request of the director of the budget, a 2 total of up to $100,000,000 from the general fund to the state universi- 3 ty income fund, state university general revenue offset account (22655) 4 and/or the state university income fund, state university hospitals 5 income reimbursable account (22656) during the period July 1, 2025 6 through June 30, 2026 to pay costs attributable to the state university 7 health science center at Brooklyn and/or the state university of New 8 York hospital at Brooklyn, respectively, pursuant to a plan approved by 9 the director of the budget. 10 § 9. Notwithstanding any law to the contrary, and in accordance with 11 section 4 of the state finance law, the comptroller is hereby authorized 12 and directed to transfer, upon request of the director of the budget, up 13 to $1,522,673,500 from the general fund to the state university income 14 fund, state university general revenue offset account (22655) during the 15 period of July 1, 2025 through June 30, 2026 to support operations at 16 the state university. 17 § 10. Notwithstanding any law to the contrary, and in accordance with 18 section 4 of the state finance law, the comptroller is hereby authorized 19 and directed to transfer, upon request of the director of the budget, up 20 to $55,848,000 from the general fund to the state university income 21 fund, state university general revenue offset account (22655) during the 22 period of July 1, 2025 to June 30, 2026 for general fund operating 23 support pursuant to subparagraph (4-b) of paragraph h of subdivision 2 24 of section three hundred fifty-five of the education law. 25 § 11. Notwithstanding any law to the contrary, upon the direction of 26 the director of the budget and the chancellor of the state university of 27 New York or their designee, and in accordance with section 4 of the 28 state finance law, the comptroller is hereby authorized and directed to 29 transfer monies from any special revenue fund of the state university of 30 New York to the state university of New York green energy loan fund for 31 the discrete purposes of the state university of New York green energy 32 loan fund and from the state university of New York green energy loan 33 fund to any special revenue fund of the state university of New York to 34 support such activity in an amount not to exceed $25,000,000 from each 35 fund for the time period of July 1 to June 30 annually. 36 § 12. Notwithstanding any law to the contrary, and in accordance with 37 section 4 of the state finance law, the comptroller is hereby authorized 38 and directed to transfer, upon request of the state university chancel- 39 lor or their designee, up to $55,000,000 from the state university 40 income fund, state university hospitals income reimbursable account 41 (22656), for services and expenses of hospital operations and capital 42 expenditures at the state university hospitals; and the state university 43 income fund, Long Island veterans' home account (22652) to the state 44 university capital projects fund (32400) on or before June 30, 2026. 45 § 13. Notwithstanding any law to the contrary, and in accordance with 46 section 4 of the state finance law, the comptroller, after consultation 47 with the state university chancellor or their designee, is hereby 48 authorized and directed to transfer moneys, in the first instance, from 49 the state university collection fund, Stony Brook hospital collection 50 account (61006), Brooklyn hospital collection account (61007), and Syra- 51 cuse hospital collection account (61008) to the state university income 52 fund, state university hospitals income reimbursable account (22656) in 53 the event insufficient funds are available in the state university 54 income fund, state university hospitals income reimbursable account 55 (22656) to permit the full transfer of moneys authorized for transfer, 56 to the general fund for payment of debt service related to the SUNY S. 3006--C 144 A. 3006--C

1 hospitals. Notwithstanding any law to the contrary, the comptroller is 2 also hereby authorized and directed, after consultation with the state 3 university chancellor or their designee, to transfer moneys from the 4 state university income fund to the state university income fund, state 5 university hospitals income reimbursable account (22656) in the event 6 insufficient funds are available in the state university income fund, 7 state university hospitals income reimbursable account (22656) to pay 8 hospital operating costs or to permit the full transfer of moneys 9 authorized for transfer, to the general fund for payment of debt service 10 related to the SUNY hospitals on or before March 31, 2026. 11 § 14. Notwithstanding any law to the contrary, upon the direction of 12 the director of the budget and the chancellor of the state university of 13 New York or their designee, and in accordance with section 4 of the 14 state finance law, the comptroller is hereby authorized and directed to 15 transfer monies from the state university dormitory income fund (40350) 16 to the state university residence hall rehabilitation fund (30100), and 17 from the state university residence hall rehabilitation fund (30100) to 18 the state university dormitory income fund (40350), in an amount not to 19 exceed $125 million from each fund. 20 § 15. Notwithstanding any law to the contrary, and in accordance with 21 section 4 of the state finance law, the comptroller is hereby authorized 22 and directed to transfer, at the request of the director of the budget, 23 up to $1,000,000,000 from the unencumbered balance of any special reven- 24 ue fund or account, agency fund or account, internal service fund or 25 account, enterprise fund or account, or any combination of such funds 26 and accounts, to the general fund. The amounts transferred pursuant to 27 this authorization shall be in addition to any other transfers expressly 28 authorized in the 2025-26 budget. Transfers from federal funds, debt 29 service funds, capital projects funds, the community projects fund, or 30 funds that would result in the loss of eligibility for federal benefits 31 or federal funds pursuant to federal law, rule, or regulation as assent- 32 ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 33 1951 are not permitted pursuant to this authorization. 34 § 16. Notwithstanding any law to the contrary, and in accordance with 35 section 4 of the state finance law, the comptroller is hereby authorized 36 and directed to transfer, at the request of the director of the budget, 37 up to $100 million from any non-general fund or account, or combination 38 of funds and accounts, to the miscellaneous special revenue fund, tech- 39 nology financing account (22207), the miscellaneous capital projects 40 fund, the federal capital projects account (31350), information technol- 41 ogy capital financing account (32215), or the centralized technology 42 services account (55069), for the purpose of consolidating technology 43 procurement and services. The amounts transferred to the miscellaneous 44 special revenue fund, technology financing account (22207) pursuant to 45 this authorization shall be equal to or less than the amount of such 46 monies intended to support information technology costs which are 47 attributable, according to a plan, to such account made in pursuance to 48 an appropriation by law. Transfers to the technology financing account 49 shall be completed from amounts collected by non-general funds or 50 accounts pursuant to a fund deposit schedule or permanent statute, and 51 shall be transferred to the technology financing account pursuant to a 52 schedule agreed upon by the affected agency commissioner. Transfers from 53 funds that would result in the loss of eligibility for federal benefits 54 or federal funds pursuant to federal law, rule, or regulation as assent- 55 ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 56 1951 are not permitted pursuant to this authorization. S. 3006--C 145 A. 3006--C

1 § 17. Notwithstanding any law to the contrary, and in accordance with 2 section 4 of the state finance law, the comptroller is hereby authorized 3 and directed to transfer, at the request of the director of the budget, 4 up to $400 million from any non-general fund or account, or combination 5 of funds and accounts, to the general fund for the purpose of consol- 6 idating technology procurement and services. The amounts transferred 7 pursuant to this authorization shall be equal to or less than the amount 8 of such monies intended to support information technology costs which 9 are attributable, according to a plan, to such account made in pursuance 10 to an appropriation by law. Transfers to the general fund shall be 11 completed from amounts collected by non-general funds or accounts pursu- 12 ant to a fund deposit schedule. Transfers from funds that would result 13 in the loss of eligibility for federal benefits or federal funds pursu- 14 ant to federal law, rule, or regulation as assented to in chapter 683 of 15 the laws of 1938 and chapter 700 of the laws of 1951 are not permitted 16 pursuant to this authorization. 17 § 18. Notwithstanding any provision of law to the contrary, as deemed 18 feasible and advisable by its trustees, the power authority of the state 19 of New York is authorized and directed to transfer to the state treasury 20 to the credit of the general fund up to $10,000,000 for the state fiscal 21 year commencing April 1, 2025, the proceeds of which will be utilized to 22 support energy-related state activities. 23 § 19. Notwithstanding any provision of law to the contrary, as deemed 24 feasible and advisable by its trustees, the power authority of the state 25 of New York is authorized to transfer to the state treasury to the cred- 26 it of the general fund up to $25,000,000 for the state fiscal year 27 commencing April 1, 2025, the proceeds of which will be utilized to 28 support programs established or implemented by or within the department 29 of labor, including but not limited to the office of just energy transi- 30 tion and programs for workforce training and retraining, to prepare 31 workers for employment for work in the renewable energy field. 32 § 20. Notwithstanding any provision of law, rule or regulation to the 33 contrary, the New York state energy research and development authority 34 is authorized and directed to contribute $913,000 to the state treasury 35 to the credit of the general fund on or before March 31, 2026. 36 § 21. Notwithstanding any provision of law, rule or regulation to the 37 contrary, the New York state energy research and development authority 38 is authorized and directed to transfer five million dollars to the cred- 39 it of the Environmental Protection Fund on or before March 31, 2026 from 40 proceeds collected by the authority from the auction or sale of carbon 41 dioxide emission allowances allocated by the department of environmental 42 conservation. 43 § 22. Section 56 of part XX of chapter 56 of the laws of 2024, amend- 44 ing the state finance law and other laws relating to providing for the 45 administration of certain funds and accounts related to the 2023-2024 46 budget, authorizing certain payments and transfers, is amended to read 47 as follows: 48 § 56. This act shall take effect immediately and shall be deemed to 49 have been in full force and effect on and after April 1, 2024; provided, 50 however, that the provisions of sections one, two, three, four, five, 51 six, seven, eight, fourteen, fifteen, sixteen, seventeen, eighteen, 52 nineteen, twenty, twenty-one, twenty-two, [ twenty-three, ] and twenty- 53 four of this act shall expire March 31, 2025; and provided, further, 54 that sections twenty-five and twenty-six of this act shall expire March 55 31, 2027, when upon such dates the provisions of such sections shall be 56 deemed repealed. S. 3006--C 146 A. 3006--C

1 § 23. Subdivision 5 of section 97-rrr of the state finance law, as 2 amended by section 23 of part XX of chapter 56 of the laws of 2024, is 3 amended to read as follows: 4 5. Notwithstanding the provisions of section one hundred seventy-one-a 5 of the tax law, as separately amended by chapters four hundred eighty- 6 one and four hundred eighty-four of the laws of nineteen hundred eight- 7 y-one, and notwithstanding the provisions of chapter ninety-four of the 8 laws of two thousand eleven, or any other provisions of law to the 9 contrary, during the fiscal year beginning April first, two thousand 10 [ twenty-four ] twenty-five , the state comptroller is hereby authorized 11 and directed to deposit to the fund created pursuant to this section 12 from amounts collected pursuant to article twenty-two of the tax law and 13 pursuant to a schedule submitted by the director of the budget, up to 14 [ $1,575,393,000 ] $1,396,911,000 as may be certified in such schedule as 15 necessary to meet the purposes of such fund for the fiscal year begin- 16 ning April first, two thousand [ twenty-four ] twenty-five . 17 § 24. Subdivision 2 of section 8-b of the state finance law is 18 REPEALED. 19 § 24-a. The opening paragraph of subdivision 3 of section 93-b of the 20 state finance law, as amended by section 23 of part JJJ of chapter 59 of 21 the laws of 2021, is amended to read as follows: 22 Notwithstanding any other provisions of law to the contrary, commenc- 23 ing on April first, two thousand [ twenty-one ] twenty-five , and continu- 24 ing through March thirty-first, two thousand [ twenty-five ] thirty , the 25 comptroller is hereby authorized to transfer monies from the dedicated 26 infrastructure investment fund to the general fund, and from the general 27 fund to the dedicated infrastructure investment fund, in an amount 28 determined by the director of the budget to the extent moneys are avail- 29 able in the fund; provided, however, that the comptroller is only 30 authorized to transfer monies from the dedicated infrastructure invest- 31 ment fund to the general fund in the event of an economic downturn as 32 described in paragraph (a) of this subdivision; and/or to fulfill disal- 33 lowances and/or settlements related to over-payments of federal medicare 34 and medicaid revenues in excess of one hundred million dollars from 35 anticipated levels, as determined by the director of the budget and 36 described in paragraph (b) of this subdivision. 37 § 25. Notwithstanding any law to the contrary, the comptroller is 38 hereby authorized and directed to transfer, upon request of the director 39 of the budget, on or before March 31, 2026, the following amounts from 40 the following special revenue accounts to the capital projects fund 41 (30000), for the purposes of reimbursement to such fund for expenses 42 related to the maintenance and preservation of state assets: 43 1. $43,000 from the miscellaneous special revenue fund, administrative 44 program account (21982). 45 2. $1,583,110 from the miscellaneous special revenue fund, helen hayes 46 hospital account (22140). 47 3. $488,220 from the miscellaneous special revenue fund, New York city 48 veterans' home account (22141). 49 4. $610,790 from the miscellaneous special revenue fund, New York 50 state home for veterans' and their dependents at oxford account (22142). 51 5. $182,310 from the miscellaneous special revenue fund, western New 52 York veterans' home account (22143). 53 6. $422,524 from the miscellaneous special revenue fund, New York 54 state for veterans in the lower-hudson valley account (22144). 55 7. $2,550,000 from the miscellaneous special revenue fund, patron 56 services account (22163). S. 3006--C 147 A. 3006--C

1 8. $11,909,000 from the miscellaneous special revenue fund, state 2 university general income reimbursable account (22653). 3 9. $182,988,000 from the miscellaneous special revenue fund, state 4 university revenue offset account (22655). 5 10. $55,103,000 from the state university dormitory income fund, state 6 university dormitory income fund (40350). 7 11. $1,000,000 from the miscellaneous special revenue fund, litigation 8 settlement and civil recovery account (22117). 9 § 26. Section 89-g of the state finance law is REPEALED. 10 § 27. Section 22 of the state finance law, as amended by chapter 762 11 of the laws of 1992, subdivisions 1-c, 14, 15 and 16 as added and para- 12 graphs d-2, e, e-2 and i of subdivision 3 and subdivision 4 as amended 13 by chapter 1 of the laws of 2007, paragraphs a-1, a-2 and a-3 of subdi- 14 vision 3 as added by chapter 10 of the laws of 2006, paragraph j of 15 subdivision 3 as added by chapter 453 of the laws of 2015, subdivision 9 16 as amended by chapter 260 of the laws of 1993 and subdivisions 5, 6, 7, 17 8, 9, 10, 11, 12 and 13 as renumbered by section 2 of part F of chapter 18 389 of the laws of 1997, is amended to read as follows: 19 § 22. The budget; contents. The budget submitted annually by the 20 governor to the legislature, in accordance with article seven of the 21 constitution, in addition to the information required by the constitu- 22 tion to be set forth therein, shall: 23 1. include a summary financial plan showing for each of the govern- 24 mental fund types: (a) the disbursements estimated to be made before the 25 close of the current fiscal year and the moneys estimated to be avail- 26 able from receipts and other sources therefor; and (b) the disbursements 27 proposed to be made during the ensuing fiscal year, and the moneys esti- 28 mated to be available from receipts and other sources therefor inclusive 29 of any receipts which are expected to result from proposed legislation 30 which [ he ] the governor deems necessary to provide receipts sufficient 31 to meet such proposed disbursements. For the purposes of this summary 32 financial plan, disbursements shall be presented by the following 33 purposes: state purposes, local assistance, capital projects, debt 34 service, and general state charges; receipts shall be presented for each 35 fund type by each revenue source which accounts for at least one per 36 centum of all such receipts and otherwise by categories of revenue 37 sources; receipts and disbursements for special revenue funds shall be 38 presented separately for federal funds and all other special revenue 39 funds. Whenever receipts or disbursements are proposed to be moved to a 40 different fund type, each significant amount so moved shall be identi- 41 fied. 42 1-a. within ten days following the submission of the financial plans 43 presented in accordance with subdivision one of this section, the direc- 44 tor of the budget shall submit to the chairs of the senate finance and 45 the assembly ways and means committees and the comptroller summary 46 financial plans of receipts and disbursements for the internal service, 47 enterprise, and fiduciary fund types. 48 1-b. within ten days of the submission of the financial plan for the 49 special revenue fund type, the director of the budget shall submit to 50 the chairs of the senate finance and assembly ways and means committees 51 a schedule of receipts and disbursements by account within each special 52 revenue fund, excluding those which are financed primarily by federal 53 grants. 54 1-c. within ten days following the submission of the financial plans 55 presented in accordance with subdivision one of this section, the direc- 56 tor of the budget shall submit to the chairs of the senate finance and S. 3006--C 148 A. 3006--C

1 the assembly ways and means committees and the comptroller an estimate 2 of the fiscal impact of the executive budget general fund changes on 3 local governments and, where practicable, the fiscal impact on local 4 governments of the executive budget all fund changes concerning the 5 medicaid program, homeland security program, and workforce investment 6 programs. Such estimate shall be presented by class of local government 7 and shall measure all of the impacts of the executive budget, including 8 aid program changes, reimbursement changes, statutory changes in author- 9 izations for local taxation, mandates on local governments and other 10 requirements. Such estimate shall show the impact on local governments 11 by local fiscal years affected and shall cover the first local fiscal 12 year affected as well as the ensuing local fiscal year. Where such 13 estimate depends on any local option or action, the estimate shall 14 explicitly describe the assumptions used to calculate the estimate. When 15 under existing law a local tax option or program would end and the exec- 16 utive budget proposes the continuation thereof, the impact shall be 17 identified as a "deferral of sunset" and shall be calculated as a sepa- 18 rate component of such estimate. 19 2. [ include a summary financial plan showing for each of the govern- 20 mental fund types: (a) all of the expenditures estimated to be made, in 21 accordance with generally accepted accounting principles, before the 22 close of the current fiscal year and all of the expenditures proposed to 23 be made, in accordance with generally accepted accounting principles, 24 during the ensuing fiscal year; and (b) all of the revenues estimated to 25 accrue, in accordance with generally accepted accounting principles, 26 before the close of the current fiscal year and during the ensuing 27 fiscal year inclusive of any revenues which are expected to result from 28 the proposed legislation which he deems necessary to provide receipts 29 sufficient to meet proposed disbursements. For the purposes of this 30 summary financial plan, expenditures shall be presented by the following 31 purposes: state purposes, local assistance, capital projects, debt 32 service, and general state charges; and revenues shall be presented by 33 each revenue source which accounts for at least one per centum of all 34 such revenues and otherwise by categories of revenue sources. 35 3. ] show for each fund type (unless otherwise specified) in a form 36 suitable for comparison: 37 a. The appropriations, including reappropriations, made for the 38 current fiscal year, the appropriations and reappropriations recommended 39 for the ensuing fiscal year, the disbursements estimated to be made 40 before the close of the current fiscal year and proposed to be made 41 during the ensuing fiscal year based upon available and recommended 42 appropriations and reappropriations. Disbursements proposed to be made 43 shall be shown in separate parts as follows: those disbursements 44 proposed to be made for state purposes shall be set forth in one part, 45 those disbursements proposed to be made for local assistance shall be 46 set forth in another separate and distinct part, those disbursements 47 proposed to be made for capital projects shall be set forth in a third 48 separate and distinct part and those disbursements proposed to be made 49 for debt service shall be set forth in a fourth separate and distinct 50 part. The effect of any proposed changes in the payment dates of partic- 51 ular disbursements on the financial plan presented in accordance with 52 subdivision one of this section shall be set forth separately. 53 a-1. For each state agency, the appropriations, including reappropri- 54 ations, made for the current fiscal year and recommended for the ensuing 55 fiscal year for contracts for services made for state purposes. S. 3006--C 149 A. 3006--C

1 a-2. For each state agency, the disbursements estimated to be made 2 before the close of the current fiscal year and proposed to be made 3 during the ensuing fiscal year for contracts for services made for state 4 purposes. 5 a-3. For each state agency, the estimated number of employees hired 6 for the current fiscal year and anticipated to be hired during the ensu- 7 ing fiscal year pursuant to contracts for services made for state 8 purposes based upon annual employment reports submitted by contractors 9 pursuant to section one hundred sixty-three of this chapter. 10 b. In separate sections for each fund type, the receipts actually had 11 and received during the preceding fiscal year, the receipts estimated to 12 be available and received during the current and ensuing fiscal years 13 respectively listed by each major source, including statistical and 14 summary tables and a narrative which includes a discussion of the 15 assumptions used in estimating such receipts. The effect of any proposed 16 changes in the rates, bases, payment dates or other aspects of partic- 17 ular sources of receipts on the financial plan presented in accordance 18 with subdivision one of this section shall be set forth separately and 19 the assumptions used in calculating such effect. Whenever a new fee or a 20 new financing mechanism is proposed, a schedule of the new fee or 21 financing mechanism shall be included for purposes of showing the effect 22 of the new fee or financing mechanism on the financial plan. 23 c. [ The expenditures estimated to be made in accordance with generally 24 accepted accounting principles before the close of the current fiscal 25 year and proposed to be made in accordance with generally accepted 26 accounting principles during the ensuing fiscal year. Expenditures esti- 27 mated and proposed to be made shall be shown in separate parts as 28 follows: those expenditures for state purposes shall be set forth in one 29 part, those expenditures for local assistance shall be set forth in 30 another separate and distinct part, those expenditures for capital 31 projects shall be set forth in a third separate and distinct part, and 32 those expenditures for debt service shall be set forth in a fourth sepa- 33 rate and distinct part. 34 d. The revenues actually accrued in the preceding fiscal year, the 35 revenues estimated to accrue during current and ensuing fiscal years 36 respectively. Revenues from each tax shall be shown both in total and 37 net of refunds. 38 d-1. A schedule for the general fund showing the differences between 39 projected operating results on a cash basis and those on the basis of 40 generally accepted accounting principles. 41 d-2. ] Within ten days following the submission of the financial plans 42 presented in accordance with [ subdivisions ] subdivision one [ and two ] of 43 this section, the director of the budget shall submit to the comptroller 44 and the chairs of the senate finance committee and the assembly ways and 45 means committee: 46 (i) a detailed schedule by fund of the receipts and disbursements 47 comprising such summary financial plan; 48 (ii) [ a schedule for each governmental fund type other than the gener- 49 al fund showing the differences between projected operating results on a 50 cash basis and those on the basis of generally accepted accounting prin- 51 ciples; 52 (iii) a detailed schedule by fund of revenues and expenditures within 53 the general fund; 54 (iv) ] a detailed schedule by fund of receipts for the prior, current 55 and next three fiscal years. Such schedule shall present the major S. 3006--C 150 A. 3006--C

1 revenue sources for each fund, including detail for each major tax, and 2 major components of miscellaneous receipts; and 3 [ (v) ] (iii) an itemized list of transfers to and from the general 4 fund. 5 [ e. ] d. The anticipated general fund quarterly schedule and fiscal 6 year total for the prior, current and next ensuing fiscal years of: 7 disbursements; receipts; repayments of advances; total tax refunds; and 8 refunds for the tax imposed under article twenty-two of the tax law. 9 Such information shall be presented in the same form as the summary 10 financial plans presented in accordance with [ subdivisions ] subdivision 11 one [ and two ] of this section. A separate, detailed, report of such 12 schedule shall be provided with receipts shown by each major revenue 13 category, including detail for each major tax and major components of 14 miscellaneous receipts, and with disbursements shown by major function 15 or program. The director of the division of the budget shall submit 16 concurrent with the submission of the financial plan to the legislature 17 pursuant to subdivision [ two ] one of this section and with each update 18 thereafter a revised monthly general fund cash flow projection of 19 receipts and disbursements for the current fiscal year that: (1) 20 compares actual results to (i) actual results through the same period 21 for the prior year and (ii) the most recent prior update to the finan- 22 cial plan and to the enacted budget financial plan; (2) summarizes the 23 reasons for any variances; and (3) describes the revisions to the cash 24 flow projections. The monthly general fund cash flow projection shall be 25 stated by major category of local assistance, personal service, nonper- 26 sonal service, general state charges, and debt service, and by major 27 category of revenue. Such reports shall utilize a format that shall 28 facilitate comparison and analysis with those reports submitted to the 29 legislature by the office of audit and control pursuant to subdivision 30 nine of section eight of this chapter. 31 [ e-1. ] d-1. Within ten days following the submission of the financial 32 plans presented in accordance with [ subdivisions ] subdivision one [ and 33 two ] of this section, the anticipated general fund monthly and govern- 34 mental fund types quarterly schedule and fiscal year total for the ensu- 35 ing fiscal year of: disbursements; receipts; repayments of advances; 36 total tax refunds; and refunds for the tax imposed under article twen- 37 ty-two of the tax law. Such information shall be presented in the same 38 form as the summary financial plans presented in accordance with [ subdi- 39 visions ] subdivision one [ and two ] of this section. 40 [ e-2. ] d-2. A description of employment levels for each state depart- 41 ment, division or office, for the prior, current and next ensuing fiscal 42 year containing: 43 (1) separate schedules for each fund type; and 44 (2) an all funds summary. Such information shall be presented in a 45 form that facilitates comparisons among agencies and across fiscal 46 years, and shall include: 47 (i) actual and projected full-time equivalents; and 48 (ii) proposed changes to the work force in the executive budget, 49 including but not limited to: new positions, layoffs, attrition, and 50 changes in funding sources. To the extent practicable, the division of 51 the budget shall facilitate the provision of other relevant information 52 on employment to the legislature in a timely manner during the state 53 fiscal year. 54 [ f. ] e. A statement explaining any differences between the significant 55 accounting policies used in the preparation of the documents required to 56 be submitted pursuant to this section and those used by the comptroller S. 3006--C 151 A. 3006--C

1 in the preparation of the financial statements contained in the annual 2 report to the legislature for the preceding fiscal year issued pursuant 3 to subdivision nine of section eight of this chapter. 4 [ g. ] f. The estimated borrowings in anticipation of the receipt of 5 taxes and revenues and the amount of interest estimated to be paid ther- 6 eon during the current and ensuing fiscal years respectively, and the 7 amounts actually so borrowed and the interest actually paid thereon 8 during the preceding fiscal year. 9 [ h. ] g. In connection with each statement of receipts from taxes 10 imposed pursuant to state law, the total amounts collected or estimated 11 to be collected therefrom. 12 [ i. ] h. A statement setting forth state involvement in the fiscal 13 operations of those public authorities and public benefit corporations 14 which may be part of the development of a comprehensive state budget 15 system and provided therefor in the state financial plan. Such statement 16 shall include those public authorities and public benefit corporations 17 with disbursements which are not currently reflected in the state 18 central accounting system from proceeds of any notes or bonds issued by 19 any public authority, and which bonds or notes would be considered as 20 state-supported debt as defined in section sixty-seven-a of this chap- 21 ter. Such statement shall set forth the amount of all of the bonds, 22 notes and other obligations of each public authority, public benefit 23 corporation and all other agencies and instrumentalities of the state 24 for which the full faith and credit of the state has been pledged or on 25 account of which the state has by law given its pledge or assurance for 26 the continued operation and solvency of the authority, public corpo- 27 ration, or other agency or instrumentality of the state, as the case may 28 be. Such statement shall also set forth all proposed appropriations to 29 be made to any public authority, public benefit corporation, and any 30 other agency or instrumentality of the state which has been created or 31 continued by law and which is separate and distinct from the state 32 itself. 33 [ j. ] i. Include a summary financial plan for the funds of the state 34 receiving tax check-off monies which shall include estimates of all 35 receipts and all disbursements for the current and succeeding fiscal 36 years, along with the actual results from the prior fiscal year. 37 [ 4. a. ] 3. Include a three year financial projection showing the 38 anticipated disbursements and receipts for each of the governmental fund 39 types of the state. For the purposes of this three year financial 40 projection, disbursements shall be presented by the following purposes: 41 state purposes, local assistance, capital projects, debt service, trans- 42 fers and general state charges with each major function or major program 43 identified separately within each purpose; and receipts shall be 44 presented by each major revenue category, including detail for each 45 major tax, and major components of miscellaneous receipts and with 46 disbursements shown by major function or program for the prior year, 47 current year and next three fiscal years, and otherwise by each major 48 source which is separately estimated and presented pursuant to paragraph 49 b of subdivision [ three ] two of this section. Receipts and disbursements 50 for special revenue funds shall be presented separately for federal 51 funds and all other special revenue funds. Whenever receipts and 52 disbursements are proposed to be moved to a different fund type, each 53 significant amount so moved shall be explained. This three year finan- 54 cial projection shall include an explanation of any changes to the 55 financial plans submitted in accordance with subdivision one of this 56 section and include explanations of the economic, statutory and other S. 3006--C 152 A. 3006--C

1 assumptions used to estimate the disbursements and receipts which are 2 presented. Whenever the projections for receipts and disbursements are 3 based on assumptions other than the current levels of service, such 4 assumptions shall be separately identified and explained. The three year 5 financial projections shall include a description of any projected defi- 6 cits or surpluses. 7 [ 5. ] 4. Include a summary statement of operations for the proprietary 8 and fiduciary fund types. Such summary statement of operations shall 9 include the estimated and projected receipts of and disbursements from 10 appropriations and reappropriations available or recommended from such 11 fund types in the budget bills submitted by the governor pursuant to 12 section twenty-four of this [ chapter ] article . Such summary statement 13 of operations shall be revised as soon as is practical after the legis- 14 lature has completed action on such budget bills. 15 [ 6. ] 5. Include a list of proposed legislation submitted pursuant to 16 section three of article seven of the constitution. 17 [ 7. ] 6. Notwithstanding any provision of law to the contrary, budgets 18 submitted pursuant to this section shall not recommend first instance 19 expenditures. Any anticipated reimbursement of proposed expenditures 20 shall be shown as receipts or revenues to the appropriate fund. 21 [ 8. ] 7. Within ten days following the submission of the budget by the 22 governor, the director of the budget shall transmit to the chairs of the 23 senate finance committee and the assembly ways and means committee a 24 report, by agency, program, and fund, including but not limited to, the 25 following information pertaining to financed equipment acquisitions for 26 state departments, agencies and units of the state university and the 27 city university of New York including those financed equipment acquisi- 28 tions financed by the issuance of certificates of participation or simi- 29 lar instruments for state departments, agencies and units of the state 30 and city universities of New York: 31 [ 1. ] a. For new financed equipment acquisitions to be financed in the 32 ensuing fiscal year: 33 [ (a) ] (1) An identification of the purposes of such financings, 34 including: 35 [ (1) ] (i) The nature of the equipment to be financed. 36 [ (2) ] (ii) Whether the purposes are new financings or refinancings of 37 outstanding lease purchase and installment purchase agreements. 38 [ (3) ] (iii) The recommended method of financing. 39 [ (b) ] (2) The estimated purchase cost of the equipment if purchased 40 outright. 41 [ (c) ] (3) The estimated interest rate and term of such financings. 42 [ (d) ] (4) The estimated expenses for the issuances of such certif- 43 icates or similar instruments as such expenses are defined in section 44 sixty-six-b of this chapter. 45 [ (e) ] (5) A schedule of estimated lease purchase payments by state 46 fiscal year for such financings, and estimated total financing costs. 47 [ 2. ] b. For outstanding financed equipment acquisitions as of April 48 first of the ensuing fiscal year the total estimated amount for lease or 49 installment purchase payments for the ensuing fiscal year. 50 [ 3. ] c. For outstanding financed equipment acquisitions financed by 51 certificates of participation the financing costs of outstanding certif- 52 icates of participation and similar instruments issued pursuant to 53 section sixty-six-b of this chapter with estimated payment schedules of 54 all such outstanding obligations. 55 [ 9. ] 8. Include a summary of disbursements by function of state 56 government for the preceding fiscal year and the estimated disbursements S. 3006--C 153 A. 3006--C

1 for the current and ensuing fiscal years in a form suitable for compar- 2 ison. Such summary shall present such disbursements by purpose as set 3 forth in subdivision one of this section and also including special 4 revenue funds-federal and special revenue funds-other. Such summary 5 shall also describe the state entities, as defined by [ subdivisions 6 five, six, seven and eight of ] section two-a of this chapter, within 7 each function. For the fiscal year beginning in nineteen hundred nine- 8 ty-three, such summary shall be presented within ten days of the budget 9 submission for the general fund, special revenue funds-other, capital 10 projects funds and debt service funds. For the fiscal year beginning in 11 nineteen hundred ninety-four, such summary shall be presented with the 12 budget for the general fund and within ten days of the budget submission 13 for special revenue funds-other, capital projects funds and debt service 14 funds. For fiscal years beginning in nineteen hundred ninety-five and 15 thereafter, such summary shall be presented with the budget. 16 [ 10. ] 9. Include a statement showing projected disbursement for the 17 current fiscal year and proposed disbursements for the ensuing fiscal 18 year by agency and bill and fund type. For the fiscal year beginning in 19 nineteen hundred ninety-three, such statement shall be presented within 20 ten days of the budget submission for the general fund, special revenue 21 funds-other, capital projects funds and debt service funds. For the 22 fiscal year beginning in nineteen hundred ninety-four, such summary 23 shall be presented with the budget for the general fund and within ten 24 days of the budget submission for special revenue funds-other, capital 25 projects funds and debt service funds. For fiscal years beginning in 26 nineteen hundred ninety-five and thereafter, such summary shall be 27 presented with the budget. 28 [ 11. ] 10. Within ten days following the submission of the financial 29 plans presented in accordance with [ subdivisions ] subdivision one [ and 30 two ] of this section, the director of the budget shall submit to the 31 chairs of the senate finance committee and the assembly ways and means 32 committee for the prior, the current and next ensuing fiscal years 33 detailed schedules by agency for the general fund showing proposed 34 appropriations in the state operations and aid to localities budget 35 bills with disbursements to be made against such appropriations, as well 36 as disbursements to be made against any existing appropriations. 37 [ 12. ] 11. a. With respect to any proposed appropriations for the 38 purpose of remedying state agency violations or past problems of the 39 environmental conservation law or regulations adopted thereunder within 40 the proposed budget submitted annually by the governor to the legisla- 41 ture shall, set forth the amount recommended to remedy each functional 42 category of violation. A priority criterion to be considered in deter- 43 mining such recommended appropriations shall be the ranking of such 44 violations and past problems as determined by the agency pursuant to 45 paragraph b of subdivision one of section 3-0311 of the environmental 46 conservation law, with any reordering of rankings as determined by the 47 department of environmental conservation. Amounts appropriated shall be 48 disbursed for remediation of the violation or problem only after review 49 and determination by the department of environmental conservation of the 50 adequacy of the remedial plan pursuant to paragraph g of subdivision 51 three of section 3-0311 of the environmental conservation law. 52 b. Within thirty days following the submission of the budget by the 53 governor for each fiscal year, beginning with the nineteen hundred nine- 54 ty-three--ninety-four fiscal year, the director of the budget shall 55 transmit to the chairs of the senate finance committee and the assembly 56 ways and means committee a report which includes project specific infor- S. 3006--C 154 A. 3006--C

1 mation for proposed appropriations for the purposes of remedying state 2 agency environmental violations or problems, as identified pursuant to 3 section 3-0311 of the environmental conservation law, contained within 4 such submitted budget. 5 [ 13. ] 12. Include a summary financial plan for all research institutes 6 which shall set forth: 7 a. estimates of all revenues and all expenses for the current and 8 succeeding fiscal years, along with the actual results from the prior 9 fiscal year; and 10 b. any agreement whereby any state agency will provide financial 11 support or any other assistance to cover any operating loss for such 12 research institute. 13 [ 14. ] 13. a. With respect to information technology projects, depend- 14 ent on funding in the executive budget, involving one or more contracts 15 projected to total ten million dollars or more, within thirty days 16 following the submission of the budget by the governor for each fiscal 17 year, beginning with the two thousand eight--two thousand nine fiscal 18 year, the director of the budget shall transmit to the chairs of the 19 senate finance committee and the assembly ways and means committee a 20 report which shall set forth the following: 21 (1) project summary describing the project purpose, proposed approach, 22 key milestones, current status and timetable; 23 (2) the proposed method of procurement, including whether the project 24 will, in whole or in part, utilize a centralized contract or a sole- 25 source contract; and 26 (3) the proposed funding source, financing method and estimated costs 27 by fiscal year. 28 b. Information provided pursuant to paragraph a of this subdivision 29 may not be disclosed to any party other than a governmental entity as 30 defined in section one hundred thirty-nine-j of this chapter, if such 31 disclosure would impair the fairness or competitiveness of a pending or 32 potential procurement process. 33 Estimated costs by fiscal year shall not be disclosed. 34 [ 15. ] 14. The division of the budget shall prepare the reports, sched- 35 ules, and other information described in this subdivision. To the extent 36 practicable, such reports, schedules, and information shall be in a 37 form, and presented at a level of detail, that facilitates comparison on 38 an annual basis and against actual results, as appropriate, and in a 39 manner consistent with the other reporting requirements enumerated in 40 this section. The reports, schedules, and other information required by 41 this subdivision shall be submitted to the chair of the senate finance 42 committee, the chair of the assembly ways and means committee, the 43 minority leaders of both houses, and the comptroller according to the 44 schedules set forth in this section. In determining the final content 45 and format of the information required by this section, the division of 46 the budget shall consult annually with the designees of the temporary 47 president of the senate, the speaker of the assembly, the minority lead- 48 ers of both houses, and the comptroller. All information described in 49 this subdivision shall be made available to the public. 50 a. The executive budget, the enacted budget report and each quarterly 51 update to the financial plan shall include an updated general fund fore- 52 cast of receipts and disbursements for the current and two succeeding 53 fiscal years. Such updated forecast shall clearly identify and explain 54 the revisions to the receipts and disbursements projections from the 55 most recent prior update to the financial plan, and any significant 56 revisions to the underlying factors affecting receipts and disbursements S. 3006--C 155 A. 3006--C

1 by major function, and may include, but not be limited to: caseload, 2 service, and utilization rates; demographic trends; economic variables; 3 pension fund performance; incarceration rates; prescription drug prices; 4 health insurance premiums; inflation; contractual obligations; liti- 5 gation; and state employment trends. 6 b. The capital program and financing plan submitted pursuant to 7 section twenty-two-c of this article, and the update thereto required 8 pursuant to section twenty-three of this article, shall include a report 9 on the management of state-supported debt. Such report may include, but 10 is not limited to: (1) an assessment of the affordability of state debt, 11 including debt as a percent of personal income, debt per capita, and 12 debt service costs as a percent of the budget; (2) a summary and analy- 13 sis of the interest rate exchange agreements and variable rate exposure; 14 and (3) an assessment of financing opportunities related to the state's 15 debt portfolio. 16 [ 16. ] 15. The governor shall make all practicable efforts to amend or 17 supplement the budget and submit supplemental bills or amendments to any 18 bills pursuant to article seven of the constitution within twenty-one 19 days after the budget is submitted to the legislature. 20 16. The amended executive budget required to be submitted within thir- 21 ty days after the submission of the executive budget to the legislature 22 in accordance with article seven of the constitution of the state of New 23 York, in addition to the information required by the constitution of the 24 state of New York to be set forth therein, shall include: 25 a. a summary financial plan showing for each of the governmental fund 26 types: (1) all of the expenditures estimated to be made, in accordance 27 with generally accepted accounting principles, before the close of the 28 current fiscal year and all of the expenditures proposed to be made, in 29 accordance with generally accepted accounting principles, during the 30 ensuing fiscal year; and (2) all of the revenues estimated to accrue, in 31 accordance with generally accepted accounting principles, before the 32 close of the current fiscal year and during the ensuing fiscal year 33 inclusive of any revenues which are expected to result from the proposed 34 legislation which is deemed necessary to provide receipts sufficient to 35 meet proposed disbursements. For the purposes of such summary financial 36 plan, expenditures shall be presented by the following purposes: state 37 purposes, local assistance, capital projects, debt service, and general 38 state charges; and revenues shall be presented by each revenue source 39 which accounts for at least one per centum of all such revenues and 40 otherwise by categories of revenue sources; 41 b. the expenditures estimated to be made in accordance with generally 42 accepted accounting principles before the close of the current fiscal 43 year and proposed to be made in accordance with generally accepted 44 accounting principles during the ensuing fiscal year. Expenditures esti- 45 mated and proposed to be made shall be shown in separate parts as 46 follows: those expenditures for state purposes shall be set forth in one 47 part, those expenditures for local assistance shall be set forth in 48 another separate and distinct part, those expenditures for capital 49 projects shall be set forth in a third separate and distinct part, and 50 those expenditures for debt service shall be set forth in a fourth sepa- 51 rate and distinct part; 52 c. the revenues actually accrued in the preceding fiscal year and the 53 revenues estimated to accrue during current and ensuing fiscal years, 54 respectively. Revenues from each tax shall be shown both in total and 55 net of refunds; S. 3006--C 156 A. 3006--C

1 d. a schedule for the general fund showing the differences between 2 projected operating results on a cash basis and those on the basis of 3 generally accepted accounting principles; 4 e. a schedule for each governmental fund type other than the general 5 fund showing the differences between projected operating results on a 6 cash basis and those on the basis of generally accepted accounting prin- 7 ciples; and 8 f. a detailed schedule by fund of revenues and expenditures within the 9 general fund. 10 § 28. Subparagraph (vi) of paragraph (d) of subdivision 3 of section 11 22-c of the state finance law, as amended by section 3 of part F of 12 chapter 389 of the laws of 1997, is amended to read as follows: 13 (vi) the total amount of disbursements for the project estimated to be 14 made during the current fiscal year and during each of the next ensuing 15 five fiscal years, provided however, that (A) the information required 16 by this subparagraph may be provided for groupings of projects in those 17 cases where the governor determines it cannot be provided on a project 18 by project basis, and (B) the total of all disbursements estimated in 19 accordance with the requirements of this subparagraph to be made for all 20 capital projects during the current fiscal year and during each of the 21 next ensuing five fiscal years, excluding those disbursements which are 22 estimated in accordance with the requirements of this subparagraph to be 23 made by public benefit corporations and which are not subject to appro- 24 priations, shall be equal, respectively, to the total of all disburse- 25 ments estimated, in the financial projections required by subdivisions 26 one and [ four ] three of section twenty-two of this article, to be made 27 for all capital projects during the then current fiscal year and during 28 each of the next ensuing five fiscal years, 29 § 29. Subdivisions 3 and 4 of section 23 of the state finance law, as 30 amended by chapter 1 of the laws of 2007, are amended to read as 31 follows: 32 3. Financial plans and capital improvement program; revisions. Not 33 later than thirty days after the legislature has completed action on the 34 budget bills submitted by the governor and the period for the governor's 35 review has elapsed, the governor shall cause to be submitted to the 36 legislature the revisions to the financial plans and the capital plan 37 required by subdivisions one, two, three, four and [ five ] paragraph (a) 38 of subdivision sixteen of section twenty-two of this article as are 39 necessary to account for all enactments affecting the financial plans 40 and the capital plan. The financial plan shall also contain a cash flow 41 analysis of projected receipts and disbursements and other financing 42 sources or uses for each month of the state's fiscal year. Notwithstand- 43 ing any other law to the contrary, such revised plans and accompanying 44 cash flow analysis shall be submitted to the legislature and the comp- 45 troller in the same form as the plans required by such subdivisions. 46 4. Financial plan updates. Quarterly, throughout the fiscal year, the 47 governor shall submit to the comptroller, the chairs of the senate 48 finance and the assembly ways and means committees, within thirty days 49 of the close of the quarter to which it shall pertain, a report which 50 summarizes the actual experience to date and projections for the remain- 51 ing quarters of the current fiscal year and for each of the next two 52 fiscal years of receipts, disbursements, tax refunds, and repayments of 53 advances presented in forms suitable for comparison with the financial 54 plan submitted pursuant to subdivisions one, three and four[ , and five, ] 55 of section twenty-two of this article and revised in accordance with the 56 provisions of subdivision three of this section. The governor shall S. 3006--C 157 A. 3006--C

1 submit with the budget a similar report that summarizes revenue and 2 expenditure experience to date in a form suitable for comparison with 3 the financial plan submitted pursuant to paragraph a of subdivision 4 [ two ] sixteen of section twenty-two of this article and revised in 5 accordance with the provisions of subdivision three of this section. 6 Such reports shall provide an explanation of the causes of any major 7 deviations from the revised financial plans and, shall provide for the 8 amendment of the plan or plans to reflect those deviations. The governor 9 may, if [ he ] the governor determines it advisable, provide more frequent 10 reports to the legislature regarding actual experience as compared to 11 the financial plans. The quarterly financial plan update most proximate 12 to October thirty-first of each year shall include the calculation of 13 the limitations on the issuance of state-supported debt computed pursu- 14 ant to the provisions of subdivisions one and two of section sixty-sev- 15 en-b of this chapter. 16 § 30. Notwithstanding any law to the contrary, the comptroller is 17 hereby authorized and directed to transfer, upon request of the director 18 of the budget, on or before March 31, 2026 the following amounts from 19 the following special revenue accounts or enterprise funds to the gener- 20 al fund, for the purposes of offsetting principal and interest costs, 21 incurred by the state pursuant to section 53 of part PP of chapter 56 of 22 the laws of 2023, provided that the annual amount of the transfer shall 23 be no more than the principal and interest that would have otherwise 24 been due to the power authority of the state of New York, from any state 25 agency, in a given state fiscal year. Amounts pertaining to special 26 revenue accounts assigned to the state university of New York shall be 27 considered interchangeable between the designated special revenue 28 accounts as to meet the requirements of this section and section 52 of 29 part RR of chapter 56 of the laws of 2023: 30 1. $15,000,000 from the miscellaneous special revenue fund, state 31 university general income reimbursable account (22653). 32 2. $5,000,000 from state university dormitory income fund, state 33 university dormitory income fund (40350). 34 3. $5,000,000 from the enterprise fund, city university senior college 35 operating fund (60851). 36 § 31. Notwithstanding any law to the contrary, the comptroller is 37 hereby authorized to transfer, on or before March 31, 2026, up to 38 $25,000,000 from various state bond funds (30600 through 30690) to the 39 general debt service fund (40150), for the purposes of redeeming or 40 defeasing outstanding state bonds. 41 § 32. Paragraph (a) of subdivision 2 of section 47-e of the private 42 housing finance law, as amended by section 29 of part XX of chapter 56 43 of the laws of 2024, is amended to read as follows: 44 (a) Subject to the provisions of chapter fifty-nine of the laws of two 45 thousand, in order to enhance and encourage the promotion of housing 46 programs and thereby achieve the stated purposes and objectives of such 47 housing programs, the agency shall have the power and is hereby author- 48 ized from time to time to issue negotiable housing program bonds and 49 notes in such principal amount as shall be necessary to provide suffi- 50 cient funds for the repayment of amounts disbursed (and not previously 51 reimbursed) pursuant to law or any prior year making capital appropri- 52 ations or reappropriations for the purposes of the housing program; 53 provided, however, that the agency may issue such bonds and notes in an 54 aggregate principal amount not exceeding [ fourteen billion five hundred 55 twenty-six million eighty-nine thousand dollars $14,526,089,000, plus a 56 principal amount of bonds issued to fund the debt service reserve fund S. 3006--C 158 A. 3006--C

1 in accordance with the debt service reserve fund requirement established 2 by the agency and to fund any other reserves that the agency reasonably 3 deems necessary for the security or marketability of such bonds and to 4 provide for the payment of fees and other charges and expenses, includ- 5 ing underwriters' discount, trustee and rating agency fees, bond insur- 6 ance, credit enhancement and liquidity enhancement related to the issu- 7 ance of such bonds and notes ] sixteen billion seven hundred 8 seventy-seven million nine hundred sixty-four thousand dollars 9 $16,777,964,000, excluding bonds issued after April first, two thousand 10 twenty-five to (i) fund one or more debt service reserve funds, (ii) pay 11 costs of issuance of such bonds, and (iii) refund or otherwise repay 12 such bonds or notes previously issued, provided that nothing herein 13 shall affect the exclusion of refunding debt issued prior to such date . 14 No reserve fund securing the housing program bonds shall be entitled or 15 eligible to receive state funds apportioned or appropriated to maintain 16 or restore such reserve fund at or to a particular level, except to the 17 extent of any deficiency resulting directly or indirectly from a failure 18 of the state to appropriate or pay the agreed amount under any of the 19 contracts provided for in subdivision four of this section. 20 § 33. Paragraph (b) of subdivision 1 of section 385 of the public 21 authorities law, as amended by section 30 of part XX of chapter 56 of 22 the laws of 2024, is amended to read as follows: 23 (b) The authority is hereby authorized, as additional corporate 24 purposes thereof solely upon the request of the director of the budget: 25 (i) to issue special emergency highway and bridge trust fund bonds and 26 notes for a term not to exceed thirty years and to incur obligations 27 secured by the moneys appropriated from the dedicated highway and bridge 28 trust fund established in section eighty-nine-b of the state finance 29 law; (ii) to make available the proceeds in accordance with instructions 30 provided by the director of the budget from the sale of such special 31 emergency highway and bridge trust fund bonds, notes or other obli- 32 gations, net of all costs to the authority in connection therewith, for 33 the purposes of financing all or a portion of the costs of activities 34 for which moneys in the dedicated highway and bridge trust fund estab- 35 lished in section eighty-nine-b of the state finance law are authorized 36 to be utilized or for the financing of disbursements made by the state 37 for the activities authorized pursuant to section eighty-nine-b of the 38 state finance law; and (iii) to enter into agreements with the commis- 39 sioner of transportation pursuant to section ten-e of the highway law 40 with respect to financing for any activities authorized pursuant to 41 section eighty-nine-b of the state finance law, or agreements with the 42 commissioner of transportation pursuant to sections ten-f and ten-g of 43 the highway law in connection with activities on state highways pursuant 44 to these sections, and (iv) to enter into service contracts, contracts, 45 agreements, deeds and leases with the director of the budget or the 46 commissioner of transportation and project sponsors and others to 47 provide for the financing by the authority of activities authorized 48 pursuant to section eighty-nine-b of the state finance law, and each of 49 the director of the budget and the commissioner of transportation are 50 hereby authorized to enter into service contracts, contracts, agree- 51 ments, deeds and leases with the authority, project sponsors or others 52 to provide for such financing. The authority shall not issue any bonds 53 or notes in an amount in excess of [ twenty-one billion four hundred 54 fifty-eight million three hundred nine thousand dollars $21,458,309,000 ] 55 twenty-two billion three hundred nine million two hundred ninety-four 56 thousand dollars $22,309,294,000 , plus a principal amount of bonds or S. 3006--C 159 A. 3006--C

1 notes: (A) to fund capital reserve funds; (B) to provide capitalized 2 interest; and, (C) to fund other costs of issuance. In computing for the 3 purposes of this subdivision, the aggregate amount of indebtedness 4 evidenced by bonds and notes of the authority issued pursuant to this 5 section, as amended by a chapter of the laws of nineteen hundred nine- 6 ty-six, there shall be excluded the amount of bonds or notes issued that 7 would constitute interest under the United States Internal Revenue Code 8 of 1986, as amended, and the amount of indebtedness issued to refund or 9 otherwise repay bonds or notes. 10 § 34. Paragraph (c) of subdivision 14 of section 1680 of the public 11 authorities law, as amended by section 31 of part XX of chapter 56 of 12 the laws of 2024, is amended to read as follows: 13 (c) Subject to the provisions of chapter fifty-nine of the laws of two 14 thousand, (i) the dormitory authority shall not deliver a series of 15 bonds for city university community college facilities, except to refund 16 or to be substituted for or in lieu of other bonds in relation to city 17 university community college facilities pursuant to a resolution of the 18 dormitory authority adopted before July first, nineteen hundred eighty- 19 five or any resolution supplemental thereto, if the principal amount of 20 bonds so to be issued when added to all principal amounts of bonds 21 previously issued by the dormitory authority for city university commu- 22 nity college facilities, except to refund or to be substituted in lieu 23 of other bonds in relation to city university community college facili- 24 ties will exceed the sum of four hundred twenty-five million dollars and 25 (ii) the dormitory authority shall not deliver a series of bonds issued 26 for city university facilities, including community college facilities, 27 pursuant to a resolution of the dormitory authority adopted on or after 28 July first, nineteen hundred eighty-five, except to refund or to be 29 substituted for or in lieu of other bonds in relation to city university 30 facilities and except for bonds issued pursuant to a resolution supple- 31 mental to a resolution of the dormitory authority adopted prior to July 32 first, nineteen hundred eighty-five, if the principal amount of bonds so 33 to be issued when added to the principal amount of bonds previously 34 issued pursuant to any such resolution, except bonds issued to refund or 35 to be substituted for or in lieu of other bonds in relation to city 36 university facilities, will exceed [ eleven billion seven hundred sixty- 37 three million twenty-two thousand dollars $11,763,022,000 ] twelve 38 billion three hundred million three hundred sixty-eight thousand dollars 39 $12,300,368,000, excluding bonds issued after April first, two thousand 40 twenty-five to (i) fund one or more debt service reserve funds, (ii) pay 41 costs of issuance of such bonds, and (iii) refund or otherwise repay 42 such bonds or notes previously issued, provided that nothing herein 43 shall affect the exclusion of refunding debt issued prior to such date . 44 The legislature reserves the right to amend or repeal such limit, and 45 the state of New York, the dormitory authority, the city university, and 46 the fund are prohibited from covenanting or making any other agreements 47 with or for the benefit of bondholders which might in any way affect 48 such right. 49 § 35. Subdivision 1 of section 1689-i of the public authorities law, 50 as amended by section 32 of part XX of chapter 56 of the laws of 2024, 51 is amended to read as follows: 52 1. The dormitory authority is authorized to issue bonds, at the 53 request of the commissioner of education, to finance eligible library 54 construction projects pursuant to section two hundred seventy-three-a of 55 the education law, in amounts certified by such commissioner not to S. 3006--C 160 A. 3006--C

1 exceed a total principal amount of [ four hundred eleven million dollars 2 $411,000,000 ] four hundred fifty-five million dollars $455,000,000 . 3 § 36. Paragraph (c) of subdivision 19 of section 1680 of the public 4 authorities law, as amended by section 33 of part XX of chapter 56 of 5 the laws of 2024, is amended to read as follows: 6 (c) Subject to the provisions of chapter fifty-nine of the laws of two 7 thousand, the dormitory authority shall not issue any bonds for state 8 university educational facilities purposes if the principal amount of 9 bonds to be issued when added to the aggregate principal amount of bonds 10 issued by the dormitory authority on and after July first, nineteen 11 hundred eighty-eight for state university educational facilities will 12 exceed [ eighteen billion nine hundred eighty-eight million one hundred 13 sixty-four thousand dollars $18,988,164,000; provided, however, that 14 bonds issued or to be issued shall be excluded from such limitation if: 15 (1) such bonds are issued to refund state university construction bonds 16 and state university construction notes previously issued by the housing 17 finance agency; or (2) such bonds are issued to refund bonds of the 18 authority or other obligations issued for state university educational 19 facilities purposes and the present value of the aggregate debt service 20 on the refunding bonds does not exceed the present value of the aggre- 21 gate debt service on the bonds refunded thereby; provided, further that 22 upon certification by the director of the budget that the issuance of 23 refunding bonds or other obligations issued between April first, nine- 24 teen hundred ninety-two and March thirty-first, nineteen hundred nine- 25 ty-three will generate long term economic benefits to the state, as 26 assessed on a present value basis, such issuance will be deemed to have 27 met the present value test noted above. For purposes of this subdivi- 28 sion, the present value of the aggregate debt service of the refunding 29 bonds and the aggregate debt service of the bonds refunded, shall be 30 calculated by utilizing the true interest cost of the refunding bonds, 31 which shall be that rate arrived at by doubling the semi-annual interest 32 rate (compounded semi-annually) necessary to discount the debt service 33 payments on the refunding bonds from the payment dates thereof to the 34 date of issue of the refunding bonds to the purchase price of the 35 refunding bonds, including interest accrued thereon prior to the issu- 36 ance thereof. The maturity of such bonds, other than bonds issued to 37 refund outstanding bonds, shall not exceed the weighted average economic 38 life, as certified by the state university construction fund, of the 39 facilities in connection with which the bonds are issued, and in any 40 case not later than the earlier of thirty years or the expiration of the 41 term of any lease, sublease or other agreement relating thereto; 42 provided that no note, including renewals thereof, shall mature later 43 than five years after the date of issuance of such note ] twenty billion 44 nine hundred forty-eight million one hundred sixty-four thousand dollars 45 $20,948,164,000, excluding bonds issued after April first, two thousand 46 twenty-five to (i) fund one or more debt service reserve funds, (ii) pay 47 costs of issuance of such bonds, and (iii) refund or otherwise repay 48 such bonds or notes previously issued, provided that nothing herein 49 shall affect the exclusion of refunding debt issued prior to such date . 50 The legislature reserves the right to amend or repeal such limit, and 51 the state of New York, the dormitory authority, the state university of 52 New York, and the state university construction fund are prohibited from 53 covenanting or making any other agreements with or for the benefit of 54 bondholders which might in any way affect such right. S. 3006--C 161 A. 3006--C

1 § 37. Subdivision 10-a of section 1680 of the public authorities law, 2 as amended by section 34 of part XX of chapter 56 of the laws of 2024, 3 is amended to read as follows: 4 10-a. Subject to the provisions of chapter fifty-nine of the laws of 5 two thousand, but notwithstanding any other provision of the law to the 6 contrary, the maximum amount of bonds and notes to be issued after March 7 thirty-first, two thousand two, on behalf of the state, in relation to 8 any locally sponsored community college, shall be [ one billion three 9 hundred sixty-five million three hundred eight thousand dollars 10 $1,365,308,000 ] one billion four hundred ninety-five million seven 11 hundred seventy-four thousand dollars $1,495,774,000 . Such amount shall 12 be exclusive of bonds and notes issued to fund any reserve fund or 13 funds, costs of issuance and to refund any outstanding bonds and notes, 14 issued on behalf of the state, relating to a locally sponsored community 15 college. 16 § 38. Paragraph b of subdivision 2 of section 9-a of section 1 of 17 chapter 392 of the laws of 1973, constituting the New York state medical 18 care facilities finance agency act, as amended by section 35 of part XX 19 of chapter 56 of the laws of 2024, is amended to read as follows: 20 b. The agency shall have power and is hereby authorized from time to 21 time to issue negotiable bonds and notes in conformity with applicable 22 provisions of the uniform commercial code in such principal amount as, 23 in the opinion of the agency, shall be necessary, after taking into 24 account other moneys which may be available for the purpose, to provide 25 sufficient funds to the facilities development corporation, or any 26 successor agency, for the financing or refinancing of or for the design, 27 construction, acquisition, reconstruction, rehabilitation or improvement 28 of mental health services facilities pursuant to paragraph a of this 29 subdivision, the payment of interest on mental health services improve- 30 ment bonds and mental health services improvement notes issued for such 31 purposes, the establishment of reserves to secure such bonds and notes, 32 the cost or premium of bond insurance or the costs of any financial 33 mechanisms which may be used to reduce the debt service that would be 34 payable by the agency on its mental health services facilities improve- 35 ment bonds and notes and all other expenditures of the agency incident 36 to and necessary or convenient to providing the facilities development 37 corporation, or any successor agency, with funds for the financing or 38 refinancing of or for any such design, construction, acquisition, recon- 39 struction, rehabilitation or improvement and for the refunding of mental 40 hygiene improvement bonds issued pursuant to section 47-b of the private 41 housing finance law; provided, however, that the agency shall not issue 42 mental health services facilities improvement bonds and mental health 43 services facilities improvement notes in an aggregate principal amount 44 exceeding [ twelve billion nine hundred twenty-one million seven hundred 45 fifty-six thousand dollars $12,921,756,000, excluding mental health 46 services facilities improvement bonds and mental health services facili- 47 ties improvement notes issued to refund outstanding mental health 48 services facilities improvement bonds and mental health services facili- 49 ties improvement notes; provided, however, that upon any such refunding 50 or repayment of mental health services facilities improvement bonds 51 and/or mental health services facilities improvement notes the total 52 aggregate principal amount of outstanding mental health services facili- 53 ties improvement bonds and mental health facilities improvement notes 54 may be greater than twelve billion nine hundred twenty-one million seven 55 hundred fifty-six thousand dollars $12,921,756,000, only if, except as 56 hereinafter provided with respect to mental health services facilities S. 3006--C 162 A. 3006--C

1 bonds and mental health services facilities notes issued to refund 2 mental hygiene improvement bonds authorized to be issued pursuant to the 3 provisions of section 47-b of the private housing finance law, the pres- 4 ent value of the aggregate debt service of the refunding or repayment 5 bonds to be issued shall not exceed the present value of the aggregate 6 debt service of the bonds to be refunded or repaid. For purposes hereof, 7 the present values of the aggregate debt service of the refunding or 8 repayment bonds, notes or other obligations and of the aggregate debt 9 service of the bonds, notes or other obligations so refunded or repaid, 10 shall be calculated by utilizing the effective interest rate of the 11 refunding or repayment bonds, notes or other obligations, which shall be 12 that rate arrived at by doubling the semi-annual interest rate 13 (compounded semi-annually) necessary to discount the debt service 14 payments on the refunding or repayment bonds, notes or other obligations 15 from the payment dates thereof to the date of issue of the refunding or 16 repayment bonds, notes or other obligations and to the price bid includ- 17 ing estimated accrued interest or proceeds received by the authority 18 including estimated accrued interest from the sale thereof. Such bonds, 19 other than bonds issued to refund outstanding bonds, shall be scheduled 20 to mature over a term not to exceed the average useful life, as certi- 21 fied by the facilities development corporation, of the projects for 22 which the bonds are issued, and in any case shall not exceed thirty 23 years and the maximum maturity of notes or any renewals thereof shall 24 not exceed five years from the date of the original issue of such notes. 25 Notwithstanding the provisions of this section, the agency shall have 26 the power and is hereby authorized to issue mental health services 27 facilities improvement bonds and/or mental health services facilities 28 improvement notes to refund outstanding mental hygiene improvement bonds 29 authorized to be issued pursuant to the provisions of section 47-b of 30 the private housing finance law and the amount of bonds issued or 31 outstanding for such purposes shall not be included for purposes of 32 determining the amount of bonds issued pursuant to this section ] thir- 33 teen billion six hundred thirty-nine million five hundred fifty-four 34 thousand dollars $13,639,554,000, excluding bonds issued after April 35 first, two thousand twenty-five to (i) fund one or more debt service 36 reserve funds, (ii) pay costs of issuance of such bonds, and (iii) 37 refund or otherwise repay such bonds or notes previously issued, 38 provided that nothing herein shall affect the exclusion of refunding 39 debt issued prior to such date . The director of the budget shall allo- 40 cate the aggregate principal authorized to be issued by the agency among 41 the office of mental health, office for people with developmental disa- 42 bilities, and the office of addiction services and supports, in consul- 43 tation with their respective commissioners to finance bondable appropri- 44 ations previously approved by the legislature. 45 § 39. Subdivision (a) of section 48 of part K of chapter 81 of the 46 laws of 2002, relating to providing for the administration of certain 47 funds and accounts related to the 2002-2003 budget, as amended by 48 section 36 of part XX of chapter 56 of the laws of 2024, is amended to 49 read as follows: 50 (a) Subject to the provisions of chapter 59 of the laws of 2000 but 51 notwithstanding the provisions of section 18 of the urban development 52 corporation act, the corporation is hereby authorized to issue bonds or 53 notes in one or more series in an aggregate principal amount not to 54 exceed [ five hundred twenty-two million five hundred thousand dollars 55 $522,500,000 ] five hundred fifty million five hundred thousand dollars 56 $550,500,000 , excluding bonds issued to fund one or more debt service S. 3006--C 163 A. 3006--C

1 reserve funds, to pay costs of issuance of such bonds, and bonds or 2 notes issued to refund or otherwise repay such bonds or notes previously 3 issued, for the purpose of financing capital costs related to homeland 4 security and training facilities for the division of state police, the 5 division of military and naval affairs, and any other state agency, 6 including the reimbursement of any disbursements made from the state 7 capital projects fund, and is hereby authorized to issue bonds or notes 8 in one or more series in an aggregate principal amount not to exceed 9 [ one billion eight hundred fifty-five million two hundred eighty-six 10 thousand dollars $1,855,286,000 ] two billion one hundred sixty-eight 11 million three hundred thirty-one thousand dollars $2,168,331,000 , 12 excluding bonds issued to fund one or more debt service reserve funds, 13 to pay costs of issuance of such bonds, and bonds or notes issued to 14 refund or otherwise repay such bonds or notes previously issued, for the 15 purpose of financing improvements to State office buildings and other 16 facilities located statewide, including the reimbursement of any 17 disbursements made from the state capital projects fund. Such bonds and 18 notes of the corporation shall not be a debt of the state, and the state 19 shall not be liable thereon, nor shall they be payable out of any funds 20 other than those appropriated by the state to the corporation for debt 21 service and related expenses pursuant to any service contracts executed 22 pursuant to subdivision (b) of this section, and such bonds and notes 23 shall contain on the face thereof a statement to such effect. 24 § 40. Subdivision 1 of section 47 of section 1 of chapter 174 of the 25 laws of 1968, constituting the New York state urban development corpo- 26 ration act, as amended by section 37 of part XX of chapter 56 of the 27 laws of 2024, is amended to read as follows: 28 1. Notwithstanding the provisions of any other law to the contrary, 29 the dormitory authority and the corporation are hereby authorized to 30 issue bonds or notes in one or more series for the purpose of funding 31 project costs for the office of information technology services, depart- 32 ment of law, and other state costs associated with such capital 33 projects. The aggregate principal amount of bonds authorized to be 34 issued pursuant to this section shall not exceed [ one billion seven 35 hundred forty-two million seven hundred twelve thousand dollars 36 $1,742,712,000 ] one billion eight hundred seventy-three million four 37 hundred twelve thousand dollars $1,873,412,000 , excluding bonds issued 38 to fund one or more debt service reserve funds, to pay costs of issuance 39 of such bonds, and bonds or notes issued to refund or otherwise repay 40 such bonds or notes previously issued. Such bonds and notes of the 41 dormitory authority and the corporation shall not be a debt of the 42 state, and the state shall not be liable thereon, nor shall they be 43 payable out of any funds other than those appropriated by the state to 44 the dormitory authority and the corporation for principal, interest, and 45 related expenses pursuant to a service contract and such bonds and notes 46 shall contain on the face thereof a statement to such effect. Except for 47 purposes of complying with the internal revenue code, any interest 48 income earned on bond proceeds shall only be used to pay debt service on 49 such bonds. 50 § 41. Subdivision (b) of section 11 of chapter 329 of the laws of 51 1991, amending the state finance law and other laws relating to the 52 establishment of the dedicated highway and bridge trust fund, as amended 53 by section 38 of part XX of chapter 56 of the laws of 2024, is amended 54 to read as follows: 55 (b) Any service contract or contracts for projects authorized pursuant 56 to sections 10-c, 10-f, 10-g and 80-b of the highway law and section S. 3006--C 164 A. 3006--C

1 14-k of the transportation law, and entered into pursuant to subdivision 2 (a) of this section, shall provide for state commitments to provide 3 annually to the thruway authority a sum or sums, upon such terms and 4 conditions as shall be deemed appropriate by the director of the budget, 5 to fund, or fund the debt service requirements of any bonds or any obli- 6 gations of the thruway authority issued to fund or to reimburse the 7 state for funding such projects having a cost not in excess of [ fourteen 8 billion eight hundred forty-four million five hundred eighty-seven thou- 9 sand dollars $14,844,587,000 cumulatively by the end of fiscal year 10 2024-25 ] fifteen billion eight hundred twenty-two million three hundred 11 eighty-four thousand dollars $15,822,384,000. Such limit shall exclude 12 bonds issued after April first, two thousand twenty-five to (i) fund one 13 or more debt service reserve funds, (ii) pay costs of issuance of such 14 bonds, and (iii) refund or otherwise repay such bonds or notes previous- 15 ly issued, provided that nothing herein shall affect the exclusion of 16 refunding debt issued prior to such date . For purposes of this subdivi- 17 sion, such projects shall be deemed to include capital grants to cities, 18 towns and villages for the reimbursement of eligible capital costs of 19 local highway and bridge projects within such municipality, where allo- 20 cations to cities, towns and villages are based on the total number of 21 New York or United States or interstate signed touring route miles for 22 which such municipality has capital maintenance responsibility, and 23 where such eligible capital costs include the costs of construction and 24 repair of highways, bridges, highway-railroad crossings, and other 25 transportation facilities for projects with a service life of ten years 26 or more. 27 § 42. Subdivision 1 of section 53 of section 1 of chapter 174 of the 28 laws of 1968, constituting the New York state urban development corpo- 29 ration act, as amended by section 39 of part XX of chapter 56 of the 30 laws of 2024, is amended to read as follows: 31 1. Notwithstanding the provisions of any other law to the contrary, 32 the dormitory authority and the urban development corporation are hereby 33 authorized to issue bonds or notes in one or more series for the purpose 34 of funding project costs for the acquisition of equipment, including but 35 not limited to the creation or modernization of information technology 36 systems and related research and development equipment, health and safe- 37 ty equipment, heavy equipment and machinery, the creation or improvement 38 of security systems, and laboratory equipment and other state costs 39 associated with such capital projects. The aggregate principal amount 40 of bonds authorized to be issued pursuant to this section shall not 41 exceed [ five hundred ninety-three million dollars $593,000,000 ] six 42 hundred ninety-three million dollars $693,000,000 , excluding bonds 43 issued to fund one or more debt service reserve funds, to pay costs of 44 issuance of such bonds, and bonds or notes issued to refund or otherwise 45 repay such bonds or notes previously issued. Such bonds and notes of the 46 dormitory authority and the urban development corporation shall not be a 47 debt of the state, and the state shall not be liable thereon, nor shall 48 they be payable out of any funds other than those appropriated by the 49 state to the dormitory authority and the urban development corporation 50 for principal, interest, and related expenses pursuant to a service 51 contract and such bonds and notes shall contain on the face thereof a 52 statement to such effect. Except for purposes of complying with the 53 internal revenue code, any interest income earned on bond proceeds shall 54 only be used to pay debt service on such bonds. S. 3006--C 165 A. 3006--C

1 § 43. Subdivision 3 of section 1285-p of the public authorities law, 2 as amended by section 40 of part XX of chapter 56 of the laws of 2024, 3 is amended to read as follows: 4 3. The maximum amount of bonds that may be issued for the purpose of 5 financing environmental infrastructure projects authorized by this 6 section shall be [ ten billion eight hundred sixty-six million five 7 hundred sixty thousand dollars $10,866,560,000 ] fourteen billion four 8 hundred eighty million eight hundred sixty thousand dollars 9 $14,480,860,000 , exclusive of bonds issued to fund any debt service 10 reserve funds, pay costs of issuance of such bonds, and bonds or notes 11 issued to refund or otherwise repay bonds or notes previously issued. 12 Such bonds and notes of the corporation shall not be a debt of the 13 state, and the state shall not be liable thereon, nor shall they be 14 payable out of any funds other than those appropriated by the state to 15 the corporation for debt service and related expenses pursuant to any 16 service contracts executed pursuant to subdivision one of this section, 17 and such bonds and notes shall contain on the face thereof a statement 18 to such effect. 19 § 44. Subdivision 1 and paragraph (a) of subdivision 2 of section 17 20 of part D of chapter 389 of the laws of 1997, relating to the financing 21 of the correctional facilities improvement fund and the youth facility 22 improvement fund, subdivision 1 as amended by section 41 of part XX of 23 chapter 56 of the laws of 2024, and paragraph (a) of subdivision 2 as 24 amended by section 20 of part P2 of chapter 62 of the laws of 2003, are 25 amended to read as follows: 26 1. Subject to the provisions of chapter 59 of the laws of 2000, but 27 notwithstanding the provisions of section 18 of section 1 of chapter 174 28 of the laws of 1968, the New York state urban development corporation is 29 hereby authorized to issue bonds, notes and other obligations in an 30 aggregate principal amount not to exceed [ one billion sixty-six million 31 seven hundred fifty-five thousand dollars $1,066,755,000, which ] one 32 billion two hundred seventeen million seven hundred fifty-five thousand 33 dollars $1,217,755,000, excluding bonds issued after April first, two 34 thousand twenty-five to (a) fund one or more debt service reserve funds, 35 (b) to pay costs of issuance of such bonds, and (c) refund or otherwise 36 repay such bonds or notes previously issued, provided that nothing here- 37 in shall affect the exclusion of refunding debt issued prior to such 38 date. Which authorization increases the aggregate principal amount of 39 bonds, notes and other obligations authorized by section 40 of chapter 40 309 of the laws of 1996, and shall include all bonds, notes and other 41 obligations issued pursuant to chapter 211 of the laws of 1990, as 42 amended or supplemented. The proceeds of such bonds, notes or other 43 obligations shall be paid to the state, for deposit in the youth facili- 44 ties improvement fund or the capital projects fund, to pay for all or 45 any portion of the amount or amounts paid by the state from appropri- 46 ations or reappropriations made to the office of children and family 47 services from the youth facilities improvement fund or the capital 48 projects fund for capital projects. [ The aggregate amount of bonds, 49 notes and other obligations authorized to be issued pursuant to this 50 section shall exclude bonds, notes or other obligations issued to refund 51 or otherwise repay bonds, notes or other obligations theretofore issued, 52 the proceeds of which were paid to the state for all or a portion of the 53 amounts expended by the state from appropriations or reappropriations 54 made to the office of children and family services; provided, however, 55 that upon any such refunding or repayment the total aggregate principal 56 amount of outstanding bonds, notes or other obligations may be greater S. 3006--C 166 A. 3006--C

1 than one billion sixty-six million seven hundred fifty-five thousand 2 dollars $1,066,755,000, only if the present value of the aggregate debt 3 service of the refunding or repayment bonds, notes or other obligations 4 to be issued shall not exceed the present value of the aggregate debt 5 service of the bonds, notes or other obligations so to be refunded or 6 repaid. For the purposes hereof, the present value of the aggregate debt 7 service of the refunding or repayment bonds, notes or other obligations 8 and of the aggregate debt service of the bonds, notes or other obli- 9 gations so refunded or repaid, shall be calculated by utilizing the 10 effective interest rate of the refunding or repayment bonds, notes or 11 other obligations, which shall be that rate arrived at by doubling the 12 semi-annual interest rate (compounded semi-annually) necessary to 13 discount the debt service payments on the refunding or repayment bonds, 14 notes or other obligations from the payment dates thereof to the date of 15 issue of the refunding or repayment bonds, notes or other obligations 16 and to the price bid including estimated accrued interest or proceeds 17 received by the corporation including estimated accrued interest from 18 the sale thereof. ] 19 (a) The New York state office of general services shall be responsible 20 for the undertaking of studies, planning, site acquisition, design, 21 construction, reconstruction, renovation and development of youth facil- 22 ities and the Tonawanda Indian Community House , including the making of 23 any purchases therefor, on behalf of the New York state office of chil- 24 dren and family services. 25 § 45. Subdivision 1 of section 386-b of the public authorities law, as 26 amended by section 42 of part XX of chapter 56 of the laws of 2024, is 27 amended to read as follows: 28 1. Notwithstanding any other provision of law to the contrary, the 29 authority, the dormitory authority and the urban development corporation 30 are hereby authorized to issue bonds or notes in one or more series for 31 the purpose of financing peace bridge projects and capital costs of 32 state and local highways, parkways, bridges, the New York state thruway, 33 Indian reservation roads, and facilities, and transportation infrastruc- 34 ture projects including aviation projects, non-MTA mass transit 35 projects, and rail service preservation projects, including work appur- 36 tenant and ancillary thereto. The aggregate principal amount of bonds 37 authorized to be issued pursuant to this section shall not exceed 38 [ fifteen billion two hundred forty million six hundred sixty-nine thou- 39 sand dollars $15,240,669,000 ] seventeen billion thirty million twenty- 40 seven thousand dollars $17,030,027,000 , excluding bonds issued to fund 41 one or more debt service reserve funds, to pay costs of issuance of such 42 bonds, and to refund or otherwise repay such bonds or notes previously 43 issued. Such bonds and notes of the authority, the dormitory authority 44 and the urban development corporation shall not be a debt of the state, 45 and the state shall not be liable thereon, nor shall they be payable out 46 of any funds other than those appropriated by the state to the authori- 47 ty, the dormitory authority and the urban development corporation for 48 principal, interest, and related expenses pursuant to a service contract 49 and such bonds and notes shall contain on the face thereof a statement 50 to such effect. Except for purposes of complying with the internal 51 revenue code, any interest income earned on bond proceeds shall only be 52 used to pay debt service on such bonds. 53 § 46. Subdivision 1 of section 44 of section 1 of chapter 174 of the 54 laws of 1968, constituting the New York state urban development corpo- 55 ration act, as amended by section 43 of part XX of chapter 56 of the 56 laws of 2024, is amended to read as follows: S. 3006--C 167 A. 3006--C

1 1. Notwithstanding the provisions of any other law to the contrary, 2 the dormitory authority and the corporation are hereby authorized to 3 issue bonds or notes in one or more series for the purpose of funding 4 project costs for the regional economic development council initiative, 5 the economic transformation program, state university of New York 6 college for nanoscale and science engineering, projects within the city 7 of Buffalo or surrounding environs, the New York works economic develop- 8 ment fund, projects for the retention of professional football in west- 9 ern New York, the empire state economic development fund, the clarkson- 10 trudeau partnership, the New York genome center, the Cornell university 11 college of veterinary medicine, the olympic regional development author- 12 ity, projects at nano Utica, Onondaga county revitalization projects, 13 Binghamton university school of pharmacy, New York power electronics 14 manufacturing consortium, regional infrastructure projects, high tech 15 innovation and economic development infrastructure program, high tech- 16 nology manufacturing projects in Chautauqua and Erie county, an indus- 17 trial scale research and development facility in Clinton county, upstate 18 revitalization initiative projects, downstate revitalization initiative, 19 market New York projects, fairground buildings, equipment or facilities 20 used to house and promote agriculture, the state fair, the empire state 21 trail, the moynihan station development project, the Kingsbridge armory 22 project, strategic economic development projects, the cultural, arts and 23 public spaces fund, water infrastructure in the city of Auburn and town 24 of Owasco, a life sciences laboratory public health initiative, not-for- 25 profit pounds, shelters and humane societies, arts and cultural facili- 26 ties improvement program, restore New York's communities initiative, 27 heavy equipment, economic development and infrastructure projects, 28 Roosevelt Island operating corporation capital projects, Lake Ontario 29 regional projects, Pennsylvania station and other transit projects, 30 athletic facilities for professional football in Orchard Park, New York, 31 Rush - NY, New York AI Consortium, New York Creates UEV Tool, and other 32 state costs associated with such projects. The aggregate principal 33 amount of bonds authorized to be issued pursuant to this section shall 34 not exceed [ twenty billion eight hundred seventy-eight million one 35 hundred ninety-four thousand dollars $20,878,194,000 ] twenty-three 36 billion seven hundred five million two hundred fifty-three thousand 37 dollars $23,705,253,000 , excluding bonds issued to fund one or more debt 38 service reserve funds, to pay costs of issuance of such bonds, and bonds 39 or notes issued to refund or otherwise repay such bonds or notes previ- 40 ously issued. Such bonds and notes of the dormitory authority and the 41 corporation shall not be a debt of the state, and the state shall not be 42 liable thereon, nor shall they be payable out of any funds other than 43 those appropriated by the state to the dormitory authority and the 44 corporation for principal, interest, and related expenses pursuant to a 45 service contract and such bonds and notes shall contain on the face 46 thereof a statement to such effect. Except for purposes of complying 47 with the internal revenue code, any interest income earned on bond 48 proceeds shall only be used to pay debt service on such bonds. 49 § 47. Subdivision (a) of section 28 of part Y of chapter 61 of the 50 laws of 2005, relating to providing for the administration of certain 51 funds and accounts related to the 2005-2006 budget, as amended by 52 section 44 of part XX of chapter 56 of the laws of 2024, is amended to 53 read as follows: 54 (a) Subject to the provisions of chapter 59 of the laws of 2000, but 55 notwithstanding any provisions of law to the contrary, one or more 56 authorized issuers as defined by section 68-a of the state finance law S. 3006--C 168 A. 3006--C

1 are hereby authorized to issue bonds or notes in one or more series in 2 an aggregate principal amount not to exceed [ two hundred ninety-seven 3 million dollars $297,000,000 ] three hundred ninety-seven million dollars 4 $397,000,000 , excluding bonds issued to finance one or more debt service 5 reserve funds, to pay costs of issuance of such bonds, and bonds or 6 notes issued to refund or otherwise repay such bonds or notes previously 7 issued, for the purpose of financing capital projects for public 8 protection facilities in the Division of Military and Naval Affairs, 9 debt service and leases; and to reimburse the state general fund for 10 disbursements made therefor. Such bonds and notes of such authorized 11 issuer shall not be a debt of the state, and the state shall not be 12 liable thereon, nor shall they be payable out of any funds other than 13 those appropriated by the state to such authorized issuer for debt 14 service and related expenses pursuant to any service contract executed 15 pursuant to subdivision (b) of this section and such bonds and notes 16 shall contain on the face thereof a statement to such effect. Except for 17 purposes of complying with the internal revenue code, any interest 18 income earned on bond proceeds shall only be used to pay debt service on 19 such bonds. 20 § 48. Subdivision 1 of section 50 of section 1 of chapter 174 of the 21 laws of 1968, constituting the New York state urban development corpo- 22 ration act, as amended by section 45 of part XX of chapter 56 of the 23 laws of 2024, is amended to read as follows: 24 1. Notwithstanding the provisions of any other law to the contrary, 25 the dormitory authority and the urban development corporation are hereby 26 authorized to issue bonds or notes in one or more series for the purpose 27 of funding project costs undertaken by or on behalf of the state educa- 28 tion department, special act school districts, state-supported schools 29 for the blind and deaf, approved private special education schools, 30 non-public schools, community centers, day care facilities, residential 31 camps, day camps, Native American Indian Nation schools, and other state 32 costs associated with such capital projects. The aggregate principal 33 amount of bonds authorized to be issued pursuant to this section shall 34 not exceed [ three hundred ninety-six million eight hundred ninety-eight 35 thousand dollars $396,898,000 ] four hundred forty million three hundred 36 ninety-seven thousand dollars $440,397,000 , excluding bonds issued to 37 fund one or more debt service reserve funds, to pay costs of issuance of 38 such bonds, and bonds or notes issued to refund or otherwise repay such 39 bonds or notes previously issued. Such bonds and notes of the dormitory 40 authority and the urban development corporation shall not be a debt of 41 the state, and the state shall not be liable thereon, nor shall they be 42 payable out of any funds other than those appropriated by the state to 43 the dormitory authority and the urban development corporation for prin- 44 cipal, interest, and related expenses pursuant to a service contract and 45 such bonds and notes shall contain on the face thereof a statement to 46 such effect. Except for purposes of complying with the internal revenue 47 code, any interest income earned on bond proceeds shall only be used to 48 pay debt service on such bonds. 49 § 49. Subdivision 1 of section 1680-k of the public authorities law, 50 as amended by section 46 of part XX of chapter 56 of the laws of 2024, 51 is amended to read as follows: 52 1. Subject to the provisions of chapter fifty-nine of the laws of two 53 thousand, but notwithstanding any provisions of law to the contrary, the 54 dormitory authority is hereby authorized to issue bonds or notes in one 55 or more series in an aggregate principal amount not to exceed [ forty-one 56 million sixty thousand dollars $41,060,000 ] forty-one million one S. 3006--C 169 A. 3006--C

1 hundred seventy-five thousand dollars $41,175,000 , excluding bonds 2 issued to finance one or more debt service reserve funds, to pay costs 3 of issuance of such bonds, and bonds or notes issued to refund or other- 4 wise repay such bonds or notes previously issued, for the purpose of 5 financing the construction of the New York state agriculture and markets 6 food laboratory. Eligible project costs may include, but not be limited 7 to the cost of design, financing, site investigations, site acquisition 8 and preparation, demolition, construction, rehabilitation, acquisition 9 of machinery and equipment, and infrastructure improvements. Such bonds 10 and notes of such authorized issuers shall not be a debt of the state, 11 and the state shall not be liable thereon, nor shall they be payable out 12 of any funds other than those appropriated by the state to such author- 13 ized issuers for debt service and related expenses pursuant to any 14 service contract executed pursuant to subdivision two of this section 15 and such bonds and notes shall contain on the face thereof a statement 16 to such effect. Except for purposes of complying with the internal 17 revenue code, any interest income earned on bond proceeds shall only be 18 used to pay debt service on such bonds. 19 § 50. Subdivision 1 of section 1680-r of the public authorities law, 20 as amended by section 46 of part PP of chapter 56 of the laws of 2023, 21 is amended to read as follows: 22 1. Notwithstanding the provisions of any other law to the contrary, 23 the dormitory authority and the urban development corporation are hereby 24 authorized to issue bonds or notes in one or more series for the purpose 25 of funding project costs for the capital restructuring financing program 26 for health care and related facilities licensed pursuant to the public 27 health law or the mental hygiene law and other state costs associated 28 with such capital projects, the health care facility transformation 29 programs, the essential health care provider program, and other health 30 care capital project costs. The aggregate principal amount of bonds 31 authorized to be issued pursuant to this section shall not exceed [ five 32 billion one hundred fifty-three million dollars $5,153,000,000 ] six 33 billion one hundred sixty-eight million dollars $6,168,000,000 , exclud- 34 ing bonds issued to fund one or more debt service reserve funds, to pay 35 costs of issuance of such bonds, and bonds or notes issued to refund or 36 otherwise repay such bonds or notes previously issued. Such bonds and 37 notes of the dormitory authority and the urban development corporation 38 shall not be a debt of the state, and the state shall not be liable 39 thereon, nor shall they be payable out of any funds other than those 40 appropriated by the state to the dormitory authority and the urban 41 development corporation for principal, interest, and related expenses 42 pursuant to a service contract and such bonds and notes shall contain on 43 the face thereof a statement to such effect. Except for purposes of 44 complying with the internal revenue code, any interest income earned on 45 bond proceeds shall only be used to pay debt service on such bonds. 46 § 51. Subdivision 1 of section 386-a of the public authorities law, as 47 amended by section 55 of part XX of chapter 56 of the laws of 2024, is 48 amended to read as follows: 49 1. Notwithstanding any other provision of law to the contrary, the 50 authority, the dormitory authority and the urban development corporation 51 are hereby authorized to issue bonds or notes in one or more series for 52 the purpose of assisting the metropolitan transportation authority in 53 the financing of transportation facilities as defined in subdivision 54 seventeen of section twelve hundred sixty-one of this chapter or other 55 capital projects. The aggregate principal amount of bonds authorized to 56 be issued pursuant to this section shall not exceed [ twelve billion five S. 3006--C 170 A. 3006--C

1 hundred fifteen million eight hundred fifty-six thousand dollars 2 $12,515,856,000 ] fifteen billion five hundred fifteen million eight 3 hundred fifty-six thousand dollars $15,515,856,000 , excluding bonds 4 issued to fund one or more debt service reserve funds, to pay costs of 5 issuance of such bonds, and to refund or otherwise repay such bonds or 6 notes previously issued. Such bonds and notes of the authority, the 7 dormitory authority and the urban development corporation shall not be a 8 debt of the state, and the state shall not be liable thereon, nor shall 9 they be payable out of any funds other than those appropriated by the 10 state to the authority, the dormitory authority and the urban develop- 11 ment corporation for principal, interest, and related expenses pursuant 12 to a service contract and such bonds and notes shall contain on the face 13 thereof a statement to such effect. Except for purposes of complying 14 with the internal revenue code, any interest income earned on bond 15 proceeds shall only be used to pay debt service on such bonds. Notwith- 16 standing any other provision of law to the contrary, including the limi- 17 tations contained in subdivision four of section sixty-seven-b of the 18 state finance law, (A) any bonds and notes issued prior to April first, 19 two thousand twenty-seven pursuant to this section may be issued with a 20 maximum maturity of fifty years, and (B) any bonds issued to refund such 21 bonds and notes may be issued with a maximum maturity of fifty years 22 from the respective date of original issuance of such bonds and notes. 23 § 52. Subdivision (a) of section 27 of part Y of chapter 61 of the 24 laws of 2005, relating to providing for the administration of certain 25 funds and accounts related to the 2005-2006 budget, as amended by 26 section 28 of part PP of chapter 56 of the laws of 2023, is amended to 27 read as follows: 28 (a) Subject to the provisions of chapter 59 of the laws of 2000, but 29 notwithstanding any provisions of law to the contrary, the urban devel- 30 opment corporation is hereby authorized to issue bonds or notes in one 31 or more series in an aggregate principal amount not to exceed [ five 32 hundred thirty-eight million one hundred thousand dollars $538,100,000 ] 33 five hundred fifty million one hundred thousand dollars $550,100,000 , 34 excluding bonds issued to finance one or more debt service reserve 35 funds, to pay costs of issuance of such bonds, and bonds or notes issued 36 to refund or otherwise repay such bonds or notes previously issued, for 37 the purpose of financing capital projects including IT initiatives for 38 the division of state police, debt service and leases; and to reimburse 39 the state general fund for disbursements made therefor. Such bonds and 40 notes of such authorized issuer shall not be a debt of the state, and 41 the state shall not be liable thereon, nor shall they be payable out of 42 any funds other than those appropriated by the state to such authorized 43 issuer for debt service and related expenses pursuant to any service 44 contract executed pursuant to subdivision (b) of this section and such 45 bonds and notes shall contain on the face thereof a statement to such 46 effect. Except for purposes of complying with the internal revenue code, 47 any interest income earned on bond proceeds shall only be used to pay 48 debt service on such bonds. 49 § 53. Subdivision 1 of section 16 of part D of chapter 389 of the laws 50 of 1997, relating to the financing of the correctional facilities 51 improvement fund and the youth facility improvement fund, as amended by 52 section 28 of part XX of chapter 56 of the laws of 2024, is amended to 53 read as follows: 54 1. Subject to the provisions of chapter 59 of the laws of 2000, but 55 notwithstanding the provisions of section 18 of section 1 of chapter 174 56 of the laws of 1968, the New York state urban development corporation is S. 3006--C 171 A. 3006--C

1 hereby authorized to issue bonds, notes and other obligations in an 2 aggregate principal amount not to exceed [ ten billion two hundred nine- 3 ty-nine million three hundred fifty-nine thousand dollars 4 $10,299,359,000, and shall include all bonds, notes and other obli- 5 gations issued pursuant to chapter 56 of the laws of 1983, as amended or 6 supplemented. The proceeds of such bonds, notes or other obligations 7 shall be paid to the state, for deposit in the correctional facilities 8 capital improvement fund to pay for all or any portion of the amount or 9 amounts paid by the state from appropriations or reappropriations made 10 to the department of corrections and community supervision from the 11 correctional facilities capital improvement fund for capital projects. 12 The aggregate amount of bonds, notes or other obligations authorized to 13 be issued pursuant to this section shall exclude bonds, notes or other 14 obligations issued to refund or otherwise repay bonds, notes or other 15 obligations theretofore issued, the proceeds of which were paid to the 16 state for all or a portion of the amounts expended by the state from 17 appropriations or reappropriations made to the department of corrections 18 and community supervision; provided, however, that upon any such refund- 19 ing or repayment the total aggregate principal amount of outstanding 20 bonds, notes or other obligations may be greater than ten billion two 21 hundred ninety-nine million three hundred fifty-nine thousand dollars 22 $10,299,359,000, only if the present value of the aggregate debt service 23 of the refunding or repayment bonds, notes or other obligations to be 24 issued shall not exceed the present value of the aggregate debt service 25 of the bonds, notes or other obligations so to be refunded or repaid. 26 For the purposes hereof, the present value of the aggregate debt service 27 of the refunding or repayment bonds, notes or other obligations and of 28 the aggregate debt service of the bonds, notes or other obligations so 29 refunded or repaid, shall be calculated by utilizing the effective 30 interest rate of the refunding or repayment bonds, notes or other obli- 31 gations, which shall be that rate arrived at by doubling the semi-annual 32 interest rate (compounded semi-annually) necessary to discount the debt 33 service payments on the refunding or repayment bonds, notes or other 34 obligations from the payment dates thereof to the date of issue of the 35 refunding or repayment bonds, notes or other obligations and to the 36 price bid including estimated accrued interest or proceeds received by 37 the corporation including estimated accrued interest from the sale ther- 38 eof ] eleven billion one hundred seventeen million three hundred fifty- 39 nine thousand dollars $11,117,359,000, excluding bonds issued after 40 April first, two thousand twenty-five to (i) fund one or more debt 41 service reserve funds, (ii) pay costs of issuance of such bonds, and 42 (iii) refund or otherwise repay such bonds or notes previously issued, 43 provided that nothing herein shall affect the exclusion of refunding 44 debt issued prior to such date . 45 § 54. The opening paragraph of section 3573 of the public authorities 46 law, as added by chapter 5 of the laws of 1997, is amended to read as 47 follows: 48 Notwithstanding any provision of this article or any other provision 49 of law to the contrary, so long as bonds issued by the dormitory author- 50 ity [ to finance facilities for ] on or before March thirty-first, two 51 thousand twenty-five to make loans to the department of health of the 52 state of New York to finance state hospital facilities listed in section 53 four hundred three of the public health law remain outstanding as 54 defined in the bond resolution under which such bonds were issued, the 55 following provisions shall be applicable: S. 3006--C 172 A. 3006--C

1 § 55. Paragraph (a) of subdivision 2 of section 409 of the public 2 health law, as amended by chapter 5 of the laws of 1997, is amended and 3 a new subdivision 6 is added to read as follows: 4 (a) The commissioner shall, after the first day of July, nineteen 5 hundred seventy-one, pay over moneys received by the department includ- 6 ing , subject to subdivision six of this section, moneys received from 7 the Roswell Park Cancer Institute corporation for the care, maintenance 8 and treatment of patients at state hospitals in the department as 9 enumerated in section four hundred three of this chapter, together with 10 money received from fees, including parking fees, refunds, reimburse- 11 ments, payments received pursuant to leases, sales of property and 12 miscellaneous receipts of such hospitals other than gifts, grants, 13 bequests and moneys received under research contracts, and clinical 14 practice income received pursuant to a clinical practice plan estab- 15 lished pursuant to subdivision fourteen of section two hundred six of 16 this chapter except for the amount of money required by the comptroller 17 to be maintained on deposit in the department of health income fund 18 pursuant to paragraph (c) of this subdivision less payments required to 19 be made into pools created by this chapter and for assessments estab- 20 lished pursuant to this chapter and less refunds made pursuant to law, 21 to the comptroller to be deposited by [ him ] the comptroller in the 22 department of health income fund. Such moneys shall be kept separate and 23 shall not be commingled with any other moneys in the hands of the comp- 24 troller. All deposits of such money shall, if required by the comp- 25 troller, be secured by obligations of the United States or of the state 26 of market value equal at all times to the amount of the deposit and all 27 banks and trust companies are authorized to give such securities for 28 such deposits. The commissioner shall identify to the comptroller moneys 29 received from Roswell Park Cancer Institute corporation or its subsid- 30 iaries. 31 6. Notwithstanding the foregoing provisions of this section, upon the 32 payment or provision for payment of all outstanding bonds issued on or 33 before March thirty-first, two thousand twenty-five by the dormitory 34 authority to make loans to the department to finance or refinance state 35 hospital facilities in accordance with the terms of the bond resolution 36 under which such bonds were issued, the provisions of subdivisions two 37 and five of this section requiring (i) the payment and identification by 38 the department to the comptroller of moneys received from the Roswell 39 Park Cancer Institute corporation, (ii) the deposit and maintenance of 40 such moneys from the Roswell Park Cancer Institute corporation by the 41 comptroller in the department of health income fund, and (iii) the 42 release of excess moneys in the department of health income fund attri- 43 buted to the operation of the Roswell Park Cancer Institute corporation 44 or its subsidiaries, shall no longer be applicable and, thereafter, all 45 such moneys from the operation of the Roswell Park Cancer Institute 46 corporation shall remain in the custody and/or control of the corpo- 47 ration and/or its subsidiaries. 48 § 56. Paragraph (b) of subdivision 1 of section 54-b of section 1 of 49 chapter 174 of the laws of 1968 constituting the urban development 50 corporation act, as amended by section 54 of part XX of chapter 56 of 51 the laws of 2024, is amended to read as follows: 52 (b) Notwithstanding any other provision of law to the contrary, 53 including, specifically, the provisions of chapter 59 of the laws of 54 2000 and section sixty-seven-b of the state finance law, the dormitory 55 authority of the state of New York and the corporation are hereby 56 authorized to issue personal income tax revenue anticipation notes with S. 3006--C 173 A. 3006--C

1 a maturity no later than March 31, [ 2025 ] 2026 , in one or more series in 2 an aggregate principal amount for each fiscal year not to exceed three 3 billion dollars, and to pay costs of issuance of such notes, for the 4 purpose of temporarily financing budgetary needs of the state. Such 5 purpose shall constitute an authorized purpose under subdivision two of 6 section sixty-eight-a of the state finance law for all purposes of arti- 7 cle five-C of the state finance law with respect to the notes authorized 8 by this paragraph. Such notes shall not be renewed, extended or 9 refunded. For so long as any notes authorized by this paragraph shall be 10 outstanding, the restrictions, limitations and requirements contained in 11 article five-B of the state finance law shall not apply. 12 § 57. Subdivision 8 of section 68-b of the state finance law, as 13 amended by section 60 of part JJJ of chapter 59 of the laws of 2021, is 14 amended to read as follows: 15 8. Revenue bonds may only be issued for authorized purposes, as 16 defined in section sixty-eight-a of this article. Notwithstanding the 17 foregoing, the dormitory authority of the state of New York, the urban 18 development corporation and the New York state thruway authority may 19 issue revenue bonds for any authorized purpose of any other such author- 20 ized issuer through March thirty-first, two thousand [ twenty-five ] thir- 21 ty . Any such revenue bonds issued by the New York state thruway authori- 22 ty shall be subject to the approval of the New York state public 23 authorities control board, pursuant to section fifty-one of the public 24 authorities law. The authorized issuers shall not issue any revenue 25 bonds in an amount in excess of statutory authorizations for such 26 authorized purposes. Authorizations for such authorized purposes shall 27 be reduced in an amount equal to the amount of revenue bonds issued for 28 such authorized purposes under this article. Such reduction shall not be 29 made in relation to revenue bonds issued to fund reserve funds, if any, 30 and costs of issuance, [ if these items are not counted under existing 31 authorizations, ] nor shall revenue bonds issued to refund bonds issued 32 under existing authorizations reduce the amount of such authorizations. 33 § 58. Section 93-a of the state finance law is REPEALED. 34 § 59. Section 46 of section 1 of chapter 174 of the laws of 1968, 35 constituting the New York state urban development corporation act, is 36 REPEALED. 37 § 60. This act shall take effect immediately and shall be deemed to 38 have been in full force and effect on and after April 1, 2025; provided, 39 however, that the provisions of sections one, two, three, four, five, 40 six, seven, eight, thirteen, fourteen, fifteen, sixteen, seventeen, 41 eighteen, nineteen, twenty and twenty-one of this act shall expire March 42 31, 2026. 43 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 44 sion, section or part of this act shall be adjudged by any court of 45 competent jurisdiction to be invalid, such judgment shall not affect, 46 impair, or invalidate the remainder thereof, but shall be confined in 47 its operation to the clause, sentence, paragraph, subdivision, section 48 or part thereof directly involved in the controversy in which such judg- 49 ment shall have been rendered. It is hereby declared to be the intent of 50 the legislature that this act would have been enacted even if such 51 invalid provisions had not been included herein. 52 § 3. This act shall take effect immediately provided, however, that 53 the applicable effective date of Parts A through MM of this act shall be 54 as specifically set forth in the last section of such Parts.

STATE OF NEW YORK ________________________________________________________________________

S. 3009--C A. 3009--C SENATE - ASSEMBLY January 22, 2025 ___________

IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to the inflation refund credit (Part A); to amend the tax law, in relation to providing for a middle-class tax cut and extending the temporary personal income tax high income surcharge (Part B); to amend the tax law, in relation to enhancing the empire state child credit for three years (Part C); to amend the public housing law, in relation to certain eligibility for the New York state low income housing tax credit program and increases to the aggregate amount of the allocable tax credit (Part D); to amend the tax law, in relation to credits for the rehabilitation of historic properties (Part E); to amend the real property law, in relation to the purchase of residential real property by certain purchasers (Subpart A); to amend the tax law, in relation to depreciation and interest deduction adjustments for properties owned by institutional investors in residential properties (Subpart B); and to amend the real property law, in relation to public notice of real property solicita- tion cease and desist zones (Subpart C) (Part F); intentionally omit- ted (Part G); to amend the economic development law and the tax law, in relation to the excelsior jobs program; and to repeal article 22 of the economic development law relating to the employee training incen- tive program (Subpart A); and to amend the economic development law,

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-05-5 S. 3009--C 2 A. 3009--C

in relation to the empire state jobs retention program (Subpart B) (Part H); to amend the tax law, in relation to film production and post-production credits (Part I); to amend the economic development law and the tax law, in relation to the newspaper and broadcast media jobs program (Part J); to amend the tax law, in relation to the empire state digital gaming media production credit (Part K); to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establish- ing the New York state council on the arts cultural program fund, in relation to the effectiveness thereof; and to amend the tax law, in relation to the New York city musical and theatrical production tax credit (Part L); to amend the tax law, in relation to clarifying the notices afforded protest rights (Part M); to amend the tax law, in relation to the filing of tax warrants and warrant-related records (Part N); to amend the real property tax law and the tax law, in relation to simplifying STAR income determinations; and to repeal certain provisions of such laws relating thereto (Part O); inten- tionally omitted (Part P); intentionally omitted (Part Q); to amend the tax law, in relation to increasing the estimated tax threshold under article nine-A of the tax law (Part R); to amend the tax law, in relation to establishing a tax credit for organ donation (Part S); to amend the tax law, in relation to extending the estate tax three-year gift addback rule (Part T); amend the tax law, in relation to expand- ing the credit for employment of persons with disabilities (Part U); to amend the tax law, in relation to reporting of federal partnership adjustments (Subpart A); and to amend the administrative code of the city of New York, in relation to reporting of federal partnership adjustments (Subpart B) (Part V); to amend the tax law and the admin- istrative code of the city of New York, in relation to establishing a credit against the tax on personal income of certain residents of a city having a population of one million or more inhabitants (Part W); intentionally omitted (Part X); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part Y); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging property credit for three years (Part Z); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vending machines (Part AA); to amend the labor law, in relation to extending the workers with disabilities tax credit (Part BB); to amend the tax law, in relation to extending the hire a vet credit (Part CC); to amend part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatri- cal production credit, in relation to the effectiveness thereof (Part DD); to amend part U of chapter 59 of the laws of 2017, amending the tax law, relating to the financial institution data match system for state tax collection purposes, in relation to extending the effective- ness thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to simplifying the pari-mutuel tax rate system; and to repeal section 908 of the racing, pari-mutuel wagering and breeding law relating thereto (Subpart A); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of- state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, in relation to S. 3009--C 3 A. 3009--C

the effectiveness thereof; and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Subpart B); and to amend the racing, pari-mutuel wagering and breeding law and the state finance law, in relation to market origin credits and fees (Subpart C)(Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the tax on gaming revenues in certain regions; to amend part OOO of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law relating to the tax on gaming revenues, in relation to the effectiveness thereof; and providing for the repeal of certain provisions upon expiration thereof (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Capital off-track betting corpo- rations' capital acquisition funds (Part HH); to amend the racing, pari-mutuel wagering and breeding law, in relation to enhancing the health and safety of thoroughbred horses; and providing for the repeal of such provisions upon expiration thereof (Part II); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extend- ing the provisions thereof (Part JJ); to amend the agriculture and markets law and the tax law, in relation to the farm employer overtime credit (Part KK); to amend part H of chapter 59 of the laws of 2024 amending the tax law relating to the filing of amended returns under article 28 thereof, in relation to making technical corrections there- to (Part LL); to amend the tax law, in relation to vendor fees paid to certain vendor tracks; and providing for the repeal of such provisions upon expiration thereof (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to members of the franchised corporation appointed by the New York racing association (Part NN); to amend the racing, pari-mutuel wagering and breeding law, in relation to mobile sports tax revenue be used for problem gambling (Part OO); to extend the duration of certain brownfield redevelopment and remedi- ation tax credits for certain sites (Part PP); to amend the tax law, in relation to the relief from sales tax liability provided to certain limited partners and members of limited liability companies (Part QQ); to amend the tax law, in relation to simplifying the property tax credit; and to repeal certain provisions of such law relating thereto (Part RR); to amend the tax law, in relation to authorizing an occu- pancy tax in the city of Auburn; and providing for the repeal of such provisions upon expiration thereof (Part SS); to amend the tax law, in relation to authorizing the city of Buffalo to impose a hotel and motel tax; and providing for the repeal of such provisions upon the expiration thereof (Part TT); to amend the tax law, in relation to geothermal energy systems tax credits (Part UU); to amend the tax law, in relation to the metropolitan commuter transportation mobility tax; and to amend the public authorities law, in relation to amending the rates of tax and the distribution of revenue therefrom (Part VV); to amend the tax law, in relation to sales and compensating use taxes for the metropolitan commuter transportation district; to amend the state finance law, in relation to the mass transportation operating assist- ance fund and the dedicated mass transportation trust fund; and to amend the public authorities law, in relation to the metropolitan transportation authority dedicated tax fund (Part WW); and to amend the public authorities law, in relation to the aggregate principal amount of bonds, notes or other obligations issued by the metropolitan S. 3009--C 4 A. 3009--C

transit authority, the triborough bridge and tunnel authority and the New York city transit authority (Part XX) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2025-2026 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through XX. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act.

12 PART A

13 Section 1. Section 606 of the tax law is amended by adding a new 14 subsection (qqq) to read as follows: 15 (qqq) Inflation refund credit. (1) A taxpayer who meets the eligibil- 16 ity standards in paragraph two of this subsection shall be allowed a 17 credit against the taxes imposed by this article in the amount specified 18 in paragraph three of this subsection for tax year two thousand twenty- 19 five. 20 (2) To be eligible for the credit, the taxpayer (or taxpayers filing 21 joint returns)(a) must have been a full-year resident in the state of 22 New York in tax year two thousand twenty-three, (b) (i) must have had 23 New York adjusted gross income of three hundred thousand dollars or less 24 in tax year two thousand twenty-three if they filed a New York state 25 resident income tax return as married taxpayers filing jointly or a 26 qualified surviving spouse, or (ii) must have had New York adjusted 27 gross income of one hundred fifty thousand dollars or less in tax year 28 two thousand twenty-three if they filed a New York state resident income 29 tax return as a single taxpayer, married taxpayer filing a separate 30 return, or head of household, and (c) must not have been claimed as a 31 dependent by another taxpayer in tax year two thousand twenty-three. 32 (3) Amount of credit. (a) For taxpayers who meet the eligibility stan- 33 dards in paragraph two who filed a New York state resident income tax 34 return as married taxpayers filing jointly or a qualified surviving 35 spouse, (i) with New York adjusted gross income of greater than one 36 hundred fifty thousand dollars but no greater than three hundred thou- 37 sand dollars in tax year two thousand twenty-three, the credit amount 38 shall be three hundred dollars, or (ii) with New York adjusted gross 39 income of no greater than one hundred fifty thousand dollars in tax year 40 two thousand twenty-three, the credit amount shall be four hundred 41 dollars, and (b) for taxpayers who meet the eligibility standards in 42 paragraph two who filed a New York state resident income tax return as a 43 single taxpayer, married taxpayer filing a separate return, or head of 44 household, (i) with New York adjusted gross income of greater than 45 seventy-five thousand dollars but no greater than one hundred fifty 46 thousand dollars in tax year two thousand twenty-three, the credit 47 amount shall be one hundred fifty dollars, or (ii) with New York S. 3009--C 5 A. 3009--C

1 adjusted gross income of no greater than seventy-five thousand dollars 2 in tax year two thousand twenty-three, the credit amount shall be two 3 hundred dollars. 4 (4) The amount of the credit shall be treated as an overpayment of tax 5 to be credited or refunded in accordance with the provisions of section 6 six hundred eighty-six of this article, provided, however, that no 7 interest shall be paid thereon. The commissioner shall determine the 8 taxpayer's eligibility for this credit utilizing the information avail- 9 able to the commissioner on the taxpayer's personal income tax return 10 filed for tax year two thousand twenty-three. For those taxpayers whom 11 the commissioner has determined eligible for this credit, the commis- 12 sioner shall advance a payment in the amount specified in paragraph 13 three of this subsection. A taxpayer who failed to receive an advance 14 payment that they believe was due, or who received an advance payment 15 that they believe is less than the amount that was due, may request 16 payment of the claimed deficiency in a manner prescribed by the commis- 17 sioner. 18 § 2. Notwithstanding any provision of law to the contrary, any credit 19 paid pursuant to this act, to the extent includible in gross income for 20 federal income tax purposes, shall not be subject to state or local 21 income tax. 22 § 3. This act shall take effect immediately.

23 PART B

24 Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 25 of subsection (a) of section 601 of the tax law, as amended by section 1 26 of subpart A of part A of chapter 59 of the laws of 2022, are amended to 27 read as follows: 28 (vi) For taxable years beginning in two thousand twenty-three and 29 before two thousand [ ] twenty-six the following rates shall 30 apply: 31 If the New York taxable income is: The tax is: 32 Not over $17,150 4% of the New York taxable income 33 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 34 $17,150 35 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 36 $23,600 37 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 38 $27,900 39 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 40 $161,550 41 Over $323,200 but not over $18,252 plus 6.85% of excess over 42 $2,155,350 $323,200 43 Over $2,155,350 but not over $143,754 plus 9.65% of excess over 44 $5,000,000 $2,155,350 45 Over $5,000,000 but not over $418,263 plus 10.30% of excess over 46 $25,000,000 $5,000,000 47 Over $25,000,000 $2,478,263 plus 10.90% of excess over 48 $25,000,000

49 (vii) For taxable years beginning after two thousand [ ] 50 twenty-five and before two thousand twenty-seven the following rates 51 shall apply: S. 3009--C 6 A. 3009--C

1 [ 2 3 4 5 6 7 8 9 10 11 12 13 14 ] 15 If the New York taxable income is: The tax is: 16 Not over $17,150 3.90% of the New York taxable 17 income 18 Over $17,150 but not over $23,600 $669 plus 4.40% of excess over 19 $17,150 20 Over $23,600 but not over $27,900 $953 plus 5.15% of excess over 21 $23,600 22 Over $27,900 but not over $161,550 $1,174 plus 5.40% of excess over 23 $27,900 24 Over $161,550 but not over $323,200 $8,391 plus 5.90% of excess over 25 $161,550 26 Over $323,200 but not over $17,928 plus 6.85% of excess 27 $2,155,350 over $323,200 28 Over $2,155,350 but not over $143,430 plus 9.65% of excess 29 $5,000,000 over $2,155,350 30 Over $5,000,000 but not over $417,939 plus 10.30% of excess 31 $25,000,000 over $5,000,000 32 Over $25,000,000 $2,477,939 plus 10.90% of excess 33 over $25,000,000 34 § 2. Subparagraph (B) of paragraph 1 of subsection (a) of section 601 35 of the tax law is amended by adding two new clauses (viii) and (ix) to 36 read as follows: 37 (viii) For taxable years beginning after two thousand twenty-six and 38 before two thousand thirty-three the following rates shall apply: 39 If the New York taxable income is: The tax is: 40 Not over $17,150 3.80% of the New York taxable 41 income 42 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 43 $17,150 44 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 45 $23,600 46 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 47 $27,900 48 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 49 over $161,550 50 Over $323,200 but not over $17,605 plus 6.85% of excess 51 $2,155,350 over $323,200 52 Over $2,155,350 but not over $143,107 plus 9.65% of excess 53 $5,000,000 over $2,155,350 54 Over $5,000,000 but not over $417,616 plus 10.30% of excess S. 3009--C 7 A. 3009--C

1 $25,000,000 over $5,000,000 2 Over $25,000,000 $2,477,616 plus 10.90% of excess 3 over $25,000,000 4 (ix) For taxable years beginning after two thousand thirty-two the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 3.80% of the New York taxable 8 income 9 Over $17,150 but not over $23,600 $652 plus 4.30% of excess over 10 $17,150 11 Over $23,600 but not over $27,900 $929 plus 5.05% of excess over 12 $23,600 13 Over $27,900 but not over $161,550 $1,146 plus 5.30% of excess over 14 $27,900 15 Over $161,550 but not over $323,200 $8,229 plus 5.80% of excess 16 over $161,550 17 Over $323,200 but not over $17,605 plus 6.85% of excess 18 $2,155,350 over $323,200 19 Over $2,155,350 $143,107 plus 8.82% of excess 20 over $2,155,350 21 § 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 22 subsection (b) of section 601 of the tax law, as amended by section 2 of 23 subpart A of part A of chapter 59 of the laws of 2022, are amended to 24 read as follows: 25 (vi) For taxable years beginning in two thousand twenty-three and 26 before two thousand [ ] twenty-six the following rates shall 27 apply: 28 If the New York taxable income is: The tax is: 29 Not over $12,800 4% of the New York taxable income 30 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 31 $12,800 32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 33 $17,650 34 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 35 $20,900 36 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 37 $107,650 38 Over $269,300 but not over $15,371 plus 6.85% of excess over 39 $1,616,450 $269,300 40 Over $1,616,450 but not over $107,651 plus 9.65% of excess over 41 $5,000,000 $1,616,450 42 Over $5,000,000 but not over $434,163 plus 10.30% of excess over 43 $25,000,000 $5,000,000 44 Over $25,000,000 $2,494,163 plus 10.90% of excess over 45 $25,000,000

46 (vii) For taxable years beginning after two thousand [ ] 47 twenty-five and before two thousand twenty-seven the following rates 48 shall apply: 49 [ 50 51 52 53 S. 3009--C 8 A. 3009--C

1 2 3 4 5 6 7 8 9 ]

10 If the New York taxable income is: The tax is: 11 Not over $12,800 3.90% of the New York taxable 12 income 13 Over $12,800 but not over $499 plus 4.40% of excess over 14 $17,650 $12,800 15 Over $17,650 but not over $712 plus 5.15% of excess over 16 $20,900 $17,650 17 Over $20,900 but not over $879 plus 5.40% of excess over 18 $107,650 $20,900 19 Over $107,650 but not over $5,564 plus 5.90% of excess 20 $269,300 over $107,650 21 Over $269,300 but not over $15,101 plus 6.85% of excess 22 $1,616,450 over $269,300 23 Over $1,616,450 but not over $107,381 plus 9.65% of excess 24 $5,000,000 over $1,616,450 25 Over $5,000,000 but not over $433,894 plus 10.30% of excess 26 $25,000,000 over $5,000,000 27 Over $25,000,000 $2,493,894 plus 10.90% of excess 28 over $25,000,000 29 § 4. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 30 of the tax law is amended by adding two new clauses (viii) and (ix) to 31 read as follows: 32 (viii) For taxable years beginning after two thousand twenty-six and 33 before two thousand thirty-three the following rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $12,800 3.80% of the New York taxable 36 income 37 Over $12,800 but not over $486 plus 4.30% of excess over 38 $17,650 $12,800 39 Over $17,650 but not over $695 plus 5.05% of excess over 40 $20,900 $17,650 41 Over $20,900 but not over $859 plus 5.30% of excess over 42 $107,650 $20,900 43 Over $107,650 but not over $5,457 plus 5.80% of excess 44 $269,300 over $107,650 45 Over $269,300 but not over $14,833 plus 6.85% of excess 46 $1,616,450 over $269,300 47 Over $1,616,450 but not over $107,113 plus 9.65% of excess 48 $5,000,000 over $1,616,450 49 Over $5,000,000 but not over $433,626 plus 10.30% of excess 50 $25,000,000 over $5,000,000 51 Over $25,000,000 $2,493,626 plus 10.90% of excess 52 over $25,000,000 S. 3009--C 9 A. 3009--C

1 (ix) For taxable years beginning after two thousand thirty-two the 2 following rates shall apply: 3 If the New York taxable income is: The tax is: 4 Not over $12,800 3.80% of the New York taxable 5 income 6 Over $12,800 but not over $486 plus 4.30% of excess over 7 $17,650 $12,800 8 Over $17,650 but not over $695 plus 5.05% of excess over 9 $20,900 $17,650 10 Over $20,900 but not over $859 plus 5.30% of excess over 11 $107,650 $20,900 12 Over $107,650 but not over $5,457 plus 5.80% of excess 13 $269,300 over $107,650 14 Over $269,300 but not over $14,833 plus 6.85% of excess 15 $1,616,450 over $269,300 16 Over $1,616,450 $107,113 plus 8.82% of excess 17 over $1,616,450 18 § 5. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of 19 subsection (c) of section 601 of the tax law, as amended by section 3 of 20 subpart A of part A of chapter 59 of the laws of 2022, are amended to 21 read as follows: 22 (vi) For taxable years beginning in two thousand twenty-three and 23 before two thousand [ ] twenty-six the following rates shall 24 apply: 25 If the New York taxable income is: The tax is: 26 Not over $8,500 4% of the New York taxable income 27 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 28 $8,500 29 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 30 $11,700 31 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 32 $13,900 33 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 34 $80,650 35 Over $215,400 but not over $12,356 plus 6.85% of excess over 36 $1,077,550 $215,400 37 Over $1,077,550 but not over $71,413 plus 9.65% of excess over 38 $5,000,000 $1,077,550 39 Over $5,000,000 but not over $449,929 plus 10.30% of excess over 40 $25,000,000 $5,000,000 41 Over $25,000,000 $2,509,929 plus 10.90% of excess over 42 $25,000,000 43 (vii) For taxable years beginning after two thousand [ ] 44 twenty-five and before two thousand twenty-seven the following rates 45 shall apply: 46 [ 47 48 49 50 51 52 53 54 S. 3009--C 10 A. 3009--C

1 2 3 4 5 ] 6 If the New York taxable income is: The tax is: 7 Not over $8,500 3.90% of the New York taxable income 8 Over $8,500 but not over $11,700 $332 plus 4.40% of excess over 9 $8,500 10 Over $11,700 but not over $13,900 $473 plus 5.15% of excess over 11 $11,700 12 Over $13,900 but not over $80,650 $586 plus 5.40% of excess over 13 $13,900 14 Over $80,650 but not over $215,400 $4,191 plus 5.90% of excess 15 over $80,650 16 Over $215,400 but not over $12,141 plus 6.85% of excess 17 $1,077,550 over $215,400 18 Over $1,077,550 but not over $71,198 plus 9.65% of excess 19 $5,000,000 over $1,077,550 20 Over $5,000,000 but not over $449,714 plus 10.30% of excess 21 $25,000,000 over $5,000,000 22 Over $25,000,000 $2,509,714 plus 10.90% of excess 23 over $25,000,000 24 § 6. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 25 of the tax law is amended by adding two new clauses (viii) and (ix) to 26 read as follows: 27 (viii) For taxable years beginning after two thousand twenty-six and 28 before two thousand thirty-three the following rates shall apply: 29 If the New York taxable income is: The tax is: 30 Not over $8,500 3.80% of the New York taxable income 31 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 32 $8,500 33 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 34 $11,700 35 Over $13,900 but not over $80,650 $572 plus 5.30% of excess over 36 $13,900 37 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 38 over $80,650 39 Over $215,400 but not over $11,926 plus 6.85% of excess 40 $1,077,550 over $215,400 41 Over $1,077,550 but not over $70,983 plus 9.65% of excess 42 $5,000,000 over $1,077,550 43 Over $5,000,000 but not over $449,499 plus 10.30% of excess 44 $25,000,000 over $5,000,000 45 Over $25,000,000 $2,509,499 plus 10.90% of excess 46 over $25,000,000 47 (ix) For taxable years beginning after two thousand thirty-two the 48 following rates shall apply: 49 If the New York taxable income is: The tax is: 50 Not over $8,500 3.80% of the New York taxable income 51 Over $8,500 but not over $11,700 $323 plus 4.30% of excess over 52 $8,500 53 Over $11,700 but not over $13,900 $461 plus 5.05% of excess over 54 $11,700 55 Over $13,900 but not over $80,650 $572 plus 5.30% of excess over S. 3009--C 11 A. 3009--C

1 $13,900 2 Over $80,650 but not over $215,400 $4,110 plus 5.80% of excess 3 over $80,650 4 Over $215,400 but not over $11,926 plus 6.85% of excess 5 $1,077,550 over $215,400 6 Over $1,077,550 $70,983 plus 8.82% of excess 7 over $1,077,550 8 § 7. The opening paragraph of subsection (d-4) of section 601 of the 9 tax law, as added by section 3 of subpart B of part A of chapter 59 of 10 the laws of 2022, is amended to read as follows: 11 Alternative tax table benefit recapture. Notwithstanding the 12 provisions of subsection (d), (d-1), (d-2) or (d-3) of this section, for 13 taxable years beginning on or after two thousand twenty-three and before 14 two thousand [ ] twenty-six , there is hereby imposed a 15 supplemental tax in addition to the tax imposed under subsections (a), 16 (b) and (c) of this section for the purpose of recapturing the benefit 17 of the tax tables contained in such subsections. During these taxable 18 years, any reference in this chapter to subsection (d), (d-1), (d-2) or 19 (d-3) of this section shall be read as a reference to this subsection. 20 § 8. Section 601 of the tax law is amended by adding three new 21 subsections (d-5), (d-6) and (d-7) to read as follows: 22 (d-5) Alternative tax table benefit recapture. Notwithstanding the 23 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-6) or (d-7) 24 of this section, for taxable years beginning on or after two thousand 25 twenty-six and before two thousand twenty-seven, there is hereby imposed 26 a supplemental tax in addition to the tax imposed under subsections (a), 27 (b) and (c) of this section for the purpose of recapturing the benefit 28 of the tax tables contained in such subsections. During these taxable 29 years, any reference in this chapter to subsection (d), (d-1), (d-2), 30 (d-3), (d-4), (d-6) or (d-7) of this section shall be read as a refer- 31 ence to this subsection. 32 (1) For resident married individuals filing joint returns and resident 33 surviving spouses: 34 (A) If New York adjusted gross income is greater than $107,650, but 35 not over $25,000,000: 36 (i) the recapture base and incremental benefit shall be determined by 37 New York taxable income as follows: 38 Greater than Not over Recapture Base Incremental Benefit 39 $27,900 $161,550 $0 $333 40 $161,550 $323,200 $333 $807 41 $323,200 $2,155,350 $1,140 $3,071 42 $2,155,350 $5,000,000 $4,211 $60,350 43 $5,000,000 $25,000,000 $64,561 $32,500 44 (ii) the applicable amount shall be determined by New York taxable 45 income as follows: 46 Greater than Not over Applicable Amount 47 $27,900 $161,550 New York adjusted gross income minus $107,650 48 $161,550 $323,200 New York adjusted gross income minus $161,550 49 $323,200 $2,155,350 New York adjusted gross income minus $323,200 50 $2,155,350 $5,000,000 New York adjusted gross income minus $2,155,350 51 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 52 (iii) the phase-in fraction shall be a fraction, the numerator of 53 which shall be the lesser of fifty thousand dollars or the applicable 54 amount and the denominator of which shall be fifty thousand dollars; and S. 3009--C 12 A. 3009--C

1 (iv) the supplemental tax due shall equal the sum of the recapture 2 base and the product of (i) the incremental benefit and (ii) the phase- 3 in fraction. Provided, however, that if the New York taxable income of 4 the taxpayer is less than twenty-seven thousand nine hundred dollars, 5 the supplemental tax shall equal the difference between the product of 6 5.40 percent and New York taxable income and the tax table computation 7 on the New York taxable income set forth in paragraph one of subsection 8 (a) of this section, multiplied by a fraction, the numerator of which is 9 the lesser of fifty thousand dollars or New York adjusted gross income 10 minus one hundred seven thousand six hundred fifty dollars, and the 11 denominator of which is fifty thousand dollars. 12 (B) If New York adjusted gross income is greater than twenty-five 13 million dollars, the supplemental tax due shall equal the difference 14 between the product of 10.90 percent and New York taxable income and the 15 tax table computation on the New York taxable income set forth in para- 16 graph one of subsection (a) of this section. 17 (2) For resident heads of households: 18 (A) If New York adjusted gross income is greater than $107,650, but 19 not over $25,000,000: 20 (i) the recapture base and incremental benefit shall be determined by 21 New York taxable income as follows: 22 Greater than Not over Recapture Base Incremental Benefit 23 $107,650 $269,300 $0 $787 24 $269,300 $1,616,450 $787 $2,559 25 $1,616,450 $5,000,000 $3,346 $45,260 26 $5,000,000 $25,000,000 $48,606 $32,500 27 (ii) the applicable amount shall be determined by New York taxable 28 income as follows: 29 Greater than Not over Applicable Amount 30 $107,650 $269,300 New York adjusted gross income minus $107,650 31 $269,300 $1,616,450 New York adjusted gross income minus $269,300 32 $1,616,450 $5,000,000 New York adjusted gross income minus $1,616,450 33 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 34 (iii) the phase-in fraction shall be a fraction, the numerator of 35 which shall be the lesser of fifty thousand dollars or the applicable 36 amount and the denominator of which shall be fifty thousand dollars; and 37 (iv) the supplemental tax due shall equal the sum of the recapture 38 base and the product of (i) the incremental benefit and (ii) the phase- 39 in fraction. Provided, however, that if the New York taxable income of 40 the taxpayer is less than one hundred seven thousand six hundred fifty 41 dollars, the supplemental tax shall equal the difference between the 42 product of 5.90 percent and New York taxable income and the tax table 43 computation on the New York taxable income set forth in paragraph one of 44 subsection (b) of this section, multiplied by a fraction, the numerator 45 of which is the lesser of fifty thousand dollars or New York adjusted 46 gross income minus one hundred seven thousand six hundred fifty dollars, 47 and the denominator of which is fifty thousand dollars. 48 (B) If New York adjusted gross income is greater than twenty-five 49 million dollars, the supplemental tax due shall equal the difference 50 between the product of 10.90 percent and New York taxable income and the 51 tax table computation on the New York taxable income set forth in para- 52 graph one of subsection (b) of this section. 53 (3) For resident unmarried individuals, resident married individuals 54 filing separate returns and resident estates and trusts: 55 (A) If New York adjusted gross income is greater than $107,650, but 56 not over $25,000,000: S. 3009--C 13 A. 3009--C

1 (i) the recapture base and incremental benefit shall be determined by 2 New York taxable income as follows: 3 Greater than Not over Recapture Base Incremental Benefit 4 $80,650 $215,400 $0 $567 5 $215,400 $1,077,550 $567 $2,047 6 $1,077,550 $5,000,000 $2,614 $30,172 7 $5,000,000 $25,000,000 $32,786 $32,500 8 (ii) the applicable amount shall be determined by New York taxable 9 income as follows: 10 Greater than Not over Applicable Amount 11 $80,650 $215,400 New York adjusted gross income minus $107,650 12 $215,400 $1,077,550 New York adjusted gross income minus $215,400 13 $1,077,550 $5,000,000 New York adjusted gross income minus $1,077,550 14 $5,000,000 $25,000,000 New York adjusted gross income minus $5,000,000 15 (iii) the phase-in fraction shall be a fraction, the numerator of 16 which shall be the lesser of fifty thousand dollars or the applicable 17 amount and the denominator of which shall be fifty thousand dollars; and 18 (iv) the supplemental tax due shall equal the sum of the recapture 19 base and the product of (i) the incremental benefit and (ii) the phase- 20 in fraction. Provided, however, that if the New York taxable income of 21 the taxpayer is less than eighty thousand six hundred fifty dollars, the 22 supplemental tax shall equal the difference between the product of 5.90 23 percent and New York taxable income and the tax table computation on the 24 New York taxable income set forth in paragraph one of subsection (c) of 25 this section, multiplied by a fraction, the numerator of which is the 26 lesser of fifty thousand dollars or New York adjusted gross income minus 27 one hundred seven thousand six hundred fifty dollars, and the denomina- 28 tor of which is fifty thousand dollars. 29 (B) If New York adjusted gross income is greater than twenty-five 30 million dollars, the supplemental tax due shall equal the difference 31 between the product of 10.90 percent and New York taxable income and the 32 tax table computation on the New York taxable income set forth in para- 33 graph one of subsection (c) of this section. 34 (d-6) Alternative tax table benefit recapture. Notwithstanding the 35 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-7) 36 of this section, for taxable years beginning on or after two thousand 37 twenty-seven and before two thousand thirty-three, there is hereby 38 imposed a supplemental tax in addition to the tax imposed under 39 subsections (a), (b) and (c) of this section for the purpose of recap- 40 turing the benefit of the tax tables contained in such subsections. 41 During these taxable years, any reference in this chapter to subsection 42 (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-7) of this section shall be 43 read as a reference to this subsection. 44 (1) For resident married individuals filing joint returns and resident 45 surviving spouses: 46 (A) If New York adjusted gross income is greater than $107,650, but 47 not over $25,000,000: 48 (i) the recapture base and incremental benefit shall be determined by 49 New York taxable income as follows: 50 Greater than Not over Recapture Base Incremental Benefit 51 $27,900 $161,550 $0 $333 52 $161,550 $323,200 $333 $808 53 $323,200 $2,155,350 $1,141 $3,393 54 $2,155,350 $5,000,000 $4,534 $60,350 55 $5,000,000 $25,000,000 $64,884 $32,500 S. 3009--C 14 A. 3009--C

1 (ii) the applicable amount shall be determined by New York taxable 2 income as follows: 3 Greater than Not over Applicable Amount 4 $27,900 $161,550 New York adjusted gross income 5 minus $107,650 6 $161,550 $323,200 New York adjusted gross income 7 minus $161,550 8 $323,200 $2,155,350 New York adjusted gross income 9 minus $323,200 10 $2,155,350 $5,000,000 New York adjusted gross income 11 minus $2,155,350 12 $5,000,000 $25,000,000 New York adjusted gross income 13 minus $5,000,000 14 (iii) the phase-in fraction shall be a fraction, the numerator of 15 which shall be the lesser of fifty thousand dollars or the applicable 16 amount and the denominator of which shall be fifty thousand dollars; and 17 (iv) the supplemental tax due shall equal the sum of the recapture 18 base and the product of (i) the incremental benefit and (ii) the phase- 19 in fraction. Provided, however, that if the New York taxable income of 20 the taxpayer is less than twenty-seven thousand nine hundred dollars, 21 the supplemental tax shall equal the difference between the product of 22 5.30 percent and New York taxable income and the tax table computation 23 on the New York taxable income set forth in paragraph one of subsection 24 (a) of this section, multiplied by a fraction, the numerator of which 25 is the lesser of fifty thousand dollars or New York adjusted gross 26 income minus one hundred seven thousand six hundred fifty dollars, and 27 the denominator of which is fifty thousand dollars. 28 (B) If New York adjusted gross income is greater than twenty-five 29 million dollars, the supplemental tax due shall equal the difference 30 between the product of 10.90 percent and New York taxable income and the 31 tax table computation on the New York taxable income set forth in para- 32 graph one of subsection (a) of this section. 33 (2) For resident heads of households: 34 (A) If New York adjusted gross income is greater than $107,650, but 35 not over $25,000,000: 36 (i) the recapture base and incremental benefit shall be determined by 37 New York taxable income as follows: 38 Greater than Not over Recapture Base Incremental Benefit 39 $107,650 $269,300 $0 $787 40 $269,300 $1,616,450 $787 $2,827 41 $1,616,450 $5,000,000 $3,614 $45,260 42 $5,000,000 $25,000,000 $48,874 $32,500 43 (ii) the applicable amount shall be determined by New York taxable 44 income as follows: 45 Greater than Not over Applicable Amount 46 $107,650 $269,300 New York adjusted gross income 47 minus $107,650 48 $269,300 $1,616,450 New York adjusted gross income 49 minus $269,300 50 $1,616,450 $5,000,000 New York adjusted gross income 51 minus $1,616,450 52 $5,000,000 $25,000,000 New York adjusted gross income 53 minus $5,000,000 54 (iii) the phase-in fraction shall be a fraction, the numerator of 55 which shall be the lesser of fifty thousand dollars or the applicable 56 amount and the denominator of which shall be fifty thousand dollars; and S. 3009--C 15 A. 3009--C

1 (iv) the supplemental tax due shall equal the sum of the recapture 2 base and the product of (i) the incremental benefit and (ii) the phase- 3 in fraction. Provided, however, that if the New York taxable income of 4 the taxpayer is less than one hundred seven thousand six hundred fifty 5 dollars, the supplemental tax shall equal the difference between the 6 product of 5.80 percent and New York taxable income and the tax table 7 computation on the New York taxable income set forth in paragraph one of 8 subsection (b) of this section, multiplied by a fraction, the numerator 9 of which is the lesser of fifty thousand dollars or New York adjusted 10 gross income minus one hundred seven thousand six hundred fifty dollars, 11 and the denominator of which is fifty thousand dollars. 12 (B) If New York adjusted gross income is greater than twenty-five 13 million dollars, the supplemental tax due shall equal the difference 14 between the product of 10.90 percent and New York taxable income and the 15 tax table computation on the New York taxable income set forth in para- 16 graph one of subsection (b) of this section. 17 (3) For resident unmarried individuals, resident married individuals 18 filing separate returns and resident estates and trusts: 19 (A) If New York adjusted gross income is greater than $107,650, but 20 not over $25,000,000: 21 (i) the recapture base and incremental benefit shall be determined by 22 New York taxable income as follows: 23 Greater than Not over Recapture Base Incremental Benefit 24 $80,650 $215,400 $0 $568 25 $215,400 $1,077,550 $568 $2,261 26 $1,077,550 $5,000,000 $2,829 $30,172 27 $5,000,000 $25,000,000 $33,001 $32,500 28 (ii) the applicable amount shall be determined by New York taxable 29 income as follows: 30 Greater than Not over Applicable Amount 31 $80,650 $215,400 New York adjusted gross income 32 minus $107,650 33 $215,400 $1,077,550 New York adjusted gross income 34 minus $215,400 35 $1,077,550 $5,000,000 New York adjusted gross income 36 minus $1,077,550 37 $5,000,000 $25,000,000 New York adjusted gross income 38 minus $5,000,000 39 (iii) the phase-in fraction shall be a fraction, the numerator of 40 which shall be the lesser of fifty thousand dollars or the applicable 41 amount and the denominator of which shall be fifty thousand dollars; and 42 (iv) the supplemental tax due shall equal the sum of the recapture 43 base and the product of (i) the incremental benefit and (ii) the phase- 44 in fraction. Provided, however, that if the New York taxable income of 45 the taxpayer is less than eighty thousand six hundred fifty dollars, the 46 supplemental tax shall equal the difference between the product of 5.80 47 percent and New York taxable income and the tax table computation on the 48 New York taxable income set forth in paragraph one of subsection (c) of 49 this section, multiplied by a fraction, the numerator of which is the 50 lesser of fifty thousand dollars or New York adjusted gross income minus 51 one hundred seven thousand six hundred fifty dollars, and the denomina- 52 tor of which is fifty thousand dollars. 53 (B) If New York adjusted gross income is greater than twenty-five 54 million dollars, the supplemental tax due shall equal the difference 55 between the product of 10.90 percent and New York taxable income and the S. 3009--C 16 A. 3009--C

1 tax table computation on the New York taxable income set forth in para- 2 graph one of subsection (c) of this section. 3 (d-7) Alternative tax table benefit recapture. Notwithstanding the 4 provisions of subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) 5 of this section, for taxable years beginning on or after two thousand 6 thirty-three, there is hereby imposed a supplemental tax in addition to 7 the tax imposed under subsections (a), (b) and (c) of this section for 8 the purpose of recapturing the benefit of the tax tables contained in 9 such subsections. During these taxable years, any reference in this 10 chapter to subsection (d), (d-1), (d-2), (d-3), (d-4), (d-5) or (d-6) of 11 this section shall be read as a reference to this subsection. 12 (1) For resident married individuals filing joint returns and resident 13 surviving spouses: 14 (A) If New York adjusted gross income is greater than $107,650: 15 (i) the recapture base and incremental benefit shall be determined by 16 New York taxable income as follows: 17 Greater than Not over Recapture Base Incremental Benefit 18 $27,900 $161,550 $0 $333 19 $161,550 $323,200 $333 $808 20 $323,200 $2,155,350 $1,141 $3,393 21 $2,155,350 $4,534 $42,461 22 (ii) the applicable amount shall be determined by New York taxable 23 income as follows: 24 Greater than Not over Applicable Amount 25 $27,900 $161,550 New York adjusted gross income minus $107,650 26 $161,550 $323,200 New York adjusted gross income minus $161,550 27 $323,200 $2,155,350 New York adjusted gross income minus $323,200 28 $2,155,350 New York adjusted gross income minus $2,155,350 29 (iii) the phase-in fraction shall be a fraction, the numerator of 30 which shall be the lesser of fifty thousand dollars or the applicable 31 amount and the denominator of which shall be fifty thousand dollars; and 32 (iv) the supplemental tax due shall equal the sum of the recapture 33 base and the product of (i) the incremental benefit and (ii) the phase- 34 in fraction. Provided, however, that if the New York taxable income of 35 the taxpayer is less than twenty-seven thousand nine hundred dollars, 36 the supplemental tax shall equal the difference between the product of 37 5.30 percent and New York taxable income and the tax table computation 38 on the New York taxable income set forth in paragraph one of subsection 39 (a) of this section, multiplied by a fraction, the numerator of which is 40 the lesser of fifty thousand dollars or New York adjusted gross income 41 minus one hundred seven thousand six hundred fifty dollars, and the 42 denominator of which is fifty thousand dollars. 43 (2) For resident heads of households: 44 (A) If New York adjusted gross income is greater than $107,650: 45 (i) the recapture base and incremental benefit shall be determined by 46 New York taxable income as follows: 47 Greater than Not over Recapture Base Incremental Benefit 48 $107,650 $269,300 $0 $787 49 $269,300 $1,616,450 $787 $2,827 50 $1,616,450 $3,614 $31,844 51 (ii) the applicable amount shall be determined by New York taxable 52 income as follows: 53 Greater than Not over Applicable Amount 54 $107,650 $269,300 New York adjusted gross income minus $107,650 55 $269,300 $1,616,450 New York adjusted gross income minus $269,300 56 $1,616,450 New York adjusted gross income minus $1,616,450 S. 3009--C 17 A. 3009--C

1 (iii) the phase-in fraction shall be a fraction, the numerator of 2 which shall be the lesser of fifty thousand dollars or the applicable 3 amount and the denominator of which shall be fifty thousand dollars; and 4 (iv) the supplemental tax due shall equal the sum of the recapture 5 base and the product of (i) the incremental benefit and (ii) the phase- 6 in fraction. Provided, however, that if the New York taxable income of 7 the taxpayer is less than one hundred seven thousand six hundred fifty 8 dollars, the supplemental tax shall equal the difference between the 9 product of 5.80 percent and New York taxable income and the tax table 10 computation on the New York taxable income set forth in paragraph one of 11 subsection (b) of this section, multiplied by a fraction, the numerator 12 of which is the lesser of fifty thousand dollars or New York adjusted 13 gross income minus one hundred seven thousand six hundred fifty dollars, 14 and the denominator of which is fifty thousand dollars. 15 (3) For resident unmarried individuals, resident married individuals 16 filing separate returns and resident estates and trusts: 17 (A) If New York adjusted gross income is greater than $107,650: 18 (i) the recapture base and incremental benefit shall be determined by 19 New York taxable income as follows: 20 Greater than Not over Recapture Base Incremental Benefit 21 $80,650 $215,400 $0 $568 22 $215,400 $1,077,550 $568 $2,261 23 $1,077,550 $2,829 $21,228 24 (ii) the applicable amount shall be determined by New York taxable 25 income as follows: 26 Greater than Not over Applicable Amount 27 $80,650 $215,400 New York adjusted gross income minus $107,650 28 $215,400 $1,077,550 New York adjusted gross income minus $215,400 29 $1,077,550 New York adjusted gross income minus $1,077,550 30 (iii) the phase-in fraction shall be a fraction, the numerator of 31 which shall be the lesser of fifty thousand dollars or the applicable 32 amount and the denominator of which shall be fifty thousand dollars; and 33 (iv) the supplemental tax due shall equal the sum of the recapture 34 base and the product of (i) the incremental benefit and (ii) the phase- 35 in fraction. Provided, however, that if the New York taxable income of 36 the taxpayer is less than eighty thousand six hundred fifty dollars, the 37 supplemental tax shall equal the difference between the product of 5.80 38 percent and New York taxable income and the tax table computation on the 39 New York taxable income set forth in paragraph one of subsection (c) of 40 this section, multiplied by a fraction, the numerator of which is the 41 lesser of fifty thousand dollars or New York adjusted gross income minus 42 one hundred seven thousand six hundred fifty dollars, and the denomina- 43 tor of which is fifty thousand dollars. 44 § 9. This act shall take effect immediately.

45 PART C

46 Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax 47 law, as amended by section 1 of part HH of chapter 56 of the laws of 48 2023, is amended to read as follows: 49 (1) [ ] For taxable years beginning before January first, two thousand 50 twenty-five, and taxable years beginning on or after January first, two 51 thousand twenty-eight, a resident taxpayer shall be allowed a credit as 52 provided herein equal to the greater of one hundred dollars times the 53 number of qualifying children of the taxpayer or the applicable percent- 54 age of the child tax credit allowed the taxpayer under section twenty- S. 3009--C 18 A. 3009--C

1 four of the internal revenue code for the same taxable year for each 2 qualifying child. Provided, however, in the case of a taxpayer whose 3 federal adjusted gross income exceeds the applicable threshold amount 4 set forth by section 24(b)(2) of the Internal Revenue Code, the credit 5 shall only be equal to the applicable percentage of the child tax credit 6 allowed the taxpayer under section 24 of the Internal Revenue Code for 7 each qualifying child. For the purposes of this subsection, a qualifying 8 child shall be a child who meets the definition of qualified child under 9 section 24(c) of the internal revenue code. The applicable percentage 10 shall be thirty-three percent. For purposes of this subsection, any 11 reference to section 24 of the Internal Revenue Code shall be a refer- 12 ence to such section as it existed immediately prior to the enactment of 13 Public Law 115-97. 14 § 2. Subsection (c-1) of section 606 of the tax law is amended by 15 adding a new paragraph 1-a to read as follows: 16 (1-a) (A) For taxable years beginning on and after January first, two 17 thousand twenty-five, and before January first, two thousand twenty-six, 18 a resident taxpayer shall be allowed a credit as provided herein, equal 19 to the sum of: 20 (i) one thousand dollars times the number of qualifying children of 21 the taxpayer aged three or younger, and 22 (ii) three hundred thirty dollars times the number of qualifying chil- 23 dren of the taxpayer who have attained age four and not yet attained age 24 seventeen. 25 (B) For taxable years beginning on and after January first, two thou- 26 sand twenty-six, and before January first, two thousand twenty-eight, a 27 resident taxpayer shall be allowed a credit as provided herein, equal to 28 the sum of: 29 (i) one thousand dollars times the number of qualifying children of 30 the taxpayer aged three or younger, and 31 (ii) five hundred dollars times the number of qualifying children of 32 the taxpayer who have attained age four and not yet attained age seven- 33 teen. 34 (C) The amount of the credit allowable under subparagraphs (A) and (B) 35 of this paragraph shall be reduced (but not below zero) by sixteen 36 dollars and fifty cents for each one thousand dollars by which the 37 taxpayer's federal adjusted gross income exceeds the threshold amount. 38 For the purposes of this subparagraph, the term "threshold amount" shall 39 mean: (i) one hundred ten thousand dollars in the case of married 40 taxpayers filing jointly; (ii) seventy-five thousand dollars in the case 41 of a taxpayer filing as single, head of household, or qualified surving 42 spouse; and (iii) fifty-five thousand dollars in the case of a married 43 taxpayer filing a separate return. 44 (D) For the purposes of this paragraph, a qualifying child shall be an 45 individual who: (i) is a child, sibling, or stepsibling of the taxpayer, 46 or a descendent of any such relative; (ii) has the same principal place 47 of abode as the taxpayer for more than one-half of the taxable year; 48 (iii) has not attained age seventeen; (iv) has not provided over one- 49 half of such individual's own support for the calendar year in which the 50 taxable year of the taxpayer begins; (v) has not filed a joint return 51 (other than only for a claim of refund) with the individual's spouse 52 under section six hundred fifty-one of this article for the taxable 53 year; and (vi) is a citizen or national of the United States, or an 54 individual with an individual taxpayer identification number issued by 55 the internal revenue service. S. 3009--C 19 A. 3009--C

1 (E) For the purposes of this paragraph, the term "child" shall mean an 2 individual who is the offspring or stepchild of the taxpayer, or an 3 eligible foster child of the taxpayer, or a legally adopted individual 4 of the taxpayer, or an individual who is lawfully placed with the 5 taxpayer for legal adoption by the taxpayer. 6 (F) (i) Except as provided in subparagraph (C) of this paragraph, if 7 an individual may be claimed as a qualifying child by two or more 8 taxpayers for a taxable year, such individual shall be treated as the 9 qualifying child of the taxpayer who is: (I) a parent of the individual, 10 or (II) if subclause (I) does not apply, the taxpayer with the highest 11 federal adjusted gross income for such taxable year. 12 (ii) If the parents claiming any qualifying child do not file a joint 13 return together, such child shall be treated as the qualifying child of: 14 (I) the parent with whom the child resided for the longest period of 15 time during the taxable year, or (II) if the child resides with both 16 parents for the same amount of time during such taxable year, the parent 17 with the highest federal adjusted gross income who files a return pursu- 18 ant to section six hundred fifty-one of this article. 19 (iii) If the parents of an individual may claim such individual as a 20 qualifying child but no parent so claims the individual, such individual 21 may be claimed as the qualifying child of another taxpayer, but only if 22 the federal adjusted gross income of such taxpayer is higher than the 23 highest federal adjusted gross income of any parent of the individual, 24 regardless of a requirement to file a return pursuant to section six 25 hundred fifty-one of this article. 26 § 3. This act shall take effect immediately.

27 PART D

28 Section 1. Subdivision 3 of section 22 of the public housing law, as 29 added by section 1 of part CC of chapter 63 of the laws of 2000, is 30 amended to read as follows: 31 3. Amount of credit. Except as provided in subdivisions four and five 32 of this section, the amount of low-income housing credit shall be the 33 applicable percentage of the qualified basis of each eligible low-income 34 building. Buildings financed by refunded bonds using the rules of 35 section 146(i)(6) of the internal revenue code, shall be eligible for 36 credit pursuant to the rules of section 42(b)(2) of the internal revenue 37 code. 38 § 2. Subdivision 4 of section 22 of the public housing law, as amended 39 by section 4 of part J of chapter 59 of the laws of 2022, is amended to 40 read as follows: 41 4. Statewide limitation. The aggregate dollar amount of credit which 42 the commissioner may allocate to eligible low-income buildings under 43 this article shall be one hundred [ ] eighty-seven million 44 dollars. The limitation provided by this subdivision applies only to 45 allocation of the aggregate dollar amount of credit by the commission- 46 er[ ] and does not apply to allowance to a taxpayer of the credit with 47 respect to an eligible low-income building for each year of the credit 48 period. 49 § 3. Subdivision 4 of section 22 of the public housing law, as amended 50 by section two of this act, is amended to read as follows: 51 4. Statewide limitation. The aggregate dollar amount of credit which 52 the commissioner may allocate to eligible low-income buildings under 53 this article shall be [ ] two hundred [ ] seventeen million 54 dollars. The limitation provided by this subdivision applies only to S. 3009--C 20 A. 3009--C

1 allocation of the aggregate dollar amount of credit by the commissioner 2 and does not apply to allowance to a taxpayer of the credit with respect 3 to an eligible low-income building for each year of the credit period. 4 § 4. Subdivision 4 of section 22 of the public housing law, as amended 5 by section three of this act, is amended to read as follows: 6 4. Statewide limitation. The aggregate dollar amount of credit which 7 the commissioner may allocate to eligible low-income buildings under 8 this article shall be two hundred [ ] forty-seven million 9 dollars. The limitation provided by this subdivision applies only to 10 allocation of the aggregate dollar amount of credit by the commissioner 11 and does not apply to allowance to a taxpayer of the credit with respect 12 to an eligible low-income building for each year of the credit period. 13 § 5. Subdivision 4 of section 22 of the public housing law, as amended 14 by section four of this act, is amended to read as follows: 15 4. Statewide limitation. The aggregate dollar amount of credit which 16 the commissioner may allocate to eligible low-income buildings under 17 this article shall be two hundred [ ] seventy-seven million 18 dollars. The limitation provided by this subdivision applies only to 19 allocation of the aggregate dollar amount of credit by the commissioner 20 and does not apply to allowance to a taxpayer of the credit with respect 21 to an eligible low-income building for each year of the credit period. 22 § 6. Subdivision 4 of section 22 of the public housing law, as amended 23 by section five of this act, is amended to read as follows: 24 4. Statewide limitation. The aggregate dollar amount of credit which 25 the commissioner may allocate to eligible low-income buildings under 26 this article shall be [ ] three hundred [ ] seven million 27 dollars. The limitation provided by this subdivision applies only to 28 allocation of the aggregate dollar amount of credit by the commissioner 29 and does not apply to allowance to a taxpayer of the credit with respect 30 to an eligible low-income building for each year of the credit period. 31 § 7. This act shall take effect immediately; provided, however, 32 section two of this act shall take effect on the same date and in the 33 same manner as section 4 of part J of chapter 59 of the laws of 2022 34 takes effect; section three of this act shall take effect April 1, 2026; 35 section four of this act shall take effect April 1, 2027; section five 36 of this act shall take effect April 1, 2028; and section six of this act 37 shall take effect April 1, 2029.

38 PART E

39 Section 1. Subdivision 26 of section 210-B of the tax law, as added by 40 section 17 of part A of chapter 59 of the laws of 2014, paragraphs (a) 41 and (c) as amended by section 2 of part RR of chapter 59 of the laws of 42 2018, subparagraph (i) of paragraph (a) as amended by section 2, subpar- 43 agraph (ii) of paragraph (a) as amended by section 4 and paragraph (a-1) 44 as amended by section 3 of subpart B of part I of chapter 59 of the laws 45 of 2023, paragraph (e) as amended by section 1 of part U of chapter 59 46 of the laws of 2019, paragraph (f) as added by section 2 of part CCC of 47 chapter 59 of the laws of 2021, is amended to read as follows: 48 26. Credit for rehabilitation of historic properties. (a) Application 49 of credit. (i) For taxable years beginning on or after January first, 50 two thousand ten, and before January first, two thousand thirty, a 51 taxpayer , or a transferee of such a taxpayer as described in paragraph 52 (g) of this subdivision, shall be allowed a credit as hereinafter 53 provided, against the tax imposed by this article, in an amount equal to 54 one hundred percent of the amount of credit allowed the taxpayer for the S. 3009--C 21 A. 3009--C

1 same taxable year with respect to a certified historic structure, and 2 one hundred fifty percent of the amount of credit allowed the taxpayer 3 with respect to a certified historic structure that is a small project, 4 under internal revenue code section 47(c)(3), determined without regard 5 to ratably allocating the credit over a five year period as required by 6 subsection (a) of such section 47, with respect to a certified historic 7 structure located within the state. Provided, however, the credit shall 8 not exceed five million dollars. 9 (ii) For taxable years beginning on or after January first, two thou- 10 sand thirty, a taxpayer , or a transferee of such a taxpayer as described 11 in paragraph (g) of this subdivision, shall be allowed a credit as here- 12 inafter provided, against the tax imposed by this article, in an amount 13 equal to thirty percent of the amount of credit allowed the taxpayer for 14 the same taxable year determined without regard to ratably allocating 15 the credit over a five year period as required by subsection (a) of 16 section 47 of the internal revenue code, with respect to a certified 17 historic structure under subsection (c)(3) of section 47 of the internal 18 revenue code with respect to a certified historic structure located 19 within the state. Provided, however, the credit shall not exceed one 20 hundred thousand dollars. 21 (a-1) If the taxpayer or transferee is a partner in a partnership or a 22 shareholder in a New York S corporation, then the credit caps imposed in 23 paragraph (a) of this subdivision shall be applied at the entity level, 24 so that the aggregate credit allowed to all the partners or shareholders 25 of each such entity in the taxable year does not exceed the credit cap 26 that is applicable in that taxable year. 27 (b) Tax credits allowed pursuant to this subdivision shall be allowed 28 in the taxable year that the qualified rehabilitation is placed in 29 service under section 167 of the federal internal revenue code. 30 (c) If the taxpayer is allowed a credit pursuant to section 47 of the 31 internal revenue code with respect to a qualified rehabilitation that is 32 also the subject of the credit allowed by this subdivision and that 33 credit pursuant to such section 47 is recaptured pursuant to subsection 34 (a) of section 50 of the internal revenue code, a portion of the credit 35 allowed under this subdivision must be added back by the taxpayer or 36 transferee in the same taxable year and in the same proportion as the 37 federal credit. 38 (d) The credit allowed under this subdivision for any taxable year 39 shall not reduce the tax due for such year to less than the amount 40 prescribed in paragraph (d) of subdivision one of section two hundred 41 ten of this article. However, if the amount of the credit allowed under 42 this subdivision for any taxable year reduces the tax to such amount or 43 if the taxpayer otherwise pays tax based on the fixed dollar minimum 44 amount, any amount of credit thus not deductible in such taxable year 45 shall be treated as an overpayment of tax to be recredited or refunded 46 in accordance with the provisions of section one thousand eighty-six of 47 this chapter. Provided, however, the provisions of subsection (c) of 48 section one thousand eighty-eight of this chapter notwithstanding, no 49 interest shall be paid thereon. 50 (e) [ 51 52 53 ] To be eligible for the credit 54 allowable under this subdivision, the rehabilitation project shall be in 55 whole or in part located within a census tract which is identified as 56 being at or below one hundred percent of the state median family income S. 3009--C 22 A. 3009--C

1 as calculated as of April first of each year using the most recent five 2 year estimate from the American community survey published by the United 3 States Census bureau. If there is a change in the most recent five year 4 estimate, a census tract that qualified for eligibility under this 5 program before information about the change was released will remain 6 eligible for a credit under this subdivision for an additional two 7 calendar years. The eligibility restrictions set forth in this paragraph 8 shall not be applicable if: 9 (i) a qualified rehabilitation project is undertaken within a state 10 park, state historic site, or other land owned by the state, that is 11 under the jurisdiction of the office of parks, recreation and historic 12 preservation; or 13 (ii) a qualified rehabilitation project is undertaken for the 14 provision of affordable housing and the taxpayer has entered into a 15 regulatory agreement with any state or federal agency or authority, or 16 any other government entity that is authorized to engage in the financ- 17 ing, construction or oversight of affordable housing within such enti- 18 ty's jurisdiction, and where such regulatory agreement sets forth 19 affordability requirements applicable for a period of not less than 20 thirty years and that is binding on all successors of the taxpayer. 21 (f) For purposes of this subdivision "small project" means qualified 22 rehabilitation expenditures totaling two million five hundred thousand 23 dollars or less. 24 (g)(i) A taxpayer allowed a credit pursuant to this subdivision may 25 transfer the credit, in whole or in part, to another person or entity, 26 who shall be referred to as the transferee, without regard to how any 27 tax credit authorized pursuant to section forty-seven of the internal 28 revenue code with respect to a qualified rehabilitation project may be 29 allocated and notwithstanding that such other person or entity owns no 30 interest in the qualified rehabilitation project or in an entity with an 31 ownership interest in the qualified rehabilitation project. A transferee 32 may not transfer any credit, or portion thereof, acquired by transfer. 33 (ii) A taxpayer seeking to transfer a credit allowed pursuant to this 34 subdivision must enter into a transfer contract with the transferee. The 35 transfer contract must specify: 36 (A) the building identification numbers for all buildings in the 37 project; 38 (B) the date each building was placed into service; 39 (C) the schedule of years for which the transfer credit may be claimed 40 and the amount of credit previously claimed; 41 (D) the amount of consideration received by the taxpayer for the 42 transfer credit; and 43 (E) the amount of credit being transferred. 44 (iii) No transfer shall be effective unless the taxpayer allowed a 45 credit pursuant to this subdivision and seeking to transfer the credit 46 files a transfer application with the commissioner of parks, recreation 47 and historic preservation prior to the transfer and such transfer appli- 48 cation is approved. The transfer application shall include the name and 49 federal identification numbers of the taxpayer and each proposed trans- 50 feree, the amount of credit proposed to be transferred to each proposed 51 transferee, a copy of the transfer contract, and such other information 52 as the commissioner or the commissioner of parks, recreation and histor- 53 ic preservation may require. The commissioner of parks, recreation and 54 historic preservation shall approve or deny each transfer application 55 and, if an application is denied, shall issue a written determination to 56 the taxpayer. If the transfer is approved, the commissioner of parks, S. 3009--C 23 A. 3009--C

1 recreation and historic preservation shall issue a transfer approval 2 certificate that provides the name of the transferor and all transfer- 3 ees, the amount of credit being transferred and such other information 4 as the commissioner of parks, recreation and historic preservation and 5 the commissioner deem necessary. A copy of the transfer approval certif- 6 icate must be attached to each transferee's tax return. The commissioner 7 of parks, recreation and historic preservation, in consultation with the 8 commissioner, may establish such other procedures and standards deemed 9 necessary for the transferability of credits allowed under this subdivi- 10 sion. 11 (iv) The commissioner of parks, recreation and historic preservation 12 shall forward copies of all transfer applications and attachments there- 13 to and approval certificates to the commissioner within thirty days 14 after the transfer is approved. 15 (v) A taxpayer allowed a credit pursuant to section forty-seven of the 16 internal revenue code with respect to a qualified rehabilitation that is 17 also the subject of the credit allowed by this subdivision shall remain 18 solely liable for all obligations and liabilities imposed on the taxpay- 19 er with respect to the credit allowed by this subdivision, none of which 20 shall apply to a party to whom the credit has been subsequently trans- 21 ferred. 22 § 2. Subsection (oo) of section 606 of the tax law, as amended by 23 chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472 24 of the laws of 2010, subparagraph (A) of paragraph 1 as amended by 25 section 1 of subpart B of part I of chapter 59 of the laws of 2023, 26 paragraph 3 as amended by section 1 of part RR of chapter 59 of the laws 27 of 2018, paragraph 4 as amended by section 1 of part F of chapter 59 of 28 the laws of 2013, paragraph 5 as amended by section 2 of part U of chap- 29 ter 59 of the laws of 2019, paragraph 6 as added by section 1 of part 30 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 31 (oo) Credit for rehabilitation of historic properties. (1) (A) For 32 taxable years beginning on or after January first, two thousand ten and 33 before January first, two thousand thirty, a taxpayer , or a transferee 34 of such a taxpayer as described in paragraph seven of this subsection, 35 shall be allowed a credit as hereinafter provided, against the tax 36 imposed by this article, in an amount equal to one hundred percent of 37 the amount of credit allowed the taxpayer with respect to a certified 38 historic structure, and one hundred fifty percent of the amount of cred- 39 it allowed the taxpayer with respect to a certified historic structure 40 that is a small project, under internal revenue code section 47(c)(3), 41 determined without regard to ratably allocating the credit over a five 42 year period as required by subsection (a) of such section 47, with 43 respect to a certified historic structure located within the state. 44 Provided, however, the credit shall not exceed five million dollars. For 45 taxable years beginning on or after January first, two thousand thirty, 46 a taxpayer , or a transferee of such a taxpayer as described in paragraph 47 seven of this subsection, shall be allowed a credit as hereinafter 48 provided, against the tax imposed by this article, in an amount equal to 49 thirty percent of the amount of credit allowed the taxpayer with respect 50 to a certified historic structure under internal revenue code section 51 47(c)(3), determined without regard to ratably allocating the credit 52 over a five year period as required by subsection (a) of such section 53 47, with respect to a certified historic structure located within the 54 state; provided, however, the credit shall not exceed one hundred thou- 55 sand dollars. S. 3009--C 24 A. 3009--C

1 (B) If the taxpayer or transferee is a partner in a partnership or a 2 shareholder of a New York S corporation, then the credit cap imposed in 3 subparagraph (A) of this paragraph shall be applied at the entity level, 4 so that the aggregate credit allowed to all the partners or shareholders 5 of each such entity in the taxable year does not exceed the credit cap 6 that is applicable in that taxable year. 7 (2) Tax credits allowed pursuant to this subsection shall be allowed 8 in the taxable year that the qualified rehabilitation is placed in 9 service under section 167 of the federal internal revenue code. 10 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 11 internal revenue code with respect to a qualified rehabilitation that is 12 also the subject of the credit allowed by this subsection and that cred- 13 it pursuant to such section 47 is recaptured pursuant to subsection (a) 14 of section 50 of the internal revenue code, a portion of the credit 15 allowed under this subsection must be added back by the taxpayer or 16 transferee in the same taxable year and in the same proportion as the 17 federal recapture. 18 (4) If the amount of the credit allowed under this subsection for any 19 taxable year shall exceed the taxpayer's tax for such year, the excess 20 shall be treated as an overpayment of tax to be credited or refunded in 21 accordance with the provisions of section six hundred eighty-six of this 22 article, provided, however, that no interest shall be paid thereon. 23 (5) [ 24 25 26 ] To be eligible for the credit 27 allowable under this subsection the rehabilitation project shall be in 28 whole or in part located within a census tract which is identified as 29 being at or below one hundred percent of the state median family income 30 as calculated as of April first of each year using the most recent five 31 year estimate from the American community survey published by the United 32 States Census bureau. If there is a change in the most recent five year 33 estimate, a census tract that qualified for eligibility under this 34 program before information about the change was released will remain 35 eligible for a credit under this subsection for an additional two calen- 36 dar years. The eligibility restrictions set forth in this paragraph 37 shall not be applicable if: 38 (A) a qualified rehabilitation project is undertaken within a state 39 park, state historic site, or other land owned by the state, that is 40 under the jurisdiction of the office of parks, recreation and historic 41 preservation; or 42 (B) a qualified rehabilitation project is undertaken for the provision 43 of affordable housing and the taxpayer has entered into a regulatory 44 agreement with any state or federal agency or authority, or any other 45 government entity that is authorized to engage in the financing, 46 construction or oversight of affordable housing within such entity's 47 jurisdiction, and where such regulatory agreement sets forth affordabil- 48 ity requirements applicable for a period of not less than thirty years 49 and that is binding on all successors of the taxpayer. 50 (6) For purposes of this subsection the term "small project" means 51 qualified rehabilitation expenditures totaling two million five hundred 52 thousand dollars or less. 53 (7)(A) A taxpayer allowed a credit pursuant to this subsection may 54 transfer the credit, in whole or in part, to another person or entity, 55 who shall be referred to as the transferee, without regard to how any 56 tax credit authorized pursuant to section forty-seven of the internal S. 3009--C 25 A. 3009--C

1 revenue code with respect to a qualified rehabilitation project may be 2 allocated and notwithstanding that such other person or entity owns no 3 interest in the qualified rehabilitation project or in an entity with an 4 ownership interest in the qualified rehabilitation project. A transferee 5 may not transfer any credit, or portion thereof, acquired by transfer. 6 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 7 subsection must enter into a transfer contract with the transferee. The 8 transfer contract must specify: 9 (i) the building identification numbers for all buildings in the 10 project; 11 (ii) the date each building was placed into service; 12 (iii) the schedule of years for which the transfer credit may be 13 claimed and the amount of credit previously claimed; 14 (iv) the amount of consideration received by the taxpayer for the 15 transfer credit; and 16 (v) the amount of credit being transferred. 17 (C) No transfer shall be effective unless the taxpayer allowed a cred- 18 it pursuant to this subsection and seeking to transfer the credit files 19 a transfer application with the commissioner of parks, recreation and 20 historic preservation prior to the transfer and such transfer applica- 21 tion is approved. The transfer application shall include the name and 22 federal identification numbers of the taxpayer and each proposed trans- 23 feree, the amount of credit proposed to be transferred to each proposed 24 transferee, a copy of the transfer contract, and such other information 25 as the commissioner or the commissioner of parks, recreation and histor- 26 ic preservation may require. The commissioner of parks, recreation and 27 historic preservation shall approve or deny each transfer application 28 and, if an application is denied, shall issue a written determination to 29 the taxpayer. If the transfer is approved, the commissioner of parks, 30 recreation and historic preservation shall issue a transfer approval 31 certificate that provides the name of the transferor and all transfer- 32 ees, the amount of credit being transferred and such other information 33 as the commissioner of parks, recreation and historic preservation and 34 the commissioner deem necessary. A copy of the transfer approval certif- 35 icate must be attached to each transferee's tax return. The commissioner 36 of parks, recreation and historic preservation, in consultation with the 37 commissioner, may establish such other procedures and standards deemed 38 necessary for the transferability of credits allowed under this 39 subsection. 40 (D) The commissioner of parks, recreation and historic preservation 41 shall forward copies of all transfer applications and attachments there- 42 to and approval certificates to the commissioner within thirty days 43 after the transfer is approved. 44 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 45 internal revenue code with respect to a qualified rehabilitation that is 46 also the subject of the credit allowed by this subsection shall remain 47 solely liable for all obligations and liabilities imposed on the taxpay- 48 er with respect to the credit allowed by this subsection, none of which 49 shall apply to a party to whom the credit has been subsequently trans- 50 ferred. 51 § 3. Subdivision (y) of section 1511 of the tax law, as added by chap- 52 ter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended 53 by section 5 of subpart B of part I of chapter 59 of the laws of 2023, 54 paragraph 3 as amended by section 3 of part RR of chapter 59 of the laws 55 of 2018, paragraph 4 as amended by section 4 of part F of chapter 59 of 56 the laws of 2013, paragraph 5 as amended by section 3 of part U of chap- S. 3009--C 26 A. 3009--C

1 ter 59 of the laws of 2019, paragraph 6 as added by section 3 of part 2 CCC of chapter 59 of the laws of 2021, is amended to read as follows: 3 (y) Credit for rehabilitation of historic properties. (1) (A) For 4 taxable years beginning on or after January first, two thousand ten and 5 before January first, two thousand thirty, a taxpayer , or a transferee 6 of such a taxpayer as described in paragraph seven of this subdivision, 7 shall be allowed a credit as hereinafter provided, against the tax 8 imposed by this article, in an amount equal to one hundred percent of 9 the amount of credit allowed the taxpayer with respect to a certified 10 historic structure, and one hundred fifty percent of the amount of cred- 11 it allowed the taxpayer with respect to a certified historic structure 12 that is a small project, under internal revenue code section 47(c)(3), 13 determined without regard to ratably allocating the credit over a five 14 year period as required by subsection (a) of such section 47, with 15 respect to a certified historic structure located within the state. 16 Provided, however, the credit shall not exceed five million dollars. For 17 taxable years beginning on or after January first, two thousand thirty, 18 a taxpayer , or a transferee of such a taxpayer as described in paragraph 19 seven of this subdivision, shall be allowed a credit as hereinafter 20 provided, against the tax imposed by this article, in an amount equal to 21 thirty percent of the amount of credit allowed the taxpayer with respect 22 to a certified historic structure under internal revenue code section 23 47(c)(3), determined without regard to ratably allocating the credit 24 over a five year period as required by subsection (a) of such section 47 25 with respect to a certified historic structure located within the state. 26 Provided, however, the credit shall not exceed one hundred thousand 27 dollars. 28 (B) If the taxpayer or transferee is a partner in a partnership, then 29 the cap imposed in subparagraph (A) of this paragraph shall be applied 30 at the entity level, so that the aggregate credit allowed to all the 31 partners of such partnership in the taxable year does not exceed the 32 credit cap that is applicable in that taxable year. 33 (2) Tax credits allowed pursuant to this subsection shall be allowed 34 in the taxable year that the qualified rehabilitation is placed in 35 service under section 167 of the federal internal revenue code. 36 (3) If the taxpayer is allowed a credit pursuant to section 47 of the 37 internal revenue code with respect to a qualified rehabilitation that is 38 also the subject of the credit allowed by this subdivision and that 39 credit pursuant to such section 47 is recaptured pursuant to subsection 40 (a) of section 50 of the internal revenue code, a portion of the credit 41 allowed under this subdivision in the taxable year the credit was 42 claimed must be added back by the taxpayer or transferee in the same 43 taxable year and in the same proportion as the federal recapture. 44 (4) The credit allowed under this subdivision for any taxable year 45 shall not reduce the tax due for such year to less than the minimum 46 fixed by paragraph four of subdivision (a) of section fifteen hundred 47 two or section fifteen hundred two-a of this article, whichever is 48 applicable. However, if the amount of credits allowed under this subdi- 49 vision for any taxable year reduces the tax to such amount, any amount 50 of credit thus not deductible in such taxable year shall be treated as 51 an overpayment of tax to be credited or refunded in accordance with the 52 provisions of section one thousand eighty-six of this chapter. Provided, 53 however, the provisions of subsection (c) of section one thousand eight- 54 y-eight of this chapter notwithstanding, no interest shall be paid ther- 55 eon. S. 3009--C 27 A. 3009--C

1 (5) [ 2 3 4 ] To be eligible for the credit 5 allowable under this subdivision, the rehabilitation project shall be in 6 whole or in part located within a census tract which is identified as 7 being at or below one hundred percent of the state median family income 8 as calculated as of April first of each year using the most recent five 9 year estimate from the American community survey published by the United 10 States Census bureau. If there is a change in the most recent five year 11 estimate, a census tract that qualified for eligibility under this 12 program before information about the change was released will remain 13 eligible for a credit under this subdivision for an additional two 14 calendar years. The eligibility restrictions set forth in this paragraph 15 shall not be applicable if: 16 (A) a qualified rehabilitation project is undertaken within a state 17 park, state historic site, or other land owned by the state, that is 18 under the jurisdiction of the office of parks, recreation and historic 19 preservation; or 20 (B) a qualified rehabilitation project is undertaken for the provision 21 of affordable housing and the taxpayer has entered into a regulatory 22 agreement with any state or federal agency or authority, or any other 23 government entity that is authorized to engage in the financing, 24 construction or oversight of affordable housing within such entity's 25 jurisdiction, and where such regulatory agreement sets forth affordabil- 26 ity requirements applicable for a period of not less than thirty years 27 and that is binding on all successors of the taxpayer. 28 (6) For purposes of this subdivision "small project" means qualified 29 rehabilitation expenditures totaling two million five hundred thousand 30 dollars or less. 31 (7)(A) A taxpayer allowed a credit pursuant to this subdivision may 32 transfer the credit, in whole or in part, to another person or entity, 33 who shall be referred to as the transferee, without regard to how any 34 tax credit authorized pursuant to section forty-seven of the internal 35 revenue code with respect to a qualified rehabilitation project may be 36 allocated and notwithstanding that such other person or entity owns no 37 interest in the qualified rehabilitation project or in an entity with an 38 ownership interest in the qualified rehabilitation project. A transferee 39 may not transfer any credit, or portion thereof, acquired by transfer. 40 (B) A taxpayer seeking to transfer a credit allowed pursuant to this 41 subdivision must enter into a transfer contract with the transferee. The 42 transfer contract must specify: 43 (i) the building identification numbers for all buildings in the 44 project; 45 (ii) the date each building was placed into service; 46 (iii) the schedule of years for which the transfer credit may be 47 claimed and the amount of credit previously claimed; 48 (iv) the amount of consideration received by the taxpayer for the 49 transfer credit; and 50 (v) the amount of credit being transferred. 51 (C) No transfer shall be effective unless the taxpayer allowed a cred- 52 it pursuant to this subdivision and seeking to transfer the credit files 53 a transfer application with the commissioner of parks, recreation and 54 historic preservation prior to the transfer and such transfer applica- 55 tion is approved. The transfer application shall include the name and 56 federal identification numbers of the taxpayer and each proposed trans- S. 3009--C 28 A. 3009--C

1 feree, the amount of credit proposed to be transferred to each proposed 2 transferee, a copy of the transfer contract, and such other information 3 as the commissioner or the commissioner of parks, recreation and histor- 4 ic preservation may require. The commissioner of parks, recreation and 5 historic preservation shall approve or deny each transfer application 6 and, if an application is denied, shall issue a written determination to 7 the taxpayer. If the transfer is approved, the commissioner of parks, 8 recreation and historic preservation shall issue a transfer approval 9 certificate that provides the name of the transferor and all transfer- 10 ees, the amount of credit being transferred and such other information 11 as the commissioner of parks, recreation and historic preservation and 12 the commissioner deem necessary. A copy of the transfer approval certif- 13 icate must be attached to each transferee's tax return. The commissioner 14 of parks, recreation and historic preservation, in consultation with the 15 commissioner, may establish such other procedures and standards deemed 16 necessary for the transferability of credits allowed under this subdivi- 17 sion. 18 (D) The commissioner of parks, recreation and historic preservation 19 shall forward copies of all transfer applications and attachments there- 20 to and approval certificates to the commissioner within thirty days 21 after the transfer is approved. 22 (E) A taxpayer allowed a credit pursuant to section forty-seven of the 23 internal revenue code with respect to a qualified rehabilitation that is 24 also the subject of the credit allowed by this subdivision shall remain 25 solely liable for all obligations and liabilities imposed on the taxpay- 26 er with respect to the credit allowed by this subdivision, none of which 27 shall apply to a party to whom the credit has been subsequently trans- 28 ferred. 29 § 4. This act shall take effect immediately and shall apply to taxable 30 years beginning on and after January 1, 2026.

31 PART F

32 Section 1. This Part enacts into law major components of legislation 33 relating to the purchase of residential real property by certain 34 purchasers, taxation relating thereto, and notice regarding nonsolicita- 35 tion orders adopted by the secretary of state. Each component is wholly 36 contained within a Subpart identified as Subparts A through C. The 37 effective date for each particular provision contained within such 38 Subpart is set forth in the last section of such Subpart. Any provision 39 in any section contained within a Subpart, including the effective date 40 of the Subpart, which makes a reference to a section "of this act", when 41 used in connection with that particular component, shall be deemed to 42 mean and refer to the corresponding section of the Subpart in which it 43 is found. Section three of this Part sets forth the general effective 44 date of this Part.

45 SUBPART A

46 Section 1. The real property law is amended by adding a new article 16 47 to read as follows: 48 ARTICLE 16 49 NINETY-DAY WAITING PERIOD FOR 50 SALE OF SINGLE-FAMILY AND TWO-FAMILY 51 RESIDENCES TO CERTAIN PURCHASERS 52 Section 520. Definitions. S. 3009--C 29 A. 3009--C

1 521. Ninety-day waiting period. 2 522. Enforcement. 3 § 520. Definitions. As used in this article, the following terms shall 4 have the following meanings: 5 1. "Community land trust" shall mean a nonprofit organization exempt 6 from certain taxes pursuant to section 501 (c) (3) or section 501(c) (4) 7 of the United States internal revenue code and/or that is incorporated 8 under the not-for-profit corporation law whose primary purpose is to 9 provide affordable housing by owning land and leasing or selling resi- 10 dential housing situated on that land to households that meet certain 11 income requirements. 12 2. (a) "Covered entity" shall mean an institutional real estate inves- 13 tor or an entity that receives funding from an institutional real estate 14 investor for the purchase of a single-family residence or two-family 15 residence. A loan provided in exchange for a mortgage of the residence 16 that is being purchased shall not be considered funding for the purposes 17 of this subdivision, provided that such mortgage must be of a type for 18 which members of the general public can apply. 19 (b) "Covered entity" shall not include: 20 (i) an organization which is described in section 501(c)(3) of the 21 Internal Revenue Code and exempt from tax under section 501(a) of the 22 Internal Revenue Code; 23 (ii) a land bank; 24 (iii) a community land trust; or 25 (iv) a creditor or its loan servicer acquiring ownership of real prop- 26 erty in full or partial satisfaction of a secured debt. 27 3. (a) "Institutional real estate investor" shall mean an entity or 28 combined group that, directly or indirectly: 29 (i) owns ten or more single-family residences and/or two-family resi- 30 dences; 31 (ii) manages or receives funds pooled from investors and acts as a 32 fiduciary with respect to one or more investors; and 33 (iii) has thirty million dollars or more in net value or assets under 34 management on any day during the taxable year. 35 (b) An entity is considered owning a single-family residence or two- 36 family residence if it directly owns the single-family residence or 37 two-family residence or indirectly owns ten percent or more of the 38 single-family residence or two-family residence. 39 4. "Land bank" shall mean an entity created in accordance with article 40 sixteen of the not-for-profit corporation law. 41 5. "Single-family residence" shall mean a residential property 42 consisting of one dwelling unit; provided that such term shall not 43 include: 44 (a) any single-family residence that is to be used as the principal 45 residence of any person who has an ownership interest in the covered 46 entity that seeks to purchase the single-family residence; or 47 (b) any single-family residence constructed, acquired, or operated 48 with federal, state, or local appropriated funding sources. 49 6. "Two-family residence" shall mean a residential property consisting 50 of two dwelling units; provided that such term shall not include: 51 (a) any two-family residence in which one of the dwelling units is to 52 be used as the principal residence of any person who has an ownership 53 interest in the covered entity that seeks to purchase the two-family 54 residence; or 55 (b) any two-family residence constructed, acquired, or operated with 56 federal, state, or local appropriated funding sources. S. 3009--C 30 A. 3009--C

1 § 521. Ninety-day waiting period. 1. Notwithstanding any other 2 provision of law, on and after July first, two thousand twenty-five, it 3 shall be unlawful for a covered entity to purchase, acquire, or offer to 4 purchase or acquire any interest in a single-family residence or two-fa- 5 mily residence unless the single-family residence or two-family resi- 6 dence has been listed for sale to the general public for at least ninety 7 days. 8 2. The ninety-day waiting period set forth in subdivision one of this 9 section shall restart if the seller changes the asking price for the 10 single-family residence or two-family residence, and a covered entity 11 shall be prohibited from purchasing, acquiring, or offering to purchase 12 or acquire any interest in the single-family residence or two-family 13 residence until it has been listed for sale to the general public at the 14 new asking price for at least an additional ninety days. 15 3. A covered entity that violates subdivision one or two of this 16 section may be subject to civil damages and penalties in an amount not 17 to exceed two hundred fifty thousand dollars. 18 4. (a) At the time an offer is made by a covered entity purchasing 19 such residence, such covered entity shall be required to submit to the 20 seller or anyone acting as an agent for such seller, a form that has 21 been signed by the covered entity purchaser, or an authorized agent 22 thereof, and notarized, stating that the purchaser is a covered entity. 23 (b) Within three days of submitting a form to a seller or seller's 24 agent pursuant to paragraph (a) of this subdivision, a covered entity 25 shall file such form with the department of law. The department of law 26 may issue regulations or guidance regarding the procedure for making 27 such filing. 28 (c) Any covered entity or covered entity's agent that violates this 29 subdivision may be subject to civil damages and penalties in an amount 30 not to exceed ten thousand dollars. 31 5. The following form shall be completed by a covered entity purchas- 32 ing a single-family residence or two-family residence: 33 "COMPLIANCE WITH REAL PROPERTY LAW ARTICLE 16 34 Pursuant to Article 16 of the New York State Real Property Law, 35 covered entities are required to wait at least 90 days after a single- 36 family residence or two-family residence has been listed for sale to the 37 general public to purchase, acquire, or offer to purchase or acquire any 38 interest in the single-family residence or two-family residence. At the 39 time an offer is made, the covered entity or its agent is required to 40 complete this form and submit it to the seller stating that the purchas- 41 er is a covered entity. Within three days of submitting the form to the 42 seller, the covered entity or its agent is required to file this form 43 with the New York state office of the attorney general, in accordance 44 with any regulations or guidance that the attorney general may issue 45 with respect to such filing. 46 The buyer of this single-family residence or two-family residence is a 47 covered entity as defined in New York State Real Property Law § 520. The 48 buyer is subject to the statutory 90-day waiting period. Failure to 49 comply with the 90-day waiting period may result in civil fines and 50 penalties. 51 Any covered entity or covered entity's agent that does not complete 52 and submit this form as required by statute, or abide by the statutory 53 waiting period, may be liable for civil damages. 54 IDENTIFYING INFORMATION 55 BUYER OR BUYERS OF THIS RESIDENCE: 56 ____________________________ S. 3009--C 31 A. 3009--C

1 Printed Name and Mailing Address 2 ____________________________ 3 Printed Name and Mailing Address 4 By signing this form, the buyer or its agent affirms that the statements 5 herein are true under the penalties of perjury. 6 SIGNATURE OF BUYER(S) OR ITS AGENT OF THIS SINGLE-FAMILY RESIDENCE OR 7 TWO-FAMILY RESIDENCE: 8 ____________________________ 9 Signature Date 10 ____________________________ 11 Signature Date 12 ____________________________ 13 SIGNATURE OF WITNESSES 14 ____________________________ 15 Signature Date 16 ____________________________ 17 Signature Date 18 ____________________________ 19 NOTARY ACKNOWLEDGEMENT 20 (insert notary acknowledgement for this form here)" 21 § 522. Enforcement. Notwithstanding any other provision of law, the 22 attorney general of the state of New York shall have the authority to 23 enforce the provisions of section five hundred twenty-one of this arti- 24 cle by applying, in the name of the people of the state of New York, to 25 the supreme court of the state of New York, on notice of five days, for 26 an order enjoining the continuance of such violative activity, including 27 but not limited to by bringing an action for injunctive or declaratory 28 relief if a single-family residence or two-family residence is in the 29 process of being or has been sold in a manner that contravenes the 30 requirements of section five hundred twenty-one of this article, and 31 imposing civil damages and penalties pursuant to subdivisions three and 32 four of section five hundred twenty-one of this article, as applicable. 33 § 2. Severability. If any provision of this act, or any application of 34 any provision of this act, is held to be invalid, that shall not affect 35 the validity or effectiveness of any other provision of this act, or of 36 any other application of any provision of this act, which can be given 37 effect without that provision or application; and to that end, the 38 provisions and applications of this act are severable. 39 § 3. This act shall take effect on the one hundred twentieth day after 40 it shall have become a law. Effective immediately, the addition, amend- 41 ment and/or repeal of any rule or regulation necessary for the implemen- 42 tation of this act on its effective date are authorized to be made and 43 completed on or before such effective date.

44 SUBPART B

45 Section 1. Subdivision 9 of section 208 of the tax law is amended by 46 adding a new paragraph (c-4) to read as follows: 47 (c-4) Depreciation and interest deduction adjustments for covered 48 properties owned by an institutional real estate investor. (1) Notwith- 49 standing any other provision of this section, in the case of a corpo- 50 ration or combined group that is an institutional real estate investor 51 or a partner, member or shareholder of an entity that is an institu- 52 tional real estate investor, entire net income shall be computed with 53 the adjustments for depreciation and interest related to covered proper- 54 ties as set forth in this paragraph. S. 3009--C 32 A. 3009--C

1 (2) Definitions. (A) "Institutional real estate investor" means an 2 entity or combined group that, directly or indirectly (i) owns ten or 3 more covered properties, (ii) manages funds pooled from investors and 4 acts as a fiduciary with respect to one or more investors, and (iii) has 5 thirty million dollars or more in net value or assets under management 6 on any day during the taxable year. An entity is considered owning a 7 covered property if it directly owns the covered property or indirectly 8 owns ten percent or more of the covered property. 9 (B) "Covered property" means a residential property consisting of no 10 more than two dwelling units located in New York state. 11 (3) Depreciation deductions. With respect to covered properties, no 12 deduction for depreciation allowed under the internal revenue code or 13 this section shall be allowed. 14 (4) Interest deductions. With respect to covered properties, the 15 interest deduction for federal income tax purposes allowed under section 16 one hundred sixty-three of the internal revenue code shall not be 17 allowed and must be added back in the computation of entire net income, 18 except with respect to interest paid or accrued in the taxable year when 19 such covered property is sold to an individual for use as the principal 20 residence of such individual or sold to a nonprofit organization that 21 has as its principal purpose the creation, development, or preservation 22 of affordable housing. For purposes of this subparagraph, any amount of 23 interest that would have been allowed under section one hundred sixty- 24 three of the internal revenue code in connection with a covered property 25 but for an election to treat such interest as chargeable to capital 26 account shall be treated as an amount allowed under section one hundred 27 sixty-three of the internal revenue code. 28 § 2. Section 612 of the tax law is amended by adding a new subsection 29 (y) to read as follows: 30 (y) Depreciation and interest adjustments for covered properties owned 31 by an institutional real estate investor. (1) Notwithstanding any other 32 provision of this section, in the case of a taxpayer that is a partner, 33 member or shareholder of an entity that is an institutional real estate 34 investor as defined in paragraph (c-4) of subdivision nine of section 35 two hundred eight of this chapter, New York adjusted gross income shall 36 be computed with adjustments for depreciation and interest related to 37 covered properties as set forth in this subsection. 38 (2) Depreciation deductions. With respect to covered properties, no 39 deduction for depreciation allowed under the internal revenue code or 40 this section shall be allowed. 41 (3) Federal interest deductions. With respect to covered properties, 42 the interest deduction for federal income tax purposes allowed under 43 section one hundred sixty-three of the internal revenue code shall not 44 be allowed and must be added back in the computation of New York 45 adjusted gross income, except with respect to interest paid or accrued 46 in the taxable year when such covered property is sold to an individual 47 for use as the principal residence of such individual or sold to a 48 nonprofit organization that has as its principal purpose the creation, 49 development, or preservation of affordable housing. For purposes of this 50 paragraph, any amount of interest that would have been allowed under 51 section one hundred sixty-three of the internal revenue code in 52 connection with a covered property but for an election to treat such 53 interest as chargeable to capital account shall be treated as an amount 54 allowed under section one hundred sixty-three of the internal revenue 55 code. S. 3009--C 33 A. 3009--C

1 § 3. Subdivision (b) of section 1503 of the tax law is amended by 2 adding a new paragraph 17 to read as follows: 3 (17) Depreciation and interest adjustments for covered properties 4 owned by an institutional real estate investor. (A) Notwithstanding any 5 other provision of this section, in the case of a taxpayer that is an 6 institutional real estate investor or partner, member or shareholder of 7 an entity that is an institutional real estate investor as defined in 8 paragraph (c-4) of subdivision nine of section two hundred eight of this 9 chapter, entire net income shall be computed with adjustments for depre- 10 ciation and interest related to covered properties as set forth in this 11 paragraph. 12 (B) Depreciation deductions. With respect to covered properties, no 13 deduction for depreciation allowed under the internal revenue code or 14 this section shall be allowed. 15 (C) Federal interest deductions. With respect to covered properties, 16 the interest deduction for federal income tax purposes allowed under 17 section one hundred sixty-three of the internal revenue code shall not 18 be allowed and must be added back in the computation of entire net 19 income, except with respect to interest paid or accrued in the taxable 20 year when such covered property is sold to an individual for use as the 21 principal residence of such individual or sold to a nonprofit organiza- 22 tion that has as its principal purpose the creation, development, or 23 preservation of affordable housing. For purposes of this subparagraph, 24 any amount of interest that would have been allowed under section one 25 hundred sixty-three of the internal revenue code in connection with a 26 covered property but for an election to treat such interest as chargea- 27 ble to capital account shall be treated as an amount allowed under 28 section one hundred sixty-three of the internal revenue code. 29 § 4. This act shall take effect immediately and shall apply to taxable 30 years beginning on or after January 1, 2025.

31 SUBPART C

32 Section 1. Paragraph (a) of subdivision 3 of section 442-h of the real 33 property law, as amended by chapter 505 of the laws of 2001, is amended 34 to read as follows: 35 (a) If the secretary of state determines that some owners of residen- 36 tial real property within a defined geographic area are subject to 37 intense and repeated solicitation by real estate brokers and salesper- 38 sons to place their property for sale with such real estate brokers or 39 salespersons, or are subject to intense and repeated solicitation by 40 other persons regularly engaged in the trade or business of buying and 41 selling real estate to sell their real estate, the secretary of state 42 may adopt a rule establishing a cease and desist zone, which zone shall 43 be bounded or otherwise specifically defined in the rule. After the 44 secretary of state has established a cease and desist zone, the owners 45 of residential real property located within the zone may file an owner's 46 statement with the secretary of state expressing their wish not to be 47 solicited by real estate brokers, salespersons or other persons regular- 48 ly engaged in the trade or business of buying and selling real estate. 49 The form and content of the statement shall be prescribed by the secre- 50 tary of state. After a cease and desist zone has been established by 51 the secretary of state, the secretary of state shall provide public 52 notice on its website of such zone, shall publish notice of such zone at 53 least once annually in a newspaper of general circulation in the area 54 affected by the cease and desist zone, and shall provide such further S. 3009--C 34 A. 3009--C

1 public notice of such cease and desist zone as the secretary of state 2 deems necessary to maximize awareness to owners of residential real 3 property located within the cease and desist zone that they may file a 4 statement pursuant to this paragraph. After a cease and desist zone has 5 been established by the secretary of state, no real estate broker, 6 salesperson or other person regularly engaged in the trade or business 7 of buying and selling real estate shall solicit a listing from any owner 8 who has filed a statement with the secretary of state if such owner's 9 name appears on the current cease and desist list prepared by the secre- 10 tary of state. The prohibition on solicitation shall apply to direct 11 forms of solicitation such as the use of the telephone, the mail, 12 personal contact and other forms of direct solicitation as may be speci- 13 fied by the secretary of state. 14 § 2. This act shall take effect on the one hundred twentieth day after 15 it shall have become a law. Effective immediately, the addition, amend- 16 ment and/or repeal of any rule or regulation necessary for the implemen- 17 tation of this act on its effective date are authorized to be made and 18 completed on or before such effective date. 19 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 20 sion, section or part of this act shall be adjudged by any court of 21 competent jurisdiction to be invalid, such judgment shall not affect, 22 impair, or invalidate the remainder thereof, but shall be confined in 23 its operation to the clause, sentence, paragraph, subdivision, section 24 or part thereof directly involved in the controversy in which such judg- 25 ment shall have been rendered. It is hereby declared to be the intent of 26 the legislature that this act would have been enacted even if such 27 invalid provisions had not been included herein. 28 § 3. This act shall take effect immediately, provided, however, that 29 the applicable effective date of Subparts A through C of this act shall 30 be as specifically set forth in the last section of such Subparts.

31 PART G

32 Intentionally Omitted

33 PART H

34 Section 1. This Part enacts into law major components of legislation 35 relating to the excelsior jobs program and the empire state jobs 36 retention program. Each component is wholly contained within a Subpart 37 identified as Subpart A and Subpart B. The effective date for each 38 particular provision contained within such Subpart is set forth in the 39 last section of such Subpart. Any provision in any section contained 40 within a Subpart, including the effective date of the Subpart, which 41 makes a reference to a section "of this act", when used in connection 42 with that particular component, shall be deemed to mean and refer to the 43 corresponding section of the Subpart in which it is found. Section three 44 of this Part sets forth the general effective date of this Part.

45 SUBPART A

46 Section 1. Section 352 of the economic development law is amended by 47 adding a new subdivision 25 to read as follows: 48 25. "Semiconductor supply chain project" means a project deemed by the 49 commissioner to make products or develop technologies that are primarily S. 3009--C 35 A. 3009--C

1 aimed at supporting the growth of the semiconductor manufacturing and 2 related equipment and material supplier sector. "Semiconductor supply 3 chain project" shall include, but need not be limited to, semiconductor 4 device manufacturing, producers of component parts, direct input materi- 5 als and equipment necessary for the manufacture of semiconductor chips, 6 machinery, equipment, and materials necessary for the operational effi- 7 ciency of semiconductor manufacturing facilities, other such inputs 8 directly supportive of the domestic production of semiconductor chips, 9 and companies engaged in the assembly, testing, packaging and advanced 10 packaging semiconductor value chain. "Semiconductor supply chain 11 project" shall not include a project primarily composed of: (i) machin- 12 ery, equipment, or materials that are inputs to manufacturing generally, 13 but are not direct inputs to semiconductor manufacturing in specific; 14 (ii) the production of products or development of technologies that 15 would produce only marginal and incremental benefits to the semiconduc- 16 tor manufacturing sector; (iii) projects that would otherwise qualify as 17 a Green CHIPS project as defined in section twenty-four of this section. 18 § 2. Paragraphs (m) and (n) of subdivision 1 of section 353 of the 19 economic development law, as amended by chapter 494 of the laws of 2022, 20 are amended and a new paragraph (o) is added to read as follows: 21 (m) as a participant operating in one of the industries listed in 22 paragraphs (a) through (k) of this subdivision and operating or sponsor- 23 ing child care services to its employees as defined in section three 24 hundred fifty-two of this article; [ ] 25 (n) as a Green CHIPS project[ ] ; or 26 (o) as a company operating in one of the industries listed in para- 27 graphs (a) through (k) of this subdivision and engaging in a semiconduc- 28 tor supply chain project as defined in section three hundred fifty-two 29 of this article. 30 § 3. Subdivisions 1, 2 and 3 of section 355 of the economic develop- 31 ment law, as amended by chapter 494 of the laws of 2022, are amended to 32 read as follows: 33 1. Excelsior jobs tax credit component. A participant in the excelsior 34 jobs program shall be eligible to claim a credit for each net new job it 35 creates in New York state. In a project that is not a green project, the 36 amount of such credit per job shall be equal to the product of the gross 37 wages paid and up to 6.85 percent. In a green project, or a Green CHIPS 38 project, the amount of such credit per job shall be equal to the product 39 of the gross wages paid and up to 7.5 percent. Provided, however, given 40 the transformational nature of Green CHIPS projects, only the first two 41 hundred thousand dollars of gross wages per job shall be eligible for 42 this credit. The maximum amount of gross wages per job for a Green CHIPS 43 project may be adjusted for inflation at an annual amount determined by 44 the commissioner in a manner substantially similar to the cost of living 45 adjustments calculated by the United States Social Security Adminis- 46 tration based on changes in consumer price indices or a rate of four 47 percent per year, whichever is higher. In a semiconductor supply chain 48 project, the amount of such credit per job shall be equal to the product 49 of the gross wages paid and up to seven percent. 50 2. Excelsior investment tax credit component. A participant in the 51 excelsior jobs program shall be eligible to claim a credit on qualified 52 investments. In a project that is not a green project, the credit shall 53 be equal to two percent of the cost or other basis for federal income 54 tax purposes of the qualified investment. In a green project, the credit 55 shall be equal to five percent of the cost or other basis for federal 56 income tax purposes of the qualified investment. In a project for child S. 3009--C 36 A. 3009--C

1 care services or a Green CHIPS project, the credit shall be up to five 2 percent of the cost or other basis for federal income tax purposes of 3 the qualified investment in child care services or in the Green CHIPS 4 project as applicable. In a semiconductor supply chain project, the 5 credit shall be up to three percent of the cost or other basis for 6 federal income tax purposes of the qualified investment. A participant 7 may not claim both the excelsior investment tax credit component and the 8 investment tax credit set forth in subdivision one of section two 9 hundred ten-B, subsection (a) of section six hundred six, the former 10 subsection (i) of section fourteen hundred fifty-six, or subdivision (q) 11 of section fifteen hundred eleven of the tax law for the same property 12 in any taxable year, except that a participant may claim both the 13 excelsior investment tax credit component and the investment tax credit 14 for research and development property. In addition, a taxpayer who or 15 which is qualified to claim the excelsior investment tax credit compo- 16 nent and is also qualified to claim the brownfield tangible property 17 credit component under section twenty-one of the tax law may claim 18 either the excelsior investment tax credit component or such tangible 19 property credit component, but not both with regard to a particular 20 piece of property. A credit may not be claimed until a business enter- 21 prise has received a certificate of tax credit, provided that qualified 22 investments made on or after the issuance of the certificate of eligi- 23 bility but before the issuance of the certificate of tax credit to the 24 business enterprise, may be claimed in the first taxable year for which 25 the business enterprise is allowed to claim the credit. Expenses 26 incurred prior to the date the certificate of eligibility is issued are 27 not eligible to be included in the calculation of the credit. 28 3. Excelsior research and development tax credit component. A partic- 29 ipant in the excelsior jobs program shall be eligible to claim a credit 30 equal to fifty percent of the portion of the participant's federal 31 research and development tax credit that relates to the participant's 32 research and development expenditures in New York state during the taxa- 33 ble year; provided however, if not a green project, the excelsior 34 research and development tax credit shall not exceed six percent of the 35 qualified research and development expenditures attributable to activ- 36 ities conducted in New York state, or, if a green project or a Green 37 CHIPS project, the excelsior research and development tax credit shall 38 not exceed eight percent of the research and development expenditures 39 attributable to activities conducted in New York state , or if a semicon- 40 ductor supply chain project, the excelsior research and development tax 41 credit shall not exceed seven percent of the qualified research and 42 development expenditures attributable to activities conducted in New 43 York state . If the federal research and development credit has expired, 44 then the research and development expenditures relating to the federal 45 research and development credit shall be calculated as if the federal 46 research and development credit structure and definition in effect in 47 two thousand nine were still in effect. Notwithstanding any other 48 provision of this chapter to the contrary, research and development 49 expenditures in this state, including salary or wage expenses for jobs 50 related to research and development activities in this state, may be 51 used as the basis for the excelsior research and development tax credit 52 component and the qualified emerging technology company facilities, 53 operations and training credit under the tax law. 54 § 4. Section 359 of the economic development law, as amended by chap- 55 ter 494 of the laws of 2022, is amended to read as follows: S. 3009--C 37 A. 3009--C

1 § 359. Cap on tax credit. 1. Except with respect to tax credits issued 2 to Green CHIPS projects as articulated in subdivision four of this 3 section, the total amount of tax credits issued by the commissioner for 4 any taxable year may not exceed the limitations set forth in this subdi- 5 vision. Except with respect to tax credits issued to Green CHIPS 6 projects as articulated in subdivision four of this section, one-half of 7 any amount of tax credits not awarded for a particular taxable year may 8 be used by the commissioner to award tax credits in another taxable 9 year.

10 Credit components in the aggregate With respect to taxable 11 shall not exceed: years beginning in:

12 $ 50 million 2011 13 $ 100 million 2012 14 $ 150 million 2013 15 $ 200 million 2014 16 $ 250 million 2015 17 $ 183 million 2016 18 $ 183 million 2017 19 $ 183 million 2018 20 $ 183 million 2019 21 $ 183 million 2020 22 $ 183 million 2021 23 $ 133 million 2022 24 $ 83 million 2023 25 $ 36 million 2024 26 $ 200 million 2025 27 $ 200 million 2026 28 $ 200 million 2027 29 $ 200 million 2028 30 $ 200 million 2029 31 $ 200 million 2030 32 $ 200 million 2031 33 $ 200 million 2032 34 $ 200 million 2033 35 $ 200 million 2034 36 2. Twenty-five percent of tax credits shall be allocated to businesses 37 accepted into the program under subdivision four of section three 38 hundred fifty-three of this article and seventy-five percent of tax 39 credits shall be allocated to businesses accepted into the program under 40 subdivision three of section three hundred fifty-three of this article. 41 3. Provided, however, if by September thirtieth of a calendar year, 42 the department has not allocated the full amount of credits available in 43 that year to either: (i) businesses accepted into the program under 44 subdivision four of section three hundred fifty-three of this article or 45 (ii) businesses accepted into the program under subdivision three of 46 section three hundred fifty-three of this article, the commissioner may 47 allocate any remaining tax credits to businesses referenced in this 48 paragraph as needed; provided, however, that under no circumstances may 49 the aggregate statutory cap for all program years be exceeded. One 50 hundred percent of the unawarded amounts remaining at the end of two 51 thousand twenty-nine may be allocated in subsequent years, notwithstand- 52 ing the fifty percent limitation on any amounts of tax credits not 53 awarded in taxable years two thousand eleven through two thousand twen- S. 3009--C 38 A. 3009--C

1 ty-nine. Provided, however, no tax credits may be allowed for taxable 2 years beginning on or after January first, two thousand [ ] fifty . 3 4. The total amount of tax credits issued by the commissioner for the 4 taxable years two thousand twenty-two to two thousand forty-one for 5 Green CHIPS projects shall not exceed five hundred million per year. One 6 hundred percent of any amount of tax credits not awarded for a partic- 7 ular taxable year may be used by the commissioner to award tax credits 8 in another taxable year. Notwithstanding the foregoing, Green CHIPS 9 projects may be allowed to claim credits for taxable years up to January 10 first, two thousand fifty. 11 § 5. Article 22 of the economic development law is REPEALED. 12 § 6. Paragraph (a) of subdivision 50 of section 210-B of the tax law, 13 as added by section 2 of part O of chapter 59 of the laws of 2015, is 14 amended to read as follows: 15 (a) [ ] For taxable years beginning before January first, two thousand 16 twenty-nine, a taxpayer that has been approved by the commissioner of 17 economic development to participate in the employee training incentive 18 program and has been issued a certificate of tax credit pursuant to 19 section four hundred forty-three of the economic development law shall 20 be allowed to claim a credit against the tax imposed by this article. 21 The credit shall equal fifty percent of a taxpayer's eligible training 22 costs, up to a credit of ten thousand dollars per employee completing 23 eligible training pursuant to paragraph (a) of subdivision three of 24 section four hundred forty-one of the economic development law. The 25 credit shall equal fifty percent of the stipend paid to an intern, up to 26 a credit of three thousand dollars per intern completing eligible train- 27 ing pursuant to paragraph (b) of subdivision three of section four 28 hundred forty-one of the economic development law. In no event shall a 29 taxpayer be allowed a credit greater than the amount of credit listed on 30 the certificate of tax credit issued by the commissioner of economic 31 development. The credit will be allowed in the taxable year in which the 32 eligible training is completed. 33 § 7. Paragraph 1 of subsection (ddd) of section 606 of the tax law, as 34 added by section 3 of part O of chapter 59 of the laws of 2015, is 35 amended to read as follows: 36 (1) [ ] For taxable years beginning before January first, two thousand 37 twenty-nine, a taxpayer that has been approved by the commissioner of 38 economic development to participate in the employee training incentive 39 program and has been issued a certificate of tax credit pursuant to 40 section four hundred forty-three of the economic development law shall 41 be allowed to claim a credit against the tax imposed by this article. 42 The credit shall equal fifty percent of a taxpayer's eligible training 43 costs, up to a credit of ten thousand dollars per employee completing 44 eligible training pursuant to paragraph (a) of subdivision three of 45 section four hundred forty-one of the economic development law. The 46 credit shall equal fifty percent of the stipend paid to an intern, up to 47 a credit of three thousand dollars per intern completing eligible train- 48 ing pursuant to paragraph (b) of subdivision three of section four 49 hundred forty-one of the economic development law. In no event shall a 50 taxpayer be allowed a credit greater than the amount listed on the 51 certificate of tax credit issued by the commissioner of economic devel- 52 opment. In the case of a taxpayer who is a partner in a partnership, 53 member of a limited liability company or shareholder in an S corpo- 54 ration, the taxpayer shall be allowed its pro rata share of the credit 55 earned by the partnership, limited liability company or S corporation. S. 3009--C 39 A. 3009--C

1 The credit will be allowed in the taxable year in which the eligible 2 training is completed. 3 § 8. The economic development law is amended by adding a new article 4 17-A to read as follows:

5 ARTICLE 17-A 6 SEMICONDUCTOR RESEARCH AND DEVELOPMENT PROJECT PROGRAM 7 Section 359-a. Short title. 8 359-b. Statement of legislative findings and declaration. 9 359-c. Definitions. 10 359-d. Eligibility criteria. 11 359-e. Application and approval process. 12 359-f. Powers and duties of the commissioner. 13 359-g. Semiconductor research and development tax credit. 14 359-h. Reporting. 15 § 359-a. Short title. This article shall be known and may be cited as 16 the "semiconductor research and development project act". 17 § 359-b. Statement of legislative findings and declaration. It is 18 hereby found and declared that New York state needs, as a matter of 19 public policy, to create competitive financial incentives to attract 20 large scale semiconductor research and development projects to New York 21 state, and to position New York state to be at the center of cutting 22 edge innovations in the semiconductor industry. 23 § 359-c. Definitions. For the purposes of this article: 24 1. "Certificate of eligibility" means the document issued by the 25 department to an applicant that has completed an application to be 26 admitted into the semiconductor research and development project program 27 and has been accepted into the program by the department. Possession of 28 a certificate of eligibility does not by itself guarantee the eligibil- 29 ity to claim the tax credit. 30 2. "Certificate of tax credit" means the document issued to a partic- 31 ipant by the department, after the department has verified that the 32 participant has met all applicable eligibility criteria in this article. 33 The certificate shall be issued annually if such criteria are satisfied 34 and shall specify the exact amount of the tax credit under this article 35 that a participant may claim and shall specify the taxable year in which 36 such credit may be claimed. 37 3. "Participant" means a business entity that: 38 (a) has completed an application prescribed by the department to be 39 admitted into the program; 40 (b) has been issued a certificate of eligibility by the department; 41 (c) has demonstrated that it meets the eligibility criteria in section 42 three hundred fifty-nine-d and subdivision two of section three hundred 43 fifty-nine-e of this article; and 44 (d) has been certified as a participant by the commissioner. 45 4. "Preliminary schedule of benefits" means the aggregate amount of 46 the tax credit that a participant in the semiconductor research and 47 development project program may be eligible to receive pursuant to this 48 article. The schedule shall indicate the annual amount of the credit a 49 participant may claim in each of its ten years of eligibility. The 50 preliminary schedule of benefits shall be issued by the department when 51 the department approves the application for admission into the program. 52 5. "Qualified investment" means an investment in tangible property 53 (including a building or a structural component of a building) owned by 54 a business enterprise which: S. 3009--C 40 A. 3009--C

1 (a) is depreciable pursuant to section one hundred sixty-seven of the 2 internal revenue code; 3 (b) has a useful life of four years or more; 4 (c) is acquired by purchase as defined in section one hundred seven- 5 ty-nine (d) of the internal revenue code; 6 (d) has a situs in this state; and 7 (e) is placed in service in the state on or after the date the certif- 8 icate of eligibility is issued to the business enterprise. 9 6. "Semiconductor research and development project" means a project 10 for a physical research and development facility, deemed by the commis- 11 sioner as being primarily aimed at supporting research and development 12 within the semiconductor manufacturing and related equipment and materi- 13 al supplier sector. Such project shall incur at least one hundred 14 million dollars in qualified investment in New York state. Such project 15 must lead to the establishment and operation of a research and develop- 16 ment facility separate and apart from new or existing semiconductor or 17 semiconductor supply chain manufacturing facilities. 18 § 359-d. Eligibility criteria. 1. To be a participant in the semicon- 19 ductor research and development project program, a business entity shall 20 operate in New York state and be undertaking a semiconductor research 21 and development project as defined in section three hundred fifty-nine-c 22 of this article. 23 2. A business entity must be in compliance with all worker protection 24 and environmental laws and regulations. In addition, a business entity 25 may not owe past due state taxes or local property taxes unless the 26 business entity is making payments and complying with an approved bind- 27 ing payment agreement entered into with the taxing authority. 28 § 359-e. Application and approval process. 1. A business enterprise 29 must submit a completed application as prescribed by the commissioner. 30 2. As part of such application, each business enterprise must: 31 (a) Agree to allow the department of taxation and finance to share the 32 business enterprise's tax information with the department. However, any 33 information shared as a result of this agreement shall not be available 34 for disclosure or inspection under the state freedom of information law; 35 (b) Agree to allow the department of labor to share its employer 36 information with the department. However, any information shared as a 37 result of this agreement shall not be available for disclosure or 38 inspection under the state freedom of information law; 39 (c) Allow the department and its agents access to any and all books 40 and records the department may require to monitor compliance; 41 (d) Provide to the department, upon request, a plan outlining the 42 schedule for meeting the investment requirements as set forth in subdi- 43 vision six of section three hundred fifty-nine-c of this article. Such 44 plan must include the amount and description of projected qualified 45 investments for which it plans to claim the semiconductor research and 46 development tax credit; 47 (e) Agree to allow the department and the department of taxation and 48 finance to share and exchange information contained in or derived from 49 the applications for admission into the semiconductor research and 50 development project program and the credit claim forms submitted to the 51 department of taxation and finance. However, any information shared as a 52 result of this agreement shall not be available for disclosure or 53 inspection under the state freedom of information law. 54 (f) Certify, under penalty of perjury, that it is in substantial 55 compliance with all environmental, worker protection, and local, state, 56 and federal tax laws. S. 3009--C 41 A. 3009--C

1 3. After reviewing a business enterprise's completed application and 2 determining that the business enterprise will meet the condition set 3 forth in subdivision six of section three hundred fifty-nine-c of this 4 article, the department may admit the applicant into the program and 5 provide the applicant with a certificate of eligibility and a prelimi- 6 nary schedule of benefits by year based on the applicant's projections 7 as set forth in its application. This preliminary schedule of benefits 8 delineates the maximum possible benefits an applicant may receive. 9 4. In order to become a participant in the program, an applicant must 10 submit evidence that it satisfies the eligibility criteria specified in 11 section three hundred fifty-nine-d of this article and subdivision two 12 of this section in such form as the commissioner may prescribe. After 13 reviewing such evidence and finding it sufficient, the department shall 14 certify the applicant as a participant and issue to that participant a 15 certificate of tax credit for one taxable year. To receive a certificate 16 of tax credit for subsequent taxable years, the participant must submit 17 to the department a performance report demonstrating that the partic- 18 ipant continues to satisfy the eligibility criteria specified in this 19 article. 20 5. A participant may claim tax benefits commencing in the first taxa- 21 ble year that the business enterprise receives a certificate of tax 22 credit. A participant may claim such benefits for the next nine consec- 23 utive taxable years, provided that the participant demonstrates to the 24 department that it continues to satisfy the eligibility criteria speci- 25 fied in section three hundred fifty-nine-d of this article and subdivi- 26 sion two of this section in each of those taxable years. 27 § 359-f. Powers and duties of the commissioner. 1. The commissioner 28 may promulgate regulations establishing an application process and 29 eligibility criteria, that will be applied consistent with the purposes 30 of this article, so as not to exceed the annual cap on tax credits set 31 forth in section three hundred fifty-nine-g of this article which, 32 notwithstanding any provisions to the contrary in the state administra- 33 tive procedure act, may be adopted on an emergency basis. 34 2. The commissioner shall, in consultation with the department of 35 taxation and finance, develop a certificate of tax credit that shall be 36 issued by the commissioner to participants. Participants must include 37 the certificate of tax credit with their tax return to receive any tax 38 benefits under this article. 39 3. The commissioner shall solely determine the eligibility of any 40 applicant applying for entry into the program and shall remove any 41 participant from the program for failing to meet any of the requirements 42 set forth in subdivision six of section three hundred fifty-nine-c of 43 this article and section three hundred fifty-nine-d of this article. 44 § 359-g. Semiconductor research and development tax credit. 1. A 45 participant in the semiconductor research and development project 46 program shall be eligible to claim a credit on qualified investments in 47 semiconductor research and development projects in New York state. The 48 amount of such credit shall be equal to fifteen percent of the cost or 49 other basis for federal income tax purposes of the qualified investment. 50 2. The total amount of tax credits listed on certificates of tax cred- 51 it issued by the commissioner shall be allotted from the funds available 52 for Green CHIPS tax credits as provided under subdivision four of 53 section three hundred fifty-nine of this chapter. 54 § 359-h. Reporting. The corporation, beginning February first, two 55 thousand twenty-seven, and annually thereafter provided program funds 56 remain, shall submit a report to the governor, the temporary president S. 3009--C 42 A. 3009--C

1 of the senate, and the speaker of the assembly. Such annual report shall 2 include, but need not be limited to: the number of participants approved 3 for the program; names of business entities admitted to the program; 4 regional economic development council region wherein the project 5 resides; the total amount of benefits approved per business and in total 6 for the program; total private sector co-investment provided by each 7 approved business and in total for the program; total jobs created at 8 the project location for all years in which the recipient is receiving 9 benefits under the program, including the median wage paid to employees 10 at the project location and types of jobs created; and such other infor- 11 mation as the commissioner determines is necessary and appropriate. 12 Additionally, in all years in which the program is fully operational, 13 such report shall include noteworthy projects which serve to highlight 14 the developments occurring in New York state as a result of the program. 15 Such report shall be included on the corporation's website and all 16 program participants shall also be included in the database of economic 17 incentives as defined in section fifty-eight of section one of chapter 18 one hundred seventy-four of the laws of nineteen hundred sixty-eight 19 constituting the urban development corporation act. 20 § 9. Section 210-B of the tax law is amended by adding a new subdivi- 21 sion 61 to read as follows: 22 61. Semiconductor research and development tax credit. (a) Allowance 23 of credit. A taxpayer that has been approved by the commissioner of 24 economic development to participate in the semiconductor research and 25 development program and has been issued a certificate of tax credit 26 pursuant to section three hundred fifty-nine-e of the economic develop- 27 ment law shall be allowed to claim a credit against the tax imposed by 28 this article. The credit shall equal up to fifteen percent of the cost 29 or other basis for federal income tax purposes of the qualified invest- 30 ment and shall be allowable in each taxable year for which the commis- 31 sioner of economic development has issued a certificate of tax credit, 32 for up to ten consecutive taxable years. In no event shall a taxpayer be 33 allowed a credit greater than the amount of credit listed on the certif- 34 icate of tax credit issued by the commissioner of economic development. 35 No cost or expense paid or incurred by the taxpayer that is the basis 36 for this credit shall be the basis for any other tax credit provided by 37 this chapter. 38 (b) Application of credit. The credit allowed under this subdivision 39 for any taxable year may not reduce the tax due for such year to less 40 than the amount prescribed in paragraph (d) of subdivision one of 41 section two hundred ten of this article. However, if the amount of cred- 42 it allowed under this subdivision for any taxable year reduces the tax 43 to such amount, or if the taxpayer otherwise pays tax based on the fixed 44 dollar minimum amount, any amount of credit thus not deductible in that 45 taxable year will be treated as an overpayment of tax to be credited or 46 refunded in accordance with the provisions of section one thousand 47 eighty-six of this chapter. Provided, however, the provisions of 48 subsection (c) of section one thousand eighty-eight of this chapter 49 notwithstanding, no interest will be paid thereon. 50 (c) Reporting. The taxpayer shall attach to its tax return its certif- 51 icate of tax credit issued by the commissioner of economic development 52 pursuant to section three hundred fifty-nine-e of the economic develop- 53 ment law. In no event shall the taxpayer be allowed a credit greater 54 than the amount of the credit listed on the certificate of tax credit, 55 or in the case of a taxpayer who is a partner in a partnership, a member 56 of a limited liability company, or shareholder in an S corporation, its S. 3009--C 43 A. 3009--C

1 pro rata share of the amount of credit listed on the certificate of tax 2 credit. 3 (d) Credit recapture. If a certificate of eligibility or a certificate 4 of tax credit issued by the department of economic development under 5 article seventeen-A of the economic development law is revoked by such 6 department because the taxpayer does not meet the eligibility require- 7 ment set forth in subdivision six of section three hundred fifty-nine-c 8 of the economic development law, the amount of credit described in this 9 subdivision and claimed by the taxpayer prior to that revocation shall 10 be added back to tax in the taxable year in which any such revocation 11 becomes final. 12 § 10. Section 606 of the tax law is amended by adding a new subsection 13 (rrr) to read as follows: 14 (rrr) Semiconductor research and development tax credit. (1) Allowance 15 of credit. A taxpayer that has been approved by the commissioner of 16 economic development to participate in the semiconductor research and 17 development tax credit program and has been issued a certificate of tax 18 credit pursuant to section three hundred fifty-nine-e of the economic 19 development law shall be allowed to claim a credit against the tax 20 imposed by this article. The credit shall equal up to fifteen percent of 21 the cost or other basis for federal income tax purposes of the qualified 22 investment and shall be allowable in each taxable year for which the 23 commissioner of economic development has issued a certificate of tax 24 credit, for up to ten consecutive taxable years. In no event shall a 25 taxpayer be allowed a credit greater than the amount listed on the 26 certificate of tax credit issued by the commissioner of economic devel- 27 opment. In the case of a taxpayer who is a partner in a partnership, 28 member of a limited liability company or shareholder in an S corpo- 29 ration, the taxpayer shall be allowed its pro rata share of the credit 30 earned by the partnership, limited liability company or S corporation. 31 No cost or expense paid or incurred by the taxpayer that is the basis 32 for this credit shall be the basis for any other tax credit provided by 33 this chapter. 34 (2) Application of credit. If the amount of the credit allowed under 35 this subsection for any taxable year exceeds the taxpayer's tax for the 36 taxable year, the excess shall be treated as an overpayment of tax to be 37 credited or refunded in accordance with the provisions of section six 38 hundred eighty-six of this article, provided, however, no interest will 39 be paid thereon. 40 (3) Reporting. The taxpayer shall attach to its tax return its certif- 41 icate of tax credit issued by the commissioner of economic development 42 pursuant to section three hundred fifty-nine-e of the economic develop- 43 ment law. In no event shall the taxpayer be allowed a credit greater 44 than the amount of the credit listed on the certificate of tax credit, 45 or in the case of a taxpayer who is a partner in a partnership, a member 46 of a limited liability company, or shareholder in an S corporation, its 47 pro rata share of the amount of credit listed on the certificate of tax 48 credit. 49 (4) Credit recapture. If a certificate of eligibility or a certificate 50 of tax credit issued by the department of economic development under 51 article seventeen-A of the economic development law is revoked by such 52 department because the taxpayer does not meet the eligibility require- 53 ment set forth in subdivision six of section three hundred fifty-nine-c 54 of economic development law, the amount of credit described in this 55 subdivision and claimed by the taxpayer prior to that revocation shall S. 3009--C 44 A. 3009--C

1 be added back to tax in the taxable year in which any such revocation 2 becomes final. 3 § 11. The economic development law is amended by adding a new article 4 28 to read as follows: 5 ARTICLE 28 6 SEMICONDUCTOR MANUFACTURING WORKFORCE TRAINING INCENTIVE PROGRAM 7 Section 501. Definitions. 8 502. Eligibility criteria. 9 503. Application and approval process. 10 504. Powers and duties of the commissioner. 11 505. Recordkeeping requirements. 12 506. Cap on tax credit. 13 507. Reporting. 14 § 501. Definitions. As used in this article, the following terms shall 15 have the following meanings: 16 1. "Approved provider" means an entity approved by the commissioner 17 that may provide eligible training to employees of a business entity 18 participating in the semiconductor manufacturing workforce training 19 incentive program. Such criteria shall ensure that any approved provider 20 possesses adequate credentials to provide the training described in an 21 application by a business entity to the commissioner to participate in 22 the semiconductor manufacturing workforce training incentive program. 23 2. "Eligible training" means training provided to an employee hired 24 within twelve months of the business entity applying for this program by 25 the business entity or an approved provider that is: 26 (a) to upgrade, retrain or improve the productivity of employees; 27 (b) determined by the commissioner to satisfy a business need on the 28 part of a participating business entity; 29 (c) not designed to train or upgrade skills as required by a federal 30 or state entity; and 31 (d) structured to result in measurable advancements in skills and 32 competencies that will contribute to opportunities for advancement for 33 employees who complete the training. 34 3. "Manufacturing business" means a business that is engaged in the 35 process of working raw materials into products suitable for use or which 36 gives new shapes, new quality or new combinations to matter which has 37 already gone through some artificial process by the use of machinery, 38 tools, appliances, or other similar equipment. "Manufacturing" does not 39 include an operation that involves only the assembly of components, 40 provided, however, that the assembly of motor vehicles or other high 41 value-added products shall be considered manufacturing. 42 4. "Semiconductor manufacturing business" means a business deemed by 43 the commissioner to make products or develop technologies that are 44 primarily aimed at supporting the growth of the semiconductor manufac- 45 turing and related equipment and material supplier sector. This shall 46 include, but need not be limited to, semiconductor device manufacturing, 47 producers of component parts, direct input materials and equipment 48 necessary for the manufacture of semiconductor chips, machinery, equip- 49 ment, and materials necessary for the operational efficiency of semicon- 50 ductor manufacturing facilities, other such inputs directly supportive 51 of the domestic production of semiconductor chips, and companies engaged 52 in the assembly, testing, packaging and advanced packaging semiconductor 53 value chain. The "semiconductor and supply chain" tier shall not 54 include a project primarily composed of: (a) machinery, equipment, or 55 materials that are inputs to manufacturing generally, but are not direct 56 inputs to semiconductor manufacturing in specific; or (b) the production S. 3009--C 45 A. 3009--C

1 of products or development of technologies that would produce only 2 marginal and incremental benefits to the semiconductor manufacturing 3 sector. 4 5. "Wrap around services" means transportation, childcare, case 5 management and other services designed to maximize the economic impact 6 of workforce development training for participants, and to provide the 7 support services necessary to ensure trainees can access training. 8 § 502. Eligibility criteria. In order to participate in the manufac- 9 turing workforce training incentive program, a business entity must 10 satisfy the following criteria: 11 1. The business entity must operate in the state as a semiconductor 12 manufacturing business or a manufacturing business as defined in this 13 article; 14 2. The business entity must demonstrate that it is conducting eligible 15 training or obtaining eligible training from an approved provider; and 16 3. The business entity must be in compliance with all worker 17 protection and environmental laws and regulations. In addition, the 18 business entity may not owe past due state taxes or local property 19 taxes. 20 4. The business entity must submit a report upon completion of the 21 eligible training that specifies the total amount of eligible training 22 costs covered, including a breakdown between training expenses, wages, 23 and wraparound services; the total number of employees that begin train- 24 ing; the total number of employees that finish training; the skills or 25 type of training provided, including a list of applicable transferrable 26 credentialing opportunities that were provided and information on wheth- 27 er or not the program is a registered apprenticeship program; informa- 28 tion on any formalized agreements or partnerships with community or 29 labor organizations to support the training program; the name of the 30 training provider; and whether the covered employee is retained one year 31 after the completion of the funded training. 32 § 503. Application and approval process. 1. A business entity must 33 submit a completed application in such form and with such information as 34 prescribed by the commissioner. 35 2. As part of such application, each business entity must: 36 (a) provide such documentation as the commissioner may require in 37 order for the commissioner to determine that the business entity intends 38 to conduct eligible training or procure eligible training for its 39 employees from an approved provider; 40 (b) agree to allow the department of taxation and finance to share its 41 tax information with the department. However, any information shared as 42 a result of this agreement shall not be available for disclosure or 43 inspection under the state freedom of information law; 44 (c) agree to allow the department of labor to share its tax and 45 employer information with the department. However, any information 46 shared as a result of this agreement shall not be available for disclo- 47 sure or inspection under the state freedom of information law; 48 (d) allow the department and its agents access to any and all books 49 and records the department may require to monitor compliance; and 50 (e) agree to allow the department and the department of taxation and 51 finance to share and exchange information contained in or derived from 52 the applications for admission into the semiconductor manufacturing 53 workforce training incentive program and the credit claim forms submit- 54 ted to the department of taxation and finance. However, any information 55 shared as a result of this agreement shall not be available for disclo- 56 sure or inspection under the state freedom of information law. S. 3009--C 46 A. 3009--C

1 3. The commissioner may approve an application from a business entity 2 upon determining that such business entity meets the eligibility crite- 3 ria established in section five hundred two of this article. Following 4 approval by the commissioner of an application by a business entity to 5 participate in the semiconductor manufacturing workforce training incen- 6 tive program, the commissioner shall issue a certificate of tax credit 7 to the business entity upon its demonstrating successful completion of 8 such eligible training to the satisfaction of the commissioner. For 9 eligible training as defined by subdivision two of section five hundred 10 one of this article the amount of the credit shall be equal to seventy- 11 five percent of wages, salaries or other compensation, training costs, 12 and wrap around services, up to a credit of twenty-five thousand dollars 13 per employee receiving eligible training, up to one million dollars per 14 eligible non-semiconductor manufacturing business and up to five million 15 dollars per eligible semiconductor manufacturing business. The tax cred- 16 its shall be claimed by the qualified employer as specified in subdivi- 17 sion sixty-two of section two hundred ten-B and subsection (rrr) of 18 section six hundred six of the tax law. 19 § 504. Powers and duties of the commissioner. 1. The commissioner 20 shall promulgate regulations consistent with the purposes of this arti- 21 cle that, notwithstanding any provisions to the contrary in the state 22 administrative procedure act, may be adopted on an emergency basis. Such 23 regulations shall include, but not be limited to, eligibility criteria 24 for business entities desiring to participate in the semiconductor manu- 25 facturing workforce training incentive program, procedures for the 26 receipt and evaluation of applications from business entities to partic- 27 ipate in the program, and such other provisions as the commissioner 28 deems to be appropriate in order to implement the provisions of this 29 article. 30 2. The commissioner shall, in consultation with the department of 31 taxation and finance, develop a certificate of tax credit that shall be 32 issued by the commissioner to participating business entities. Partic- 33 ipants may be required by the commissioner of taxation and finance to 34 include the certificate of tax credit with their tax return to receive 35 any tax benefits under this article. 36 3. The commissioner shall solely determine the eligibility of any 37 applicant applying for entry into the program and shall remove any 38 participant from the program for failing to meet any of the requirements 39 set forth in section five hundred two of this article or for making a 40 material misrepresentation with respect to its participation in the 41 program. 42 § 505. Recordkeeping requirements. Each business entity participating 43 in the program shall maintain all relevant records for the duration of 44 its program participation plus three years. 45 § 506. Cap on tax credit. The total amount of tax credits listed on 46 certificates of tax credit issued by the commissioner for any taxable 47 year may not exceed twenty million dollars, and shall be allotted from 48 the funds available for tax credits under the excelsior jobs program act 49 pursuant to section three hundred fifty-nine of this chapter. 50 § 507. Reporting. The corporation, beginning October first, two thou- 51 sand twenty-seven, and annually thereafter provided program funds 52 remain, shall submit a report to the governor, the temporary president 53 of the senate, and the speaker of the assembly. Such annual report shall 54 include, but need not be limited to: the number of business participants 55 in the program, the total number of workers trained under the program in 56 total and per participating business including an articulation of the S. 3009--C 47 A. 3009--C

1 number of workers that begin training, complete training, and are still 2 employed with the participating business one year after training is 3 completed, the total program funding level allocated in total and per 4 participating business, the regional economic development council region 5 wherein each participating business resides, a breakdown between funding 6 allocated to training, wages, and wraparound services, a summary of the 7 skills or type of training provided per participating business, and such 8 other information as the commissioner determines is necessary and appro- 9 priate. Additionally, in all years in which the program is fully opera- 10 tional, such report shall include noteworthy projects which serve to 11 highlight the developments occurring in New York state as a result of 12 the program. Such report shall be included on the corporation's website 13 and all program participants shall also be included in the database of 14 economic incentives as defined in section fifty-eight of section one of 15 chapter one hundred seventy-four of the laws of nineteen hundred sixty- 16 eight constituting the urban development corporation act. 17 § 12. Section 210-B of the tax law is amended by adding a new subdivi- 18 sion 62 to read as follows: 19 62. Semiconductor manufacturing workforce training program tax credit. 20 (a) Allowance of tax credit. A taxpayer that has been approved by the 21 commissioner of economic development to participate in the semiconductor 22 manufacturing workforce training program and has been issued a certif- 23 icate of tax credit pursuant to section five hundred three of the 24 economic development law shall be allowed to claim a credit against the 25 tax imposed by this article. The credit shall equal seventy-five percent 26 of wages, salaries or other compensation, training costs, and wrap 27 around services, up to a credit of twenty-five thousand dollars per 28 employee receiving eligible training, up to one million dollars per 29 eligible non-semiconductor manufacturing business and up to five million 30 dollars per eligible semiconductor manufacturing business pursuant to 31 subdivision three of section five hundred three of the economic develop- 32 ment law. In no event shall a taxpayer be allowed a credit greater than 33 the amount of credit listed on the certificate of tax credit issued by 34 the commissioner of economic development. The credit shall be allowed in 35 the taxable year in which the eligible training is completed. No cost or 36 other expense paid or incurred by the taxpayer that is the basis for 37 this credit shall be the basis for any other tax credit provided by this 38 chapter. 39 (b) Application of credit. The credit allowed under this subdivision 40 for any taxable year may not reduce the tax due for such year to less 41 than the amount prescribed in paragraph (d) of subdivision one of 42 section two hundred ten of this article. However, if the amount of cred- 43 it allowed under this subdivision for any taxable year reduces the tax 44 to such amount, or if the taxpayer otherwise pays tax based on the fixed 45 dollar minimum amount, any amount of credit thus not deductible in that 46 taxable year will be treated as an overpayment of tax to be credited or 47 refunded in accordance with the provisions of section one thousand 48 eighty-six of this chapter. Provided, however, the provisions of 49 subsection (c) of section one thousand eighty-eight of this chapter 50 notwithstanding, no interest will be paid thereon. 51 (c) Reporting. The taxpayer shall attach to its tax return its certif- 52 icate of tax credit issued by the commissioner of economic development 53 pursuant to section five hundred three of the economic development law. 54 In no event shall the taxpayer be allowed a credit greater than the 55 amount of the credit listed on the certificate of tax credit, or in the 56 case of a taxpayer who is a partner in a partnership, a member of a S. 3009--C 48 A. 3009--C

1 limited liability company, or shareholder in an S corporation, its pro 2 rata share of the amount of credit listed in the certificate of tax 3 credit. 4 (d) Credit recapture. If a certificate of eligibility or a certificate 5 of tax credit issued by the department of the economic development under 6 article twenty-eight of the economic development law is revoked by such 7 department because the taxpayer does not meet the eligibility require- 8 ment set forth in subdivision three of section five hundred three of the 9 economic development law, the amount of credit described in this subdi- 10 vision and claimed by the taxpayer prior to that revocation shall be 11 added back to tax in the taxable year in which any such revocation 12 becomes final. 13 § 13. Section 606 of the tax law is amended by adding a new subsection 14 (sss) to read as follows: 15 (sss) Semiconductor workforce training program tax credit. (1) Allow- 16 ance of tax credit. A taxpayer that has been approved by the commission- 17 er of economic development to participate in the semiconductor workforce 18 training program and has been issued a certificate of tax credit pursu- 19 ant to section five hundred three of the economic development law shall 20 be allowed to claim a credit against the tax imposed by this article. 21 The credit shall equal seventy-five percent of wages, salaries or other 22 compensation, training costs, and wrap around services, up to a credit 23 of twenty-five thousand dollars per employee receiving eligible train- 24 ing, up to one million dollars per eligible non-semiconductor manufac- 25 turing business and up to five million dollars per eligible semiconduc- 26 tor manufacturing business pursuant to subdivision three of section five 27 hundred three of the economic development law. In no event shall a 28 taxpayer be allowed a credit greater than the amount listed on the 29 certificate of tax credit issued by the commissioner of economic devel- 30 opment. In the case of a taxpayer who is a partner in a partnership, 31 member of a limited liability company or shareholder in an S corpo- 32 ration, the taxpayer shall be allowed its pro rata share of the credit 33 earned by the partnership, limited liability company or S corporation. 34 The credit shall be allowed in the taxable year in which the eligible 35 training is completed. No cost or expense paid or incurred by the 36 taxpayer that is the basis for this credit shall be the basis for any 37 other tax credit provided by this chapter. 38 (2) Application of credit. If the amount of the credit allowed under 39 this subsection for any taxable year exceeds the taxpayer's tax for the 40 taxable year, the excess shall be treated as an overpayment of tax to be 41 credited or refunded in accordance with the provisions of section six 42 hundred eighty-six of this article, provided, however, no interest will 43 be paid thereon. 44 (3) Reporting. The taxpayer shall attach to its tax return its certif- 45 icate of tax credit issued by the commissioner of economic development 46 pursuant to section five hundred three of the economic development law. 47 In no event shall the taxpayer be allowed a credit greater than the 48 amount of the credit listed on the certificate of tax credit, or in the 49 case of a taxpayer who is a partner in a partnership, a member of a 50 limited liability company, or shareholder in an S corporation, its pro 51 rata share of the amount of credit listed on the certificate of tax 52 credit. 53 (4) Credit recapture. If a certificate of eligibility or a certificate 54 of tax credit issued by the department of economic development under 55 article twenty-eight of the economic development law is revoked by such 56 department because the taxpayer does not meet the eligibility require- S. 3009--C 49 A. 3009--C

1 ment set forth in subdivision three of section five hundred three of the 2 economic development law, the amount of credit described in this 3 subsection and claimed by the taxpayer prior to that revocation shall be 4 added back to tax in the taxable year in which any such revocation 5 becomes final. 6 § 14. This act shall take effect immediately and apply to taxable 7 years beginning on or after January 1, 2025; provided, however, that 8 section five of this act shall take effect December 31, 2028.

9 SUBPART B

10 Section 1. Section 421 of the economic development law, as added by 11 section 1 of part E of chapter 56 of the laws of 2011, is amended to 12 read as follows: 13 § 421. Statement of legislative findings and declaration. It is hereby 14 found and declared that New York state needs, as a matter of public 15 policy, to create competitive financial incentives to retain [ ] 16 businesses , including small businesses and jobs that are at risk of 17 leaving the state or closing operations due to the impact on its busi- 18 ness operations of an event leading to an emergency declaration by the 19 governor. The empire state jobs retention program is created to support 20 the retention of the state's [ ] businesses , including 21 small businesses in the event of an emergency. 22 This legislation creates a jobs tax credit for each job of a [ 23 ] business , including a small business directly impacted by an emer- 24 gency and protects state taxpayers' dollars by ensuring that New York 25 provides tax benefits only to businesses that can demonstrate substan- 26 tial physical damage and economic harm resulting from an event leading 27 to an emergency declaration by the governor. 28 § 2. Section 422 of the economic development law, as added by section 29 1 of part E of chapter 56 of the laws of 2011, is amended to read as 30 follows: 31 § 422. Definitions. For the purposes of this article: 32 1. [ 33 34 35 36 37 38 39 40 41 42 ] "Certificate of eligibility" means the document issued by the 43 department to an applicant that has completed an application to be 44 admitted into the empire state jobs retention program and has been 45 accepted into the program by the department. Possession of a certificate 46 of eligibility does not by itself guarantee the eligibility to claim the 47 tax credit. 48 [ ] 2. "Certificate of tax credit" means the document issued to a 49 participant by the department, after the department has verified that 50 the participant has met all applicable eligibility criteria in this 51 article. The certificate shall be issued annually if such criteria are 52 satisfied and shall specify the exact amount of each tax credit under 53 this article that a participant may claim, pursuant to section four S. 3009--C 50 A. 3009--C

1 hundred twenty-five of this article, and shall specify the taxable year 2 in which such credit may be claimed. 3 [ 4 5 6 7 8 9 10 11 12 13 ] 3. "Impacted jobs" means jobs [ ] at a business enterprise 14 [ 15 16 ] existing 17 the day before an event leading to an emergency declaration by the 18 governor at a location or locations which demonstrate substantial phys- 19 ical damage and economic harm caused by the event for which the emergen- 20 cy declaration was made . 21 [ 22 23 24 25 26 27 28 29 ] 4. "Participant" means a business entity that: 30 (a) has completed an application prescribed by the department to be 31 admitted into the program; 32 (b) has been issued a certificate of eligibility by the department; 33 (c) has demonstrated that it meets the eligibility criteria in section 34 four hundred twenty-three and subdivision two of section four hundred 35 twenty-four of this article; and 36 (d) has been certified as a participant by the commissioner. 37 [ ] 5. "Preliminary schedule of benefits" means the maximum aggre- 38 gate amount of the tax credit that a participant in the empire state 39 jobs retention program is eligible to receive pursuant to this article. 40 The schedule shall indicate the annual amount of the credit a partic- 41 ipant may claim in [ ] its [ ] six months of eligibility. 42 The preliminary schedule of benefits shall be issued by the department 43 when the department approves the application for admission into the 44 program. The commissioner may amend that schedule, provided that the 45 commissioner complies with the credit caps in section three hundred 46 fifty-nine of this chapter. 47 [ ] 6. "Related person" means a related person pursuant to subpara- 48 graph (c) of paragraph three of subsection (b) of section four hundred 49 sixty-five of the internal revenue code. 50 [ 51 52 53 54 55 S. 3009--C 51 A. 3009--C

1 2 3 4 5 ] 6 7. "Business entity" means a for profit business duly authorized to do 7 business in and in good standing in the state of New York. 8 § 3. Section 423 of the economic development law, as added by section 9 1 of part E of chapter 56 of the laws of 2011, is amended to read as 10 follows: 11 § 423. Eligibility criteria. 1. [ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ] For the purposes of this article, in order to participate in the 29 empire state jobs retention program[ 30 31 32 ] on or after [ ] June first, two thousand [ ] 33 twenty-five , [ ] a business entity must demonstrate substantial phys- 34 ical damage and economic harm at a location or locations within an area 35 for which the governor has issued an emergency declaration and resulting 36 from the event leading to the emergency declaration by the governor[ 37 38 39 40 41 42 43 44 45 46 47 48 49 ] . At the time of application, a business enti- 50 ty shall submit to the department a plan to retain, restore or increase 51 staffing levels within one year from the date of application to at least 52 the staffing levels that existed at the site the day prior to the date 53 of the applicable declaration of the state of emergency. Any recipient 54 that does not adhere to its jobs retention plan, shall have its program 55 award rescinded unless the recipient can demonstrate economic hardship S. 3009--C 52 A. 3009--C

1 to the commissioner, in which case any such program award may be reduced 2 proportionally by the number of employees not restored or retained . 3 [ ] 2. A business entity must be in compliance with all worker 4 protection and environmental laws and regulations. In addition, a busi- 5 ness entity may not owe past due state taxes. In addition, a business 6 entity must not owe local property taxes for any year prior to the year 7 in which it applies to participate in the empire state jobs retention 8 program. 9 § 4. Section 424 of the economic development law, as added by section 10 1 of part E of chapter 56 of the laws of 2011, is amended to read as 11 follows: 12 § 424. Application and approval process. 1. A business [ ] 13 entity must submit a completed application as prescribed by the commis- 14 sioner. Such completed application must be submitted to the commissioner 15 within [ ] one hundred eighty days of the declaration of an emergency 16 by the governor in the county in which the business enterprise is 17 located [ 18 19 ] ; provided, however, that the eligibility period for 20 the credit shall begin upon the date of declaration of an emergency by 21 the governor covering the county in which the business entity is 22 located . 23 2. As part of such application, each business [ ] entity 24 must: 25 (a) agree to allow the department of taxation and finance to share its 26 tax information with the department. However, any information shared as 27 a result of this agreement shall not be available for disclosure or 28 inspection under the state freedom of information law. 29 (b) agree to allow the department of labor to share its tax and 30 employer information with the department. However, any information 31 shared as a result of this agreement shall not be available for disclo- 32 sure or inspection under the state freedom of information law. 33 (c) allow the department and its agents access to any and all books 34 and records the department may require to monitor compliance. 35 (d) agree to be permanently disqualified for empire zone tax benefits 36 at any location or locations that qualify for empire state jobs 37 retention program benefits if admitted into the empire state jobs 38 retention program. 39 (e) provide the following information to the department upon request: 40 (i) a plan outlining the schedule for meeting the jobs retention 41 requirements as set forth in subdivision [ ] one of section four 42 hundred twenty-three of this article. Such plan must include details on 43 jobs titles and expected salaries; 44 (ii) the prior three years of federal and state income or franchise 45 tax returns, unemployment insurance quarterly returns, real property tax 46 bills and audited financial statements; and 47 (iii) the employer identification or social security numbers for all 48 related persons to the applicant, including those of any members of a 49 limited liability company or partners in a partnership. 50 (f) provide a clear and detailed presentation of all related persons 51 to the applicant to assure the department that jobs are not being shift- 52 ed within the state. 53 (g) certify, under penalty of perjury, that it is in substantial 54 compliance with all environmental, worker protection, and local, state, 55 and federal tax laws. S. 3009--C 53 A. 3009--C

1 3. After reviewing a business enterprise's completed application and 2 determining that the business enterprise will meet the conditions set 3 forth in subdivision [ ] one of section four hundred twenty-three of 4 this article, the department may admit the applicant into the program 5 and provide the applicant with a certificate of eligibility and a 6 preliminary schedule of benefits by year based on the applicant's 7 projections as set forth in its application. This preliminary schedule 8 of benefits delineates the maximum possible benefits an applicant may 9 receive. 10 4. In order to become a participant in the program, an applicant must 11 submit evidence that it satisfies the eligibility criteria specified in 12 section four hundred twenty-three of this article and subdivision two of 13 this section in such form as the commissioner may prescribe. After 14 reviewing such evidence and finding it sufficient, the department shall 15 certify the applicant as a participant and issue to that participant a 16 certificate of tax credit [ 17 18 19 20 21 ]. 22 5. A participant may claim tax benefits commencing in the first taxa- 23 ble year that the business enterprise receives a certificate of tax 24 credit or the first taxable year listed on its preliminary schedule of 25 benefits, whichever is later. [ 26 27 28 29 30 ] 31 § 5. Section 425 of the economic development law, as added by section 32 1 of part E of chapter 56 of the laws of 2011, is amended to read as 33 follows: 34 § 425. Empire state jobs retention program credit. 1. A participant in 35 the empire state jobs retention program shall be eligible to claim a 36 credit for the impacted jobs. [ ] For a business entity that employes 37 three to forty-nine employees, the amount of such credit shall be equal 38 to the product of the gross wages paid for the impacted jobs and [ ] 39 up to 15 percent. For a business entity that employs fifty to one 40 hundred employees, the amount of such credit shall be equal to the prod- 41 uct of the gross wages paid for the impacted jobs and up to 7.5 percent. 42 For a business entity that employs greater than one hundred employees, 43 the amount of such credit shall be equal to the product of the gross 44 wages paid for the impacted jobs and up to 3.75 percent. An eligible 45 business entity may only receive up to $500,000 in tax credits per event 46 triggering an emergency declaration by the governor. 47 2. The tax credit established in this section shall be refundable as 48 provided in the tax law. If a participant fails to satisfy the eligibil- 49 ity criteria [ ], it will lose the ability to claim credit 50 [ ]. The event of such failure shall not extend the original 51 [ ] six-month eligibility period. 52 3. The business enterprise shall be allowed to claim the credit as 53 prescribed in section thirty-six of the tax law[ 54 55 ]. S. 3009--C 54 A. 3009--C

1 4. A participant may be eligible for benefits under this article as 2 well as article seventeen of this chapter, provided the participant can 3 only receive benefits pursuant to subdivision two of section three 4 hundred fifty-five of this chapter for costs in excess of costs recov- 5 ered by insurance. 6 § 6. Section 426 of the economic development law, as added by section 7 1 of part E of chapter 56 of the laws of 2011, is amended to read as 8 follows: 9 § 426. Powers and duties of the commissioner. 1. The commissioner 10 shall promulgate regulations establishing [ ] the type of application 11 process and the eligibility criteria, that will be applied consistent 12 with the purposes of this article, so as not to exceed thirty million 13 dollars from the annual cap on tax credits set forth in section three 14 hundred fifty-nine of this chapter which, notwithstanding any provisions 15 to the contrary in the state administrative procedure act, may be 16 adopted on an emergency basis. Such regulations shall include, but not 17 be limited to, criteria for determining whether a business entity demon- 18 strates substantial physical damage and economic harm from the event 19 leading to an emergency declaration by the governor. 20 2. The commissioner shall, in consultation with the department of 21 taxation and finance, develop a certificate of tax credit that shall be 22 issued by the commissioner to participants. Participants may be required 23 by the commissioner of taxation and finance to include the certificate 24 of tax credit with their tax return to receive any tax benefits under 25 this article. 26 3. The commissioner shall solely determine the eligibility of any 27 applicant applying for entry into the program and shall remove any 28 participant from the program for failing to meet any of the requirements 29 set forth in subdivision two of section four hundred twenty-four of this 30 article, or for failing to meet the job retention requirements set forth 31 in [ ] section four hundred twenty-three of this 32 article[ 33 ]. 34 § 7. This act shall take effect immediately. 35 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 36 sion, section or part of this act shall be adjudged by any court of 37 competent jurisdiction to be invalid, such judgment shall not affect, 38 impair, or invalidate the remainder thereof, but shall be confined in 39 its operation to the clause, sentence, paragraph, subdivision, section 40 or part thereof directly involved in the controversy in which such judg- 41 ment shall have been rendered. It is hereby declared to be the intent of 42 the legislature that this act would have been enacted even if such 43 invalid provisions had not been included herein. 44 § 3. This act shall take effect immediately, provided, however, that 45 the applicable effective date of Subparts A and B of this act shall be 46 as specifically set forth in the last section of such Subparts.

47 PART I

48 Section 1. Paragraphs 2 and 5 of subdivision (a) of section 24 of the 49 tax law, paragraph 2 as amended by section 1 and paragraph 5 as amended 50 by section 2 of part D of chapter 59 of the laws of 2023, are amended 51 and a new paragraph 6 is added to read as follows: 52 (2) The amount of the credit shall be the product (or pro rata share 53 of the product, in the case of a member of a partnership) of thirty 54 percent and the qualified production costs paid or incurred in the S. 3009--C 55 A. 3009--C

1 production of a qualified film, provided that: (i) the qualified 2 production costs (excluding post production costs) paid or incurred 3 which are attributable to the use of tangible property or the perform- 4 ance of services at a qualified film production facility in the 5 production of such qualified film equal or exceed seventy-five percent 6 of the production costs (excluding post production costs) paid or 7 incurred which are attributable to the use of tangible property or the 8 performance of services at any film production facility within and with- 9 out the state in the production of such qualified film, [ ] (ii) 10 except with respect to a qualified independent film production company 11 or pilot, at least ten percent of the total principal photography shoot- 12 ing days spent in the production of such qualified film must be spent at 13 a qualified film production facility , and (iii) qualified production 14 costs that are attributable to scoring shall be eligible for an addi- 15 tional ten percent credit on such scoring costs when incurred within the 16 state and when such scoring costs include payment to a minimum of five 17 musicians . However, if the qualified production costs (excluding post 18 production costs) which are attributable to the use of tangible property 19 or the performance of services at a qualified film production facility 20 in the production of such qualified film is less than three million 21 dollars, then the portion of the qualified production costs attributable 22 to the use of tangible property or the performance of services in the 23 production of such qualified film outside of a qualified film production 24 facility shall be allowed only if the shooting days spent in New York 25 outside of a film production facility in the production of such quali- 26 fied film equal or exceed seventy-five percent of the total shooting 27 days spent within and without New York outside of a film production 28 facility in the production of such qualified film. The credit shall be 29 allowed for the taxable year in which the production of such qualified 30 film is completed. However, in the case of a qualified film that 31 receives funds from additional pool 2, no credit shall be claimed before 32 the later of (1) the taxable year the production of the qualified film 33 is complete, or (2) the taxable year that includes the last day of the 34 allocation year for which the film has been allocated credit by the 35 department of economic development. If the amount of the credit is at 36 least one million dollars but less than five million dollars, the credit 37 shall be claimed over a two year period beginning in the first taxable 38 year in which the credit may be claimed and in the next succeeding taxa- 39 ble year, with one-half of the amount of credit allowed being claimed in 40 each year. If the amount of the credit is at least five million dollars, 41 the credit shall be claimed over a three year period beginning in the 42 first taxable year in which the credit may be claimed and in the next 43 two succeeding taxable years, with one-third of the amount of the credit 44 allowed being claimed in each year. Provided, however, in the case of a 45 qualified film for which the credit application was received on or after 46 January first, two thousand twenty-five, the credit shall be claimed in 47 the taxable year that includes the last day of the allocation year for 48 which the film has been allocated a credit by the department of economic 49 development. 50 (5) For the period two thousand fifteen through two thousand [ 51 ] thirty-six , in addition to the amount of credit established in 52 paragraph two of this subdivision, a taxpayer shall be allowed a credit 53 equal to (i) the product (or pro rata share of the product, in the case 54 of a member of a partnership) of ten percent and the wages, salaries or 55 other compensation constituting qualified production costs as defined in 56 paragraph two of subdivision (b) of this section, paid to individuals S. 3009--C 56 A. 3009--C

1 directly employed by a qualified film production company or a qualified 2 independent film production company for services performed by those 3 individuals in one of the counties specified in this paragraph in 4 connection with a qualified film with a minimum budget of five hundred 5 thousand dollars, and (ii) the product (or pro rata share of the prod- 6 uct, in the case of a member of a partnership) of ten percent and the 7 qualified production costs (excluding wages, salaries or other compen- 8 sation) paid or incurred in the production of a qualified film where the 9 property constituting such qualified production costs was used, and the 10 services constituting such qualified production costs were performed in 11 any of the counties specified in this paragraph in connection with a 12 qualified film with a minimum budget of five hundred thousand dollars 13 where the majority of principal photography shooting days in the 14 production of such film were shot in any of the counties specified in 15 this paragraph. Provided, however, that the aggregate total eligible 16 qualified production costs constituting wages, salaries or other compen- 17 sation, for writers, directors, composers, producers, and performers 18 shall not exceed forty percent of the aggregate sum total of all other 19 qualified production costs. For purposes of the credit, the services 20 must be performed and the property must be used in one or more of the 21 following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chau- 22 tauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutch- 23 ess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, 24 Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, 25 Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, 26 Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. 27 Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washing- 28 ton, Wayne, Wyoming, or Yates. 29 (6) Production plus program. (i) A qualified independent film 30 production company or a qualified film production company, or a company 31 that is a majority owner of one or more qualified film production compa- 32 nies or qualified independent film production companies, may apply to 33 participate in the production plus program after it, or qualified film 34 production companies or qualified independent film production companies 35 of which it is the majority owner, has submitted two or more initial 36 applications to the empire state film production tax credit program 37 after January first, two thousand twenty-five. 38 (ii) A qualified film production company or qualified independent film 39 production company that has been accepted into the production plus 40 program, or is majority-owned by a company that has been accepted into 41 the production plus program, may be eligible to receive an additional 42 tax credit equal to the product of ten percent and the qualified 43 production costs in New York state if program acceptance was based on 44 initial applications, the sum of which totaled at least one hundred 45 million dollars in qualified production costs in New York state. 46 (iii) A qualified independent film production company that has been 47 accepted into the production plus program, or is majority-owned by a 48 company that has been accepted into the production plus program, that is 49 engaging in the production of a feature length film, television film or 50 television series as defined in the regulations promulgated for this 51 program, may receive an additional tax credit equal to the product of 52 five percent and the qualified production costs incurred on all subse- 53 quent films or series applied for if program acceptance was based on 54 initial applications the sum of which totaled at least twenty million 55 dollars in qualified production costs in New York state. S. 3009--C 57 A. 3009--C

1 (iv) Initial applications for feature length films and new television 2 series submitted after December thirty-first, two thousand twenty-eight 3 shall not be eligible for the program pursuant to this paragraph; 4 provided, however, a television series that enters the program pursuant 5 to this paragraph before January first, two thousand twenty-nine shall 6 continue to be eligible. 7 § 2. Paragraphs 2 and 7 of subdivision (b) of section 24 of the tax 8 law, paragraph 2 as amended by section 3 of part D of chapter 59 of the 9 laws of 2023, paragraph 7 as added by section 9 of part Q of chapter 57 10 of the laws of 2010, are amended to read as follows: 11 (2) "Production costs" means any costs for tangible property used and 12 services performed directly and predominantly in the production (includ- 13 ing pre-production and post production) of a qualified film. 14 "Production costs" shall not include [ ] costs for a story, script or 15 scenario to be used for a qualified film [ 16 17 18 19 ]. "Production costs" generally include the 20 wages or salaries or other compensation for writers, directors, compos- 21 ers and performers, technical and crew production costs, such as expend- 22 itures for film production facilities, or any part thereof, props, make- 23 up, wardrobe, film processing, camera, sound recording, set 24 construction, lighting, shooting, editing and meals, and shall include 25 the wages, salaries or other compensation of no more than two producers 26 per qualified film[ 27 28 29 30 31 32 33 34 ]. 35 (7) "Qualified independent film production company" is a corporation, 36 partnership, limited partnership, or other entity or individual, that or 37 who (i) is principally engaged in the production of a qualified film 38 [ ], [ ] (ii) [ 39 ] is not publicly traded , and (iii) 40 [ 41 42 ] is not majority owned, fifty-one percent or more, 43 by a company publicly traded on a United States stock exchange . 44 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 45 amended by section 2 of chapter 606 of the laws of 2023, is amended to 46 read as follows: 47 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 48 subdivision (a) of this section shall be increased by an additional four 49 hundred twenty million dollars in each year starting in two thousand ten 50 through two thousand twenty-three and seven hundred million dollars in 51 each year starting in two thousand twenty-four through two thousand 52 [ ] thirty-six , provided however, seven million dollars of the 53 annual allocation shall be available for the empire state film post 54 production credit pursuant to section thirty-one of this article in two 55 thousand thirteen and two thousand fourteen, twenty-five million dollars 56 of the annual allocation shall be available for the empire state film S. 3009--C 58 A. 3009--C

1 post production credit pursuant to section thirty-one of this article in 2 each year starting in two thousand fifteen through two thousand twenty- 3 three, and forty-five million dollars of the annual allocation shall be 4 available for the empire state film post production credit pursuant to 5 section thirty-one of this article in each year starting in two thousand 6 twenty-four through two thousand [ ] thirty-six . Provided 7 further, five million dollars of the annual allocation shall be made 8 available for the television writers' and directors' fees and salaries 9 credit pursuant to section twenty-four-b of this article in each year 10 starting in two thousand twenty through two thousand [ ] thir- 11 ty-six . This amount shall be allocated by the department of economic 12 development among taxpayers in accordance with subdivision (a) of this 13 section. If the commissioner of economic development determines that the 14 aggregate amount of tax credits available from additional pool 2 for the 15 empire state film production tax credit have been previously allocated, 16 and determines that the pending applications from eligible applicants 17 for the empire state film post production tax credit pursuant to section 18 thirty-one of this article is insufficient to utilize the balance of 19 unallocated empire state film post production tax credits from such 20 pool, the remainder, after such pending applications are considered, 21 shall be made available for allocation in the empire state film tax 22 credit pursuant to this section, subdivision twenty of section two 23 hundred ten-B and subsection (gg) of section six hundred six of this 24 chapter. Also, if the commissioner of economic development determines 25 that the aggregate amount of tax credits available from additional pool 26 2 for the empire state film post production tax credit have been previ- 27 ously allocated, and determines that the pending applications from 28 eligible applicants for the empire state film production tax credit 29 pursuant to this section is insufficient to utilize the balance of unal- 30 located film production tax credits from such pool, then all or part of 31 the remainder, after such pending applications are considered, shall be 32 made available for allocation for the empire state film post production 33 credit pursuant to this section, subdivision thirty-two of section two 34 hundred ten-B and subsection (qq) of section six hundred six of this 35 chapter. The department of economic development must notify taxpayers of 36 their allocation year and include the allocation year on the certificate 37 of tax credit. Taxpayers eligible to claim a credit must report the 38 allocation year directly on their empire state film production credit 39 tax form for each year a credit is claimed and include a copy of the 40 certificate with their tax return. In the case of a qualified film that 41 receives funds from additional pool 2 where the taxpayer filed an 42 initial application before April first, two thousand twenty-three and 43 before January first, two thousand twenty-five , no empire state film 44 production credit shall be claimed before the later of (1) the taxable 45 year the production of the qualified film is complete, or (2) the taxa- 46 ble year immediately following the allocation year for which the film 47 has been allocated credit by the department of economic development. In 48 the case of a qualified film that receives funds from additional pool 2 49 where the taxpayer filed an initial application on or after April first, 50 two thousand twenty-three and before January first, two thousand twen- 51 ty-five , no empire state film production credit shall be claimed before 52 the later of (1) the taxable year the production of the qualified film 53 is complete, or (2) the taxable year that includes the last day of the 54 allocation year for which the film has been allocated credit by the 55 department of economic development. In the case of a qualified film for 56 which the taxpayer filed an initial application on or after January S. 3009--C 59 A. 3009--C

1 first, two thousand twenty-five, the credit shall be claimed in the 2 taxable year that includes the last day of the allocation year for which 3 the production of such qualified film has been allocated a credit by the 4 department of economic development. 5 § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 6 amended by section 3 of chapter 606 of the laws of 2023, is amended to 7 read as follows: 8 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 9 subdivision (a) of this section shall be increased by an additional four 10 hundred twenty million dollars in each year starting in two thousand ten 11 through two thousand twenty-three and seven hundred million dollars each 12 year starting in two thousand twenty-four through two thousand [ 13 ] thirty-six , provided however, seven million dollars of the annual 14 allocation shall be available for the empire state film post production 15 credit pursuant to section thirty-one of this article in two thousand 16 thirteen and two thousand fourteen, twenty-five million dollars of the 17 annual allocation shall be available for the empire state film post 18 production credit pursuant to section thirty-one of this article in each 19 year starting in two thousand fifteen through two thousand twenty-three, 20 and forty-five million dollars of the annual allocation shall be avail- 21 able for the empire state film post production credit pursuant to 22 section thirty-one of this article in each year starting in two thousand 23 twenty-four through two thousand [ ] thirty-six . This amount 24 shall be allocated by the department of economic development among 25 taxpayers in accordance with subdivision (a) of this section. If the 26 commissioner of economic development determines that the aggregate 27 amount of tax credits available from additional pool 2 for the empire 28 state film production tax credit have been previously allocated, and 29 determines that the pending applications from eligible applicants for 30 the empire state film post production tax credit pursuant to section 31 thirty-one of this article is insufficient to utilize the balance of 32 unallocated empire state film post production tax credits from such 33 pool, the remainder, after such pending applications are considered, 34 shall be made available for allocation in the empire state film tax 35 credit pursuant to this section, subdivision twenty of section two 36 hundred ten-B and subsection (gg) of section six hundred six of this 37 chapter. Also, if the commissioner of economic development determines 38 that the aggregate amount of tax credits available from additional pool 39 2 for the empire state film post production tax credit have been previ- 40 ously allocated, and determines that the pending applications from 41 eligible applicants for the empire state film production tax credit 42 pursuant to this section is insufficient to utilize the balance of unal- 43 located film production tax credits from such pool, then all or part of 44 the remainder, after such pending applications are considered, shall be 45 made available for allocation for the empire state film post production 46 credit pursuant to this section, subdivision thirty-two of section two 47 hundred ten-B and subsection (qq) of section six hundred six of this 48 chapter. The department of economic development must notify taxpayers of 49 their allocation year and include the allocation year on the certificate 50 of tax credit. Taxpayers eligible to claim a credit must report the 51 allocation year directly on their empire state film production credit 52 tax form for each year a credit is claimed and include a copy of the 53 certificate with their tax return. In the case of a qualified film that 54 receives funds from additional pool 2 where the taxpayer filed an 55 initial application before April first, two thousand twenty-three, no 56 empire state film production credit shall be claimed before the later of S. 3009--C 60 A. 3009--C

1 (1) the taxable year the production of the qualified film is complete, 2 or (2) the taxable year immediately following the allocation year for 3 which the film has been allocated credit by the department of economic 4 development. In the case of a qualified film that receives funds from 5 additional pool 2 where the taxpayer filed an initial application on or 6 after April first, two thousand twenty-three and before January first, 7 two thousand twenty-five , no empire state film production credit shall 8 be claimed before the later of (1) the taxable year the production of 9 the qualified film is complete, or (2) the taxable year that includes 10 the last day of the allocation year for which the film has been allo- 11 cated credit by the department of economic development. Provided, howev- 12 er, in the case of a qualified film for which the credit application was 13 received on or after January first, two thousand twenty-five, the credit 14 shall be claimed in the taxable year that includes the last day of the 15 allocation year for which the film has been allocated a credit by the 16 department of economic development. 17 § 5. Section 24 of the tax law is amended by adding a new subdivision 18 (g) to read as follows: 19 (g) Credit recapture. If a certificate of tax credit issued by the 20 department of economic development pursuant to this section is revoked 21 by such department because the taxpayer does not meet the eligibility 22 requirements of this section, the amount of credit described in this 23 section and claimed by the taxpayer prior to that revocation shall be 24 added back to tax in the taxable year in which any such revocation 25 becomes final. 26 § 6. Paragraphs 3, 5 and 6 of subdivision (a) of section 31 of the tax 27 law, paragraph 3 as amended by section 5 and paragraph 5 as added by 28 section 5-a of part B of chapter 59 of the laws of 2013, and paragraph 6 29 as amended by section 9 of part D of chapter 59 of the laws of 2023, are 30 amended to read as follows: 31 (3) (i) A taxpayer shall not be eligible for the credit established by 32 this section for qualified post production costs, excluding the costs 33 for visual effects and animation, unless the qualified post production 34 costs, excluding the costs for visual effects and animation, at a quali- 35 fied post production facility meet or exceed one million dollars or 36 seventy-five percent of the total post production costs, excluding the 37 costs for visual effects and animation, paid or incurred in the post 38 production of the qualified film at any post production facility , which- 39 ever is less . (ii) A taxpayer shall not be eligible for the credit 40 established by this section for qualified post production costs which 41 are costs for visual effects or animation unless the qualified post 42 production costs for visual effects or animation at a qualified post 43 production facility meet or exceed [ ] five hundred thousand 44 dollars or [ ] ten percent of the total post production costs for 45 visual effects or animation paid or incurred in the post production of a 46 qualified film at any post production facility, whichever is less. (iii) 47 A taxpayer may claim a credit for qualified post production costs 48 excluding the costs for visual effects and animation, and for qualified 49 post production costs of visual effects and animation, provided that the 50 criteria in subparagraphs (i) and (ii) of this paragraph are both satis- 51 fied. The credit shall be allowed for the taxable year in which the 52 production of such qualified film is completed. 53 (5) If the amount of the credit is at least one million dollars but 54 less than five million dollars, the credit shall be claimed over a two 55 year period beginning in the first taxable year in which the credit may 56 be claimed and in the next succeeding taxable year, with one-half of the S. 3009--C 61 A. 3009--C

1 amount of credit allowed being claimed in each year. If the amount of 2 the credit is at least five million dollars, the credit shall be claimed 3 over a three year period beginning in the first taxable year in which 4 the credit may be claimed and in the next two succeeding taxable years, 5 with one-third of the amount of the credit allowed being claimed in each 6 year. Provided, however, in the case of a qualified film for which the 7 taxpayer filed an initial application on or after January first, two 8 thousand twenty-five, the credit shall be claimed for the taxable year 9 in which such qualified film is completed. 10 (6) For the period two thousand fifteen through two thousand [ 11 ] thirty-six , in addition to the amount of credit established in 12 paragraph two of this subdivision, a taxpayer shall be allowed a credit 13 equal to the product (or pro rata share of the product, in the case of a 14 member of a partnership) of ten percent and the amount of wages or sala- 15 ries paid to individuals directly employed (excluding those employed as 16 writers, directors, composers, producers and performers, other than 17 background actors with no scripted lines) for services performed by 18 those individuals in one of the counties specified in this paragraph in 19 connection with the post production work on a qualified film with a 20 minimum budget of five hundred thousand dollars at a qualified post 21 production facility in one of the counties listed in this paragraph. For 22 purposes of this additional credit, the services must be performed in 23 one or more of the following counties: Albany, Allegany, Broome, Catta- 24 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- 25 land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, 26 Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, 27 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, 28 Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, 29 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 30 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. 31 § 7. Paragraph 2 of subdivision (b) of section 31 of the tax law, as 32 added by section 12 of part Q of chapter 57 of the laws of 2010, is 33 amended to read as follows: 34 (2) "[ ] Qualified production costs" means production of original 35 content for a qualified film employing traditional, emerging and new 36 workflow techniques used in post-production for picture, sound and music 37 editorial, rerecording and mixing, visual effects, graphic design, 38 original scoring, animation, and musical composition in the state ; but 39 shall not include the editing of previously produced content for a qual- 40 ified film. 41 § 8. Section 31 of the tax law, as added by section 12 of part Q of 42 chapter 57 of the laws of 2010, is amended by adding a new subdivision 43 (f) to read as follows: 44 (f) Credit recapture. If a certificate of tax credit issued by the 45 department of economic development pursuant to this section is revoked 46 by such department because the taxpayer does not meet the eligibility 47 requirements of this section, the amount of credit described in this 48 section and claimed by the taxpayer prior to that revocation shall be 49 added back to tax in the taxable year in which any such revocation 50 becomes final. 51 § 9. The tax law is amended by adding a new section 24-d to read as 52 follows: 53 § 24-d. Empire state independent film production credit. (a) (1) 54 Allowance of credit. A taxpayer which is a qualified independent film 55 production company, or which is a sole proprietor of or a member of a 56 partnership which is a qualified independent film production company, S. 3009--C 62 A. 3009--C

1 and which is subject to tax under articles nine-A or twenty-two of this 2 chapter, shall be allowed a credit against such tax, pursuant to the 3 provisions referenced in subdivision (c) of this section, to be computed 4 as hereinafter provided. 5 (2) (i) The amount of the credit shall be the product (or pro rata 6 share of the product, in the case of a member of a partnership) of thir- 7 ty percent and the qualified production costs paid or incurred in the 8 production of a qualified film, provided that the qualified production 9 costs (excluding post production costs) paid or incurred which are 10 attributable to the use of tangible property or the performance of 11 services at a qualified film production facility in the production of 12 such qualified film equal or exceed seventy-five percent of the 13 production costs (excluding post production costs) paid or incurred 14 which are attributable to the use of tangible property or the perform- 15 ance of services at any film production facility within and without the 16 state in the production of such qualified film. However, if the quali- 17 fied production costs (excluding post production costs) which are 18 attributable to the use of tangible property or the performance of 19 services at a qualified film production facility in the production of 20 such qualified film is less than three million dollars, then the portion 21 of the qualified production costs attributable to the use of tangible 22 property or the performance of services in the production of such quali- 23 fied film outside of a qualified film production facility shall be 24 allowed only if the shooting days spent in New York outside of a film 25 production facility in the production of such qualified film equal or 26 exceed seventy-five percent of the total shooting days spent within and 27 without the state outside of a film production facility in the 28 production of such qualified film. The credit shall be allowed for the 29 taxable year in which the production of such qualified film is 30 completed. A taxpayer shall not be eligible for a tax credit established 31 by this section for the production of more than two qualified films per 32 calendar year. 33 (ii) In addition to the amount of credit established in subparagraph 34 (i) of this paragraph, a taxpayer shall be allowed a credit equal to (A) 35 the product (or pro rata share of the product, in the case of a member 36 of a partnership) of ten percent and the wages, salaries or other 37 compensation constituting qualified production costs as defined in para- 38 graph one of subdivision (b) of this section, paid to individuals 39 directly employed by a qualified independent film production company for 40 services performed by those individuals in one of the counties specified 41 in this subparagraph in connection with a qualified independent film 42 with a minimum budget of five hundred thousand dollars, and (B) the 43 product (or pro rata share of the product, in the case of a member of a 44 partnership) of ten percent and the qualified production costs (exclud- 45 ing wages, salaries or other compensation) paid or incurred in the 46 production of a qualified film where the property constituting such 47 qualified production costs was used, and the services constituting such 48 qualified production costs were performed in any of the counties speci- 49 fied in this subparagraph in connection with a qualified film with a 50 minimum budget of five hundred thousand dollars where the majority of 51 principal photography shooting days in the production of such film 52 were shot in any of the counties specified in this paragraph. Provided, 53 however, that the aggregate total eligible qualified production costs 54 constituting wages, salaries or other compensation, for writers, 55 directors, composers, producers, and performers shall not exceed forty 56 percent of the aggregate sum total of all other qualified production S. 3009--C 63 A. 3009--C

1 costs. For purposes of the credit, the services must be performed and 2 the property must be used in one or more of the following counties: 3 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 4 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 5 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 6 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 7 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 8 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 9 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 10 Yates and (C) qualified production costs that are attributable to scor- 11 ing shall be eligible for an additional ten percent credit on such scor- 12 ing costs when incurred within the state and when such scoring costs 13 include payment to a minimum of five musicians. 14 (3) No qualified production costs used by a taxpayer either as the 15 basis for the allowance of the credit provided for under this section or 16 used in the calculation of the credit provided for under this section 17 shall be used by such taxpayer to claim any other credit allowed pursu- 18 ant to this chapter. 19 (4) Notwithstanding the foregoing provisions of this subdivision, a 20 qualified independent film production company that has applied for cred- 21 it under the provisions of this section, agrees as a condition for the 22 granting of the credit: (i) to include in each qualified film distrib- 23 uted by DVD, or other media for the secondary market, a New York promo- 24 tional video approved by the governor's office of motion picture and 25 television development or to include in the end credits of each quali- 26 fied film "Filmed With the Support of the New York State Governor's 27 Office of Motion Picture and Television Development" and a logo provided 28 by the governor's office of motion picture and television development, 29 and (ii) to certify that it will purchase taxable tangible property and 30 services, defined as qualified production costs pursuant to paragraph 31 one of subdivision (b) of this section, only from companies registered 32 to collect and remit state and local sales and use taxes pursuant to 33 articles twenty-eight and twenty-nine of this chapter. 34 (b) Definitions. As used in this section, the following terms shall 35 have the following meanings: 36 (1) "Qualified production costs" means production costs only to the 37 extent such costs, excluding labor costs, do not exceed sixty million 38 dollars and are attributable to the use of tangible property or the 39 performance of services within the state directly and predominantly in 40 the production (including pre-production and post production) of a qual- 41 ified film. In the case of an eligible relocated television series, the 42 term "qualified production costs" shall include, in the first season 43 that the eligible relocated television series is produced in New York 44 after relocation, qualified relocation costs. Provided, however, that 45 the aggregate total eligible qualified production costs for producers, 46 writers, directors, performers (other than background actors with no 47 scripted lines), and composers shall not exceed forty percent of the 48 aggregate sum total of all other qualified production costs. 49 (2) "Production costs" means any costs for tangible property used and 50 services performed directly and predominantly in the production (includ- 51 ing pre-production and post production) of a qualified film. 52 "Production costs" shall not include costs for a story, script or 53 scenario to be used for a qualified film. "Production costs" generally 54 include writers, directors, composers and performers, technical and crew 55 production costs, such as expenditures for film production facilities, 56 or any part thereof, props, makeup, wardrobe, film processing, camera, S. 3009--C 64 A. 3009--C

1 sound recording, scoring, set construction, lighting, shooting, editing 2 and meals. 3 (3) "Qualified film" means a scripted narrative feature-length film, 4 television film, relocated television series or television series, 5 regardless of the medium by means of which the film or series is created 6 or conveyed. For the purposes of the credit provided by this section 7 only, a "qualified film" whose majority of principal photography shoot- 8 ing days in the production of the qualified film are shot in Westches- 9 ter, Rockland, Nassau, or Suffolk county or any of the five New York 10 City boroughs shall have a minimum budget of one million dollars. A 11 "qualified film", whose majority of principal photography shooting days 12 in the production of the qualified film are shot in any other county of 13 the state than those listed in the preceding sentence shall have a mini- 14 mum budget of two hundred fifty thousand dollars. "Qualified film" shall 15 not include: (i) a television pilot, documentary film, news or current 16 affairs program, interview or talk program, "how-to" (i.e., instruc- 17 tional) film or program, film or program consisting primarily of stock 18 footage, sporting event or sporting program, game show, award ceremony, 19 film or program intended primarily for industrial, corporate or institu- 20 tional end-users, fundraising film or program, daytime drama (i.e., 21 daytime "soap opera"), commercials, music videos or "reality" program; 22 (ii) a production for which records are required under section 2257 of 23 title 18, United States code, to be maintained with respect to any 24 performer in such production (reporting of books, films, etc. with 25 respect to sexually explicit conduct); or (iii) a television series 26 commonly known as variety entertainment, variety sketch and variety 27 talk, i.e., a program with components of improvisational or scripted 28 content (monologues, sketches, interviews), either exclusively or in 29 combination with other entertainment elements such as musical perform- 30 ances, dancing, cooking, crafts, pranks, stunts, and games and which may 31 be further defined in regulations of the commissioner of economic devel- 32 opment. 33 (4) "Film production facility" shall mean a building and/or complex of 34 buildings and their improvements and associated back-lot facilities in 35 which films are or are intended to be regularly produced and which 36 contain at least one sound stage, provided, however, that an armory 37 owned by the state or city of New York located in the city of New York 38 shall not be considered to be a "film production facility" unless such 39 facility is used by a qualified independent film production company. 40 (5) "Qualified film production facility" shall mean a film production 41 facility in the state, which contains at least one sound stage having a 42 minimum of seven thousand square feet of contiguous production space. 43 (6) "Qualified independent film production company" is a corporation, 44 partnership, limited partnership, or other entity or individual, that or 45 who (i) is principally engaged in the production of a qualified film, 46 (ii) is not publicly traded, and (iii) is not majority owned, fifty-one 47 percent or more, by a company publicly traded on a United States stock 48 exchange. 49 (7) "Relocated television series" shall mean the first two years of a 50 regularly occurring production intended to run in its initial broadcast, 51 regardless of the medium or mode of its distribution, in a series of 52 narrative and/or thematically related episodes, each of which has a 53 running time of at least thirty minutes in length (inclusive of commer- 54 cial advertisement and interstitial programming, if any), which had 55 filmed a minimum of six episodes of the television series outside the 56 state immediately prior to relocating to the state, where the television S. 3009--C 65 A. 3009--C

1 series had a total minimum budget of at least one million dollars per 2 episode. For the purposes of this definition only, a television series 3 produced by and for media services providers described as streaming 4 services and/or digital platforms (and excluding network/cable) shall 5 mean a regularly occurring production intended to run in its initial 6 release in a series of narrative and/or thematically related episodes, 7 the aggregate length of which is at least seventy-five minutes, although 8 the episodes themselves may vary in duration from the thirty minutes 9 specified for network/cable production. 10 (8) "Qualified relocation costs" means the costs incurred, excluding 11 wages, salaries and other compensation, in the first season that a relo- 12 cated television series relocates to New York, including such costs 13 incurred to transport sets, props and wardrobe to New York and other 14 costs as determined by the department of economic development to the 15 extent such costs do not exceed six million dollars. 16 (9) If the total amount of allocated credits applied for in any 17 particular year is less than the aggregate amount of tax credits allowed 18 for such year under this section, any unused portion may be carried over 19 and added to the aggregate amount of credits allowed in the next 20 succeeding taxable year or years. 21 (c) Cross-references. For application of the credit provided for in 22 this section, see the following provisions of this chapter: 23 (1) article 9-A: section 210-B: subdivision 20-a. 24 (2) article 22: section 606: subsection (gg-1). 25 (d) Notwithstanding any provision of this chapter, employees and offi- 26 cers of the governor's office of motion picture and television develop- 27 ment and the department shall be allowed and are directed to share and 28 exchange information regarding the credits applied for, allowed, or 29 claimed pursuant to this section and taxpayers who are applying for 30 credits or who are claiming credits, including information contained in 31 or derived from credit claim forms submitted to the department and 32 applications for credit submitted to the governor's office of motion 33 picture and television development. 34 (e) Allocation of credit. The aggregate amount of tax credits allowed 35 under this section, subdivision twenty-a of section two hundred ten and 36 subsection (gg-1) of section six hundred six of this chapter in any 37 calendar year shall be (1) twenty million dollars for qualified films 38 with a budget of less than ten million dollars of qualified production 39 costs; and (2) eighty million dollars for qualified films with a budget 40 of ten million dollars or more of qualified production costs. There 41 shall be at least two application periods each year; such aggregate 42 amount of credits shall be allocated by the governor's office for motion 43 picture and television development among taxpayers in order of priority 44 based upon the date of filing of an application for allocation of the 45 independent film production credit with such office within each applica- 46 tion period. If the commissioner of economic development determines that 47 the aggregate amount of tax credits available for an application period 48 under paragraph one of this subdivision have been previously allocated, 49 and determines that the pending applications from eligible applicants 50 for the other application period in such calendar year is insufficient 51 to utilize the balance of unallocated tax credits for such period, then 52 such commissioner may allocate to productions eligible under such para- 53 graph any credits that remain unallocated for such period pursuant to 54 paragraph two of this subdivision. Provided, however, the total amount 55 of allocated credits applied in any calendar year shall not exceed the S. 3009--C 66 A. 3009--C

1 aggregate amount of tax credits allowed for such year under this 2 section. 3 (f) (1) The commissioner of economic development shall reduce by one- 4 half of one percent the amount of credit allowed to a taxpayer and this 5 reduced amount shall be reported on a certificate of tax credit issued 6 pursuant to this section and the regulations promulgated by the commis- 7 sioner of economic development to implement this credit program. 8 (2) By January thirty-first of each year, the commissioner of economic 9 development shall report to the comptroller the total amount of such 10 reductions of tax credit during the immediately preceding calendar year. 11 On or before March thirty-first of each year, the comptroller shall 12 transfer without appropriations from the general fund to the empire 13 state entertainment diversity job training development fund established 14 under section ninety-seven-ff of the state finance law an amount equal 15 to the total amount of such reductions reported by the commissioner of 16 economic development for the immediately preceding calendar year. 17 (g) Credit recapture. If a certificate of tax credit issued by the 18 department of economic development pursuant to this section is revoked 19 by such department because the taxpayer does not meet the eligibility 20 requirements of this section, the amount of credit described in this 21 section and claimed by the taxpayer prior to that revocation shall be 22 added back to tax in the taxable year in which any such revocation 23 becomes final. 24 § 10. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 20-a to read as follows: 26 20-a. Empire state independent film production credit. (a) Allowance 27 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 28 of this chapter shall be allowed a credit to be computed as provided in 29 such section twenty-four-d against the tax imposed by this article. 30 (b) Application of credit. The credit allowed under this subdivision 31 for any taxable year shall not reduce the tax due for such year to less 32 than the fixed dollar minimum amount prescribed in paragraph (d) of 33 subdivision one of section two hundred ten of this article. Provided, 34 however, that if the amount of the credit allowable under this subdivi- 35 sion for any taxable year reduces the tax to such amount or if the 36 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 37 the excess shall be treated as an overpayment of tax to be credited or 38 refunded in accordance with the provisions of section one thousand 39 eighty-six of this chapter. Provided, however, the provisions of 40 subsection (c) of section one thousand eighty-eight of this chapter 41 notwithstanding, no interest shall be paid thereon. 42 § 11. Section 606 of the tax law is amended by adding a new subsection 43 (gg-1) to read as follows: 44 (gg-1) Empire state independent film production credit. (1) Allowance 45 of credit. A taxpayer who is eligible pursuant to section twenty-four-d 46 of this chapter shall be allowed a credit to be computed as provided in 47 such section twenty-four-d against the tax imposed by this article. 48 (2) Application of credit. If the amount of the credit allowable under 49 this subsection for any taxable year exceeds the taxpayer's tax for such 50 year, the excess shall be treated as an overpayment of tax to be credit- 51 ed or refunded as provided in section six hundred eighty-six of this 52 article, provided, however, that no interest shall be paid thereon. 53 § 12. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 54 of the tax law is amended by adding a new clause (lii) to read as 55 follows: 56 (lii) Empire state film Amount of credit for qualified S. 3009--C 67 A. 3009--C

1 production credit under production costs in production of 2 subsection (gg-1) a qualified film under 3 subdivision twenty-a of 4 section two hundred ten-B 5 § 13. This act shall take effect immediately and shall apply to 6 initial applications received on or after January 1, 2025, provided, 7 however, that the amendments to paragraph 4 of subdivision (e) of 8 section 24 of the tax law made by section three of this act shall take 9 effect on the same date and in the same manner as section 6 of chapter 10 683 of the laws of 2019, takes effect.

11 PART J

12 Section 1. Subdivisions 1, 2, 3, 4, 7, 9, 10 and 13 of section 492 of 13 the economic development law, as added by section 2 of part AAA of chap- 14 ter 56 of the laws of 2024, are amended to read as follows: 15 1. "Average full-time employment" shall mean the average number of 16 full-time positions employed by [ ] an eligible business [ ] in an 17 eligible industry during a given period. 18 2. "Average starting full-time employment" shall be calculated as the 19 average number of full-time positions employed by [ ] an eligible busi- 20 ness [ ] in an eligible industry during a timeframe to be deter- 21 mined by the department of economic development. 22 3. "Average ending full-time employment" shall be calculated as the 23 average number of full-time positions employed by [ ] an eligible busi- 24 ness [ ] in an eligible industry during a timeframe to be deter- 25 mined by the department of economic development. 26 4. "Certificate of tax credit" means the document issued to [ ] an 27 eligible business [ ] by the department after the department has 28 verified that the eligible business [ ] has met all applicable 29 eligibility criteria in this article. The certificate shall specify the 30 exact amount of the tax credit under this article that [ ] an eligible 31 business [ ] may claim, pursuant to section four hundred ninety- 32 five and section four hundred ninety-six of this article. 33 7. "Eligible business" shall mean a print media or broadcast media 34 business operating within an eligible industry, which also carries media 35 liability insurance. For the purposes of this subdivision, each print 36 media publication serving a separate market, as determined by the 37 department, shall be treated as a separate print media business. 38 9. "Eligible industry" means [ ] an eligible business [ ] operat- 39 ing predominantly in the newspaper publishing sector or the broadcast 40 media sector, as determined by the department. 41 10. "Net employee increase" means an increase of at least one full- 42 time employee between the average starting full-time employment and the 43 average ending full-time employment of [ ] an eligible business [ 44 ], as defined by the department. 45 13. "Independently owned" shall mean a business entity that is not[ 46 ] a publicly traded entity or no more than five percent of the bene- 47 ficial ownership of which is owned, directly or indirectly by a publicly 48 traded entity[ 49 50 ]. 51 § 2. Subdivision 3 of section 494 of the economic development law, as 52 added by section 2 of part AAA of chapter 56 of the laws of 2024, is 53 amended to read as follows: S. 3009--C 68 A. 3009--C

1 3. After reviewing a business entity's completed final application and 2 determining that the business entity meets the eligibility criteria as 3 set forth in this article, the department may issue [ 4 ] a certificate of tax credit. [ 5 ] 6 § 3. Subdivisions 1, 2 and 3 of section 495 of the economic develop- 7 ment law, as added by section 2 of part AAA of chapter 56 of the laws of 8 2024, are amended to read as follows: 9 1. A business entity that meets the eligibility requirements of 10 section four hundred ninety-three of this article, and meets any addi- 11 tional eligibility criteria as articulated in regulations established 12 pursuant to this section, and demonstrates a net employee increase, may 13 be [ ] issued a certificate of tax credit equal to five 14 thousand dollars per each full-time net employee increase as defined in 15 section four hundred ninety-two of this article. A business entity, 16 including a partnership, limited liability company and subchapter S 17 corporation, may not receive in excess of twenty thousand dollars in tax 18 credits for each print media business or broadcast media business under 19 this program. 20 2. A business entity that meets the eligibility requirements of 21 section four hundred ninety-three of this article, and meets any addi- 22 tional eligibility criteria as articulated in regulations established 23 pursuant to this section, may be [ ] issued a certif- 24 icate of tax credit equal to fifty percent of annual wages of an eligi- 25 ble employee. The calculation of such a credit shall only be applied to 26 up to fifty thousand dollars in wages paid annually per eligible employ- 27 ee. A business entity, including a partnership, limited liability compa- 28 ny and subchapter S corporation, may not receive in excess of three 29 hundred thousand dollars in tax credits for each print media business or 30 broadcast media business under this program. 31 3. The total amount of tax credits listed on certificates of tax cred- 32 it issued by the commissioner pursuant to this article may not exceed 33 thirty million dollars for each year the credit is available. Within 34 this amount, the newspaper and broadcast media new job creation compo- 35 nent of the credit may not exceed four million dollars per year and the 36 newspaper and broadcast media existing jobs component of the credit may 37 not exceed twenty-six million dollars per year. Fifty percent of the 38 newspaper and broadcast media existing jobs component credits will be 39 set-aside for eligible [ ] businesses with one hundred 40 or fewer employees. Fifty percent of the newspaper and broadcast media 41 existing jobs component credits will be set-aside for eligible [ 42 ] businesses with over one hundred employees. In both instances 43 the cap will be three hundred thousand dollars under this program. 44 § 4. Subdivisions (a), (b) and (c) of section 49 of the tax law, as 45 added by section 3 of part AAA of chapter 56 of the laws of 2024, are 46 amended to read as follows: 47 (a) Allowance of credit. A taxpayer subject to tax under article 48 nine-A or twenty-two of this chapter shall be allowed a credit against 49 such tax, pursuant to the provisions referenced in subdivision (e) of 50 this section. The amount of the credit is equal to the amount determined 51 pursuant to article twenty-seven of the economic development law and 52 shall be based on the certificates of tax credit issued to eligible 53 businesses owned by the taxpayer or by an entity of which the taxpayer 54 is a partner or shareholder . A taxpayer that is a partner in a partner- 55 ship, member of a limited liability company or shareholder in a subchap- 56 ter S corporation shall be allowed its pro-rata share of the credit S. 3009--C 69 A. 3009--C

1 allowed for the partnership, limited liability company or subchapter S 2 corporation. No cost or expense paid or incurred that is included as 3 part of the calculation of this credit shall be the basis of any other 4 tax credit allowed under this chapter. 5 (b) Eligibility. To be eligible to claim the newspaper and broadcast 6 media jobs tax credit the eligible businesses owned by the taxpayer or 7 by an entity of which the taxpayer is a partner or shareholder shall 8 have been issued a certificate of tax credit by the department of 9 economic development pursuant to article twenty-seven of the economic 10 development law, which certificate or certificates shall set forth the 11 amount of the credit that may be claimed for the taxable year. The 12 taxpayer shall be allowed to claim only the amount or amounts listed on 13 the certificate or certificates of tax credit issued to eligible busi- 14 nesses owned by the taxpayer or by an entity of which the taxpayer is a 15 partner or shareholder for that taxable year. 16 (c) Tax return requirement. The taxpayer shall be required to attach 17 to its tax return, in the form prescribed by the commissioner, proof of 18 receipt of its certificate or certificates of tax credit issued by the 19 commissioner of the department of economic development. 20 § 5. This act shall take effect immediately and apply to taxable years 21 beginning on or after January 1, 2025.

22 PART K

23 Section 1. Subdivisions (b) and (c) of section 45 of the tax law, as 24 added by section 1 of part OO of chapter 59 of the laws of 2022, are 25 amended to read as follows: 26 (b) Allocation of credit. The aggregate amount of tax credits allowed 27 under this section, subdivision fifty-five of section two hundred ten-B 28 and subsection (nnn) of section six hundred six of this chapter in any 29 taxable year shall be five million dollars. Such credit shall be allo- 30 cated by the department of economic development in order of priority 31 based upon the date of filing an application for allocation of digital 32 gaming media production credit with such office. If the total amount of 33 allocated credits applied for in any particular year exceeds the aggre- 34 gate amount of tax credits allowed for such year under this section, 35 such excess shall be treated as having been applied for on the first day 36 of the subsequent taxable year. Provided, however, that for taxable 37 years beginning on or after January first, two thousand twenty-three, if 38 the total amount of allocated credits applied for in any particular year 39 is less than the aggregate amount of tax credits allowed for such year 40 under this section, any unused portion may be carried over and added to 41 the aggregate amount of credits allowed in the next succeeding taxable 42 year or years. 43 (c) Definitions. As used in this section: 44 (1) "Qualified digital gaming media production" means: (i) a website, 45 the digital media production costs of which are paid or incurred predo- 46 minately in connection with (A) video simulation, animation, text, 47 audio, graphics or similar gaming related property embodied in digital 48 format, and (B) interactive features of digital gaming (e.g., links, 49 message boards, communities or content manipulation); (ii) video or 50 interactive games produced primarily for distribution over the internet, 51 wireless network or successors thereto; and (iii) animation, simulation 52 or embedded graphics digital gaming related software intended for 53 commercial distribution regardless of medium; provided, however, that 54 the qualified digital game development media productions described in S. 3009--C 70 A. 3009--C

1 subparagraphs (i) through (iii) of this paragraph must have digital 2 media production costs equal to or in excess of [ ] fifty 3 thousand dollars per production. A qualified digital gaming media 4 production does not include a website, video, interactive game or soft- 5 ware that is used predominately for: electronic commerce (retail or 6 wholesale purposes other than the sale of video interactive games), 7 gambling (including activities regulated by a New York gaming agency), 8 or political advocacy purposes. 9 (2) "Digital gaming media production costs" means any costs for wages 10 or salaries paid to individuals, other than actors or writers, directly 11 employed for services performed by those individuals directly and 12 predominantly in the creation of a digital gaming media production or 13 productions. Up to [ ] two hundred thousand dollars in wages and sala- 14 ries paid to such employees, other than actors and writers, directly 15 employed shall be used in the calculation of this credit. Digital gaming 16 media production costs include but shall not be limited to payments for 17 services performed directly and predominantly in the development 18 (including concept and prototype creation), design (including narrative 19 direction and sound design) , production (including [ ] 20 testing and encoding ), [ 21 ] editing (including bug fixing) and compositing 22 (including the integration of digital files for interaction by end 23 users) of digital gaming media. Digital gaming media production costs 24 shall not include expenses incurred for the distribution, marketing, 25 promotion, or advertising content generated by end users, other costs 26 not directly [ ] related to the creation, production or 27 modification of digital gaming media or costs used by the taxpayer as a 28 basis of the calculation of any other tax credit allowed under this 29 chapter. In addition, [ ] wages 30 related to the creation of digital gaming media for any person who 31 predominantly serves in a corporate capacity in the role of chief execu- 32 tive officer, chief financial officer, president, treasurer or similar 33 corporate position shall not be included as digital gaming media 34 production costs if the digital gaming media production entity has more 35 [ ] than ten employees. [ ] Wages paid to a 36 person serving in such a role for the digital gaming media production 37 entity shall also not be included if the person was employed by a 38 related person of the digital gaming media production entity within 39 sixty months of the date the digital gaming media production entity 40 applied for the tax credit certificate described in subdivision (d) of 41 this section. For purposes of the preceding sentence, a related person 42 shall have the same meaning as the term "related person" in section four 43 hundred sixty-five of the internal revenue code. Furthermore, any income 44 or other distribution to any individual including, but not limited to, 45 licensing or royalty fees, who holds an ownership interest in a digital 46 gaming media production entity, whether or not such individual is serv- 47 ing in the role of chief executive officer, chief financial officer, 48 president, treasurer or similar position for such an entity, shall not 49 be included as digital gaming media production costs. Up to [ ] five 50 million dollars in qualified digital gaming media production costs per 51 production shall be used in the calculation of this credit. Digital 52 gaming media production costs shall not include those costs used by the 53 taxpayer or another taxpayer as the basis calculation of any other tax 54 credit allowed under this chapter. 55 (3) "Qualified digital gaming media production costs" means digital 56 gaming media production costs only to the extent such costs are attrib- S. 3009--C 71 A. 3009--C

1 utable to the use of property or the performance of services by any 2 persons within the state directly and predominantly in the creation, 3 production or modification of digital gaming related media. Such total 4 production costs incurred and paid in this state shall be equal to or 5 exceed [ ] fifty-one percent of total cost of an eligible 6 production incurred and paid within and without this state. 7 (4) "Digital gaming media production entity" means a corporation, 8 partnership, limited partnership or other entity or individual engaged 9 in qualified digital game development media production. 10 § 2. This act shall take effect immediately.

11 PART L

12 Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws 13 of 2021 amending the tax law and the state finance law relating to 14 establishing the New York city musical and theatrical production tax 15 credit and establishing the New York state council on the arts cultural 16 program fund, as amended by section 1 of subpart E of part I of chapter 17 59 of the laws of 2023, is amended to read as follows: 18 § 6. This act shall take effect immediately; provided however, that 19 sections one, two, three and four of this act shall apply to taxable 20 years beginning on or after January 1, 2021, and before January 1, 21 [ ] 2028 and shall expire and be deemed repealed January 1, [ ] 22 2028 ; provided further, however that the obligations under paragraph 3 23 of subdivision (g) of section 24-c of the tax law, as added by section 24 one of this act, shall remain in effect until December 31, [ ] 2029 . 25 § 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section 26 24-c of the tax law, as amended by section 3 of subpart E of part I of 27 chapter 59 of the laws of 2023, is amended to read as follows: 28 (i) "The credit period of a qualified New York city musical and theat- 29 rical production company" is the period starting on the production start 30 date and ending on the earlier of the date the qualified musical and 31 theatrical production has expended sufficient qualified production 32 expenditures to reach its credit cap, September thirtieth, two thousand 33 [ ] twenty-seven or the date the qualified musical and theat- 34 rical production closes. 35 § 3. Subdivision (c) of section 24-c of the tax law, as amended by 36 section 4 of subpart E of part I of chapter 59 of the laws of 2023, is 37 amended to read as follows: 38 (c) The credit shall be allowed for the taxable year beginning on or 39 after January first, two thousand twenty-one but before January first, 40 two thousand [ ] twenty-eight . A qualified New York city 41 musical and theatrical production company shall claim the credit in the 42 year in which its credit period ends. 43 § 4. Subdivision (f) of section 24-c of the tax law, as added by 44 section 1 of subpart B of part PP of chapter 59 of the laws of 2021, 45 paragraphs 1 and 2 as amended by section 5 of subpart E of part I of 46 chapter 59 of the laws of 2023, is amended to read as follows: 47 (f) Maximum amount of credits. (1) The aggregate amount of tax cred- 48 its allowed under this section, subdivision fifty-seven of section two 49 hundred ten-B and subsection (mmm) of section six hundred six of this 50 chapter shall be [ ] four hundred million dollars. Such aggregate 51 amount of credits shall be allocated by the department of economic 52 development among taxpayers based on the date of first performance of 53 the qualified musical and theatrical production. S. 3009--C 72 A. 3009--C

1 (2) The commissioner of economic development, after consulting with 2 the commissioner, shall promulgate regulations to establish procedures 3 for the allocation of tax credits as required by this section. Such 4 rules and regulations shall include provisions describing the applica- 5 tion process, the due dates for such applications, the standards that 6 will be used to evaluate the applications, the documentation that will 7 be provided by applicants to substantiate to the department the amount 8 of qualified production expenditures of such applicants, and such other 9 provisions as deemed necessary and appropriate. Notwithstanding any 10 other provisions to the contrary in the state administrative procedure 11 act, such rules and regulations may be adopted on an emergency basis. In 12 no event shall a qualified New York city musical and theatrical 13 production submit an application for this program after June thirtieth, 14 two thousand [ ] twenty-seven . 15 § 5. This act shall take effect immediately; provided, however, that 16 the amendments to section 24-c of the tax law, made by sections two, 17 three and four of this act, shall not affect the repeal of such section 18 and shall be deemed to be repealed therewith.

19 PART M

20 Section 1. Section 35 of the tax law, as added by section 12 of part U 21 of chapter 61 of the laws of 2011, is amended to read as follows: 22 § 35. Use of electronic means of communication. Notwithstanding any 23 other provision of New York state law, where the department has obtained 24 authorization of an online services account holder, in such form as may 25 be prescribed by the commissioner, the department may use electronic 26 means of communication to furnish any document it is required to mail 27 per law or regulation. If the department furnishes such document in 28 accordance with this section, department records of such transaction 29 shall constitute appropriate and sufficient proof of delivery thereof 30 and be admissible in any action or proceeding. Provided, however, that 31 if a taxpayer uses a department system to access taxpayer information, 32 including, but not limited to, notices, documents and account balance 33 information, that is not an electronic communication furnished in lieu 34 of mailing in accordance with this section, such accessed information 35 shall not give the taxpayer the right to a hearing in the division of 36 tax appeals, unless the right to protest such information is expressly 37 authorized by this chapter or another provision of law. 38 § 2. Subdivision 1 of section 2008 of the tax law, as amended by 39 section 3 of subpart C of part V-1 of chapter 57 of the laws of 2009, is 40 amended to read as follows: 41 1. All proceedings in the division of tax appeals shall be commenced 42 by the filing of a petition with the division of tax appeals protesting 43 any written notice of the division of taxation , including any electronic 44 notice provided in accordance with section thirty-five of this chapter, 45 which has advised the petitioner of a tax deficiency, a determination of 46 tax due, a denial of a refund or credit application, a cancellation, 47 revocation or suspension of a license, permit or registration, a denial 48 of an application for a license, permit or registration or any other 49 notice which expressly gives a person the right to a hearing in the 50 division of tax appeals under this chapter or other law. Provided, 51 however, that any written communications of the division of taxation 52 that advise a taxpayer of a past-due tax liability, as defined in 53 section one hundred seventy-one-v of this chapter, shall not give a 54 person the right to a hearing in the division of tax appeals. S. 3009--C 73 A. 3009--C

1 § 3. This act shall take effect immediately.

2 PART N

3 Section 1. Section 6 of the tax law, as added by chapter 765 of the 4 laws of 1985, is amended to read as follows: 5 § 6. Filing of electronic warrants and warrant-related records in the 6 department of state. [ ] 1. Notwithstanding 7 any provision of this chapter or a [ ] related 8 statute to the contrary, all warrants and warrant-related records issued 9 by the department shall be filed electronically by the department in the 10 department of state [ 11 12 13 14 15 ]. No fee shall be required to be paid for such 16 [ ] filings . [ 17 18 ] On the date of the electronic 19 filing of a warrant, as confirmed by the department of state pursuant to 20 subdivision five of this section: 21 (a) the amount of the tax stated in the warrant shall become a lien 22 upon the title to and interest in all real, personal or other property 23 located in New York state, owned by the person or persons named in the 24 warrant. The lien so created shall: 25 (i) attach to all real property and rights to real property located in 26 New York state that is owned by the person or persons named in the 27 warrant at any time during the period of the lien, including any real 28 property or rights to real property located in New York state that is 29 acquired by such person or persons after the lien arises; and 30 (ii) apply to all personal or other property and rights to personal or 31 other property located in New York state that is owned by the person or 32 persons named in the warrant at any time during the period of the lien, 33 including any personal or other property or rights to personal or other 34 property located in New York state that is acquired by such person or 35 persons after the lien arises; and 36 (b) the commissioner shall, in the right of the people of the state of 37 New York, be deemed to have obtained a judgment against the person or 38 persons named in the warrant for the amount of the tax stated in the 39 warrant. 40 2. Enforcement of a judgment obtained pursuant to subdivision one of 41 this section shall be as prescribed in article fifty-two of the civil 42 practice law and rules. 43 3. A written or electronic copy of any electronic warrant or warrant- 44 related record filed in the department of state shall be filed by the 45 department in the office of the clerk of the county named in the warrant 46 or warrant-related record. 47 4. Notwithstanding any provision of this chapter or a related statute 48 to the contrary, all warrant-related records issued by the department 49 that are authorized by applicable laws, including, but not limited to, 50 warrant satisfactions, vacaturs, amendments and expirations, and any 51 warrant-related record issued by the department on or after July first, 52 two thousand twenty-five that pertains to a warrant filed prior to July 53 first, two thousand twenty-five, shall be filed electronically by the 54 department in the department of state. No fee shall be required to be S. 3009--C 74 A. 3009--C

1 paid for such filings. A written or electronic copy of the electronic 2 warrant-related record filed in the department of state shall be filed 3 by the department in the office of the clerk of the county named in the 4 warrant-related record. 5 5. The department shall file warrants and warrant-related records 6 electronically with the department of state. The department of state 7 shall provide electronic notice to the department confirming the date of 8 filing of the warrants and warrant-related records. The department of 9 state shall also make information regarding the warrants and warrant-re- 10 lated records, including the date of filing, available to the public and 11 searchable by the name of the person or persons listed in the tax 12 warrant. Upon request of the commissioner, the department of state shall 13 certify that a warrant or warrant-related record has been filed and the 14 date of such filing. 15 6. Notwithstanding any other provision of this chapter concerning the 16 place of filing of a tax warrant and the creation thereby of a tax lien 17 and judgment, the provisions of this section shall govern such matters 18 for purposes of any taxes imposed by or pursuant to this chapter. 19 § 2. Subdivision 1 of section 174-a of the tax law, as added by chap- 20 ter 176 of the laws of 1997, is amended to read as follows: 21 1. General rule. Notwithstanding any provision of law to the contrary, 22 the provisions of the civil practice law and rules relating to the dura- 23 tion of a lien of a docketed judgment in and upon real property of a 24 judgment debtor, and the extension of any such lien, shall apply to any 25 warrant or other warrant-related document electronically filed on behalf 26 of the commissioner against a taxpayer with the [ 27 ] department 28 of state , whether such warrant is being enforced by a sheriff or an 29 officer or employee of the department. 30 § 3. Section 175 of the tax law, as amended by chapter 170 of the laws 31 of 1994, is amended to read as follows: 32 § 175. Manner of execution of instruments by the commissioner. 33 Notwithstanding any other provision of law, whenever a statute author- 34 izes or requires the commissioner to execute an instrument, such instru- 35 ment shall be executed by having the name or title of the commissioner 36 appear on such instrument and, underneath such name or title, such 37 instrument shall be signed by the commissioner or by a deputy tax 38 commissioner or by the secretary to such commissioner[ ] . An 39 electronic signature may be used in lieu of a signature affixed by hand 40 pursuant to article three of the state technology law. The seal of such 41 commissioner [ ] may be affixed or [ ] appear on such instrument 42 as a facsimile which is engraved, printed or reproduced in any other 43 manner. No acknowledgment of the execution of any such instrument shall 44 be necessary for the purpose of the recordation thereof or for any other 45 purpose. 46 § 4. This act shall take effect July 1, 2025 and shall apply to 47 warrants and warrant-related records pertaining to such warrants filed, 48 or deemed to have been filed, on or after such date; provided, however, 49 that the department of taxation and finance and the department of state 50 are authorized to take any steps necessary to implement this act on or 51 before such effective date.

52 PART O S. 3009--C 75 A. 3009--C

1 Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real 2 property tax law, as amended by section 1 of part RR of chapter 59 of 3 the laws of 2019, is amended to read as follows: 4 (b-1) Income. For final assessment rolls to be used for the levy of 5 taxes for the two thousand eleven-two thousand twelve through two thou- 6 sand eighteen-two thousand nineteen school years, the parcel's affil- 7 iated income may be no greater than five hundred thousand dollars, as 8 determined by the commissioner pursuant to subdivision fourteen of this 9 section or section one hundred seventy-one-u of the tax law, in order to 10 be eligible for the basic exemption authorized by this section. Begin- 11 ning with the two thousand nineteen-two thousand twenty school year, for 12 purposes of the exemption authorized by this section, the parcel's 13 affiliated income may be no greater than two hundred fifty thousand 14 dollars, as so determined. As used herein, the term "affiliated income" 15 shall mean the combined income of all of the owners of the parcel who 16 resided primarily thereon on the applicable taxable status date, and of 17 any owners' spouses residing primarily thereon. For exemptions on final 18 assessment rolls to be used for the levy of taxes for the two thousand 19 eleven-two thousand twelve school year, affiliated income shall be 20 determined based upon the parties' incomes for the income tax year 21 ending in two thousand nine. In each subsequent school year, the appli- 22 cable income tax year shall be advanced by one year. The term "income" 23 as used herein shall have the same meaning as in subdivision four of 24 this section , and the provisions of clause (B) of subparagraph (ii) of 25 paragraph (b) of subdivision four of this section shall be equally 26 applicable to the basic exemption . 27 § 2. Paragraph (a) of subdivision 4 of section 425 of the real proper- 28 ty tax law, as amended by section 4 of part A of chapter 405 of the laws 29 of 1999 and subparagraph (i) as amended by section 2 of part E of chap- 30 ter 83 of the laws of 2002, is amended to read as follows: 31 (a) Age. (i) [ ] At least one of the owners who resides primarily on 32 the property must be [ ] sixty-five years of age or older as of 33 the date specified herein[ 34 35 36 ]. For the two thousand--two thousand one school 37 year, eligibility for the exemption shall be based upon age as of Decem- 38 ber thirty-first, two thousand. For each subsequent school year, the 39 applicable date shall be advanced by one year. 40 (ii) [ 41 42 ] In the case of property owned by [ 43 ] a married couple, if only one of the spouses is sixty-five years 44 of age or over, the exemption, once granted, shall not be rescinded 45 solely because of the death of the older spouse so long as the surviving 46 spouse is at least sixty-two years of age as of the date specified in 47 this paragraph. 48 § 3. The opening paragraph of subparagraph (i) of paragraph (b) of 49 subdivision 4 of section 425 of the real property tax law, as amended by 50 section 3 of part E of chapter 83 of the laws of 2002, is amended to 51 read as follows: 52 The combined income of all of the owners who primarily reside on the 53 property , and of any owners' spouses primarily residing on the [ 54 ] property , may not exceed the applicable income standard specified 55 herein. S. 3009--C 76 A. 3009--C

1 § 4. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 2 425 of the real property tax law, as amended by section 1 of part B of 3 chapter 59 of the laws of 2018, is amended to read as follows: 4 (ii) The term "income" as used herein shall mean the "adjusted gross 5 income" for federal income tax purposes as reported on the applicant's 6 federal or state income tax return for the applicable income tax year, 7 subject to any subsequent amendments or revisions, reduced by distrib- 8 utions, to the extent included in federal adjusted gross income, 9 received from an individual retirement account and an individual retire- 10 ment annuity; provided that if no such return was filed for the applica- 11 ble income tax year, "income" shall mean the [ ] 12 amount that would have been so reported if such a return had been filed. 13 Provided further, that [ ] : 14 (A) Effective with exemption applications for final assessment rolls 15 to be completed in two thousand nineteen, where an income-eligibility 16 determination is wholly or partly based upon the income of one or more 17 individuals who did not file a return for the applicable income tax 18 year, then in order for the application to be considered complete, each 19 such individual must file a statement with the department showing the 20 source or sources of [ ] such individual's income for that 21 income tax year, and the amount or amounts thereof, that would have been 22 reported on such a return if one had been filed. Such statement shall be 23 filed at such time, and in such form and manner, as may be prescribed by 24 the department, and shall be subject to the secrecy provisions of the 25 tax law to the same extent that a personal income tax return would be. 26 The department shall make such forms and instructions available for the 27 filing of such statements. The local assessor shall upon the request of 28 a taxpayer assist such taxpayer in the filing of the statement with the 29 department. 30 (B) Notwithstanding the foregoing provisions of this subparagraph, 31 where property is owned solely by a person or persons who received the 32 exemption for three consecutive years without having filed returns for 33 the applicable income tax years, but who demonstrated their eligibility 34 for the exemption to the commissioner's satisfaction by filing state- 35 ments pursuant to clause (A) of this subparagraph, such person or 36 persons shall be presumed to satisfy the applicable income-eligibility 37 requirements each year thereafter and shall not be required to continue 38 to file such statements in the absence of a specific request therefor 39 from the commissioner. Nothing contained herein shall be construed to 40 prevent the commissioner from denying an exemption pursuant to this 41 section when the commissioner determines that a property owner has a 42 source of income that renders that owner ineligible for that exemption. 43 § 5. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of 44 subdivision 4 of section 425 of the real property tax law are REPEALED 45 and a new clause (C) is added to read as follows: 46 (C) When the commissioner determines that property is ineligible for a 47 STAR exemption, notice of such determination and an opportunity for 48 review thereof shall be provided in the manner set forth in subdivision 49 four-b of this section. 50 § 6. Section 425 of the real property tax law is amended by adding a 51 new subdivision 4-b to read as follows: 52 4-b. Authority of the commissioner in relation to eligibility determi- 53 nations. (a) (i) Notwithstanding any provision of this section to the 54 contrary, it shall be the responsibility of the commissioner to deter- 55 mine eligibility for the basic and enhanced STAR exemptions authorized 56 by this section, in consultation with local assessors as necessary. S. 3009--C 77 A. 3009--C

1 (ii) The commissioner's eligibility determinations shall be based upon 2 data the commissioner has obtained from local assessment rolls, personal 3 income tax returns, the STAR registration program, the STAR income 4 verification program and such other data sources as may be available to 5 the commissioner. 6 (iii) The process followed by the commissioner to verify eligibility 7 for the basic and enhanced STAR exemptions shall be the same, except to 8 the extent that differences are required by law. 9 (b) If the commissioner should determine that a parcel that has a 10 basic STAR exemption is eligible for an enhanced STAR exemption, the 11 commissioner shall so notify the assessor. The assessor shall thereupon 12 grant the parcel an enhanced STAR exemption without requesting a new 13 application from the owner. 14 (c) If the commissioner determines that property is not eligible for a 15 STAR exemption it has been receiving, the provisions of this subdivision 16 shall be applicable. 17 (i) The commissioner shall provide the property owners with notice and 18 an opportunity to show the commissioner that the property is eligible to 19 receive the exemption. If the owners fail to respond to such notice 20 within forty-five days from the mailing thereof, or if their response 21 does not show to the commissioner's satisfaction that the property is 22 eligible for the exemption, the commissioner shall direct the assessor 23 or other person having custody or control of the assessment roll or tax 24 roll to remove or deny the exemption, and to correct the roll according- 25 ly. Such a directive shall be binding upon the assessor or other person 26 having custody or control of the assessment roll or tax roll, and shall 27 be implemented by such person without the need for further documentation 28 or approval. 29 (ii) Neither an assessor nor a board of assessment review has the 30 authority to consider an objection to the removal or denial of an 31 exemption pursuant to this subdivision, nor may such an action be 32 reviewed in a proceeding to review an assessment pursuant to title one 33 or one-A of article seven of this chapter. Such an action may only be 34 challenged before the department of taxation and finance. If a taxpayer 35 is dissatisfied with the department's final determination, the taxpayer 36 may appeal that determination to the state board of real property tax 37 services in a form and manner to be prescribed by the commissioner. Such 38 appeal shall be filed within forty-five days from the issuance of the 39 department's final determination. If dissatisfied with the state board 40 of real property tax services' determination, the taxpayer may seek 41 judicial review thereof pursuant to article seventy-eight of the civil 42 practice law and rules. The taxpayer shall otherwise have no right to 43 challenge such final determination in a court action, administrative 44 proceeding or any other form of legal recourse against the commissioner, 45 the department of taxation and finance, the state board of real property 46 tax services, the assessor or other person having custody or control of 47 the assessment roll or tax roll regarding such action. 48 § 7. The section heading of section 171-u of the tax law, as added by 49 section 2 of part FF of chapter 57 of the laws of 2010, is amended to 50 read as follows: 51 Verification of [ ] eligibility for [ ] STAR exemption. 52 § 8. Subdivisions 1, 2, 3 and 4 of section 171-u of the tax law are 53 REPEALED, subdivision 5 is renumbered subdivision 2, and a new subdivi- 54 sion 1 is added to read as follows: S. 3009--C 78 A. 3009--C

1 (1) The commissioner shall verify the eligibility of properties for 2 STAR exemptions in the manner provided by section four hundred twenty- 3 five of the real property tax law. 4 § 9. Subparagraphs (B) and (E) of paragraph 1 of subsection (eee) of 5 section 606 of the tax law, subparagraph (B) as amended by section 10 of 6 part B of chapter 59 of the laws of 2018 and subparagraph (E) as amended 7 by section 2 of part H of chapter 59 of the laws of 2017, are amended to 8 read as follows: 9 (B) (i) "Affiliated income" shall mean [ 10 ] the combined income of all of the owners of the parcel who 11 resided primarily thereon as of [ ] July first of 12 the taxable year, and of any owners' spouses residing primarily thereon 13 as of such date[ 14 15 16 ] ; provided 17 that the income to be so combined shall be the "adjusted gross income" 18 for the taxable year as reported for federal income tax purposes, or 19 that would be reported as adjusted gross income if a federal income tax 20 return were required to be filed, reduced by distributions, to the 21 extent included in federal adjusted gross income, received from an indi- 22 vidual retirement account and an individual retirement annuity. 23 (ii) For taxable years beginning on and after January first, two thou- 24 sand nineteen, where an income-eligibility determination is wholly or 25 partly based upon the income of one or more individuals who did not file 26 a return pursuant to section six hundred fifty-one of this article for 27 the applicable income tax year, then in order to be eligible for the 28 credit authorized by this subsection, each such individual must file a 29 statement with the department showing the source or sources of [ 30 ] such individual's income for that income tax year, and the amount 31 or amounts thereof, that would have been reported on such a return if 32 one had been filed. Such statement shall be filed at such time, and in 33 such form and manner, as may be prescribed by the department, and shall 34 be subject to the provisions of section six hundred ninety-seven of this 35 article to the same extent that a return would be. The department shall 36 make such forms and instructions available for the filing of such state- 37 ments. The local assessor shall upon the request of a taxpayer assist 38 such taxpayer in the filing of the statement with the department. 39 [ 40 41 42 43 44 45 46 ] 47 (iii) Notwithstanding the foregoing provisions of this subparagraph, 48 where property is owned solely by a person or persons who received the 49 credit for three consecutive years without having filed returns for the 50 applicable income tax years, but who demonstrated their eligibility for 51 the credit to the commissioner's satisfaction by filing statements 52 pursuant to clause (ii) of this subparagraph, such person or persons 53 shall be presumed to satisfy the applicable income-eligibility require- 54 ments each year thereafter and shall not be required to continue to file 55 such statements in the absence of a specific request therefor from the 56 commissioner. Nothing contained herein shall be construed to prevent the S. 3009--C 79 A. 3009--C

1 commissioner from denying a credit pursuant to this subsection when the 2 commissioner determines that a property owner has a source of income 3 that renders that owner temporarily or permanently ineligible for that 4 credit. 5 (E) "Qualifying taxes" means the school district taxes that were or 6 are to be levied upon the taxpayer's primary residence for the associ- 7 ated fiscal year [ 8 ]; or, in the case of a city school district that is subject 9 to article fifty-two of the education law, the combined city and school 10 district taxes that were or are to be levied upon the taxpayer's primary 11 residence for the associated fiscal year [ 12 ]. Provided, however, that in the case 13 of a cooperative apartment, "qualifying taxes" means the school district 14 taxes that would have been levied upon the tenant-stockholder's primary 15 residence if it were separately assessed, as determined by the commis- 16 sioner based on the statement provided by the assessor pursuant to 17 subparagraph (ii) of paragraph (k) of subdivision two of section four 18 hundred twenty-five of the real property tax law, or in the case of a 19 cooperative apartment corporation that is described in subparagraph (iv) 20 of paragraph (k) of subdivision two of section four hundred twenty-five 21 of the real property tax law, one third of such amount. In no case shall 22 the term "qualifying taxes" be construed to include penalties or inter- 23 est. 24 § 10. Paragraph 2 of subsection (eee) of section 606 of the tax law is 25 REPEALED. 26 § 11. The opening paragraph and clause (i) of subparagraph (A) of 27 paragraph 4 of subsection (eee) of section 606 of the tax law, as 28 amended by section 8 of part A of chapter 73 of the laws of 2016, are 29 amended to read as follows: 30 Beginning with taxable years after two thousand [ ] twenty-four , 31 an enhanced STAR credit shall be available to a qualified taxpayer where 32 both of the following conditions are satisfied: 33 (i) [ ] At least one of the owners of the parcel that serves as the 34 taxpayer's primary residence [ ] is at least sixty-five years of age 35 as of December thirty-first of the taxable year [ 36 37 38 39 ]. In the 40 case of property owned by a married couple, [ ] if only one of 41 the spouses is sixty-five years of age or over, the credit, once 42 allowed, shall not be disallowed because of the death of the older 43 spouse so long as the surviving spouse is at least sixty-two years of 44 age as of December thirty-first of the taxable year. 45 § 12. Subsection (eee) of section 606 of the tax law is amended by 46 adding a new paragraph 14 to read as follows: 47 (14) The process employed by the commissioner in verifying eligibility 48 for the basic STAR credit shall be the same as for the enhanced STAR 49 credit, except to the extent that differences are required by law. 50 § 13. This act shall take effect immediately; provided, however, that 51 sections two, three, five, six, seven, eight, eleven and twelve of this 52 act shall take effect January 1, 2026; and the amendments to clause (i) 53 of subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of 54 the tax law made by section nine of this act shall take effect January 55 1, 2026. S. 3009--C 80 A. 3009--C

1 PART P

2 Intentionally Omitted

3 PART Q

4 Intentionally Omitted

5 PART R

6 Section 1. Subdivision (a) of section 213-a of the tax law, as amended 7 by chapter 166 of the laws of 1991, is amended to read as follows: 8 (a) Requirement of declaration.--Every taxpayer subject to the tax 9 imposed by section two hundred nine of this [ ] article shall make 10 a declaration of its estimated tax for the current privilege period, 11 containing such information as the commissioner of taxation and finance 12 may prescribe by regulations or instructions, if such estimated tax can 13 reasonably be expected to exceed one thousand dollars for taxable years 14 beginning before January first, two thousand twenty-six, or five thou- 15 sand dollars for taxable years beginning on or after January first, two 16 thousand twenty-six . If a taxpayer is subject to the tax surcharge 17 imposed under section two hundred nine-B of this article and such 18 taxpayer's estimated tax under section two hundred nine of this article 19 can reasonably be expected to exceed one thousand dollars for taxable 20 years beginning before January first, two thousand twenty-six , or five 21 thousand dollars for taxable years beginning on or after January first, 22 two thousand twenty-six, such taxpayer shall also make a declaration of 23 its estimated tax surcharge for the current privilege period. 24 § 2. Subdivision (a) of section 213-b of the tax law, as amended by 25 section 4 of part Z of chapter 59 of the laws of 2019, is amended to 26 read as follows: 27 (a) First installments for certain taxpayers.--In privilege periods of 28 twelve months ending at any time during the calendar year nineteen 29 hundred seventy and thereafter, every taxpayer subject to the tax 30 imposed by section two hundred nine of this [ ] article must pay 31 with the report required to be filed for the preceding privilege period, 32 or with an application for extension of the time for filing the report, 33 for taxable years beginning before January first, two thousand sixteen, 34 and must pay on or before the fifteenth day of the third month of such 35 privilege periods, for taxable years beginning on or after January 36 first, two thousand sixteen, an amount equal to (i) twenty-five percent 37 of the second preceding year's tax if the second preceding year's tax 38 exceeded one thousand dollars for taxable years beginning before January 39 first, two thousand twenty-six, or five thousand dollars for taxable 40 years beginning on or after January first, two thousand twenty-six, but 41 was equal to or less than one hundred thousand dollars, or (ii) forty 42 percent of the second preceding year's tax if the second preceding 43 year's tax exceeded one hundred thousand dollars. If the second preced- 44 ing year's tax under section two hundred nine of this [ ] article 45 exceeded one thousand dollars for taxable years beginning before January 46 first, two thousand twenty-six, or five thousand dollars for taxable 47 years beginning on or after January first, two thousand twenty-six, and 48 the taxpayer is subject to the tax surcharge imposed by section two 49 hundred nine-B of this [ ] article , the taxpayer must also pay S. 3009--C 81 A. 3009--C

1 with the tax surcharge report required to be filed for the second 2 preceding privilege period, or with an application for extension of the 3 time for filing the report, for taxable years beginning before January 4 first, two thousand sixteen, and must pay on or before the fifteenth day 5 of the third month of such privilege periods, for taxable years begin- 6 ning on or after January first, two thousand sixteen, an amount equal to 7 (i) twenty-five percent of the tax surcharge imposed for the second 8 preceding year if the second preceding year's tax was equal to or less 9 than one hundred thousand dollars, or (ii) forty percent of the tax 10 surcharge imposed for the second preceding year if the second preceding 11 year's tax exceeded one hundred thousand dollars. Provided, however, 12 that every taxpayer that is a New York S corporation must pay with the 13 report required to be filed for the preceding privilege period, or with 14 an application for extension of the time for filing the report, an 15 amount equal to (i) twenty-five percent of the preceding year's tax if 16 the preceding year's tax exceeded one thousand dollars for taxable years 17 beginning before January first, two thousand twenty-six, or five thou- 18 sand dollars for taxable years beginning on or after January first, two 19 thousand twenty-six, but was equal to or less than one hundred thousand 20 dollars, or (ii) forty percent of the preceding year's tax if the 21 preceding year's tax exceeded one hundred thousand dollars. 22 § 3. This act shall take effect immediately.

23 PART S

24 Section 1. Section 606 of the tax law is amended by adding a new 25 subsection (ttt) to read as follows: 26 (ttt) Organ donation credit. (1) For taxable years beginning on or 27 after January first, two thousand twenty-five, a full-year resident 28 taxpayer who, while living, donates one or more of their human organs to 29 another human being for human organ transplantation will be allowed a 30 credit against the taxes imposed by this article in the amount specified 31 in paragraph two of this subsection. For purposes of this paragraph, 32 "human organ" means all or part of a liver, pancreas, kidney, intestine, 33 lung, or bone marrow. 34 (2) A taxpayer may claim the credit allowed under this subsection only 35 once and in the taxable year in which the human organ transplantation 36 occurs. Such credit may be claimed, in an amount not to exceed ten thou- 37 sand dollars, for only the following unreimbursed expenses that are 38 incurred by the taxpayer and related to the taxpayer's organ donation: 39 (A) travel expenses; 40 (B) lodging expenses; and 41 (C) lost wages. 42 Provided, however, that this credit shall not apply to any organ 43 donation for which the taxpayer has received benefits under section 44 forty-three hundred seventy-one of the public health law. 45 (3) If the amount of the credit allowed under this subsection for any 46 taxable year shall exceed the taxpayer's tax for such year, the excess 47 shall be treated as an overpayment of tax to be credited or refunded in 48 accordance with the provisions of section six hundred eighty-six of this 49 article, provided, however, that no interest shall be paid thereon. 50 § 2. Paragraph 38 of subsection (c) of section 612 of the tax law, as 51 added by chapter 565 of the laws of 2006, the opening paragraph as 52 amended by chapter 814 of the laws of 2022, is amended to read as 53 follows: S. 3009--C 82 A. 3009--C

1 (38) [ ] For taxable years beginning before January first, two thou- 2 sand twenty-five, an amount of up to ten thousand dollars if a taxpayer, 3 while living, donates one or more of [ ] the taxpayer's human 4 organs to another human being for human organ transplantation. For 5 purposes of this paragraph, "human organ" means all or part of a liver, 6 pancreas, kidney, intestine, lung, or bone marrow. A subtract modifica- 7 tion allowed under this paragraph shall be claimed in the taxable year 8 in which the human organ transplantation occurs. Provided, however, that 9 this deduction shall not apply to any donation for which the taxpayer 10 has received benefits under section forty-three hundred seventy-one of 11 the public health law. 12 (A) A taxpayer shall claim the subtract modification allowed under 13 this paragraph only once and such subtract modification shall be claimed 14 for only the following unreimbursed expenses which are incurred by the 15 taxpayer and related to the taxpayer's organ donation: 16 (i) travel expenses; 17 (ii) lodging expenses; and 18 (iii) lost wages. 19 (B) The subtract modification allowed under this paragraph shall not 20 be claimed by a part-year resident or a non-resident of this state. 21 § 3. This act shall take effect immediately.

22 PART T

23 Section 1. Paragraph 3 of subsection (a) of section 954 of the tax 24 law, as amended by section 1 of part F of chapter 59 of the laws of 25 2019, is amended to read as follows: 26 (3) Increased by the amount of any taxable gift under section 2503 of 27 the internal revenue code not otherwise included in the decedent's 28 federal gross estate, made during the three year period ending on the 29 decedent's date of death, but not including any gift made: (A) when the 30 decedent was not a resident of New York state; or (B) before April 31 first, two thousand fourteen; or (C) between January first, two thousand 32 nineteen and January fifteenth, two thousand nineteen; or (D) that is 33 real or tangible personal property having an actual situs outside New 34 York state at the time the gift was made. Provided, however that this 35 paragraph shall not apply to the estate of a decedent dying on or after 36 January first, two thousand [ ] thirty-two. The amount by 37 which the total tax imposed under this article exceeds the total tax 38 that would have been imposed under this article if this paragraph did 39 not apply shall be treated as an obligation of the decedent as of the 40 decedent's death that is subject to the provisions of this article (but 41 which shall not be deductible for purposes of this article). 42 § 2. This act shall take effect immediately.

43 PART U

44 Section 1. Paragraphs (c) and (d) of subdivision 12 of section 210-B 45 of the tax law, as added by section 17 of part A of chapter 59 of the 46 laws of 2014, are amended to read as follows: 47 (c) Amount of credit. Except as provided in paragraph (d) of this 48 subdivision, the amount of credit for taxable years beginning before 49 January first, two thousand twenty-five shall be thirty-five percent of 50 the first six thousand dollars in qualified first-year wages earned by 51 each qualified employee and for taxable years beginning on or after 52 January first, two thousand twenty-five shall be the first five thousand S. 3009--C 83 A. 3009--C

1 dollars in qualified first-year wages earned by each qualified employee . 2 "Qualified first-year wages" means wages paid or incurred by the taxpay- 3 er during the taxable year to qualified employees which are attribut- 4 able, with respect to any such employee, to services rendered during the 5 one-year period beginning with the day the employee begins work for the 6 taxpayer. 7 (d) Credit where federal work opportunity tax credit applies. With 8 respect to any qualified employee whose qualified first-year wages under 9 paragraph (c) of this subdivision also constitute qualified first-year 10 wages for purposes of the work opportunity tax credit for vocational 11 rehabilitation referrals under section fifty-one of the internal revenue 12 code, the amount of credit under this subdivision for taxable years 13 beginning before January first, two thousand twenty-five shall be thir- 14 ty-five percent of the first six thousand dollars in qualified second- 15 year wages earned by each such employee and for taxable years beginning 16 on or after January first, two thousand twenty-five shall be the first 17 five thousand dollars in qualified second-year wages earned by each 18 qualified employee . "Qualified second-year wages" means wages paid or 19 incurred by the taxpayer during the taxable year to qualified employees 20 which are attributable, with respect to any such employee, to services 21 rendered during the one-year period beginning one year after the employ- 22 ee begins work for the taxpayer. 23 § 2. Paragraphs 3 and 4 of subsection (o) of section 606 of the tax 24 law, as added by chapter 142 of the laws of 1997, are amended to read as 25 follows: 26 (3) Amount of credit. Except as provided in paragraph four of this 27 subsection, the amount of credit for taxable years beginning before 28 January first, two thousand twenty-five shall be thirty-five percent of 29 the first six thousand dollars in qualified first-year wages earned by 30 each qualified employee and for taxable years beginning on or after 31 January first, two thousand twenty-five shall be the first five thousand 32 dollars in qualified first-year wages earned by each qualified employee . 33 "Qualified first-year wages" means wages paid or incurred by the taxpay- 34 er during the taxable year to qualified employees which are attribut- 35 able, with respect to any such employee, to services rendered during the 36 one-year period beginning with the day the employee begins work for the 37 taxpayer. 38 (4) Credit where federal work opportunity tax credit applies. With 39 respect to any qualified employee whose qualified first-year wages under 40 paragraph three of this subsection also constitute qualified first-year 41 wages for purposes of the work opportunity tax credit for vocational 42 rehabilitation referrals under section fifty-one of the internal revenue 43 code, the amount of credit under this subsection shall be for taxable 44 years beginning before January first, two thousand twenty-five thirty- 45 five percent of the first six thousand dollars in qualified second-year 46 wages earned by each such employee and for taxable years beginning on or 47 after January first, two thousand twenty-five shall be the first five 48 thousand dollars in qualified second-year wages earned by each qualified 49 employee . "Qualified second-year wages" means wages paid or incurred by 50 the taxpayer during the taxable year to qualified employees which are 51 attributable, with respect to any such employee, to services rendered 52 during the one-year period beginning one year after the employee begins 53 work for the taxpayer. 54 § 3. This act shall take effect immediately.

55 PART V S. 3009--C 84 A. 3009--C

1 Section 1. This Part enacts into law major components of legislation 2 relating to the reporting of federal partnership audit adjustments. Each 3 component is wholly contained within a Subpart identified as Subpart A 4 and Subpart B. The effective date for each particular provision 5 contained within such Subpart is set forth in the last section of such 6 Subpart. Any provision in any section contained within a Subpart, 7 including the effective date of the Subpart, which makes a 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 Subpart in which it is found. Section three of this Part 11 sets forth the general effective date of this Part.

12 SUBPART A

13 Section 1. Subdivision 3 of section 211 of the tax law, as amended by 14 section 19 of part A of chapter 59 of the laws of 2014, is amended to 15 read as follows: 16 3. If the amount of taxable income for any year of any taxpayer 17 (including any taxpayer which has elected to be taxed under subchapter s 18 of chapter one of the internal revenue code), as returned to the United 19 States treasury department is changed or corrected by the commissioner 20 of internal revenue or other officer of the United States or other 21 competent authority, or where a renegotiation of a contract or subcon- 22 tract with the United States results in a change in taxable income, such 23 taxpayer shall report such changed or corrected taxable income, or the 24 results of such renegotiation, within ninety days (or one hundred twenty 25 days, in the case of a taxpayer making a combined report under this 26 article for such year) after the final determination of such change or 27 correction or renegotiation, or as required by the commissioner, and 28 shall concede the accuracy of such determination or state wherein it is 29 erroneous. Provided however, if the taxpayer is a direct or indirect 30 partner of a partnership required to report adjustments in accordance 31 with section six hundred fifty-nine-a of this chapter, such taxpayer 32 shall also report such adjustments in accordance with section six 33 hundred fifty-nine-a of this chapter. The allowance of a tentative 34 carryback adjustment based upon a net operating loss carryback or net 35 capital loss carryback pursuant to section sixty-four hundred eleven of 36 the internal revenue code, as amended, shall be treated as a final 37 determination for purposes of this subdivision. Any taxpayer filing an 38 amended return with such department shall also file within ninety days 39 (or one hundred twenty days, in the case of a taxpayer making a combined 40 report under this article for such year) thereafter an amended report 41 with the commissioner. 42 § 2. Subsection (b) of section 653 of the tax law, as added by chapter 43 563 of the laws of 1960, is amended to read as follows: 44 (b) Partnerships. Any return, statement or other document required of 45 a partnership shall be signed by one or more partners. The fact that a 46 partner's name is signed to a return, statement, or other document, 47 shall be prima facie evidence for all purposes that such partner is 48 authorized to sign on behalf of the partnership. 49 (1) If a partnership is required to report federal adjustments arising 50 from a partnership level audit or an administrative adjustment request 51 pursuant to section six hundred fifty-nine-a of this part, the partner- 52 ship's federal partnership representative is the New York partnership 53 representative unless the partnership designates, in a manner determined S. 3009--C 85 A. 3009--C

1 by the commissioner, that another person shall act on behalf of the 2 partnership. 3 (2) The New York partnership representative shall have the sole 4 authority to act on behalf of the partnership and its direct and indi- 5 rect partners shall be bound by these actions. 6 § 3. Section 659 of the tax law, as amended by section 8 of part J of 7 chapter 59 of the laws of 2014, is amended to read as follows: 8 § 659. Report of federal changes, corrections or disallowances. If the 9 amount of a taxpayer's federal taxable income, total taxable amount or 10 ordinary income portion of a lump sum distribution or includible gain of 11 a trust reported on [ ] their federal income tax return for any taxa- 12 ble year, or the amount of a taxpayer's earned income credit or credit 13 for employment-related expenses set forth on such return, or the amount 14 of any federal foreign tax credit affecting the calculation of the cred- 15 it for Canadian provincial taxes under section six hundred twenty or six 16 hundred twenty-A of this article, or the amount of any claim of right 17 adjustment, is changed or corrected by the United States internal reven- 18 ue service or other competent authority or as the result of a renegoti- 19 ation of a contract or subcontract with the United States, or the amount 20 an employer is required to deduct and withhold from wages for federal 21 income tax withholding purposes is changed or corrected by such service 22 or authority or if a taxpayer's claim for credit or refund of federal 23 income tax is disallowed in whole or in part, the taxpayer or employer 24 shall report such change or correction or disallowance within ninety 25 days after the final determination of such change, correction, renegoti- 26 ation or disallowance, or as otherwise required by the commissioner, and 27 shall concede the accuracy of such determination or state wherein it is 28 erroneous. Provided, however, if the taxpayer is a direct or indirect 29 partner of a partnership required to report adjustments in accordance 30 with section six hundred fifty-nine-a of this part, such taxpayer shall 31 also report such adjustments in accordance with section six hundred 32 fifty-nine-a of this part. The allowance of a tentative carryback 33 adjustment based upon a net operating loss carryback pursuant to section 34 sixty-four hundred eleven of the internal revenue code shall be treated 35 as a final determination for purposes of this section. Any taxpayer 36 filing an amended federal income tax return and any employer filing an 37 amended federal return of income tax withheld shall also file within 38 ninety days thereafter an amended return under this article, and shall 39 give such information as the commissioner may require. The commissioner 40 may by regulation prescribe such exceptions to the requirements of this 41 section as [ ] they deem appropriate. For purposes of this 42 section, (i) the term "taxpayer" shall include a partnership having a 43 resident partner or having any income derived from New York sources, and 44 a corporation with respect to which the taxable year of such change, 45 correction, disallowance or amendment is a year with respect to which 46 the election provided for in subsection (a) of section six hundred sixty 47 of this article is in effect, and (ii) the term "federal income tax 48 return" shall include the returns of income required under sections six 49 thousand thirty-one and six thousand thirty-seven of the internal reven- 50 ue code. In the case of such a corporation, such report shall also 51 include any change or correction of the taxes described in paragraphs 52 two and three of subsection (f) of section thirteen hundred sixty-six of 53 the internal revenue code. Reports made under this section by a partner- 54 ship or corporation shall indicate the portion of the change in each 55 item of income, gain, loss or deduction (and, in the case of a corpo- 56 ration, of each change in, or disallowance of a claim for credit or S. 3009--C 86 A. 3009--C

1 refund of, a tax referred to in the preceding sentence) allocable to 2 each partner or shareholder and shall set forth such identifying infor- 3 mation with respect to such partner or shareholder as may be prescribed 4 by the commissioner. 5 § 4. The tax law is amended by adding a new section 659-a to read as 6 follows: 7 § 659-a. Reporting of federal partnership adjustments. (a) If any 8 item required to be shown on a federal partnership return, for any part- 9 nership that has a resident partner or any income derived from New York 10 sources, including any gross income, gain, loss, deduction, penalty, 11 credit, or tax for any year of such partnership, including any amount of 12 any partner's distributive share, is changed or corrected by the commis- 13 sioner of internal revenue or other officer of the United States or 14 other competent authority, and the partnership is issued an adjustment 15 under section sixty-two hundred twenty-five of the internal revenue code 16 or makes a federal election for alternative payment with the internal 17 revenue service as part of a partnership level audit, or files an admin- 18 istrative adjustment request, the partnership shall report, in the 19 manner prescribed by the commissioner, each change or correction in 20 sufficient detail to allow for the computation of the New York tax 21 change or correction for the reviewed year within ninety days after the 22 date of each final federal determination, or ninety days after the 23 filing of an administrative adjustment request. 24 (b) Definitions. As used in this section, the following terms shall 25 have the following meanings: 26 (1) "Administrative adjustment request" means an administrative 27 adjustment request filed by a partnership under section sixty-two 28 hundred twenty-seven of the internal revenue code. 29 (2) "Direct partner" means a partner that holds an interest directly 30 in an impacted partnership during the reviewed year. 31 (3) "Federal election for alternative payment" means the election 32 described in section sixty-two hundred twenty-six of the internal reven- 33 ue code, relating to alternative payment of imputed underpayment by 34 partnership. 35 (4) "Final federal adjustment" means a change to an item of gross 36 income, gain, loss, deduction, penalty, credit, or a partner's distribu- 37 tive share, of an impacted partnership determined under section sixty- 38 two hundred twenty-five of the internal revenue code that is considered 39 fixed and final under the internal revenue code. 40 (5) "Final federal determination date" means the date on which each 41 adjustment or resolution resulting from an internal revenue service 42 examination is assessed pursuant to section sixty-two hundred three of 43 the internal revenue code. 44 (6) "Impacted partnership" means a partnership that (i) was issued a 45 final federal adjustment; or (ii) made a federal election for alterna- 46 tive payment with the internal revenue service as part of a federal 47 partnership level audit; or (iii) filed an administrative adjustment 48 request with the internal revenue service. 49 (7) "Indirect partner" means a partner, member, or shareholder in a 50 partnership or other pass-through entity that itself held an interest 51 indirectly, or through another indirect partner, in an impacted partner- 52 ship during the reviewed year. 53 (8) "New York election for alternative payment" means the election 54 described in paragraph three of subsection (d) of this section, relating 55 to payment by the impacted partnership in lieu of taxes owed by its 56 direct and indirect partners. S. 3009--C 87 A. 3009--C

1 (9) "Reviewed year" has the meaning provided in paragraph one of 2 subsection (d) of section sixty-two hundred twenty-five of the internal 3 revenue code. 4 (10) "Tiered partner" means any partner in an impacted partnership 5 where such partner is a partnership, S corporation, or other pass- 6 through entity for New York tax purposes. 7 (c) Reporting adjustments to federal taxable income. Where partner- 8 ships and partners were required to report final federal adjustments or 9 administrative adjustment requests for federal purposes by taking such 10 adjustments into account on a timely filed amended federal income tax 11 return for the reviewed year, such partnerships and partners shall 12 report and pay any New York tax owed under article nine-A, twenty-two, 13 thirty-three, or any law authorized by article thirty of this chapter in 14 the same manner for the reviewed year. Such partnerships and partners 15 shall report final federal adjustments arising from an audit or other 16 action by the internal revenue service or reported by the taxpayer on a 17 timely filed amended federal income tax return, including a return or 18 other similar report filed pursuant to section sixty-two hundred twen- 19 ty-five of the internal revenue code, or federal claim for refund by 20 filing a federal adjustments report and, if applicable, such partner- 21 ships and partners shall pay the additional tax due no later than one 22 hundred eighty days after the final determination date. 23 (d) Reporting federal adjustments pursuant to a partnership level 24 audit and administrative adjustment request. Except for adjustments 25 required to be reported under subsection (c) of this section, partner- 26 ships and partners shall report final federal adjustments arising from a 27 partnership level audit or an administrative adjustment request and make 28 payments as required under this subsection in the year of adjustment. 29 (1) Unless a de minimis exception applies, impacted partnerships 30 must report any final federal adjustments and administrative adjustment 31 requests regardless of tax impact. Such report must include the 32 impacted partnership's direct and indirect partner identifying informa- 33 tion and any other information the commissioner may require. 34 (2) Except for those subject to a properly made election for alterna- 35 tive payment under paragraph three of this subsection, any changes or 36 corrections made by the internal revenue service pursuant to such a 37 final federal adjustment or as a result of an administrative adjustment 38 request must be reported by the impacted partnership as follows: 39 (A) No later than ninety days after the final determination date, the 40 partnership shall: 41 (i) file a completed federal adjustments report, including any infor- 42 mation as required by the commissioner; 43 (ii) notify each of its direct partners of their distributive share of 44 the final federal adjustment, including any information required by the 45 commissioner; 46 (iii) file an amended return as required under paragraph one of 47 subsection (c) of section six hundred fifty-eight and section six 48 hundred fifty-nine of this article for the reviewed year; 49 (iv) file an amended group return if the partnership originally filed 50 a group return, and remit the additional amount that would have been due 51 under subsection (c) of section six hundred fifty-eight of this article 52 had the final federal adjustments been properly reported originally as 53 required; and 54 (v) remit any additional amounts that would have been due under para- 55 graph four of subsection (c) of section six hundred fifty-eight of this S. 3009--C 88 A. 3009--C

1 article had the final federal adjustments been properly originally 2 reported as required. 3 (B) No later than one hundred eighty days after the final determi- 4 nation date, each direct partner of an impacted partnership that is 5 taxed under article nine-A, twenty-two, thirty-three, or any law author- 6 ized by article thirty of this chapter, other than a direct partner that 7 is included on a group return under clause (iv) of subparagraph (A) of 8 this paragraph, shall: 9 (i) file a federal adjustments report reporting their distributive 10 share of the adjustments reported to them by the impacted partnership 11 under clause (ii) of subparagraph (A) of this paragraph; and 12 (ii) remit any additional amount of tax due, plus any penalty and 13 interest computed under this article based on the due date of the 14 originally filed return for the reviewed year, less any credit for 15 amounts paid or withheld and remitted on behalf of the direct partner. 16 (3) New York election for alternative payment by the partnership. An 17 impacted partnership making an election under this subsection shall: 18 (A) no later than ninety days after the final determination date, file 19 a completed federal adjustments report, including any information as 20 required by the commissioner, and provide notice, in the manner required 21 by the commissioner, that it is making the election under this 22 subsection. 23 (B) no later than one hundred eighty days after the final determi- 24 nation date, pay an amount, in lieu of taxes owed by its direct and 25 indirect partners. Such amount shall be determined based on the sum of 26 the following: 27 (i) for direct partners subject to tax pursuant to article nine-A or 28 thirty-three of this chapter in the reviewed year, the partner's 29 distributive share of gross income or gain and deduction apportioned to 30 New York using the apportionment rules described in article nine-A of 31 this chapter multiplied by the highest tax rate under such article 32 nine-A in effect for the reviewed year; and 33 (ii) for a direct partner subject to tax under this article that is 34 treated as a nonresident pursuant to paragraph two of subsection (b) of 35 section six hundred five of this article in the reviewed year, the part- 36 ner's distributive share of gross income or gain and deduction allocated 37 to New York using the allocation rules described in this article multi- 38 plied by the highest tax rate under this article in effect for the 39 reviewed year; and 40 (iii) for a direct partner subject to tax under this article that is 41 treated as a resident pursuant to paragraph one of subsection (b) of 42 section six hundred five of this article in the reviewed year, the part- 43 ner's distributive share of gross income or gain and deduction multi- 44 plied by the highest tax rate under this article in effect for the 45 reviewed year; and 46 (iv) for a direct partner subject to tax under article thirty of this 47 chapter that is treated as a resident pursuant to subsection (a) of 48 section thirteen hundred five of this chapter in the reviewed year, the 49 amount described in clause (iii) of this subparagraph and the partner's 50 distributive share of gross income or gain and deduction multiplied by 51 the highest tax rate under section thirteen hundred four of this chapter 52 in effect for the reviewed year; and 53 (v) for tiered partners, include the sum of: 54 (I) the amount of gross income, gain or deduction from the adjustment 55 that would ultimately flow to a taxpayer subject to tax under article 56 nine-A or thirty-three of this chapter in the reviewed year apportioned S. 3009--C 89 A. 3009--C

1 to New York using the apportionment rules described in article nine-A of 2 this chapter multiplied by the highest tax rate under such article 3 nine-A in effect for the reviewed year; and 4 (II) the amount of gross income, gain or deduction from the adjustment 5 that would ultimately flow to a taxpayer subject to tax under this arti- 6 cle and treated as a nonresident pursuant to paragraph two of subsection 7 (b) of section six hundred five of this article in the reviewed year 8 allocated to New York using the allocation rules described in this arti- 9 cle multiplied by the highest tax rate under this article in effect for 10 the reviewed year; and 11 (III) the amount of gross income, gain or deduction from the adjust- 12 ment that would ultimately flow to a taxpayer subject to tax under this 13 article and treated as a resident pursuant to paragraph one of 14 subsection (b) of section six hundred five of this article in the 15 reviewed year multiplied by the highest tax rate under this article in 16 effect for the reviewed year; and 17 (IV) any amount of gross income, gain or deduction from the adjustment 18 that cannot be established to be properly allocable to a taxpayer 19 described in items (I) or (II) of this clause, multiplied by the highest 20 tax rate under this article in effect for the reviewed year; and 21 (vi) any applicable penalty and interest as required by this article. 22 (4) Tiered partners. The direct and indirect partners of an impacted 23 partnership that are tiered partners, and all of the partners of those 24 tiered partners that are subject to tax under article nine-a, twenty- 25 two, thirty-three, or any law authorized by article thirty of this chap- 26 ter, are subject to the reporting and payment requirements of paragraph 27 two of this subsection and the tiered partners are entitled to make the 28 elections provided in paragraphs three and five of this subsection. The 29 tiered partners or their partners shall make all required reports and 30 payments no later than ninety days after the time for filing and 31 furnishing statements to tiered partners and their partners pursuant to 32 section sixty-two hundred twenty-six of the internal revenue code and 33 the regulations thereunder. 34 (5) Modified reporting and payment method. In the manner required by 35 the commissioner, an impacted partnership or tiered partner may enter 36 into an agreement with the commissioner to utilize an alternative 37 reporting and payment method, including applicable time requirements or 38 any other provision of this section, if the impacted partnership or 39 tiered partner demonstrates that the requested method will reasonably 40 provide for the reporting and payment of taxes, penalties, and interest 41 due under the provisions of this section, or if the impacted partnership 42 or tiered partner can show that their direct partners have agreed to 43 allow a refund of the tax to the entity. Application for approval of an 44 alternative reporting and payment method must be made by the impacted 45 partnership or tiered partner within the time for election as provided 46 in paragraph three or four of this subsection, as appropriate. 47 (6) Effect of election by impacted partnership or tiered partner and 48 payment of amount due. (A) The election made pursuant to paragraph 49 three or five of this subsection is irrevocable, unless the commission- 50 er, in their discretion, determines otherwise. 51 (B) If properly reported and paid by the impacted partnership or 52 tiered partner, the amount determined in subparagraph (B) of paragraph 53 three of this subsection, or similarly under an optional election pursu- 54 ant to paragraph five of this subsection, will be treated as a payment 55 in lieu of taxes owed by its direct and indirect partners, to the extent 56 applicable, on the same final federal adjustment. The direct partners or S. 3009--C 90 A. 3009--C

1 indirect partners may not take any deduction or credit for this amount 2 or claim a refund of such amount. Provided, however, that nothing in 3 this paragraph shall preclude a resident direct partner from claiming a 4 credit against taxes paid to the commissioner pursuant to article twen- 5 ty-two of this chapter for any amounts paid by the impacted partnership 6 or tiered partner on such resident partner's behalf to another state or 7 local tax jurisdiction in accordance with the provisions of section six 8 hundred twenty of this article. 9 (7) Failure of impacted partnership or tiered partner to report or 10 remit. Nothing in this section shall prevent the commissioner 11 from assessing direct or indirect partners for any taxes due, using the 12 best information available, in the event that an impacted partnership, 13 or a direct or indirect partner of an impacted partnership, fails to 14 timely report or remit any report or additional taxes due required by 15 this section for any reason. 16 (e) De minimis exception. The commissioner shall have the discretion 17 to promulgate regulations to establish a de minimis amount upon which a 18 taxpayer shall not be required to comply with subsections (c) and/or (d) 19 of this section. 20 (f) Estimated tax payments during the course of a federal audit. An 21 impacted partnership may make estimated payments of the tax expected to 22 result from a pending internal revenue service audit, prior to the due 23 date of the federal adjustments report and prior to filing the report 24 with the commissioner. If an impacted partnership makes an estimated 25 payment under this subsection, other than an estimated payment made 26 under paragraph four of subsection (c) of section six hundred fifty- 27 eight of this article, such estimated payment must be accompanied by an 28 irrevocable election under paragraph three of subsection (d) of this 29 section. The estimated tax payments shall be credited against any tax 30 liability ultimately found to be due and will limit the accrual of 31 further statutory interest on such amount. If the estimated tax payments 32 exceed the final tax liability and statutory interest ultimately deter- 33 mined to be due, the taxpayer is entitled to a refund or credit of the 34 excess, provided the taxpayer files a federal adjustments report or 35 claim for refund or credit of tax pursuant to section six hundred eight- 36 y-six of this article, no later than one year following the final deter- 37 mination date. 38 (g) Claims for refund or credits of tax arising from a final federal 39 adjustment. Except for final federal adjustments required to be reported 40 for the year of the adjustment, a taxpayer may file a claim for refund 41 or credit of tax arising from federal adjustments on or before the later 42 of: 43 (1) the expiration of the last day for filing a claim for refund or 44 credit pursuant to section six hundred eighty-seven of this article, 45 including any extensions; or 46 (2) one year from the date a federal adjustment report pursuant to 47 subsection (c) or (d) of this section, as applicable, was due, including 48 any extensions pursuant to subsection (h) of this section. 49 (h) Scope of adjustments and extensions of time. (1) Unless otherwise 50 agreed in writing by the taxpayer and the commissioner, any adjustments 51 by the commissioner or the taxpayer made after the period of limitations 52 for assessment or refund has terminated under article nine-A, twenty- 53 two, thirty-three, or any law authorized by article thirty of this chap- 54 ter, is limited to changes to the taxpayer's tax liability arising from 55 such a final federal adjustment. 56 (2) The time periods provided for in this section may be extended: S. 3009--C 91 A. 3009--C

1 (A) automatically, upon written notice to the commissioner, by sixty 2 days for an impacted partnership or tiered partner which has ten thou- 3 sand or more direct partners; or 4 (B) by written agreement between the taxpayer and the commissioner. 5 (3) Any extension granted under this subsection for filing a federal 6 adjustments report extends the last day prescribed by law for assessing 7 any additional tax arising from the adjustments to federal taxable 8 income and the period for filing a claim for refund or credit of taxes 9 under article nine-A, twenty-two, thirty-three, or any law authorized by 10 article thirty of this chapter. 11 § 5. Subsection (e) of section 681 of the tax law, as amended by chap- 12 ter 381 of the laws of 1975, paragraph 1 as amended by chapter 28 of the 13 laws of 1987, is amended to read as follows: 14 (e) Exceptions where federal changes, corrections or disallowances are 15 not reported.--- 16 (1) If the taxpayer or employer fails to comply with section six 17 hundred fifty-nine or section six hundred fifty-nine-a , instead of the 18 mode and time of assessment provided for in subsection (b) of this 19 section, the [ ] commissioner may assess a deficiency based 20 upon such federal change, correction or disallowance by mailing to the 21 taxpayer a notice of additional tax due specifying the amount of the 22 deficiency, and such deficiency, together with the interest, additions 23 to tax and penalties stated in such notice, shall be deemed assessed on 24 the date such notice is mailed unless within thirty days after the mail- 25 ing of such notice a report of the federal change, correction or disal- 26 lowance or an amended return, where such return was required by section 27 six hundred fifty-nine or section six hundred fifty-nine-a , is filed 28 accompanied by a statement showing wherein such federal determination 29 and such notice of additional tax due are erroneous. 30 (2) Such notice shall not be considered as a notice of deficiency for 31 the purposes of this section, subsection (f) of section six hundred 32 eighty-seven (limiting credits or refunds after petition to the [ 33 ] division of tax appeals ), or subsection (b) of section six 34 hundred eighty-nine (authorizing the filing of a petition with the [ 35 ] division of tax appeals based on a notice of deficiency), 36 nor shall such assessment or the collection thereof be prohibited by the 37 provisions of subsection (c). 38 (3) If [ ] spouses are jointly liable for tax, a 39 notice of additional tax due may be a single joint notice, except that 40 if the [ ] commissioner has been notified by either spouse 41 that separate residences have been established, then, in lieu of the 42 joint notice, a duplicate original of the joint notice shall be mailed 43 to each spouse at [ ] their last known address in or out of 44 this state. If the taxpayer is deceased or under a legal disability, a 45 notice of additional tax due may be mailed to [ ] their last known 46 address in or out of this state, unless the [ ] commission- 47 er has received notice of the existence of a fiduciary relationship with 48 respect to the taxpayer. 49 § 6. Subsection (a) of section 682 of the tax law, as amended by 50 section 3 of part F of chapter 60 of the laws of 2004, is amended to 51 read as follows: 52 (a) Assessment date.--The amount of tax which a return shows to be 53 due, or the amount of tax which a return would have shown to be due but 54 for a mathematical or clerical error, shall be deemed to be assessed on 55 the date of filing of the return (including any amended return showing 56 an increase of tax). In the case of a return properly filed without S. 3009--C 92 A. 3009--C

1 computation of tax, the tax computed by the commissioner shall be deemed 2 to be assessed on the date on which payment is due. If a notice of defi- 3 ciency has been mailed, the amount of the deficiency shall be deemed to 4 be assessed on the date specified in subsection (b) of section six 5 hundred eighty-one if no petition to the division of tax appeals is 6 filed, or if a petition is filed, then upon the date when a determi- 7 nation or decision rendered in the division of tax appeals establishing 8 the amount of the deficiency becomes final. If an amended return or 9 report filed pursuant to section six hundred fifty-nine or six hundred 10 fifty-nine-a concedes the accuracy of a federal change or correction, 11 any deficiency in tax under this article resulting therefrom shall be 12 deemed to be assessed on the date of filing such report or amended 13 return, and such assessment shall be timely notwithstanding section six 14 hundred eighty-three. If a notice of additional tax due, as prescribed 15 in subsection (e) of section six hundred eighty-one, has been mailed, 16 the amount of the deficiency shall be deemed to be assessed on the date 17 specified in such subsection unless within thirty days after the mailing 18 of such notice a report of the federal change or correction or an 19 amended return, where such return was required by section six hundred 20 fifty-nine or six hundred fifty-nine-a , is filed accompanied by a state- 21 ment showing wherein such federal determination and such notice of addi- 22 tional tax due are erroneous. Any amount paid as a tax or in respect of 23 a tax, other than amounts withheld at the source or paid as estimated 24 income tax, shall be deemed to be assessed upon the date of receipt of 25 payment, notwithstanding any other provisions. 26 § 7. Paragraphs 1, 2 and 3 of subsection (c) of section 683 of the tax 27 law, paragraph 1 as amended by chapter 526 of the laws of 1973, subpara- 28 graph (C) of paragraph 1 and paragraph 3 as amended by chapter 28 of 29 the laws of 1987 and paragraph 2 as added by chapter 1011 of the laws of 30 1962, are amended to read as follows: 31 (1) Assessment at any time.--The tax may be assessed at any time if-- 32 (A) no return is filed, 33 (B) a false or fraudulent return is filed with intent to evade tax, or 34 (C) the taxpayer or employer fails to comply with section six hundred 35 fifty-nine or six hundred fifty-nine-a . 36 (2) Extension by agreement.--Where, before the expiration of the time 37 prescribed in this section for the assessment of tax, both the [ 38 ] commissioner and the taxpayer have consented in writing to 39 its assessment after such time, the tax may be assessed at any time 40 prior to the expiration of the period agreed upon. The period so agreed 41 upon may be extended by subsequent agreements in writing made before the 42 expiration of the period previously agreed upon. 43 (3) Report of federal changes, corrections or disallowances.--If the 44 taxpayer or employer complies with section six hundred fifty-nine or six 45 hundred fifty-nine-a , the assessment (if not deemed to have been made 46 upon the filing of the report or amended return) may be made at any time 47 within two years after such report or amended return was filed. The 48 amount of such assessment of tax shall not exceed the amount of the 49 increase in New York tax attributable to such federal change or 50 correction. The provisions of this paragraph shall not affect the time 51 within which or the amount for which an assessment may otherwise be 52 made. 53 § 8. Paragraph 2 of subsection (h) of section 685 of the tax law, as 54 amended by section 5 of part I of chapter 59 of the laws of 2014, is 55 amended to read as follows: S. 3009--C 93 A. 3009--C

1 (2) If any partnership, S corporation, or trust required to file a 2 return or report under subsection (c) or subsection (f) of section six 3 hundred fifty-eight or under section six hundred fifty-nine or six 4 hundred fifty-nine-a of this article for any taxable year fails to file 5 such return or report at the time prescribed therefor (determined with 6 regard to any extension of time for filing), or files a return or report 7 which fails to show the information required under such subsection (c) 8 [ ] of section six hundred fifty-nine of this article, or files a 9 return or report which fails to show the information required under 10 subsection (d) of section six hundred fifty-nine-a of this article, 11 unless it is shown that such failure is due to reasonable cause and not 12 due to willful neglect, there shall, upon notice and demand by the 13 commissioner and in the same manner as tax, be paid by the partnership 14 or S corporation a penalty for each month (or fraction thereof) during 15 which such failure continues (but not to exceed five months). The amount 16 of such penalty for any month is the product of fifty dollars, multi- 17 plied by the number of partners in the partnership or shareholders in 18 the S corporation during any part of the taxable year who were subject 19 to tax under this article during any part of such taxable year, except 20 that, in the case of a trust, the penalty shall be equal to one hundred 21 fifty dollars a month up to a maximum of fifteen hundred dollars per 22 taxable year. 23 § 9. Subsection (c) of section 687 of the tax law, as amended by chap- 24 ter 61 of the laws of 1989, is amended to read as follows: 25 (c) Notice of federal change or correction.--A claim for credit or 26 refund of any overpayment of tax attributable to a federal change or 27 correction required to be reported pursuant to section six hundred 28 fifty-nine or by a partner of a partnership required to report a federal 29 change or correction pursuant to section six hundred fifty-nine-a shall 30 be filed by the taxpayer within two years from the time the notice of 31 such change or correction or such amended return was required to be 32 filed with the commissioner of taxation and finance. If the report or 33 amended return required by section six hundred fifty-nine or six hundred 34 fifty-nine-a is not filed within the ninety day period therein speci- 35 fied, no interest shall be payable on any claim for credit or refund of 36 the overpayment attributable to the federal change or correction. The 37 amount of such credit or refund shall not exceed the amount of the 38 reduction in tax attributable to such federal change, correction or 39 items amended on the taxpayer's amended federal income tax return. This 40 subsection shall not affect the time within which or the amount for 41 which a claim for credit or refund may be filed apart from this 42 subsection. 43 § 10. Subsection (g) of section 688 of the tax law, as amended by 44 chapter 61 of the laws of 1989, is amended to read as follows: 45 (g) Cross-reference.--For provision with respect to interest after 46 failure to file notice of federal change under section six hundred 47 fifty-nine or six hundred fifty-nine-a , see subsection (c) of section 48 six hundred eighty-seven. 49 § 11. Subsection (a) of section 1312 of the tax law, as amended by 50 section 9 of part Q of chapter 407 of the laws of 1999, is amended to 51 read as follows: 52 (a) Except as otherwise provided in this article, any tax imposed 53 pursuant to the authority of this article shall be administered and 54 collected by the commissioner in the same manner as the tax imposed by 55 article twenty-two of this chapter is administered and collected by the 56 commissioner. All of the provisions of article twenty-two of this chap- S. 3009--C 94 A. 3009--C

1 ter relating to or applicable to payment of estimated tax, returns, 2 payment of tax, claim of right adjustment, withholding of tax from 3 wages, employer's statements and returns, employer's liability for taxes 4 required to be withheld and all other provisions of article twenty-two 5 of this chapter relating to or applicable to the administration, 6 collection, liability for and review of the tax imposed by article twen- 7 ty-two of this chapter, including sections six hundred fifty-two through 8 six hundred fifty-four, sections six hundred fifty-seven through [ 9 ] six hundred fifty-nine-a , sections six hundred 10 sixty-one and six hundred sixty-two, sections six hundred seventy-one 11 and six hundred seventy-two, sections six hundred seventy-four through 12 six hundred seventy-eight and sections six hundred eighty-one through 13 six hundred ninety-seven of this chapter, inclusive, shall apply to a 14 tax imposed pursuant to the authority of this article with the same 15 force and effect as if those provisions had been incorporated in full 16 into this article, and had expressly referred to the tax imposed pursu- 17 ant to the authority of this article, except where inconsistent with a 18 provision of this article. Whenever there is joint collection of state 19 and city personal income taxes, it shall be deemed that such collections 20 shall represent proportionately the applicable state and city personal 21 income taxes in determining the amount to be remitted to the city. 22 § 12. Paragraph 1 of subdivision (e) of section 1515 of the tax law, 23 as amended by chapter 770 of the laws of 1992, is amended to read as 24 follows: 25 (1) If the amount of the life insurance company taxable income (which 26 shall include, in the case of a stock life insurance company which has 27 an existing policyholders surplus account, the amount of direct and 28 indirect distributions during the taxable year to shareholders from such 29 account), taxable income of a partnership or taxable income, as the case 30 may be, or alternative minimum taxable income for any year of any 31 taxpayer as returned to the United States treasury department is changed 32 or corrected by the commissioner of internal revenue or other officer of 33 the United States or other competent authority, such taxpayer shall 34 report such change or corrected taxable income or alternative minimum 35 taxable income within ninety days (or one hundred twenty days, in the 36 case of a taxpayer making a combined return under this article for such 37 year) after the final determination of such change or correction or as 38 required by the commissioner, and shall concede the accuracy of such 39 determination or state wherein it is erroneous. Provided, however, if 40 the taxpayer is a direct or indirect partner of a partnership required 41 to report adjustments in accordance with section six hundred 42 fifty-nine-a of this chapter, such taxpayer shall also report such 43 adjustments in accordance with section six hundred fifty-nine-a of this 44 chapter. Any taxpayer filing an amended return with such department 45 shall also file within ninety days (or one hundred twenty days, in the 46 case of a taxpayer making a combined return under this article for such 47 year) thereafter an amended return with the commissioner which shall 48 contain such information as the commissioner shall require. The allow- 49 ance of a tentative carryback adjustment based upon a net operating loss 50 carryback or net capital loss carryback pursuant to section sixty-four 51 hundred eleven of the internal revenue code or upon an operations loss 52 carryback pursuant to section eight hundred ten of the internal revenue 53 code, shall be treated as a final determination for purposes of this 54 subdivision. 55 § 13. This act shall take effect immediately; provided, however, that 56 adjustments to a taxpayer's federal taxable income or tax liability with S. 3009--C 95 A. 3009--C

1 a final determination date or administrative adjustment request occur- 2 ring prior to the effective date of this act must be reported within one 3 year of such effective date; provided further that no interest shall 4 accrue on adjustments occurring prior to the effective date of this act.

5 SUBPART B

6 Section 1. Section 11-501 of the administrative code of the city of 7 New York is amended by adding four new subdivisions (n), (o), (p) and 8 (q) to read as follows: 9 (n) "Administrative adjustment request" when used in this chapter 10 shall mean a request for an administrative adjustment filed by a part- 11 nership under section sixty-two hundred twenty-seven of the internal 12 revenue code. 13 (o) "Alternative adjustment action" when used in this chapter shall 14 mean (i) a final federal adjustment; (ii) a federal election for alter- 15 native payment; or (iii) the filing of an administrative adjustment 16 request. 17 (p) "Federal election for alternative payment" when used in this chap- 18 ter shall mean the election described in section sixty-two hundred twen- 19 ty-six of the internal revenue code, relating to alternative payment of 20 imputed underpayment by a partnership. 21 (q) "Final federal adjustment" when used in this chapter shall mean a 22 change to an item of gross income, gain, loss, deduction, penalty, cred- 23 it or a partner's distributive share, of a partnership that is deter- 24 mined under section sixty-two hundred twenty-five of the internal reven- 25 ue code that is considered fixed and final under the internal revenue 26 code. 27 § 2. Section 11-519 of the administrative code of the city of New York 28 is amended to read as follows: 29 § 11-519 Report of change in federal or New York state taxable income. 30 (a) If the amount of a taxpayer's federal or New York state taxable 31 income reported on [ ] such taxpayer's federal or New York 32 state income tax for any taxable year is changed or corrected by the 33 United States internal revenue service or the New York state tax commis- 34 sion or other competent authority, or as the result of a renegotiation 35 of a contract or subcontract with the United States or the state of New 36 York, or if a taxpayer, pursuant to subsection (d) of section sixty-two 37 hundred thirteen of the internal revenue code, executes a notice of 38 waiver of the restrictions provided in subsection (a) of said section, 39 or if a taxpayer, pursuant to subsection (f) of section six hundred 40 eighty-one of the tax law, executes a notice or waiver of the 41 restrictions provided in subsection (c) of such section of the tax law, 42 the taxpayer shall report such change or correction in federal or New 43 York state taxable income or such execution of such notice of waiver and 44 the changes or corrections of the taxpayer's federal or New York state 45 taxable income on which it is based, within ninety days after the final 46 determination of such change, correction, or renegotiation, or such 47 execution of such notice of waiver, or as otherwise required by the 48 commissioner of finance, and shall concede the accuracy of such determi- 49 nation or state wherein it is erroneous. Any taxpayer filing an amended 50 federal or New York state income tax return shall also file within nine- 51 ty days thereafter an amended return under this chapter, and shall give 52 such information as the commissioner of finance may require. 53 (b) A taxpayer that is a partner in a partnership that is required to 54 report a change or correction in its federal or New York state taxable S. 3009--C 96 A. 3009--C

1 income pursuant to subdivision (a) of this section shall report its 2 distributive share of such change or correction as if such change or 3 correction was made directly to such taxpayer's federal or New York 4 state taxable income. 5 (c) Any taxpayer subject to an alternative adjustment action, or that 6 is a partner in a partnership subject to an alternative adjustment 7 action, shall report such alternative adjustment action within ninety 8 days after the alternative adjustment action occurs, as applicable, 9 regardless of the tax impact of such action. The commissioner of finance 10 may require such report to be filed electronically. Such report shall 11 include the identity of any partners of such taxpayer, as applicable, 12 and any other information as the commissioner of finance deems necessary 13 in order to determine the impact of such alternative adjustment action. 14 (d) The commissioner of finance may [ ] prescribe such 15 exceptions to the requirements of this section as [ ] such commission- 16 er deems appropriate to facilitate the administration of this section . 17 § 3. Subparagraph (C) of paragraph 1 of subdivision (c) of section 18 11-523 of the administrative code of the city of New York, as amended by 19 chapter 839 of the laws of 1986, is amended to read as follows: 20 (C) the taxpayer fails to comply with section 11-519 of this chapter 21 in not reporting a change or correction increasing or decreasing the 22 taxpayer's federal or New York state taxable income as reported on the 23 taxpayer's federal or New York state income tax return, or the execution 24 of a notice of waiver and the changes or corrections on which it is 25 based , or in not reporting a change or correction which is treated in 26 the same manner as if it were a deficiency for federal or New York state 27 income tax purposes, or in not reporting an alternative adjustment 28 action, or in not filing an amended return, or 29 § 4. Subdivision (c) of section 11-527 of the administrative code of 30 the city of New York, as amended by chapter 241 of the laws of 1989, is 31 amended to read as follows: 32 (c) Notice of change or correction of federal or New York state taxa- 33 ble income. If a taxpayer is required by section 11-519 of this chapter 34 to report a change or correction in federal or New York state taxable 35 income reported on the taxpayer's federal or New York state income tax 36 return, or to report a change or correction which is treated in the same 37 manner as if it were an overpayment for federal or New York state income 38 tax purposes, or to report an alternative adjustment action, or to file 39 an amended return with the commissioner of finance, claim for credit or 40 refund of any resulting overpayment of tax shall be filed by the taxpay- 41 er within two years from the time the notice of such change or 42 correction , or such report of an alternative adjustment action, or such 43 amended return was required to be filed with the commissioner of 44 finance. If the report or amended return required by section 11-519 of 45 this chapter is not filed within the ninety day period therein speci- 46 fied, no interest shall be payable on any claim for credit or refund of 47 the overpayment attributable to the federal or New York state change or 48 correction. The amount of such credit or refund shall not exceed the 49 amount of the reduction in tax attributable to such federal or New York 50 state change, correction or items amended on the taxpayer's amended 51 federal or New York state income tax return. This subdivision shall not 52 affect the time within which or the amount for which a claim for credit 53 or refund may be filed apart from this subdivision. 54 § 5. Paragraph 4 of subdivision (d) of section 11-529 of the adminis- 55 trative code of the city of New York, as amended by chapter 808 of the 56 laws of 1992, is amended to read as follows: S. 3009--C 97 A. 3009--C

1 (4) Restriction on further notices of deficiency. If the taxpayer 2 files a petition with the tax appeals tribunal under this section, no 3 notice of deficiency under section 11-521 of this chapter may thereafter 4 be issued by the commissioner of finance for the same taxable year, 5 except in case of fraud or with respect to a change or correction in 6 federal or New York state taxable income or an alternative adjustment 7 action required to be reported under section 11-519 of this chapter or 8 with respect to a state change or correction of sales and compensating 9 use tax liability to be reported under section 11-519.1 of this chapter. 10 § 6. Paragraph 3 of subdivision (e) of section 11-529 of the adminis- 11 trative code of the city of New York, as amended by chapter 808 of the 12 laws of 1992, is amended to read as follows: 13 (3) whether the petitioner is liable for any increase in a deficiency 14 where such increase is asserted initially after a notice of deficiency 15 was mailed and a petition under this section filed, unless such increase 16 in deficiency is the result of a change or correction of federal or New 17 York state taxable income or an alternative adjustment action required 18 to be reported under section 11-519 of this chapter, and of which change 19 [ ] , correction , or alternative adjustment action the commissioner of 20 finance had no notice at the time [ ] such commissioner mailed 21 the notice of deficiency or unless such increase in deficiency is the 22 result of a change or correction of sales and compensating use tax 23 liability required to be reported under section 11-519.1 of this chap- 24 ter, and of which change or correction the commissioner of finance had 25 no notice at the time [ ] such commissioner mailed the notice of 26 deficiency; and 27 § 7. Section 11-601 of the administrative code of the city of New York 28 is amended by adding four new subdivisions 13-a, 13-b, 13-c and 13-d to 29 read as follows: 30 13-a. "Administrative adjustment request" means a request for an 31 administrative adjustment filed by a partnership under section sixty-two 32 hundred twenty-seven of the internal revenue code. 33 13-b. "Alternative adjustment action" means (i) a final federal 34 adjustment; (ii) a federal election for alternative payment; or (iii) 35 the filing of an administrative adjustment request. 36 13-c. "Federal election for alternative payment" means the election 37 described in section sixty-two hundred twenty-six of the internal reven- 38 ue code, relating to alternative payment of imputed underpayment by a 39 partnership. 40 13-d. "Final federal adjustment" means a change to an item of gross 41 income, gain, loss, deduction, penalty, credit or a partner's distribu- 42 tive share, of a partnership that is determined under section sixty-two 43 hundred twenty-five of the internal revenue code that is considered 44 fixed and final under the internal revenue code. 45 § 8. Section 11-605 of the administrative code of the city of New York 46 is amended by adding three new subdivisions 3-a, 3-b and 3-c to read as 47 follows: 48 3-a. A taxpayer that is a partner in a partnership that is required to 49 report a change or correction in its federal or New York state taxable 50 income shall report its distributive share of such change or correction 51 as if such change or correction was made directly to such taxpayer's 52 federal or New York state taxable income, alternative minimum taxable 53 income or other basis of tax and was required to be reported pursuant to 54 this section. 55 3-b. Any taxpayer that is a partner in a partnership subject to an 56 alternative adjustment action shall report such alternative adjustment S. 3009--C 98 A. 3009--C

1 action, within ninety days after the alternative adjustment action 2 occurs, as applicable, regardless of the tax impact of such action. Such 3 report shall include any other information as the commissioner of 4 finance deems necessary in order to determine the impact of such alter- 5 native adjustment action. 6 3-c. The commissioner of finance may require the reports required 7 pursuant to subdivisions three-a and three-b of this section to be filed 8 electronically and shall establish exceptions from a taxpayer's require- 9 ment to file such reports as the commissioner of finance determines are 10 appropriate to facilitate the administration of such subdivisions. 11 § 9. Section 11-646 of the administrative code of the city of New York 12 is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to 13 read as follows: 14 (e-1) A taxpayer that is a partner in a partnership that is required 15 to report a change or correction in its federal or New York state taxa- 16 ble income shall report its distributive share of such change or 17 correction as if such change or correction was made directly to such 18 taxpayer's federal or New York state taxable income, alternative minimum 19 taxable income or other basis of tax and was required to be reported 20 pursuant to this section. 21 (e-2) Any taxpayer that is a partner in a partnership subject to an 22 alternative adjustment action shall report such alternative adjustment 23 action, within ninety days after the alternative adjustment action 24 occurs, as applicable, regardless of the tax impact of such action. Such 25 report shall include any other information as the commissioner of 26 finance deems necessary in order to determine the impact of such alter- 27 native adjustment action. 28 (e-3) The commissioner of finance may require the reports required by 29 subdivisions (e-1) and (e-2) of this section to be filed electronically 30 and shall establish exceptions from a taxpayer's requirement to file 31 such reports as the commissioner of finance determines are appropriate 32 to facilitate the administration of such subdivisions. 33 § 10. Section 11-655 of the administrative code of the city of New 34 York is amended by adding three new subdivisions 3-a, 3-b and 3-c to 35 read as follows: 36 3-a. A taxpayer that is a partner in a partnership that is required to 37 report a change or correction in its federal or New York state taxable 38 income shall report its distributive share of such change or correction 39 as if such change or correction was made directly to such taxpayer's 40 federal or New York state taxable income or other basis of tax and was 41 required to be reported pursuant to this section. 42 3-b. Any taxpayer that is a partner in a partnership subject to an 43 alternative adjustment action shall report such alternative adjustment 44 action, within ninety days after the alternative adjustment action 45 occurs, as applicable, regardless of the tax impact of such action. Such 46 report shall include any other information as the commissioner of 47 finance deems necessary in order to determine the impact of such alter- 48 native adjustment action. 49 3-c. The commissioner of finance may require the reports required by 50 subdivisions three-a and three-b of this section to be filed electron- 51 ically and shall establish exceptions from a taxpayer's requirement to 52 file such reports as the commissioner of finance determines are appro- 53 priate to facilitate the administration of this subdivision. 54 § 11. Paragraph (a) of subdivision 5 of section 11-672 of the adminis- 55 trative code of the city of New York, as amended by section 8 of part D 56 of chapter 60 of the laws of 2015, is amended to read as follows: S. 3009--C 99 A. 3009--C

1 (a) If the taxpayer fails to comply with subchapter two, three or 2 three-A of this chapter in not reporting a change or correction or rene- 3 gotiation, or computation or recomputation of tax, increasing or 4 decreasing its federal or New York state taxable income, alternative 5 minimum taxable income or other basis of tax as reported on its federal 6 or New York state income tax return , or in not reporting a change or 7 correction or renegotiation, or computation or recomputation of tax, 8 which is treated in the same manner as if it were a deficiency for 9 federal or New York state income tax purposes , or in not reporting an 10 alternative adjustment action, or in not filing an amended return , or in 11 not reporting the execution of a notice of waiver executed pursuant to 12 subsection (d) of section six thousand two hundred thirteen of the 13 internal revenue code or pursuant to subdivision (f) of section one 14 thousand eighty-one of the tax law, instead of the mode and time of 15 assessment provided for in subdivision two of this section, the commis- 16 sioner of finance may assess a deficiency based upon such increased or 17 decreased federal or New York state taxable income, alternative minimum 18 taxable income or other basis of tax by mailing to the taxpayer a notice 19 of additional tax due specifying the amount of the deficiency, and such 20 deficiency, together with the interest, additions to tax and penalties 21 stated in such notice, shall be deemed assessed on the date such notice 22 is mailed unless within thirty days after the mailing of such notice a 23 report of the federal or New York state change or correction or renego- 24 tiation, or computation or recomputation of tax, or report of an alter- 25 native adjustment action, or an amended return, where such return was 26 required by subchapter two, three or three-A, is filed accompanied by a 27 statement showing wherein such federal or New York state determination 28 and such notice of additional tax due are erroneous. 29 § 12. Subdivision 3 of section 11-678 of the administrative code of 30 the city of New York, as amended by section 16 of part D of chapter 60 31 of the laws of 2015, is amended to read as follows: 32 3. Notice of change or correction of federal or New York state income 33 or other basis of tax. (a) If a taxpayer is required by subchapter two, 34 three or three-A of this chapter to file a report or amended return in 35 respect of [ ] (i) a decrease or increase in federal or New York state 36 taxable income, alternative minimum taxable income or other basis of tax 37 or federal or New York state tax, [ ] (ii) a federal or New York state 38 change or correction or renegotiation, or computation or recomputation 39 of tax, which is treated in the same manner as if it were an overpayment 40 for federal or New York state income tax purposes , or (iii) an alterna- 41 tive adjustment action , claim for credit or refund of any resulting 42 overpayment of tax shall be filed by the taxpayer within two years from 43 the time such report or amended return was required to be filed with the 44 commissioner of finance. If the report or amended return required by 45 subchapter two, three or three-A of this chapter is not filed within the 46 ninety day period therein specified, no interest shall be payable on any 47 claim for credit or refund of the overpayment attributable to the feder- 48 al or New York state change or correction. 49 (b) The amount of such credit or refund[ 50 ] shall, (i) for taxable years beginning before January first, two 51 thousand fifteen, be computed without change of the allocation of income 52 or capital upon which the taxpayer's return (or any additional assess- 53 ment) was based, and, (ii) for taxable years beginning on or after Janu- 54 ary first, two thousand fifteen, be computed without change of the allo- 55 cation of income or capital upon which the taxpayer's return (or any 56 additional assessment) was based to the extent that the claim for refund S. 3009--C 100 A. 3009--C

1 arises from a decrease or increase in federal taxable income or other 2 basis of tax or federal tax, or from a federal change, correction, rene- 3 gotiation, computation or recomputation of tax, which is treated in the 4 same manner as if it were an overpayment for federal income tax 5 purposes[ ] . 6 [ ] (c) The amount of such credit or refund shall not exceed the 7 amount of the reduction in tax attributable to such decrease or increase 8 in federal or New York state taxable income, alternative minimum taxable 9 income or other basis of tax or federal or New York state tax or to such 10 federal or New York state change or correction or renegotiation, or 11 computation or recomputation of tax. 12 § 13. Paragraph (d) of subdivision 4 of section 11-680 of the adminis- 13 trative code of the city of New York, as amended by section 18 of part D 14 of chapter 60 of the laws of 2015, is amended to read as follows: 15 (d) Restriction on further notices of deficiency. If the taxpayer 16 files a petition with the tax appeals tribunal under this section, no 17 notice of deficiency under section 11-672 of this subchapter may there- 18 after be issued by the commissioner of finance for the same taxable 19 year, except in case of fraud or with respect to an increase or decrease 20 in federal or New York state taxable income, alternative minimum taxable 21 income or other basis of tax or federal or New York state tax , or a 22 federal or New York state change or correction or renegotiation, or 23 computation or recomputation of tax, which is treated in the same manner 24 as if it were a deficiency for federal or New York state income tax 25 purposes , or an alternative adjustment action , required to be reported 26 under subchapter two, three or three-A of this chapter or with respect 27 to a state change or correction of sales and compensating use tax 28 liability required to be reported under subchapter two or three-A of 29 this chapter. 30 § 14. Paragraph (c) of subdivision 5 of section 11-680 of the adminis- 31 trative code of the city of New York, as amended by section 19 of part D 32 of chapter 60 of the laws of 2015, is amended to read as follows: 33 (c) whether the petitioner is liable for any increase in a deficiency 34 where such increase is asserted initially after a notice of deficiency 35 was mailed and a petition under this section filed, unless such increase 36 in deficiency is the result of an increase or decrease in federal or New 37 York state taxable income, alternative minimum taxable income or other 38 basis of tax or federal or New York state tax , or a federal or New York 39 state change [ ] , correction [ ] , renegotiation, [ ] computation , or 40 recomputation of tax, which is treated in the same manner as if it were 41 a deficiency for federal or New York state income tax purposes , or an 42 alternative adjustment action , required to be reported under subchapter 43 two, three or three-A of this chapter, and of which increase, decrease, 44 change [ ] , correction [ ] , renegotiation, [ ] computation [ ] , 45 recomputation , or adjustment , the commissioner of finance had no notice 46 at the time [ ] such commissioner mailed the notice of deficien- 47 cy or unless such increase in deficiency is the result of a change or 48 correction of sales and compensating use tax liability required to be 49 reported under subchapter two or three-A of this chapter, and of which 50 change or correction the commissioner of finance had no notice at the 51 time [ ] such commissioner mailed the notice of deficiency; and 52 § 15. This act shall take effect on the ninetieth day after it shall 53 have become a law; provided, that, notwithstanding section 11-519 of the 54 administrative code of the city of New York, as amended by section two 55 of this act, or subdivision 3-b of section 11-605, subdivision (e-2) of 56 section 11-646, or subdivision 3-b of section 11-655 of such administra- S. 3009--C 101 A. 3009--C

1 tive code, as added by sections eight, nine and ten of this act, an 2 alternative adjustment action, as defined by either subdivision (o) of 3 section 11-501 or subdivision 13-b of section 11-601 of such administra- 4 tive code, as added by sections one and seven of this act, occurring 5 prior to such date shall not be required to be reported prior to 270 6 days after this act takes effect; and for the purposes of this section, 7 an alternative adjustment action shall be deemed to occur when the 8 applicable administrative adjustment request, federal election for 9 alternative payment or final federal adjustment, as such terms are 10 defined by subdivisions (n), (p) or (q) of section 11-501 and subdivi- 11 sions 13-a, 13-c, and 13-d of section 11-601 of such administrative 12 code, as added by sections one and seven of this act, occurs. 13 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 14 sion, section or part of this act shall be adjudged by any court of 15 competent jurisdiction to be invalid, such judgment shall not affect, 16 impair, or invalidate the remainder thereof, but shall be confined in 17 its operation to the clause, sentence, paragraph, subdivision, section 18 or part thereof directly involved in the controversy in which such judg- 19 ment shall have been rendered. It is hereby declared to be the intent of 20 the legislature that this act would have been enacted even if such 21 invalid provisions had not been included herein. 22 § 3. This act shall take effect immediately, provided, however, that 23 the applicable effective date of Subparts A and B of this act shall be 24 as specifically set forth in the last section of such Subparts.

25 PART W

26 Section 1. Section 1310 of the tax law is amended by adding a new 27 subsection (h) to read as follows: 28 (h) Credit for certain taxpayers with incomes below certain thresh- 29 olds. (1) Notwithstanding any other provision of law to the contrary, 30 for taxable years beginning on or after January first, two thousand 31 twenty-five, a credit shall be allowed to a taxpayer against the tax 32 imposed pursuant to the authority of this article in an amount equal to 33 the tax otherwise due under this article for such taxable year, reduced 34 by all the credits permitted by this article for such taxable year, if: 35 (A) such taxpayer is entitled to a deduction for such taxable year 36 under subsection (c) of section one hundred fifty-one of the internal 37 revenue code; 38 (B) such taxpayer meets the following income thresholds for such taxa- 39 ble year: 40 (i) for city taxpayers who filed a resident income tax return as 41 married taxpayers filing jointly or a qualified surviving spouse: 42 If the number of Income no greater than: 43 dependents is: 44 1 $36,789 45 2 $46,350 46 3 $54,545 47 4 $61,071 48 5 $68,403 49 6 $75,204 50 7 or more $91,902 S. 3009--C 102 A. 3009--C

1 (ii) for city taxpayers who filed a resident income tax return as a 2 single taxpayer, married taxpayer filing a separate return, or head of 3 household: 4 If the number of Income no greater than: 5 dependents is: 6 1 $31,503 7 2 $36,824 8 3 $46,512 9 4 $53,711 10 5 $59,928 11 6 $65,712 12 7 $74,565 13 8 or more $88,361 14 (iii) for any taxable year beginning on or after January first, two 15 thousand twenty-six, the commissioner shall multiply the amounts in this 16 subparagraph by one plus the cost-of-living adjustment, which shall be 17 the percentage by which the consumer price index for the preceding 18 calendar year exceeds the consumer price index for calendar year two 19 thousand twenty-four; 20 (C) such taxpayer is not allowed a credit pursuant to: 21 (i) subsection (a) of section eight hundred sixty-three of this chap- 22 ter against the tax imposed pursuant to article twenty-two of this chap- 23 ter; or 24 (ii) subsection (a) of section eight hundred seventy of this chapter 25 against the tax imposed pursuant to the authority of article thirty of 26 this chapter; and 27 (D) such taxpayer does not report disqualified income in excess of ten 28 thousand dollars in the taxable year, as defined in subsection (i) of 29 section thirty-two of the internal revenue code. 30 (2) Where the income of a taxpayer exceeds the amount indicated in 31 subparagraph (B) of paragraph one of this subsection for such taxpayer 32 by five thousand dollars or less, and such taxpayer satisfies subpara- 33 graph (A) and subparagraphs (C) and (D) of paragraph one of this 34 subsection, a credit shall be allowed in the amount determined by multi- 35 plying: (A) the tax otherwise due under this article for such taxable 36 year reduced by all the credits permitted by this article for such taxa- 37 ble year by (B) a fraction the numerator of which is five thousand 38 dollars minus the amount by which such income exceeds the amount indi- 39 cated in subparagraph (B) of paragraph one of this subsection and the 40 denominator of which is five thousand dollars. 41 (3) For purposes of this subsection: 42 (A) "Consumer price index" means the most recent consumer price index 43 for all-urban consumers published by the United States department of 44 labor. The consumer price index for any calendar year shall be the 45 average of the consumer price index as of the close of the twelve-month 46 period ending on August thirty-first of such calendar year. 47 (B) "Income" means federal adjusted gross income for the taxable year. 48 § 2. Section 11-1706 of the administrative code of the city of New 49 York is amended by adding a new subdivision (h) to read as follows: 50 (h) Credit for certain taxpayers with incomes below certain thresh- 51 olds. (1) Notwithstanding any other provision of law to the contrary, 52 for any taxable year beginning on or after January first, two thousand 53 twenty-five, a credit shall be allowed to a taxpayer against the taxes S. 3009--C 103 A. 3009--C

1 imposed pursuant to the authority of this chapter in an amount equal to 2 the tax otherwise due under this chapter for such taxable year reduced 3 by all the credits permitted by this chapter for such taxable year if: 4 (A) such taxpayer is entitled to a deduction for such taxable year 5 under subsection (c) of section one hundred fifty-one of the internal 6 revenue code; 7 (B) such taxpayer meets the following income thresholds for such taxa- 8 ble year: 9 (i) for city taxpayers who filed a resident income tax return as 10 married taxpayers filing jointly or a qualified surviving spouse: 11 If the number of dependents is: Income no greater than: 12 1 $36,789 13 2 $46,350 14 3 $54,545 15 4 $61,071 16 5 $68,403 17 6 $75,204 18 7 or more $91,902 19 (ii) for city taxpayers who filed a resident income tax return as a 20 single taxpayer, married taxpayer filing a separate return, or head of 21 household: 22 If the number of dependents is: Income no greater than: 23 1 $31,503 24 2 $36,824 25 3 $46,512 26 4 $53,711 27 5 $59,928 28 6 $65,712 29 7 $74,565 30 8 or more $88,361 31 (iii) for any taxable year beginning on or after January first, two 32 thousand twenty-six, the commissioner of the state department of taxa- 33 tion and finance shall multiply the amounts in this subparagraph by one 34 plus the cost-of-living adjustment, which shall be the percentage by 35 which the consumer price index for the preceding calendar year exceeds 36 the consumer price index for calendar year two thousand twenty-four; 37 (C) such taxpayer is not allowed a credit pursuant to: (i) subsection 38 (a) of section eight hundred sixty-three of the tax law against the 39 tax imposed pursuant to article twenty-two of such law; or (ii) subdivi- 40 sion (g) of this section against the tax imposed pursuant to this chap- 41 ter; 42 (D) such taxpayer does not report disqualified income in excess of ten 43 thousand dollars in the taxable year, as such term is defined in 44 subsection (i) of section thirty-two of the internal revenue code. 45 (2) Where the income of a taxpayer exceeds the amount indicated in 46 subparagraph (B) of paragraph one of this subdivision for such taxpayer 47 by five thousand dollars or less, and such taxpayer satisfies subpara- 48 graph (A) and subparagraphs (C) and (D) of paragraph one of this subdi- 49 vision, a credit shall be allowed in the amount determined by multiply- 50 ing: (A) the tax otherwise due under this article for such taxable year 51 reduced by all the credits permitted by this article for such taxable 52 year by (B) a fraction the numerator of which is five thousand dollars S. 3009--C 104 A. 3009--C

1 minus the amount by which such income exceeds the amount indicated in 2 subparagraph (B) of paragraph one of this subdivision and the denomina- 3 tor of which is five thousand dollars. 4 (3) For purposes of this subdivision: 5 (A) "Consumer price index" means the most recent consumer price index 6 for all-urban consumers published by the United States department of 7 labor. The consumer price index for any calendar year shall be the 8 average of the consumer price index as of the close of the twelve-month 9 period ending on August thirty-first of such calendar year. 10 (B) "Income" means federal adjusted gross income for a taxable year. 11 § 3. This act shall take effect immediately and shall apply to taxable 12 years beginning on or after January 1, 2025.

13 PART X

14 Intentionally Omitted

15 PART Y

16 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 17 law, as amended by section 1 of part K of chapter 59 of the laws of 18 2022, is amended to read as follows: 19 (a) General. A taxpayer shall be allowed a credit against the tax 20 imposed by this article. Such credit, to be computed as hereinafter 21 provided, shall be allowed for bioheating fuel, used for space heating 22 or hot water production for residential purposes within this state 23 purchased before January first, two thousand [ ] twenty-nine . 24 Such credit shall be $0.01 per percent of biodiesel per gallon of 25 bioheating fuel, not to exceed twenty cents per gallon, purchased by 26 such taxpayer. Provided, however, that on or after January first, two 27 thousand seventeen, this credit shall not apply to bioheating fuel that 28 is less than six percent biodiesel per gallon of bioheating fuel. 29 § 2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as 30 amended by section 2 of part K of chapter 59 of the laws of 2022, is 31 amended to read as follows: 32 (1) A taxpayer shall be allowed a credit against the tax imposed by 33 this article. Such credit, to be computed as hereinafter provided, shall 34 be allowed for bioheating fuel, used for space heating or hot water 35 production for residential purposes within this state and purchased on 36 or after July first, two thousand six and before July first, two thou- 37 sand seven and on or after January first, two thousand eight and before 38 January first, two thousand [ ] twenty-nine . Such credit shall 39 be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 40 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 41 however, that on or after January first, two thousand seventeen, this 42 credit shall not apply to bioheating fuel that is less than six percent 43 biodiesel per gallon of bioheating fuel. 44 § 3. This act shall take effect immediately.

45 PART Z

46 Section 1. Subdivision 6 of section 187-b of the tax law, as amended 47 by section 1 of part P of chapter 59 of the laws of 2022, is amended to 48 read as follows: S. 3009--C 105 A. 3009--C

1 6. Termination. The credit allowed by subdivision two of this section 2 shall not apply in taxable years beginning after December thirty-first, 3 two thousand [ ] twenty-eight . 4 § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, 5 as amended by section 2 of part P of chapter 59 of the laws of 2022, is 6 amended to read as follows: 7 (f) Termination. The credit allowed by paragraph (b) of this subdivi- 8 sion shall not apply in taxable years beginning after December thirty- 9 first, two thousand [ ] twenty-eight . 10 § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as 11 amended by section 3 of part P of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (6) Termination. The credit allowed by this subsection shall not apply 14 in taxable years beginning after December thirty-first, two thousand 15 [ ] twenty-eight . 16 § 4. This act shall take effect immediately.

17 PART AA

18 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 19 section 1115 of the tax law, as amended by section 1 of part J of chap- 20 ter 59 of the laws of 2024, is amended to read as follows: 21 (B) Until May thirty-first, two thousand [ ] twenty-six , the 22 food and drink excluded from the exemption provided by clauses (i), (ii) 23 and (iii) of subparagraph (A) of this paragraph, and bottled water, 24 shall be exempt under this subparagraph: (i) when sold for one dollar 25 and fifty cents or less through any vending machine that accepts coin or 26 currency only; or (ii) when sold for two dollars or less through any 27 vending machine that accepts any form of payment other than coin or 28 currency, whether or not it also accepts coin or currency. 29 § 2. This act shall take effect immediately.

30 PART BB

31 Section 1. Subdivision (f) of section 25-b of the labor law, as added 32 by section 2 of part Q of chapter 59 of the laws of 2022, is amended to 33 read as follows: 34 (f) The tax credits provided under this program shall be applicable to 35 taxable periods beginning before January first, two thousand [ 36 ] twenty-nine . 37 § 2. This act shall take effect immediately. 38 PART CC

39 Section 1. Paragraph (a) of subdivision 29 of section 210-B of the 40 tax law, as amended by section 1 of part H of chapter 59 of the laws of 41 2022, is amended to read as follows: 42 (a) Allowance of credit. For taxable years beginning on or after Janu- 43 ary first, two thousand fifteen and before January first, two thousand 44 [ ] twenty-nine , a taxpayer shall be allowed a credit, to be 45 computed as provided in this subdivision, against the tax imposed by 46 this article, for hiring and employing, for not less than twelve contin- 47 uous and uninterrupted months (hereinafter referred to as the twelve- 48 month period) in a full-time or part-time position, a qualified veteran 49 within the state. The taxpayer may claim the credit in the year in which 50 the qualified veteran completes the twelve-month period of employment by 51 the taxpayer. If the taxpayer claims the credit allowed under this S. 3009--C 106 A. 3009--C

1 subdivision, the taxpayer may not use the hiring of a qualified veteran 2 that is the basis for this credit in the basis of any other credit 3 allowed under this article. 4 § 2. Subparagraph 2 of paragraph (b) of subdivision 29 of section 5 210-B of the tax law, as amended by section 1 of part H of chapter 59 of 6 the laws of 2022, is amended to read as follows: 7 (2) who commences employment by the qualified taxpayer on or after 8 January first, two thousand fourteen, and before January first, two 9 thousand [ ] twenty-eight ; and 10 § 3. Paragraph 1 of subsection (a-2) of section 606 of the tax law, as 11 amended by section 2 of part H of chapter 59 of the laws of 2022, is 12 amended to read as follows: 13 (1) Allowance of credit. For taxable years beginning on or after Janu- 14 ary first, two thousand fifteen and before January first, two thousand 15 [ ] twenty-nine , a taxpayer shall be allowed a credit, to be 16 computed as provided in this subsection, against the tax imposed by this 17 article, for hiring and employing, for not less than twelve continuous 18 and uninterrupted months (hereinafter referred to as the twelve-month 19 period) in a full-time or part-time position, a qualified veteran within 20 the state. The taxpayer may claim the credit in the year in which the 21 qualified veteran completes the twelve-month period of employment by the 22 taxpayer. If the taxpayer claims the credit allowed under this 23 subsection, the taxpayer may not use the hiring of a qualified veteran 24 that is the basis for this credit in the basis of any other credit 25 allowed under this article. 26 § 4. Subparagraph (B) of paragraph 2 of subsection (a-2) of section 27 606 of the tax law, as amended by section 2 of part H of chapter 59 of 28 the laws of 2022, is amended to read as follows: 29 (B) who commences employment by the qualified taxpayer on or after 30 January first, two thousand fourteen, and before January first, two 31 thousand [ ] twenty-eight ; and 32 § 5. Paragraph 1 of subdivision (g-1) of section 1511 of the tax law, 33 as amended by section 3 of part H of chapter 59 of the laws of 2022, is 34 amended to read as follows: 35 (1) Allowance of credit. For taxable years beginning on or after Janu- 36 ary first, two thousand fifteen and before January first, two thousand 37 [ ] twenty-nine , a taxpayer shall be allowed a credit, to be 38 computed as provided in this subdivision, against the tax imposed by 39 this article, for hiring and employing, for not less than twelve contin- 40 uous and uninterrupted months (hereinafter referred to as the twelve- 41 month period) in a full-time or part-time position, a qualified veteran 42 within the state. The taxpayer may claim the credit in the year in which 43 the qualified veteran completes the twelve-month period of employment by 44 the taxpayer. If the taxpayer claims the credit allowed under this 45 subdivision, the taxpayer may not use the hiring of a qualified veteran 46 that is the basis for this credit in the basis of any other credit 47 allowed under this article. 48 § 6. Subparagraph (B) of paragraph 2 of subdivision (g-1) of section 49 1511 of the tax law, as amended by section 3 of part H of chapter 59 of 50 the laws of 2022, is amended to read as follows: 51 (B) who commences employment by the qualified taxpayer on or after 52 January first, two thousand fourteen, and before January first, two 53 thousand [ ] twenty-eight ; and 54 § 7. This act shall take effect immediately.

55 PART DD S. 3009--C 107 A. 3009--C

1 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, 2 amending the tax law relating to a musical and theatrical production 3 credit, as amended by section 1 of part HH of chapter 59 of the laws of 4 2021, is amended to read as follows: 5 § 5. This act shall take effect immediately, provided that section two 6 of this act shall take effect on January 1, 2015, and shall apply to 7 taxable years beginning on or after January 1, 2015, with respect to 8 "qualified production expenditures" and "transportation expenditures" 9 paid or incurred on or after such effective date, regardless of whether 10 the production of the qualified musical or theatrical production 11 commenced before such date, provided further that this act shall expire 12 and be deemed repealed January 1, [ ] 2030 . 13 § 2. This act shall take effect immediately.

14 PART EE

15 Section 1. Section 2 of part U of chapter 59 of the laws of 2017, amend- 16 ing the tax law, relating to the financial institution data match system 17 for state tax collection purposes, as amended by section 1 of part A of 18 chapter 59 of the laws of 2020, is amended to read as follows: 19 § 2. This act shall take effect immediately and shall expire April 1, 20 [ ] 2030 when upon such date the provisions of this act shall be 21 deemed repealed. 22 § 2. This act shall take effect immediately.

23 PART FF

24 Section 1. This act enacts into law major components of legislation 25 necessary to implement certain provisions regarding simplifying the 26 pari-mutuel tax rate system. Each component is wholly contained within a 27 Subpart identified as Subparts A through C. The effective date for each 28 particular provision contained within such Subpart is set forth in the 29 last section of such Subpart. Any provision in any section contained 30 within a Subpart, including the effective date of the Subpart, which 31 makes a reference to a section "of this act", when used in connection 32 with that particular component, shall be deemed to mean and refer to the 33 corresponding section of the Subpart in which it is found. Section three 34 of this act sets forth the general effective date of this act.

35 SUBPART A

36 Section 1. The racing, pari-mutuel wagering and breeding law is 37 amended by adding a new section 136 to read as follows: 38 § 136. Pari-mutuel wagering tax. 1. Notwithstanding any law to the 39 contrary, the excise tax imposed on any racing association or corpo- 40 ration or regional off-track betting corporation, authorized to conduct 41 pari-mutuel wagering shall be seven-tenths of one percent (0.7%) of all 42 money wagered through such association or corporation. 43 2. Beginning with state fiscal year two thousand twenty-six, the 44 aggregate amount of the pari-mutuel wagering tax paid by a harness track 45 pursuant to paragraph (b) of subdivision one of this section in a state 46 fiscal year shall not exceed the pari-mutuel wagering tax attributable 47 to live racing handle paid by such harness track in state fiscal year 48 two thousand twenty-four. S. 3009--C 108 A. 3009--C

1 3. All pari-mutuel wagering taxes shall be collected and remitted in 2 the same manner as such taxes were collected and remitted prior to the 3 enactment of this section. 4 4. Breaks, as defined in sections two hundred thirty-six, two hundred 5 thirty-eight, three hundred eighteen, and four hundred eighteen of this 6 chapter are not permitted, unless required by another jurisdiction 7 pursuant to section nine hundred five of this chapter. All distributions 8 to the holders of winning tickets shall be calculated to the nearest 9 penny. 10 5. Notwithstanding subdivision four of this section, a racetrack may 11 round to the nearest nickel for bets made at the facility, however the 12 breaks must be directed to the retired and rescued thoroughbred horse 13 aftercare fund pursuant to section two hundred nine-n of the tax law if 14 the bet was made on a thoroughbred race, and to the retired and rescued 15 standardbred horse aftercare fund pursuant to section two hundred nine-o 16 of the tax law if the bet was made on a standardbred race. 17 § 2. Section 908 of the racing, pari-mutuel wagering and breeding law 18 is REPEALED. 19 § 3. Section 1011 of the racing, pari-mutuel wagering and breeding 20 law, as amended by chapter 243 of the laws of 2020, is amended to read 21 as follows: 22 § 1011. Certain credit to off-track betting corporations. a. [ 23 24 25 26 27 28 29 30 31 32 33 34 35 ] During the days that a franchised corporation is simulcasting from 36 a racetrack facility operated by such franchised corporation and located 37 in the first zone to a racetrack facility operated by such franchised 38 corporation located wholly within a city of one million or more, one 39 percent of the total wagers placed at such receiving facility shall be 40 paid to such city. 41 [ ] b. During the days that a franchised corporation is simulcasting 42 from a facility located wholly within a city in the first zone to a 43 racetrack facility operated by such franchised corporation located 44 partially within a city with a population in excess of one million and 45 partially within a county, one-half percent of the total wagers placed 46 at such receiving facility shall be paid to such city and one-half 47 percent of such wagers shall be paid to such county. 48 § 4. This act shall take effect September 1, 2025.

49 SUBPART B

50 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 51 racing, pari-mutuel wagering and breeding law, as amended by section 1 52 of part P of chapter 59 of the laws of 2024, is amended to read as 53 follows: S. 3009--C 109 A. 3009--C

1 (a) Any racing association or corporation or regional off-track 2 betting corporation, authorized to conduct pari-mutuel wagering under 3 this chapter, desiring to display the simulcast of horse races on which 4 pari-mutuel betting shall be permitted in the manner and subject to the 5 conditions provided for in this article may apply to the commission for 6 a license so to do. Applications for licenses shall be in such form as 7 may be prescribed by the commission and shall contain such information 8 or other material or evidence as the commission may require. No license 9 shall be issued by the commission authorizing the simulcast transmission 10 of thoroughbred races from a track located in Suffolk county. The fee 11 for such licenses shall be five hundred dollars per simulcast facility 12 and for account wagering licensees that do not operate either a simul- 13 cast facility that is open to the public within the state of New York or 14 a licensed racetrack within the state, twenty thousand dollars per year 15 payable by the licensee to the commission for deposit into the general 16 fund. Except as provided in this section, the commission shall not 17 approve any application to conduct simulcasting into individual or group 18 residences, homes or other areas for the purposes of or in connection 19 with pari-mutuel wagering. The commission may approve simulcasting into 20 residences, homes or other areas to be conducted jointly by one or more 21 regional off-track betting corporations and one or more of the follow- 22 ing: a franchised corporation, thoroughbred racing corporation or a 23 harness racing corporation or association; provided (i) the simulcasting 24 consists only of those races on which pari-mutuel betting is authorized 25 by this chapter at one or more simulcast facilities for each of the 26 contracting off-track betting corporations which shall include wagers 27 made in accordance with section one thousand fifteen, one thousand 28 sixteen and one thousand seventeen of this article; provided further 29 that the contract provisions or other simulcast arrangements for such 30 simulcast facility shall be no less favorable than those in effect on 31 January first, two thousand five; (ii) that each off-track betting 32 corporation having within its geographic boundaries such residences, 33 homes or other areas technically capable of receiving the simulcast 34 signal shall be a contracting party; (iii) the distribution of revenues 35 shall be subject to contractual agreement of the parties except that 36 statutory payments to non-contracting parties, if any, may not be 37 reduced; provided, however, that nothing herein to the contrary shall 38 prevent a track from televising its races on an irregular basis primari- 39 ly for promotional or marketing purposes as found by the commission. For 40 purposes of this paragraph, the provisions of section one thousand thir- 41 teen of this article shall not apply. Any agreement authorizing an 42 in-home simulcasting experiment commencing prior to May fifteenth, nine- 43 teen hundred ninety-five, may, and all its terms, be extended until June 44 thirtieth, two thousand [ ] twenty-six ; provided, however, 45 that any party to such agreement may elect to terminate such agreement 46 upon conveying written notice to all other parties of such agreement at 47 least forty-five days prior to the effective date of the termination, 48 via registered mail. Any party to an agreement receiving such notice of 49 an intent to terminate, may request the commission to mediate between 50 the parties new terms and conditions in a replacement agreement between 51 the parties as will permit continuation of an in-home experiment until 52 June thirtieth, two thousand [ ] twenty-six ; and (iv) no 53 in-home simulcasting in the thoroughbred special betting district shall 54 occur without the approval of the regional thoroughbred track. 55 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 56 1007 of the racing, pari-mutuel wagering and breeding law, as amended by S. 3009--C 110 A. 3009--C

1 section 2 of part P of chapter 59 of the laws of 2024, is amended to 2 read as follows: 3 (iii) Of the sums retained by a receiving track located in Westchester 4 county on races received from a franchised corporation, for the period 5 commencing January first, two thousand eight and continuing through June 6 thirtieth, two thousand [ ] twenty-six , the amount used exclu- 7 sively for purses to be awarded at races conducted by such receiving 8 track shall be computed as follows: of the sums so retained, two and 9 one-half percent of the total pools. Such amount shall be increased or 10 decreased in the amount of fifty percent of the difference in total 11 commissions determined by comparing the total commissions available 12 after July twenty-first, nineteen hundred ninety-five to the total 13 commissions that would have been available to such track prior to July 14 twenty-first, nineteen hundred ninety-five. 15 § 3. The opening paragraph of subdivision 1 of section 1014 of the 16 racing, pari-mutuel wagering and breeding law, as amended by section 3 17 of part P of chapter 59 of the laws of 2024, is amended to read as 18 follows: 19 The provisions of this section shall govern the simulcasting of races 20 conducted at thoroughbred tracks located in another state or country on 21 any day during which a franchised corporation is conducting a race meet- 22 ing in Saratoga county at Saratoga thoroughbred racetrack until June 23 thirtieth, two thousand [ ] twenty-six and on any day regard- 24 less of whether or not a franchised corporation is conducting a race 25 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 26 thirtieth, two thousand [ ] twenty-six . On any day on which a 27 franchised corporation has not scheduled a racing program but a 28 thoroughbred racing corporation located within the state is conducting 29 racing, each off-track betting corporation branch office and each simul- 30 casting facility licensed in accordance with section one thousand seven 31 (that has entered into a written agreement with such facility's repre- 32 sentative horsemen's organization, as approved by the commission), one 33 thousand eight, or one thousand nine of this article shall be authorized 34 to accept wagers and display the live simulcast signal from thoroughbred 35 tracks located in another state or foreign country subject to the 36 following provisions: 37 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 38 and breeding law, as amended by section 4 of part P of chapter 59 of the 39 laws of 2024, is amended to read as follows: 40 1. The provisions of this section shall govern the simulcasting of 41 races conducted at harness tracks located in another state or country 42 during the period July first, nineteen hundred ninety-four through June 43 thirtieth, two thousand [ ] twenty-six . This section shall 44 supersede all inconsistent provisions of this chapter. 45 § 5. The opening paragraph of subdivision 1 of section 1016 of the 46 racing, pari-mutuel wagering and breeding law, as amended by section 5 47 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 The provisions of this section shall govern the simulcasting of races 50 conducted at thoroughbred tracks located in another state or country on 51 any day during which a franchised corporation is not conducting a race 52 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 53 thirtieth, two thousand [ ] twenty-six . Every off-track 54 betting corporation branch office and every simulcasting facility 55 licensed in accordance with section one thousand seven that have entered 56 into a written agreement with such facility's representative horsemen's S. 3009--C 111 A. 3009--C

1 organization as approved by the commission, one thousand eight or one 2 thousand nine of this article shall be authorized to accept wagers and 3 display the live full-card simulcast signal of thoroughbred tracks 4 (which may include quarter horse or mixed meetings provided that all 5 such wagering on such races shall be construed to be thoroughbred races) 6 located in another state or foreign country, subject to the following 7 provisions; provided, however, no such written agreement shall be 8 required of a franchised corporation licensed in accordance with section 9 one thousand seven of this article: 10 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 11 wagering and breeding law, as amended by section 6 of part P of chapter 12 59 of the laws of 2024, is amended to read as follows: 13 Notwithstanding any other provision of this chapter, for the period 14 July twenty-fifth, two thousand one through September eighth, two thou- 15 sand [ ] twenty-five , when a franchised corporation is 16 conducting a race meeting within the state at Saratoga Race Course, 17 every off-track betting corporation branch office and every simulcasting 18 facility licensed in accordance with section one thousand seven (that 19 has entered into a written agreement with such facility's representative 20 horsemen's organization as approved by the commission), one thousand 21 eight or one thousand nine of this article shall be authorized to accept 22 wagers and display the live simulcast signal from thoroughbred tracks 23 located in another state, provided that such facility shall accept 24 wagers on races run at all in-state thoroughbred tracks which are 25 conducting racing programs subject to the following provisions; 26 provided, however, no such written agreement shall be required of a 27 franchised corporation licensed in accordance with section one thousand 28 seven of this article. 29 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 30 racing, pari-mutuel wagering and breeding law and other laws relating to 31 simulcasting, as amended by section 7 of part P of chapter 59 of the 32 laws of 2024, is amended to read as follows: 33 § 32. This act shall take effect immediately and the pari-mutuel tax 34 reductions in section six of this act shall expire and be deemed 35 repealed on July 1, [ ] 2026 ; provided, however, that nothing 36 contained herein shall be deemed to affect the application, qualifica- 37 tion, expiration, or repeal of any provision of law amended by any 38 section of this act, and such provisions shall be applied or qualified 39 or shall expire or be deemed repealed in the same manner, to the same 40 extent and on the same date as the case may be as otherwise provided by 41 law; provided further, however, that sections twenty-three and twenty- 42 five of this act shall remain in full force and effect only until May 1, 43 1997 and at such time shall be deemed to be repealed. 44 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 45 racing, pari-mutuel wagering and breeding law and other laws relating to 46 simulcasting and the imposition of certain taxes, as amended by section 47 8 of part P of chapter 59 of the laws of 2024, is amended to read as 48 follows: 49 § 54. This act shall take effect immediately; provided, however, 50 sections three through twelve of this act shall take effect on January 51 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 52 ing law, as added by section thirty-eight of this act, shall expire and 53 be deemed repealed on July 1, [ ] 2026 ; and section eighteen of this 54 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 55 two of this act shall take effect as of the same date as chapter 772 of 56 the laws of 1989 took effect. S. 3009--C 112 A. 3009--C

1 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 2 pari-mutuel wagering and breeding law, as amended by section 9 of part P 3 of chapter 59 of the laws of 2024, is amended to read as follows: 4 (a) The franchised corporation authorized under this chapter to 5 conduct pari-mutuel betting at a race meeting or races run thereat shall 6 distribute all sums deposited in any pari-mutuel pool to the holders of 7 winning tickets therein, provided such tickets are presented for payment 8 before April first of the year following the year of their purchase, 9 less an amount that shall be established and retained by such franchised 10 corporation of between twelve to seventeen percent of the total deposits 11 in pools resulting from on-track regular bets, and fourteen to twenty- 12 one percent of the total deposits in pools resulting from on-track 13 multiple bets and fifteen to twenty-five percent of the total deposits 14 in pools resulting from on-track exotic bets and fifteen to thirty-six 15 percent of the total deposits in pools resulting from on-track super 16 exotic bets, plus the breaks. The retention rate to be established is 17 subject to the prior approval of the commission. 18 Such rate may not be changed more than once per calendar quarter to be 19 effective on the first day of the calendar quarter. "Exotic bets" and 20 "multiple bets" shall have the meanings set forth in section five 21 hundred nineteen of this chapter. "Super exotic bets" shall have the 22 meaning set forth in section three hundred one of this chapter. For 23 purposes of this section, a "pick six bet" shall mean a single bet or 24 wager on the outcomes of six races. The breaks are hereby defined as the 25 odd cents over any multiple of five for payoffs greater than one dollar 26 five cents but less than five dollars, over any multiple of ten for 27 payoffs greater than five dollars but less than twenty-five dollars, 28 over any multiple of twenty-five for payoffs greater than twenty-five 29 dollars but less than two hundred fifty dollars, or over any multiple of 30 fifty for payoffs over two hundred fifty dollars. Out of the amount so 31 retained there shall be paid by such franchised corporation to the 32 commissioner of taxation and finance, as a reasonable tax by the state 33 for the privilege of conducting pari-mutuel betting on the races run at 34 the race meetings held by such franchised corporation, the following 35 percentages of the total pool for regular and multiple bets five percent 36 of regular bets and four percent of multiple bets plus twenty percent of 37 the breaks; for exotic wagers seven and one-half percent plus twenty 38 percent of the breaks, and for super exotic bets seven and one-half 39 percent plus fifty percent of the breaks. 40 For the period April first, two thousand one through December thirty- 41 first, two thousand [ ] twenty-six , such tax on all wagers 42 shall be one and six-tenths percent, plus, in each such period, twenty 43 percent of the breaks. Payment to the New York state thoroughbred breed- 44 ing and development fund by such franchised corporation shall be one- 45 half of one percent of total daily on-track pari-mutuel pools resulting 46 from regular, multiple and exotic bets and three percent of super exotic 47 bets and for the period April first, two thousand one through December 48 thirty-first, two thousand [ ] twenty-six , such payment shall 49 be seven-tenths of one percent of regular, multiple and exotic pools. 50 § 10. This act shall take effect immediately.

51 SUBPART C

52 Section 1. Subdivision 1 and paragraphs a and b of subdivision 2 of 53 section 115-b of the racing, pari-mutuel wagering and breeding law, as S. 3009--C 113 A. 3009--C

1 added by chapter 174 of the laws of 2013, are amended to read as 2 follows: 3 1. Notwithstanding any other provision of law to the contrary, any 4 racing associations and corporations, franchised corporations, and off- 5 track betting corporations that makes a payment of the regulatory fees 6 imposed by this chapter may reduce such payment by an amount equal to 7 the market origin credit allocated to such racing association or corpo- 8 ration, franchised corporation, or off-track betting corporation by the 9 commission. The commission shall allocate credits in an amount equal to 10 [ ] eighty-two and six-tenths percent of the amount received from 11 the market origin fee paid pursuant to subdivision six of section one 12 thousand twelve-a of this chapter for the period from the sixteenth day 13 of the preceding month through the fifteenth day of the current month. 14 The commission shall notify participants of allocations on or before the 15 twentieth day of the current month. 16 a. [ ] Thirty-six and seven-tenths percent of the amount received 17 from the market origin fee paid pursuant to subdivision six of section 18 one thousand twelve-a of this chapter to regional off-track betting 19 corporations. Allocations to individual regional off-track betting 20 corporations shall be made based on a ratio where the numerator is the 21 regional corporation's total in-state handle for the previous calendar 22 year as calculated by the commission and the denominator is the total 23 in-state handle of all the regional off-track betting corporations for 24 the previous calendar year as calculated by the commission; 25 b. [ ] Forty-five and nine-tenths percent of the amount received 26 from the market origin fee paid pursuant to subdivision six of section 27 one thousand twelve-a of this chapter to the racing associations and 28 corporations and franchised corporations. Allocations to individual 29 racing associations and corporations and franchised corporations shall 30 be made as follows: 31 (i) Sixty percent to thoroughbred racing associations and franchised 32 corporations. Five-sixths shall be allocated to a franchised corporation 33 and one-sixth shall be allocated to a thoroughbred racing association. 34 (ii) Forty percent to harness racing associations and corporations. 35 Allocations to individual harness racing associations and corporations 36 shall be made based on a ratio where the numerator is the association's 37 or corporation's total in-state handle on live racing for the previous 38 calendar year as calculated by the commission and the denominator is the 39 total in-state on live handle for all harness racing associations and 40 corporations for the previous calendar year as calculated by the commis- 41 sion. 42 § 2. Subdivision 6 of section 1012-a of the racing, pari-mutuel wager- 43 ing and breeding law, as amended by chapter 243 of the laws of 2020, is 44 amended to read as follows: 45 6. multi-jurisdictional account wagering providers shall : 46 (a) pay a market origin fee equal to five and forty-five hundredths 47 percent on each wager accepted from New York residents. [ 48 ] 49 (b) pay an additional fee equal to one percent on each wager accepted 50 from New York residents which shall be directed to the general fund of 51 the state treasury. 52 (c) make the required payments to the market origin account on or 53 before the fifth business day of each month and such required payments 54 shall cover payments due for the period of the preceding calendar month; 55 provided, however, that such payments required to be made on April 56 fifteenth shall be accompanied by a report under oath, showing the total S. 3009--C 114 A. 3009--C

1 of all such payments, together with such other information as the 2 commission may require. A penalty of five percent and interest at the 3 rate of one percent per month from the date the report is required to be 4 filed to the date the payment shall be payable in case any payments 5 required by this subdivision are not paid when due. If the commission 6 determines that any moneys received under this subdivision were paid in 7 error, the commission may cause the same to be refunded without interest 8 out of any moneys collected thereunder, provided an application therefor 9 is filed with the commission within one year from the time the erroneous 10 payment was made. The commission shall pay into the racing regulation 11 account, under the joint custody of the comptroller and the commission, 12 the total amount of the fee collected pursuant to paragraph (a) of this 13 [ ] subdivision . 14 § 3. Subdivision 3 of section 99-i of the state finance law, as 15 amended by chapter 174 of the laws of 2013, is amended to read as 16 follows: 17 3. Moneys of this account shall be available to the commission to pay 18 for the costs of carrying out the purposes of the racing, pari-mutuel 19 wagering and breeding law; provided, however, an amount equal to [ ] 20 twelve and eight-tenths percent of the amount received by the account 21 from the market origin fee imposed by subdivision six of section one 22 thousand twelve-a of the racing, pari-mutuel wagering and breeding law 23 shall be transferred to the state department of taxation and finance and 24 the department shall deem this transfer as a payment of a pari-mutuel 25 tax. 26 § 4. 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 29 competent jurisdiction to be invalid, such judgment shall not affect, 30 impair, or invalidate the remainder thereof, but shall be confined in 31 its operation to the clause, sentence, paragraph, subdivision, section 32 or part thereof directly involved in the controversy in which such judg- 33 ment shall have been rendered. It is hereby declared to be the intent of 34 the legislature that this act would have been enacted even if such 35 invalid provisions had not been included herein. 36 § 3. This act shall take effect immediately provided, however, that 37 the applicable effective date of Subparts A through C of this act shall 38 be as specifically set forth in the last section of such Subparts.

39 PART GG

40 Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel 41 wagering and breeding law, as added by chapter 174 of the laws of 2013, 42 is amended to read as follows: 43 1. (a) For a gaming facility in zone two, there is hereby imposed a 44 tax on gross gaming revenues. The amount of such tax imposed shall be as 45 follows; provided, however, should a licensee have agreed within its 46 application to supplement the tax with a binding supplemental fee 47 payment exceeding the aforementioned tax rate, such tax and supplemental 48 fee shall apply for a gaming facility: 49 [ ] (1) in region two, forty-five percent of gross gaming revenue 50 from slot machines and ten percent of gross gaming revenue from all 51 other sources. 52 [ ] (2) in region one, thirty-nine percent of gross gaming revenue 53 from slot machines and ten percent of gross gaming revenue from all 54 other sources. S. 3009--C 115 A. 3009--C

1 [ ] (3) in region five, thirty-seven percent of gross gaming revenue 2 from slot machines and ten percent of gross gaming revenue from all 3 other sources. 4 (b) (1) Notwithstanding the tax rates on gross gaming revenue from 5 slot machines provided in paragraph (a) of this subdivision, for the 6 period of April first, two thousand twenty-six through June thirtieth, 7 two thousand thirty-one, each gaming facility in zone two shall continue 8 to be subject to the same tax rate on gross gaming revenue from slot 9 machines as was imposed in the preceding fiscal year. 10 (2) As a condition of the lower slot machine tax rate, the licensed 11 gaming facility must: 12 (i) be current on all statutory obligations to the state or have 13 entered into and be in compliance with a repayment agreement with the 14 state. If the commission, in its sole discretion, determines that a 15 gaming facility has not adhered to this condition for any such time 16 period, the gaming facility shall forfeit this lower slot machine tax 17 rate for such time period. 18 (ii) have provided the initial report to the governor, the speaker of 19 the assembly, the temporary president of the senate, and the commission 20 as required pursuant to subdivision one-b of this section. 21 (3) (i) Each gaming facility shall provide an annual fiscal report to 22 the governor, the speaker of the assembly, the temporary president of 23 the senate, director of the division of budget and the commission 24 detailing actual use of the funds resulting from the lower slot machine 25 tax rate. Such report shall include, but not be limited to, any impact 26 on employment levels since receiving the lower slot machine tax rate, an 27 accounting of the use of such funds, any other measures implemented to 28 improve the financial stability of the gaming facility and any other 29 information as deemed necessary by the commission. Such report shall be 30 due no later than January first of each year and shall be posted on the 31 commission website. 32 (ii) At the conclusion of each year, a licensed gaming facility shall 33 provide an affirmation in writing to the commission stating the employ- 34 ment goal in subdivision one-b of this section was either met or not met 35 as described in the initial report. If the licensed gaming facility is 36 found to have not adhered to the plan by the commission, then the appli- 37 cable slot tax rate may be adjusted at the discretion of the commission 38 as follows: 39 (A) If the actual employment number is more than fifty percent less 40 than the employment goal, then the slot tax rate shall be increased by 41 ten percentage points. 42 (B) If the actual employment number is more than forty percent less 43 than the employment goal, then the slot tax rate shall be increased by 44 eight percentage points. 45 (C) If the actual employment number is more than thirty percent less 46 than the employment goal, then the slot tax rate shall be increased by 47 six percentage points. 48 (D) If the actual employment number is more than twenty percent less 49 than the employment goal, then the slot tax rate shall be increased by 50 four percentage points. 51 (E) If the actual employment number is more than ten percent less than 52 the employment goal, then the slot tax rate shall be increased by two 53 percentage points. 54 (iii) Such finding and the reasoning thereof shall occur no later than 55 thirty days following submission of the written affirmation. S. 3009--C 116 A. 3009--C

1 § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law 2 is amended by adding a new subdivision 1-b to read as follows: 3 1-b. As a condition of the lower slot machine tax rate taking effect 4 April first, two thousand twenty-six, pursuant to subdivision one of 5 this section, the licensed gaming facility must provide an initial 6 report to the governor, the speaker of the assembly, the temporary pres- 7 ident of the senate, and the commission clearly detailing the estab- 8 lished quarterly and annual employment goals of increasing full-time 9 employees for each year that the facility will receive a lower tax rate 10 and any substantial changes to the initial plan. This report is due no 11 later than January first, two thousand twenty-six and shall be posted on 12 the commission's website. 13 § 3. Section 2 of part OOO of chapter 59 of the laws of 2021 amending 14 the racing, pari-mutuel wagering and breeding law relating to the tax 15 on gaming revenues, is amended to read as follows: 16 § 2. This act shall take effect immediately and shall expire and be 17 deemed repealed [ ] April 1, 2026 . 18 § 4. This act shall take effect immediately; provided however, that 19 section one of this act shall take effect on the same date as the rever- 20 sion of subdivision 1 of section 1351 of the racing, pari-mutuel wager- 21 ing and breeding law as provided in section 2 of part OOO of chapter 59 22 of the laws of 2021, as amended; provided further, that sections one and 23 two of this act shall expire and be deemed repealed July 1, 2031.

24 PART HH

25 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 26 wagering and breeding law, as amended by section 1 of part O of chapter 27 59 of the laws of 2024, is amended to read as follows: 28 2. a. Notwithstanding any other provision of law or regulation to the 29 contrary, from April nineteenth, two thousand twenty-one to March thir- 30 ty-first, two thousand twenty-two, twenty-three percent of the funds, 31 not to exceed two and one-half million dollars, in the Catskill off- 32 track betting corporation's capital acquisition fund and twenty-three 33 percent of the funds, not to exceed four hundred forty thousand dollars, 34 in the Capital off-track betting corporation's capital acquisition fund 35 established pursuant to this section shall also be available to such 36 off-track betting corporation for the purposes of statutory obligations, 37 payroll, and expenditures necessary to accept authorized wagers. 38 b. Notwithstanding any other provision of law or regulation to the 39 contrary, from April first, two thousand twenty-two to March thirty- 40 first, two thousand twenty-three, twenty-three percent of the funds, not 41 to exceed two and one-half million dollars, in the Catskill off-track 42 betting corporation's capital acquisition fund established pursuant to 43 this section, and twenty-three percent of the funds, not to exceed four 44 hundred forty thousand dollars, in the Capital off-track betting corpo- 45 ration's capital acquisition fund established pursuant to this section, 46 shall be available to such off-track betting corporations for the 47 purposes of statutory obligations, payroll, and expenditures necessary 48 to accept authorized wagers. 49 c. Notwithstanding any other provision of law or regulation to the 50 contrary, from April first, two thousand twenty-three to March thirty- 51 first, two thousand twenty-four, twenty-three percent of the funds, not 52 to exceed two and one-half million dollars, in the Catskill off-track 53 betting corporation's capital acquisition fund established pursuant to 54 this section, and one million dollars in the Capital off-track betting S. 3009--C 117 A. 3009--C

1 corporation's capital acquisition fund established pursuant to this 2 section, shall be available to such off-track betting corporation for 3 the purposes of expenditures necessary to accept authorized wagers; past 4 due statutory obligations to New York licensed or franchised racing 5 corporations or associations; past due contractual obligations due to 6 other racing associations or organizations for the costs of acquiring a 7 simulcast signal; past due statutory payment obligations due to the New 8 York state thoroughbred breeding and development fund corporation, agri- 9 culture and New York state horse breeding development fund, and the 10 Harry M. Zweig memorial fund for equine research; and past due obli- 11 gations due the state. 12 d. Notwithstanding any other provision of law or regulation to the 13 contrary, from April first, two thousand twenty-four to March thirty- 14 first, two thousand twenty-five, twenty-three percent of the funds, not 15 to exceed two and one-half million dollars, in the Catskill off-track 16 betting corporation's capital acquisition fund established pursuant to 17 this section, and one million dollars in the Capital off-track betting 18 corporation's capital acquisition fund established pursuant to this 19 section, shall be available to such off-track betting corporation for 20 the purposes of expenditures necessary to accept authorized wagers; past 21 due statutory obligations to New York licensed or franchised racing 22 corporations or associations; past due contractual obligations due to 23 other racing associations or organizations for the costs of acquiring a 24 simulcast signal; past due statutory payment obligations due to the New 25 York state thoroughbred breeding and development fund corporation, agri- 26 culture and New York state horse breeding development fund, and the 27 Harry M. Zweig memorial fund for equine research; and past due obli- 28 gations due the state. 29 e. Notwithstanding any other provision of law or regulation to the 30 contrary, from April first, two thousand twenty-five to March thirty- 31 first, two thousand twenty-six, one million dollars in the Capital off- 32 track betting corporation's capital acquisition fund established pursu- 33 ant to this section shall be available to such off-track betting 34 corporation for the purposes of expenditures necessary to accept author- 35 ized wagers; past due statutory obligations to New York licensed or 36 franchised racing corporations or associations; past due contractual 37 obligations due to other racing associations or organizations for the 38 cost of acquiring a simulcast signal; past due statutory payment obli- 39 gations due to the New York state thoroughbred breeding and development 40 fund corporation, agriculture and New York state horse breeding develop- 41 ment fund, and the Harry M. Zweig memorial fund for equine research; and 42 past due obligations due the state. 43 f. Prior to a corporation being able to utilize the funds authorized 44 by paragraph c [ ] , d or e of this subdivision, the corporation must 45 attest that the surcharge monies from section five hundred thirty-two of 46 this chapter are being held separate and apart from any amounts other- 47 wise authorized to be retained from pari-mutuel pools and all surcharge 48 monies have been and will continue to be paid to the localities as 49 prescribed in law. Once this condition is satisfied, the corporation 50 must submit an expenditure plan to the gaming commission for review. 51 Such plan shall include the corporation's outstanding liabilities, 52 projected revenue for the upcoming year, a detailed explanation of how 53 the funds will be used, and any other information necessary to detail 54 such plan as determined by the commission. Upon review, the commission 55 shall make a determination as to whether the requirements of this para- 56 graph have been satisfied and notify the corporation of expenditure plan S. 3009--C 118 A. 3009--C

1 approval. In the event the commission determines the requirements of 2 this paragraph have not been satisfied, the commission shall notify the 3 corporation of all deficiencies necessary for approval. As a condition 4 of such expenditure plan approval, the corporation shall provide a 5 report to the commission no later than the last day of the calendar year 6 for which the funds are requested, which shall include an accounting of 7 the use of such funds. At such time, the commission may cause an inde- 8 pendent audit to be conducted of the corporation's books to ensure that 9 all moneys were spent as indicated in such approved plan. The audit 10 shall be paid for from money in the fund established by this section. If 11 the audit determines that a corporation used the money authorized under 12 this section for a purpose other than one listed in their expenditure 13 plan, then the corporation shall reimburse the capital acquisition fund 14 for the unauthorized amount. 15 § 2. This act shall take effect immediately.

16 PART II

17 Section 1. Section 703 of the racing, pari-mutuel wagering and breed- 18 ing law is amended by adding a new subdivision 1-a to read as follows: 19 1-a. All amounts necessary to conduct the research project specified 20 in subdivision seven of section seven hundred four of this article shall 21 be appropriated or transferred to the fund from the general fund of the 22 state treasury. Such funds shall be used for the purposes contained in 23 the agreement established pursuant to subdivision seven of section seven 24 hundred four of this article, provided that such amount shall not exceed 25 what is necessary to cover all expenses as contained in such agreement. 26 § 2. Section 704 of the racing, pari-mutuel wagering and breeding law 27 is amended by adding a new subdivision 7 to read as follows: 28 7. (a) The moneys appropriated or transferred to the fund from the 29 general fund of the state treasury pursuant to subdivision one-a of 30 section seven hundred three of this article shall be expended for a 31 three-year research project conducted pursuant to an agreement between 32 the dean of the Cornell University College of Veterinary Medicine and 33 the executive director of the commission. Such agreement shall, at a 34 minimum, require the following: 35 (i) proposed research to identify the incident of fetlock fractures 36 and pre-fracture pathology in thoroughbred racehorses, with and without 37 lameness; 38 (ii) proposed research to determine the sensitivity and specificity of 39 standing computed tomography, positron emission tomography, and magnetic 40 resonance imaging of thoroughbred racehorses compared to that of digital 41 radiographs; 42 (iii) use of photo-counting computed tomography and high field magnet- 43 ic resonance imaging to further define early bone pathology in thorough- 44 bred racehorses that suffer fatal fractures of the fetlock joint, to 45 further characterize blood biomarker findings in healthy and clinically 46 lame horses in a large population of thoroughbred racehorses; 47 (iv) attempted refinement of a risk factor index for fatal musculosk- 48 eletal injury for thoroughbred racing based on epidemiological findings, 49 preliminary scanning technology, clinical examination, and advance imag- 50 ing; and 51 (v) that an annual update shall be provided to the governor, temporary 52 president of the senate, and speaker of the assembly regarding the 53 progression of the research project. Such annual update to the governor, 54 temporary president of the senate, and speaker of the assembly shall be S. 3009--C 119 A. 3009--C

1 due no later than December first each year. The final report outlined in 2 paragraph (c) of this subdivision shall satisfy the annual report 3 requirement outlined in this subparagraph for the last year of the 4 study. 5 (b) The moneys appropriated or transferred to the fund from the gener- 6 al fund of the state treasury pursuant to subdivision one-a of section 7 seven hundred three of this article may be used to purchase equipment 8 and fund staffing needs necessary to carry out the research tasks speci- 9 fied in paragraph (a) of this subdivision. 10 (c) A final report that describes the results of the research project 11 shall be provided to the governor, the temporary president of the 12 senate, the speaker of the assembly, the commission, the franchised 13 corporation, and any entity licensed pursuant to article two of this 14 chapter. Such final report shall include, at a minimum: 15 (i) an accounting of all expenditures related to the research project 16 outlined in this subdivision, including expenditures for equipment, 17 supplies, personnel, operations, and administration; 18 (ii) a description of the procedures for selecting horse participants 19 in the research project outlined in this subdivision, including criteria 20 for selection and any screening or eligibility requirements; and 21 (iii) a summary of findings gathered from the research project 22 outlined in this subdivision, including an analysis of risk factors 23 contributing to racehorse injuries and conclusions drawn regarding safe- 24 ty protocols. 25 (d) The researcher may also make recommendations for changes to any 26 existing rules or regulations that the researcher may determine would be 27 helpful toward maintaining the health of the equine athlete. 28 (e) To the extent practicable, screenings and advanced imaging 29 services conducted pursuant to this agreement may be conducted near 30 racetracks at both Belmont and Saratoga. 31 (f) (i) Screenings and advanced imaging services of horses enrolled in 32 the research project shall be offered to horsemen free of charge. 33 (ii) Subject to availability, Cornell Ruffian may provide screenings 34 and imaging services for New York horses that are not enrolled in the 35 research project. Cornell Ruffian may only charge such owners and train- 36 ers its actual costs for any screening or imaging service provided to 37 such non-enrolled horse. 38 (iii) Cornell Ruffian shall have no responsibility to interpret or 39 analyze the results of any scan or advanced image provided to an owner 40 or trainer of a non-enrolled horse. 41 (iv) For purposes of this paragraph, a New York horse is a horse that 42 has been stabled in New York for four of the six months immediately 43 preceding the date of the screening or advance imaging. 44 (v) The costs charged associated with screenings and advanced images 45 authorized pursuant to this subparagraph shall be included in the annual 46 update outlined in subparagraph (v) of paragraph (a) of this subdivi- 47 sion. 48 (g) Any screening and imaging equipment purchased pursuant to this 49 subdivision shall be owned by the Cornell University College of Veteri- 50 nary Medicine. 51 § 3. Section 208 of the racing, pari-mutuel wagering and breeding law 52 is amended by adding a new subdivision 10 to read as follows: 53 10. It is incumbent upon the franchised corporation to ensure the 54 health and safety of its equine participants. To accomplish that goal, 55 the franchised corporation shall, by September first, two thousand twen- 56 ty-five, make a one-time contribution of two million dollars to the S. 3009--C 120 A. 3009--C

1 Harry M. Zweig memorial fund, established under section seven hundred 2 one of this chapter, for the sole purpose of off-setting the cost of 3 purchasing screening and imaging equipment for the research project as 4 specified in subdivision seven of section seven hundred four of this 5 chapter. The Harry M. Zweig memorial fund shall hold such money in an 6 escrow account until such time as it is necessary to purchase the equip- 7 ment required to conduct the research. The money in the escrow account 8 shall not be used for any purposes other than purchasing equipment to be 9 used for such research. 10 § 4. This act shall take effect immediately, and shall expire and be 11 deemed repealed September 1, 2028.

12 PART JJ

13 Section 1. Subdivision (e) of section 42 of the tax law, as amended by 14 section 1 of subpart B of part B of chapter 59 of the laws of 2022, is 15 amended to read as follows: 16 (e) For taxable years beginning on or after January first, two thou- 17 sand seventeen and before January first, two thousand eighteen, the 18 amount of the credit allowed under this section shall be equal to the 19 product of the total number of eligible farm employees and two hundred 20 fifty dollars. For taxable years beginning on or after January first, 21 two thousand eighteen and before January first, two thousand nineteen, 22 the amount of the credit allowed under this section shall be equal to 23 the product of the total number of eligible farm employees and three 24 hundred dollars. For taxable years beginning on or after January first, 25 two thousand nineteen and before January first, two thousand twenty, the 26 amount of the credit allowed under this section shall be equal to the 27 product of the total number of eligible farm employees and five hundred 28 dollars. For taxable years beginning on or after January first, two 29 thousand twenty and before January first, two thousand twenty-one, the 30 amount of the credit allowed under this section shall be equal to the 31 product of the total number of eligible farm employees and four hundred 32 dollars. For taxable years beginning on or after January first, two 33 thousand twenty-one and before January first, two thousand twenty-two, 34 the amount of the credit allowed under this section shall be equal to 35 the product of the total number of eligible farm employees and six 36 hundred dollars. For taxable years beginning on or after January first, 37 two thousand twenty-two and before January first, two thousand [ 38 ] twenty-nine , the amount of the credit allowed under this section 39 shall be equal to the product of the total number of eligible farm 40 employees and twelve hundred dollars. 41 § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending 42 the tax law relating to creating a farm workforce retention credit, as 43 amended by section 2 of subpart B of part B of chapter 59 of the laws of 44 2022, is amended to read as follows: 45 § 5. This act shall take effect immediately and shall apply only to 46 taxable years beginning on or after January 1, 2017 and before January 47 1, [ ] 2029 . 48 § 3. This act shall take effect immediately.

49 PART KK

50 Section 1. The agriculture and markets law is amended by adding a new 51 article 25-C to read as follows: S. 3009--C 121 A. 3009--C

1 Article 25-C 2 FARM EMPLOYER OVERTIME CREDIT PROGRAM 3 Section 333. Short title. 4 334. Definitions. 5 335. Tax credit; overtime expense certification. 6 § 333. Short title. This article shall be known and may be cited as 7 the "farm employer overtime credit program." 8 § 334. Definitions. For the purposes of this article: 9 1. "Commissioner" shall mean the commissioner of agriculture and 10 markets. 11 2. "Department" shall mean the department of agriculture and markets. 12 3. "Eligible farm employee" shall mean an individual who meets the 13 definition of a "farm laborer" under section two of the labor law who is 14 employed in New York state by (a) a farm employer or (b) a qualified 15 professional employer organization. 16 4. "Eligible overtime" shall mean the aggregate number of hours of 17 work performed during the calendar year by an eligible farm employee 18 that in any calendar week exceeds the overtime work threshold set by the 19 commissioner of labor pursuant to the recommendation of the farm labor- 20 ers wage board, provided that work performed in such calendar week in 21 excess of sixty hours shall not be included. 22 5. "Farm employer" shall mean a corporation (including a New York S 23 corporation), a sole proprietorship, a limited liability company or a 24 partnership whose principal business is farming activity. 25 6. "Farming activity" shall include, but not be limited to, the culti- 26 vation of crops, operation, or management of a farm for gain or profit, 27 including the operation or management of livestock, dairy, poultry, 28 aquaculture, fruit, fur-bearing animal, field crop, horticultural 29 specialty, and vegetable farms. 30 7. "Overtime expense" shall mean the product of (a) the eligible over- 31 time hours worked during the calendar year by the eligible farm employee 32 and (b) the overtime rate paid to the eligible farm employee less such 33 eligible farm employee's regular rate of pay. 34 8. "Qualified farm employer" shall mean a farm employer that: 35 (a) primarily engaged in farming activity during the calendar year; 36 (b) utilized eligible farm employees in its farming activity during 37 the calendar year; and 38 (c) directly, or indirectly through a qualified professional employer 39 organization, paid eligible overtime to eligible farm employees during 40 the calendar year. 41 9. "Qualified professional employer organization" shall mean an entity 42 who provides remuneration to or otherwise employs eligible farm employ- 43 ees on behalf of a farm employer. 44 § 335. Tax credit; overtime expense certification. 1. A qualified farm 45 employer who is issued an overtime expense certificate by the department 46 may be allowed a credit pursuant to section forty-two-a of the tax law 47 equal to one hundred eighteen percent of the aggregate amount of over- 48 time expenses certified by the department pursuant to this section. A 49 qualified farm employer who is issued a preliminary overtime expense 50 certificate may be eligible to receive an advance payment of such tax 51 credit pursuant to subdivision (e) of section forty-two-a of the tax 52 law. 53 2. Certificate application and approval process. A farm employer must 54 submit a complete application as prescribed by the commissioner by the 55 first of February after the end of the calendar year. As part of the 56 application, each farm employer shall provide evidence in the form and S. 3009--C 122 A. 3009--C

1 manner prescribed by the commissioner sufficient to establish that it is 2 a qualified farm employer and to determine the overtime expense per 3 eligible farm employee paid by such qualified farm employer during the 4 preceding calendar year. If, after reviewing a farm employer's completed 5 application, the department determines that the farm employer is a qual- 6 ified farm employer, the department may issue to such qualified farm 7 employer an overtime expense certificate for each year that the eligi- 8 bility criteria are satisfied that specifies (a) the total number of 9 eligible farm employees who were paid eligible overtime by the qualified 10 farm employer; (b) the aggregate amount of overtime expense paid by the 11 qualified farm employer; and (c) the calendar year in which such over- 12 time expense was paid. 13 3. Preliminary overtime expense certificate. A farm employer who 14 intends to request an advance payment of the tax credit pursuant to 15 subdivision (e) of section forty-two-a of the tax law must submit a 16 complete application as prescribed by the commissioner by September 17 thirtieth of the calendar year. As part of the application, each farm 18 employer shall provide evidence in the form and manner prescribed by the 19 commissioner sufficient to establish that it is a qualified farm employ- 20 er and to determine the overtime expense per eligible farm employee paid 21 by such qualified farm employer from January first through July thirty- 22 first of such calendar year. If, after reviewing a farm employer's 23 completed application, the department determines that the farm employer 24 is a qualified farm employer, the department may issue to such qualified 25 farm employer a preliminary overtime expense certificate that specifies 26 (a) the total number of eligible farm employees who were paid eligible 27 overtime by the qualified farm employer from January first through July 28 thirty-first of such calendar year; and (b) the aggregate amount of 29 overtime expense paid by the qualified farm employer during such period. 30 § 2. Section 42-a of the tax law, as added by section 2 of subpart C 31 of part B of chapter 59 of the laws of 2022, is amended to read as 32 follows: 33 § 42-a. Farm employer overtime credit. (a) Notwithstanding subdivision 34 (f) of section forty-two of this article, a taxpayer that is [ ] an 35 eligible farm employer or an owner of [ ] an eligible farm employer 36 shall be eligible for a credit against the tax imposed under article 37 nine-A or twenty-two of this chapter, pursuant to the provisions refer- 38 enced in subdivision [ ] (h) of this section. 39 (b) [ 40 41 42 ] For purposes of this section, the term "eligible [ ] farm 43 employer " means a taxpayer who received an overtime expense certificate 44 pursuant to section three hundred thirty-five of the agriculture and 45 markets law and whose federal gross income from farming as defined in 46 subsection (n) of section six hundred six of this chapter for the taxa- 47 ble year is at least two-thirds of excess federal gross income. Excess 48 federal gross income means the amount of federal gross income from all 49 sources for the taxable year in excess of thirty thousand dollars. For 50 purposes of this section, payments from the state's farmland protection 51 program, administered by the department of agriculture and markets, 52 shall be included as federal gross income from farming for otherwise 53 eligible farmers. 54 [ 55 S. 3009--C 123 A. 3009--C

1 2 3 4 5 6 7 8 9 ] (c) Special rules. If more than fifty percent of such eligible 10 [ ] farm employer's federal gross income from farming is from the 11 sale of wine from a licensed farm winery as provided for in article six 12 of the alcoholic beverage control law, or from the sale of cider from a 13 licensed farm cidery as provided for in section fifty-eight-c of the 14 alcoholic beverage control law, then an eligible farm employee of such 15 eligible farmer shall be included for purposes of calculating the amount 16 of credit allowed under this section only if such eligible farm employee 17 is employed by such eligible farmer on qualified agricultural property 18 as defined in paragraph four of subsection (n) of section six hundred 19 six of this chapter. 20 [ ] (d) The amount of the credit allowed under this section shall be 21 equal to one hundred eighteen percent of the aggregate amount of [ 22 23 24 25 26 27 ] overtime expense paid by the quali- 28 fied farm employer as certified by the department of agriculture and 29 markets pursuant to section three hundred thirty-five of the agriculture 30 and markets law . 31 [ ] (e) A taxpayer who received a preliminary overtime 32 expense certificate pursuant to section three hundred thirty-five of the 33 agriculture and markets law shall have the option to request an advance 34 payment of the portion of the amount of tax credit they are allowed 35 under this section [ ] equal to one 36 hundred eighteen percent of aggregate amount of overtime expense that 37 the farm employer paid from January first through July thirty-first , as 38 certified by the department of agriculture and markets pursuant to 39 section three hundred thirty-five of the agriculture and markets law . 40 [ 41 42 43 44 45 46 47 48 49 50 51 ] A taxpayer must submit [ ] an advanced payment request to the 52 department in the manner prescribed by the commissioner after it has 53 been issued a preliminary overtime expense certificate [ ] 54 by the department of agriculture and markets pursuant to [ 55 ] article twenty-five-C of the agriculture and 56 markets law (or such certificate has been issued to a partnership, S. 3009--C 124 A. 3009--C

1 limited liability company or subchapter S corporation in which it is a 2 partner, member or shareholder, respectively, that is a farm employer), 3 but such request must be submitted no later than November first of the 4 taxable year for which the credit is being claimed. For those taxpayers 5 who have requested an advance payment and for whom the commissioner has 6 determined to be eligible for this credit, the commissioner shall 7 advance a payment of the portion of the amount of tax credit allowed to 8 the taxpayer. The taxpayer will claim on the taxpayers' return for the 9 taxable year the portion of the amount of tax credit allowed for eligi- 10 ble overtime paid by the farm employer from August first through Decem- 11 ber thirty-first. The taxpayer must properly reconcile the advance 12 payment of tax credit allowed under this subdivision on the taxpayer's 13 return. 14 [ ] (f) If a taxpayer that has received an advance payment is not an 15 eligible [ ] farm employer or an owner of an eligible farm employer 16 for the taxable year for which it received an advance payment, the 17 taxpayer shall be required to add back as tax the amount of advance 18 payment the taxpayer received during the taxable year. 19 [ ] (g) Notwithstanding any provision of this chapter, employees of 20 the department of agriculture and markets and the department shall be 21 allowed to share and exchange: 22 (i) information derived from tax returns or reports that is relevant 23 to a taxpayer's eligibility for the credit allowed by this section; 24 (ii) information regarding the credit applied for, allowed or claimed 25 pursuant to this section and regarding taxpayers that are applying for 26 the credit or that are claiming the credit; and 27 (iii) information collected by the department of agriculture and 28 markets and exchanged between the department of agriculture and markets 29 and the department pursuant to this section shall not be subject to 30 disclosure or inspection under the state's freedom of information law. 31 [ ] (h) Cross references: For application of the credit provided in 32 this section, see the following provisions of this chapter: 33 (1) Article 9-A: Section 210-B, subdivision 58. 34 (2) Article 22: Section 606, subsection (nnn). 35 § 3. Notwithstanding any provision of law to the contrary, a farm 36 employer shall be allowed a credit, pursuant to section forty-two-a of 37 the tax law, for the eligible overtime indirectly paid to eligible farm 38 employees through a professional employer organization during the two 39 thousand twenty-four and/or two thousand twenty-five calendar years as 40 if such remuneration was paid directly by the farm employer to the 41 eligible farm employees. A farm employer must apply for and receive 42 certification by the department of agriculture and markets of the aggre- 43 gate amount of eligible overtime indirectly paid by the farm employer to 44 eligible farm employees through a professional employer organization 45 during the two thousand twenty-four and two thousand twenty-five calen- 46 dar years. A farm employer shall have the option to request an advance 47 payment of the credit, pursuant to subdivision (h) of section 48 forty-two-a of the tax law, for the eligible overtime indirectly paid by 49 the farm employer during the period from January first, two thousand 50 twenty-four, through July thirty-first, two thousand twenty-five, in 51 which case the farm employer must apply for and receive preliminary 52 certification by the department of agriculture and markets of the eligi- 53 ble overtime indirectly paid by the farm employer to eligible farm 54 employees during such period. The farm employer may request an advance 55 credit from the commissioner of taxation and finance in the form and 56 manner prescribed by such commissioner; provided, however, if a taxpayer S. 3009--C 125 A. 3009--C

1 that has received an advance payment is not an eligible farmer for the 2 taxable year when the indirect overtime expense was incurred, the 3 taxpayer shall be required to add back as tax the amount of advance 4 payment the taxpayer received. 5 § 4. This act shall take effect immediately; provided, however, that 6 sections one and two of this act shall apply to taxable years beginning 7 on or after January 1, 2026; and provided further that section three of 8 this act shall apply to taxable years beginning on or after January 1, 9 2025, and before January 1, 2026.

10 PART LL

11 Section 1. Section 4 of part H of chapter 59 of the laws of 2024 12 amending the tax law relating to the filing of amended returns under 13 article 28 thereof, is amended to read as follows: 14 § 4. This act shall take effect immediately, provided, however, the 15 amendments made by section one of this act shall apply to returns filed 16 or amended [ ] on and after December 1, 2024. 17 § 2. This act shall take effect immediately and shall be deemed to 18 have been in full force and effect on and after April 20, 2024.

19 PART MM

20 Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of 21 section 1612 of the tax law is amended by adding a new clause (E) to 22 read as follows: 23 (E) notwithstanding clause (B) of this subparagraph, beginning on June 24 first, two thousand twenty-five, when the vendor track is located in the 25 county of Genesee and within forty miles of a Native American class III 26 gaming facility as defined in 25 U.S.C. §2703(8), at a rate of fifty-six 27 percent of the total revenue wagered at the vendor track after payout 28 for prizes pursuant to this chapter; provided, however, that the follow- 29 ing additional provisions shall apply to such vendor track: 30 (1) From the vendor fee amount equivalent to fifty-six percent of the 31 total revenue wagered at the vendor track after payout for prizes pursu- 32 ant to this clause, a portion equivalent to five percent of the total 33 revenue wagered at the vendor track after payout for prizes shall be 34 defined as and hereinafter be referred to as the "additional vendor 35 fee". 36 (2) Such additional vendor fee shall be accounted for separately by 37 the vendor track and shall be used exclusively for the following 38 purposes, in proportions determined annually by such vendor track in 39 accordance with a plan submitted to the gaming commission pursuant to 40 subclause four of this clause: 41 (A) reducing the costs paid by non-executive and non-managerial 42 employees of such vendor track for healthcare coverage offered by such 43 vendor track; 44 (B) increasing salaries, hourly wages, or benefits paid to non-execu- 45 tive and non-managerial employees of such vendor track, or funding 46 increases in the number of full-time equivalent non-executive and non- 47 managerial employees; and 48 (C) supplementing distributions payable to participating counties or 49 municipalities as required under existing law. 50 (3) Additional vendor fee revenue utilized pursuant to this clause 51 shall not be included in any calculation used to determine amounts paya- 52 ble pursuant to subclause two of this clause or payments required under S. 3009--C 126 A. 3009--C

1 subclause two of this clause to the appropriate breeding fund estab- 2 lished pursuant to article three of the racing, pari-mutuel wagering and 3 breeding law. 4 (4) (A) Such vendor track shall annually submit a plan to the commis- 5 sion, no later than sixty days prior to the beginning of its fiscal 6 year, detailing the allocation and use of the additional vendor fee 7 revenue among the purposes specified in subclause two of this clause for 8 the upcoming fiscal year. Such plan shall include specific projections 9 for cost reductions in employee healthcare, increases in employee 10 compensation specifying the job titles or categories benefiting there- 11 from, and supplemental amounts for local distributions. 12 (B) Such vendor track shall submit a plan to the commission, no later 13 than sixty days after the effective date of this clause, detailing the 14 allocation and use of such additional vendor fee among the purposes 15 specified in subclause two of this clause for the remainder of fiscal 16 year two thousand twenty-five. Such plan shall include specific projec- 17 tions for cost reductions in employee healthcare, increases in employee 18 compensation specifying the job titles or categories benefiting there- 19 from, and projections of supplemental amounts of local distributions. 20 Such plan shall also detail allocations already made between this act 21 going into effect and the date such plan has been submitted to the 22 commission. 23 (5) Such vendor track shall also submit an annual report to the gaming 24 commission, the governor, the temporary president of the senate, and the 25 speaker of the assembly, no later than ninety days after the end of each 26 fiscal year, detailing the actual allocation and use of such additional 27 vendor fee during the preceding fiscal year. Such report shall specify 28 the amounts applied to each purpose outlined in subclause two of this 29 clause, provide data demonstrating the impact on employee healthcare 30 costs and compensation including the specific job titles or categories 31 that received increased compensation pursuant to item (B) of subclause 32 two of this clause, detail the supplemental distributions made to local- 33 ities, compare actual use to the plan, and provide justification for any 34 significant variances. 35 (6) (A) The additional vendor fee shall only be used to supplement 36 amounts previously allocated or appropriated by the corporation for the 37 purposes stated in subclause two of this clause and may not be used to 38 replace or backfill such amounts. 39 (B) The gaming commission shall have the authority to audit the use of 40 such additional vendor fee by such vendor track. If the gaming commis- 41 sion determines, after notice and an opportunity for a hearing, that 42 such funds have been used for purposes other than those authorized in 43 subclause two of this clause or inconsistent with the plan, including a 44 failure to benefit non-executive and non-managerial employees as 45 required by item (B) of subclause two of this clause, the gaming 46 commission may impose monetary penalties pursuant to its authority under 47 the racing, pari-mutuel wagering and breeding law and may require that 48 an amount equivalent to any funds used in a manner inconsistent with the 49 provisions of this clause shall be expended for authorized purposes 50 pursuant to an amended plan. 51 (7) Nothing contained in this clause shall affect any existing collec- 52 tive bargaining agreement or the obligation of such vendor track to 53 negotiate terms and conditions of employment with any certified employee 54 representative. 55 § 2. This act shall take effect immediately and shall expire and be 56 deemed repealed April 1, 2030. S. 3009--C 127 A. 3009--C

1 PART NN

2 Section 1. Subparagraph (ii) of paragraph (a) of subdivision 1 of 3 section 207 of the racing, pari-mutuel wagering and breeding law, as 4 amended by section 1 of part NN of chapter 59 of the laws of 2017, is 5 amended and two new subparagraphs (iv) and (v) are added to read as 6 follows: 7 (ii) The term of voting membership on the New York racing association 8 board shall be three years. Individual appointees shall be limited to 9 serving as a voting member the lesser of three terms or nine years. 10 Notwithstanding the foregoing, the initial term of one member appointed 11 by each of the governor, temporary president of the senate, and speaker 12 of the assembly, the member appointed by the New York thoroughbred 13 horsemen's association, and the member appointed by the New York 14 Thoroughbred Breeders, Inc. shall expire March thirty-first, two thou- 15 sand eighteen; the initial term of the remaining members appointed by 16 each of the governor, temporary president of the senate, and speaker of 17 the assembly and two members appointed by the New York racing associ- 18 ation reorganization board shall expire on March thirty-first, two thou- 19 sand nineteen; [ 20 ] the initial term of three members appointed by the New York 21 racing association reorganization board shall expire on March thirty- 22 first, two thousand twenty-one, and the initial term of three members 23 appointed by the New York racing association reorganization board shall 24 expire on March thirty-first, two thousand twenty-three. The eight 25 initial members appointed by the New York racing association reorganiza- 26 tion board shall hold appointment as a voting member for the greater of 27 three terms or nine years . 28 (iv) Beginning January first, two thousand twenty-six, one member 29 appointed by the governor, one member appointed by the temporary presi- 30 dent of the senate, one member appointed by the speaker of the assembly, 31 and four members appointed by the executive committee of the New York 32 racing association board of directors shall satisfy at least one of the 33 following requirements at the time of appointment or reappointment: (1) 34 over the three years prior, owned or trained horses with a cumulative 35 average of fifteen starts at New York race tracks per year, (2) be a 36 breeder of record registered with the thoroughbred breeding and develop- 37 ment fund, (3) be a managing partner in a New York state-based ownership 38 syndicate licensed with the commission, or (4) have a cogent interest in 39 the racing and breeding industry in the state. The provisions of this 40 subparagraph shall not impact any members serving as of January first, 41 two thousand twenty-six. 42 (v) Beginning January first, two thousand twenty-six, all non-publicly 43 appointed members must hold a license pursuant to section two hundred 44 twenty of this article. 45 § 2. Subdivision 1 of section 220 of the racing, pari-mutuel wagering 46 and breeding law, as amended by section 1 of part S of chapter 59 of the 47 laws of 2024, is amended to read as follows: 48 1. For the purpose of maintaining a proper control over race meetings 49 conducted pursuant to sections two hundred five and two hundred six of 50 this article, the commission shall license owners, which term shall be 51 deemed to include part-owners and lessees, trainers, assistant trainers 52 and jockeys, jockey agents, stable employees, non-publicly appointed 53 members of the board of a franchised corporation, and such other persons 54 as the commission may by rule prescribe at running races and at steeple- 55 chases, provided, however, that no such license shall be required for S. 3009--C 128 A. 3009--C

1 seasonal employees hired solely to work for no longer than six weeks 2 during the summer meet at Saratoga racetrack, and any such other times 3 as race dates historically assigned to Belmont Park are conducted at the 4 Saratoga racetrack in two thousand twenty-four and two thousand twenty- 5 five as approved in writing by the commission. In the event that a 6 proposed licensee is other than a natural person, the commission shall 7 require by regulation disclosure of the names and addresses of all 8 owners of an interest in such entity. The commission may retain, employ 9 or appoint such officers, employees and agents, as it may deem necessary 10 to receive, examine and make recommendations, for the consideration of 11 the commission, in respect of applications for such licenses; prescribe 12 their duties in connection therewith, and fix their compensation there- 13 for within the limitations prescribed by law. Each applicant for a 14 license shall pay to the commission an annual license fee as follows: 15 owner's license, if a renewal, fifty dollars, and if an original appli- 16 cation, one hundred dollars; trainer's license, thirty dollars; assist- 17 ant trainer's license, thirty dollars; jockey's license, fifty dollars; 18 jockey agent's license, twenty dollars; and stable employee's license, 19 five dollars. Each applicant may apply for a two-year or three-year 20 license by payment to the commission of the appropriate multiple of the 21 annual fee. The commission may by rule fix the license fees to be paid 22 by other persons required to be licensed by the rules of the commission, 23 not to exceed thirty dollars per category. The application for the 24 license shall be in writing in such form as the commission may 25 prescribe, and contain such information as the commission may require. 26 The commission shall henceforth cause all applicants for licenses to be 27 photographed and fingerprinted and may issue identification cards to 28 licensees. Such fingerprints shall be submitted to the division of crim- 29 inal justice services for a state criminal history record check, as 30 defined in subdivision one of section three thousand thirty-five of the 31 education law, and may be submitted to the federal bureau of investi- 32 gation for a national criminal history record check. A fee equal to the 33 actual cost of issuance shall be charged for the initial issuance of 34 such identification cards. Each such license unless revoked for cause 35 shall be for the period of no more than one, two or three years, deter- 36 mined by rule of the commission, expiring on the applicant's birth date. 37 Licenses of non-publicly appointed members of the board of a franchised 38 corporation shall be issued without fee and remain in effect for the 39 duration of their board service. Licenses current on the effective date 40 of this provision shall not be reduced in duration by this provision. An 41 applicant who applies for a license that, if issued, would take effect 42 less than six months prior to the applicant's birth date may, by payment 43 of a fifty percent higher fee, receive a license which shall not expire 44 until the applicant's second succeeding birth date. All receipts of the 45 commission derived from the operation of this section shall be paid by 46 it into the state treasury on or before the tenth day of each month. All 47 officials connected with the actual conduct of racing shall be subject 48 to approval by the commission. 49 § 3. Subdivision 1 of section 220 of the racing, pari-mutuel wagering 50 and breeding law, as amended by section 243 of the laws of 2020, is 51 amended to read as follows: 52 1. For the purpose of maintaining a proper control over race meetings 53 conducted pursuant to sections two hundred five and two hundred six of 54 this article, the commission shall license owners, which term shall be 55 deemed to include part-owners and lessees, trainers, assistant trainers 56 and jockeys, jockey agents, stable employees, non-publicly appointed S. 3009--C 129 A. 3009--C

1 members of the board of a franchised corporation, and such other persons 2 as the commission may by rule prescribe at running races and at steeple- 3 chases, provided, however, that no such license shall be required for 4 seasonal employees hired solely to work for no longer than six weeks 5 during the summer meet at Saratoga racetrack. In the event that a 6 proposed licensee is other than a natural person, the commission shall 7 require by regulation disclosure of the names and addresses of all 8 owners of an interest in such entity. The commission may retain, employ 9 or appoint such officers, employees and agents, as it may deem necessary 10 to receive, examine and make recommendations, for the consideration of 11 the commission, in respect of applications for such licenses; prescribe 12 their duties in connection therewith, and fix their compensation there- 13 for within the limitations prescribed by law. Each applicant for a 14 license shall pay to the commission an annual license fee as follows: 15 owner's license, if a renewal, fifty dollars, and if an original appli- 16 cation, one hundred dollars; trainer's license, thirty dollars; assist- 17 ant trainer's license, thirty dollars; jockey's license, fifty dollars; 18 jockey agent's license, twenty dollars; and stable employee's license, 19 five dollars. Each applicant may apply for a two-year or three-year 20 license by payment to the commission of the appropriate multiple of the 21 annual fee. The commission may by rule fix the license fees to be paid 22 by other persons required to be licensed by the rules of the commission, 23 not to exceed thirty dollars per category. The application for the 24 license shall be in writing in such form as the commission may 25 prescribe, and contain such information as the commission may require. 26 The commission shall henceforth cause all applicants for licenses to be 27 photographed and fingerprinted and may issue identification cards to 28 licensees. Such fingerprints shall be submitted to the division of crim- 29 inal justice services for a state criminal history record check, as 30 defined in subdivision one of section three thousand thirty-five of the 31 education law, and may be submitted to the federal bureau of investi- 32 gation for a national criminal history record check. A fee equal to the 33 actual cost of issuance shall be charged for the initial issuance of 34 such identification cards. Each such license unless revoked for cause 35 shall be for the period of no more than one, two or three years, deter- 36 mined by rule of the commission, expiring on the applicant's birth date. 37 Licenses of non-publicly appointed members of the board of a franchised 38 corporation shall be issued without fee and remain in effect for the 39 duration of their board service. Licenses current on the effective date 40 of this provision shall not be reduced in duration by this provision. An 41 applicant who applies for a license that, if issued, would take effect 42 less than six months prior to the applicant's birth date may, by payment 43 of a fifty percent higher fee, receive a license which shall not expire 44 until the applicant's second succeeding birth date. All receipts of the 45 commission derived from the operation of this section shall be paid by 46 it into the state treasury on or before the tenth day of each month. All 47 officials connected with the actual conduct of racing shall be subject 48 to approval by the commission. 49 § 4. The New York racing association shall immediately identify which 50 members are designated to which specific seats on the board. 51 § 5. This act shall take effect immediately and shall apply to all 52 initial appointments by the New York racing association reorganization 53 board; provided, however, that if section 1 of part NN of chapter 59 of 54 the laws of 2017 shall not have taken effect on or before such date then 55 section one of this act shall take effect on the same date and in the 56 same manner as such section of such part of such chapter of the laws of S. 3009--C 130 A. 3009--C

1 2017 takes effect; and provided, further, that the amendments to subdi- 2 vision 1 of section 220 of the racing, pari-mutuel wagering and breeding 3 law made by section two of this act shall be subject to the expiration 4 and reversion of such subdivision pursuant to section 2 of part S of 5 chapter 59 of the laws of 2024, as amended, when upon such date the 6 provisions of section three of this act shall take effect.

7 PART OO

8 Section 1. Subdivision 8 of section 1367 of the racing, pari-mutuel 9 wagering and breeding law, as added by section 3 of part Y of chapter 59 10 of the laws of 2021, is amended to read as follows: 11 8. Notwithstanding section thirteen hundred fifty-one of this article, 12 mobile sports wagering gross gaming revenue and tax revenue shall be 13 excluded from sports wagering gross gaming revenue and tax revenue. 14 Mobile sports wagering tax revenue shall be separately maintained and 15 returned to the state for deposit into the state lottery fund for educa- 16 tion aid except as otherwise provided in this subdivision. Any interest 17 and penalties imposed by the commission relating to those taxes, all 18 penalties levied and collected by the commission, and the appropriate 19 funds, cash or prizes forfeited from sports wagering shall be deposited 20 into the state lottery fund for education. In [ 21 22 ] fiscal year two thousand 23 twenty-two , the commission shall pay into the commercial gaming fund one 24 percent of the state tax imposed on mobile sports wagering by this 25 section to be distributed for problem gambling education and treatment 26 purposes pursuant to paragraph a of subdivision four of section ninety- 27 seven-nnnn of the state finance law; provided however, that such amount 28 shall be equal to six million dollars for each fiscal year through 29 fiscal year two thousand twenty-six and twelve million dollars for each 30 fiscal year thereafter , provided that this amount may only be expended 31 pursuant to a plan approved by the director of the budget . In [ 32 33 ] fiscal 34 year two thousand twenty-two , the commission shall pay one percent of 35 the state tax imposed on mobile sports wagering by this section to the 36 general fund, a program to be administered by the office of children and 37 family services for a statewide youth sports activities and education 38 grant program for the purpose of providing annual awards to sports 39 programs for underserved youth under the age of eighteen years; provided 40 however, that such amount shall be equal to five million dollars for 41 each fiscal year thereafter. The commission shall require at least 42 monthly deposits by a platform provider of any payments pursuant to 43 subdivision seven of this section, at such times, under such conditions, 44 and in such depositories as shall be prescribed by the state comp- 45 troller. The deposits shall be deposited to the credit of the state 46 commercial gaming revenue fund. The commission shall require a monthly 47 report and reconciliation statement to be filed with it on or before the 48 tenth day of each month, with respect to gross revenues and deposits 49 received and made, respectively, during the preceding month. 50 § 2. This act shall take effect immediately.

51 PART PP S. 3009--C 131 A. 3009--C

1 Section 1. (a) Notwithstanding any provision of law, rule or regu- 2 lation to the contrary, any site for which (i) a brownfield cleanup 3 agreement with the department of environmental conservation was entered 4 into prior to June 23, 2008 with respect to a site located within the 5 Renaissance Commerce Park situate within the city of Lackawanna, Erie 6 county, (ii) which received a certificate of completion on or before 7 December 31, 2017, and (iii) that has not otherwise had property placed 8 in service upon such a site as of the effective date of this act, shall 9 be a qualified site for purposes of the brownfield redevelopment tax 10 credits available to such a site pursuant to section 21 of the tax law 11 as in effect for such a site as of the effective date of this act 12 provided that both the site preparation credit component and the on-site 13 groundwater remediation credit component shall be allowed for all eligi- 14 ble costs incurred on such a site prior to and within the tax year in 15 which qualified tangible property on such a site is placed in service, 16 and for a seven year period following the year such property is first 17 placed in service upon such a site, provided, such a date occurs prior 18 to the 2036 tax year, and the tangible property credit component shall 19 be allowed for all eligible costs incurred on such a site prior to and 20 within the tax year in which qualified tangible property on such a site 21 is placed in service, and for a ten year period (120 months) following 22 the year such property is first placed in service upon such a site, 23 provided such a date occurs prior to the 2036 tax year. 24 (b) In addition, any site for which (i) a brownfield cleanup agreement 25 with the department of environmental conservation was entered into prior 26 to June 23, 2008 with respect to a site located within the Renaissance 27 Commerce Park situate within the city of Lackawanna, Erie county, (ii) 28 which received a certificate of completion on or before December 31, 29 2017, and (iii) that has not otherwise had property placed in service 30 upon such a site as of the effective date of this act shall be eligible 31 to claim the tax credit for remediated brownfields available to such a 32 site pursuant to section 22 of the tax law as in effect for such a site 33 as of the effective date of this act provided the benefit period as 34 applicable thereto shall be deemed to be a ten-consecutive-tax-year 35 period beginning with the tax year in which qualified tangible property 36 on such a site is placed in service where said benefit period shall 37 begin no later than the 2036 tax year. 38 (c) Further, any site for which (i) a brownfield cleanup agreement 39 with the department of environmental conservation was entered into prior 40 to June 23, 2008 with respect to a site located within the Renaissance 41 Commerce Park situate within the city of Lackawanna, Erie county, (ii) 42 which received a certificate of completion on or before December 31, 43 2017, and (iii) that has not otherwise had property placed in service 44 upon such a site as of the effective date of this act, shall be a quali- 45 fied site for purposes of claiming the tax credit for remediated brown- 46 fields available to such a site pursuant to section 22 of the tax law, 47 provided that such developer as defined under section 22 of the tax law 48 has purchased or in any other way has been conveyed all or any portion 49 of such a site from any other party who or which has been issued a 50 certificate of completion with respect to such site and further provided 51 that such purchase or conveyance occurs no later than the 2036 tax year. 52 § 2. This act shall take effect immediately.

53 PART QQ S. 3009--C 132 A. 3009--C

1 Section 1. Section 171 of the tax law is amended by adding a new 2 subdivision fifteenth-a to read as follows: 3 Fifteenth-a. Notwithstanding any other provision of this chapter: (i) 4 the commissioner may grant the relief described in paragraph (iii) of 5 this subdivision to a limited partner of a limited partnership (but not 6 a partner of a limited liability partnership) or a member of a limited 7 liability company if such limited partner or member demonstrates to the 8 satisfaction of the commissioner that such limited partner's or member's 9 ownership interest and the percentage of their distributive share of the 10 profits and losses of such limited partnership or limited liability 11 company are each less than fifty percent, and such limited partner or 12 member was not under a duty to act, and did not act, for such limited 13 partnership or limited liability company in complying with any require- 14 ment of the taxes imposed under article twenty-eight of this chapter and 15 pursuant to the authority of article twenty-nine of this chapter. 16 Provided, however, the commissioner shall deny an application for relief 17 if: (A) such limited partner or member had a duty to act or has acted on 18 behalf of such limited partnership or limited liability company in 19 complying with any requirement of the taxes imposed under article twen- 20 ty-eight of this chapter and pursuant to the authority of article twen- 21 ty-nine of this chapter; (B) such limited partner or member has been 22 convicted of a crime provided in this chapter; (C) such limited partner 23 or member has a past-due tax liability, as such term is defined in 24 section one hundred seventy-one-v of this article; (D) approval of such 25 application would undermine compliance with the taxes or other imposi- 26 tions administered by the commissioner; or (E) approval of such applica- 27 tion would be adverse to the best interests of the state. 28 (ii) The relief described in paragraph (iii) of this subdivision shall 29 not be provided unless a limited partner or member submits a properly 30 completed application for relief on a form prescribed by the commission- 31 er. The information provided in such application must be true and 32 complete in all material respects. Providing materially false or fraudu- 33 lent information on such application shall disqualify such limited part- 34 ner or member for the relief described in paragraph (iii) of this subdi- 35 vision, shall void any agreement with the commissioner with respect to 36 such relief, and shall result in such limited partner or member bearing 37 strict liability for the total amount of tax, interest and penalty owed 38 by their respective limited partnership or limited liability company 39 under article twenty-eight of this chapter and pursuant to the authority 40 of article twenty-nine of this chapter. 41 (iii) If the commissioner approves such application, such limited 42 partner or member shall be liable for the percentage of the original 43 liability under article twenty-eight of this chapter and pursuant to the 44 authority of article twenty-nine of this chapter of their respective 45 limited partnership or limited liability company that reflects such 46 limited partner's or member's ownership interest or distributive share 47 of the profits and losses of such limited partnership or limited liabil- 48 ity company, whichever is higher. Such original liability shall include 49 any interest accrued thereon up to and including the date of payment by 50 such limited partner or member at the underpayment rate set by the 51 commissioner pursuant to section eleven hundred forty-two of this chap- 52 ter, and shall be reduced by the sum of any payments made by the limited 53 partnership or limited liability company. Provided, however, such limit- 54 ed partner or member shall not be liable for any penalty owed by such 55 limited partnership or limited liability company or any other partner or 56 member of such limited partnership or limited liability company; and S. 3009--C 133 A. 3009--C

1 provided further that the sum of the amounts owed by all of the persons 2 required to collect tax of a limited partnership or limited liability 3 company shall not exceed the total liability of such limited partnership 4 or limited liability company. 5 (iv) The denial of a limited partner's or member's application for 6 relief shall not be reviewable by the division of tax appeals, but may 7 be reviewed pursuant to article seventy-eight of the civil practice law 8 and rules by a proceeding commenced within four months of such denial in 9 the county where the commissioner has their principal office. 10 (v) Any payment made by a limited partner or member in excess of such 11 limited partner's or member's percentage of ownership or distributive 12 share, whichever is higher, shall be deemed a payment by the respective 13 limited partnership or limited liability company, and such limited part- 14 ner or member shall not be entitled to a refund of such amount. 15 § 2. Subdivision (a) of section 1133 of the tax law, as amended by 16 section 2 of part X of chapter 59 of the laws of 2018, is amended to 17 read as follows: 18 (a) [ ] Except as otherwise provided in [ 19 ] section eleven hundred thirty-seven of this part, 20 every person required to collect any tax imposed by this article shall 21 be personally liable for the tax imposed, collected or required to be 22 collected under this article. Any such person shall have the same right 23 in respect to collecting the tax from [ ] their customer or in respect 24 to nonpayment of the tax by the customer as if the tax were a part of 25 the purchase price of the property or service, amusement charge or rent, 26 as the case may be, and payable at the same time; provided, however, 27 that the tax commission shall be joined as a party in any action or 28 proceeding brought to collect the tax. 29 [ 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 S. 3009--C 134 A. 3009--C

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 ] 30 § 3. This act shall take effect immediately.

31 PART RR

32 Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 of subsection 33 (e) of section 606 of the tax law, subparagraph (A) and (F) as amended 34 by chapter 28 of the laws of 1987 and subparagraph (E) as amended by 35 chapter 105 of the laws of 2006, are amended to read as follows: 36 (A) [ ] (i) For taxable years beginning before January first, 37 two thousand twenty-five, "qualified taxpayer" means a resident individ- 38 ual of the state who has occupied the same residence for six months or 39 more of the taxable year, and is required or chooses to file a return 40 under this article. 41 (ii) For taxable years beginning on or after January first, two thou- 42 sand twenty-five, "qualified taxpayer" means a resident individual of 43 the state who has occupied the same residence for six months or more of 44 the taxable year, and has qualifying real property taxes as defined in 45 clause (ii) of subparagraph (E) of this paragraph, or a real property 46 tax equivalent as defined in clause (ii) of subparagraph (F) of this 47 paragraph, in excess of the following percentages of federal adjusted 48 gross income: 49 If federal adjusted gross income for the Percentage 50 taxable year is: 51 $3,000 or less 3 1/2 52 Over $3,000 but not over $5,000 4 S. 3009--C 135 A. 3009--C

1 Over $5,000 but not over $7,000 4 1/2 2 Over $7,000 but not over $9,000 5 3 Over $9,000 but not over $11,000 5 1/2 4 Over $11,000 but not over $14,000 6 5 Over $14,000 but not over $18,000 6 1/2 6 (E) [ ] (i) For taxable years beginning before January 7 first, two thousand twenty-five, "qualifying real property taxes" means 8 all real property taxes, special ad valorem levies and special assess- 9 ments, exclusive of penalties and interest, levied on the residence of a 10 qualified taxpayer and paid during the taxable year less the credit 11 claimed under subsection (n-1) of this section. In addition, for taxable 12 years beginning after December thirty-first, nineteen hundred eighty- 13 four, a qualified taxpayer may elect to include any additional amount 14 that would have been levied in the absence of an exemption from real 15 property taxation pursuant to section four hundred sixty-seven of the 16 real property tax law. If tenant-stockholders in a cooperative housing 17 corporation have met the requirements of section two hundred sixteen of 18 the internal revenue code by which they are allowed a deduction for real 19 estate taxes, the amount of taxes so allowable, or which would be allow- 20 able if the taxpayer had filed returns on a cash basis, shall be quali- 21 fying real property taxes. If a residence is owned by two or more indi- 22 viduals as joint tenants or tenants in common, and one or more than one 23 individual is not a member of the household, qualifying real property 24 taxes is that part of such taxes on the residence which reflects the 25 ownership percentage of the qualified taxpayer and members of [ ] 26 their household. If a residence is an integral part of a larger unit, 27 qualifying real property taxes shall be limited to that amount of such 28 taxes paid as may be reasonably apportioned to such residence. If a 29 household owns and occupies two or more residences during different 30 periods in the same taxable year, qualifying real property taxes shall 31 be the sum of the prorated qualifying real property taxes attributable 32 to the household during the periods such household occupies each of such 33 residences. If the household owns and occupies a residence for part of 34 the taxable year and rents a residence for part of the same taxable 35 year, it may include both the proration of qualifying real property 36 taxes on the residence owned and the real property tax equivalent with 37 respect to the months the residence is rented. Provided, however, for 38 purposes of the credit allowed under this subsection, qualifying real 39 property taxes may be included by a qualified taxpayer only to the 40 extent that such taxpayer or the spouse of such taxpayer occupying such 41 residence for six months or more of the taxable year owns or has owned 42 the residence and paid such taxes. 43 (ii) For taxable years beginning on or after January first, two thou- 44 sand twenty-five, "qualifying real property taxes" means all real prop- 45 erty taxes, special ad valorem levies and special assessments, exclusive 46 of penalties and interest, levied on the residence of a qualified 47 taxpayer and paid during the taxable year less any school tax relief 48 credit allowed under subsection (eee) of this section. A qualified 49 taxpayer may elect to include any additional amount that would have been 50 levied in the absence of an exemption from real property taxation pursu- 51 ant to section four hundred sixty-seven of the real property tax law. If 52 tenant-stockholders in a cooperative housing corporation have met the 53 requirements of section two hundred sixteen of the internal revenue code 54 by which they are allowed a deduction for real estate taxes, the amount 55 of taxes so allowable, or which would be allowable if the taxpayer had S. 3009--C 136 A. 3009--C

1 filed returns on a cash basis, shall be qualifying real property taxes. 2 If a residence is owned by two or more individuals as joint tenants or 3 tenants in common, qualifying real property taxes is that part of such 4 taxes on the residence which reflects the ownership percentage of the 5 qualified taxpayer. If a residence is an integral part of a larger unit, 6 qualifying real property taxes shall be limited to that amount of the 7 taxes paid as may be reasonably apportioned to such residence. If a 8 qualified taxpayer owns and occupies two or more residences during 9 different periods in the same taxable year, qualifying real property 10 taxes shall be the sum of the prorated qualifying real property taxes 11 attributable to the qualified taxpayer during the periods the taxpayer 12 occupies each of the residences. If a qualified taxpayer owns and occu- 13 pies a residence for part of the taxable year and rents a residence for 14 part of the same taxable year, the taxpayer may include both the 15 proration of qualifying real property taxes on the residence owned and 16 the real property tax equivalent with respect to the months the resi- 17 dence is rented. Provided, however, for purposes of the credit allowed 18 under this subsection, qualifying real property taxes may be included by 19 a qualified taxpayer only to the extent that such taxpayer or the spouse 20 of such taxpayer occupying such residence for six months or more of the 21 taxable year owns or has owned the residence and paid such taxes. 22 (F) [ ] (i) For taxable years beginning before January first, two 23 thousand twenty-five, "real property tax equivalent" means twenty-five 24 percent of the adjusted rent actually paid in the taxable year by a 25 household solely for the right of occupancy of its New York residence 26 for the taxable year. If [ ] (I) a residence is rented to two or more 27 individuals as cotenants, or such individuals share in the payment of a 28 single rent for the right of occupancy of such residence, and [ ] 29 (II) each of such individuals is a member of a different household, one 30 or more of which individuals shares such residence, real property tax 31 equivalent is that portion of twenty-five percent of the adjusted rent 32 paid in the taxable year which reflects that portion of the rent attrib- 33 utable to the qualified taxpayer and the members of [ ] their house- 34 hold. 35 (ii) For taxable years beginning on or after January first, two thou- 36 sand twenty-five, "real property tax equivalent" means twenty-five 37 percent of the adjusted rent actually paid in the taxable year by a 38 qualified taxpayer solely for the right of occupancy of their New York 39 residence for the taxable year. 40 § 2. Paragraph 2 of subsection (e) of section 606 of the tax law, as 41 amended by chapter 28 of the laws of 1987, is amended to read as 42 follows: 43 (2) [ ] (A) For taxable years beginning before January first, two 44 thousand twenty-five, a qualified taxpayer shall be allowed a credit as 45 provided in subparagraph (A) of paragraph three [ ] of this 46 subsection against the taxes imposed by this article reduced by the 47 credits permitted by this article. If the credit exceeds the tax as so 48 reduced for such year under this article the qualified taxpayer may 49 receive, and the comptroller, subject to a certificate of the [ 50 ] commissioner , shall pay as an overpayment, without interest, 51 any excess between such tax as so reduced and the amount of the credit. 52 If a qualified taxpayer is not required to file a return pursuant to 53 section six hundred fifty-one, a qualified taxpayer may nevertheless 54 receive and the comptroller, subject to a certificate of the [ 55 ] commissioner , shall pay as an overpayment the full amount of 56 the credit, without interest. S. 3009--C 137 A. 3009--C

1 (B) For taxable years beginning on or after January first, two thou- 2 sand twenty-five, a qualified taxpayer shall be allowed a credit against 3 the tax imposed by this article as provided for in subparagraph (B) of 4 paragraph three of this subsection. If the amount of the credit allowed 5 under this subsection exceeds the taxpayer's tax for the taxable year, 6 the excess shall be treated as an overpayment of tax to be credited or 7 refunded in accordance with the provisions of section six hundred eight- 8 y-six of this article, provided, however, that no interest shall be paid 9 thereon. If a taxpayer is not required to file a return pursuant to 10 section six hundred fifty-one, a qualified taxpayer may nevertheless 11 receive and the comptroller, subject to a certificate of the commission- 12 er, shall pay as an overpayment the full amount of the credit, without 13 interest. 14 § 3. Paragraph 3 of subsection (e) of section 606 of the tax law, as 15 amended by chapter 28 of the laws of 1987, is amended to read as 16 follows: 17 (3) Determination of credit. (A) For taxable years beginning before 18 January first, two thousand twenty-five, (i) for qualified taxpayers who 19 have attained the age of sixty-five years before the beginning of or 20 during the taxable year the amount of the credit allowable under this 21 subsection shall be fifty percent, or in the case of a qualified taxpay- 22 er who has elected to include an additional amount pursuant to subpara- 23 graph (E) of paragraph one of this subsection, twenty-five percent, of 24 the excess of real property taxes or the excess of real property tax 25 equivalent determined as follows:

26 Excess real property taxes are the 27 excess of real property tax equiv- 28 alent or the excess of qualifying 29 real property taxes over the fo- 30 If household gross income for the llowing percentage of household 31 taxable year is: gross income: 32 ----------------------------------- ----------------------------------- 33 $3,000 or less 3 1/2 34 Over $3,000 but not over $5,000 4 35 Over $5,000 but not over $7,000 4 1/2 36 Over $7,000 but not over $9,000 5 37 Over $9,000 but not over $11,000 5 1/2 38 Over $11,000 but not over $14,000 6 39 Over $14,000 but not over $18,000 6 1/2

40 Notwithstanding the foregoing provisions, the maximum credit deter- 41 mined under this [ ] clause may not exceed the amount deter- 42 mined in accordance with the following table:

43 If household gross income for the 44 taxable year is: The maximum credit is: 45 ----------------------------------- ----------------------------------- 46 $1,000 or less $375 47 Over $1,000 but not over $2,000 $358 48 Over $2,000 but not over $3,000 $341 49 Over $3,000 but not over $4,000 $324 50 Over $4,000 but not over $5,000 $307 51 Over $5,000 but not over $6,000 $290 52 Over $6,000 but not over $7,000 $273 53 Over $7,000 but not over $8,000 $256 S. 3009--C 138 A. 3009--C

1 Over $8,000 but not over $9,000 $239 2 Over $9,000 but not over $10,000 $222 3 Over $10,000 but not over $11,000 $205 4 Over $11,000 but not over $12,000 $188 5 Over $12,000 but not over $13,000 $171 6 Over $13,000 but not over $14,000 $154 7 Over $14,000 but not over $15,000 $137 8 Over $15,000 but not over $16,000 $120 9 Over $16,000 but not over $17,000 $103 10 Over $17,000 but not over $18,000 $ 86

11 [ ] (ii) for all other qualified taxpayers the amount of the 12 credit allowable under this subsection shall be fifty percent of excess 13 real property taxes or the excess of the real property tax equivalent 14 determined as follows:

15 Excess real property taxes are the 16 excess of real property tax equiv- 17 alent or the excess of qualifying 18 real property taxes over the 19 If household gross income for the following percentage of household 20 taxable year is: gross income: 21 ----------------------------------- ----------------------------------- 22 $3,000 or less 3 1/2 23 Over $3,000 but not over $5,000 4 24 Over $5,000 but not over $7,000 4 1/2 25 Over $7,000 but not over $9,000 5 26 Over $9,000 but not over $11,000 5 1/2 27 Over $11,000 but not over $14,000 6 28 Over $14,000 but not over $18,000 6 1/2

29 Notwithstanding the foregoing provisions, the maximum credit deter- 30 mined under this [ ] clause may not exceed the amount deter- 31 mined in accordance with the following table:

32 If household gross income for the 33 taxable year is: The maximum credit is: 34 ----------------------------------- ----------------------------------- 35 $1,000 or less $75 36 Over $1,000 but not over $2,000 $73 37 Over $2,000 but not over $3,000 $71 38 Over $3,000 but not over $4,000 $69 39 Over $4,000 but not over $5,000 $67 40 Over $5,000 but not over $6,000 $65 41 Over $6,000 but not over $7,000 $63 42 Over $7,000 but not over $8,000 $61 43 Over $8,000 but not over $9,000 $59 44 Over $9,000 but not over $10,000 $57 45 Over $10,000 but not over $11,000 $55 46 Over $11,000 but not over $12,000 $53 47 Over $12,000 but not over $13,000 $51 48 Over $13,000 but not over $14,000 $49 49 Over $14,000 but not over $15,000 $47 50 Over $15,000 but not over $16,000 $45 51 Over $16,000 but not over $17,000 $43 52 Over $17,000 but not over $18,000 $41 S. 3009--C 139 A. 3009--C

1 (B) For taxable years beginning on or after January first, two thou- 2 sand twenty-five, (i) for qualified taxpayers who have attained the age 3 of sixty-five years before the beginning of or during the taxable year 4 or are claiming dependents as defined under section one hundred fifty- 5 two of the internal revenue code who have attained the age of sixty-five 6 years before the beginning of or during the taxable year, the credit 7 allowable under this subsection shall be: 8 If the taxpayer's federal adjusted gross 9 income for the taxable year is: The credit amount is: 10 $3,000 or less $375 11 Over $3,000 but not over $5,000 $330 12 Over $5,000 but not over $7,000 $300 13 Over $7,000 but not over $9,000 $260 14 Over $9,000 but not over $11,000 $230 15 Over $11,000 but not over $14,000 $200 16 Over $14,000 but not over $18,000 $150 17 (ii) for all other taxpayers the amount of the credit allowable under 18 this subsection shall be: 19 If the taxpayer's federal adjusted gross 20 income for the taxable year is: The credit amount is: 21 $5,000 or less $75 22 Over $5,000 but not over $9,000 $70 23 Over $9,000 but not over $14,000 $60 24 Over $14,000 but not over $18,000 $50 25 § 4. Paragraph 4 of subsection (e) of section 606 of the tax law, as 26 amended by chapter 28 of the laws of 1987, is amended to read as 27 follows: 28 (4) If a qualified taxpayer occupies a residence for a period of less 29 than twelve months during the taxable year or occupies two or more resi- 30 dences during different periods in such taxable year, the credit allowed 31 pursuant to this subsection shall be computed in such manner as the [ 32 ] commissioner may[ ] prescribe in order to 33 properly reflect the credit or portion thereof attributable to such 34 residence or residences and such period or periods. 35 § 5. Paragraph 5 of subsection (e) of section 606 of the tax law is 36 REPEALED. 37 § 6. Paragraph 6 of subsection (e) of section 606 of the tax law, as 38 amended by chapter 28 of the laws of 1987, is amended to read as 39 follows: 40 (6) [ ] (A) For taxable years beginning before January first, two 41 thousand twenty-five, only one credit per household and per qualified 42 taxpayer shall be allowed per taxable year under this subsection. 43 [ ] Where two or more members of a household are able to meet the 44 qualifications for a qualified taxpayer, the credit shall be equally 45 divided between or among such individuals unless such individuals file 46 with the [ ] commissioner a written agreement among such 47 individuals setting forth a different division. Where two or more 48 members of a household are able to meet the qualifications of a quali- 49 fied taxpayer and one of them is sixty-five years of age or more, the 50 credit which may be taken shall be the credit applicable to individuals 51 who have attained the age of sixty-five years. S. 3009--C 140 A. 3009--C

1 [ ] (B) For taxable years beginning on or after January first, two 2 thousand twenty-five, only one credit per qualified taxpayer shall be 3 allowed per taxable year under this subsection. 4 (C) Provided, however, where a joint income tax return has been filed 5 pursuant to the provisions of section six hundred fifty-one by a quali- 6 fied taxpayer and [ ] their spouse (or where both spouses are quali- 7 fied taxpayers and have filed such joint return), the credit, or the 8 portion of the credit if divided, to which the [ ] spous- 9 es are entitled shall be applied against the tax of both spouses and any 10 overpayment shall be made to both spouses. 11 [ ] (D) Where any return required to be filed pursuant to the 12 provisions of section six hundred fifty-one is combined with any return 13 of tax imposed pursuant to the authority of this chapter or any other 14 law if such tax is administered by the [ ] commissioner , 15 the credit or the portion of the credit if divided, allowed to the qual- 16 ified taxpayer may be applied by the [ ] commissioner 17 toward any liability for the aforementioned taxes. 18 § 7. Subparagraph (A) of paragraph 7 of subsection (e) of section 606 19 of the tax law, as amended by chapter 28 of the laws of 1987, is amended 20 to read as follows: 21 (A) [ ] (i) For taxable years beginning before January first, two 22 thousand twenty-five, if household gross income for the taxable year 23 exceeds eighteen thousand dollars. 24 (ii) For taxable years beginning on or after January first, two thou- 25 sand twenty-five, if the taxpayer's federal adjusted gross income 26 exceeds eighteen thousand dollars. 27 § 8. Paragraphs 9, 10 and 14 of subsection (e) of section 606 of the 28 tax law, paragraphs 9 and 10 as amended by chapter 28 of the laws of 29 1987 and paragraph 14 as amended by chapter 23 of the laws of 1990, are 30 amended to read as follows: 31 (9) Returns. If a qualified taxpayer is not required to file a return 32 pursuant to section six hundred fifty-one, a claim for a credit may be 33 taken on a return filed with the [ ] commissioner, or a 34 form prescribed by the commissioner, within three years from the time it 35 would have been required that a return be filed pursuant to such section 36 had the qualified taxpayer had a taxable year ending on December thir- 37 ty-first. Returns under this paragraph shall be in such form as shall be 38 prescribed by the [ ] commissioner , which shall make avail- 39 able such forms and instructions for filing such returns. 40 (10) Proof of claim. The [ ] commissioner may require a 41 qualified taxpayer to furnish the following information in support of 42 [ ] their claim for credit under this subsection: federal adjusted 43 gross income, household gross income, rent paid, name and address of 44 owner or managing agent of the property rented, real property taxes 45 levied or that would have been levied in the absence of an exemption 46 from real property tax pursuant to section four hundred sixty-seven of 47 the real property tax law, the names of members of the household and 48 other qualifying taxpayers occupying the same residence and their iden- 49 tifying numbers including social security numbers, household gross 50 income, size and nature of property claimed as residence and all other 51 information which may be required by the [ ] commissioner 52 to determine the credit. 53 (14) [ ] (A) For calendar years before two thousand twenty-five, 54 the commissioner [ ] shall prepare a preliminary 55 written report after July thirty-first and a final written report after 56 December thirty-first of each calendar year, which shall contain statis- S. 3009--C 141 A. 3009--C

1 tical information regarding the credits granted on or before such dates 2 under this subsection during such calendar year. Copies of these 3 reports shall be submitted by [ ] the commissioner to the governor, 4 the temporary president of the senate, the speaker of the assembly, the 5 [ ] chair of the senate finance committee and the [ ] 6 chair of the assembly ways and means committee within sixty days of July 7 thirty-first with respect to the preliminary report, and within forty- 8 five days of December thirty-first with respect to the final report. 9 Such reports shall contain, but need not be limited to, the number of 10 credits and the average amount of such credits allowed; and of those, 11 the number of credits and the average amount of such credits allowed to 12 qualified taxpayers in each county; and of those, the number of credits 13 and the average amount of such credits allowed to qualified taxpayers 14 whose household gross income falls within each of the household gross 15 income ranges set forth in paragraph three of this subsection; and of 16 those, the number of credits and the average amount of such credits 17 allowed to qualified taxpayers whose credit amount falls within credit 18 amount ranges set forth in twenty-five dollar increments. 19 (B) For calendar years beginning with two thousand twenty-five, the 20 commissioner of taxation and finance shall prepare an annual report by 21 September first of each such year, which shall contain statistical 22 information regarding the credits claimed under this subsection for the 23 second preceding taxable year. Copies of such report shall be submitted 24 by the commissioner to the governor, the temporary president of the 25 senate, the speaker of the assembly, the chair of the senate finance 26 committee and the chair of the assembly ways and means committee. Such 27 report shall contain, but need not be limited to, the number of credits 28 and the amount of such credits allowed; and of those, the number of 29 credits and the amount of such credits allowed to qualified taxpayers in 30 each county; and of those, the number of credits and the amount of such 31 credits allowed to qualified taxpayers whose federal adjusted gross 32 income falls within each of the federal adjusted gross income ranges set 33 forth in paragraph three of this subsection. 34 § 9. This act shall take effect immediately.

35 PART SS

36 Section 1. The tax law is amended by adding a new section 1202-z-5 to 37 read as follows: 38 § 1202-z-5. Occupancy tax in the city of Auburn. (1) Notwithstanding 39 any other provision of law to the contrary, the city of Auburn, in the 40 county of Cayuga, is hereby authorized and empowered to adopt and amend 41 local laws imposing in such city a tax, in addition to any other tax 42 authorized and imposed pursuant to this article, such as the legislature 43 has or would have the power and authority to impose upon persons occupy- 44 ing any room for hire in any hotel. For the purposes of this section, 45 the term "hotel" shall mean a building or portion of it which is regu- 46 larly used and kept open as such for the lodging of guests. The term 47 "hotel" includes an apartment hotel, a motel, a boarding house, and 48 facilities designated and commonly known as a "bed and breakfast" and 49 similar "tourist" facilities, whether or not meals are served. The rate 50 of such tax shall not exceed five percent of the per diem rental rate 51 for each room whether such room is rented on a daily or longer basis. 52 (2) Such taxes may be collected and administered by the chief fiscal 53 officer of the city of Auburn by such means and in such manner as other S. 3009--C 142 A. 3009--C

1 taxes which are now collected and administered by such officer or as 2 otherwise may be provided by such local law. 3 (3) Such local laws may provide that any taxes imposed shall be paid 4 by the person liable therefor to the owner of the room for hire in the 5 tourist home, inn, club, hotel, motel or other similar place of public 6 accommodation occupied or to the person entitled to be paid the rent or 7 charge the room for hire in the tourist home, inn, club, hotel, motel or 8 other similar place of public accommodation occupied for and on account 9 of the city of Auburn imposing the tax and that such owner or person 10 entitled to be paid the rent or charge shall be liable for the 11 collection and payment of the tax; and that such owner or person enti- 12 tled to be paid the rent or charge shall have the same right in respect 13 to collecting the tax from the person occupying the room for hire in the 14 tourist home, inn, club, hotel, motel or other similar place of public 15 accommodation, or in respect to nonpayment of the tax by the person 16 occupying the room for hire in the tourist home, inn, club, hotel, motel 17 or similar place of public accommodation, as if the taxes were a part of 18 the rent or charge and payable at the same time as the rent or charge; 19 provided, however, that the chief fiscal officer of the city, specified 20 in such local laws, shall be joined as a party in any action or proceed- 21 ing brought to collect the tax by the owner or by the person entitled to 22 be paid the rent or charge. 23 (4) Such local laws may provide for the filing of returns and the 24 payment of the taxes on a monthly basis or on the basis of any longer or 25 shorter period of time. 26 (5) This section shall not authorize the imposition of such tax upon 27 any of the following: 28 a. The state of New York, or any public corporation (including a 29 public corporation created pursuant to agreement or compact with another 30 state or the dominion of Canada), improvement district or other poli- 31 tical subdivision of the state; 32 b. The United States of America, insofar as it is immune from taxa- 33 tion; 34 c. Any corporation or association, or trust, or community chest, fund 35 or foundation organized and operated exclusively for religious, charita- 36 ble or educational purposes, or for the prevention of cruelty to chil- 37 dren or animals, and no part of the net earnings of which inures to the 38 benefit of any private shareholder or individual and no substantial part 39 of the activities of which is carrying on propaganda, or otherwise 40 attempting to influence legislation; provided, however, that nothing in 41 this paragraph shall include an organization operated for the primary 42 purpose of carrying on a trade or business for profit, whether or not 43 all of its profits are payable to one or more organizations described in 44 this paragraph; or 45 d. A permanent resident of a hotel or motel. For the purposes of this 46 section, the term "permanent resident" shall mean a natural person occu- 47 pying any room or rooms in a hotel or motel for at least ninety consec- 48 utive days. 49 (6) Any final determination of the amount of any tax payable hereunder 50 shall be reviewable for error, illegality or unconstitutionality or any 51 other reason whatsoever by a proceeding under article seventy-eight of 52 the civil practice law and rules if application therefor is made to the 53 supreme court within thirty days after the giving of notice of such 54 final determination, provided, however, that any such proceeding under 55 article seventy-eight of the civil practice law and rules shall not be 56 instituted unless: S. 3009--C 143 A. 3009--C

1 a. The amount of any tax sought to be reviewed, with such interest and 2 penalties thereon as may be provided for by local laws or regulations 3 shall be first deposited and there shall be filed an undertaking, issued 4 by a surety company authorized to transact business in this state and 5 approved by the superintendent of financial services of this state as to 6 solvency and responsibility, in such amount as a justice of the supreme 7 court shall approve to the effect that if such proceeding be dismissed 8 or the tax confirmed the petitioner will pay all costs and charges which 9 may accrue in the prosecution of such proceeding; or 10 b. At the option of the petitioner, such undertaking may be in a sum 11 sufficient to cover the taxes, interests and penalties stated in such 12 determination plus the costs and charges which may accrue against it in 13 the prosecution of the proceeding, in which event the petitioner shall 14 not be required to pay such taxes, interest or penalties as a condition 15 precedent to the application. 16 (7) Where any taxes imposed hereunder shall have been erroneously, 17 illegally or unconstitutionally collected and application for the refund 18 therefor duly made to the proper fiscal officer or officers, and such 19 officer or officers shall have made a determination denying such refund, 20 such determination shall be reviewable by a proceeding under article 21 seventy-eight of the civil practice law and rules, provided, however, 22 that such proceeding is instituted within thirty days after the giving 23 of the notice of such denial, that a final determination of tax due was 24 not previously made, and that an undertaking is filed with the proper 25 fiscal officer or officers in such amount and with such sureties as a 26 justice of the supreme court shall approve to the effect that if such 27 proceeding be dismissed or the taxes confirmed, the petitioner will pay 28 all costs and charges which may accrue in the prosecution of such 29 proceeding. 30 (8) Except in the case of a willfully false or fraudulent return with 31 intent to evade the tax, no assessment of additional tax shall be made 32 after the expiration of more than three years from the date of the 33 filing of a return, provided, however, that where no return has been 34 filed as provided by law the tax may be assessed at any time. 35 (9) All revenues resulting from the imposition of the tax under the 36 local laws shall be paid into the treasury of the city of Auburn and 37 shall be credited to and deposited in the general fund of the city. Such 38 revenues may be used for any lawful purpose. 39 (10) Each enactment of such a local law may provide for the imposition 40 of a hotel or motel tax for a period of time no longer than two years 41 from the date of its enactment. Nothing in this section shall prohibit 42 the adoption and enactment of local laws, pursuant to the provisions of 43 this section, upon the expiration of any other local law adopted pursu- 44 ant to this section. 45 (11) If any provision of this section or the application thereof to 46 any person or circumstance shall be held invalid, the remainder of this 47 section and the application of such provision to other persons or 48 circumstances shall not be affected thereby. 49 § 2. This act shall take effect immediately and shall expire and be 50 deemed repealed December 31, 2027.

51 PART TT

52 Section 1. The tax law is amended by adding a new section 1202-kk to 53 read as follows: S. 3009--C 144 A. 3009--C

1 § 1202-kk. Hotel or motel taxes in the city of Buffalo. (1) Notwith- 2 standing any other provisions of law to the contrary, the city of 3 Buffalo, in the county of Erie, is hereby authorized and empowered to 4 adopt and amend local laws imposing in such city a tax, in addition to 5 any other tax authorized and imposed pursuant to this article such as 6 the legislature has or would have the power and authority to impose upon 7 persons occupying hotel or motel rooms in such city. For the purposes of 8 this section, the term "hotel" or "motel" shall mean and include any 9 facility consisting of rentable units and providing lodging on an over- 10 night basis and shall include those facilities designated and commonly 11 known as "bed and breakfast" and "tourist" facilities. The rates of such 12 tax shall not exceed three percent of the per diem rental rate for each 13 room, provided however, that such tax shall not be applicable to a 14 permanent resident of a hotel or motel. For the purposes of this section 15 the term "permanent resident" shall mean a person occupying any room or 16 rooms in a hotel or motel for at least ninety consecutive days. 17 (2) Such tax may be collected and administered by the commissioner of 18 administration, finance, policy and urban affairs of the city of Buffalo 19 by such means and in such manner as other taxes which are now collected 20 and administered by such officer or as otherwise may be provided by such 21 local law. 22 (3) Such local laws may provide that any tax imposed shall be paid by 23 the person liable therefor to the owner of the hotel or motel room occu- 24 pied or to the person entitled to be paid the rent or charge for the 25 hotel or motel room occupied for and on account of the city of Buffalo 26 imposing the tax and that such owner or person entitled to be paid the 27 rent or charge shall be liable for the collection and payment of the 28 tax; and that such owner or person entitled to be paid the rent or 29 charge shall have the same right in respect to collecting the tax from 30 the person occupying the hotel or motel room, or in respect to nonpay- 31 ment of the tax by the person occupying the hotel or motel room, as if 32 the tax were a part of the rent or charge and payable at the same time 33 as the rent or charge; provided, however, that the commissioner of 34 administration, finance, policy and urban affairs of the city, specified 35 in such local law, shall be joined as a party in any action or proceed- 36 ing brought to collect the tax by the owner or by the person entitled to 37 be paid the rent or charge. 38 (4) Such local laws may provide for the filing of returns and the 39 payment of the tax on a monthly basis or on the basis of any longer or 40 shorter period of time. 41 (5) This section shall not authorize the imposition of such tax upon 42 any transaction, by or with any of the following in accordance with 43 section twelve hundred thirty of this article: 44 a. The state of New York, or any public corporation (including a 45 public corporation created pursuant to agreement or compact with another 46 state or the Dominion of Canada), improvement district or other poli- 47 tical subdivision of the state; 48 b. The United States of America, insofar as it is immune from taxa- 49 tion; 50 c. Any corporation or association, or trust, or community chest, fund 51 or foundation organized and operated exclusively for religious, charita- 52 ble or educational purposes, or for the prevention of cruelty to chil- 53 dren or animals, and no part of the net earnings of which inures to the 54 benefit of any private shareholder or individual and no substantial part 55 of the activities of which is carrying on propaganda, or otherwise 56 attempting to influence legislation; provided, however, that nothing in S. 3009--C 145 A. 3009--C

1 this paragraph shall include an organization operated for the primary 2 purpose of carrying on a trade or business for profit, whether or not 3 all of its profits are payable to one or more organizations described in 4 this paragraph. 5 (6) Any final determination of the amount of any tax payable hereunder 6 shall be reviewable for error, illegality or unconstitutionality or any 7 other reason whatsoever by a proceeding under article seventy-eight of 8 the civil practice law and rules if application therefor is made to the 9 supreme court within thirty days after the giving of the notice of such 10 final determination, provided, however, that any such proceeding under 11 article seventy-eight of the civil practice law and rules shall not be 12 instituted unless: 13 a. The amount of any tax sought to be reviewed, with such interest and 14 penalties thereon as may be provided for by local law shall be first 15 deposited and there is filed an undertaking, issued by a surety company 16 authorized to transact business in this state and approved by the super- 17 intendent of financial services of this state as to solvency and respon- 18 sibility, in such amount as a justice of the supreme court shall approve 19 to the effect that if such proceeding be dismissed or the tax confirmed 20 the petitioner will pay all costs and charges which may accrue in the 21 prosecution of such proceeding; or 22 b. At the option of the petitioner such undertaking may be in a sum 23 sufficient to cover the taxes, interests and penalties stated in such 24 determination plus the costs and charges which may accrue against it in 25 the prosecution of the proceeding, in which event the petitioner shall 26 not be required to pay such taxes, interest or penalties as a condition 27 precedent to the application. 28 (7) Where any tax imposed hereunder shall have been erroneously, ille- 29 gally or unconstitutionally collected and application for the refund 30 thereof duly made to the proper fiscal officer or officers, and such 31 officer or officers shall have made a determination denying such refund, 32 such determination shall be reviewable by a proceeding under article 33 seventy-eight of the civil practice law and rules, provided, however, 34 that such proceeding is instituted within thirty days after the giving 35 of the notice of such denial, that a final determination of tax due was 36 not previously made, and that an undertaking is filed with the proper 37 fiscal officer or officers in such amount and with such sureties as a 38 justice of the supreme court shall approve to the effect that if such 39 proceeding be dismissed or the tax confirmed, the petitioner will pay 40 all costs and charges which may accrue in the prosecution of such 41 proceeding. 42 (8) Except in the case of a willfully false or fraudulent return with 43 intent to evade the tax, no assessment of additional tax shall be made 44 after the expiration of more than three years from the date of the 45 filing of a return, provided, however, that where no return has been 46 filed as provided by law the tax may be assessed at any time. 47 (9) All revenues resulting from the imposition of the tax under the 48 local laws shall be paid into the treasury of the city of Buffalo and 49 shall be credited to and deposited in the general fund of the city. Such 50 revenues shall be used as follows: twenty-five percent of such revenue 51 from this tax shall be allocated to support organizations dedicated to 52 maintenance of the city-owned public realm and city-owned parking facil- 53 ities in downtown as well as public safety initiatives undertaken by the 54 Buffalo police department and other organizations in downtown, and 55 seventy-five percent shall be allocated for capital improvements to S. 3009--C 146 A. 3009--C

1 city-owned cultural facilities citywide, the city-owned public realm in 2 downtown, and city-owned professional sporting venues. 3 (10) If any provision of this section or the application thereof to 4 any person or circumstance shall be held invalid, the remainder of this 5 section and the application of such provision to other persons or 6 circumstances shall not be affected thereby. 7 § 2. This act shall take effect immediately and shall expire and be 8 deemed repealed December 31, 2027.

9 PART UU

10 Section 1. Paragraphs 1 and 9 of subsection (g-4) of section 606 of 11 the tax law, as added by section 1 of part FF of chapter 59 of the laws 12 of 2022, are amended to read as follows: 13 (1) General. An individual taxpayer shall be allowed a credit against 14 the tax imposed by this article equal to twenty-five percent of quali- 15 fied geothermal energy system expenditures, except as provided in 16 subparagraph (D) of paragraph two of this subsection, not to exceed five 17 thousand dollars for qualified geothermal energy systems placed in 18 service on or before June thirtieth, two thousand twenty-five, and ten 19 thousand dollars for qualified geothermal energy equipment placed in 20 service on or after July first, two thousand twenty-five . 21 (9) [ ] Application of credit. If the amount of the credit, 22 and carryovers of such credit, allowable under this subsection for any 23 taxable year shall exceed the taxpayer's tax for such year, such excess 24 amount may be carried over to the five taxable years next following the 25 taxable year with respect to which the credit is allowed and may be 26 deducted from the taxpayer's tax for such year or years. For taxable 27 years beginning on or after January first, two thousand twenty-six, 28 taxpayers who are (A) married filing jointly or qualifying surviving 29 spouses with a federal adjusted gross income of one hundred eighty thou- 30 sand dollars or less, or (B) single, married filing separate, or heads 31 of household with a federal adjusted gross income of ninety thousand 32 dollars or less, may elect to receive such excess amount as a refund. 33 Any refund paid pursuant to this paragraph shall be deemed to be a 34 refund of an overpayment of tax as provided in section six hundred 35 eighty-six of this article, provided, however, that no interest shall be 36 paid thereon. 37 § 2. This act shall take effect immediately.

38 PART VV

39 Section 1. Section 800 of the tax law, as added by section 1 of part C 40 of chapter 25 of the laws of 2009, subsection (b) as amended by section 41 1 of part B of chapter 56 of the laws of 2011, paragraph 4 of subsection 42 (b) as amended by section 1 of part YY of chapter 59 of the laws of 2015 43 and subsection (e) as amended by section 1 of part B of chapter 59 of 44 the laws of 2023, is amended to read as follows: 45 § 800. Definitions. For the purposes of this article: 46 (a) Metropolitan commuter transportation district. The metropolitan 47 commuter transportation district ("MCTD") means the area of the state 48 included in the district created and governed by section twelve hundred 49 sixty-two of the public authorities law. The MCTD shall have two zones: 50 (1) MCTD zone one shall be comprised of the counties of Bronx, Kings, 51 New York, Queens, and Richmond. S. 3009--C 147 A. 3009--C

1 (2) MCTD zone two shall be comprised of the counties of Dutchess, 2 Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. 3 (b) Employer. Employer means an employer required by section six 4 hundred seventy-one of this chapter to deduct and withhold tax from 5 wages, [ 6 ] other than 7 (1) any agency or instrumentality of the United States; 8 (2) the United Nations; 9 (3) an interstate agency or public corporation created pursuant to an 10 agreement or compact with another state or the Dominion of Canada; [ ] 11 (4) Any eligible educational institution. An "eligible educational 12 institution" shall mean any public school district, a board of cooper- 13 ative educational services, a public elementary or secondary school, a 14 school approved pursuant to article eighty-five or eighty-nine of the 15 education law to serve students with disabilities of school age, or a 16 nonpublic elementary or secondary school that provides instruction in 17 grade one or above, all public library systems as defined in subdivision 18 one of section two hundred seventy-two of the education law, and all 19 public and free association libraries as such terms are defined in 20 subdivision two of section two hundred fifty-three of the education law ; 21 or 22 (5) any local government employer whose covered employees are within 23 MCTD zone two . 24 (c) Payroll expense. Payroll expense means wages and compensation as 25 defined in sections 3121 and 3231 of the internal revenue code (without 26 regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)), paid to all 27 covered employees. 28 (d) Covered employee. Covered employee means an employee who is 29 employed within the MCTD. 30 (e) Net earnings from self-employment. Net earnings from self-employ- 31 ment has the same meaning as in section 1402 of the internal revenue 32 code, provided, however, that for purposes of determining whether the 33 exclusion pursuant to paragraph 13 of subsection (a) of section 1402 of 34 the internal revenue code applies, an individual shall not be considered 35 a limited partner if the individual, directly or indirectly, takes part 36 in the control, or participates in the management or operations of the 37 partnership such that the individual is not a passive investor, regard- 38 less of the individual's title or characterization in a partnership or 39 operating agreement. 40 (f) Local government employer. Local government employer means (1) a 41 county, city, town, village or any other political subdivision or civil 42 division of the state, (2) a public improvement or special district, (3) 43 a public authority, commission, community college, or public benefit 44 corporation, (4) any other public corporation, agency or instrumentality 45 or unit of government which exercises governmental powers under the laws 46 of the state, or (5) in the case of a county sheriff's office in those 47 counties where the office of sheriff is an elected position, both the 48 county and the sheriff, shall be designated as a joint public employer 49 for all purposes of this article. 50 § 2. Section 801 of the tax law, as added by section 1 of part C of 51 chapter 25 of the laws of 2009, subsection (a) as amended by section 1 52 of part N of chapter 59 of the laws of 2012, paragraph 1 of subsection 53 (a) as amended by section 1 and subparagraph (B) of paragraph 2 of 54 subsection (a) as amended by section 3 of part Q of chapter 58 of the 55 laws of 2023 and subparagraph (A) of paragraph 2 of subsection (a) as S. 3009--C 148 A. 3009--C

1 amended by section 1 of part C of chapter 59 of the laws of 2024, is 2 amended to read as follows: 3 § 801. Imposition of tax and rate. (a) For the sole purpose of provid- 4 ing an additional stable and reliable dedicated funding source for the 5 metropolitan transportation authority and its subsidiaries and affil- 6 iates to preserve, operate and improve essential transit and transporta- 7 tion services in the metropolitan commuter transportation district, a 8 tax is hereby imposed on employers and individuals as follows: (1) (A) 9 For tax quarters beginning before July first, two thousand twenty-five, 10 employers who engage in business within the MCTD, in the counties of 11 Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester, the 12 tax is imposed at a rate of (i) eleven hundredths (.11) percent of the 13 payroll expense for employers with payroll expense greater than three 14 hundred twelve thousand five hundred dollars and no greater than three 15 hundred seventy-five thousand dollars in any calendar quarter, (ii) 16 twenty-three hundredths (.23) percent of the payroll expense for employ- 17 ers with payroll expense greater than three hundred seventy-five thou- 18 sand dollars and no greater than four hundred thirty-seven thousand five 19 hundred dollars in any calendar quarter, and (iii) thirty-four 20 hundredths (.34) percent of the payroll expense for employers with 21 payroll expense in excess of four hundred thirty-seven thousand five 22 hundred dollars in any calendar quarter. If the employer is a profes- 23 sional employer organization, as defined in section nine hundred sixteen 24 of the labor law, the employer's tax shall be calculated by determining 25 the payroll expense attributable to each client who has entered into a 26 professional employer agreement with such organization and the payroll 27 expense attributable to such organization itself, multiplying each of 28 those payroll expense amounts by the applicable rate set forth in this 29 paragraph and adding those products together. 30 (B) For tax quarters beginning before July first, two thousand twen- 31 ty-five, employers who engage in business within the MCTD, in the coun- 32 ties of Bronx, Kings, New York, Queens, and Richmond, the tax is imposed 33 at a rate of (i) eleven hundredths (.11) percent of the payroll expense 34 for employers with payroll expense greater than three hundred twelve 35 thousand five hundred dollars and no greater than three hundred seven- 36 ty-five thousand dollars in any calendar quarter, (ii) twenty-three 37 hundredths (.23) percent of the payroll expense for employers with 38 payroll expense greater than three hundred seventy-five thousand dollars 39 and no greater than four hundred thirty-seven thousand five hundred 40 dollars in any calendar quarter, and (iii) sixty hundredths (.60) 41 percent of the payroll expense for employers with payroll expense in 42 excess of four hundred thirty-seven thousand five hundred dollars in any 43 calendar quarter. If the employer is a professional employer organiza- 44 tion, as defined in section nine hundred sixteen of the labor law, the 45 employer's tax shall be calculated by determining the payroll expense 46 attributable to each client who has entered into a professional employer 47 agreement with such organization and the payroll expense attributable to 48 such organization itself, multiplying each of those payroll expense 49 amounts by the applicable rate set forth in this paragraph and adding 50 those products together. 51 (C) For tax quarters beginning on and after July first, two thousand 52 twenty-five, for employers within MCTD zone one, the tax is imposed at a 53 rate of (i) fifty-five thousandths (.055) percent of the payroll expense 54 for employers with payroll expense greater than three hundred twelve 55 thousand five hundred dollars and no greater than three hundred seven- 56 ty-five thousand dollars in any calendar quarter, (ii) one hundred S. 3009--C 149 A. 3009--C

1 fifteen thousandths (.115) percent of the payroll expense for employers 2 with payroll expense greater than three hundred seventy-five thousand 3 dollars and no greater than four hundred thirty-seven thousand five 4 hundred dollars in any calendar quarter, (iii) sixty hundredths (.60) 5 percent of the payroll expense for employers with payroll expense great- 6 er than four hundred thirty-seven thousand five hundred dollars and no 7 greater than two million five hundred thousand dollars in any calendar 8 quarter; and (iv) eight hundred ninety-five thousandths (.895) percent 9 of the payroll expense for employers with payroll expense in excess of 10 two million five hundred thousand dollars in any calendar quarter. 11 Provided, however, that for employers within MCTD zone one who are local 12 government employers as defined in this article with payroll expense in 13 excess of two million five hundred thousand dollars in any calendar 14 quarter, the tax is imposed at a rate of sixty hundredths (.60) percent 15 of the payroll expense. If the employer is a professional employer 16 organization, as defined in section nine hundred sixteen of the labor 17 law, the employer's tax shall be calculated by determining the payroll 18 expense attributable to each client who has entered into a professional 19 employer agreement with such organization and the payroll expense 20 attributable to such organization itself, multiplying each of those 21 payroll expense amounts by the applicable rate set forth in this para- 22 graph and adding those products together. 23 (D) For tax quarters beginning on and after July first, two thousand 24 twenty-five, for employers within MCTD zone two that are not local 25 government employers, the tax is imposed at a rate of (i) fifty-five 26 thousandths (.055) percent of the payroll expense for employers with 27 payroll expense greater than three hundred twelve thousand five hundred 28 dollars and no greater than three hundred seventy-five thousand dollars 29 in any calendar quarter, (ii) one hundred fifteen thousandths (.115) 30 percent of the payroll expense for employers with payroll expense great- 31 er than three hundred seventy-five thousand dollars and no greater than 32 four hundred thirty-seven thousand five hundred dollars in any calendar 33 quarter, (iii) thirty-four hundredths (.34) percent of the payroll 34 expense for employers with payroll expense greater than four hundred 35 thirty-seven thousand five hundred dollars and no greater than two 36 million five hundred thousand dollars in any calendar quarter; and (iv) 37 six hundred thirty-five thousandths (.635) percent of the payroll 38 expense for employers with payroll expense in excess of two million five 39 hundred thousand dollars in any calendar quarter. If the employer is a 40 professional employer organization, as defined in section nine hundred 41 sixteen of the labor law, the employer's tax shall be calculated by 42 determining the payroll expense attributable to each client who has 43 entered into a professional employer agreement with such organization 44 and the payroll expense attributable to such organization itself, multi- 45 plying each of those payroll expense amounts by the applicable rate set 46 forth in this paragraph and adding those products together. 47 (2) For individuals in calendar years beginning before January first, 48 two thousand twenty-six: (A) [ ] the tax is imposed at a 49 rate of thirty-four hundredths (.34) percent of the net earnings from 50 self-employment of individuals that are attributable to the MCTD, in the 51 counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and 52 Westchester, if such earnings attributable to the MCTD exceed fifty 53 thousand dollars for the tax year. 54 (B) [ ] the tax is imposed at a rate of sixty 55 hundredths (.60) percent of the net earnings from self-employment of 56 individuals that are attributable to the MCTD, in the counties of Bronx, S. 3009--C 150 A. 3009--C

1 Kings, New York, Queens, and Richmond, if such earnings attributable to 2 the MCTD exceed fifty thousand dollars for the tax year. 3 (3) For individuals in calendar years beginning on and after January 4 first, two thousand twenty-six: (A) the tax is imposed at a rate of 5 sixty hundredths (.60) percent of the net earnings from self-employment 6 of individuals that are attributable to MCTD zone one, if such earnings 7 attributable to the MCTD exceed one hundred fifty thousand dollars for 8 the tax year. 9 (B) the tax is imposed at a rate of thirty-four hundredths (.34) 10 percent of the net earnings from self-employment of individuals that are 11 attributable to MCTD zone two, if such earnings attributable to the MCTD 12 exceed one hundred fifty thousand dollars for the tax year. 13 (b)(1) An individual having net earnings from self-employment from 14 activity both within and without the metropolitan commuter transporta- 15 tion district is required to allocate and apportion such net earnings to 16 the MCTD in the manner required for allocation and apportionment of 17 income under article twenty-two of this chapter. 18 (2) In the case of individuals with earnings from self-employment, the 19 net earnings from self employment threshold in [ ] paragraphs 20 two or three of subsection (a) of this section will be computed on an 21 individual basis regardless of whether that individual filed a joint 22 personal income tax return. 23 (c) The determination of whether a covered employee is employed within 24 the MCTD will be made by utilizing the rules applicable to the jurisdic- 25 tion of employment for purposes of the statewide wage reporting system 26 under section one hundred seventy-one-a of this chapter and substituting 27 the MCTD for the state in that application. 28 § 3. Subdivision 4 of section 1270-h of the public authorities law is 29 renumbered subdivision 5 and a new subdivision 4 is added to read as 30 follows: 31 4. Commencing September first, two thousand twenty-five, no later than 32 the last business day of each month, after satisfying the requirements 33 of any debt service or reserve requirements, if any, of any resolution 34 authorizing bonds, notes or other obligations, the authority shall 35 transfer twenty-eight and five-tenths percent of the revenue, including 36 taxes, interest and penalties collected in accordance with article twen- 37 ty-three of the tax law to the 2025 to 2029 capital program account in 38 the metropolitan transportation authority capital lockbox fund estab- 39 lished pursuant to section five hundred fifty-three-j of this chapter. 40 § 4. Section 553-j of the public authorities law, as added by section 41 5 of subpart A of part ZZZ of chapter 59 of the laws of 2019, is amended 42 to read as follows: 43 § 553-j. [ 44 ] Metropolitan transportation authority 45 capital lockbox fund . 1. The authority shall establish a fund to be 46 known as the [ ] metropolitan transpor- 47 tation authority capital lockbox fund which shall be kept separate from 48 and shall not be commingled with any other monies of the authority. The 49 fund shall consist of two separate and distinct accounts: (i) the "2020 50 to 2024 capital program account" and (ii) the "2025 to 2029 capital 51 program account". 52 (a) The 2020 to 2024 capital program account shall consist of all 53 monies received by the authority pursuant to article forty-four-C of the 54 vehicle and traffic law, subdivision twelve-a of section five hundred 55 fifty-three of this title, and revenues of the real estate transfer tax 56 deposited pursuant to subdivision (b) of section fourteen hundred twen- S. 3009--C 151 A. 3009--C

1 ty-one of the tax law, and sales tax pursuant to subdivision (c) of 2 section eleven hundred forty-eight of the tax law, subparagraph (B) of 3 paragraph five of subdivision (c) of section twelve hundred sixty-one of 4 the tax law, and funds appropriated from the central business district 5 trust fund established pursuant to section [ ] ninety-nine- 6 ff of the state finance law. 7 (b) The 2025 to 2029 capital program account shall consist of all 8 monies deposited pursuant to subdivision four of section twelve hundred 9 seventy-h of this chapter. 10 2. Monies in the [ ] 2020 to 2024 capital program account shall be 11 applied, subject to agreements with bondholders and applicable federal 12 law, to the payment of operating, administration, and other necessary 13 expenses of the authority, or to the city of New York subject to the 14 memorandum of understanding executed pursuant to subdivision two-a of 15 section seventeen hundred four of the vehicle and traffic law properly 16 allocable to such program, including the planning, designing, construct- 17 ing, installing or maintaining of the central business district tolling 18 program, including, without limitation, the central business district 19 tolling infrastructure, the central business district tolling collection 20 system and the central business district tolling customer service 21 center, and the costs of any metropolitan transportation authority capi- 22 tal projects included within the 2020 to 2024 MTA capital program or any 23 successor programs. Monies in the [ ] 2020 to 2024 capital program 24 account may be: (a) pledged by the authority to secure and be applied to 25 the payment of the bonds, notes or other obligations of the authority to 26 finance the costs of the central business district tolling program, 27 including, without limitation, the central business district tolling 28 infrastructure, the central business district tolling collection system 29 and the central business district tolling customer service center, and 30 the costs of any metropolitan transportation authority capital projects 31 included within the 2020 to 2024 MTA capital program or any successor 32 programs, including debt service, reserve requirements, if any, the 33 payment of amounts required under bond and note facilities or agreements 34 related thereto, the payment of federal government loans, security or 35 credit arrangements or other agreements related thereto; or (b) used by 36 the authority for the payment of such capital costs of the central busi- 37 ness district tolling program and the costs of any metropolitan trans- 38 portation authority capital projects included within the 2020 to 2024 39 MTA capital program or any successor programs; or (c) transferred to the 40 metropolitan transportation authority and (1) pledged by the metropol- 41 itan transportation authority to secure and be applied to the payment of 42 the bonds, notes or other obligations of the metropolitan transportation 43 authority to finance the costs of any metropolitan transportation 44 authority capital projects included within the 2020 to 2024 MTA capital 45 program or any successor programs, including debt service, reserve 46 requirements, if any, the payment of amounts required under bond and 47 note facilities or agreements related thereto, the payment of federal 48 government loans, security or credit arrangements or other agreements 49 related thereto, or (2) used by the metropolitan transportation authori- 50 ty for the payment of or to reimburse the costs , including debt service, 51 of any metropolitan transportation authority capital projects included 52 within the 2020 to 2024 MTA capital program or any successor programs. 53 Such revenues shall only supplement and shall not supplant any federal, 54 state, or local funds expended by the authority or the metropolitan 55 transportation authority, or such authority's or metropolitan transpor- 56 tation authority's affiliates or subsidiaries for such respective S. 3009--C 152 A. 3009--C

1 purposes. Central business district toll revenues may be used as 2 required to obtain, utilize, or maintain federal authorization to 3 collect tolls on federal aid highways. 4 2-a. Monies in the 2025 to 2029 capital program account shall be 5 applied, subject to agreements with bondholders and applicable federal 6 law, to the payment of the costs of any metropolitan transportation 7 authority capital projects included within the 2025 to 2029 MTA capital 8 program or any successor programs. Monies in the 2025 to 2029 capital 9 program account may be: (a) pledged by the authority to secure and be 10 applied to the payment of the bonds, notes or other obligations of the 11 authority to finance the costs of any metropolitan transportation 12 authority capital projects included within the 2025 to 2029 MTA capital 13 program or any successor programs, including debt service, reserve 14 requirements, if any, the payment of amounts required under bond and 15 note facilities or agreements related thereto, the payment of federal 16 government loans, security or credit arrangements or other agreements 17 related thereto; or (b) used by the authority for the payment of such 18 capital costs of any metropolitan transportation authority capital 19 projects included within the 2025 to 2029 MTA capital program or any 20 successor programs; or (c) transferred to the metropolitan transporta- 21 tion authority and (1) pledged by the metropolitan transportation 22 authority to secure and be applied to the payment of the bonds, notes or 23 other obligations of the metropolitan transportation authority to 24 finance the costs of any metropolitan transportation authority capital 25 projects included within the 2025 to 2029 MTA capital program or any 26 successor programs, including debt service, reserve requirements, if 27 any, the payment of amounts required under bond and note facilities or 28 agreements related thereto, the payment of federal government loans, 29 security or credit arrangements or other agreements related thereto, or 30 (2) used by the metropolitan transportation authority for the payment of 31 or to reimburse the costs, including debt service, of any metropolitan 32 transportation authority capital projects included within the 2025 to 33 2029 MTA capital program or any successor programs. Such revenues shall 34 only supplement and shall not supplant any federal, state, or local 35 funds expended by the authority or the metropolitan transportation 36 authority, or such authority's or metropolitan transportation authori- 37 ty's affiliates or subsidiaries for such respective purposes. 38 3. Any monies deposited in the fund shall be held in the fund free and 39 clear of any claim by any person arising out of or in connection with 40 article forty-four-C of the vehicle and traffic law [ ] , subdivision 41 twelve-a of section five hundred fifty-three of this title , and article 42 twenty-three of the tax law . Without limiting the generality of the 43 foregoing, no person paying any amount that is deposited into the fund 44 shall have any right or claim against the authority or the metropolitan 45 transportation authority, any of their bondholders, any of the authori- 46 ty's or the metropolitan transportation authority's subsidiaries or 47 affiliates to any monies in or distributed from the fund or in respect 48 of a refund, rebate, credit or reimbursement of monies arising out of or 49 in connection with article forty-four-C of the vehicle and traffic law 50 [ ] , subdivision twelve-a of section five hundred fifty-three of this 51 title , and article twenty-three of the tax law . 52 3-a. Of the capital project costs paid by this fund: eighty percent 53 shall be capital project costs of the New York city transit authority 54 and its subsidiary, Staten Island Rapid Transit Operating Authority, and 55 MTA Bus with priority given to the subway system, new signaling, new 56 subway cars, track and car repair, accessibility, buses and bus system S. 3009--C 153 A. 3009--C

1 improvements and further investments in expanding transit availability 2 to areas in the outer boroughs that have limited mass transit options; 3 ten percent shall be capital project costs of the Long Island Rail Road, 4 including but not limited to, parking facilities, rolling stock, capaci- 5 ty enhancements, accessibility, and expanding transit availability to 6 areas in the Metropolitan Commuter Transportation District that have 7 limited mass transit options; and ten percent shall be capital project 8 costs of the Metro-North Commuter Railroad Company, including but not 9 limited to, parking facilities, rolling stock, capacity enhancements, 10 accessibility, and expanding transit availability to areas in the Metro- 11 politan Commuter Transportation District that have limited mass transit 12 options. 13 4. The authority shall report annually on all receipts and expendi- 14 tures of the fund and each account within the fund . The report shall 15 detail operating expenses of the central business district tolling 16 program and all fund expenditures including capital projects. The report 17 shall be readily available to the public, and shall be posted on the 18 authority's website and be submitted to the governor, the temporary 19 president of the senate, the speaker of the assembly, the mayor and 20 council of the city of New York, the metropolitan transportation author- 21 ity board, and the metropolitan transportation authority capital program 22 review board. 23 5. Any operating funding used for the purposes of a central business 24 district tolling program shall only be from [ ] the 2020 to 2024 25 capital program account and shall be approved, annually, in a plan of 26 expenditures, by the director of the budget. 27 § 5. This act shall take effect immediately; provided, however, that 28 sections three and four of this act shall apply to tax quarters begin- 29 ning on and after July 1, 2025.

30 PART WW

31 Section 1. Paragraph 2 of subdivision (d) of section 1109 of the tax 32 law, as added by chapter 485 of the laws of 1981, is amended to read as 33 follows: 34 (2) On or before the twelfth day of each month, after reserving such 35 amount for such refunds and such costs, the commissioner of taxation and 36 finance shall certify to the comptroller the amount of all revenues so 37 received during the prior month as a result of the taxes, interest and 38 penalties so imposed and in addition on or before the last day of June 39 the commissioner shall certify the amount of such revenues received 40 during and including the first twenty-five days of June. [ 41 42 43 44 ] Fifteen percent of 45 the revenues so certified shall be deposited by the comptroller in the 46 mass transportation operating assistance fund established by section 47 eighty-eight-a of the state finance law to the credit of the metropol- 48 itan mass transportation operating assistance account therein. Eighty- 49 five percent of the revenues so certified shall be deposited by the 50 comptroller in the dedicated mass transportation trust fund established 51 pursuant to section eighty-nine-c of the state finance law to be 52 distributed as follows: eighty-five percent of such amount shall be 53 allocated to the New York city transit authority and its subsidiaries 54 and the Staten Island rapid transit operating authority and fifteen S. 3009--C 154 A. 3009--C

1 percent of such amount shall be allocated to the Long Island Rail Road 2 Company and Metro-North commuter railroad company in accordance with the 3 procedures for payment and distribution specified in section twelve 4 hundred seventy-c of the public authorities law, for payment, subject to 5 appropriation, to the metropolitan transportation authority dedicated 6 tax fund established pursuant to section twelve hundred seventy-c of the 7 public authorities law. 8 § 2. Paragraph 3 of subdivision g of section 1109 of the tax law, as 9 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 10 amended to read as follows: 11 (3) By the fifteenth day of the month in which the commissioner has 12 made the certifications to the comptroller described in paragraph two of 13 this subdivision, the comptroller shall bill any county, city or school 14 district in such metropolitan commuter transportation district which 15 provides such clothing and footwear exemption, and any city in such 16 district in which the taxes imposed by section eleven hundred eight of 17 this part are in effect, an amount equal to one-half of the amount 18 certified to the comptroller by the commissioner in respect of such 19 county, city or school district; and such county, city or school 20 district shall pay the amount of such bill to the comptroller by the 21 twenty-fifth day of such month. The comptroller shall deposit any such 22 amounts received [ 23 24 25 ] as provided in subdivision (d) of this section . 26 § 3. Paragraph 4 of subdivision g of section 1109 of the tax law, as 27 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 28 amended to read as follows: 29 (4) In the event that a county, city or school district imposing tax 30 pursuant to the authority of subpart B of part I of article twenty-nine 31 of this chapter does not pay in full a bill described in paragraph three 32 of this subdivision by the twenty-fifth day of the month described in 33 paragraphs two and three of this subdivision, the comptroller shall 34 deduct any amount not paid from the amount of the next payment or 35 payments due such county, city or school district pursuant to subdivi- 36 sion (c) of section twelve hundred sixty-one of this chapter until such 37 amount not paid has been recovered. The comptroller shall deposit the 38 amounts so deducted and recovered [ 39 ] to be credited as provided in paragraph three of this 40 subdivision. 41 § 4. Paragraph 5 of subdivision g of section 1109 of the tax law, as 42 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 43 amended to read as follows: 44 (5) In the event that a city in which the taxes imposed by section 45 eleven hundred eight of this article are in effect does not pay in full 46 a bill described in paragraph three of this subdivision by the twenty- 47 fifth day of the month described in paragraphs two and three of this 48 subdivision, the comptroller shall deduct any amount not paid from the 49 amount of any other moneys due such city from the comptroller, not 50 otherwise pledged, dedicated or encumbered pursuant to other state law, 51 until such amount not paid has been recovered. The comptroller shall 52 deposit the amounts so deducted and recovered [ 53 ] to be credited as provided in paragraph 54 three of this subdivision. S. 3009--C 155 A. 3009--C

1 § 5. Paragraph 7 of subdivision g of section 1109 of the tax law, as 2 amended by section 2 of part GG of chapter 57 of the laws of 2010, is 3 amended to read as follows: 4 (7) On the same date that the comptroller is required to bill a coun- 5 ty, city or school district an amount as provided in paragraph three of 6 this subdivision, the comptroller shall, after having first made any 7 deposits required by section ninety-two-r of the state finance law and 8 only to the extent that there are moneys remaining after having made 9 such required deposits, withdraw from the state treasury, to the debit 10 of the general fund, an amount equal to the total of the amounts 11 required to be billed to counties, cities and school districts pursuant 12 to such subdivision three and deposit such total amount [ 13 ] to be credited as provided in 14 such paragraph three. The amount of any over calculation or under calcu- 15 lation determined in paragraph six of this subdivision shall likewise be 16 applied to the amounts required to be deposited under this paragraph, so 17 that the amounts deposited under this paragraph equal the total of the 18 amounts required to be billed to counties, cities and school districts 19 under such paragraph three, as adjusted, pursuant to paragraph six of 20 this subdivision. 21 § 6. Paragraph 3 of subdivision h of section 1109 of the tax law, as 22 amended by section 2 of part M-1 of chapter 109 of the laws of 2006, is 23 amended to read as follows: 24 (3) The comptroller shall, after having first made any deposits 25 required by section ninety-two-r of the state finance law and only to 26 the extent that there are moneys remaining after having made such 27 required deposits, withdraw from the state treasury, to the debit of the 28 general fund, and shall deposit the amount certified by the commissioner 29 as such revenue foregone [ 30 31 32 ] as provided in subdivision (d) of this section . 33 § 7. Paragraph (a) of subdivision 7 of section 88-a of the state 34 finance law, as added by chapter 481 of the laws of 1981, is amended to 35 read as follows: 36 (a) The "metropolitan mass transportation operating assistance 37 account" shall consist of that proportion of the revenues derived from 38 the taxes for the metropolitan transportation district imposed by 39 section eleven hundred nine of the tax law as specified in such section 40 and that proportion of the receipts received pursuant to the tax imposed 41 by article [ ] nine-A of such law as specified in section one 42 hundred seventy-one-a of such law, and that proportion of the receipts 43 received pursuant to the tax imposed by article nine of such law as 44 specified in section two hundred five of such law, and the receipts 45 required to be deposited pursuant to the provisions of section one 46 hundred eighty-two-a of such law , and all other moneys credited or 47 transferred thereto from any other fund or source pursuant to law. 48 § 8. Subdivision 3 of section 89-c of the state finance law, as 49 amended by chapter 56 of the laws of 1993, is amended to read as 50 follows: 51 3. Moneys in the dedicated mass transportation trust fund shall, 52 following appropriation by the legislature, be utilized for the recon- 53 struction, replacement, purchase, modernization, improvement, recondi- 54 tioning, preservation and maintenance of mass transit facilities, vehi- 55 cles and rolling stock, or the payment of debt service or operating 56 expenses incurred by mass transit operating agencies, and for rail S. 3009--C 156 A. 3009--C

1 projects authorized pursuant to section fourteen-j of the transportation 2 law, for payments to the general debt service fund of amounts equal to 3 amounts required for service contract payments related to rail projects 4 as provided and authorized by section three hundred eighty-six of the 5 public authorities law and for programs to assist small and minority and 6 women-owned firms engaged in transportation construction and recon- 7 struction projects, including a revolving fund for working capital 8 loans, and a bonding guarantee assistance program in accordance with 9 provisions of this chapter. It is the intent of the governor to submit 10 and the legislature to enact in a budget bill for fiscal year nineteen 11 hundred ninety-four--ninety-five, two appropriations from the dedicated 12 mass transportation trust fund to the metropolitan transportation 13 authority dedicated tax fund established by section twelve hundred 14 seventy-c of the public authorities law. One such appropriation shall be 15 equal to the amounts expected to be available for such purpose pursuant 16 to subdivision (d) of section three hundred one-j of the tax law during 17 the nineteen hundred ninety-four--ninety-five fiscal year and shall be 18 effective in that fiscal year. The other such appropriation shall be 19 equal to the amount expected to be available for such purpose pursuant 20 to subdivision (d) of section three hundred one-j of the tax law during 21 the nineteen hundred ninety-five--ninety-six fiscal year and shall, 22 notwithstanding the provisions of section forty of this chapter, take 23 effect on the first day of the nineteen hundred ninety-five--ninety-six 24 fiscal year and lapse on the last day of that fiscal year. It is the 25 intent of the governor to submit and the legislature to enact for each 26 fiscal year after the nineteen hundred ninety-four--ninety-five fiscal 27 year in an annual budget bill: (i) an appropriation for the amount 28 expected to be available in the dedicated mass transportation trust fund 29 during such fiscal year for the metropolitan transportation authority 30 pursuant to subdivision (d) of section three hundred one-j of the tax 31 law and paragraph two of subdivision (d) of section eleven hundred nine 32 of the tax law , including any amounts on deposit therein from any prior 33 year which have been previously appropriated, and (ii) an appropriation 34 of the amounts projected by the director of the budget to be deposited 35 in the metropolitan transportation authority dedicated tax fund from the 36 dedicated mass transportation trust fund pursuant to subdivision (d) of 37 section three hundred one-j of the tax law and paragraph two of subdivi- 38 sion (d) of section eleven hundred nine of the tax law, for the next 39 succeeding fiscal year. Such appropriation for payment of revenues 40 expected to be received in the succeeding fiscal year shall, notwith- 41 standing section forty of this chapter, take effect on the first day of 42 such succeeding fiscal year and lapse on the last day of such fiscal 43 year. If for any fiscal year commencing on or after the first day of 44 April, nineteen hundred ninety-four the governor fails to submit a budg- 45 et bill containing the foregoing, or the legislature fails to enact a 46 bill with such provisions, then the authority shall notify the comp- 47 troller, the director of the budget, the chairperson of the senate 48 finance committee and the chairperson of the assembly ways and means 49 committee of amounts required to be disbursed from the appropriation 50 made during the preceding fiscal year for payment in such fiscal year. 51 In no event shall the comptroller make any payments from such appropri- 52 ation prior to May first of such fiscal year, and unless and until the 53 director of the budget, the chairperson of the senate finance committee 54 and the chairperson of the assembly ways and means committee have been 55 notified of the required payments and the timing of such payments to be 56 made from the dedicated mass transportation trust fund to the metropol- S. 3009--C 157 A. 3009--C

1 itan transportation authority dedicated tax fund at least forty-eight 2 hours prior to any such payments. Until such time as payments pursuant 3 to such appropriation are made in full, revenues in the dedicated mass 4 transportation trust fund shall not be paid over to any person other 5 than the metropolitan transportation authority. Nothing contained in 6 this subdivision shall be deemed to restrict the right of the state to 7 amend, repeal, modify or otherwise alter statutes imposing or relating 8 to the taxes imposed pursuant to section three hundred one-j of the tax 9 law , the taxes imposed pursuant to paragraph two of subdivision (d) of 10 section eleven hundred nine of the tax law, or the appropriations relat- 11 ing thereto. The metropolitan transportation authority shall not include 12 within any resolution, contract or agreement with holders of the bonds 13 or notes issued under section twelve hundred sixty-nine of the public 14 authorities law any provision which provides that a default occurs as a 15 result of the state exercising its right to amend, repeal, modify or 16 otherwise alter such taxes or appropriations. 17 § 9. Subdivision 2 of section 1270-c of the public authorities law, as 18 added by chapter 56 of the laws of 1993, is amended to read as follows: 19 2. There shall be deposited, pursuant to appropriation, into the fund 20 the moneys deposited in the dedicated mass transportation trust fund for 21 payment to the metropolitan transportation authority dedicated tax fund 22 pursuant to the provisions of subdivision (d) of section three hundred 23 one-j of the tax law, paragraph two of subdivision (d) of section eleven 24 hundred nine of the tax law, and any other moneys collected for or 25 transferred to such fund pursuant to section eighty-eight-a of the state 26 finance law and any other provision of law directing or permitting the 27 deposit of moneys in such fund. 28 § 10. Subdivision 3 of section 1270-c of the public authorities law, 29 as amended by section 30 of part O of chapter 61 of the laws of 2000, is 30 amended to read as follows: 31 3. Moneys in the fund may be (a) pledged by the authority to secure 32 and be applied to the payment of its bonds, notes or other obligations 33 specified by the authority and issued to finance (i) transit projects 34 undertaken for the New York city transit authority and its subsidiaries 35 and (ii) transportation facilities undertaken for the authority and its 36 subsidiaries and (b) used for payment of operating costs, and capital 37 costs, including debt service, reserve requirements, if any, the payment 38 of amounts required under bond and note facilities or agreements related 39 thereto, the payment of federal government loans, security or credit 40 arrangements or other agreements related thereto, and the payment of all 41 costs related to such obligations, of or for the authority, the New York 42 city transit authority and their subsidiaries as the authority shall 43 determine. To the extent moneys in the fund have been pledged by the 44 authority to secure and pay its bonds, notes or other obligations as 45 herein provided, moneys deposited into the fund shall first be deposited 46 into the pledged amounts account to the extent necessary to satisfy the 47 requirements of any debt service or reserve requirements, if any, of the 48 resolution authorizing such bonds, notes or other obligations. After 49 satisfaction of such requirements of the resolution, or if the authority 50 has not so pledged the moneys in the fund, moneys deposited in the fund 51 shall be directly deposited into the operating and capital costs account 52 and, subject to the provisions of any resolutions of the authority not 53 secured by the pledged amounts account, transferred forthwith to or for 54 the benefit of the New York city transit authority and its subsidiaries 55 and the Staten Island rapid transit operating authority (the "TA") and 56 to and for the benefit of the Long Island Rail Road company and the S. 3009--C 158 A. 3009--C

1 Metro-North commuter rail road company (the "CRR") as provided in this 2 section. 3 Moneys in the operating and capital costs account which were deposited 4 in the fund pursuant to appropriation from moneys deposited in the dedi- 5 cated mass transportation trust fund for payment to the metropolitan 6 transportation authority dedicated tax fund pursuant to subdivision (d) 7 of section three hundred one-j of the tax law or paragraph two of subdi- 8 vision (d) of section eleven hundred nine of the tax law (the "remaining 9 PBT amount") shall be distributed by the authority as follows: an amount 10 equal to the debt service incurred in such calendar year as a result of 11 obligations issued and secured by moneys in the fund, to the extent such 12 debt service is to be paid from money deposited in the fund pursuant to 13 appropriation from moneys deposited in the dedicated mass transportation 14 trust fund for payment to the metropolitan transportation authority 15 dedicated tax fund pursuant to subdivision (d) of section three hundred 16 one-j of the tax law or paragraph two of subdivision (d) of section 17 eleven hundred nine of the tax law ("PBT debt service"), shall be added 18 to the remaining PBT amount. The sum of these figures shall then be 19 allocated as follows: eighty-five per centum of such sum shall be allo- 20 cated to the TA and fifteen per centum of such sum shall be allocated to 21 the CRR. The amounts so allocated shall then be reduced respectively by 22 the proportional amount of PBT debt service attributable to the payments 23 for transit projects undertaken for the TA and transportation facility 24 projects undertaken for the CRR. The remaining amounts shall constitute 25 the respective distributable shares of the remaining PBT amount and 26 shall be distributed to or for the benefit of the TA and the CRR. 27 Moneys in the operating and capital costs account which were deposited 28 in the fund pursuant to section eighty-eight-a of the state finance law 29 (the "remaining MMTOA amount") shall be distributed by the authority as 30 follows: an amount equal to the debt service incurred in such calendar 31 year as a result of obligations issued and secured by money in the fund, 32 to the extent such debt service is to be paid from money deposited in 33 the fund pursuant to section eighty-eight-a of the state finance law 34 ("MMTOA debt service"), shall be added to the remaining MMTOA amount. 35 The sum of these figures shall then be allocated as follows: there shall 36 be allocated (i) to the TA an amount of such sum which bears the same 37 proportion to such sum as the amount appropriated and paid during such 38 calendar year from the metropolitan mass transportation operating 39 assistance account to the authority for the operating expenses of the TA 40 bears to the total amounts so appropriated and paid from such operating 41 assistance account during such calendar year to the TA and CRR combined 42 and (ii) to the CRR an amount of such sum which bears the same propor- 43 tion to such sum as the amount appropriated and paid during such calen- 44 dar year from the metropolitan mass transportation operating assistance 45 account to the CRR bears to the total amounts so appropriated and paid 46 from such operating assistance account during such calendar year to the 47 TA and CRR combined. The amounts so allocated shall then be reduced 48 respectively by the proportional amount of MMTOA debt service attribut- 49 able to the payments for transit projects undertaken for the TA and 50 transportation facility projects undertaken for the CRR. The remaining 51 amounts shall constitute the respective distributable shares of the 52 remaining MMTOA amount and shall be distributed to or for the benefit of 53 the TA and the CRR. In no event shall the authority utilize any measure 54 or calculation for determining such distributable shares other than the 55 formula prescribed herein nor shall the authority take any action which S. 3009--C 159 A. 3009--C

1 would result in the use of such money which is different from or incon- 2 sistent with the use prescribed in this section. 3 To the extent that amounts described in the preceding two paragraphs 4 are distributed more frequently than annually, each such distribution 5 shall be made as nearly as may be practicable in accordance with the 6 allocations described above to the TA and the CRR. Within thirty days 7 after the end of each calendar year, the authority shall certify to the 8 director of the budget, the chairperson of the senate finance committee 9 and the chairperson of the assembly ways and means committee, the amount 10 of money deposited in the fund pursuant to appropriation from moneys 11 deposited in the dedicated mass transportation trust fund for payment to 12 the metropolitan transportation authority dedicated tax fund pursuant to 13 subdivision (d) of section three hundred one-j of the tax law , paragraph 14 two of subdivision (d) of section eleven hundred nine of the tax law, 15 and section eighty-eight-a of the state finance law, the amounts 16 expended from the pledged amounts account for the benefit of the TA and 17 the CRR, and the amounts of the remaining PBT amount and the remaining 18 MMTOA amount distributed during the prior calendar year to the TA and 19 the CRR and specifying in each case the appropriation or appropriations 20 which was the source of such amounts. 21 § 11. Subdivision 4 of section 1270-c of the public authorities law, 22 as added by chapter 56 of the laws of 1993, is amended to read as 23 follows: 24 4. Any money deposited in the fund shall be held in the fund free and 25 clear of any claim by any person arising out of or in connection with 26 article thirteen-A and article twenty-eight of the tax law. Without 27 limiting the generality of the foregoing and without limiting the rights 28 and duties of the commissioner of taxation and finance under article 29 thirteen-A of the tax law, no petroleum business, as defined in section 30 three hundred of the tax law, or any other person, including the state, 31 shall have any right or claim against the authority, any of its bond- 32 holders, the TA or the CRR to any moneys in or distributed from the fund 33 or in respect of a refund, rebate, credit or reimbursement of taxes paid 34 under article thirteen-A and article twenty-eight of the tax law. 35 § 12. This act shall take effect April 1, 2026.

36 PART XX

37 Section 1. Subdivision 12 of section 1269 of the public authorities 38 law, as amended by section 1 of part I of chapter 58 of the laws of 39 2020, is amended to read as follows: 40 12. The aggregate principal amount of bonds, notes or other obli- 41 gations issued after the first day of January, nineteen hundred ninety- 42 three by the authority, the Triborough bridge and tunnel authority and 43 the New York city transit authority to fund projects contained in capi- 44 tal program plans approved pursuant to section twelve hundred sixty- 45 nine-b of this title for the period nineteen hundred ninety-two through 46 two thousand [ ] twenty-nine shall not exceed [ ] one 47 hundred fifteen billion [ ] five hundred million dollars. Such aggre- 48 gate principal amount of bonds, notes or other obligations or the 49 expenditure thereof shall not be subject to any limitation contained in 50 any other provision of law on the principal amount of bonds, notes or 51 other obligations or the expenditure thereof applicable to the authori- 52 ty, the Triborough bridge and tunnel authority or the New York city 53 transit authority. The aggregate limitation established by this subdivi- 54 sion shall not include (i) obligations issued to refund, redeem or S. 3009--C 160 A. 3009--C

1 otherwise repay, including by purchase or tender, obligations thereto- 2 fore issued either by the issuer of such refunding obligations or by the 3 authority, the New York city transit authority or the Triborough bridge 4 and tunnel authority, (ii) obligations issued to fund any debt service 5 or other reserve funds for such obligations, (iii) obligations issued or 6 incurred to fund the costs of issuance, the payment of amounts required 7 under bond and note facilities, federal or other governmental loans, 8 security or credit arrangements or other agreements related thereto and 9 the payment of other financing, original issue premiums and related 10 costs associated with such obligations, (iv) an amount equal to any 11 original issue discount from the principal amount of such obligations or 12 to fund capitalized interest, (v) obligations incurred pursuant to 13 section twelve hundred seven-m of this article, (vi) obligations 14 incurred to fund the acquisition of certain buses for the New York city 15 transit authority as identified in a capital program plan approved 16 pursuant to chapter fifty-three of the laws of nineteen hundred ninety- 17 two, (vii) obligations incurred in connection with the leasing, selling 18 or transferring of equipment, and (viii) bond anticipation notes or 19 other obligations payable solely from the proceeds of other bonds, notes 20 or other obligations which would be included in the aggregate principal 21 amount specified in the first sentence of this subdivision, whether or 22 not additionally secured by revenues of the authority, or any of its 23 subsidiary corporations, New York city transit authority, or any of its 24 subsidiary corporations, or Triborough bridge and tunnel authority. 25 § 2. This act shall take effect immediately. 26 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 27 sion, section or part of this act shall be adjudged by any court of 28 competent jurisdiction to be invalid, such judgment shall not affect, 29 impair, or invalidate the remainder thereof, but shall be confined in 30 its operation to the clause, sentence, paragraph, subdivision, section 31 or part thereof directly involved in the controversy in which such judg- 32 ment shall have been rendered. It is hereby declared to be the intent of 33 the legislature that this act would have been enacted even if such 34 invalid provisions had not been included herein. 35 § 3. This act shall take effect immediately provided, however, that 36 the applicable effective date of Parts A through XX of this act shall be 37 as specifically set forth in the last section of such Parts.