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A03008 Summary:

BILL NOA03008A
 
SAME ASSAME AS UNI. S02008-A
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; amends chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws; relates to the disposition of revenues (Part A); authorizes the commissioner of transportation to impose civil penalties for exceeding posted vehicle weight limits; incrementally increases the maximum number of power units that may be awarded divisible load permits (Part B); provides that public transportation systems under the oversight of the public transportation safety board shall not receive payment if such systems operate in violation of the requirements of the national public transportation safety plan; provides additional powers and duties to the state public transportation safety board (Part C); relates to compliance with new federal regulations and strengthening requirements for motor carriers (Part D); includes the use of any highway, parkway, road, bridge or tunnel without payment of the lawful toll or charge as a theft of services, relates to liability of vehicle owners for toll collection violations, and penalties imposed upon the operator of a vehicle with an altered or obscured license plate while on a toll highway, bridge or tunnel (Part E); allocates three million dollars of assessments from fines and penalties from the city of New York to the general fund (Part F); provides for the regulation of transportation network company services; establishes the New York State TNC Accessibility Task Force; establishes the local transit assistance fund and the transportation network company driver's injury compensation fund (Part G); relates to the waiver of non-driver identification card fees for certain crime victims (Part H); relates to reinstatement fees for non-residents (Part I); increases fees for certificate of title, certain amounts of each fee shall be deposited into the dedicated highway and bridge trust fund (Part J); requires an additional fee of five dollars for certain non-driver identification card or renewal of such card (Part K); relates to the definition of "drug"; relates to the scope of the written test, the suspension of a license for driving while impaired by drugs; relates to license sanctions for refusing to submit to a chemical test; and prohibits the use of mobile telephones and portable electronic devices when a vehicle is not in motion and by persons under the age of eighteen (Part L); relates to extending provisions relating to the empire state economic development fund (Part M); extends chapter 393 of 1994 into 2018 (Part N); relates to the minority and women-owned business enterprise program (Part O); relates to the infrastructure investment act, the definition of an authorized entity that may utilize design-build contracts and the effectiveness thereof (Part P); relates to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permitting additional levels of such expedited service; relates to extending the expiration date thereof (Part Q); relates to streamlining the process by which service of process is served against a corporate or other entity with the secretary of state; and repeals certain provisions of the real property law relating thereto (Part R); relates to streamlining the licensing process for real estate professionals (Part S); increases the level of state assistance to waterfront revitalization programs; permits the secretary to accept payments (Part T); relates to the chairperson of the state athletic commission (Part U); authorizes utility and cable television assessments to provide funds to the department of health from cable television assessment revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation and state from utility assessment revenues (Part V); relates to authorizing the dormitory authority to enter into certain design and construction management agreements (Part W); relates to administrative supervision (Part X); relates to the enforcement of the banking, insurance and financial services laws against unlicensed participants (Part Y); relates to the licensing and regulation of student loan servicers (Part Z); protects vulnerable adults from financial exploitation; defines terms; authorizes a transaction hold if a banking institution reasonably believes that financial exploitation of a vulnerable adult may have occurred, may have been attempted or is being attempted; and that the placement of a transaction hold may be necessary to protect a vulnerable adult's money, assets, or property from financial exploitation (Part AA); relates to the disqualification of bad actors from continued participation in the banking and insurance industries (Part BB); allows certain entities to engage in lending of money to an individual borrower for which no interest or fees are charged and for which the borrower may make full or partial repayment of the loan prior to the disbursement of the loan proceeds without being subject to the requirements of the banking laws (Part CC); relates to creating a paid family leave risk adjustment fund (Part DD); relates to licensed lenders and allowing the superintendent to have the power to adopt regulations that provide an exemption from the licensure requirement for a person or entity when necessary to facilitate low cost lending in any community (Part EE); provides that "home loan", for purposes of prior notices of default, shall include reverse mortgages; and requires a mandatory settlement conference be held prior to foreclosure on a reverse mortgage only if the last surviving borrower's spouse resides on the mortgaged property (Part FF); relates to assessments, distribution of assets and insurers deemed to be in a hazardous financial condition (Part GG); relates to establishing the New York environmental protection and spill remediation account; relates to the implementation of the "clean water infrastructure act of 2017"; and repeals provisions of the environmental conservation law and state finance law relating thereto (Part HH); relates to clean water spending (Part II); relates to deposits and transfers to the environmental protection fund including the transfer of funds to the climate change mitigation and adaptation fund (Part JJ); relates to the donation of excess food and recycling of food scraps (Part KK); relates to the sharing of employees, services and resources by the power authority of the state of New York, canal corporation and department of transportation (Part LL); authorizes the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, zero emissions vehicle and electric vehicle rebate and Fuel NY programs, and to finance the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program, from an assessment on gas and electric corporations (Part MM).
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A03008 Actions:

BILL NOA03008A
 
01/23/2017referred to ways and means
02/17/2017amend (t) and recommit to ways and means
02/17/2017print number 3008a
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A03008 Memo:

Memo not available
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A03008 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 2008--A                                            A. 3008--A
 
                SENATE - ASSEMBLY
 
                                    January 23, 2017
                                       ___________
 
        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
 
        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
 
        AN  ACT to amend chapter 62 of the laws of 2003 amending the vehicle and
          traffic law and other laws relating to increasing certain motor  vehi-
          cle transaction fees, in relation to the disposition of revenues (Part
          A);  to  amend  the  vehicle and traffic law, in relation to divisible
          load permits (Part B); to amend the state finance law and  the  trans-
          portation  law,  in  relation to enhancing the ability of the state to
          enforce state and federal law concerning the safety of  public  trans-
          portation  systems  under  the  oversight of the public transportation
          safety board (Part C);  to  amend  the  vehicle  and  traffic  law  in
          relation  to compliance with new federal regulations and strengthening
          requirements for motor carriers (Part D); to amend the penal  law,  in
          relation to including the use of any highway, parkway, road, bridge or
          tunnel  without  payment  of  the  lawful toll or charge as a theft of
          services; and to amend the vehicle and traffic  law,  in  relation  to
          liability  of  vehicle  owners  for toll collection violations and the
          penalty imposed upon the operator of a  vehicle  with  an  altered  or
          obscured license plate while on a toll highway, bridge or tunnel (Part
          E); to amend the vehicle and traffic law and the state finance law, in
          relation  to  allocation  of three million dollars of assessments from
          the city of New York to the general fund (Part F); to amend the  vehi-
          cle  and  traffic  law,  the insurance law, the executive law, the tax
          law, and the state finance law,  in  relation  to  the  regulation  of
          transportation  network  company  services;  to establish the New York
          State TNC Accessibility Task Force; to  establish  the  transportation
          network  company  driver's  injury compensation fund; and to establish
          the local transit assistance fund (Part G); to amend the  vehicle  and
          traffic  law,  in  relation to the waiver of non-driver identification
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12573-04-7

        S. 2008--A                          2                         A. 3008--A
 
          card fees for crime victims (Part H); to amend the vehicle and traffic
          law, in relation to the reinstatement fee for non-residents (Part  I);
          to  amend  the vehicle and traffic law, in relation to increasing fees
          for  original  and  duplicate certificates of title (Part J); to amend
          the vehicle and traffic  law,  in  relation  to  additional  fees  for
          certain  identification cards (Part K); to amend the vehicle and traf-
          fic law, in relation to the definition of "drug",  the  scope  of  the
          written  test,  the suspension of a license for driving while impaired
          by drugs, the license sanctions for refusing to submit to  a  chemical
          test  and  prohibiting the use of mobile telephones and portable elec-
          tronic devices when a vehicle is not in motion and by persons under 18
          (Part L); to amend the New York state  urban  development  corporation
          act,  in  relation  to  extending  certain  provisions relating to the
          empire state economic development fund (Part M); to amend chapter  393
          of  the  laws  of  1994, amending the New York state urban development
          corporation act, relating to the powers of the New  York  state  urban
          development  corporation  to make loans, in relation to the effective-
          ness thereof (Part N); to amend chapter  261  of  the  laws  of  1988,
          amending the state finance law and other laws relating to the New York
          state  infrastructure  trust  fund,  in  relation  to the minority and
          women-owned business enterprise program (Part O); to amend the infras-
          tructure investment act, in relation to the definition of  an  author-
          ized  entity  that may utilize design-build contracts, and in relation
          to the effectiveness thereof (Part P); to amend chapter 21 of the laws
          of 2003, amending the executive law relating to permitting the  secre-
          tary  of  state to provide special handling for all documents filed or
          issued by the division of corporations and to permit additional levels
          of such expedited service, in relation  to  extending  the  expiration
          date  thereof  (Part  Q);  to  amend the business corporation law, the
          cooperative corporations law, the executive law, the  general  associ-
          ations  law,  the  general business law, the limited liability company
          law, the not-for-profit corporation  law,  the  partnership  law,  the
          private  housing  finance  law, the arts and cultural affairs law, the
          real property law and the tax law, in  relation  to  streamlining  the
          process  by  which service of process is served against a corporate or
          other entity with the  secretary  of  state;  and  to  repeal  certain
          provisions  of  the  real  property  law relating thereto (Part R); to
          amend the real property law, in relation to streamlining the licensing
          process for real estate professionals (Part S); to amend the  environ-
          mental  conservation  law  and the executive law, in relation to local
          waterfront revitalization (Part T); to amend  the  executive  law,  in
          relation to the chairperson of the state athletic commission (Part U);
          authorizing  utility and cable television assessments to provide funds
          to the department of health from cable television assessment  revenues
          and  to  the  departments  of  agriculture  and markets, environmental
          conservation, office of parks, recreation and  historic  preservation,
          and  state from utility assessment revenues (Part V); to amend chapter
          58 of the laws of 2012 amending the public authorities law relating to
          authorizing the dormitory authority to enter into certain  design  and
          construction  management  agreements,  in relation to making permanent
          certain authority of the dormitory authority of the state of New  York
          (Part  W);  to  amend the insurance law, in relation to administrative
          supervision (Part X); to amend the insurance law, the banking law, and
          the financial services law in  relation  to  the  enforcement  of  the
          insurance,  banking,  and  financial  services laws against unlicensed
          participants (Part Y); to amend the banking law, in  relation  to  the

        S. 2008--A                          3                         A. 3008--A
 
          licensing  and regulation of student loan servicers (Part Z); to amend
          the banking law, in relation  to  protecting  vulnerable  adults  from
          financial exploitation (Part AA); to amend the financial services law,
          in  relation  to  the  disqualification  of  bad actors from continued
          participation in the banking and insurance industries  (Part  BB);  to
          amend the banking law, in relation to the regulation and authorization
          of  certain  lending  circle  programs  (Part  CC); to amend the state
          finance law, in relation to creating a paid family leave risk  adjust-
          ment fund (Part DD); to amend the banking law, in relation to licensed
          lenders  (Part  EE); to amend the real property action and proceedings
          law and civil practice law and rules, in relation to reverse mortgages
          (Part FF); to amend the financial services law, in relation to assess-
          ments to defray operating expenses of the department (Subpart  A);  to
          amend  the  insurance  law,  in relation to the distribution of assets
          (Subpart B); and to amend the insurance law, in relation  to  insurers
          deemed  to be in a hazardous financial condition (Subpart C)(Part GG);
          to amend the navigation law, in relation to establishing the New  York
          environmental  protection  and spill remediation account (Part HH); to
          amend the environmental conservation law, the state finance  law,  the
          public  authorities law, and the soil and water conservation districts
          law, in relation to the implementation of the "clean water infrastruc-
          ture act of 2017"; and to repeal certain provisions  of  the  environ-
          mental  conservation  law  and  the state finance law relating thereto
          (Part II); to amend  the  state  finance  law  and  the  environmental
          conservation  law, in relation to environmental protection fund depos-
          its and transfers (Part JJ); to amend the  environmental  conservation
          law,  in relation to the donation of excess food and recycling of food
          scraps (Part KK); to amend the public authorities law and  the  public
          officers  law,  in  relation to the sharing of employees, services and
          resources by the power authority of  the  state  of  New  York,  canal
          corporation and department of transportation (Part LL); and to author-
          ize the energy research and development authority to finance a portion
          of  its  research, development and demonstration, policy and planning,
          and Fuel NY programs, as  well  as  the  department  of  environmental
          conservation's  climate  change program and the department of agricul-
          ture and markets' Fuel NY program, from an assessment on gas and elec-
          tric corporations (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  which are necessary to implement the state fiscal plan for the 2017-2018
     3  state fiscal year. Each component is  wholly  contained  within  a  Part
     4  identified as Parts A through MM. 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, includ-
     7  ing the effective date of the Part, which makes a reference to a section
     8  "of  this  act", when used in connection with that particular component,
     9  shall be deemed to mean and refer to the corresponding  section  of  the
    10  Part  in  which  it  is  found. Section three of this act sets forth the
    11  general effective date of this act.
 
    12                                   PART A

        S. 2008--A                          4                         A. 3008--A

     1    Section 1. Section 13 of part U1 of chapter 62 of  the  laws  of  2003
     2  amending the vehicle and traffic law and other laws relating to increas-
     3  ing  certain  motor vehicle transaction fees, as amended by section 1 of
     4  part A of chapter 58 of the laws of 2015, is amended to read as follows:
     5    §  13.  This  act shall take effect immediately; provided however that
     6  sections one through seven of this act, the amendments to subdivision  2
     7  of  section  205  of  the tax law made by section eight of this act, and
     8  section nine of this act shall expire and be deemed repealed on April 1,
     9  2020; [provided further, however, that the amendments to  subdivision  3
    10  of  section  205  of the tax law made by section eight of this act shall
    11  expire and be deemed repealed on  March  31,  2018;]  provided  further,
    12  however,  that  the  provisions of section eleven of this act shall take
    13  effect April 1, 2004 and shall expire and be deemed repealed on April 1,
    14  2020.
    15    § 2. This act shall take effect immediately and  shall  be  deemed  to
    16  have been in full force and effect on and after April 1, 2017.
 
    17                                   PART B
 
    18    Section 1. Paragraph (f) of subdivision 15 of section 385 of the vehi-
    19  cle  and traffic law, as amended by section 4 of part C of chapter 59 of
    20  the laws of 2004, the third undesignated paragraph as amended by chapter
    21  277 of the laws of 2014, is amended to read as follows:
    22    (f) 1. The department of transportation, or other  issuing  authority,
    23  may  issue  an  annual  permit for a vehicle designed and constructed to
    24  carry loads that are not of one piece or item, which  is  registered  in
    25  this  state. Motor carriers having apportioned vehicles registered under
    26  the international registration plan must either have a  currently  valid
    27  permit at the time this provision becomes effective or shall have desig-
    28  nated New York as its base state or one of the eligible jurisdictions of
    29  operation  under  the  international  registration  plan  in order to be
    30  eligible to receive a permit issued pursuant  to  [subparagraph]  clause
    31  (i),  (ii)  or (ii-a) of subparagraph eight of this paragraph. No permit
    32  issued pursuant to this paragraph shall be valid for  the  operation  or
    33  movement  of  vehicles on any state or other highway within any city not
    34  wholly included within one county unless such permit was issued  by  the
    35  city department of transportation of such city.
    36    2.  Effective January first, two thousand five, no vehicle or combina-
    37  tion of vehicles issued a permit pursuant to this paragraph shall  cross
    38  a  bridge designated as an R-posted bridge by the commissioner of trans-
    39  portation or any other permit issuing authority absent  a  determination
    40  by  such commissioner or permit issuing authority that the permit appli-
    41  cant has demonstrated special circumstances warranting the  crossing  of
    42  such  bridge  or  bridges  and  a  determination by such commissioner or
    43  permit issuing authority that such bridge  or  bridges  may  be  crossed
    44  safely,  provided, however, that in no event shall a vehicle or combina-
    45  tion of vehicles issued a permit under this paragraph  be  permitted  to
    46  cross  a  bridge  designated  as  an  R-posted bridge if such vehicle or
    47  combination of vehicles has a maximum gross weight exceeding one hundred
    48  two  thousand  pounds,  and  provided  further,  however,  that  nothing
    49  contained herein shall be deemed to authorize any vehicle or combination
    50  of vehicles to cross any such bridge within any city not wholly included
    51  within  one  county  unless  such vehicle or combination of vehicles has
    52  been issued a valid permit by the city department of  transportation  of
    53  such city pursuant to this subdivision.

        S. 2008--A                          5                         A. 3008--A
 
     1    3.  No  vehicle having a model year of two thousand six or newer shall
     2  be issued a permit pursuant to this paragraph unless each axle  of  such
     3  vehicle  or  combination  of vehicles, other than steerable or trackable
     4  axles, is equipped with two tires on each side  of  the  axle,  any  air
     5  pressure  controls  for  lift  axles  are located outside the cab of the
     6  vehicle and are beyond the reach of occupants of the cab while the vehi-
     7  cle is in motion, the weight on any grouping of two  or  more  axles  is
     8  distributed  such  that no axle in the grouping carries less than eighty
     9  percent of any other axle in the  grouping  and  any  liftable  axle  is
    10  steerable  or  trackable;  and, further provided, after December thirty-
    11  first, two thousand nineteen, no permit shall be issued pursuant to this
    12  paragraph to a vehicle of any model year that does not meet the require-
    13  ments of this provision, except that such permits may be issued prior to
    14  January first, two thousand twenty to a vehicle that does not  meet  the
    15  requirement  concerning axle grouping weight distribution, but meets all
    16  other requirements of this section.
    17    4. A divisible load permit may only be transferred  to  a  replacement
    18  vehicle by the same registrant or transferred with the permitted vehicle
    19  as  part of the sale or transfer of the permit holder's business; or, if
    20  the divisible load permit is issued pursuant  to  [subparagraph]  clause
    21  (iv), (v) or (vi) of subparagraph eight of this paragraph for use within
    22  the  counties  of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange
    23  and Dutchess and has been effective  for  the  five  years  preceding  a
    24  transfer  of such permit, the permit may be transferred with the permit-
    25  ted vehicle in the sale of the permitted vehicle  to  the  holder  of  a
    26  permit  issued  pursuant  to  [subparagraph] clause (iv), (v) or (vi) of
    27  subparagraph eight of this paragraph for  use  within  the  counties  of
    28  Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess.
    29    5. If a permit holder operates a vehicle or combination of vehicles in
    30  violation  of  any posted weight restriction, the commissioner of trans-
    31  portation may impose a civil penalty as provided by section one  hundred
    32  forty-five  of  the  transportation law and/or cancel, suspend or revoke
    33  the permit issued to such vehicle or combination of  vehicles  and  such
    34  permit shall be deemed void as of the next day and shall not be reissued
    35  for a period of up to twelve calendar months.
    36    6.  Until  June  thirtieth, nineteen hundred ninety-four, no more than
    37  sixteen thousand power units shall  be  issued  annual  permits  by  the
    38  department  for  any  twelve-month  period in accordance with this para-
    39  graph. After June thirtieth, nineteen hundred ninety-four, no more  than
    40  sixteen thousand five hundred power units shall be issued annual permits
    41  by  the  department  for any twelve-month period. After December thirty-
    42  first, nineteen hundred ninety-five, no  more  than  seventeen  thousand
    43  power  units  shall  be  issued annual permits by the department for any
    44  twelve-month period. After December thirty-first, two thousand three, no
    45  more than twenty-one thousand power units shall be issued annual permits
    46  by the department for any twelve-month period.  After  December  thirty-
    47  first,  two  thousand five, no more than twenty-two thousand power units
    48  shall be issued annual permits by the department  for  any  twelve-month
    49  period.  After  December  thirty-first,  two  thousand six, no more than
    50  twenty-three thousand power units shall be issued annual permits by  the
    51  department for any twelve-month period. After December thirty-first, two
    52  thousand  seven,  no more than twenty-four thousand power units shall be
    53  issued annual permits by the department  for  any  twelve-month  period.
    54  After  December  thirty-first,  two thousand eight, no more than twenty-
    55  five thousand power units shall be issued annual permits by the  depart-
    56  ment for any twelve-month period. After December thirty-first, two thou-

        S. 2008--A                          6                         A. 3008--A
 
     1  sand  sixteen,  no  more than twenty-seven thousand power units shall be
     2  issued annual permits by the department  for  any  twelve-month  period.
     3  After  December  thirty-first, two thousand eighteen, no more than twen-
     4  ty-nine  thousand  power  units  shall  be  issued annual permits by the
     5  department for any twelve-month period. After December thirty-first, two
     6  thousand twenty, no more than  thirty  thousand  power  units  shall  be
     7  issued  annual  permits  by  the department for any twelve-month period.
     8  After December thirty-first, two thousand twenty-two, no more than thir-
     9  ty-one thousand power units  shall  be  issued  annual  permits  by  the
    10  department for any twelve-month period. After December thirty-first, two
    11  thousand  twenty-three,  no  more  than  thirty-two thousand power units
    12  shall be issued annual permits by the department  for  any  twelve-month
    13  period.  After  December thirty-first, two thousand twenty-four, no more
    14  than thirty-three thousand power units shall be issued annual permits by
    15  the department for any twelve-month  period.    After  December  thirty-
    16  first, two thousand twenty-five, no more than thirty-five thousand power
    17  units  shall  be issued annual permits by the department for any twelve-
    18  month period.
    19    Whenever permit application requests exceed permit  availability,  the
    20  department  shall  renew  annual permits that have been expired for less
    21  than four years which meet program requirements, and  then  shall  issue
    22  permit  applicants  having  less  than three divisible load permits such
    23  additional permits as the applicant  may  request,  providing  that  the
    24  total  of  existing  and  new  permits  does not exceed three. Remaining
    25  permits shall be allocated by  lottery  in  accordance  with  procedures
    26  established by the commissioner in rules and regulations. After December
    27  thirty-first,  two  thousand  sixteen,  the  department  may permanently
    28  increase the maximum number of power units issued an annual permit by no
    29  more than two thousand additional  permits  above  the  previous  year's
    30  total  in  accordance with procedures established by the commissioner in
    31  rules and regulations.
    32    7. The department of transportation may issue a seasonal  agricultural
    33  permit in accordance with [subparagraphs] clauses (i), (ii) and (iii) of
    34  subparagraph eight of this paragraph that will be valid for four consec-
    35  utive  months with a fee equal to one-half the annual permit fees estab-
    36  lished under this subdivision.
    37    8. For a vehicle issued a permit in  accordance  with  [subparagraphs]
    38  clauses (iii), (iv), (v) and (vi) of this [paragraph] subparagraph, such
    39  a  vehicle  must  have  been  registered  in this state prior to January
    40  first, nineteen hundred eighty-six or be a  vehicle  or  combination  of
    41  vehicles which replace such type of vehicle which was registered in this
    42  state  prior  to  such date provided that the manufacturer's recommended
    43  maximum gross weight of the replacement vehicle or combination of  vehi-
    44  cles does not exceed the weight for which a permit may be issued and the
    45  maximum  load to be carried on the replacement vehicle or combination of
    46  vehicles does not exceed the maximum load which could have been  carried
    47  on  the vehicle being replaced or the registered weight of such vehicle,
    48  whichever is lower, in accordance  with  the  following  [subparagraphs]
    49  clauses:
    50    (i)  A  permit may be issued for a vehicle having at least three axles
    51  and a wheelbase not less than sixteen feet and  for  a  vehicle  with  a
    52  trailer not exceeding forty-eight feet. The maximum gross weight of such
    53  a  vehicle  shall not exceed forty-two thousand five hundred pounds plus
    54  one thousand two hundred fifty pounds for each foot and  major  fraction
    55  of  a  foot  of the distance from the center of the foremost axle to the
    56  center of the rearmost axle, or one hundred two thousand pounds,  which-

        S. 2008--A                          7                         A. 3008--A
 
     1  ever  is  more  restrictive  provided, however, that any four axle group
     2  weight shall not exceed sixty-two thousand pounds, any tridem axle group
     3  weight shall not exceed fifty-seven thousand  pounds,  any  tandem  axle
     4  weight  does  not exceed forty-seven thousand pounds and any single axle
     5  weight shall not exceed twenty-five thousand pounds.
     6    Any additional special authorizations contained in a  currently  valid
     7  annual  permit  shall  cease  upon the expiration of such current annual
     8  permit.
     9    (ii) A permit may be issued subject to bridge restrictions for a vehi-
    10  cle or a combination of vehicles having at least six axles and  a  wheel
    11  base  of at least thirty-six and one-half feet. The maximum gross weight
    12  of such vehicle or combination of vehicles shall not exceed one  hundred
    13  seven  thousand pounds and any tridem axle group weight shall not exceed
    14  fifty-eight thousand pounds and any tandem axle group weight  shall  not
    15  exceed forty-eight thousand pounds.
    16    (ii-a)  A  permit  may  be issued subject to bridge restrictions for a
    17  combination of vehicles having at least seven axles and a  wheelbase  of
    18  at  least forty-three feet. The maximum gross weight of such combination
    19  of vehicles shall not exceed one hundred seventeen thousand pounds,  any
    20  four axle group weight shall not exceed sixty-three thousand pounds, any
    21  tridem  axle  group weight shall not exceed fifty-eight thousand pounds,
    22  any tandem axle group  weight  shall  not  exceed  forty-eight  thousand
    23  pounds, and any single axle weight shall not exceed twenty-five thousand
    24  pounds.
    25    Each  axle  of  such  combination of vehicles, other than steerable or
    26  trackable axles, shall be equipped with two tires on each  side  of  the
    27  axle,  any air pressure controls for lift axles shall be located outside
    28  the cab of the combination of vehicles and shall be beyond the reach  of
    29  occupants of the cab while the combination of vehicles is in motion, the
    30  weight  on  any  grouping of two or more axles shall be distributed such
    31  that no axle in the grouping carries less than  eighty  percent  of  any
    32  other axle in the grouping, and any liftable axle of such combination of
    33  vehicles shall be steerable or trackable.
    34    (iii)  A  permit  may  be  issued for a vehicle having two axles and a
    35  wheelbase not less than ten feet, with the maximum gross weight  not  in
    36  excess of one hundred twenty-five percent of the total weight limitation
    37  as  set  forth  in  subdivision  ten of this section. Furthermore, until
    38  December thirty-first, nineteen hundred  ninety-four,  any  single  rear
    39  axle  weight shall not exceed twenty-eight thousand pounds. After Decem-
    40  ber thirty-first, nineteen hundred ninety-four, any  axle  weight  shall
    41  not exceed twenty-seven thousand pounds.
    42    (iv) Within a city not wholly included within one county and the coun-
    43  ties  of  Westchester,  Rockland,  Nassau,  Suffolk,  Putnam, Orange and
    44  Dutchess, a permit may be issued for a vehicle  having  at  least  three
    45  axles and a wheelbase not exceeding forty-four feet nor less than seven-
    46  teen feet or for a vehicle with a trailer not exceeding forty feet.
    47    Until  December  thirty-first,  nineteen hundred ninety-four, a permit
    48  may only be issued for such a vehicle having a maximum gross weight  not
    49  exceeding  eighty-two  thousand  pounds and any tandem axle group weight
    50  shall not exceed sixty-two thousand pounds.
    51    After January first, nineteen hundred ninety-five,  the  operation  of
    52  such  a vehicle shall be further limited and a permit may only be issued
    53  for such a vehicle having a maximum gross weight not exceeding  seventy-
    54  nine  thousand  pounds and any tandem axle group weight shall not exceed
    55  fifty-nine thousand pounds, and any tridem shall not  exceed  sixty-four
    56  thousand pounds.

        S. 2008--A                          8                         A. 3008--A
 
     1    A  permit  may  be  issued  only until December thirty-first, nineteen
     2  hundred ninety-four for a vehicle having at  least  three  axles  and  a
     3  wheelbase  between  fifteen and seventeen feet. The maximum gross weight
     4  of such a vehicle shall not exceed seventy-three  thousand  two  hundred
     5  eighty  pounds  and any tandem axle group weight shall not exceed fifty-
     6  four thousand pounds.
     7    No vehicle having a model year of two thousand six or newer  shall  be
     8  issued  a  permit pursuant to this subparagraph for use within the coun-
     9  ties of Westchester,  Rockland,  Nassau,  Suffolk,  Putnam,  Orange  and
    10  Dutchess  unless  it  is  equipped with at least four axles, and further
    11  provided, after December thirty-first, two thousand fourteen, no  permit
    12  shall  be  issued  pursuant to this [subparagraph] clause for use within
    13  the counties of Westchester, Rockland, Nassau, Suffolk,  Putnam,  Orange
    14  and  Dutchess  to  a  vehicle  of  any  model year unless the vehicle is
    15  equipped with at least four axles.
    16    (v) Within a city not wholly included within one county and the  coun-
    17  ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange or Dutch-
    18  ess,  a  permit may be issued only until December thirty-first, nineteen
    19  hundred ninety-nine for a vehicle or combination of  vehicles  that  has
    20  been permitted within the past four years having five axles and a wheel-
    21  base  of at least thirty-six and one-half feet. The maximum gross weight
    22  of such a vehicle or  combination  of  vehicles  shall  not  exceed  one
    23  hundred  five thousand pounds and any tandem axle group weight shall not
    24  exceed fifty-one thousand pounds.
    25    Within a city not wholly included within one county and  the  counties
    26  of  Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess,
    27  a permit may be issued for a vehicle or combination of  vehicles  having
    28  at least five axles and a wheelbase of at least thirty feet. The maximum
    29  gross weight of such vehicle or combination of vehicles shall not exceed
    30  ninety-three  thousand pounds and any tridem axle group weight shall not
    31  exceed fifty-seven thousand pounds and  any  tandem  axle  group  weight
    32  shall not exceed forty-five thousand pounds.
    33    (vi) Within a city not wholly included within one county and the coun-
    34  ties  of  Westchester,  Rockland,  Nassau,  Suffolk,  Putnam, Orange and
    35  Dutchess, a permit may be issued for a vehicle or combination  of  vehi-
    36  cles  having  at  least  five  axles or more and a wheelbase of at least
    37  thirty-six and one-half feet,  provided  such  permit  contains  routing
    38  restrictions.
    39    Until December thirty-first, nineteen hundred ninety-four, the maximum
    40  gross  weight  of  a  vehicle or combination of vehicles permitted under
    41  this [subparagraph] clause shall not exceed one hundred twenty  thousand
    42  pounds  and  any  tandem  or  tridem  axle group weight shall not exceed
    43  sixty-nine thousand pounds,  provided,  however,  that  any  replacement
    44  vehicle or combination of vehicles permitted after the effective date of
    45  this  [subparagraph]  clause  shall  have at least six axles, any tandem
    46  axle group shall not exceed fifty thousand pounds and  any  tridem  axle
    47  group shall not exceed sixty-nine thousand pounds.
    48    After  December thirty-first, nineteen hundred ninety-four, the tridem
    49  axle group weight of any vehicle or combination  of  vehicles  issued  a
    50  permit  under  this  [subparagraph]  clause shall not exceed sixty-seven
    51  thousand pounds, any tandem axle group weight  shall  not  exceed  fifty
    52  thousand  pounds and any single axle weight shall not exceed twenty-five
    53  thousand seven hundred fifty pounds.
    54    After December thirty-first, nineteen hundred ninety-nine,  all  vehi-
    55  cles issued a permit under this [subparagraph] clause must have at least
    56  six axles.

        S. 2008--A                          9                         A. 3008--A
 
     1    After  December  thirty-first, two thousand fourteen, all combinations
     2  of vehicles issued a permit under this  [subparagraph]  clause  for  use
     3  within  the  counties of Westchester, Rockland, Nassau, Suffolk, Putnam,
     4  Orange and Dutchess must have at least seven axles and a wheelbase of at
     5  least forty-three feet.
     6    After  December  thirty-first,  two  thousand six, no permits shall be
     7  issued under this [subparagraph] clause for use within the  counties  of
     8  Westchester,  Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for
     9  a vehicle or combination of vehicles having less  than  seven  axles  or
    10  having  a  wheelbase  of  less than forty-three feet, provided, however,
    11  that permits may be issued for use within the counties  of  Westchester,
    12  Rockland,  Nassau,  Suffolk, Putnam, Orange and Dutchess for vehicles or
    13  combinations of vehicles where the permit  applicant  demonstrates  that
    14  the  applicant  acquired the vehicle or combination of vehicles prior to
    15  December thirty-first, two thousand six, and  that  if  the  vehicle  or
    16  combination  of  vehicles was acquired by the applicant after the effec-
    17  tive date of this provision, such vehicle or combination of vehicles  is
    18  less than fifteen years old. In instances where the application is for a
    19  combination  of vehicles, the applicant shall demonstrate that the power
    20  unit of such combination satisfies the conditions of this [subparagraph]
    21  clause.  In no event shall a permit be issued under this  [subparagraph]
    22  clause  for  use  within  the counties of Westchester, Rockland, Nassau,
    23  Suffolk, Putnam, Orange and Dutchess for a  vehicle  or  combination  of
    24  vehicles having less than seven axles or having a wheelbase of less than
    25  forty-three feet after December thirty-first, two thousand fourteen.
    26    Except  as  otherwise  provided  by  this  subparagraph for the period
    27  ending December thirty-first,  two  thousand  fourteen,  after  December
    28  thirty-first,  two  thousand three, any combination of vehicles issued a
    29  permit under this [subparagraph] clause for use within the  counties  of
    30  Westchester,  Rockland,  Nassau,  Suffolk,  Putnam,  Orange and Dutchess
    31  shall not exceed one hundred twenty thousand pounds, shall have at least
    32  seven axles, shall have a wheelbase of at least  forty-three  feet,  and
    33  single  axle  weight shall not exceed twenty-five thousand seven hundred
    34  fifty pounds, any tandem axle group weight shall not exceed  forty-eight
    35  thousand  pounds,  any  tridem axle group weight shall not exceed sixty-
    36  three thousand pounds and any four axle group shall  not  exceed  sixty-
    37  five thousand pounds.
    38    From  the  date  of  enactment  of this paragraph, permit applications
    39  under [subparagraphs] clauses (i), (ii), (ii-a), (iii),  (iv),  (v)  and
    40  (vi)  of  this  [paragraph] subparagraph for vehicles registered in this
    41  state may be honored by the  commissioner  of  transportation  or  other
    42  appropriate  authority.  The  commissioner  of  transportation and other
    43  appropriate authorities may confer and develop a  system  through  rules
    44  and regulations to assure compliance herewith.
    45    § 2. This act shall take effect immediately.
 
    46                                   PART C
 
    47    Section 1. Paragraph (b) of subdivision 5 of section 88-a of the state
    48  finance  law, as added by chapter 481 of the laws of 1981, is amended to
    49  read as follows:
    50    (b) Moneys in the public transportation systems  operating  assistance
    51  account  shall  be  paid  on  a quarterly basis beginning October first,
    52  nineteen hundred eighty-one. However, if there is  a  demonstrated  cash
    53  shortfall  in any eligible system, payments to such system may be accel-
    54  erated. Such payments shall be made in accordance  with  a  schedule  as

        S. 2008--A                         10                         A. 3008--A
 
     1  specified  by appropriation for the payment of operating costs of public
     2  mass transportation systems outside the metropolitan commuter  transpor-
     3  tation  district  as  defined by section twelve hundred sixty-two of the
     4  public  authorities law, eligible to receive operating assistance pursu-
     5  ant to section eighteen-b of the transportation law.  Provided,  however
     6  that  no  payment shall be made to any public transportation system that
     7  is operating in violation of an order by the public transportation safe-
     8  ty board pursuant to subdivision nine of section two  hundred  seventeen
     9  of  the  transportation law until such time that said public transporta-
    10  tion system has fully complied with said order or unless  the  order  is
    11  otherwise lifted.
    12    §  2.  Paragraph  (b)  of  subdivision  7 of section 88-a of the state
    13  finance law, as amended by chapter 56 of the laws of 1993, is amended to
    14  read as follows:
    15    (b) Moneys in the metropolitan mass transportation  operating  assist-
    16  ance account shall be paid on a quarterly basis beginning October first,
    17  nineteen  hundred [eight-one] eighty-one.  However, if there is a demon-
    18  strated cash shortfall in any eligible system, payments to  such  system
    19  may  be accelerated. Such moneys shall be paid in accordance with sched-
    20  ules as specified by appropriations for payment of  operating  costs  of
    21  public  transportation systems in the metropolitan transportation commu-
    22  ter district in order to meet the operating expenses  of  such  systems,
    23  provided,  however,  with  respect  to  the  metropolitan transportation
    24  authority, its affiliates  and  subsidiaries,  and  notwithstanding  any
    25  general  or  special  law  to  the contrary, other than such a law which
    26  makes specific reference to this section, and subject to the  provisions
    27  of  section  twelve  hundred seventy-c of the public authorities law, so
    28  long as the metropolitan transportation  authority  dedicated  tax  fund
    29  established  by  section twelve hundred seventy-c of the public authori-
    30  ties law shall exist, any such appropriation to the metropolitan  trans-
    31  portation  authority, its affiliates or its subsidiaries shall be deemed
    32  to be an appropriation to the metropolitan transportation authority  and
    33  the  total  amount paid pursuant to such appropriation or appropriations
    34  shall be deposited to such metropolitan transportation  authority  dedi-
    35  cated  tax  fund  and  distributed  in accordance with the provisions of
    36  section twelve hundred seventy-c of the public authorities law.  Nothing
    37  contained  in  this subdivision shall be deemed to restrict the right of
    38  the state to amend, repeal, modify or otherwise alter statutes  imposing
    39  or relating to the taxes producing revenues for deposit in the metropol-
    40  itan  mass  transportation operating assistance account or the appropri-
    41  ations relating thereto. The metropolitan transportation authority shall
    42  not include within any resolution, contract or agreement with holders of
    43  the bonds or notes issued under section twelve hundred sixty-nine of the
    44  public authorities law any  provision  which  provides  that  a  default
    45  occurs  as  a result of the state exercising its right to amend, repeal,
    46  modify or otherwise alter  such  taxes  or  appropriations.    Provided,
    47  however  that  no  payment  shall  be  made to any public transportation
    48  system that is operating in violation of an order by the  public  trans-
    49  portation  safety  board  pursuant  to  subdivision  nine of section two
    50  hundred seventeen of the transportation law until such  time  that  said
    51  public  transportation  system  has  fully  complied  with said order or
    52  unless the order is otherwise lifted.
    53    § 3. The opening paragraph of subdivision 4 of  section  88-b  of  the
    54  state  finance  law,  as  added  by  chapter  13 of the laws of 1987, is
    55  amended to read as follows:

        S. 2008--A                         11                         A. 3008--A
 
     1    Moneys of the fund shall be made available for financing  any  of  the
     2  following  types  of capital projects within the counties comprising the
     3  metropolitan commuter transportation  district,  except  those  counties
     4  comprising  the  city  of  New  York,  but  only to the extent that such
     5  projects  are on an adopted transportation plan and approved by a desig-
     6  nated transportation coordinating committee, if one exists,  or  by  the
     7  metropolitan  planning  organization  as  created  pursuant  to  section
     8  fifteen-a of the transportation  law  if  no  designated  transportation
     9  coordinating  committee exists: capacity and infrastructure improvements
    10  to state, county, town, city,  village  roads,  highways,  parkways  and
    11  bridges;  or  state,  county,  town, city or village mass transportation
    12  projects; provided, however, that in Nassau and  Suffolk  counties  such
    13  moneys shall be available only for capacity improvements to state roads,
    14  highways,  parkways  and bridges. The amount of state funds historically
    15  appropriated statewide, other than bond funds, for transportation  capi-
    16  tal  purposes  from  other  sources  shall not be reduced because of the
    17  availability of such moneys made available pursuant to this chapter, nor
    18  shall such moneys be used to match federal aid. Prior to the  allocation
    19  of  state advance funds appropriated pursuant to this section, the muni-
    20  cipality responsible for the project shall certify to  the  commissioner
    21  of  transportation that the amount of funds appropriated for transporta-
    22  tion capital purposes by that municipality shall not be reduced  because
    23  of  the  availability  of such state advance funds, and that such moneys
    24  shall not be used to match federal  aid.    Provided,  however  that  no
    25  payment  shall be made to any public transportation system that is oper-
    26  ating in violation of an order by the public transportation safety board
    27  pursuant to subdivision nine of section two  hundred  seventeen  of  the
    28  transportation  law  until  such  time  that  said public transportation
    29  system has fully complied with said order or unless the order is  other-
    30  wise lifted.
    31    §  4.  Paragraph a of subdivision 2 of section 18-b of the transporta-
    32  tion law, as added by chapter 56 of the laws of 1975, is amended to read
    33  as follows:
    34    a. The commissioner shall pay to  each  public  transportation  system
    35  that  makes  an  application therefor, in quarterly installments, a mass
    36  transportation operating assistance service payment. For the purposes of
    37  this section, the quarters shall be April  through  June,  July  through
    38  September,   October   through   December  and  January  through  March.
    39  Provided, however that no payment shall be made to any public  transpor-
    40  tation  system  that is operating in violation of an order by the public
    41  transportation safety board pursuant to subdivision nine of section  two
    42  hundred  seventeen  of  this  chapter  until  such time that said public
    43  transportation system has fully complied with said order or  unless  the
    44  order is otherwise lifted.
    45    §  5. Section 217 of the transportation law is amended by adding seven
    46  new subdivisions 9, 10, 11, 12, 13, 14 and 15 to read as follows:
    47    9. To comply with the requirements of the national public  transporta-
    48  tion  safety plan, as provided by section 5329 of title 49 of the United
    49  States code and to provide the state safety oversight  program  required
    50  thereby.
    51    10.  To review, approve, oversee and enforce the implementation by the
    52  rail fixed guideway public transportation agency of the public transpor-
    53  tation agency safety plan that is approved by the board.
    54    11. To investigate and enforce  the  safety  of  rail  fixed  guideway
    55  public  transportation  systems  with  the  public transportation agency
    56  safety plan approved by the board.

        S. 2008--A                         12                         A. 3008--A
 
     1    12. To perform audits, at least once triennially, for  the  compliance
     2  of the rail fixed guideway public transportation systems with the feder-
     3  al transit administration.
     4    13.  To provide, at least once annually, a status report on the safety
     5  of rail fixed guideway public  transportation  systems  that  the  board
     6  oversees.
     7    14.  To  review,  approve,  oversee  and enforce the implementation of
     8  public transportation system safety plans.
     9    15. To issue such advisories, directives or orders that may be  deemed
    10  necessary  to  assure  safety  in the operation of public transportation
    11  systems.
    12    § 6. This act shall take effect immediately.
 
    13                                   PART D
 
    14    Section 1. Paragraph (g) of subdivision 3 of section 385 of the  vehi-
    15  cle  and  traffic  law,  as added by chapter 303 of the laws of 2014, is
    16  amended to read as follows:
    17    (g) The length of a tow truck or car carrier, inclusive  of  load  and
    18  bumpers,  shall  be  not more than forty feet, except that a car carrier
    19  may have an overhang that extends beyond the rear  bumper  of  such  car
    20  carrier  by  not more than [three] four feet and except, further, that a
    21  wheel lift that is less  than  fifteen  feet  in  length  shall  not  be
    22  included  as  part of the length of a tow truck or car carrier when such
    23  wheel lift is in use by such tow truck or car  carrier  to  tow  another
    24  motor vehicle.
    25    §  2.  Subparagraphs  5  and  6  of  paragraph (b) of subdivision 4 of
    26  section 385 of the vehicle and traffic law, subparagraph 5 as amended by
    27  chapter 669 of the laws of 2005, and subparagraph 6 as amended by  chap-
    28  ter  26  of  the  laws  of 2002, are amended and a new subparagraph 7 is
    29  added to read as follows:
    30    5. A vehicle or combination of vehicles which is disabled  and  unable
    31  to  proceed under its own power and is being towed for a distance not in
    32  excess of ten miles for the purpose of repairs or removal from the high-
    33  way, except that the distance to the nearest exit of a controlled-access
    34  highway shall not be considered in determining such ten  mile  distance;
    35  [and]
    36    6.  Stinger-steered  automobile  transporters  or stinger-steered boat
    37  transporters, while operating on qualifying and  access  highways.  Such
    38  vehicles shall not, however, exceed [seventy-five] eighty feet exclusive
    39  of  an  overhang  of  not  more  than [three] four feet on the front and
    40  [four] six feet on the rear of the vehicle[.]; and
    41    7. A combination of vehicles operating on  any  qualifying  or  access
    42  highways  consisting  of  a  power unit and two trailers or semitrailers
    43  with a total weight that shall not  exceed  twenty-six  thousand  pounds
    44  when  the  overall  length is greater than sixty-five feet but shall not
    45  exceed eighty-two feet; and in which the trailers or semitrailers  carry
    46  no  property  and  constitute  inventory  property  of  a  manufacturer,
    47  distributor, or dealer of such trailers or semitrailers.
    48    § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle  and
    49  traffic law, as amended by chapter 26 of the laws of 2002, is amended to
    50  read as follows:
    51    (c)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
    52  sion, an overhang of not more than three feet on the front and four feet
    53  on the rear of an automobile transporter or an overhang of not more than
    54  four feet on the front and six feet on the  rear  of  a  stinger-steered

        S. 2008--A                         13                         A. 3008--A
 
     1  automobile  transporter  or  a  boat transporter or stinger-steered boat
     2  transporter shall be permitted.
     3    §  4. Subdivision 10 of section 385 of the vehicle and traffic law, as
     4  amended by chapter 1008 of the laws of  1983,  is  amended  to  read  as
     5  follows:
     6    10.  A  single vehicle or a combination of vehicles having three axles
     7  or more and equipped with pneumatic tires, when loaded, may have a total
     8  weight on all axles not to exceed thirty-four thousand pounds, plus  one
     9  thousand  pounds  for  each  foot  and  major  fraction of a foot of the
    10  distance from the center of the foremost axle to the center of the rear-
    11  most axle. Axles to be counted as provided in subdivision five  of  this
    12  section. In no case, however, shall the total weight exceed eighty thou-
    13  sand  pounds except for a vehicle if operated by an engine fueled prima-
    14  rily by natural gas which may have a maximum gross weight of  eighty-two
    15  thousand  pounds.  For  any  vehicle or combination of vehicles having a
    16  total gross weight less than seventy-one thousand pounds, the higher  of
    17  the following shall apply:
    18    (a)  the  total weight on all axles shall not exceed thirty-four thou-
    19  sand pounds plus one thousand pounds for each foot and major fraction of
    20  a foot of the distance from the center  of  the  foremost  axle  to  the
    21  center of the rearmost axle, or
    22    (b)  the  overall  gross  weight on a group of two or more consecutive
    23  axles shall not exceed the weight produced by application of the follow-
    24  ing formula:
    25                       W = 500 ((LxN)/(N-1) + (12xN)+36)
    26  where W equals overall gross weight on any group of two or more  consec-
    27  utive  axles  to  the  nearest five hundred pounds, L equals distance in
    28  feet from the center of the foremost axle to the center of the  rearmost
    29  axle  of any group of two or more consecutive axles, and N equals number
    30  of axles in group under consideration, except that two consecutive  sets
    31  of  tandem  axles  may carry a gross load of thirty-four thousand pounds
    32  each providing the overall distance between the first and last axles  of
    33  such consecutive sets of tandem axles is thirty-six feet or more.
    34    For any vehicle or combination of vehicles having a total gross weight
    35  of  seventy-one thousand pounds or greater, paragraph (b) shall apply to
    36  determine maximum gross weight which is permitted hereunder.
    37    § 5. Section 385 of the vehicle and traffic law is amended by adding a
    38  new subdivision 24 to read as follows:
    39    24. The provisions of subdivisions six, seven, eight, nine, ten, elev-
    40  en and twelve of this section shall not apply to any tow truck  that  is
    41  transporting  a disabled vehicle from the place where the vehicle became
    42  disabled to the nearest appropriate repair  facility  and  has  a  gross
    43  vehicle  weight  that is equal to or exceeds the gross vehicle weight of
    44  the disabled vehicle being transported.
    45    § 6. Subparagraph (iii) of paragraph b of subdivision 2 of section 510
    46  of the vehicle and traffic law, as amended by chapter 349 of the laws of
    47  1993, is amended to read as follows:
    48    (iii) such registrations shall be suspended when necessary  to  comply
    49  with  subdivision  nine of section one hundred forty or subdivision four
    50  of section one hundred forty-five of the transportation law or when  the
    51  motor  carrier  has  been  issued  an out of service order by the United
    52  States department of transportation. The  commissioner  shall  have  the
    53  authority  to  deny  a  registration or renewal application to any other
    54  person for the same vehicle and  may  deny  a  registration  or  renewal
    55  application  for  any  other motor vehicle registered in the name of the
    56  applicant where it has been determined that such registrant's intent has

        S. 2008--A                         14                         A. 3008--A
 
     1  been to evade the purposes of this subdivision and where the commission-
     2  er has reasonable grounds to believe that such registration  or  renewal
     3  will  have the effect of defeating the purposes of this subdivision. Any
     4  suspension  issued  pursuant to this subparagraph shall remain in effect
     5  until such time as the commissioner is notified  by  the  United  States
     6  department  of transportation or the New York state department of trans-
     7  portation that the out of service order resulting in the  suspension  is
     8  no longer in effect.
     9    § 7. This act shall take effect immediately.
 
    10                                   PART E
 
    11    Section 1. Subdivision 3 of section 165.15 of the penal law is amended
    12  to read as follows:
    13    3. With intent to obtain railroad, subway, bus, air, taxi or any other
    14  public  transportation  service  or  to  use any highway, parkway, road,
    15  bridge or tunnel without payment of the lawful charge or toll  therefor,
    16  or to avoid payment of the lawful charge or toll for such transportation
    17  service  which  has been rendered to him or for such use of any highway,
    18  parkway, road, bridge or tunnel, he obtains or attempts to  obtain  such
    19  service or use or avoids or attempts to avoid payment therefor by force,
    20  intimidation, stealth, deception or mechanical tampering, or by unjusti-
    21  fiable failure or refusal to pay; or
    22    §  2.  The  vehicle and traffic law is amended by adding a new section
    23  518 to read as follows:
    24    § 518. Reciprocal agreements concerning suspension  or  revocation  of
    25  registration  of a motor vehicle for violations of toll collection regu-
    26  lations. a. The commissioner may execute a reciprocal compact or  agree-
    27  ment  regarding toll collection violations with the motor vehicle admin-
    28  istrator or other authorized official of another state not  inconsistent
    29  with  the  provisions  of  this chapter. Such compact or agreement shall
    30  provide that if a registration of a motor vehicle would be suspended  or
    31  revoked  pursuant  to  paragraph  d of subdivision three of section five
    32  hundred ten of this chapter, or pursuant to a comparable  law  or  regu-
    33  lation  of  another state, because an owner of a motor vehicle failed to
    34  pay tolls and violation fees, or have  them  dismissed  or  transferred,
    35  then the state issuing the registration shall likewise suspend or revoke
    36  the  registration or bar renewal of such registration, until such regis-
    37  trant or applicant has paid such tolls and fees  or  complied  with  the
    38  rules and regulations.
    39    b.  Such compact or agreement shall also provide such terms and proce-
    40  dures as are necessary and proper to facilitate its administration.  Any
    41  such  compact  or  agreement shall specify the violations subject to the
    42  compact or agreement, and shall include a  determination  of  comparable
    43  violations  in  each state if any such violations are of a substantially
    44  similar nature but are not denominated or  described  in  precisely  the
    45  same words in each party state.
    46    c.  The  word  "state" when used in this section shall mean any state,
    47  territory, a possession of the United States, the District  of  Columbia
    48  or any province of Canada.
    49    §  3.  Subdivision  1 of section 402 of the vehicle and traffic law is
    50  amended by adding a new paragraph (c) to read as follows:
    51    (c) It shall be unlawful for any person to operate, drive  or  park  a
    52  motor  vehicle  on  a toll highway, bridge and/or tunnel facility, under
    53  the jurisdiction of the tolling authority, if such number plate  is  not
    54  easily  readable,  nor shall any number plate be covered by glass or any

        S. 2008--A                         15                         A. 3008--A
 
     1  plastic material, and shall not be knowingly covered or coated with  any
     2  artificial  or synthetic material or substance that conceals or obscures
     3  such number plates or that distorts a recorded or photographic image  of
     4  such  number  plates,  and  the  view of such number plates shall not be
     5  obstructed by any part of the vehicle or by  anything  carried  thereon,
     6  except  for  a  receiver-transmitter  issued by a publicly owned tolling
     7  facility in connection with electronic toll collection when such receiv-
     8  er-transmitter is affixed to the exterior of  a  vehicle  in  accordance
     9  with  mounting  instructions  provided  by  the  tolling  facility.  For
    10  purposes of this paragraph, "tolling authority" shall mean every  public
    11  authority  which  operates a toll highway, bridge and/or tunnel facility
    12  as well as the port authority of New York and  New  Jersey,  a  bi-state
    13  agency created by compact set forth in chapter one hundred fifty-four of
    14  the laws of nineteen hundred twenty-one, as amended.
    15    §  4.  Subdivision 8 of section 402 of the vehicle and traffic law, as
    16  amended by chapter 61 of the laws of 1989 and renumbered by chapter  648
    17  of the laws of 2006, is amended to read as follows:
    18    8.  The violation of this section shall be punishable by a fine of not
    19  less than twenty-five nor more  than  two  hundred  dollars  except  for
    20  violations  of  paragraph  (c) of subdivision one of this section, which
    21  shall be punishable by a fine of not less than one hundred nor more than
    22  five hundred dollars.
    23    § 5. This act shall take effect immediately.
 
    24                                   PART F
 
    25    Section 1. Subdivision 5 of section 227 of  the  vehicle  and  traffic
    26  law,  as  amended  by  section 3 of part CC of chapter 58 of the laws of
    27  2015, is amended to read as follows:
    28    5. All penalties and forfeited  security  collected  pursuant  to  the
    29  provisions  of this article shall be paid to the department of audit and
    30  control to the credit of the justice court fund and shall be subject  to
    31  the  applicable  provisions  of  section  eighteen hundred three of this
    32  chapter. After such audit as shall reasonably be required by  the  comp-
    33  troller,  such  penalties and forfeited security shall be paid quarterly
    34  or, in the discretion of the comptroller, monthly,  to  the  appropriate
    35  jurisdiction  in  which  the  violation  occurred in accordance with the
    36  provisions of section ninety-nine-a of the  state  finance  law,  except
    37  that the sum of four dollars for each violation occurring in such juris-
    38  diction  for  which  a  complaint has been filed with the administrative
    39  tribunal established pursuant to this article shall be retained  by  the
    40  state.  Notwithstanding any law to the contrary an additional annual sum
    41  of  three  million dollars collected from fines and assessed to the city
    42  of New York, shall be deposited into the general fund in accordance with
    43  the provisions of section ninety-nine-a of the state  finance  law.  The
    44  amount  distributed  during  the  first  three  quarters  to the city of
    45  Rochester in any given fiscal year shall not exceed seventy  percent  of
    46  the  amount which will be otherwise payable.  Provided, however, that if
    47  the full costs of administering this article shall  exceed  the  amounts
    48  received  and  retained  by  the  state  for any period specified by the
    49  commissioner, then such additional sums as shall be required  to  offset
    50  such  costs  shall  be  retained  by  the state out of the penalties and
    51  forfeited security collected pursuant to this article.
    52    § 2. Paragraph c of subdivision 1 of section 1803 of the  vehicle  and
    53  traffic  law,  as amended by chapter 385 of the laws of 1999, is amended
    54  to read as follows:

        S. 2008--A                         16                         A. 3008--A

     1    c. for compliance  with  or  violations  of  subdivision  nineteen  of
     2  section  three  hundred eighty-five of this chapter, notwithstanding any
     3  inconsistent provision of law, except as provided in section  ninety  of
     4  the  state finance law, the fees and fines collected by the state pursu-
     5  ant  to sections two hundred twenty-seven, three hundred eighty-five and
     6  eighteen hundred three of this chapter and section ninety-nine-a of  the
     7  state  finance law, shall be made available to the state comptroller for
     8  deposit in the general fund except that fines collected  within  a  city
     9  not  wholly  included  within  one  county shall be paid to such city in
    10  accordance with the procedures set forth in subdivision four of  section
    11  two  hundred  twenty-seven  of this chapter for deposit into the general
    12  fund of such city, and except that an annual  amount  of  three  million
    13  dollars of fines collected within the city of New York pursuant to arti-
    14  cle two-A of this chapter be deposited by the comptroller to the general
    15  fund.
    16    §  3.  Subdivision  3  of  section  99-a  of the state finance law, as
    17  amended by section 10 of part CC of chapter 58 of the laws of  2015,  is
    18  amended to read as follows:
    19    3.  The  comptroller  is  hereby  authorized  to implement alternative
    20  procedures, including guidelines in conjunction therewith,  relating  to
    21  the remittance of fines, penalties, forfeitures and other moneys by town
    22  and village justice courts, and by the Nassau and Suffolk counties traf-
    23  fic  and parking violations agencies, and by the city of Buffalo traffic
    24  violations agency, and by the city of New York pursuant to article two-A
    25  of the vehicle and traffic law, to the justice court fund  and  for  the
    26  distribution  of  such moneys by the justice court fund. Notwithstanding
    27  any law  to  the  contrary,  the  alternative  procedures  utilized  may
    28  include:
    29    a. electronic funds transfer;
    30    b. remittance of funds by the justice court to the chief fiscal office
    31  of  the town or village, or, in the case of the Nassau and Suffolk coun-
    32  ties traffic and parking violations agencies, to the  county  treasurer,
    33  or, in the case of the Buffalo traffic violations agency, to the city of
    34  Buffalo comptroller, for distribution in accordance with instructions by
    35  the  comptroller  or,  in  the case of the city of New York, pursuant to
    36  article two-A of the vehicle and traffic law to  the  city  comptroller;
    37  and/or
    38    c. monthly, rather than quarterly, distribution of funds.
    39    The comptroller may require such reporting and record keeping as he or
    40  she  deems  necessary  to  ensure  the  proper distribution of moneys in
    41  accordance with applicable laws. A  justice  court  or  the  Nassau  and
    42  Suffolk  counties traffic and parking violations agencies or the city of
    43  Buffalo traffic violations agency or the city of New  York  pursuant  to
    44  article  two-A  of  the vehicle and traffic law may utilize these proce-
    45  dures only when permitted by the comptroller, and such permission,  once
    46  given, may subsequently be withdrawn by the comptroller on due notice.
    47    § 4. This act shall take effect immediately.
 
    48                                   PART G
 
    49    Section  1.  Legislative  intent. The purpose of this act is to expand
    50  access to important and enhanced transportation  options  for  residents
    51  and  visitors throughout the State, while ensuring the safety, reliabil-
    52  ity, and cost-effectiveness of those services within the  State  of  New
    53  York.

        S. 2008--A                         17                         A. 3008--A
 
     1    §  2.  The  vehicle and traffic law is amended by adding a new article
     2  44-B to read as follows:
     3                                 ARTICLE 44-B
     4                   TRANSPORTATION NETWORK COMPANY SERVICES
     5  Section 1691. Definitions.
     6          1692. General provisions.
     7          1693. Financial  responsibility of transportation network compa-
     8                  nies.
     9          1694. Disclosures.
    10          1695. Insurance provisions.
    11          1696. Driver and vehicle requirements.
    12          1697. Maintenance of records.
    13          1698. Audit procedures; confidentiality of records.
    14          1699. Criminal  history  background  check   of   transportation
    15                  network company drivers.
    16          1700. Controlling authority.
    17    §  1691.  Definitions.  As  used  in  this article: 1. "Transportation
    18  network company vehicle" or "TNC vehicle" means a vehicle that is:
    19    (a) used by a transportation network company driver to provide  a  TNC
    20  prearranged trip originating in the state of New York;
    21    (b)  owned,  leased or otherwise authorized for use by the transporta-
    22  tion network company driver and shall not include:
    23    (i) a taxicab, as defined in section one hundred forty-eight-a of this
    24  chapter and section 19-502 of the administrative code of the city of New
    25  York, or as otherwise defined in local law;
    26    (ii) a livery vehicle, as defined in section one hundred  twenty-one-e
    27  of this chapter, or as otherwise defined in local law;
    28    (iii)  a  black  car,  limousine,  or  luxury limousine, as defined in
    29  section 19-502 of the administrative code of the city of New York, or as
    30  otherwise defined in local law;
    31    (iv) a for-hire vehicle, as defined in section 19-502 of the  adminis-
    32  trative  code  of the city of New York, or as otherwise defined in local
    33  law;
    34    (v) a bus, as defined in section one hundred four of this chapter;
    35    (vi) any motor vehicle weighing more than six  thousand  five  hundred
    36  pounds unloaded;
    37    (vii)  any  motor vehicle having a seating capacity of more than seven
    38  passengers; and
    39    (viii) any motor vehicle subject to section three hundred  seventy  of
    40  this chapter.
    41    2.  "Digital  network" means any system or service offered or utilized
    42  by a transportation network company that enables TNC  prearranged  trips
    43  with transportation network company drivers.
    44    3.  "Transportation  network  company" or "TNC" means a person, corpo-
    45  ration, partnership,  sole  proprietorship,  or  other  entity  that  is
    46  licensed  pursuant  to  this  article and is operating in New York state
    47  exclusively using a digital network to  connect  transportation  network
    48  company passengers to transportation network company drivers who provide
    49  TNC prearranged trips.
    50    4.  "Transportation  network  company driver" or "TNC driver" means an
    51  individual who:
    52    (a) Receives connections to potential passengers and related  services
    53  from  a  transportation network company in exchange for payment of a fee
    54  to the transportation network company; and
    55    (b) Uses a TNC vehicle to offer or provide a TNC prearranged  trip  to
    56  transportation  network  company  passengers  upon  connection through a

        S. 2008--A                         18                         A. 3008--A
 
     1  digital network  controlled  by  a  transportation  network  company  in
     2  exchange for compensation or payment of a fee.
     3    5.  "Transportation  network company passenger" or "passenger" means a
     4  person or persons who use a  transportation  network  company's  digital
     5  network  to  connect  with  a  transportation network company driver who
     6  provides TNC prearranged trips to  the  passenger  in  the  TNC  vehicle
     7  between points chosen by the passenger.
     8    6.  "TNC  prearranged trip" means the provision of transportation by a
     9  transportation network company driver to a  passenger  provided  through
    10  the use of a TNC's digital network:
    11    (a)  beginning  when a transportation network company driver accepts a
    12  passenger's request for a trip through a digital network controlled by a
    13  transportation network company;
    14    (b) continuing while the transportation network company driver  trans-
    15  ports the requesting passenger in a TNC vehicle; and
    16    (c)  ending  when  the  last requesting passenger departs from the TNC
    17  vehicle.
    18    (d) The term "TNC prearranged trip" does  not  include  transportation
    19  provided through any of the following:
    20    (i) shared expense carpool or vanpool arrangements, including those as
    21  defined  in section one hundred fifty-eight-b of the vehicle and traffic
    22  law;
    23    (ii) use of a taxicab, livery, luxury  limousine,  or  other  for-hire
    24  vehicle,  as  defined  in the vehicle and traffic law, section 19-502 of
    25  the New York city administrative code, or as otherwise defined in  local
    26  law; and
    27    (iii) a regional transportation provider.
    28    7. "Group policy" means an insurance policy issued pursuant to section
    29  three thousand four hundred fifty-five of the insurance law.
    30    §  1692. General provisions.  1. A TNC or a TNC driver is not a common
    31  carrier, as defined in subdivision six of section two of the transporta-
    32  tion law; a contract carrier of passengers by motor vehicle, as  defined
    33  in subdivision nine of section two of the transportation law; or a motor
    34  carrier,  as  defined  in  subdivision  seventeen  of section two of the
    35  transportation law; nor do they  provide  taxicab  or  for-hire  vehicle
    36  service.  Moreover,  a  TNC driver shall not be required to register the
    37  TNC vehicle such TNC driver uses for TNC prearranged trips as a  commer-
    38  cial or for-hire vehicle, as set forth in article fourteen of this chap-
    39  ter.
    40    2. A TNC may not operate in the state of New York without first having
    41  obtained  a  license  issued  by the department in a form and manner and
    42  with applicable fees as provided for by regulations promulgated  by  the
    43  commissioner.    As  a  condition of obtaining a license, a TNC shall be
    44  required to submit to the department proof  of  a  group  policy  issued
    45  pursuant to section three thousand four hundred fifty-five of the insur-
    46  ance law.  Failure of a TNC to obtain a license before operation, pursu-
    47  ant  to  this  subdivision  shall constitute a misdemeanor.   No license
    48  shall be suspended or revoked except upon notice to the TNC and after an
    49  opportunity to be heard.
    50    3. A TNC must maintain an agent for service of process in the state of
    51  New York.
    52    4. On behalf of a TNC driver, a TNC may charge a fare for the services
    53  provided to passengers; provided that, if a fare  is  collected  from  a
    54  passenger,  the  TNC  shall  disclose to the passengers the fare or fare
    55  calculation method on its website or within the application service. The
    56  TNC shall also provide the passengers with the  applicable  rates  being

        S. 2008--A                         19                         A. 3008--A

     1  charged  and an estimated fare before the passenger enters the TNC vehi-
     2  cle.
     3    5.  A TNC's digital network shall display a picture of the TNC driver,
     4  and the make, model, color and license plate number of the  TNC  vehicle
     5  utilized  for  providing  the  TNC prearranged trip before the passenger
     6  enters the TNC vehicle.
     7    6. Within a reasonable period of time following the  completion  of  a
     8  trip,  a  TNC  shall  transmit an electronic receipt to the passenger on
     9  behalf of the TNC driver that lists:
    10    (a) The origin and destination of the trip;
    11    (b) The total time and distance of the trip; and
    12    (c) An itemization of the total fare paid, if any.
    13    7. A TNC driver shall not solicit or accept street hails.
    14    8. A TNC shall adopt a policy prohibiting solicitation  or  acceptance
    15  of cash payments for the fares charged to passengers for TNC prearranged
    16  trips  and  notify  TNC  drivers of such policy.   TNC drivers shall not
    17  solicit or accept cash payments from passengers.
    18    9. Nothing in this article shall apply to cities with a population  of
    19  one million or more.
    20    § 1693.  Financial responsibility of transportation network companies.
    21  1. A TNC driver, or TNC on the TNC driver's behalf through a group poli-
    22  cy,  shall  maintain  insurance that recognizes that the driver is a TNC
    23  driver and provides financial responsibility coverage:
    24    (a) while the TNC driver is logged onto the TNC's digital network; and
    25    (b) while the TNC driver is engaged in a TNC prearranged trip.
    26    2. (a) The following  automobile  financial  responsibility  insurance
    27  requirements  shall  apply  while  a TNC driver is logged onto the TNC's
    28  digital network and is available to receive transportation requests  but
    29  is  not  engaged  in a TNC prearranged trip: insurance against loss from
    30  the liability imposed by law for damages, including damages for care and
    31  loss of services, because of bodily injury to or death  of  any  person,
    32  and  injury  to or destruction of property arising out of the ownership,
    33  maintenance, use or operation of a personal vehicle or  vehicles  within
    34  this  state,  exclusive of interest and costs, with respect to each such
    35  occurrence, of at least fifty thousand dollars because of bodily  injury
    36  to or death of one person in any one accident and, subject to said limit
    37  for  one  person,  to  a  limit of at least one hundred thousand dollars
    38  because of bodily injury to or death of two or more persons in  any  one
    39  accident,  and  to  a  limit  of  at  least twenty-five thousand dollars
    40  because of injury to or destruction of property of  others  in  any  one
    41  accident  provided,  however,  that such policy need not be for a period
    42  coterminous  with  the  registration  period  of  the  personal  vehicle
    43  insured,  and  coverage  in satisfaction of the financial responsibility
    44  requirements set forth in section three thousand four hundred twenty  of
    45  the  insurance  law,  article  fifty-one  of the insurance law, and such
    46  other requirements or regulations that may apply  for  the  purposes  of
    47  satisfying the financial responsibility requirements with respect to the
    48  use or operation of a motor vehicle.
    49    (b) The coverage requirements of paragraph (a) of this subdivision may
    50  be satisfied by any of the following:
    51    (i) insurance maintained by the TNC driver; or
    52    (ii)  insurance provided through a group policy maintained by the TNC;
    53  or
    54    (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
    55    3. (a) The following  automobile  financial  responsibility  insurance
    56  requirements  shall  apply while a TNC driver is engaged in a TNC prear-

        S. 2008--A                         20                         A. 3008--A
 
     1  ranged trip: insurance against loss from the liability  imposed  by  law
     2  for damages, including damages for care and loss of services, because of
     3  bodily injury to or death of any person, and injury to or destruction of
     4  property arising out of the ownership, maintenance, use, or operation of
     5  a  personal  vehicle  or vehicles within this state, subject to a limit,
     6  exclusive of interest and costs, with respect to each  such  occurrence,
     7  of  at  least  one million dollars because of bodily injuries, death and
     8  property damage, provided, however, that such policy need not be  for  a
     9  period  coterminous with the registration period of the personal vehicle
    10  insured, and coverage in satisfaction of  the  financial  responsibility
    11  requirements  set forth in section three thousand four hundred twenty of
    12  the insurance law, article fifty-one of  the  insurance  law,  and  such
    13  other  requirements  or  regulations  that may apply for the purposes of
    14  satisfying the financial responsibility requirements with respect to the
    15  use or operation of a motor vehicle.
    16    (b) The coverage requirements of paragraph (a) of this subdivision may
    17  be satisfied by any of the following:
    18    (i) insurance maintained by the TNC driver; or
    19    (ii) insurance provided through a group policy maintained by the  TNC;
    20  or
    21    (iii) a combination of subparagraphs (i) and (ii) of this paragraph.
    22    4.  A TNC shall, upon entering into a contractual agreement with a TNC
    23  driver, provide notice to the TNC driver that he or she may  need  addi-
    24  tional insurance coverage including motor vehicle physical damage cover-
    25  age  as described in paragraph nineteen of subsection (a) of section one
    26  thousand one hundred thirteen of the insurance law if  the  TNC  vehicle
    27  being  used by the TNC driver is subject to a lease or loan. A TNC shall
    28  also post this notice on its website.
    29    5. If insurance maintained by a TNC driver  pursuant  to  subdivisions
    30  two  and  three  of  this  section  has  lapsed  or does not provide the
    31  required coverage, then the group  policy  maintained  by  a  TNC  shall
    32  provide  the  coverage required by this section beginning with the first
    33  dollar of a claim and have the duty to defend such claim.
    34    6. Coverage under a group policy maintained by the TNC  shall  not  be
    35  dependent on the denial of a claim by the insurer that issued the insur-
    36  ance  policy used to register the TNC vehicle, nor shall that insurer be
    37  required to first deny a claim.
    38    7. (a) Except as provided in subdivision two of this section, a  group
    39  policy  maintained  by  a TNC pursuant to subparagraph (ii) of paragraph
    40  (b) of subdivisions two or three of this section shall be placed with an
    41  insurer authorized to write insurance in this state.
    42    (b) If a TNC is unable to purchase a group policy pursuant to subpara-
    43  graph (ii) of paragraph (b) of subdivisions two or three of this section
    44  because such insurance is unavailable from authorized insurers  the  TNC
    45  may  acquire such group insurance with an excess line broker pursuant to
    46  section two thousand one hundred eighteen of the insurance law.
    47    (c) The obligation to determine whether the insurance required by this
    48  section is unavailable from insurers authorized to  write  insurance  in
    49  this state shall be made prior to the initial placement and each renewal
    50  of a policy.
    51    8.  Insurance satisfying the requirements of this section may be used,
    52  when  the TNC vehicle is being used or operated during the period speci-
    53  fied in subdivision one  of  this  section,  to  satisfy  the  financial
    54  responsibility  requirements  set  forth  in subdivision four of section
    55  three hundred eleven of this chapter,  and  any  other  requirements  or
    56  regulations  that may apply for the purposes of satisfying the financial

        S. 2008--A                         21                         A. 3008--A
 
     1  responsibility requirements with respect to the use or  operation  of  a
     2  motor vehicle.
     3    9.  A TNC driver shall carry proof of coverage satisfying subdivisions
     4  two and three of this section with him or her at all times during his or
     5  her use or operation of a TNC vehicle in connection with a TNC's digital
     6  network. Such proof of coverage shall be in such form as the commission-
     7  er shall prescribe, which may be in the form of an insurance identifica-
     8  tion card as defined in section three hundred eleven  of  this  chapter.
     9  Any  insurance  identification card issued pursuant to the provisions of
    10  this article shall be in addition to the insurance  identification  card
    11  required  pursuant to article six of this chapter, and nothing contained
    12  in this article shall be deemed to supersede the  requirements  of  such
    13  article six. Whenever the production of an insurance identification card
    14  is  required  by law, a TNC driver shall (a) produce the insurance iden-
    15  tification card issued pursuant to article six of this chapter and,  (b)
    16  if  such  driver either (i) was logged onto the TNC's digital network or
    17  (ii) was engaged in a TNC prearranged trip and the activity  under  this
    18  subdivision  is  being covered primarily by insurance purchased by a TNC
    19  such  driver  shall  also  produce  the  insurance  identification  card
    20  required pursuant to this article.
    21    10.  The  superintendent  of financial services is authorized to issue
    22  such rules and regulations necessary to implement this section.
    23    11. Nothing in this  section  shall  impose  financial  responsibility
    24  requirements  upon any entities operating as vehicles for hire in a city
    25  with a population of one million or more.
    26    12.  A group policy placed by an excess line  broker  under  paragraph
    27  (b)  of  subdivision seven of this section shall not include a mandatory
    28  arbitration clause in a policy issued pursuant to this section.  Nothing
    29  in  this  section  supercedes  the  mandatory  arbitration  requirements
    30  contained in section five thousand one hundred  five  of  the  insurance
    31  law.
    32    §  1694.  Disclosures.  A TNC shall disclose in writing to TNC drivers
    33  the following before they are allowed to accept  a  request  for  a  TNC
    34  prearranged trip on the TNC's digital network:
    35    1.  The  insurance  coverage,  including the types of coverage and the
    36  limits for each coverage, that the TNC provides  while  the  TNC  driver
    37  uses a TNC vehicle in connection with a TNC's digital network;
    38    2.  That  the  TNC  driver's own automobile insurance policy might not
    39  provide any coverage while the TNC driver is  logged  on  to  the  TNC's
    40  digital  network  and is available to receive transportation requests or
    41  is engaged in a TNC prearranged trip, depending on its terms; and
    42    3. That, if a TNC vehicle has a lien against it,  then  the  continued
    43  use of such TNC vehicle by its TNC driver without physical damage cover-
    44  age may violate the terms of the contract with the lienholder.
    45    §  1695.  Insurance provisions. 1.   Insurers that write motor vehicle
    46  insurance in this state may, in the insurance policy,  exclude  any  and
    47  all coverage afforded under the policy issued to an owner or operator of
    48  a  TNC  vehicle for any loss or injury that occurs while a TNC driver is
    49  logged on to a TNC's digital network or while a driver provides a prear-
    50  ranged trip, including:
    51    (a) liability coverage for bodily injury and property damage;
    52    (b) coverage provided pursuant to article fifty-one of  the  insurance
    53  law;
    54    (c) uninsured and underinsured motorist coverage; and

        S. 2008--A                         22                         A. 3008--A
 
     1    (d)  motor  vehicle physical damage coverage as described in paragraph
     2  nineteen of subsection (a) of section one thousand one hundred  thirteen
     3  of the insurance law.
     4    2.  Such  exclusions shall apply notwithstanding any requirement under
     5  the law to the contrary.  Nothing in this section  implies  or  requires
     6  that  an  owner's  policy  of liability insurance or other motor vehicle
     7  insurance policy provide coverage while the TNC driver is logged  on  to
     8  the  TNC's  digital  network,  while  the TNC driver is engaged in a TNC
     9  prearranged trip or while the TNC driver otherwise uses  or  operates  a
    10  TNC vehicle to transport passengers for compensation.
    11    3.  Nothing  shall  be  deemed  to  preclude an insurer from providing
    12  primary, excess, or umbrella coverage for the TNC driver's TNC  vehicle,
    13  if it chose to do so by contract or endorsement.
    14    4.  Motor vehicle insurers that exclude the coverage described in this
    15  article shall have no duty to defend or indemnify  any  claim  expressly
    16  excluded thereunder.  Nothing in this article shall be deemed to invali-
    17  date or limit an exclusion contained in a policy including any policy in
    18  use  or  approved  for  use in this state prior to the effective date of
    19  this section.
    20    5. A motor vehicle insurer that defends or indemnifies a claim against
    21  a TNC driver that is excluded under the terms of its policy shall have a
    22  right of contribution against other insurers that provide motor  vehicle
    23  insurance  to  the  same driver in satisfaction of the coverage require-
    24  ments of the provisions of the chapter  of  the  laws  of  two  thousand
    25  seventeen which added this article at the time of loss.
    26    6.  In  a  claims coverage investigation, a TNC and any insurer poten-
    27  tially providing coverage under this article shall, within fifteen  days
    28  after a claim has been filed, facilitate the exchange of relevant infor-
    29  mation  with directly involved parties and any insurer of the TNC driver
    30  if applicable, including the precise times that a TNC driver  logged  on
    31  and  off  of  the  TNC's digital network in the twelve hour period imme-
    32  diately preceding and in the twelve hour  period  immediately  following
    33  the  accident  and  disclose  to  one another a clear description of the
    34  coverage, exclusions and limits provided under any motor vehicle  insur-
    35  ance maintained under this article.
    36    7. (a) The commissioner shall promulgate regulations for the provision
    37  of  relevant  insurance coverage information required by this article to
    38  the following persons upon request:
    39    (i) a person to whom an accident report pertains or who  is  named  in
    40  such report, or his or her authorized representative; and
    41    (ii)  any other person or his or her authorized representative who has
    42  demonstrated to the satisfaction of the commissioner that such person is
    43  or may be a party to a civil action arising out of the conduct described
    44  in such accident report.
    45    (b) Except as provided under paragraph (a) of  this  subdivision,  the
    46  name  of  a  TNC  driver  associated  with such insurance information is
    47  designated confidential whether or not so  marked,  is  not  subject  to
    48  disclosure by a third party by the  department of motor vehicles without
    49  prior  consent  of  the  TNC,  and is exempt from disclosure pursuant to
    50  article six of the public officers law. Nothing in this section shall be
    51  considered as limiting the applicability of any other  exemptions  under
    52  article six of the public officers law.
    53    § 1696. Driver and vehicle requirements. 1. (a) At all times, an indi-
    54  vidual acting as a TNC driver shall be permitted by the TNC as follows:
    55    (i) The individual shall submit an application to the TNC, which shall
    56  include information regarding his or her address, age, driver's license,

        S. 2008--A                         23                         A. 3008--A

     1  motor  vehicle  registration,  automobile liability insurance, and other
     2  information required by the TNC;
     3    (ii)  The TNC shall conduct or have a third party conduct, a local and
     4  national, criminal background check for  each  applicant  in  accordance
     5  with  section sixteen hundred ninety-nine of this article and that shall
     6  review:
     7    (A) Whether the applicant is listed on the publicly available New York
     8  state  sex  offender  registry   pursuant   to   section   one   hundred
     9  sixty-eight-q of the correction law; and
    10    (B)  The  United  States  Department  of Justice National Sex Offender
    11  public website;
    12    (iii) The TNC shall obtain and review, or have a  third  party  obtain
    13  and review, a driving history research report for such individual.
    14    (b) The TNC shall not permit an applicant where such applicant:
    15    (i)  fails  to  meet  all  qualifications  pursuant to section sixteen
    16  hundred ninety-nine of this article;
    17    (ii) is a match in the United States Department  of  Justice  National
    18  Sex Offender Public Website;
    19    (iii)  does not possess a valid New York driver's license, unless such
    20  applicant does possess a valid out of state driver's license  and  proof
    21  that  such  applicant  is an active duty member of the armed services of
    22  the United States stationed in this state or is a  family  or  household
    23  member of such an active duty member;
    24    (iv)  does  not possess proof of registration for the motor vehicle(s)
    25  used to provide TNC prearranged trips;
    26    (v) does not possess proof of automobile liability insurance  for  the
    27  motor vehicle(s) used to provide TNC prearranged trips as a TNC vehicle;
    28  or
    29    (vi) is not at least nineteen years of age.
    30    (c)  Upon  review  of all information received and retained by the TNC
    31  and upon verifying that the individual is not disqualified  pursuant  to
    32  this  section  from receiving a TNC driver permit, a TNC may issue a TNC
    33  driver permit to the applicant. The TNC  shall  review  all  information
    34  received  relating  to  such applicant and hold such information for six
    35  years along with  a  certification  that  such  applicant  qualifies  to
    36  receive a TNC driver permit.
    37    (d)  A  TNC that issues a TNC driver's permit pursuant to this section
    38  shall participate in the New York  License  Event  Notification  Service
    39  (LENS) established by the department to obtain timely notice when any of
    40  the following violations are added to a TNC driver's driving record:
    41    (i)  unlawfully  fleeing  a  police  officer  in  a  motor  vehicle in
    42  violation of sections 270.25, 270.30 or 270.35 of the penal law;
    43    (ii) reckless driving in violation of section one thousand two hundred
    44  twelve of this chapter;
    45    (iii) operating while license or privilege is suspended or revoked  in
    46  violation  of  section  five  hundred  eleven of this chapter, excluding
    47  subdivision seven of such section;
    48    (iv) operating a motor vehicle under the influence of alcohol or drugs
    49  in violation of section one thousand  one  hundred  ninety-two  of  this
    50  chapter; and
    51    (v) leaving the scene of an incident without reporting in violation of
    52  subdivision two of section six hundred of this chapter.
    53    (e) The name of a TNC driver associated with enrollment in the depart-
    54  ment's  LENS  reporting system is designated confidential whether or not
    55  so marked, is not subject to disclosure to a third party by the  depart-
    56  ment  without  prior  consent  of the TNC, and is exempt from disclosure

        S. 2008--A                         24                         A. 3008--A
 
     1  pursuant to article six of the public  officers  law.  Nothing  in  this
     2  section  shall  be  construed as limiting the applicability of any other
     3  exemptions under article six of the public officers law.
     4    (f)  No  person shall operate a TNC vehicle or operate as a TNC driver
     5  unless such person holds a valid TNC driver permit  issued  pursuant  to
     6  this  section.  A violation of this paragraph shall be a traffic infrac-
     7  tion punishable by a fine of not less than seventy-five  nor  more  than
     8  three  hundred  dollars,  or  by  imprisonment for not more than fifteen
     9  days, or by both such fine and imprisonment.
    10    2. A TNC shall implement a zero-tolerance policy regarding a TNC driv-
    11  er's activities while accessing the TNC's digital network.  Such  policy
    12  shall  address  the  issue of operating a vehicle under the influence of
    13  alcohol or drugs while a TNC driver is providing TNC  prearranged  trips
    14  or  is  logged  onto  the TNC's digital network but is not providing TNC
    15  prearranged trips, and the TNC shall provide notice of  this  policy  on
    16  its digital network, as well as procedures to report a complaint about a
    17  TNC  driver  with whom a TNC prearranged trip was commenced and whom the
    18  passenger reasonably suspects was operating a vehicle under  the  influ-
    19  ence of alcohol or drugs during the course of the TNC prearranged trip.
    20    3.  (a)  A TNC shall adopt a policy of non-discrimination on the basis
    21  of destination, race, color, national origin, religious belief, practice
    22  or affiliation, sex, disability, age, sexual orientation, gender identi-
    23  ty, or genetic predisposition with respect to passengers  and  potential
    24  passengers and notify TNC drivers of such policy.
    25    (b)  TNC  drivers shall comply with all applicable laws regarding non-
    26  discrimination against passengers or potential passengers on  the  basis
    27  of destination, race, color, national origin, religious belief, practice
    28  or affiliation, sex, disability, age, sexual orientation, gender identi-
    29  ty, or genetic predisposition.
    30    (c)  TNC  drivers  shall  comply  with all applicable laws relating to
    31  accommodation of service animals.
    32    (d) A TNC shall implement and maintain a policy of providing  accessi-
    33  bility  to  passengers  or  potential  passengers  with a disability and
    34  accommodation of service animals as such term is defined in section  one
    35  hundred  twenty-three-b  of the agriculture and markets law and shall to
    36  the extent practicable adopt findings established by the New York  state
    37  TNC accessibility task force adopted pursuant to section eighteen of the
    38  chapter  of  the laws of two thousand seventeen that added this section.
    39  A TNC shall not impose additional  charges  for  providing  services  to
    40  persons with physical disabilities because of those disabilities.
    41    4.  A  TNC  shall  require that any motor vehicle(s) that a TNC driver
    42  will use as a TNC vehicle to provide TNC prearranged trips meets  appli-
    43  cable  New  York state vehicle safety and emissions requirements, as set
    44  forth in section three hundred one of this chapter, or the vehicle safe-
    45  ty and emissions requirements of the  state  in  which  the  vehicle  is
    46  registered.
    47    5. A TNC driver shall display a consistent and distinctive trade dress
    48  consisting  of  a  removable  logo, insignia, or emblem at all times the
    49  driver is providing TNC services. The trade dress shall be:
    50    (a) Sufficiently large and color  contrasted  so  as  to  be  readable
    51  during daylight hours at a distance of fifty feet; and
    52    (b)  Reflective,  illuminated,  or  otherwise  patently visible in the
    53  darkness.
    54    § 1697. Maintenance of records. A TNC  shall  maintain  the  following
    55  records:

        S. 2008--A                         25                         A. 3008--A
 
     1    1.  individual  trip records for at least six years from the date each
     2  trip was provided; and
     3    2. individual records of TNC drivers at least until the six year anni-
     4  versary  of  the  date on which a TNC driver's relationship with the TNC
     5  has ended.
     6    § 1698. Audit procedures; confidentiality of records. 1. For the  sole
     7  purpose  of  verifying that a TNC is in compliance with the requirements
     8  of this article and  no  more  than  biannually,  the  department  shall
     9  reserve  the  right to visually inspect a sample of records that the TNC
    10  is required to maintain, upon request by the department  that  shall  be
    11  fulfilled  in  no  less than thirty business days by the TNC. The sample
    12  shall be chosen randomly by the department in a manner agreeable to both
    13  parties. The audit shall take place at a mutually agreed location in New
    14  York. Any record furnished to the  department  may  exclude  information
    15  that would tend to identify specific drivers or passengers.
    16    2.  (a)  The  TNC  shall  establish  a complaint procedure that allows
    17  passengers to file complaints with the TNC through  the  TNC's  website,
    18  mobile application, email address, or phone number.
    19    (b)  The  TNC's website shall also provide a passenger complaint tele-
    20  phone number and/or website address for the department, if applicable.
    21    (c) In response to a specific complaint against any TNC driver or TNC,
    22  the department is authorized to inspect records held by the TNC that are
    23  necessary to investigate and resolve the complaint.   The  TNC  and  the
    24  department shall endeavor to have the inspection take place at a mutual-
    25  ly  agreed  location in New York. Any record furnished to the department
    26  may exclude information that would tend to identify specific drivers  or
    27  passengers,  unless the identity of a driver or passenger is relevant to
    28  the complaint.
    29    (d) Any records inspected by the department  under  this  section  are
    30  designated  confidential, are not subject to disclosure to a third party
    31  by the department without prior consent of the TNC, and are exempt  from
    32  disclosure under article six of the public officers law. Nothing in this
    33  section  shall  be  construed as limiting the applicability of any other
    34  exemption under article six of the public officers law.
    35    3. The department shall  promulgate  regulations  for  the  filing  of
    36  complaints pursuant to this section.
    37    §  1699.  Criminal  history background check of transportation network
    38  company drivers. 1. A TNC shall conduct a  criminal  history  background
    39  check using a lawful method approved by the department pursuant to para-
    40  graph  (a)  of  subdivision  two of this section for persons applying to
    41  drive for such company.
    42    2. (a) The method used to conduct a criminal history background  check
    43  pursuant  to  subdivision  one  of  this section shall be established in
    44  regulations adopted by the department within thirty days of  the  effec-
    45  tive  date  of  this  subdivision.  Such regulations shall establish the
    46  method used to conduct such background  checks  and  any  processes  and
    47  operations  necessary  to  complete  such checks. The review of criminal
    48  history information and determinations about whether or not an applicant
    49  is issued a TNC driver permit shall be controlled by paragraphs (b), (c)
    50  and (d) of this subdivision.
    51    (b) An applicant shall be disqualified to receive a TNC driver  permit
    52  where he or she:
    53    (i)  stands  convicted  in the last three years of: unlawful fleeing a
    54  police officer in a motor  vehicle  in  violation  of  sections  270.35,
    55  270.30  or  270.25  of  the  penal law, reckless driving in violation of
    56  section twelve hundred twelve of this chapter, operating  while  license

        S. 2008--A                         26                         A. 3008--A
 
     1  or  privilege  is  suspended  or  revoked  in  violation of section five
     2  hundred eleven of this chapter,  excluding  subdivision  seven  of  such
     3  section,  a misdemeanor offense of operating a motor vehicle while under
     4  the  influence  of alcohol or drugs in violation of section one thousand
     5  one hundred ninety-two of this chapter, or leaving the scene of an acci-
     6  dent in violation of subdivision two of  section  six  hundred  of  this
     7  chapter.  In  calculating the three year period under this subparagraph,
     8  any period of time during which the person was  incarcerated  after  the
     9  commission  of such offense shall be excluded and such three year period
    10  shall be extended by a period or periods equal to the time spent  incar-
    11  cerated  and shall be determined in a manner consistent with regulations
    12  established by the department; or
    13    (ii) stands convicted in the  last  seven  years  of:  a  sex  offense
    14  defined  in  subdivision two of section one hundred sixty-eight-a of the
    15  correction law, a felony offense defined in article one hundred  twenty-
    16  five of the penal law, a violent felony offense defined in section 70.02
    17  of  the  penal  law,  a class A felony offense defined in the penal law,
    18  vehicular assault as defined in section 120.03, 120.04  or  120.04-a  of
    19  the  penal law, a felony offense defined in section eleven hundred nine-
    20  ty-two of this chapter, an offense  for  which  registration  as  a  sex
    21  offender is required pursuant to article six-C of the correction law, or
    22  any  conviction of an offense in any other jurisdiction that has all the
    23  essential elements of an offense listed in this subparagraph. In  calcu-
    24  lating the seven year period under this subparagraph, any period of time
    25  during  which  the  person was incarcerated after the commission of such
    26  offense shall be excluded and such seven year period shall  be  extended
    27  by a period or periods equal to the time spent incarcerated and shall be
    28  determined  in  a  manner consistent with regulations established by the
    29  department.
    30    (c) A criminal history record that contains criminal conviction infor-
    31  mation that does not disqualify an applicant pursuant  to  subparagraphs
    32  (i)  or (ii) of paragraph (b) of this subdivision, shall be reviewed and
    33  considered according to the provisions of article twenty-three-A of  the
    34  correction  law  and  subdivisions  fifteen  and  sixteen of section two
    35  hundred ninety-six of the executive law in determining  whether  or  not
    36  the applicant should be issued a TNC driver's permit.
    37    (d)  Upon  receipt of criminal conviction information pursuant to this
    38  section for any applicant, such applicant  shall  promptly  be  provided
    39  with  a  copy  of  such information as well as a copy of article twenty-
    40  three-A of the correction law. Such applicant shall also be informed  of
    41  his  or  her  right  to  seek  correction  of  any incorrect information
    42  contained in such criminal history information  pursuant  to  the  regu-
    43  lations  and  procedures established by the division of criminal justice
    44  services.
    45    (e) The department shall promulgate regulations  consistent  with  the
    46  provisions of this subdivision.
    47    3.  A  TNC  shall  update the criminal history background check yearly
    48  during the period in which the person is authorized  to  drive  for  the
    49  company,  however, the commissioner may require, pursuant to regulation,
    50  more frequent criminal history background checks.
    51    4. A TNC shall be responsible for all fees associated with the  crimi-
    52  nal history check pursuant to subdivision one of this section.
    53    5.  Any  TNC  found  to have negligently, recklessly, or intentionally
    54  violated any requirements established pursuant to this section, shall on
    55  the first instance, be subject to a civil penalty of not more  than  ten
    56  thousand  dollars.  For any subsequent instance within the period of two

        S. 2008--A                         27                         A. 3008--A

     1  years from any initial violation, such TNC shall be subject to  a  civil
     2  penalty  of  not  more than fifty thousand dollars, or the suspension or
     3  revocation of its TNC license or both.
     4    §  1700. Controlling authority. 1. Notwithstanding any other provision
     5  of law, the regulation of TNCs and TNC drivers is  governed  exclusively
     6  by  the  provisions of the chapter of the laws of two thousand seventeen
     7  which added this section and any rules promulgated by the state  through
     8  its  agencies  consistent  with  such  chapter. No county, town, city or
     9  village may enact a tax or any fee or other surcharge on a  TNC,  a  TNC
    10  driver,  or  a  TNC  vehicle  used by a TNC driver or require a license,
    11  permit, or additional insurance coverage or  any  other  limitations  or
    12  restrictions,  where  such  fee,  surcharge,  unauthorized tax, license,
    13  permit, insurance coverage, limitation or restriction, relates to facil-
    14  itating or providing TNC prearranged trips, or subjects  a  TNC,  a  TNC
    15  driver,  or  a TNC vehicle used by a TNC driver to operational, or other
    16  requirements.
    17    2. Nothing in this article shall authorize any TNC driver to pick-up a
    18  passenger for purposes of a TNC prearranged trip in a city with a  popu-
    19  lation of one million or more.
    20    3.  Nothing  in this article shall: (a) limit the ability of a county,
    21  town, city or village to adopt or amend generally applicable limitations
    22  or restrictions relating to local traffic or parking control as  author-
    23  ized by state law; or (b) to preempt any reciprocity agreements, includ-
    24  ing  agreements  entered  into  pursuant to section four hundred ninety-
    25  eight of this chapter, between a county,  town,  city  or  village  that
    26  relates  to  services regulated by section one hundred eighty-one of the
    27  general municipal law.
    28    § 3. Section 370 of the vehicle and traffic law is amended by adding a
    29  new subdivision 8 to read as follows:
    30    8. Notwithstanding any other provision of this article, an  individual
    31  shall  not be deemed to be engaged in the business of carrying or trans-
    32  porting passengers for hire if the individual does so solely as a trans-
    33  portation network company driver in accordance with article forty-four-B
    34  of this chapter.
    35    § 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as
    36  amended by chapter 781 of the laws  of  1983,  is  amended  to  read  as
    37  follows:
    38    1.  Upon issuance of an owner's policy of liability insurance or other
    39  financial security required by this chapter or the article  forty-four-B
    40  of this chapter, an insurer shall issue proof of insurance in accordance
    41  with  the  regulations promulgated by the commissioner pursuant to para-
    42  graph (b) of subdivision two of section three hundred thirteen  of  this
    43  article.
    44    § 5. Section 600 of the vehicle and traffic law, as amended by chapter
    45  49 of the laws of 2005, is amended to read as follows:
    46    § 600. Leaving  scene  of  an  incident without reporting. 1. Property
    47  damage. a. Any person operating a motor vehicle who, knowing  or  having
    48  cause to know that damage has been caused to the real property or to the
    49  personal property, not including animals, of another, due to an incident
    50  involving  the motor vehicle operated by such person shall, before leav-
    51  ing the place where the  damage  occurred,  stop,  exhibit  his  or  her
    52  license  and  insurance  identification card for such vehicle, when such
    53  card is required pursuant to articles six and eight of this chapter, and
    54  give his or her name, residence, including street and number,  insurance
    55  carrier  and  insurance  identification  information  including  but not
    56  limited to the number and effective dates of said individual's insurance

        S. 2008--A                         28                         A. 3008--A
 
     1  policy, and license number to the party sustaining  the  damage,  or  in
     2  case  the person sustaining the damage is not present at the place where
     3  the damage occurred then he or she shall report  the  same  as  soon  as
     4  physically  able to the nearest police station, or judicial officer.  In
     5  addition to the foregoing, any such person shall also: (i)  produce  the
     6  proof of insurance coverage required pursuant to article forty-four-B of
     7  this  chapter  if  such  person  is a TNC driver operating a TNC vehicle
     8  while the incident occurred who was either (A) logged on  to  the  TNC's
     9  digital network and available to receive transportation requests but not
    10  engaged  in  a  TNC  prearranged  trip or (B) was logged on to the TNC's
    11  digital network and was engaged in a  TNC  prearranged  trip;  and  (ii)
    12  disclose  whether  he  or  she,  at the time such incident occurred, was
    13  either (A) logged on to the  TNC's  digital  network  and  available  to
    14  receive  transportation  requests  but  not engaged in a TNC prearranged
    15  trip or (B) was logged on to the TNC's digital network and  was  engaged
    16  in a TNC prearranged trip.
    17    b.  It shall be the duty of any member of a law enforcement agency who
    18  is at the scene of the accident to request the said operator  or  opera-
    19  tors  of  the  motor  vehicles,  when physically capable of doing so, to
    20  exchange the information required hereinabove and such member of  a  law
    21  enforcement  agency  shall  assist  such operator or operators in making
    22  such exchange of information in a reasonable and harmonious manner.
    23    A violation of the provisions of paragraph a of this subdivision shall
    24  constitute a traffic infraction punishable  by  a  fine  of  up  to  two
    25  hundred  fifty  dollars  or a sentence of imprisonment for up to fifteen
    26  days or both such fine and imprisonment.
    27    2. Personal injury.   a. Any person operating  a  motor  vehicle  who,
    28  knowing  or having cause to know that personal injury has been caused to
    29  another person, due to an incident involving the motor vehicle  operated
    30  by  such  person shall, before leaving the place where the said personal
    31  injury occurred, stop, exhibit his or her license  and  insurance  iden-
    32  tification card for such vehicle, when such card is required pursuant to
    33  articles  six and eight of this chapter, and give his or her name, resi-
    34  dence, including street and street number, insurance carrier and  insur-
    35  ance  identification information including but not limited to the number
    36  and effective dates of said individual's insurance  policy  and  license
    37  number,  to  the injured party, if practical, and also to a police offi-
    38  cer, or in the event that no police officer is in the  vicinity  of  the
    39  place of said injury, then, he or she shall report said incident as soon
    40  as  physically  able  to the nearest police station or judicial officer.
    41  In addition to the foregoing, any such person shall  also:  (i)  produce
    42  the   proof   of   insurance   coverage  required  pursuant  to  article
    43  forty-four-B of this chapter if such person is a TNC driver operating  a
    44  TNC  vehicle at the time of the incident who was either (A) logged on to
    45  the TNC's  digital  network  and  available  to  receive  transportation
    46  requests  but not engaged in a TNC prearranged trip or (B) was logged on
    47  to the TNC's digital network and was engaged in a TNC prearranged  trip;
    48  and (ii) disclose whether he or she, at the time such incident occurred,
    49  was  either  (A) logged on to the TNC's digital network and available to
    50  receive transportation requests but not engaged  in  a  TNC  prearranged
    51  trip  or  (B) was logged on to the TNC's digital network and was engaged
    52  in a TNC prearranged trip.
    53    b. It shall be the duty of any member of a law enforcement agency  who
    54  is  at  the scene of the accident to request the said operator or opera-
    55  tors of the motor vehicles, when physically  capable  of  doing  so,  to
    56  exchange  the  information required hereinabove and such member of a law

        S. 2008--A                         29                         A. 3008--A
 
     1  enforcement agency shall assist such operator  or  operators  in  making
     2  such exchange of information in a reasonable and harmonious manner.
     3    c.  A  violation  of the provisions of paragraph a of this subdivision
     4  resulting solely from the failure of an operator to exhibit his  or  her
     5  license  and  insurance  identification card for the vehicle or exchange
     6  the information required in such paragraph shall constitute  a  class  B
     7  misdemeanor  punishable by a fine of not less than two hundred fifty nor
     8  more than five hundred  dollars  in  addition  to  any  other  penalties
     9  provided  by law. Any subsequent such violation shall constitute a class
    10  A misdemeanor punishable by a fine of not less  than  five  hundred  nor
    11  more  than  one  thousand  dollars  in  addition  to any other penalties
    12  provided by law. Any violation of the provisions of paragraph a of  this
    13  subdivision,  other  than for the mere failure of an operator to exhibit
    14  his or her license and insurance identification card for such vehicle or
    15  exchange the information required in such paragraph, shall constitute  a
    16  class  A misdemeanor, punishable by a fine of not less than five hundred
    17  dollars nor more than one thousand dollars  in  addition  to  any  other
    18  penalties  provided  by  law.  Any  such violation committed by a person
    19  after such person has previously been  convicted  of  such  a  violation
    20  shall constitute a class E felony, punishable by a fine of not less than
    21  one thousand nor more than two thousand five hundred dollars in addition
    22  to  any other penalties provided by law. Any violation of the provisions
    23  of paragraph a of this subdivision, other than for the mere  failure  of
    24  an  operator  to exhibit his or her license and insurance identification
    25  card for such vehicle or exchange the information required in such para-
    26  graph, where the personal injury involved (i) results in  serious  phys-
    27  ical injury, as defined in section 10.00 of the penal law, shall consti-
    28  tute  a  class  E  felony,  punishable  by  a  fine of not less than one
    29  thousand nor more than five thousand dollars in addition  to  any  other
    30  penalties  provided  by law, or (ii) results in death shall constitute a
    31  class D felony punishable by a fine of not less than  two  thousand  nor
    32  more  than  five  thousand  dollars  in  addition to any other penalties
    33  provided by law.
    34    3. For the purposes of this article, the terms  "TNC",  "TNC  driver",
    35  "TNC  vehicle",  "TNC prearranged trip" and "digital network" shall have
    36  the same meanings as such terms are defined in article  forty-four-B  of
    37  this chapter.
    38    § 5-a. Section 601 of the vehicle and traffic law, as amended by chap-
    39  ter 672 of the laws of 2004, is amended to read as follows:
    40    §  601.  Leaving scene of injury to certain animals without reporting.
    41  Any person operating a motor vehicle which shall strike and  injure  any
    42  horse,  dog,  cat or animal classified as cattle shall stop and endeavor
    43  to locate the owner or custodian of such animal or a  police,  peace  or
    44  judicial  officer  of  the  vicinity,  and take any other reasonable and
    45  appropriate action so that the animal may have necessary attention,  and
    46  shall  also promptly report the matter to such owner, custodian or offi-
    47  cer (or if no one of such has been located, then to a police officer  of
    48  some  other  nearby community), exhibiting his or her license and insur-
    49  ance identification card for such vehicle, when such  card  is  required
    50  pursuant  to  articles  six and eight of this chapter, giving his or her
    51  name and residence, including street and street number, insurance carri-
    52  er and insurance identification information and license number. In addi-
    53  tion to the foregoing, any such person shall also: (i) produce the proof
    54  of insurance coverage required pursuant to article forty-four-B of  this
    55  chapter  is  such  person is a TNC driver operating a TNC vehicle at the
    56  time of the incident who was either (A) logged on to the  TNC's  digital

        S. 2008--A                         30                         A. 3008--A
 
     1  network and available to receive transportation requests but not engaged
     2  in  a  TNC  prearranged  trip  or (B) was logged on to the TNC's digital
     3  network and was engaged in a TNC  prearranged  trip  and  (ii)  disclose
     4  whether  he  or  she, at the time such incident occurred, was either (A)
     5  logged on to the TNC's digital network and available to  receive  trans-
     6  portation  requests but not engaged in a TNC prearranged trip or (B) was
     7  logged on to the TNC's digital network and was engaged in a  TNC  prear-
     8  ranged  trip. Violation of this section shall be punishable by a fine of
     9  not more than one hundred dollars for a first offense and by a  fine  of
    10  not less than fifty nor more than one hundred fifty dollars for a second
    11  offense  and each subsequent offense; provided, however where the animal
    12  that has been struck and injured is a guide dog, hearing dog or  service
    13  dog,  as  such  terms  are defined in section forty-seven-b of the civil
    14  rights law which is actually engaged in aiding or guiding a person  with
    15  a disability, a violation of this section shall be [publishable] punish-
    16  able  by  a  fine of not less than fifty nor more than one hundred fifty
    17  dollars for a first offense and by a fine of not less than  one  hundred
    18  fifty  dollars  nor more than three hundred dollars for a second offense
    19  and each subsequent offense.
    20    § 6. The insurance law is amended by adding a new section 3455 to read
    21  as follows:
    22    § 3455. Transportation network company group insurance policies.   (a)
    23  For purposes of this section, the following definitions shall apply:
    24    (1)  "Transportation  network  company" shall have the same meaning as
    25  set forth in article forty-four-B of the vehicle and traffic law.
    26    (2) "Certificate" or "certificate  of  insurance"  means  any  policy,
    27  contract  or other evidence of insurance, or endorsement thereto, issued
    28  to a group member under a transportation network company group policy.
    29    (3) "Transportation network company group policy"  or  "group  policy"
    30  means  a  group  policy,  including  certificates  issued  to  the group
    31  members, where the group policyholder is a transportation network compa-
    32  ny and the policy  provides  insurance  to  the  transportation  network
    33  company and to group members:
    34    (A) in accordance with the requirements of article forty-four-B of the
    35  vehicle and traffic law;
    36    (B) of the type described in paragraph thirteen, fourteen, or nineteen
    37  of  subsection  (a) of section one thousand one hundred thirteen of this
    38  chapter; and
    39    (C) in satisfaction of the financial responsibility  requirements  set
    40  forth  in  section  three  thousand four hundred twenty of this article,
    41  subdivision four of section three hundred  eleven  of  the  vehicle  and
    42  traffic  law, article fifty-one of this chapter, and such other require-
    43  ments or regulations that may apply for the purposes of  satisfying  the
    44  financial  responsibility requirements with respect to the use or opera-
    45  tion of a motor vehicle.
    46    (4) "Group member" means a transportation network  company  driver  as
    47  defined in article forty-four-B of the vehicle and traffic law.
    48    (5) "Group policyholder" means a transportation network company.
    49    (6)  "TNC  vehicle" shall have the meaning set forth in article forty-
    50  four-B of the vehicle and traffic law.
    51    (b) An insurer may issue or issue for delivery in this state a  trans-
    52  portation  network  company  group  policy  to  a transportation network
    53  company as a group policyholder only in accordance with  the  provisions
    54  of this section.

        S. 2008--A                         31                         A. 3008--A
 
     1    (c)(1)  A  transportation  network  company group policy shall provide
     2  coverage for a TNC vehicle in accordance with the requirements of  arti-
     3  cle forty-four-B of the vehicle and traffic law.
     4    (2) A transportation network company group policy may provide:
     5    (A) coverage for limits higher than the minimum limits required pursu-
     6  ant to article forty-four-B of the vehicle and traffic law.
     7    (B) supplementary uninsured/underinsured motorists insurance for bodi-
     8  ly  injury  pursuant to paragraph two of subsection (f) of section three
     9  thousand four hundred twenty of this article;
    10    (C) supplemental spousal liability insurance  pursuant  to  subsection
    11  (g) of section three thousand four hundred twenty of this chapter; and
    12    (D)  motor  vehicle physical damage coverage as described in paragraph
    13  nineteen of subsection (a) of section one thousand one hundred  thirteen
    14  of this chapter.
    15    (3)  The  coverage  described  in  paragraphs  one  and  two  of  this
    16  subsection may be provided in one group  policy  or  in  separate  group
    17  policies.
    18    (4)  A  transportation network company group policy, including certif-
    19  icates, shall be issued by  authorized  insurers  or  from  excess  line
    20  brokers  pursuant to section sixteen hundred ninety-three of the vehicle
    21  and traffic law.
    22    (5) A policyholder also may be an insured under a group policy.
    23    (d) The premium for the transportation network company  group  policy,
    24  including  certificates  may  be paid by the group policyholder from the
    25  funds contributed:
    26    (1) wholly by the group policyholder;
    27    (2) wholly by the group members; or
    28    (3) jointly by the group policyholder and the group members.
    29    (e) (1) Any policy dividend, retrospective premium credit,  or  retro-
    30  spective premium refund in respect of premiums paid by the group policy-
    31  holder may:
    32    (A) be applied to reduce the premium contribution of the group policy-
    33  holder, but not in excess of the proportion to its contribution; or
    34    (B) be retained by the group policyholder.
    35    (2)  Any  policy dividend, retrospective premium credit, or retrospec-
    36  tive  premium  refund  not  distributed  under  paragraph  one  of  this
    37  subsection shall be:
    38    (A)  applied  to  reduce  future  premiums  and,  accordingly,  future
    39  contributions, of existing or future group members, or both; or
    40    (B) paid or refunded to those group members insured on  the  date  the
    41  payment  or  refund is made to the group policyholder, if distributed by
    42  the group policyholder, or  on  the  date  of  mailing,  if  distributed
    43  directly by the insurer, subject to the following requirements:
    44    (i) The insurer shall be responsible for determining the allocation of
    45  the payment of refund to the group members;
    46    (ii)  If the group policyholder distributes the payment or refund, the
    47  insurer shall be responsible for audit to ascertain that the payment  or
    48  refund is actually made in accordance with the allocation procedure; and
    49    (iii)  If  the group policyholder fails to make the payment or refund,
    50  the insurer shall make the payment or refund directly or use the  method
    51  provided in subparagraph (A) of this paragraph.
    52    (3)  Notwithstanding  paragraphs  one and two of this subsection, if a
    53  dividend accrues upon termination of  coverage  under  a  transportation
    54  network  company  group  policy,  the  premium for which was paid out of
    55  funds contributed by group members specifically for  the  coverage,  the
    56  dividend  shall  be  paid  or  refunded by the group policyholder to the

        S. 2008--A                         32                         A. 3008--A
 
     1  group members insured on the date the payment or refund is made  to  the
     2  group  policyholder,  net  of  reasonable expenses incurred by the group
     3  policyholder in paying or refunding the dividend to such group members.
     4    (4)  For the purposes of this subsection, "dividend" means a return by
     5  the insurer of a transportation network company group policy  of  excess
     6  premiums  to  the  group policyholder in light of favorable loss experi-
     7  ence, including retrospective premium credits or  retrospective  premium
     8  refunds.  The  term  "dividend"  does not include reimbursements or fees
     9  received by a group policyholder in connection  with  the  operation  or
    10  administration of a transportation network company group policy, includ-
    11  ing  administrative  reimbursements,  fees  for services provided by the
    12  group policyholder, or transactional service fees.
    13    (f) The insurer shall treat in like manner all eligible group  members
    14  of the same class and status.
    15    (g)  Each  policy  written  pursuant to this section shall provide per
    16  occurrence limits of coverage for each group member  in  an  amount  not
    17  less  than  that  required by this article, and may provide coverage for
    18  limits higher than the minimum limits required under the law.
    19    (h) (1) The insurer shall be responsible for mailing or delivery of  a
    20  certificate  of  insurance to each group member insured under the trans-
    21  portation network company group  policy,  provided,  however,  that  the
    22  insurer  may  delegate  the  mailing  or  delivery to the transportation
    23  network company. The insurer shall also be responsible for  the  mailing
    24  or  delivery to each group member of an amended certificate of insurance
    25  or endorsement to the certificate, whenever there is a change in limits;
    26  change in type of  coverage;  addition,  reduction,  or  elimination  of
    27  coverage;  or  addition  of  exclusion, under the transportation network
    28  company group policy or certificate if such  change  materially  affects
    29  the coverage available to such group member.
    30    (2)  The certificate shall contain in substance all material terms and
    31  conditions of coverage afforded to group members, unless the transporta-
    32  tion network company group policy is incorporated  by  reference  and  a
    33  copy of the group policy accompanies the certificate.
    34    (3) If any coverage afforded to the group member is excess of applica-
    35  ble  insurance coverage, the certificate shall contain a notice advising
    36  the group members that, if the  member  has  other  insurance  coverage,
    37  specified coverages under the transportation network company group poli-
    38  cy will be excess over the other insurance.
    39    (i)  A  group policyholder shall comply with the provisions of section
    40  two thousand one hundred twenty-two of this chapter, in the same  manner
    41  as  an  agent or broker, in any advertisement, sign, pamphlet, circular,
    42  card, or other public announcement referring to coverage under a  trans-
    43  portation network company group policy or certificate.
    44    (j) A transportation network company group policy shall not be subject
    45  to  section  three  thousand  four  hundred twenty-five or section three
    46  thousand four hundred twenty-six of  this  article;  provided  that  the
    47  following  requirements shall apply with regard to termination of cover-
    48  age:
    49    (1)(A) An insurer may terminate a group policy or certificate only  if
    50  cancellation is based on one or more of the reasons set forth in subpar-
    51  agraph (A) through (D) or (F) through (H) of paragraph one of subsection
    52  (c)  of  section three thousand four hundred twenty-six of this article;
    53  provided, however, that an act or omission by a group member that  would
    54  constitute the basis for cancellation of an individual certificate shall
    55  not constitute the basis for cancellation of the group policy.

        S. 2008--A                         33                         A. 3008--A
 
     1    (B)  Where the premium is derived wholly from funds contributed by the
     2  group policyholder, an insurer may cancel an individual certificate only
     3  if cancellation is based on one or more of  the  reasons  set  forth  in
     4  subparagraph  (B),  (C)  or  (H)  of  paragraph one of subsection (c) of
     5  section three thousand four hundred twenty-six of this article.
     6    (2)  (A)  An  insurer's  cancellation of a group policy, including all
     7  certificates, shall not become effective until  thirty  days  after  the
     8  insurer  mails  or  delivers written notice of cancellation to the group
     9  policyholder at the mailing address shown in the policy.
    10    (i) Where all or part of the premium is derived from funds contributed
    11  by the group member specifically for the  coverage,  the  insurer  shall
    12  also  mail or deliver written notice of cancellation of the group policy
    13  to the group member at the group member's mailing address. Such  cancel-
    14  lation  shall  not  become effective until thirty days after the insurer
    15  mails or delivers the written notice to the group member.
    16    (ii) Where none of the premium is derived from funds contributed by  a
    17  group  member  specifically  for  the  coverage, the group policy holder
    18  shall mail or deliver written notice to the group  member  advising  the
    19  group  member  of the cancellation of the group policy and the effective
    20  date of cancellation. The group policy holder shall mail or deliver  the
    21  written notice within ninety days after receiving notice of cancellation
    22  from the insurer.
    23    (B)  An  insurer's cancellation of an individual certificate shall not
    24  become effective until thirty days after the insurer mails  or  delivers
    25  written notice of cancellation to the group member at the group member's
    26  mailing  address  and  to  the group policyholder at the mailing address
    27  shown in the group policy.
    28    (3) (A) A group policyholder may cancel a group policy, including  all
    29  certificates,  or any individual certificate, for any reason upon thirty
    30  days written notice to the insurer and each group member; and
    31    (B) The group policyholder shall mail or  deliver  written  notice  to
    32  each  affected  group member of the group policyholder's cancellation of
    33  the group policy or certificate and the effective date of  cancellation.
    34  The  group  policyholder shall mail or deliver the written notice to the
    35  group member's mailing address at least thirty days prior to the  effec-
    36  tive date of cancellation.
    37    (4) (A) Unless a group policy provides for a longer policy period, the
    38  policy  and  all  certificates shall be issued or renewed for a one-year
    39  policy period.
    40    (B) The group policyholder shall be entitled to renew the group policy
    41  and all certificates upon timely payment of the premium  billed  to  the
    42  group policyholder for the renewal, unless:
    43    (i)  the  insurer  mails or delivers to the group policyholder and all
    44  group members written notice of nonrenewal, or conditional renewal; and
    45    (ii) the insurer mails or delivers the written notice at least thirty,
    46  but not more than one hundred twenty days prior to the  expiration  date
    47  specified  in  the policy or, if no date is specified, the next anniver-
    48  sary date of the policy.
    49    (5) Where the group policyholder nonrenews the group policy, the group
    50  policyholder shall mail or deliver written notice to each  group  member
    51  advising  the  group  member  of  nonrenewal of the group policy and the
    52  effective date of nonrenewal.  The  group  policyholder  shall  mail  or
    53  deliver written notice at least thirty days prior to the nonrenewal.
    54    (6)  Every  notice of cancellation, nonrenewal, or conditional renewal
    55  shall set forth the specific reason or reasons for cancellation,  nonre-
    56  newal, or conditional renewal.

        S. 2008--A                         34                         A. 3008--A
 
     1    (7) (A) An insurer shall not be required under this subsection to give
     2  notice  to  a group member if the insurer has been advised by either the
     3  group policyholder or another insurer that substantially similar  cover-
     4  age has been obtained from the other insurer without lapse of coverage.
     5    (B)  A  group policyholder shall not be required under this subsection
     6  to give notice to a group member if substantially similar  coverage  has
     7  been obtained from another insurer without lapse of coverage.
     8    (8)  (A)  If, prior to the effective date of cancellation, nonrenewal,
     9  or conditional renewal of the group policy, or  a  certificate,  whether
    10  initiated  by  the insurer, group policyholder or by the group member in
    11  regard to the group member's certificate, coverage attaches pursuant  to
    12  the  terms of a group policy, then the coverage shall be effective until
    13  expiration of the applicable period of coverage provided  in  the  group
    14  policy  notwithstanding  the  cancellation,  nonrenewal  or  conditional
    15  nonrenewal of the group policy.
    16    (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may
    17  terminate coverage under an individual certificate on the effective date
    18  of cancellation, if the certificate is cancelled in accordance with  the
    19  provisions of subparagraph (B) of paragraph one of this subsection.
    20    (k)  Any  mailing  or delivery to a group member required or permitted
    21  under this section may be made by electronic mail, or  other  electronic
    22  means,  if  consent  to  such  method  of  delivery  has been previously
    23  received from such group member.
    24    (l) An insurer may issue a transportation network company group policy
    25  to a transportation network company, notwithstanding that it  may  be  a
    26  condition of operating a vehicle on the transportation network company's
    27  digital network for the TNC driver to participate in such group policy.
    28    (m)  An  insurer shall not include a mandatory arbitration clause in a
    29  policy  that  provides  financial  responsibility  coverage  under  this
    30  section except as permitted in section five thousand one hundred five of
    31  this chapter.
    32    §  6-a. Subsection (g) of section 5102 of the insurance law is amended
    33  to read as follows:
    34    (g) "Insurer" means the insurance company or self-insurer, as the case
    35  may be, which provides the financial security required  by  article  six
    36  [or], eight, or forty-four-B of the vehicle and traffic law.
    37    § 7. Subsection (b) of section 5103 of the insurance law is amended by
    38  adding a new paragraph 4 to read as follows:
    39    (4)  Is  injured  while a motor vehicle is being used or operated by a
    40  TNC driver pursuant to article forty-four-B of the vehicle  and  traffic
    41  law,  provided,  however, that an insurer may not include this exclusion
    42  in a policy used to satisfy the requirements under article  forty-four-B
    43  of the vehicle and traffic law.
    44    §  8. Subsection (d) of section 5106 of the insurance law, as added by
    45  chapter 452 of the laws of 2005, is amended to read as follows:
    46    (d)  [Where]  (1)  Except  as  provided  in  paragraph  two  of   this
    47  subsection, where there is reasonable belief more than one insurer would
    48  be  the  source  of  first  party benefits, the insurers may agree among
    49  themselves, if there is a valid basis therefor, that one  of  them  will
    50  accept  and pay the claim initially. If there is no such agreement, then
    51  the first insurer to whom notice of claim is given shall be  responsible
    52  for  payment.  Any such dispute shall be resolved in accordance with the
    53  arbitration procedures established pursuant to section five thousand one
    54  hundred five of this article and [regulation] regulations as promulgated
    55  by the superintendent, and any insurer paying first-party benefits shall
    56  be reimbursed by other insurers for their  proportionate  share  of  the

        S. 2008--A                         35                         A. 3008--A
 
     1  costs  of  the claim and the allocated expenses of processing the claim,
     2  in accordance with the provisions entitled "other coverage" contained in
     3  regulation and the provisions entitled  "other  sources  of  first-party
     4  benefits"  contained  in regulation. If there is no such insurer and the
     5  motor vehicle accident occurs in this state, then an applicant who is  a
     6  qualified  person  as defined in article fifty-two of this chapter shall
     7  institute the claim against the motor vehicle  accident  indemnification
     8  corporation.
     9    (2)  A  group  policy  issued  pursuant to section three thousand four
    10  hundred fifty-five of this  chapter,  to  satisfy  the  requirements  of
    11  section  sixteen  hundred  ninety-three  of the vehicle and traffic law,
    12  shall provide first party benefits when a dispute exists as to whether a
    13  driver was using or operating a  motor  vehicle  in  connection  with  a
    14  transportation  network  company  when  loss,  damage,  injury, or death
    15  occurs. A transportation network company shall notify the  insurer  that
    16  issued  the  owner's policy of liability insurance of the dispute within
    17  ten business days of becoming aware that the dispute exists. When  there
    18  is  a  dispute,  the group insurer liable for the payment of first party
    19  benefits under a group policy, to satisfy the  requirements  of  section
    20  sixteen  hundred ninety-three of the vehicle and traffic law, shall have
    21  the right to recover the amount paid from the driver's  insurer  to  the
    22  extent  that  such  insurer  would have been liable to pay damages in an
    23  action at law.
    24    § 9. Subsection (b) of section 2305 of the insurance law,  as  amended
    25  by  chapter  11  of the laws of 2008, paragraph 13 as amended by chapter
    26  136 of the laws of 2008, is amended to read as follows:
    27    (b) rate filings for:
    28    (1) workers' compensation insurance;
    29    (2) motor vehicle insurance, or  surety  bonds,  required  by  section
    30  three  hundred  seventy of the vehicle and traffic law or article forty-
    31  four-B of the vehicle and traffic law;
    32    (3) joint underwriting;
    33    (4) motor vehicle assigned risk insurance;
    34    (5) insurance issued by the New York Property  Insurance  Underwriting
    35  Association;
    36    (6)  risk  sharing  plans  authorized  by  section  two thousand three
    37  hundred eighteen of this article;
    38    (7) title insurance;
    39    (8) medical malpractice liability insurance;
    40    (9) insurance issued by the Medical Malpractice Insurance Association;
    41    (10) mortgage guaranty insurance;
    42    (11) credit property insurance, as defined  in  section  two  thousand
    43  three hundred forty of this article; [and]
    44    (12) gap insurance; and
    45    (13)  [Private]  private  passenger  automobile  insurance,  except as
    46  provided in section two thousand three hundred fifty of this article[.],
    47  shall be filed with the superintendent and shall  not  become  effective
    48  unless  either  the  filing  has been approved or thirty days, which the
    49  superintendent may with cause extend an additional thirty days and  with
    50  further  cause  extend  an additional fifteen days, have elapsed and the
    51  filing has not been disapproved as failing to meet the  requirements  of
    52  this  article, including the standard that rates be not otherwise unrea-
    53  sonable. After a rate filing becomes effective, the filing and  support-
    54  ing  information  shall  be  open  to  public inspection. If a filing is
    55  disapproved, then notice of such disapproval order shall be given, spec-
    56  ifying in what respects such filing fails to meet  the  requirements  of

        S. 2008--A                         36                         A. 3008--A
 
     1  this  article.  Upon  his  or  her  request, the superintendent shall be
     2  provided with support and  assistance  from  the  workers'  compensation
     3  board  and  other state agencies and departments with appropriate juris-
     4  diction.  The  loss  cost multiplier for each insurer providing coverage
     5  for workers' compensation, as defined by regulation promulgated  by  the
     6  superintendent,  shall be promptly displayed on the department's website
     7  and updated in the event of any change.
     8    § 10. Paragraph 1 of subsection (a) of section 3425 of  the  insurance
     9  law,  as  amended by chapter 235 of the laws of 1989, is amended to read
    10  as follows:
    11    (1) "Covered policy" means a contract of  insurance,  referred  to  in
    12  this section as "automobile insurance", issued or issued for delivery in
    13  this  state,  on  a  risk  located  or  resident in this state, insuring
    14  against losses or liabilities arising out of the  ownership,  operation,
    15  or use of a motor vehicle, predominantly used for non-business purposes,
    16  when  a  natural person is the named insured under the policy of automo-
    17  bile insurance; provided, however, that the  use  or  operation  of  the
    18  motor  vehicle  by  a  transportation network driver as a TNC vehicle in
    19  accordance with article forty-four-B of  the  vehicle  and  traffic  law
    20  shall  not be included in determining whether the motor vehicle is being
    21  used predominantly for non-business purposes.
    22    § 11. The executive law is amended by adding a new article 6-H to read
    23  as follows:
    24                                 ARTICLE 6-H
    25                   TRANSPORTATION NETWORK COMPANY DRIVER'S
    26                          INJURY COMPENSATION FUND
    27  Section 160-aaaa. Definitions.
    28          160-bbbb. Transportation network company driver's injury compen-
    29                      sation fund, Inc.
    30          160-cccc. Supervision of transportation network companies.
    31          160-dddd. Management of the fund.
    32          160-eeee. Plan of operation.
    33          160-ffff. Membership.
    34          160-gggg. Securing of compensation.
    35          160-hhhh. Assessment of fund members.
    36          160-iiii. Certified financial statements.
    37          160-jjjj. Exemption from taxes.
    38          160-kkkk. Liability insurance.
    39          160-llll. Regulations.
    40          160-mmmm. Violations.
    41    § 160-aaaa. Definitions. As used in this article:
    42    1. "Transportation network company driver" or "TNC  driver"  means  an
    43  individual who:
    44    (a)  receives connections to potential passengers and related services
    45  from a transportation network company in exchange for payment of  a  fee
    46  to the transportation network company;
    47    (b)  uses  a TNC vehicle to offer or provide a TNC prearranged trip to
    48  transportation network company  passengers  upon  connection  through  a
    49  digital  network  controlled  by  a  transportation  network  company in
    50  exchange for compensation or payment of a fee; and
    51    (c) whose injury arose out of and in the course  of  providing  a  TNC
    52  prearranged  trip through a digital network operated by a transportation
    53  network company that is a registered member of the New York  transporta-
    54  tion network company driver's injury compensation fund, Inc.
    55    2.  "Transportation  network company passenger" or "passenger" means a
    56  person or persons who use a  transportation  network  company's  digital

        S. 2008--A                         37                         A. 3008--A
 
     1  network  to  connect  with  a  transportation network company driver who
     2  provides TNC prearranged trips to  the  passenger  in  the  TNC  vehicle
     3  between points chosen by the passenger.
     4    3. "Board" means the workers' compensation board.
     5    4.  "Digital  network" means any system or service offered or utilized
     6  by a transportation network company that enables TNC  prearranged  trips
     7  with transportation network company drivers.
     8    5. "Transportation network company" means a person, corporation, part-
     9  nership,  sole proprietorship, or other entity that is licensed pursuant
    10  to article forty-four-B of the vehicle and traffic law and is  operating
    11  in  New York state exclusively using a digital network to connect trans-
    12  portation network company passengers to transportation  network  company
    13  drivers who provide TNC prearranged trips.
    14    6.  "Transportation  network company vehicle" or "TNC vehicle" means a
    15  vehicle that is:
    16    (a) used by a transportation network company driver to provide  a  TNC
    17  prearranged trip originating in the state of New York;
    18    (b)  owned,  leased or otherwise authorized for use by the transporta-
    19  tion network company driver and shall not include:
    20    (i) a taxicab, as defined in section one hundred forty-eight-a of  the
    21  vehicle and traffic law and section 19-502 of the administrative code of
    22  the city of New York, or as otherwise defined in local law;
    23    (ii)  a livery vehicle, as defined in section one hundred twenty-one-e
    24  of the vehicle and traffic law, or as otherwise defined in local law;
    25    (iii) a black car, limousine,  or  luxury  limousine,  as  defined  in
    26  section 19-502 of the administrative code of the city of New York, or as
    27  otherwise defined in local law;
    28    (iv)  a for-hire vehicle, as defined in section 19-502 of the adminis-
    29  trative code of the city of New York, or as otherwise defined  in  local
    30  law;
    31    (v)  a  bus, as defined in section one hundred four of the vehicle and
    32  traffic law;
    33    (vi) any motor vehicle weighing more than six  thousand  five  hundred
    34  pounds unloaded;
    35    (vii)  any  motor vehicle having a seating capacity of more than seven
    36  passengers; and
    37    (viii) any motor vehicle subject to section three hundred  seventy  of
    38  the vehicle and traffic law.
    39    7. (a) "TNC prearranged trip" means the provision of transportation by
    40  a  transportation network company driver to a passenger provided through
    41  the use of a TNC's digital network:
    42    (i) beginning when a transportation network company driver  accepts  a
    43  passenger's request for a trip through a digital network controlled by a
    44  transportation network company;
    45    (ii) continuing while the transportation network company driver trans-
    46  ports the requesting passenger in a TNC vehicle; and
    47    (iii)  ending  when the last requesting passenger departs from the TNC
    48  vehicle.
    49    (b) The term "TNC prearranged trip" does  not  include  transportation
    50  provided through any of the following:
    51    (i) shared expense carpool or vanpool arrangements, including those as
    52  defined  in section one hundred fifty-eight-b of the vehicle and traffic
    53  law;
    54    (ii) use of a taxicab, livery, luxury  limousine,  or  other  for-hire
    55  vehicle,  as  defined  in the vehicle and traffic law, section 19-502 of

        S. 2008--A                         38                         A. 3008--A
 
     1  the administrative code of the city of New York, or as otherwise defined
     2  in local law; or
     3    (iii) a regional transportation provider.
     4    8.  "Covered  services"  means,  with respect to TNC prearranged trips
     5  using a digital network of a transportation network company  located  in
     6  the  state, all such TNC prearranged trips regardless of where the pick-
     7  up or discharge occurs, and, with respect to TNC prearranged trips using
     8  a digital network of a transportation network  company  located  outside
     9  the  state,  all  prearranged  trips  involving  a pick-up in the state,
    10  regardless of where the discharge occurs.
    11    9. "Department" means the department of state.
    12    10. "Fund" means the New York transportation network company  driver's
    13  fund, Inc.
    14    11. "Fund liability date" means the earlier of:
    15    (a)  The date as of which the board first approves the fund's applica-
    16  tion to self-insure pursuant to section one hundred sixty-gggg  of  this
    17  article; or
    18    (b)  The  date on which coverage commences under the initial insurance
    19  policy purchased by the fund pursuant to section one hundred  sixty-gggg
    20  of this article.
    21    12. "Secretary" means the secretary of state.
    22    §  160-bbbb.  Transportation  network  company driver's injury compen-
    23  sation fund, Inc. There is hereby created a  not-for-profit  corporation
    24  to  be  known  as  the  New York transportation network company driver's
    25  injury compensation fund, Inc. To the extent that the provisions of  the
    26  not-for-profit  corporation  law  do not conflict with the provisions of
    27  this article, or with the plan of operation established pursuant to this
    28  article, the not-for-profit corporation law shall  apply  to  the  fund,
    29  which shall be a type C corporation pursuant to such law. If an applica-
    30  ble provision of this article or of the fund's plan of operation relates
    31  to  a  matter  embraced in a provision of the not-for-profit corporation
    32  law but is not in conflict therewith, both provisions shall  apply.  The
    33  fund  shall  perform its functions in accordance with its plan of opera-
    34  tion established and approved pursuant to section one hundred sixty-eeee
    35  of this article and shall exercise its powers through a board of  direc-
    36  tors established pursuant to this article.
    37    §  160-cccc. Supervision of transportation network companies. A trans-
    38  portation network company shall, with respect to the provisions of  this
    39  article,  be  subject to the supervision and oversight of the department
    40  as provided in this article.
    41    § 160-dddd. Management of the fund. 1. Within thirty (30) days of  the
    42  effective  date  of  this  article,  there shall be appointed a board of
    43  directors of the fund. The board of directors of the fund shall  consist
    44  of nine directors appointed by the governor, one of whom shall be chosen
    45  by  the  governor;  one  of  whom shall be chosen upon nomination of the
    46  temporary president of the senate; one of  whom  shall  be  chosen  upon
    47  nomination  of  the speaker of the assembly; one of whom shall be chosen
    48  upon nomination of the american federation of labor-congress  of  indus-
    49  trial  organizations  of New York; and five of whom shall be chosen upon
    50  nomination of transportation network company members of the fund.
    51    2. The directors shall elect annually from among their number a chair.
    52    3. For their attendance at meetings, the directors of the  fund  shall
    53  be  entitled  to  compensation,  as  authorized  by the directors, in an
    54  amount not to exceed five hundred dollars per meeting per  director  and
    55  to reimbursement of their actual and necessary expenses.

        S. 2008--A                         39                         A. 3008--A

     1    4.  Directors  of  the  fund, except as otherwise provided by law, may
     2  engage in private or public employment or in a profession or business.
     3    5. (a) All of the directors shall have equal voting rights and five or
     4  more  directors  shall constitute a quorum. The affirmative vote of four
     5  directors shall be necessary for the transaction of any business or  the
     6  exercise of any power or function of the fund.
     7    (b)  The  fund may delegate to one or more of its directors, officers,
     8  agents, or employees such powers and duties as it may deem proper.
     9    (c) A vacancy occurring in a director position shall be filled in  the
    10  same manner as the initial appointment to that position, provided howev-
    11  er  that no individual may serve as director for more than three succes-
    12  sive terms.
    13    § 160-eeee. Plan of operation. 1.  Within  seventy-five  days  of  the
    14  effective  date of this article, the fund shall file with the department
    15  its plan of operation, which shall  be  designed  to  assure  the  fair,
    16  reasonable and equitable administration of the fund.  The plan of opera-
    17  tion  and  any subsequent amendments thereto shall become effective upon
    18  being filed with the department.
    19    2. The plan of operation shall constitute the by-laws of the fund  and
    20  shall,  in  addition  to  the  requirements enumerated elsewhere in this
    21  article:
    22    (a) establish procedures for collecting and managing the assets of the
    23  fund;
    24    (b) establish regular places and times  for  meetings  of  the  fund's
    25  board of directors;
    26    (c)  establish the procedure by which the fund shall determine whether
    27  to provide the benefits due pursuant to this article by self-insuring or
    28  by purchasing insurance;
    29    (d) establish accounting and record-keeping procedures for all  finan-
    30  cial transactions of the fund, its agents, and the board of directors;
    31    (e) establish a procedure for determining and collecting the appropri-
    32  ate amount of surcharges and assessments under this article;
    33    (f)  set forth the procedures by which the fund may exercise the audit
    34  rights granted to it under this article;
    35    (g) establish procedures to ensure prompt and accurate notification to
    36  the fund by its members of all accidents and injuries to  transportation
    37  network  company drivers, and provide for full reimbursement of the fund
    38  by any transportation network company  whose  failure  to  provide  such
    39  notification  results  in the imposition of a penalty on the fund by the
    40  board; and
    41    (h) contain such additional provisions as the board of  the  fund  may
    42  deem  necessary  or proper for the execution of the powers and duties of
    43  the fund.
    44    § 160-ffff. Membership.  1.  The  membership  of  the  fund  shall  be
    45  composed  of  all  transportation network companies. Each transportation
    46  network company shall be required, as  a  condition  of  doing  business
    47  within  this  state,  to pay the department a ten thousand dollar annual
    48  fee for the purpose of registering as a member of the fund and receiving
    49  a certificate of registration.  Such sums shall be used by  the  depart-
    50  ment  for  the  administration of this article. The initial registration
    51  fee shall be due no later than ninety days after the effective  date  of
    52  this  article.  The  department  shall have the power to assess an addi-
    53  tional fee against each registrant in the amount necessary to provide it
    54  with sufficient funds to cover its expenses  in  performing  its  duties
    55  pursuant  to this article. The department shall provide the fund with an
    56  updated list of registrants on a monthly basis.

        S. 2008--A                         40                         A. 3008--A
 
     1    2. All transportation network companies shall be required, as a condi-
     2  tion of obtaining or retaining their  license  from  the  department  of
     3  motor vehicles pursuant to article forty-four-B of the vehicle and traf-
     4  fic law, to:
     5    (a) be members of the fund;
     6    (b) be registered with the department as members of the fund; and
     7    (c)  submit  to the department of motor vehicles a copy of its certif-
     8  icate of registration as proof of such membership and registration.
     9    3. Within sixty days of the effective date of this article, the  board
    10  of  the  fund  shall,  on the basis of information from trade papers and
    11  other sources, identify the transportation network companies subject  to
    12  this  article and, on a regular and ongoing basis, confirm that all such
    13  entities have registered in accordance  with  subdivision  one  of  this
    14  section.
    15    4.  The  fund shall, within seventy-five days of the effective date of
    16  this article, provide to its members a copy  of  the  proposed  plan  of
    17  operation  filed  with  the  department  and shall inform its members of
    18  their rights and duties pursuant to this article.
    19    § 160-gggg. Securing of compensation. 1. Within two hundred  ten  days
    20  of the effective date of this article, the fund shall secure the payment
    21  of workers' compensation to all:  transportation network company drivers
    22  entitled thereto pursuant to this chapter by either:
    23    (a)  self-insuring  in  accordance  with  subdivision three of section
    24  fifty of the workers' compensation law and the rules promulgated by  the
    25  board pursuant to such section; or
    26    (b)  purchasing workers' compensation insurance covering, on a blanket
    27  basis, all drivers who are the fund's employees pursuant to section  two
    28  of the workers' compensation law.
    29    2. If the fund initially seeks to apply to the board for authorization
    30  to  self-insure  pursuant  to  subdivision three of section fifty of the
    31  workers' compensation law, it shall submit its application and  accompa-
    32  nying  proof to the board within one hundred fifty days of the effective
    33  date of this article.  The board shall notify the fund and the secretary
    34  in writing of any change in the fund's status as a  self-insurer  or  of
    35  any  additional  requirements  that  the  board  may  deem necessary for
    36  continuation of such status.
    37    3. If the fund chooses to secure the payment of workers'  compensation
    38  pursuant  to  the  workers'  compensation law by purchasing an insurance
    39  policy from the state insurance fund or a  licensed  insurer,  it  shall
    40  file  with  the department no later than thirty days after the commence-
    41  ment of a new policy year a copy of the policy it has purchased. In such
    42  case, the department shall be treated by the insurer  as  a  certificate
    43  holder for purposes of receiving notice of cancellation of the policy.
    44    4.  No provision of this article shall be construed to alter or affect
    45  the liability under the workers' compensation law of any  transportation
    46  network  company  with respect to transportation network company drivers
    47  prior to the fund liability date.
    48    § 160-hhhh. Assessment of fund members. 1. To pay:
    49    (a) the costs of the  insurance  purchased  pursuant  to  section  one
    50  hundred sixty-gggg of this article; or
    51    (b)  the benefits due under the workers' compensation law in the event
    52  the fund self-insures pursuant to section one hundred sixty-gggg of this
    53  article; and to pay
    54    (c) its expenses in carrying out its  powers  and  duties  under  this
    55  article; and

        S. 2008--A                         41                         A. 3008--A
 
     1    (d)  its  liabilities,  if  any, pursuant to section fourteen-A of the
     2  workers' compensation law; the fund shall ascertain by reasonable  esti-
     3  mate the total funding necessary to carry on its operations.
     4    2. Based upon its estimation of operating costs, the fund shall estab-
     5  lish a proposed uniform percentage surcharge to be added to:
     6    (a)  the invoices or billings for covered services sent to transporta-
     7  tion network company passengers by a member or its agent; and
     8    (b) The credit payments for covered services received by a  member  or
     9  its  agent.  The  proposed  surcharge shall become effective thirty days
    10  after being filed with the department.
    11    Notwithstanding the foregoing, beginning on the first day of the first
    12  calendar month that shall commence at least seventy-five days after  the
    13  effective date of this article, and until the fund shall have filed with
    14  the  department  a  different  surcharge amount, a two percent surcharge
    15  shall be added to every invoice or billing for covered services sent  by
    16  a  member or its agent to, and every credit payment for covered services
    17  received by a member or its agent from, transportation  network  company
    18  passengers.  Each  member of the fund shall be liable for payment to the
    19  fund of an amount equal to the product of:
    20    (a) the percentages surcharge due pursuant to this article, divided by
    21  one hundred; and
    22    (b) all payments received by the  member  or  its  agent  for  covered
    23  services  prearranged  through the member's digital network, as provided
    24  in this subdivision, regardless of whether the surcharge was  billed  or
    25  charged.
    26    3. The department of motor vehicles or the department shall not issue,
    27  continue or renew any license or registration certificate for the opera-
    28  tion  of  any  transportation network company unless such transportation
    29  network company, as a condition of maintaining its license and/or regis-
    30  tration certificate, adds the surcharge  required  by  this  section  to
    31  every invoice and billing for covered services sent to, and every credit
    32  payment  for  covered services received from, its transportation network
    33  company passengers and pays to the fund no later than the fifteenth  day
    34  of each month the total surcharges due pursuant to this article.
    35    4.  Each  transportation network company shall submit to the fund with
    36  its monthly payment a detailed accounting of the  charge  and  surcharge
    37  amounts  charged  to  and  received  from transportation network company
    38  passengers for covered services during the previous month.    The  first
    39  such  payment  and  accounting  shall be due on the fifteenth day of the
    40  month following the imposition of the surcharge pursuant to  subdivision
    41  two of this section.
    42    5. Should the fund determine that the surcharge amounts that have been
    43  paid to it are inadequate to meet its obligations under this article, it
    44  shall determine the surcharge rate required to eliminate such deficiency
    45  and  shall  file  such  revised  surcharge  rate  with the department in
    46  accordance with subdivision two of this section.  Commencing thirty days
    47  after such filing, the members of the  fund  shall  charge  the  revised
    48  surcharge  rate and shall pay to the fund the total amount of surcharges
    49  in accordance with this article.
    50    6. For the purposes of conducting payroll audits, an insurer providing
    51  coverage to the fund pursuant to this article may treat the  members  of
    52  the  fund  as policyholders. Members of the fund shall be required to do
    53  all things required of employers pursuant to section one  hundred  thir-
    54  ty-one  of  the  workers'  compensation  law,  and  shall be required to
    55  provide the board access to any  and  all  records  and  information  as
    56  otherwise  required by the workers' compensation law and the regulations

        S. 2008--A                         42                         A. 3008--A
 
     1  promulgated thereunder, and shall be liable as provided in the  workers'
     2  compensation law for any failure so to do.
     3    § 160-iiii. Certified financial statements. No later than May first of
     4  each  year, the fund shall submit to the governor and legislature certi-
     5  fied financial statements prepared in accordance with generally accepted
     6  accounting principles by a certified public accountant. The  members  of
     7  the  fund  shall  be required on and after January first of each year to
     8  afford the certified public accountant convenient access at all  reason-
     9  able hours to all books, records, and other documents, including but not
    10  limited to invoices and vouchers, necessary or useful in the preparation
    11  of  such  statements  and  in the verification of the monthly statements
    12  submitted to the fund.
    13    § 160-jjjj. Exemption from  taxes.  The  fund  shall  be  exempt  from
    14  payment  of all fees and taxes levied by this state or any of its subdi-
    15  visions, except taxes levied on real property.
    16    § 160-kkkk. Liability insurance. The fund shall purchase  such  insur-
    17  ance  as  is  necessary  to  protect the fund and any director, officer,
    18  agent, or other representative from liability for  their  administration
    19  of  the  fund, and shall, to the extent permitted by law, indemnify such
    20  directors, officers, agents, or  other  representatives  and  hold  them
    21  harmless from liability for their administration of the fund.
    22    § 160-llll. Regulations. The department shall adopt regulations imple-
    23  menting the provisions of this article, including the conduct and notice
    24  of  hearings  held  pursuant  to  section one hundred sixty-mmmm of this
    25  article.
    26    § 160-mmmm. Violations. 1. If the secretary believes  a  violation  of
    27  this article by a fund member may have occurred, upon notice to the fund
    28  member,  a  hearing  shall be held by the secretary to determine whether
    29  such violation occurred.
    30    2. Except as otherwise provided in this section, a fund member that is
    31  found, after a hearing held pursuant to subdivision one of this section,
    32  to have violated a provision of this article, or a rule  promulgated  by
    33  the  department  pursuant to this article, shall be liable for a fine in
    34  an amount not to exceed ten thousand dollars per violation.
    35    3. Within twenty days after issuance of a determination adverse  to  a
    36  transportation  network  company  following  a  hearing held pursuant to
    37  subdivision one of this section, an appeal may be taken therefrom to the
    38  appellate division of  the  supreme  court,  third  department,  by  the
    39  aggrieved transportation network company.
    40    §  12.    Subdivision 1 of section 171-a of the tax law, as amended by
    41  chapter 90 of the laws of 2014, is amended to read as follows:
    42    1. All taxes, interest, penalties and fees collected  or  received  by
    43  the commissioner or the commissioner's duly authorized agent under arti-
    44  cles nine (except section one hundred eighty-two-a thereof and except as
    45  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    46  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    47  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    48  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    49  (except  as otherwise provided in section four hundred eighty-two there-
    50  of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen-
    51  ty-eight (except as otherwise provided in section eleven hundred two  or
    52  eleven  hundred three thereof), twenty-eight-A, twenty-nine-B (except as
    53  otherwise provided in  section  twelve  hundred  ninety-eight  thereof),
    54  thirty-one  (except  as  otherwise  provided in section fourteen hundred
    55  twenty-one thereof), thirty-three and  thirty-three-A  of  this  chapter
    56  shall  be  deposited  daily  in one account with such responsible banks,

        S. 2008--A                         43                         A. 3008--A
 
     1  banking houses or trust companies as may  be  designated  by  the  comp-
     2  troller, to the credit of the comptroller. Such an account may be estab-
     3  lished  in one or more of such depositories. Such deposits shall be kept
     4  separate  and  apart from all other money in the possession of the comp-
     5  troller. The comptroller shall require adequate security from  all  such
     6  depositories.  Of  the  total  revenue  collected or received under such
     7  articles of this chapter, the comptroller  shall  retain  in  the  comp-
     8  troller's  hands  such  amount  as  the commissioner may determine to be
     9  necessary for refunds or reimbursements  under  such  articles  of  this
    10  chapter  out  of  which  amount the comptroller shall pay any refunds or
    11  reimbursements to which taxpayers shall be entitled under the provisions
    12  of such articles of this chapter. The commissioner and  the  comptroller
    13  shall  maintain  a  system  of  accounts  showing  the amount of revenue
    14  collected or received from each of the taxes imposed by  such  articles.
    15  The  comptroller,  after  reserving  the  amount  to pay such refunds or
    16  reimbursements, shall, on or before the tenth day  of  each  month,  pay
    17  into  the  state  treasury to the credit of the general fund all revenue
    18  deposited under this section during the  preceding  calendar  month  and
    19  remaining  to the comptroller's credit on the last day of such preceding
    20  month, (i) except that the comptroller shall pay to the state department
    21  of social services that amount of overpayments of tax imposed by article
    22  twenty-two of this chapter and the interest  on  such  amount  which  is
    23  certified  to  the  comptroller  by the commissioner as the amount to be
    24  credited against past-due support pursuant to subdivision six of section
    25  one hundred seventy-one-c of this article,  (ii)  and  except  that  the
    26  comptroller  shall  pay  to the New York state higher education services
    27  corporation and the state university of New York or the city  university
    28  of  New  York respectively that amount of overpayments of tax imposed by
    29  article twenty-two of this chapter and the interest on such amount which
    30  is certified to the comptroller by the commissioner as the amount to  be
    31  credited  against  the  amount  of  defaults  in repayment of guaranteed
    32  student loans and state university loans or city university loans pursu-
    33  ant to subdivision five of section one hundred seventy-one-d and  subdi-
    34  vision  six  of section one hundred seventy-one-e of this article, (iii)
    35  and except further that, notwithstanding any law, the comptroller  shall
    36  credit   to   the   revenue   arrearage  account,  pursuant  to  section
    37  ninety-one-a of the state finance law, that amount of overpayment of tax
    38  imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
    39  or  thirty-three  of  this  chapter,  and any interest thereon, which is
    40  certified to the comptroller by the commissioner as  the  amount  to  be
    41  credited  against  a  past-due  legally enforceable debt owed to a state
    42  agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
    43  hundred seventy-one-f of this article, provided, however, he shall cred-
    44  it  to the special offset fiduciary account, pursuant to section ninety-
    45  one-c of the state finance law, any such amount creditable as a  liabil-
    46  ity  as  set  forth  in  paragraph (b) of subdivision six of section one
    47  hundred seventy-one-f of this article, (iv) and except further that  the
    48  comptroller shall pay to the city of New York that amount of overpayment
    49  of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
    50  thirty-B or thirty-three of this chapter and any interest  thereon  that
    51  is  certified to the comptroller by the commissioner as the amount to be
    52  credited against city of New York tax warrant judgment debt pursuant  to
    53  section  one  hundred  seventy-one-l  of  this  article,  (v) and except
    54  further that the comptroller shall pay to a  non-obligated  spouse  that
    55  amount of overpayment of tax imposed by article twenty-two of this chap-
    56  ter  and the interest on such amount which has been credited pursuant to

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     1  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
     2  hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
     3  ty-one-l of this article and which is certified to  the  comptroller  by
     4  the commissioner as the amount due such non-obligated spouse pursuant to
     5  paragraph six of subsection (b) of section six hundred fifty-one of this
     6  chapter;  and  (vi) the comptroller shall deduct a like amount which the
     7  comptroller shall pay into the treasury to the  credit  of  the  general
     8  fund  from  amounts  subsequently  payable  to  the department of social
     9  services, the state university of New York, the city university  of  New
    10  York,  or  the  higher  education  services  corporation, or the revenue
    11  arrearage account  or  special  offset  fiduciary  account  pursuant  to
    12  section  ninety-one-a  or  ninety-one-c of the state finance law, as the
    13  case may be, whichever had been credited the amount originally  withheld
    14  from  such  overpayment,  and  (vii)  with respect to amounts originally
    15  withheld from such overpayment pursuant to section one hundred  seventy-
    16  one-l  of this article and paid to the city of New York, the comptroller
    17  shall collect a like amount from the city of New York.
    18    § 13. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
    19  section  54  of  part A of chapter 59 of the laws of 2014, is amended to
    20  read as follows:
    21    1. All taxes, interest, penalties and fees collected  or  received  by
    22  the commissioner or the commissioner's duly authorized agent under arti-
    23  cles nine (except section one hundred eighty-two-a thereof and except as
    24  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    25  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    26  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    27  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    28  (except  as otherwise provided in section four hundred eighty-two there-
    29  of), twenty-one, twenty-two,  twenty-six,  [twenty-six-B,]  twenty-eight
    30  (except  as  otherwise  provided in section eleven hundred two or eleven
    31  hundred three thereof), twenty-eight-A, twenty-nine-B (except as  other-
    32  wise  provided  in section twelve hundred ninety-eight thereof), thirty-
    33  one (except as otherwise provided in section fourteen hundred twenty-one
    34  thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
    35  deposited  daily  in  one  account  with such responsible banks, banking
    36  houses or trust companies as may be designated by  the  comptroller,  to
    37  the credit of the comptroller. Such an account may be established in one
    38  or  more  of such depositories. Such deposits shall be kept separate and
    39  apart from all other money in the possession  of  the  comptroller.  The
    40  comptroller  shall require adequate security from all such depositories.
    41  Of the total revenue collected or received under such articles  of  this
    42  chapter,  the  comptroller  shall retain in the comptroller's hands such
    43  amount as the commissioner may determine to be necessary for refunds  or
    44  reimbursements  under  such articles of this chapter out of which amount
    45  the comptroller shall pay any refunds or reimbursements to which taxpay-
    46  ers shall be entitled under the provisions  of  such  articles  of  this
    47  chapter. The commissioner and the comptroller shall maintain a system of
    48  accounts  showing  the amount of revenue collected or received from each
    49  of the taxes imposed by such articles. The comptroller, after  reserving
    50  the  amount  to  pay such refunds or reimbursements, shall, on or before
    51  the tenth day of each month, pay into the state treasury to  the  credit
    52  of  the general fund all revenue deposited under this section during the
    53  preceding calendar month and remaining to the  comptroller's  credit  on
    54  the  last  day  of such preceding month, (i) except that the comptroller
    55  shall pay to the state department of  social  services  that  amount  of
    56  overpayments  of  tax  imposed by article twenty-two of this chapter and

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     1  the interest on such amount which is certified to the comptroller by the
     2  commissioner as the amount  to  be  credited  against  past-due  support
     3  pursuant to subdivision six of section one hundred seventy-one-c of this
     4  article,  (ii) and except that the comptroller shall pay to the New York
     5  state higher education services corporation and the state university  of
     6  New  York or the city university of New York respectively that amount of
     7  overpayments of tax imposed by article twenty-two of  this  chapter  and
     8  the interest on such amount which is certified to the comptroller by the
     9  commissioner as the amount to be credited against the amount of defaults
    10  in  repayment  of guaranteed student loans and state university loans or
    11  city university loans  pursuant  to  subdivision  five  of  section  one
    12  hundred  seventy-one-d and subdivision six of section one hundred seven-
    13  ty-one-e of this article, (iii) and except further that, notwithstanding
    14  any law, the comptroller shall credit to the revenue arrearage  account,
    15  pursuant  to  section ninety-one-a of the state finance law, that amount
    16  of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
    17  ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
    18  thereon, which is certified to the comptroller by  the  commissioner  as
    19  the  amount  to  be credited against a past-due legally enforceable debt
    20  owed to a state agency pursuant to paragraph (a) of subdivision  six  of
    21  section one hundred seventy-one-f of this article, provided, however, he
    22  shall  credit  to  the  special  offset  fiduciary  account, pursuant to
    23  section ninety-one-c of the state finance law, any such amount  credita-
    24  ble  as  a liability as set forth in paragraph (b) of subdivision six of
    25  section one hundred seventy-one-f  of  this  article,  (iv)  and  except
    26  further  that  the  comptroller  shall  pay to the city of New York that
    27  amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
    28  two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
    29  interest thereon that is certified to the comptroller by the commission-
    30  er as the amount to be credited against city of  New  York  tax  warrant
    31  judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
    32  article, (v) and except further that the  comptroller  shall  pay  to  a
    33  non-obligated  spouse that amount of overpayment of tax imposed by arti-
    34  cle twenty-two of this chapter and the interest on such amount which has
    35  been credited pursuant to section one hundred seventy-one-c, one hundred
    36  seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
    37  one  hundred seventy-one-l of this article and which is certified to the
    38  comptroller by the commissioner as the  amount  due  such  non-obligated
    39  spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
    40  hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
    41  a like amount which the comptroller shall pay into the treasury  to  the
    42  credit  of  the  general  fund  from amounts subsequently payable to the
    43  department of social services, the state university  of  New  York,  the
    44  city  university  of  New  York, or the higher education services corpo-
    45  ration, or the revenue arrearage account  or  special  offset  fiduciary
    46  account  pursuant  to  section ninety-one-a or ninety-one-c of the state
    47  finance law, as the case may be, whichever had been credited the  amount
    48  originally  withheld  from  such  overpayment, and (vii) with respect to
    49  amounts originally withheld from such overpayment  pursuant  to  section
    50  one  hundred  seventy-one-l  of this article and paid to the city of New
    51  York, the comptroller shall collect a like amount from the city  of  New
    52  York.
    53    §  14. Paragraph 34 of subdivision (b) of section 1101 of the tax law,
    54  as amended by section 1 of part WW of chapter 57 of the laws of 2010, is
    55  amended to read as follows:

        S. 2008--A                         46                         A. 3008--A
 
     1    (34) Transportation service. The service of transporting, carrying  or
     2  conveying  a  person  or  persons by livery service; whether to a single
     3  destination or to multiple destinations; and  whether  the  compensation
     4  paid  by  or  on behalf of the passenger is based on mileage, trip, time
     5  consumed  or  any  other  basis.  A service that begins and ends in this
     6  state is deemed intra-state even if it passes outside this state  during
     7  a  portion of the trip. However, transportation service does not include
     8  transportation of persons in connection  with  funerals.  Transportation
     9  service  includes  transporting,  carrying, or conveying property of the
    10  person being transported, whether owned  by  or  in  the  care  of  such
    11  person.  Notwithstanding the foregoing, transportation service shall not
    12  include  a  TNC  prearranged  trip,  as  that term is defined in article
    13  forty-four-B of the vehicle and traffic law,  that  is  subject  to  tax
    14  under  article  twenty-nine-B  of  this  chapter. In addition to what is
    15  included in the definition of  "receipt"  in  paragraph  three  of  this
    16  subdivision, receipts from the sale of transportation service subject to
    17  tax  include  any handling, carrying, baggage, booking service, adminis-
    18  trative, mark-up, additional, or other charge, of any  nature,  made  in
    19  conjunction  with  the  transportation  service.  Livery  service  means
    20  service provided by limousine, black car or other motor vehicle, with  a
    21  driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
    22  one  million  or  more  in this state, an affiliated livery vehicle, and
    23  excluding any scheduled public service. Limousine means a vehicle with a
    24  seating capacity of up to fourteen persons, excluding the driver.  Black
    25  car means a for-hire vehicle dispatched from a central facility. "Affil-
    26  iated  livery  vehicle"  means  a  for-hire motor vehicle with a seating
    27  capacity of up to six persons, including the driver, other than a  black
    28  car or luxury limousine, that is authorized and licensed by the taxi and
    29  limousine  commission  of a city of one million or more to be dispatched
    30  by a base station located in such a city and regulated by such taxi  and
    31  limousine  commission; and the charges for service provided by an affil-
    32  iated livery vehicle are on the basis of flat rate,  time,  mileage,  or
    33  zones and not on a garage to garage basis.
    34    §  15.  The tax law is amended by adding a new article 29-B to read as
    35  follows:
    36                                ARTICLE 29-B
    37           STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY
    38                              PREARRANGED TRIPS
    39  Section 1291. Definitions.
    40          1292. Imposition.
    41          1293. Presumption.
    42          1294. Returns and payment of state assessment fee.
    43          1295. Records to be kept.
    44          1296. Secrecy of returns and reports.
    45          1297. Practice and procedure.
    46          1298. Deposit and disposition of revenue.
    47    § 1291. Definitions. (a) "Person" means  an  individual,  partnership,
    48  limited  liability  company,  society, association, joint stock company,
    49  corporation, estate, receiver, trustee, assignee, referee or  any  other
    50  person  acting  in  a  fiduciary  or  representative  capacity,  whether
    51  appointed by a court or otherwise, any combination  of  individuals  and
    52  any other form of unincorporated enterprise owned or conducted by two or
    53  more persons.
    54    (b)  "City" means a city of a million or more located in the metropol-
    55  itan commuter transportation  district  established  by  section  twelve
    56  hundred sixty-two of the public authorities law.

        S. 2008--A                         47                         A. 3008--A
 
     1    (c)  "Transportation  network  company"  or  "TNC" shall have the same
     2  meaning as the term is defined in article forty-four-B  of  the  vehicle
     3  and traffic law.
     4    (d)  "TNC prearranged trip" shall have the same meaning as the term is
     5  defined in article forty-four-B of the vehicle and traffic law.
     6    (e) "TNC driver" shall have the same meaning as the term is defined in
     7  article forty-four-B of the vehicle and traffic law.
     8    (f) "TNC vehicle" shall have the same meaning as the term  is  defined
     9  in article forty-four-B of the vehicle and traffic law.
    10    (g)  "Gross trip fare" means the sum of the base fare charge, distance
    11  charge and time charge for a complete TNC prearranged trip at  the  rate
    12  published by the TNC by or through which such trip is arranged.
    13    §  1292.  Imposition.  There  is  hereby  imposed on every TNC a state
    14  assessment fee of 5.5% of the gross trip fare of every  TNC  prearranged
    15  trip  provided by such TNC that originates anywhere in the state outside
    16  the city and terminates anywhere in this state.
    17    § 1293. Presumption. For the purpose of the proper  administration  of
    18  this  article and to prevent evasion of the state assessment fee imposed
    19  by this article, it shall be presumed that every  TNC  prearranged  trip
    20  that originates anywhere in the state outside the city is subject to the
    21  state  assessment fee. This presumption shall prevail until the contrary
    22  is proven by the person liable for the fee.
    23    § 1294. Returns and payment of state assessment fee. (a) Every  person
    24  liable for the state assessment fee imposed by this article shall file a
    25  return  on a calendar-quarterly basis with the commissioner. Each return
    26  shall show the number of TNC prearranged trips in the quarter for  which
    27  the return is filed, together with such other information as the commis-
    28  sioner may require.  The returns required by this section shall be filed
    29  within  thirty days after the end of the quarterly period covered there-
    30  by. If the commissioner deems  it  necessary  in  order  to  ensure  the
    31  payment of the state assessment fee imposed by this article, the commis-
    32  sioner  may  require  returns  to  be  made  for  shorter  periods  than
    33  prescribed by the foregoing provisions of this section,  and  upon  such
    34  dates  as  the  commissioner  may  specify. The form of returns shall be
    35  prescribed by the commissioner and shall contain such information as the
    36  commissioner may deem necessary for the proper  administration  of  this
    37  article. The commissioner may require amended returns to be filed within
    38  thirty days after notice and to contain the information specified in the
    39  notice. The commissioner may require that the returns be filed electron-
    40  ically.
    41    (b)  Every  person required to file a return under this article shall,
    42  at the time of filing such return, pay to the commissioner the total  of
    43  all state assessment fees on the correct number of trips subject to such
    44  fee  under  this  article. The amount so payable to the commissioner for
    45  the period for which a return is required to be filed shall be  due  and
    46  payable  to the commissioner on the date specified for the filing of the
    47  return for such period, without regard to whether a return is  filed  or
    48  whether  the  return that is filed correctly shows the correct number of
    49  trips or the amount of fees due thereon. The  commissioner  may  require
    50  that the fee be paid electronically.
    51    §  1295. Records to be kept. Every person liable for the state assess-
    52  ment fee imposed by this article shall keep:
    53    (a) records of every TNC prearranged trip subject to the state assess-
    54  ment fee under this article, and of all amounts  paid,  charged  or  due
    55  thereon, in such form as the commissioner may require;

        S. 2008--A                         48                         A. 3008--A
 
     1    (b)  true  and complete copies of any records required to be kept by a
     2  state agency that is authorized to permit or regulate a TNC; and
     3    (c) such other records and information as the commissioner may require
     4  to perform his or her duties under this article.
     5    §  1296. Secrecy of returns and reports. (a) Except in accordance with
     6  proper judicial order or as otherwise  provided  by  law,  it  shall  be
     7  unlawful  for  the  commissioner, any officer or employee of the depart-
     8  ment, any person engaged or retained by the department on an independent
     9  contract basis, or any person who in any manner may acquire knowledge of
    10  the contents of a return or report filed with the commissioner  pursuant
    11  to  this article, to divulge or make known in any manner any particulars
    12  set forth or disclosed in any such  return  or  report.    The  officers
    13  charged  with  the  custody  of  such  returns  and reports shall not be
    14  required to produce any of them or evidence  of  anything  contained  in
    15  them  in  any action or proceeding in any court, except on behalf of the
    16  commissioner in an action or proceeding under  the  provisions  of  this
    17  chapter or in any other action or proceeding involving the collection of
    18  a  state assessment fee due under this article to which the state or the
    19  commissioner is a party or a claimant, or on behalf of any party to  any
    20  action,  proceeding or hearing under the provisions of this article when
    21  the returns, reports or facts shown thereby  are  directly  involved  in
    22  such action, proceeding or hearing, in any of which events the court, or
    23  in  the  case  of a hearing, the division of tax appeals may require the
    24  production of, and may admit into evidence, so  much  of  said  returns,
    25  reports  or  of the facts shown thereby, as are pertinent to the action,
    26  proceeding or hearing and no more. The commissioner or the  division  of
    27  tax  appeals may, nevertheless, publish a copy or a summary of any deci-
    28  sion rendered after a hearing required by this article.  Nothing in this
    29  section shall be construed to prohibit the delivery to a person who  has
    30  filed  a  return or report or to such person's duly authorized represen-
    31  tative of a certified copy of any return or report filed  in  connection
    32  with  such  person's  state  assessment  fee. Nor shall anything in this
    33  section be construed to prohibit the publication of statistics so  clas-
    34  sified as to prevent the identification of particular returns or reports
    35  and  the  items  thereof,  or  the inspection by the attorney general or
    36  other legal representatives of the state of the return or report of  any
    37  person  required  to pay the state assessment fee who shall bring action
    38  to review the state assessment fee based thereon,  or  against  whom  an
    39  action  or  proceeding  under  this  chapter has been recommended by the
    40  commissioner or the attorney general or  has  been  instituted,  or  the
    41  inspection  of the returns or reports required under this article by the
    42  comptroller or duly designated officer or employee of the state  depart-
    43  ment  of audit and control, for purposes of the audit of a refund of any
    44  state assessment fee paid by a person required to pay the state  assess-
    45  ment  fee under this article. Provided, further, nothing in this section
    46  shall be construed to prohibit the disclosure, in  such  manner  as  the
    47  commissioner deems appropriate, of the names and other appropriate iden-
    48  tifying  information  of  those persons required to pay state assessment
    49  fee under this article.
    50    (b) Notwithstanding the provisions of subdivision (a) of this section,
    51  the commissioner, in his or her discretion, may require or permit any or
    52  all persons liable for any state assessment fee imposed by this article,
    53  to make payment to banks, banking houses or trust  companies  designated
    54  by  the commissioner and to file returns with such banks, banking houses
    55  or trust companies as agents of the commissioner, in lieu of paying  any
    56  such  state  assessment  fee  directly to the commissioner. However, the

        S. 2008--A                         49                         A. 3008--A
 
     1  commissioner shall designate only such banks, banking  houses  or  trust
     2  companies  as  are already designated by the comptroller as depositories
     3  pursuant to section twelve hundred eighty-eight of this chapter.
     4    (c) Notwithstanding the provisions of subdivision (a) of this section,
     5  the  commissioner may permit the secretary of the treasury of the United
     6  States or such secretary's delegate, or the authorized representative of
     7  either such officer, to inspect any return filed under this article,  or
     8  may  furnish to such officer or such officer's authorized representative
     9  an abstract of any such return or supply such  person  with  information
    10  concerning  an  item  contained  in any such return, or disclosed by any
    11  investigation of liability under this article, but such permission shall
    12  be granted or such information furnished only if the laws of the  United
    13  States  grant  substantially  similar  privileges to the commissioner or
    14  officer of this state charged  with  the  administration  of  the  state
    15  assessment  fee imposed by this article, and only if such information is
    16  to be used for purposes of tax administration only; and provided further
    17  the commissioner may furnish to the commissioner of internal revenue  or
    18  such  commissioner's  authorized representative such returns filed under
    19  this article and other tax information, as such commissioner may consid-
    20  er proper, for use in court actions or proceedings  under  the  internal
    21  revenue  code, whether civil or criminal, where a written request there-
    22  for has been made to the commissioner by the secretary of  the  treasury
    23  of  the United States or such secretary's delegate, provided the laws of
    24  the United States grant substantially similar powers to the secretary of
    25  the treasury of the United States or his  or  her  delegate.  Where  the
    26  commissioner  has  so authorized use of returns and other information in
    27  such actions or proceedings, officers and employees  of  the  department
    28  may testify in such actions or proceedings in respect to such returns or
    29  other information.
    30    (d)  Returns  and  reports filed under this article shall be preserved
    31  for three years and thereafter until the commissioner orders them to  be
    32  destroyed.
    33    (e)  (1)  Any  officer or employee of the state who willfully violates
    34  the provisions of subdivision (a) of this  section  shall  be  dismissed
    35  from  office  and be incapable of holding any public office for a period
    36  of five years thereafter.
    37    (2) Cross-reference: For criminal penalties, see article  thirty-seven
    38  of this chapter.
    39    § 1297. Practice and procedure. The provisions of article twenty-seven
    40  of  this  chapter  shall apply with respect to the administration of and
    41  procedure with respect to the state assessment fee imposed by this arti-
    42  cle in the same manner and with the same force  and  effect  as  if  the
    43  language of such article twenty-seven had been incorporated in full into
    44  this  article  and  had  expressly  referred to the state assessment fee
    45  under this article, except to the extent  that  any  such  provision  is
    46  either  inconsistent with a provision of this article or is not relevant
    47  to this article.
    48    § 1298.  Deposit and disposition of revenue. All taxes, fees, interest
    49  and penalties collected or received by the commissioner under this arti-
    50  cle shall be deposited and disposed of pursuant  to  the  provisions  of
    51  section  one  hundred  seventy-one-a  of  this chapter. From such taxes,
    52  interest and penalties collected or received by the  commissioner  under
    53  this article, 27.27% shall be deposited to the credit of the local tran-
    54  sit  assistance  fund  established in section eighty-nine-i of the state
    55  finance law for the support of  local  transit  systems,  operations  or

        S. 2008--A                         50                         A. 3008--A
 
     1  projects  other  than  the  metropolitan transportation authority or any
     2  subsidiary or affiliate of the metropolitan transportation authority.
     3    §  16.  The tax law is amended by adding a new section 1822 to read as
     4  follows:
     5    § 1822. Violation  of  the  state  assessment  fee  on  transportation
     6  network  company  prearranged  trips. Any willful act or omission by any
     7  person that constitutes a violation of any provision of article  twenty-
     8  nine-B of this chapter shall constitute a misdemeanor.
     9    §  17. Section 1825 of the tax law, as amended by section 89 of part A
    10  of chapter 59 of the laws of 2014, is amended to read as follows:
    11    § 1825. Violation of secrecy provisions of the  tax  law.--Any  person
    12  who  violates  the  provisions of subdivision (b) of section twenty-one,
    13  subdivision one of section two hundred two, subdivision eight of section
    14  two hundred eleven, subdivision (a) of section three  hundred  fourteen,
    15  subdivision  one  or  two  of section four hundred thirty-seven, section
    16  four hundred eighty-seven,  subdivision  one  or  two  of  section  five
    17  hundred  fourteen,  subsection  (e) of section six hundred ninety-seven,
    18  subsection (a) of section nine hundred ninety-four, subdivision  (a)  of
    19  section  eleven  hundred forty-six, section twelve hundred eighty-seven,
    20  section twelve hundred ninety-six, subdivision (a) of  section  fourteen
    21  hundred  eighteen,  subdivision (a) of section fifteen hundred eighteen,
    22  subdivision (a) of section fifteen hundred fifty-five of  this  chapter,
    23  and subdivision (e) of section 11-1797 of the administrative code of the
    24  city of New York shall be guilty of a misdemeanor.
    25    §  18. 1. For purposes of this section, transportation network company
    26  shall mean a  transportation  network  company  as  defined  by  article
    27  forty-four-B of the vehicle and traffic law.
    28    2.  There  is  hereby  established  the  New York State Transportation
    29  Network Company Accessibility Task Force to analyze and advise on how to
    30  maximize effective and integrated transportation  services  for  persons
    31  with  disabilities in the transportation network company market. The New
    32  York State Transportation Network Company Accessibility Task Force shall
    33  consist of eleven members. Two members of the New York State Transporta-
    34  tion Network Company Accessibility Task Force shall be appointed by  the
    35  speaker  of  the assembly. Two members of the New York State Transporta-
    36  tion Network Company Accessibility Task Force shall be appointed by  the
    37  temporary  president  of the senate. Seven members of the New York State
    38  Transportation  Network  Company  Accessibility  Task  Force  shall   be
    39  appointed  by the governor and shall include, but not be limited to, two
    40  representatives of groups who serve persons with  disabilities  and  two
    41  representatives  from  a  transportation  network  company. The governor
    42  shall designate two chairpersons to the New  York  State  Transportation
    43  Network Company Accessibility Task Force.
    44    3.  The  New  York  State Transportation Network Company Accessibility
    45  Task Force shall study the demand responsive transportation  marketplace
    46  and shall, in addition to any responsibilities assigned by the governor:
    47  (a)  conduct a needs assessment concerning the demand for demand respon-
    48  sive  accessible  transportation;  (b)  conduct  a  resource  assessment
    49  concerning  the availability of accessible demand responsive transporta-
    50  tion services for persons with disabilities; (c) identify  opportunities
    51  for,  and barriers to, increasing accessible demand responsive transpor-
    52  tation service for persons with mobility disabilities; (d) propose stra-
    53  tegies  for  increasing  accessible  demand  responsive   transportation
    54  service  for  persons with disabilities; and (e) any other issues deter-
    55  mined important to the  task  force  in  establishing  a  recommendation
    56  pursuant to subdivision five of this section.

        S. 2008--A                         51                         A. 3008--A
 
     1    4.  The  New  York  State Transportation Network Company Accessibility
     2  Task Force shall hold public hearings and  provide  an  opportunity  for
     3  public  comment  on  the activities described in subdivision two of this
     4  section.
     5    5.  The  New  York  State Transportation Network Company Accessibility
     6  Task Force shall complete a report addressing the  activities  described
     7  in  subdivision two of this section and make a recommendation, supported
     8  by such activities, recommending the amount of  accessibility  necessary
     9  for  adequate transportation for disabled passengers in order to utilize
    10  such services and present such findings at a public  meeting  where  its
    11  members  shall accept such report, pursuant to majority vote of the task
    12  force, and present such report to  the  governor,  the  speaker  of  the
    13  assembly and the temporary president of the senate, and make such report
    14  publicly available for review.
    15    6.  Upon  making  the  report  described  in  subdivision five of this
    16  section, the New York State Transportation Network Company Accessibility
    17  Task Force shall be deemed dissolved.
    18    § 19. The state finance law is amended by adding a new section 89-i to
    19  read as follows:
    20    § 89-i. Local transit assistance fund. 1. There is hereby  established
    21  in  the  joint  custody of the state comptroller and the commissioner of
    22  taxation and finance a fund to be known as the "local transit assistance
    23  fund". Moneys in the local transit assistance fund shall be  kept  sepa-
    24  rately  from  and  shall  not be commingled with any other moneys in the
    25  joint or sole custody of the state comptroller or  the  commissioner  of
    26  taxation and finance.
    27    2. The comptroller shall establish the following separate and distinct
    28  account  within  the  local  transit  assistance  fund:  Non-MTA transit
    29  assistance account.
    30    3. The local transit assistance  fund  shall  consist  of  all  monies
    31  collected  therefore  or  credited or transferred thereto from any other
    32  fund, account, or source, including a portion of  the  revenues  derived
    33  from  article  twenty-nine-B  of  the tax law pursuant to section twelve
    34  hundred ninety-eight of the tax law. Any interest received by the  comp-
    35  troller  on monies on deposit in the local transit assistance fund shall
    36  be retained in and become a part of such fund.
    37    4. Monies in the local transit assistance fund shall, following appro-
    38  priation by the legislature, be utilized for the support of local trans-
    39  it systems, operations or projects, and shall not be appropriated to the
    40  metropolitan transportation authority, its  affiliates  or  its  subsid-
    41  iaries.  In  the first year that monies are appropriated from this fund,
    42  and in any subsequent years as may be required by the  director  of  the
    43  budget,  such  monies  shall  be disbursed according to a plan developed
    44  during the prior fiscal year by  the commissioner of transportation  and
    45  approved  by  the  director  of the budget. The first such plan shall be
    46  submitted by the commissioner by March thirty-first, two thousand  eigh-
    47  teen.
    48    5.  All payments of money from the local transit assistance fund shall
    49  be made on the audit and warrant of the comptroller.
    50    § 20. Severability clause. If any provision of this act or the  appli-
    51  cation  thereof  is held invalid, such invalidity shall not affect other
    52  provisions or applications of this act which can be given effect without
    53  the invalid provision or application, and to this end the provisions  of
    54  this act are declared to be severable.
    55    §  21.  Each agency that is designated to perform any function or duty
    56  pursuant to this act shall be authorized to establish  rules  and  regu-

        S. 2008--A                         52                         A. 3008--A
 
     1  lations  for  the  administration  and  execution of such authority in a
     2  manner consistent with the provisions of this act and for the protection
     3  of the public, health, safety and welfare of persons within this state.
     4    §  22.  This act shall take effect on the ninetieth day after it shall
     5  have become a law; provided that the  amendments  to  subdivision  1  of
     6  section  171-a  of  the tax law made by section twelve of this act shall
     7  not affect the expiration of such subdivision and  shall  expire  there-
     8  with, when upon such date the provisions of section thirteen of this act
     9  shall take effect.
 
    10                                   PART H
 
    11    Section  1.  Section  491 of the vehicle and traffic law is amended by
    12  adding a new subdivision 3 to read as follows:
    13    3. Waiver of fee. The commissioner  may  waive  the  payment  of  fees
    14  required by subdivision two of this section if the applicant is a victim
    15  of  a crime and the identification card applied for is a replacement for
    16  one that was lost or destroyed as a result of the crime.
    17    § 2. This act shall take effect on the one hundred twentieth day after
    18  it shall have become a law.
 
    19                                   PART I
 
    20    Section 1. Paragraph (i) of subdivision 2 of section 503 of the  vehi-
    21  cle  and  traffic  law, as amended by chapter 55 of the laws of 1992, is
    22  amended to read as follows:
    23    (i) A non-resident whose driving privileges have been revoked pursuant
    24  to sections five hundred ten, eleven  hundred  ninety-three  and  eleven
    25  hundred  ninety-four  of  this chapter shall, upon application for rein-
    26  statement of such driving privileges, pay to the commissioner  of  motor
    27  vehicles  a fee of [twenty-five] one hundred dollars. When the basis for
    28  the revocation is a finding of driving  after  having  consumed  alcohol
    29  pursuant  to  the  provisions  of section eleven hundred ninety-two-a of
    30  this chapter, the fee to be  paid  to  the  commissioner  shall  be  one
    31  hundred dollars. Such fee is not refundable and shall not be returned to
    32  the applicant regardless of the action the commissioner may take on such
    33  person's application for reinstatement of such driving privileges.
    34    § 2. This act shall take effect on the one hundred twentieth day after
    35  it shall have become a law.
 
    36                                   PART J
 
    37    Section  1.  Paragraphs  1 and 3 of subdivision (a) of section 2125 of
    38  the vehicle and traffic law, as amended by section  1-b  of  part  A  of
    39  chapter 63 of the laws of 2005, are amended to read as follows:
    40    (1)  for  filing  an  application  for a certificate of title, [fifty]
    41  seventy-five dollars except where the application relates  to  a  mobile
    42  home  or  a  manufactured home as defined in section one hundred twenty-
    43  two-c of this chapter, in which case the fee shall be one hundred  twen-
    44  ty-five dollars;
    45    (3) for a duplicate certificate of title, [twenty] forty dollars.
    46    § 2.  Section 2125 of the vehicle and traffic law is amended by adding
    47  a new subdivision (h) to read as follows:
    48    (h)  Notwithstanding any other provision of law, the increase of twen-
    49  ty-five dollars for the fee assessed for filing  an  application  for  a
    50  certificate  of  title  and  the  increase of twenty dollars for the fee

        S. 2008--A                         53                         A. 3008--A
 
     1  assessed for filing an application for duplicate title, collected pursu-
     2  ant to paragraphs one and three of  subdivision  (a)  of  this  section,
     3  shall  be  deposited  to  the credit of the dedicated highway and bridge
     4  trust  fund,  established pursuant to section eighty-nine-b of the state
     5  finance law.
     6    § 3.  This act shall take effect immediately; provided that the amend-
     7  ments to paragraph 1 of subdivision (a) of section 2125 of  the  vehicle
     8  and  traffic  law  made  by section one of this act shall not affect the
     9  expiration and reversion of such paragraph and shall be deemed to expire
    10  therewith.
 
    11                                   PART K
 
    12    Section 1. Subdivision 2 of section 491 of the vehicle and traffic law
    13  is amended by adding a new paragraph (f) to read as follows:
    14    (f) In addition to any other fee prescribed in this section, an  addi-
    15  tional fee of five dollars shall be charged for any non-driver identifi-
    16  cation card or renewal or amendment of such card that is issued pursuant
    17  to  and  bears  a  marking reflecting compliance with the Real ID Act of
    18  2005, Public Law 109-13, and regulations promulgated thereunder at 6 CFR
    19  37 et seq. The fee collected pursuant to this paragraph shall be paid to
    20  the commissioner and shall  be  deposited  into  the  dedicated  highway
    21  bridge  and  trust  fund  pursuant to section eighty-nine-b of the state
    22  finance law.
    23    § 2. Subdivision 2 of section 503 of the vehicle and  traffic  law  is
    24  amended by adding a new paragraph (f-2) to read as follows:
    25    (f-2)  In  addition  to  any  other fee prescribed in this section, an
    26  additional fee of five dollars shall be charged for any license, renewal
    27  or amendment of such license that is issued  pursuant  to  and  bears  a
    28  marking  reflecting  compliance with the Real ID Act of 2005, Public Law
    29  109-13, and regulations promulgated thereunder at 6 CFR 37 et seq.   The
    30  fee  collected  pursuant  to this paragraph shall be paid to the commis-
    31  sioner and shall be deposited into  the  dedicated  highway  bridge  and
    32  trust fund pursuant to section eighty-nine-b of the state finance law.
    33    § 3. This act shall take effect immediately.
 
    34                                   PART L
 
    35    Section  1.  Section 114-a of the vehicle and traffic law, as added by
    36  chapter 163 of the laws of 1973, is amended to read as follows:
    37    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    38  includes any substance listed in section thirty-three hundred six of the
    39  public  health  law  and any substance or combination of substances that
    40  impair, to any extent, the physical and mental abilities which a  driver
    41  is expected to possess in order to operate a vehicle as a reasonable and
    42  prudent driver.
    43    § 2. Subparagraph (i) of paragraph (a) of subdivision 4 of section 502
    44  of  the vehicle and traffic law, as amended by chapter 97 of the laws of
    45  2016, is amended to read as follows:
    46    (i) Upon submission of an application  for  a  driver's  license,  the
    47  applicant  shall be required to take and pass a test, or submit evidence
    48  of passage of a test, with respect to the laws relating to traffic,  the
    49  laws  relating to driving while ability is impaired and while intoxicat-
    50  ed, under the overpowering influence of "Road Rage", or "Work Zone Safe-
    51  ty" awareness as defined by the commissioner, the law relating to  exer-
    52  cising  due  care  to avoid colliding with a parked, stopped or standing

        S. 2008--A                         54                         A. 3008--A
 
     1  authorized emergency vehicle or hazard vehicle pursuant to section elev-
     2  en hundred forty-four-a of this chapter, the ability to read and compre-
     3  hend traffic signs and symbols, bicycle and pedestrian safety  and  such
     4  other  matters  as the commissioner may prescribe, and to satisfactorily
     5  complete a course prescribed by the commissioner of not less  than  four
     6  hours  and  not  more  than  five  hours, consisting of classroom driver
     7  training and highway safety instruction or the equivalent thereof.  Such
     8  test  shall  include  at  least  seven  written questions concerning the
     9  effects of consumption of alcohol or drugs on the ability of a person to
    10  operate a motor vehicle and the legal and financial consequences result-
    11  ing from violations of section eleven hundred ninety-two of  this  chap-
    12  ter, prohibiting the operation of a motor vehicle while under the influ-
    13  ence  of  alcohol  or drugs. Such test shall include one or more written
    14  questions concerning the devastating effects of "Road Rage" on the abil-
    15  ity of a person to operate a motor vehicle and the legal  and  financial
    16  consequences  resulting from assaulting, threatening or interfering with
    17  the lawful conduct of another person legally  using  the  roadway.  Such
    18  test  shall  include  one  or  more  questions  concerning the potential
    19  dangers to persons and equipment resulting from the unsafe operation  of
    20  a  motor vehicle in a work zone. Such test may include one or more ques-
    21  tions concerning the law for exercising due care to avoid colliding with
    22  a parked, stopped or standing vehicle pursuant to section eleven hundred
    23  forty-four-a of this chapter. Such test may include one  or  more  ques-
    24  tions  concerning  bicycle  and  pedestrian  safety.  Such test shall be
    25  administered by the  commissioner.  The  commissioner  shall  cause  the
    26  applicant  to  take  a  vision test and a test for color blindness. Upon
    27  passage of the vision test, the application  may  be  accepted  and  the
    28  application fee shall be payable.
    29    § 3. Subparagraph (v) of paragraph (b) of subdivision 2 of section 510
    30  of  the  vehicle and traffic law, as amended by chapter 3 of the laws of
    31  1995, is amended to read as follows:
    32    (v) For a period of six months where the holder is  convicted  of,  or
    33  receives   a   youthful  offender  or  other  juvenile  adjudication  in
    34  connection with, any  misdemeanor  or  felony  defined  in  article  two
    35  hundred twenty or two hundred twenty-one of the penal law, any violation
    36  of  the  federal  controlled  substances act, [any crime in violation of
    37  subdivision four of section eleven hundred ninety-two of  this  chapter]
    38  or  any  out-of-state  or  federal  misdemeanor  or  felony drug-related
    39  offense; provided, however, that any time  actually  served  in  custody
    40  pursuant  to  a  sentence  or  disposition  imposed  as a result of such
    41  conviction or youthful offender or other juvenile adjudication shall  be
    42  credited  against  the  period of such suspension and, provided further,
    43  that the court shall determine that such suspension need not be  imposed
    44  where there are compelling circumstances warranting an exception.
    45    § 4. Paragraphs i and j of subdivision 6 of section 510 of the vehicle
    46  and  traffic  law,  as  added  by  chapter  533 of the laws of 1993, are
    47  amended to read as follows:
    48    i. Where suspension of a driver's license is mandatory hereunder based
    49  upon a conviction of, or youthful offender  or  other  juvenile  adjudi-
    50  cation in connection with, any misdemeanor or felony as defined in arti-
    51  cle  two  hundred twenty or two hundred twenty-one of the penal law, any
    52  violation of the  federal  controlled  substances  act,  [any  crime  in
    53  violation  of  subdivision  four of section eleven hundred ninety-two of
    54  this chapter] or any out-of-state or federal misdemeanor or felony drug-
    55  related offense, the commissioner may issue  a  restricted  use  license
    56  pursuant to section five hundred thirty of this chapter.

        S. 2008--A                         55                         A. 3008--A

     1    j. Where suspension of a driver's license is mandatory hereunder based
     2  upon  a  conviction  of,  or youthful offender or other juvenile adjudi-
     3  cation in connection with, any misdemeanor or felony as defined in arti-
     4  cle two hundred twenty or two hundred twenty-one of the penal  law,  any
     5  violation  of  the  federal  controlled  substances  act,  [any crime in
     6  violation of subdivision four of section eleven  hundred  ninety-two  of
     7  this chapter] or any out-of-state or federal misdemeanor or felony drug-
     8  related  offense  and the individual does not have a driver's license or
     9  the  individual's  driver's  license  was  suspended  at  the  time   of
    10  conviction  or  youthful  offender  or  other juvenile adjudication, the
    11  commissioner shall not issue  a  new  license  nor  restore  the  former
    12  license for a period of six months after such individual would otherwise
    13  have  become  eligible  to  obtain  a  new license or to have the former
    14  license restored; provided, however, that during such delay  period  the
    15  commissioner may issue a restricted use license pursuant to section five
    16  hundred  thirty  of  this  [chapter]  title to such previously suspended
    17  licensee.
    18    § 5. Paragraph (b) of subdivision 2 of section 1193 of the vehicle and
    19  traffic law is amended by adding  a  new  subparagraph  13  to  read  as
    20  follows:
    21    (13)  Where  revocation  of  a driver's license is mandatory hereunder
    22  based upon a conviction of, or youthful offender of other juvenile adju-
    23  dication in connection with any crime in violation of  subdivision  four
    24  of  section eleven hundred ninety-two of this article and the individual
    25  does not have a driver's license or the  individual's  driver's  license
    26  was  suspended or revoked at the time of conviction or youthful offender
    27  or other juvenile adjudication, the commissioner shall not issue  a  new
    28  license  nor restore the former license for a period of six months after
    29  such individual would otherwise have become eligible  to  obtain  a  new
    30  license  or to have the former license restored; provided, however, that
    31  during such period the commissioner  may  issue  a  conditional  license
    32  pursuant  to  section  eleven hundred ninety-six of this article to such
    33  previously revoked licensee.
    34    § 6. Clauses a and b of subparagraph 1 of paragraph (d) of subdivision
    35  2 of section 1194 of the vehicle and traffic law, as amended by  chapter
    36  732 of the laws of 2006, are amended to read as follows:
    37    a.  Any  license  which  has been revoked pursuant to paragraph (c) of
    38  this subdivision shall not be restored for at least [one year]  eighteen
    39  months  after  such revocation, nor thereafter, except in the discretion
    40  of the commissioner. However, no such license shall be restored  for  at
    41  least [eighteen] twenty-four months after such revocation, nor thereaft-
    42  er  except  in the discretion of the commissioner, in any case where the
    43  person has had a prior revocation resulting from refusal to submit to  a
    44  chemical  test,  or has been convicted of or found to be in violation of
    45  any subdivision of section eleven hundred ninety-two or  section  eleven
    46  hundred  ninety-two-a  of this article not arising out of the same inci-
    47  dent, within the five years immediately preceding the date of such revo-
    48  cation; provided, however, a prior finding that a person under  the  age
    49  of  twenty-one  has  refused  to  submit  to a chemical test pursuant to
    50  subdivision three of section eleven hundred ninety-four-a of this  arti-
    51  cle  shall have the same effect as a prior finding of a refusal pursuant
    52  to this subdivision solely for the purpose of determining the length  of
    53  any  license  suspension  or revocation required to be imposed under any
    54  provision of this article,  provided  that  the  subsequent  offense  or
    55  refusal  is  committed  or  occurred  prior  to  the  expiration  of the

        S. 2008--A                         56                         A. 3008--A

     1  retention period for such prior refusal as set forth in paragraph (k) of
     2  subdivision one of section two hundred one of this chapter.
     3    b.  Any  license  which  has been revoked pursuant to paragraph (c) of
     4  this subdivision or pursuant to  subdivision  three  of  section  eleven
     5  hundred  ninety-four-a  of  this article, where the holder was under the
     6  age of twenty-one years at the  time  of  such  refusal,  shall  not  be
     7  restored for at least [one year] eighteen months, nor thereafter, except
     8  in  the  discretion of the commissioner. Where such person under the age
     9  of twenty-one years has a prior finding, conviction or youthful offender
    10  adjudication resulting from a violation of section eleven hundred  nine-
    11  ty-two or section eleven hundred ninety-two-a of this article, not aris-
    12  ing  from  the  same incident, such license shall not be restored for at
    13  least [one year] twenty-four months or until such person reaches the age
    14  of twenty-one years, whichever is the greater period of time, nor there-
    15  after, except in the discretion of the commissioner.
    16    § 7. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of  the
    17  vehicle and traffic law, as amended by section 4 of part C of chapter 58
    18  of the laws of 2013, are amended to read as follows:
    19    (a)  Except  as  otherwise  provided  in this section, no person shall
    20  operate a motor vehicle upon a public highway while using a mobile tele-
    21  phone to engage in a call while such vehicle  is  in  motion;  provided,
    22  however,  that  no person shall operate a commercial motor vehicle while
    23  using a mobile telephone to  engage  in  a  call  on  a  public  highway
    24  [including  while  temporarily  stationary because of traffic, a traffic
    25  control device, or other momentary delays]. Provided  further,  however,
    26  that  a  person shall not be deemed to be operating a [commercial] motor
    27  vehicle while using a mobile telephone to engage in a call on  a  public
    28  highway  when  such  vehicle is stopped at the side of, or off, a public
    29  highway in a location where such vehicle  is  not  otherwise  prohibited
    30  from  stopping by law, rule, regulation or any lawful order or direction
    31  of a police officer.
    32    (b) An operator of any motor vehicle upon a public highway who holds a
    33  mobile telephone to, or in the immediate proximity of, his  or  her  ear
    34  [while  such  vehicle is in motion] is presumed to be engaging in a call
    35  within the meaning of this section[; provided, however, that an operator
    36  of a commercial motor vehicle who holds a mobile telephone to, or in the
    37  immediate proximity of, his or her ear while such vehicle is temporarily
    38  stationary because of traffic, a traffic control device, or other momen-
    39  tary delays is also presumed to be engaging in a call within the meaning
    40  of this section except that a person operating a commercial motor  vehi-
    41  cle while using a mobile telephone to engage in a call when such vehicle
    42  is  stopped at the side of, or off, a public highway in a location where
    43  such vehicle is not otherwise prohibited from  stopping  by  law,  rule,
    44  regulation  or  any  lawful order or direction of a police officer shall
    45  not be presumed to be engaging in a call  within  the  meaning  of  this
    46  section].  The presumption established by this subdivision is rebuttable
    47  by evidence tending to show that the operator was not engaged in a call.
    48    § 8. Subdivision 3 of section 1225-c of the vehicle and  traffic  law,
    49  as  added by chapter 69 of the laws of 2001, is amended and a new subdi-
    50  vision 2-a is added to read as follows:
    51    2-a. No person under eighteen years of age shall operate a motor vehi-
    52  cle upon a public highway while engaging in a call with a hand  held  or
    53  hands  free  mobile  telephone.  For  the  purposes of this subdivision,
    54  engaging in a call shall include making or receiving a call with a  hand
    55  held or hands free mobile telephone.

        S. 2008--A                         57                         A. 3008--A

     1    3.  [Subdivision] Subdivisions two and two-a of this section shall not
     2  apply to (a) the use of a mobile  telephone  for  the  sole  purpose  of
     3  communicating  with  any  of  the following regarding an emergency situ-
     4  ation: an emergency response operator; a hospital, physician's office or
     5  health  clinic;  an  ambulance  company  or  corps;  a  fire department,
     6  district or company; or a police department, (b) any  of  the  following
     7  persons  while  in  the  performance  of their official duties: a police
     8  officer or peace officer; a member of a  fire  department,  district  or
     9  company;  or  the operator of an authorized emergency vehicle as defined
    10  in section one hundred one of this chapter, or (c) the use of  a  hands-
    11  free  mobile  telephone  except  as  applied to persons under the age of
    12  eighteen years.
    13    § 9. Subdivisions 1 and 4 of section 1225-d of the vehicle and traffic
    14  law, subdivision 1 as amended by section 6 and subdivision 4 as  amended
    15  by  section  10 of part C of chapter 58 of the laws of 2013, are amended
    16  to read as follows:
    17    1. Except as otherwise provided in this section, no person shall oper-
    18  ate a motor vehicle while using any portable  electronic  device  [while
    19  such vehicle is in motion; provided, however, that no person shall oper-
    20  ate  a  commercial  motor  vehicle  while  using any portable electronic
    21  device on  a  public  highway  including  while  temporarily  stationary
    22  because  of  traffic,  a  traffic  control  device,  or  other momentary
    23  delays]. Provided further, however, that a person shall not be deemed to
    24  be operating a [commercial] motor vehicle while using a  portable  elec-
    25  tronic  device  on  a public highway when such vehicle is stopped at the
    26  side of, or off, a public highway in a location where  such  vehicle  is
    27  not  otherwise  prohibited from stopping by law, rule, regulation or any
    28  lawful order or direction of a police officer.
    29    4. A person who  [holds]  uses  a  portable  electronic  device  in  a
    30  conspicuous  manner while operating a motor vehicle or while operating a
    31  [commercial] motor vehicle on a public highway [including  while  tempo-
    32  rarily stationary because of traffic, a traffic control device, or other
    33  momentary delays] but not including when such [commercial] motor vehicle
    34  is  stopped at the side of, or off, a public highway in a location where
    35  such vehicle is not otherwise prohibited from  stopping  by  law,  rule,
    36  regulation  or  any  lawful  order  or  direction of a police officer is
    37  presumed to be using such device[, except  that  a  person  operating  a
    38  commercial  motor  vehicle while using a portable electronic device when
    39  such vehicle is stopped at the side of, or off, a public  highway  in  a
    40  location where such vehicle is not otherwise prohibited from stopping by
    41  law, rule, regulation or any lawful order or direction of a police offi-
    42  cer  shall  not  be  presumed  to be using such device]. The presumption
    43  established by this subdivision is rebuttable  by  evidence  tending  to
    44  show  that  the  operator was not using the device within the meaning of
    45  this section.
    46    § 10. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the
    47  vehicle and traffic law, as amended by section 8 of part C of chapter 58
    48  of the laws of 2013, are amended to read as follows:
    49    (a) "Portable electronic device" shall mean any hand-held mobile tele-
    50  phone, as defined by subdivision one of section twelve  hundred  twenty-
    51  five-c  of  this  article,  personal  digital  assistant (PDA), handheld
    52  device with  mobile  data  access,  laptop  computer,  pager,  broadband
    53  personal  communication  device,  two-way  messaging  device, electronic
    54  game, or portable computing device, or any other  [electronic]  personal
    55  wireless communications device when used to input, write, send, receive,
    56  or  read  text  or  images for present or future communication including

        S. 2008--A                         58                         A. 3008--A
 
     1  doing so for the purpose of SMS texting, emailing, instant messaging  or
     2  engaging  in  any  other form of electronic data retrieval or electronic
     3  data communication.
     4    (b) "Using" shall mean holding or making contact with a portable elec-
     5  tronic device [while] for the purpose of viewing, taking or transmitting
     6  images, playing games, or, for the purpose of present or future communi-
     7  cation: performing a command or request to access a world wide web page,
     8  composing, sending, reading, viewing, accessing, browsing, transmitting,
     9  saving  or  retrieving e-mail, text messages, instant messages, or other
    10  electronic data.
    11    § 11. Subdivision 2 of section 1225-d of the vehicle and traffic  law,
    12  is amended by adding a new paragraph (e) to read as follows:
    13    (e) "Personal wireless communications device" shall: (i) mean a device
    14  through   which  personal  wireless  services  (as  defined  in  section
    15  332(c)(7)(C)(i) of  the  Communications  Act  of  1934  (47  U.S.C.  332
    16  (c)(7)(C)(i)), are transmitted; and
    17    (ii)  does  not  include a global navigation satellite system receiver
    18  used for positioning, emergency notification, or navigation purposes.
    19    § 12. Subdivision 3 of section 1229-c of the vehicle and traffic  law,
    20  as  added  by  chapter  365  of  the laws of 1984, is amended to read as
    21  follows:
    22    3. No person shall operate a  motor  vehicle  unless  such  person  is
    23  restrained  by  a  safety  belt  approved by the commissioner. No person
    24  sixteen years of age or over shall be a passenger in [the front seat of]
    25  a motor vehicle unless such  person  is  restrained  by  a  safety  belt
    26  approved by the commissioner.
    27    § 13. This act shall take effect on the first of October next succeed-
    28  ing the date on which it shall have become a law.
 
    29                                   PART M
 
    30    Section  1.  Subdivision 3 of section 16-m of section 1 of chapter 174
    31  of the laws of 1968 constituting the New York  state  urban  development
    32  corporation  act, as amended by section 1 of part F of chapter 58 of the
    33  laws of 2016, is amended to read as follows:
    34    3. The provisions of this section shall  expire,  notwithstanding  any
    35  inconsistent provision of subdivision 4 of section 469 of chapter 309 of
    36  the laws of 1996 or of any other law, on July 1, [2017] 2018.
    37    §  2.  This  act  shall take effect immediately and shall be deemed to
    38  have been in full force and effect on and after July 1, 2017.
 
    39                                   PART N
 
    40    Section 1. Section 2 of chapter 393 of the laws of 1994, amending  the
    41  New York state urban development corporation act, relating to the powers
    42  of  the  New  York state urban development corporation to make loans, as
    43  amended by section 1 of part G of chapter 58 of the  laws  of  2016,  is
    44  amended to read as follows:
    45    §  2.  This  act shall take effect immediately provided, however, that
    46  section one of this act shall expire on July 1, [2017]  2018,  at  which
    47  time the provisions of subdivision 26 of section 5 of the New York state
    48  urban  development  corporation  act shall be deemed repealed; provided,
    49  however, that neither the expiration nor the repeal of such  subdivision
    50  as provided for herein shall be deemed to affect or impair in any manner
    51  any  loan  made  pursuant  to the authority of such subdivision prior to
    52  such expiration and repeal.

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     1    § 2. This act shall take effect immediately and  shall  be  deemed  to
     2  have been in full force and effect on and after April 1, 2017.
 
     3                                   PART O
 
     4    Section  1. The opening paragraph of subdivision (h) of section 121 of
     5  chapter 261 of the laws of 1988, amending  the  state  finance  law  and
     6  other  laws relating to the New York state infrastructure trust fund, as
     7  amended by section 2 of part Q of chapter 58 of the  laws  of  2015,  is
     8  amended to read as follows:
     9    The  provisions  of  [section] sections sixty-two through sixty-six of
    10  this act shall expire on December thirty-first, two thousand [seventeen]
    11  eighteen, except that:
    12    § 2. This act shall take effect immediately.
 
    13                                   PART P
 
    14    Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the
    15  laws of 2015 constituting the infrastructure investment act, is  amended
    16  to read as follows:
    17    (a)  "authorized [state] entity" shall mean the New York state thruway
    18  authority, [the department  of  transportation,  the  office  of  parks,
    19  recreation  and  historic  preservation, the department of environmental
    20  conservation and] the New York state bridge authority, any authority  as
    21  such  term  is defined in section 2 of the public authorities law, every
    22  state agency, as such term is  defined  in  section  160  of  the  state
    23  finance  law and including the state university of New York and the city
    24  university of New York, and any and all affiliates  or  subsidiaries  of
    25  such  entities, and counties as such term is defined in section 3 of the
    26  county law, excluding Bronx, Kings, New York, Queens, and Richmond coun-
    27  ties.
    28    § 2. Section 2 of part F of chapter 60 of the laws of 2015  constitut-
    29  ing the infrastructure investment act, is amended by adding a new subdi-
    30  vision (b-1) to read as follows:
    31    (b-1)  "capital  assets"  shall  have the same meaning as such term is
    32  defined by subdivision 6-b of section 2 of the state finance law.
    33    § 3. Section 3 of part F of chapter 60 of the laws of 2015  constitut-
    34  ing the infrastructure investment act, is amended to read as follows:
    35    §  3. Notwithstanding the provisions of section 38 of the highway law,
    36  section 136-a of the state finance law, [section]  sections  359,  1678,
    37  1680,  1680-a  and  2879-a  of  the  public  authorities  law, [section]
    38  sections 407-a, 6281 and 7210 of the education law, sections 8 and 9  of
    39  the public buildings law, section 11 of chapter 795 of the laws of 1967,
    40  sections  8  and  9  of  section 1 of chapter 359 of the laws of 1968 as
    41  amended, section 29 of chapter 337 of the laws of 1972,  section  21  of
    42  chapter  464  of  the laws of 1972, section 103 of the general municipal
    43  law, and the provisions of  any  other  law  to  the  contrary,  and  in
    44  conformity  with  the  requirements  of  this act, an authorized [state]
    45  entity may utilize  the  alternative  delivery  method  referred  to  as
    46  design-build contracts, in consultation with relevant local labor organ-
    47  izations and construction industry, for capital projects related to [the
    48  state's  physical  infrastructure,  including,  but  not limited to, the
    49  state's highways, bridges, dams, flood  control  projects,  canals,  and
    50  parks, including, but not limited to, to repair damage caused by natural
    51  disaster,  to  correct health and safety defects, to comply with federal
    52  and state laws, standards, and regulations, to extend the useful life of

        S. 2008--A                         60                         A. 3008--A

     1  or replace the state's highways, bridges, dams, flood control  projects,
     2  canals, and parks or to improve or add to the state's highways, bridges,
     3  dams,  flood control projects, canals, and parks] publicly owned capital
     4  assets;  provided  that [for the contracts executed by the department of
     5  transportation, the office of parks, recreation and  historic  preserva-
     6  tion,  or  the department of environmental conservation,] the total cost
     7  of each such project shall not be less  than  one  million  two  hundred
     8  thousand dollars ($1,200,000).
     9    § 4. Section 4 of part F of chapter 60 of he laws of 2015 constituting
    10  the infrastructure investment act, is amended to read as follows:
    11    §  4. An entity selected by an authorized [state] entity to enter into
    12  a design-build contract shall be selected through a two-step method,  as
    13  follows:
    14    (a)  Step one. Generation of a list of entities that have demonstrated
    15  the general capability to perform the design-build contract.  Such  list
    16  shall  consist  of  a  specified number of entities, as determined by an
    17  authorized [state] entity, and shall be generated based upon the author-
    18  ized [state] entity's review  of  responses  to  a  publicly  advertised
    19  request  for qualifications. The authorized [state] entity's request for
    20  qualifications shall include a general description of the  project,  the
    21  maximum number of entities to be included on the list, and the selection
    22  criteria  to  be  used  in  generating the list. Such selection criteria
    23  shall include the  qualifications  and  experience  of  the  design  and
    24  construction team, organization, demonstrated responsibility, ability of
    25  the team or of a member or members of the team to comply with applicable
    26  requirements,  including  the provisions of articles 145, 147 and 148 of
    27  the education law, past record of compliance with  the  labor  law,  and
    28  such  other qualifications the authorized [state] entity deems appropri-
    29  ate which may include but are  not  limited  to  project  understanding,
    30  financial  capability  and  record  of  past performance. The authorized
    31  [state] entity shall evaluate and rate all entities  responding  to  the
    32  request  for  qualifications.    Based upon such ratings, the authorized
    33  [state] entity shall list the entities that shall receive a request  for
    34  proposals  in  accordance  with subdivision (b) of this section.  To the
    35  extent consistent with applicable federal law,  the  authorized  [state]
    36  entity  shall  consider,  when  awarding  any  contract pursuant to this
    37  section, the participation of: (i) firms certified pursuant  to  article
    38  15-A  of the executive law as minority or women-owned businesses and the
    39  ability of other businesses under consideration to  work  with  minority
    40  and  women-owned businesses so as to promote and assist participation by
    41  such businesses; [and] (ii) small business concerns identified  pursuant
    42  to subdivision (b) of section 139-g of the state finance law.
    43    (b) Step two. Selection of the proposal which is the best value to the
    44  [state]  authorized entity.  The authorized [state] entity shall issue a
    45  request for proposals to the entities listed pursuant to subdivision (a)
    46  of this section.  If such an entity consists of a team of separate enti-
    47  ties, the entities that comprise such a team must remain unchanged  from
    48  the  entity as listed pursuant to subdivision (a) of this section unless
    49  otherwise approved by the authorized [state]  entity.  The  request  for
    50  proposals  shall  set  forth  the  project's  scope  of  work, and other
    51  requirements, as determined by  the  authorized  [state]  entity.    The
    52  request  for proposals shall specify the criteria to be used to evaluate
    53  the responses and the relative weight  of  each  such  criteria.    Such
    54  criteria   shall  include  the  proposal's  cost,  the  quality  of  the
    55  proposal's solution, the qualifications and experience  of  the  design-
    56  build  entity,  and  other  factors  deemed  pertinent by the authorized

        S. 2008--A                         61                         A. 3008--A
 
     1  [state] entity, which may include, but shall  not  be  limited  to,  the
     2  proposal's  project  implementation,  ability  to complete the work in a
     3  timely and satisfactory  manner,  maintenance  costs  of  the  completed
     4  project,  maintenance  of  traffic  approach,  and community impact. Any
     5  contract awarded pursuant to this act shall be awarded to  a  responsive
     6  and  responsible  entity  that submits the proposal, which, in consider-
     7  ation of these and other specified  criteria  deemed  pertinent  to  the
     8  project,  offers  the  best  value  to the [state] authorized entity, as
     9  determined by the authorized [state] entity.  Nothing  herein  shall  be
    10  construed  to  prohibit  the  authorized  entity  from negotiating final
    11  contract terms and conditions including cost.
    12    § 5. Section 6 of part F of chapter 60 of the laws of 2015  constitut-
    13  ing the infrastructure investment act, is amended to read as follows:
    14    §  6.  Construction for each capital project undertaken by the author-
    15  ized [state] entity pursuant to this act shall be deemed a "public work"
    16  to be performed in accordance with the provisions of article  8  of  the
    17  labor  law,  as well as subject to sections 200, 240, 241 and 242 of the
    18  labor law and enforcement of prevailing wage  requirements  by  the  New
    19  York state department of labor.
    20    §  6. Section 7 of part F of chapter 60 of the laws of 2015 constitut-
    21  ing the infrastructure investment act, is amended to read as follows:
    22    § 7. If otherwise  applicable,  capital  projects  undertaken  by  the
    23  authorized  [state]  entity  pursuant  to  this  act shall be subject to
    24  section 135 of the state finance law, section 101 of the general munici-
    25  pal law, and section 222 of the labor law; provided,  however,  that  an
    26  authorized  entity  may fulfill its obligations under section 135 of the
    27  state finance law or section 101 of the general municipal law by requir-
    28  ing the contractor to prepare separate specifications in accordance with
    29  section 135 of the state finance law  or  section  101  of  the  general
    30  municipal law, as the case may be.
    31    §  7. Section 8 of part F of chapter 60 of the laws of 2015 constitut-
    32  ing the infrastructure investment act, is amended to read as follows:
    33    § 8. Each contract entered  into  by  the  authorized  [state]  entity
    34  pursuant  to  this section shall comply with the objectives and goals of
    35  minority and women-owned business enterprises pursuant to  article  15-A
    36  of  the  executive  law  or,  for  projects receiving federal aid, shall
    37  comply with applicable federal requirements for  disadvantaged  business
    38  enterprises.
    39    §  8. Section 9 of part F of chapter 60 of the laws of 2015 constitut-
    40  ing the infrastructure investment act, is amended to read as follows:
    41    § 9. Capital projects undertaken  by  the  authorized  [state]  entity
    42  pursuant  to  this act shall be subject to the requirements of article 8
    43  of the  environmental  conservation  law,  and,  where  applicable,  the
    44  requirements of the national environmental policy act.
    45    § 9. Section 10 of part F of chapter 60 of the laws of 2015 constitut-
    46  ing the infrastructure investment act, is amended to read as follows:
    47    §  10.    If  otherwise applicable, capital projects undertaken by the
    48  authorized [state] entity pursuant to this  act  shall  be  governed  by
    49  sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph
    50  g of subdivision 9 of section 163 of the state finance law.
    51    §  10.  Section 12 of part F of chapter 60 of the laws of 2015 consti-
    52  tuting the infrastructure investment act, is amended to read as follows:
    53    § 12. Nothing contained in this act shall limit  the  right  or  obli-
    54  gation of the authorized [state] entity to comply with the provisions of
    55  any  existing  contract, including any existing contract with or for the

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     1  benefit of the holders of the  obligations  of  the  authorized  [state]
     2  entity, or to award contracts as otherwise provided by law.
     3    §  11.  Section 13 of part F of chapter 60 of the laws of 2015 consti-
     4  tuting the infrastructure investment act, is amended to read as follows:
     5    § 13. Alternative construction awarding processes.  (a)  Notwithstand-
     6  ing  the  provisions  of  any  other law to the contrary, the authorized
     7  [state] entity may award a construction contract:
     8    1. To the contractor offering the best value; or
     9    2. Utilizing a cost-plus not to exceed guaranteed maximum  price  form
    10  of  contract in which the authorized [state] entity shall be entitled to
    11  monitor and audit all project costs. In establishing  the  schedule  and
    12  process for determining a guaranteed maximum price, the contract between
    13  the authorized [state] entity and the contractor shall:
    14    (i)  describe  the  scope  of the work and the cost of performing such
    15  work;
    16    (ii) include a detailed line item cost breakdown;
    17    (iii) include a list of all drawings, specifications and other  infor-
    18  mation on which the guaranteed maximum price is based;
    19    (iv)  include  the dates for substantial and final completion on which
    20  the guaranteed maximum price is based; and
    21    (v) include a schedule of unit prices; or
    22    3. Utilizing a lump sum contract in which  the  contractor  agrees  to
    23  accept  a  set dollar amount for a contract which comprises a single bid
    24  without providing a cost breakdown for all costs such as for  equipment,
    25  labor, materials, as well as such contractor's profit for completing all
    26  items of work comprising the project.
    27    (b)  Capital  projects  undertaken by an authorized [state] entity may
    28  include an incentive clause in  the  contract  for  various  performance
    29  objectives, but the incentive clause shall not include an incentive that
    30  exceeds  the  quantifiable  value of the benefit received by the [state]
    31  authorized entity. The authorized [state] entity  shall  establish  such
    32  performance and payment bonds as it deems necessary.
    33    §  12.  Section 14 of part F of chapter 60 of the laws of 2015 consti-
    34  tuting the infrastructure investment act, is amended to read as follows:
    35    §  14.  Prequalified  contractors.  (a)  Notwithstanding   any   other
    36  provision  of  law, the authorized [state] entity may maintain a list of
    37  prequalified contractors who are eligible to submit a proposal  pursuant
    38  to  this  act  and entry into such list shall be continuously available.
    39  Prospective contractors may be prequalified as  contractors  to  provide
    40  particular  types  of  construction, in accordance with general criteria
    41  established by the authorized [state]  entity  which  may  include,  but
    42  shall  not  be  limited to, the experience, past performance, ability to
    43  undertake the type and complexity of work, financial capability, respon-
    44  sibility, compliance with equal employment opportunity requirements  and
    45  anti-discrimination  laws, and reliability. Such prequalification may be
    46  by categories designed by size and other factors.
    47    (b) A contractor who is denied prequalification or whose prequalifica-
    48  tion is revoked or suspended by the authorized [state] entity may appeal
    49  such decision to the authorized [state] entity.  If  such  a  suspension
    50  extends  for  more than three months, it shall be deemed a revocation of
    51  the prequalification. The authorized [state] entity may proceed with the
    52  contract award during any appeal.
    53    § 13. Part F of chapter 60  of  the  laws  of  2015  constituting  the
    54  infrastructure  investment  act, is amended by adding a new section 15-a
    55  to read as follows:

        S. 2008--A                         63                         A. 3008--A
 
     1    § 15-a. Any contract awarded pursuant to this act shall be  deemed  to
     2  be awarded pursuant to a competitive procurement for purposes of section
     3  2879-a of the public authorities law.
     4    §  14.  Section 17 of part F of chapter 60 of the laws of 2015 consti-
     5  tuting the infrastructure investment act, is amended to read as follows:
     6    § 17. This act shall take effect immediately [and shall expire and  be
     7  deemed  repealed  2  years after such date, provided that, projects with
     8  requests for qualifications issued prior to such repeal shall be permit-
     9  ted to continue under this act notwithstanding such repeal].
    10    § 15. This act shall take effect immediately; provided,  however  that
    11  the amendments to the infrastructure investment act made by sections one
    12  through thirteen of this act shall not affect the repeal of such act and
    13  shall be deemed repealed therewith.
 
    14                                   PART Q
 
    15    Section  1.  Section 2 of chapter 21 of the laws of 2003, amending the
    16  executive law relating to permitting the secretary of state  to  provide
    17  special  handling  for  all documents filed or issued by the division of
    18  corporations and to permit additional levels of such expedited  service,
    19  as  amended by section 1 of part M of chapter 58 of the laws of 2016, is
    20  amended to read as follows:
    21    § 2. This act shall take effect immediately,  provided  however,  that
    22  section  one  of this act shall be deemed to have been in full force and
    23  effect on and after April 1, 2003 and shall expire  March  31,  [2017]
    24  2018.
    25    §  2.  This  act  shall take effect immediately and shall be deemed to
    26  have been in full force and effect on and after March 31, 2017.
 
    27                                   PART R
 
    28    Section 1. Paragraph (d) of section 304 of  the  business  corporation
    29  law is amended to read as follows:
    30    (d)  Any designated post office address maintained by the secretary of
    31  state as agent of a domestic corporation or foreign corporation for  the
    32  purpose  of  mailing process shall be the post office address, within or
    33  without the state, to which a person shall  mail  process  against  such
    34  corporation  as  required  by this article. Any designated [post-office]
    35  post office address to which the secretary of state or  a  person  shall
    36  mail  a  copy of any process served upon [him] the secretary of state as
    37  agent of a domestic corporation or a foreign corporation, shall continue
    38  until the filing of a certificate under this chapter directing the mail-
    39  ing to a different [post-office] post office address.
    40    § 2. Paragraph (a) of section 305 of the business corporation law,  as
    41  amended  by  chapter  131  of  the  laws  of 1985, is amended to read as
    42  follows:
    43    (a) In addition to such designation of the secretary of  state,  every
    44  domestic  corporation  or authorized foreign corporation may designate a
    45  registered agent in this state upon whom  process  against  such  corpo-
    46  ration may be served. The agent shall be a natural person who is a resi-
    47  dent  of or has a business address in this state [or], a domestic corpo-
    48  ration  or  foreign  corporation  of  any  type  or  kind  formed[,]  or
    49  authorized to do business in this state, under this chapter or under any
    50  other  statute  of  this state, or domestic limited liability company or
    51  foreign limited liability company formed or authorized to do business in
    52  this state.

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     1    § 3. Subparagraph 1 of paragraph (b) of section 306  of  the  business
     2  corporation  law,  as  amended  by  chapter  419 of the laws of 1990, is
     3  amended to read as follows:
     4    (1)  Service of process on the secretary of state as agent of a domes-
     5  tic or authorized foreign corporation, or other business entity that has
     6  designated the secretary of state as agent for service of process pursu-
     7  ant to article nine of this chapter, shall be made by [personally deliv-
     8  ering to and leaving with the secretary of state or a  deputy,  or  with
     9  any person authorized by the secretary of state to receive such service,
    10  at  the  office of the department of state in the city of Albany, dupli-
    11  cate copies of such process together with the statutory fee,  which  fee
    12  shall  be  a  taxable  disbursement]  mailing  the process and notice of
    13  service thereof by certified mail, return  receipt  requested,  to  such
    14  corporation or other business entity, at the post office address on file
    15  in the department of state, specified for this purpose. If a domestic or
    16  authorized  foreign  corporation  has  no  such  address  on file in the
    17  department of state, the process and notice of service thereof shall  be
    18  mailed,  in  the case of a domestic corporation, in care of any director
    19  named in its certificate of  incorporation  at  the  director's  address
    20  stated  therein or, in the case of an authorized foreign corporation, to
    21  such corporation at the address of its office within this state on  file
    22  in the department. On the same day that such process is mailed, a dupli-
    23  cate  copy of such process and proof of mailing together with the statu-
    24  tory fee, which fee shall be a taxable disbursement shall be  personally
    25  delivered  to  and left with the secretary of state or a deputy, or with
    26  any person authorized by the secretary of state to receive such service,
    27  at the office of the department of state in the city of Albany. Proof of
    28  mailing shall be by affidavit of compliance with this section.   Service
    29  of  process  on  such  corporation  or  other  business  entity shall be
    30  complete when the secretary of state is so  served.  [The  secretary  of
    31  state  shall  promptly send one of such copies by certified mail, return
    32  receipt requested, to such corporation, at the post office  address,  on
    33  file  in the department of state, specified for the purpose. If a domes-
    34  tic or authorized foreign corporation has no such address on file in the
    35  department of state, the secretary of state shall so mail such copy,  in
    36  the case of a domestic corporation, in care of any director named in its
    37  certificate  of  incorporation  at the director's address stated therein
    38  or, in the case of an authorized foreign  corporation,  to  such  corpo-
    39  ration  at  the  address  of its office within this state on file in the
    40  department.]
    41    § 4. Subparagraphs 2 and 3 of paragraph (a) of section  306-A  of  the
    42  business  corporation  law, as added by chapter 469 of the laws of 1997,
    43  are amended to read as follows:
    44    (2) That the address of the party has been designated  by  the  corpo-
    45  ration  as  the  post office address to which [the secretary of state] a
    46  person shall mail a copy of any process served on the secretary of state
    47  as agent for such corporation, specifying such address,  and  that  such
    48  party wishes to resign.
    49    (3) That sixty days prior to the filing of the certificate of resigna-
    50  tion  or  receipt  of process with the department of state the party has
    51  sent a copy of the certificate of resignation for receipt of process  by
    52  registered  or  certified mail to the address of the registered agent of
    53  the designating corporation, if other than the party filing the  certif-
    54  icate  of  resignation[,]  for receipt of process, or if the [resigning]
    55  designating corporation has  no  registered  agent,  then  to  the  last
    56  address  of  the  designating corporation known to the party, specifying

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     1  the address to which the copy was sent. If there is no registered  agent
     2  and  no  known  address  of the designating corporation, the party shall
     3  attach an affidavit to the  certificate  stating  that  a  diligent  but
     4  unsuccessful  search  was  made  by the party to locate the corporation,
     5  specifying what efforts were made.
     6    § 5. Subparagraph 7 of paragraph (a) of section 402  of  the  business
     7  corporation law is amended to read as follows:
     8    (7)  A  designation  of  the secretary of state as agent of the corpo-
     9  ration upon whom process against it may be served and  the  post  office
    10  address, within or without this state, to which [the secretary of state]
    11  a  person  shall mail a copy of any process against it served upon [him]
    12  the secretary of state.
    13    § 6. Subparagraph (c) of paragraph 1 of section 408  of  the  business
    14  corporation  law, as amended by section 3 of part S of chapter 59 of the
    15  laws of 2015, is amended to read as follows:
    16    (c) The post office address, within or without this  state,  to  which
    17  [the  secretary  of  state]  a  person  shall mail a copy of any process
    18  against it served upon [him or  her]  the  secretary  of  state.    Such
    19  address shall supersede any previous address on file with the department
    20  of state for this purpose.
    21    §  7.  Subparagraph  4 of paragraph (b) of section 801 of the business
    22  corporation law is amended to read as follows:
    23    (4) To specify or change the post office address to which [the  secre-
    24  tary  of  state]  a  person shall mail a copy of any process against the
    25  corporation served upon [him] the secretary of state.
    26    § 8. Subparagraph 2 of paragraph (b) of section 803  of  the  business
    27  corporation  law,  as  amended  by  chapter  803 of the laws of 1965, is
    28  amended to read as follows:
    29    (2) To specify or change the post office address to which [the  secre-
    30  tary  of  state]  a  person shall mail a copy of any process against the
    31  corporation served upon [him] the secretary of state.
    32    § 9. Paragraph (b) of section 805-A of the business  corporation  law,
    33  as  added  by  chapter  725  of  the laws of 1964, is amended to read as
    34  follows:
    35    (b) A certificate of change which changes only the post office address
    36  to which [the secretary of state] a person shall  mail  a  copy  of  any
    37  process  against  a  corporation  served  upon [him or] the secretary of
    38  state and/or the address of the registered agent, provided such  address
    39  being changed is the address of a person, partnership, limited liability
    40  company  or other corporation whose address, as agent, is the address to
    41  be changed or who has been  designated  as  registered  agent  for  such
    42  corporation,  may  be signed[, verified] and delivered to the department
    43  of state by such agent. The certificate of change shall  set  forth  the
    44  statements  required under subparagraphs [(a)] (1), (2) and (3) of para-
    45  graph (a) of this section; that a notice  of  the  proposed  change  was
    46  mailed  to the corporation by the party signing the certificate not less
    47  than thirty days prior to the date of delivery  to  the  department  and
    48  that such corporation has not objected thereto; and that the party sign-
    49  ing  the  certificate  is the agent of such corporation to whose address
    50  [the secretary of state] a person is required to mail copies of  process
    51  served on the secretary of state or the registered agent, if such be the
    52  case.  A  certificate  signed[, verified] and delivered under this para-
    53  graph shall not be deemed to effect a change of location of  the  office
    54  of the corporation in whose behalf such certificate is filed.

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     1    § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business
     2  corporation  law,  as  amended  by  chapter  177 of the laws of 2008, is
     3  amended to read as follows:
     4    (8)  If  the surviving or resulting entity is a foreign corporation or
     5  other business entity, a designation of the secretary of  state  as  its
     6  agent upon whom process against it may be served in the manner set forth
     7  in  paragraph  (b)  of section three hundred six of this chapter, in any
     8  action or special proceeding, and a post office address, within or with-
     9  out this state, to which [the secretary of state] a person shall mail  a
    10  copy of any process against it served upon [him] the secretary of state.
    11  Such post office address shall supersede any prior address designated as
    12  the address to which process shall be mailed;
    13    §  11. Clause (G) of subparagraph 2 of paragraph (e) of section 907 of
    14  the business corporation law, as amended by chapter 494 of the  laws  of
    15  1997, is amended to read as follows:
    16    (G)  A  designation  of  the secretary of state as its agent upon whom
    17  process against it may be served in the manner set  forth  in  paragraph
    18  (b)  of  section  306  (Service  of  process),  in any action or special
    19  proceeding, and a post office address, within or without this state,  to
    20  which [the secretary of state] a person shall mail a copy of any process
    21  against  it  served  upon [him] the secretary of state. Such post office
    22  address shall supersede any prior address designated as the  address  to
    23  which process shall be mailed.
    24    §  12. Subparagraph 6 of paragraph (a) of section 1304 of the business
    25  corporation law, as amended by chapter 684 of the laws of  1963  and  as
    26  renumbered  by  chapter  590  of the laws of 1982, is amended to read as
    27  follows:
    28    (6) A designation of the secretary of state as  its  agent  upon  whom
    29  process  against it may be served and the post office address, within or
    30  without this state, to which [the secretary of  state]  a  person  shall
    31  mail a copy of any process against it served upon [him] the secretary of
    32  state.
    33    §  13. Subparagraph 7 of paragraph (a) of section 1308 of the business
    34  corporation law, as amended by chapter 725 of the laws of  1964  and  as
    35  renumbered  by  chapter  186  of the laws of 1983, is amended to read as
    36  follows:
    37    (7) To specify or change the post office address to which [the  secre-
    38  tary  of  state]  a  person  shall mail a copy of any process against it
    39  served upon [him] the secretary of state.
    40    § 14. Subparagraph 2 of paragraph (a) and  paragraph  (c)  of  section
    41  1309-A  of the business corporation law, subparagraph 2 of paragraph (a)
    42  as added by chapter 725 of the laws of 1964 and paragraph (c) as amended
    43  by chapter 172 of the laws of 1999, are amended to read as follows:
    44    (2) To specify or change the post office address to which [the  secre-
    45  tary  of  state]  a  person  shall mail a copy of any process against it
    46  served upon [him] the secretary of state.
    47    (c) A certificate of change of application for authority which changes
    48  only the post office address to which [the secretary of state] a  person
    49  shall  mail  a  copy of any process against an authorized foreign corpo-
    50  ration served upon [him or which] the secretary of state and/or  changes
    51  the  address  of  its  registered  agent,  provided  such address is the
    52  address of a person, partnership, limited  liability  company  or  other
    53  corporation whose address, as agent, is the address to be changed or who
    54  has  been  designated  as  registered  agent for such authorized foreign
    55  corporation, may be signed and delivered to the department of  state  by
    56  such agent. The certificate of change of application for authority shall

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     1  set  forth the statements required under subparagraphs (1), (2), (3) and
     2  (4) of paragraph (b) of this section; that  a  notice  of  the  proposed
     3  change was mailed by the party signing the certificate to the authorized
     4  foreign  corporation  not  less  than  thirty  days prior to the date of
     5  delivery to the department and that such corporation  has  not  objected
     6  thereto; and that the party signing the certificate is the agent of such
     7  foreign  corporation  to whose address [the secretary of state] a person
     8  is required to mail copies of process served on the secretary  of  state
     9  or  the  registered agent, if such be the case. A certificate signed and
    10  delivered under this paragraph shall not be deemed to effect a change of
    11  location of the office of the corporation in whose behalf  such  certif-
    12  icate is filed.
    13    §  15.  Subparagraphs  1 and 6 of paragraph (a) of section 1310 of the
    14  business corporation law, subparagraph 1 as amended by  chapter  590  of
    15  the laws of 1982, are amended to read as follows:
    16    (1)  The name of the foreign corporation as it appears on the index of
    17  names of existing domestic and authorized foreign  corporations  of  any
    18  type  or kind in the department of state, division of corporations [or,]
    19  and the fictitious name, if any, the corporation has agreed  to  use  in
    20  this  state  pursuant to paragraph (d) of section 1301 of this [chapter]
    21  article.
    22    (6) A post office address, within or without this state, to which [the
    23  secretary of state] a person shall mail a copy of any process against it
    24  served upon [him] the secretary of state.
    25    § 16. Subparagraph 4 of paragraph (d) of section 1310 of the  business
    26  corporation law is amended to read as follows:
    27    (4)  The changed post office address, within or without this state, to
    28  which [the secretary of state] a person shall mail a copy of any process
    29  against it served upon [him] the secretary of state.
    30    § 17. Section 1311 of the business  corporation  law,  as  amended  by
    31  chapter 375 of the laws of 1998, is amended to read as follows:
    32  § 1311. Termination of existence.
    33    When  an  authorized foreign corporation is dissolved or its authority
    34  or existence is otherwise terminated or cancelled in the jurisdiction of
    35  its incorporation or when such foreign corporation  is  merged  into  or
    36  consolidated  with  another  foreign  corporation,  a certificate of the
    37  secretary of state, or official performing the equivalent function as to
    38  corporate records, of the jurisdiction of incorporation of such  foreign
    39  corporation attesting to the occurrence of any such event or a certified
    40  copy of an order or decree of a court of such jurisdiction directing the
    41  dissolution  of  such foreign corporation, the termination of its exist-
    42  ence or the cancellation of its authority  shall  be  delivered  to  the
    43  department  of  state.  The  filing  of the certificate, order or decree
    44  shall have the same effect as the filing of a certificate  of  surrender
    45  of  authority under section 1310 (Surrender of authority). The secretary
    46  of state shall continue as agent of the foreign  corporation  upon  whom
    47  process  against  it  may be served in the manner set forth in paragraph
    48  (b) of section 306 (Service  of  process),  in  any  action  or  special
    49  proceeding  based  upon  any  liability  or  obligation  incurred by the
    50  foreign corporation within this  state  prior  to  the  filing  of  such
    51  certificate,  order  or  decree and [he] the person serving such process
    52  shall [promptly cause a copy of  any  such]  send  the  process  [to  be
    53  mailed]  by  [registered]  certified  mail, return receipt requested, to
    54  such foreign corporation at the post  office  address  on  file  in  his
    55  office  specified  for  such  purpose and shall provide the secretary of
    56  state with proof of such mailing in the manner set  forth  in  paragraph

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     1  (b) of section 306 (service of process).  The post office address may be
     2  changed  by  signing and delivering to the department of state a certif-
     3  icate of change setting forth  the  statements  required  under  section
     4  1309-A  (Certificate of change; contents) to effect a change in the post
     5  office address under  subparagraph  seven  of  paragraph  (a)  [(4)]  of
     6  section 1308 (Amendments or changes).
     7    §  18. Subparagraph 6 of paragraph (a) of section 1530 of the business
     8  corporation law, as added by chapter 505 of the laws of 1983, is amended
     9  to read as follows:
    10    (6) A designation of the secretary of state as  its  agent  upon  whom
    11  process  against it may be served and the post office address, within or
    12  without this state, to which [the secretary of  state]  a  person  shall
    13  mail a copy of any process against it served upon [him] the secretary of
    14  state.
    15    §  19.  Subdivision  10  of section 11 of the cooperative corporations
    16  law, as added by chapter 97 of the laws of 1969, is amended to  read  as
    17  follows:
    18    10. A  designation  of  the  secretary of state as agent of the corpo-
    19  ration upon whom process against it may be served and  the  post  office
    20  address, within or without this state, to which [the secretary of state]
    21  a  person  shall mail a copy of any process against it served upon [him]
    22  the secretary of state.
    23    § 20. Subdivision 10 of section 96 of the executive law, as amended by
    24  chapter 39 of the laws of 1987, is amended to read as follows:
    25    10. For service of process on the secretary of state, acting as  agent
    26  for  a  third  party  pursuant  to law, except as otherwise specifically
    27  provided by law, forty dollars. No fee shall be  collected  for  process
    28  served  on  behalf of [a] any state official, department, board, agency,
    29  authority, county, city, town or village or other political  subdivision
    30  of  the  state.  The fees paid the secretary of state shall be a taxable
    31  disbursement.
    32    § 21. The opening paragraph of subdivision  2  and  subdivision  3  of
    33  section  18 of the general associations law, as amended by chapter 13 of
    34  the laws of 1938, are amended and two new subdivisions 5 and 6 are added
    35  to read as follows:
    36    Every association doing business within this state shall file  in  the
    37  department  of  state  a  certificate in its associate name, signed [and
    38  acknowledged] by its president, or a vice-president,  or  secretary,  or
    39  treasurer,  or  managing director, or trustee, designating the secretary
    40  of state as an agent upon whom  process  in  any  action  or  proceeding
    41  against  the  association  may  be served within this state, and setting
    42  forth an address to which [the secretary of state] a person shall mail a
    43  copy of any process against the association which  may  be  served  upon
    44  [him]  the  secretary  of state pursuant to law.  Annexed to the certif-
    45  icate of designation shall be a statement, executed in the  same  manner
    46  as  the certificate is required to be executed under this section, which
    47  shall set forth:
    48    3.  Any association, from time to time,  may  change  the  address  to
    49  which  [the  secretary  of state] a person is directed to mail copies of
    50  process served on the secretary of state, by filing a statement to  that
    51  effect,  executed[,]  and  signed [and acknowledged] in like manner as a
    52  certificate of designation as herein provided.
    53    5.  Any designated post office address maintained by the secretary  of
    54  state  as  agent in any action or proceeding against the association for
    55  the purpose of mailing process shall be the post office address,  within
    56  or  without the state, to which a person shall mail process against such

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     1  association as required by this article.  Such  address  shall  continue
     2  until the filing of a certificate under this chapter directing the mail-
     3  ing to a different post office address.
     4    6.  "Process"  means judicial process and all orders, demands, notices
     5  or other papers required or permitted by law to be personally served  on
     6  an  association, for the purpose of acquiring jurisdiction of such asso-
     7  ciation in any action or proceeding, civil or  criminal,  whether  judi-
     8  cial,  administrative, arbitrative or otherwise, in this state or in the
     9  federal courts sitting in or for this state.
    10    § 22. Section 19 of the general associations law, as amended by  chap-
    11  ter 166 of the laws of 1991, is amended to read as follows:
    12    §  19.    Service of process. 1. Service of process against an associ-
    13  ation upon the secretary of state shall be made by mailing  the  process
    14  and  notice  of  service  thereof  by  certified  mail,  return  receipt
    15  requested, to such corporation or other business  entity,  at  the  post
    16  office  address,  on file in the department of state, specified for this
    17  purpose. On the same day that such process is mailed, a  duplicate  copy
    18  of  such  process  and proof of mailing shall be personally [delivering]
    19  delivered to and [leaving] left with [him] the secretary of state  or  a
    20  deputy  [secretary of state or an associate attorney, senior attorney or
    21  attorney in the corporation division of the  department  of  state],  so
    22  designated  [duplicate  copies  of  such  process  at  the office of the
    23  department of state in the city of Albany]. At the time of such  service
    24  the plaintiff shall pay a fee of forty dollars to the secretary of state
    25  which  shall  be a taxable disbursement. [If the cost of registered mail
    26  for transmitting a copy of the process  shall  exceed  two  dollars,  an
    27  additional  fee  equal  to  such excess shall be paid at the time of the
    28  service of such process. The secretary of state shall forthwith send  by
    29  registered  mail  one  of  such copies to the association at the address
    30  fixed for that purpose, as herein provided.]
    31    2. Proof of mailing shall be by  affidavit  of  compliance  with  this
    32  section.  Service  of process on such association shall be complete when
    33  the secretary of state is so served. If  the  action  or  proceeding  is
    34  instituted in a court of limited jurisdiction, service of process may be
    35  made in the manner provided in this section if the cause of action arose
    36  within  the  territorial jurisdiction of the court and the office of the
    37  defendant, as set forth in its statement filed pursuant to section eigh-
    38  teen of this [chapter] article, is within such territorial jurisdiction.
    39    § 23. Subdivision 2 of section 352-b of the general business  law,  as
    40  amended  by  chapter  252  of  the  laws  of 1983, is amended to read as
    41  follows:
    42    2. Service of such process upon the secretary of state shall  be  made
    43  by  personally  delivering to and leaving with him [or], a deputy secre-
    44  tary of state, or with a person authorized by the secretary of state  to
    45  receive  such service, a copy thereof at the office of the department of
    46  state in the city of  Albany,  and  such  service  shall  be  sufficient
    47  service  provided that notice of such service and a copy of such process
    48  are forthwith sent by the attorney general to such person,  partnership,
    49  corporation,  company,  trust or association, by registered or certified
    50  mail with return receipt requested, at his or its office as set forth in
    51  the "broker-dealer's statement", "salesman's statement"  or  "investment
    52  advisor's  statement" filed in the department of law pursuant to section
    53  three hundred fifty-nine-e or section three  hundred  fifty-nine-eee  of
    54  this article, or in default of the filing of such statement, at the last
    55  address  known to the attorney general. Service of such process shall be
    56  complete on receipt by the attorney general of a return receipt purport-

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     1  ing to be signed by the addressee or a person qualified to  receive  his
     2  or  its  registered  or certified mail, in accordance with the rules and
     3  customs of the post office department, or, if acceptance was refused  by
     4  the  addressee or his or its agent, on return to the attorney general of
     5  the original envelope bearing a notation by the postal authorities  that
     6  receipt thereof was refused.
     7    § 24. Section 686 of the general business law, as added by chapter 730
     8  of the laws of 1980, is amended to read as follows:
     9    § 686. Designation of secretary of state as agent for service of proc-
    10  ess;  service  of  process. Any person who shall offer to sell or sell a
    11  franchise in this state as  a  franchisor,  subfranchisor  or  franchise
    12  sales  agent shall be deemed to have irrevocably appointed the secretary
    13  of state as his or its agent  upon  whom  may  be  served  any  summons,
    14  complaint,  subpoena, subpoena duces tecum, notice, order or other proc-
    15  ess directed to such person, or any partner, principal, officer,  sales-
    16  man or director thereof, or his or its successor, administrator or exec-
    17  utor,  in  any  action,  investigation, or proceeding which arises under
    18  this article or a rule hereunder, with the same force and validity as if
    19  served personally on such person.  Service  of  such  process  upon  the
    20  secretary of state shall be made by personally delivering to and leaving
    21  with  [him]  the secretary of state or a deputy [secretary of state], or
    22  with any person authorized by the secretary of  state  to  receive  such
    23  service,  a  copy  thereof at the office of the department of state, and
    24  such service shall be sufficient provided that notice  of  such  service
    25  and  a copy of such process are sent forthwith by the department to such
    26  person, by registered or certified mail with return  receipt  requested,
    27  at  his  address as set forth in the application for registration of his
    28  offering prospectus or in  the  registered  offering  prospectus  itself
    29  filed with the department of law pursuant to this article, or in default
    30  of  the  filing  of  such application or prospectus, at the last address
    31  known to the department. Service of such process shall be complete  upon
    32  receipt by the department of a return receipt purporting to be signed by
    33  the  addressee or a person qualified to receive his or its registered or
    34  certified mail, in accordance with the rules and  customs  of  the  post
    35  office  department,  or,  if  acceptance was refused or unclaimed by the
    36  addressee or his or its agent, or if the addressee moved without leaving
    37  a forwarding address, upon return to  the  department  of  the  original
    38  envelope bearing a notation by the postal authorities that receipt ther-
    39  eof was refused or that such mail was otherwise undeliverable.
    40    §  25.  Paragraph  4  of subdivision (e) of section 203 of the limited
    41  liability company law, as added by chapter 470 of the laws of  1997,  is
    42  amended to read as follows:
    43    (4)  a  designation  of the secretary of state as agent of the limited
    44  liability company upon whom process against it may  be  served  and  the
    45  post  office address, within or without this state, to which [the secre-
    46  tary of state] a person shall mail a copy of  any  process  against  the
    47  limited  liability  company  served  upon  [him or her] the secretary of
    48  state;
    49    § 26. Paragraph 4 of subdivision (a) of section  206  of  the  limited
    50  liability  company law, as amended by chapter 44 of the laws of 2006, is
    51  amended to read as follows:
    52    (4) a statement that the secretary of state  has  been  designated  as
    53  agent  of the limited liability company upon whom process against it may
    54  be served and the post office address, within or without this state,  to
    55  which [the secretary of state] a person shall mail a copy of any process
    56  against it served upon [him or her] the secretary of state;

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     1    §  27.  Paragraph  6  of subdivision (d) of section 211 of the limited
     2  liability company law is amended to read as follows:
     3    (6)  a  change  in  the post office address to which [the secretary of
     4  state] a person shall mail a copy of any  process  against  the  limited
     5  liability  company  served  upon  [him or her] the secretary of state if
     6  such change is made other than pursuant to section three hundred one  of
     7  this chapter;
     8    §  28. Section 211-A of the limited liability company law, as added by
     9  chapter 448 of the laws of 1998, is amended to read as follows:
    10    § 211-A. Certificate of change. (a) A limited  liability  company  may
    11  amend  its  articles of organization from time to time to (i) specify or
    12  change the location of the  limited  liability  company's  office;  (ii)
    13  specify  or  change  the  post office address to which [the secretary of
    14  state] a person shall mail a copy of any  process  against  the  limited
    15  liability  company  served  upon [him] the secretary of state; and (iii)
    16  make, revoke or change the designation of a registered agent, or specify
    17  or change the address of the registered agent.  Any  one  or  more  such
    18  changes  may  be  accomplished  by  filing a certificate of change which
    19  shall be entitled "Certificate of  Change  of ....... (name  of  limited
    20  liability  company) under section 211-A of the Limited Liability Company
    21  Law" and shall be signed and delivered to the department  of  state.  It
    22  shall set forth:
    23    (1)  the  name  of  the  limited liability company, and if it has been
    24  changed, the name under which it was formed;
    25    (2) the date the articles of organization were filed by the department
    26  of state; and
    27    (3) each change effected thereby.
    28    (b) A certificate of change which changes only the post office address
    29  to which [the secretary of state] a person shall  mail  a  copy  of  any
    30  process  against  a  limited  liability company served upon [him or] the
    31  secretary of state and/or the address of the registered agent,  provided
    32  such  address  being  changed  is  the address of a person, partnership,
    33  limited liability company or corporation whose address, as agent, is the
    34  address to be changed or who has been designated as registered agent for
    35  such limited liability company  may  be  signed  and  delivered  to  the
    36  department  of  state by such agent. The certificate of change shall set
    37  forth the statements required under subdivision  (a)  of  this  section;
    38  that  a notice of the proposed change was mailed to the domestic limited
    39  liability company by the party signing the  certificate  not  less  than
    40  thirty days prior to the date of delivery to the department of state and
    41  that  such  domestic limited liability company has not objected thereto;
    42  and that the party signing the certificate is the agent of such  limited
    43  liability  company to whose address [the secretary of state] a person is
    44  required to mail copies of process served on the secretary of  state  or
    45  the  registered  agent,  if  such  be the case. A certificate signed and
    46  delivered under this subdivision shall not be deemed to effect a  change
    47  of  location  of  the  office  of the limited liability company in whose
    48  behalf such certificate is filed.
    49    § 29. Paragraph 2 of subdivision (b) of section  213  of  the  limited
    50  liability company law is amended to read as follows:
    51    (2)  to  change  the  post  office  address to which [the secretary of
    52  state] a person shall mail a copy of any  process  against  the  limited
    53  liability company served upon [him or her] the secretary of state; and
    54    § 30. Subdivisions (c) and (e) of section 301 of the limited liability
    55  company  law, subdivision (e) as amended by section 5 of part S of chap-
    56  ter 59 of the laws of 2015, are amended to read as follows:

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     1    (c) Any designated post office address maintained by the secretary  of
     2  state as agent of a domestic limited liability company or foreign limit-
     3  ed  liability  company  for  the purpose of mailing process shall be the
     4  post office address, within or without the  state,  to  which  a  person
     5  shall mail process against such limited liability company as required by
     6  this  article. Any designated post office address to which the secretary
     7  of state or a person shall mail a copy of process served  upon  [him  or
     8  her]  the  secretary  of  state as agent of a domestic limited liability
     9  company or a foreign limited liability company shall continue until  the
    10  filing  of  a  certificate under this chapter directing the mailing to a
    11  different post office address.
    12    [(e)] (d) (1) Except as otherwise provided in this subdivision,  every
    13  limited liability company to which this chapter applies, shall biennial-
    14  ly  in  the  calendar month during which its articles of organization or
    15  application for authority were filed, or effective date thereof if stat-
    16  ed, file on forms prescribed by the  secretary  of  state,  a  statement
    17  setting  forth  the  post office address within or without this state to
    18  which [the secretary of state] a person shall mail a copy of any process
    19  accepted against it served upon [him or her]  the  secretary  of  state.
    20  Such  address  shall  supersede  any  previous  address on file with the
    21  department of state for this purpose.
    22    (2) The commissioner of taxation and  finance  and  the  secretary  of
    23  state  may  agree  to  allow  limited liability companies to include the
    24  statement specified in paragraph one of this subdivision on tax  reports
    25  filed  with  the  department of taxation and finance in lieu of biennial
    26  statements and in a manner prescribed by the  commissioner  of  taxation
    27  and  finance.    If  this agreement is made, starting with taxable years
    28  beginning on or after January first, two thousand sixteen, each  limited
    29  liability  company required to file the statement specified in paragraph
    30  one of this subdivision that is subject to the  filing  fee  imposed  by
    31  paragraph  three of subsection (c) of section six hundred fifty-eight of
    32  the tax law shall provide such statement  annually  on  its  filing  fee
    33  payment  form  filed with the department of taxation and finance in lieu
    34  of filing a statement under this section with the department  of  state.
    35  However,  each  limited  liability  company required to file a statement
    36  under this section must continue to file the biennial statement required
    37  by this section with the department of state until the limited liability
    38  company in fact has filed a filing fee payment form with the  department
    39  of  taxation  and  finance that includes all required information. After
    40  that time, the limited liability company shall continue to provide annu-
    41  ally the statement specified in paragraph one of this subdivision on its
    42  filing fee payment form in lieu of the biennial  statement  required  by
    43  this subdivision.
    44    (3) If the agreement described in paragraph two of this subdivision is
    45  made,  the  department  of  taxation  and  finance  shall deliver to the
    46  department of state the statement specified in  paragraph  one  of  this
    47  subdivision  contained  on  filing  fee payment forms. The department of
    48  taxation and finance must, to the  extent  feasible,  also  include  the
    49  current name of the limited liability company, department of state iden-
    50  tification  number  for such limited liability company, the name, signa-
    51  ture and capacity of the  signer  of  the  statement,  name  and  street
    52  address of the filer of the statement, and the email address, if any, of
    53  the filer of the statement.
    54    §  31.  Paragraphs  2  and  3 of subdivision (a), subparagraph (ii) of
    55  paragraph 2 and subparagraph (ii) of paragraph 3 of subdivision  (e)  of

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     1  section  301-A of the limited liability company law, as added by chapter
     2  448 of the laws of 1998, are amended to read as follows:
     3    (2)  that  the address of the party has been designated by the limited
     4  liability company as the post office address to which [the secretary  of
     5  state] a person shall mail a copy of any process served on the secretary
     6  of  state  as agent for such limited liability company, such address and
     7  that such party wishes to resign.
     8    (3) that sixty days prior to the filing of the certificate of resigna-
     9  tion or receipt of process with the department of state  the  party  has
    10  sent  a copy of the certificate of resignation for receipt of process by
    11  registered or certified mail to the address of the registered  agent  of
    12  the designated limited liability company, if other than the party filing
    13  the  certificate  of  resignation[,]  for  receipt of process, or if the
    14  [resigning] designating limited  liability  company  has  no  registered
    15  agent,  then  to  the  last  address of the designated limited liability
    16  company known to the party, specifying the address to which the copy was
    17  sent. If there is no registered agent and no known address of the desig-
    18  nating limited liability company, the party shall attach an affidavit to
    19  the certificate stating that a diligent but unsuccessful search was made
    20  by the party to locate the limited liability  company,  specifying  what
    21  efforts were made.
    22    (ii)  sent  by or on behalf of the plaintiff to such limited liability
    23  company by registered or certified mail with return receipt requested to
    24  the last address of such limited liability company known to  the  plain-
    25  tiff.
    26    (ii)  Where  service  of  a copy of process was effected by mailing in
    27  accordance with this section, proof of service shall be by affidavit  of
    28  compliance  with  this  section filed, together with the process, within
    29  thirty days after receipt of the return receipt signed  by  the  limited
    30  liability company or other official proof of delivery or of the original
    31  envelope  mailed.  If a copy of the process is mailed in accordance with
    32  this section, there shall be filed  with  the  affidavit  of  compliance
    33  either  the  return  receipt signed by such limited liability company or
    34  other official proof of delivery, if acceptance was refused by  it,  the
    35  original envelope with a notation by the postal authorities that accept-
    36  ance  was  refused.  If  acceptance was refused a copy of the notice and
    37  process together with notice of the mailing by registered  or  certified
    38  mail  and  refusal  to  accept  shall  be  promptly sent to such limited
    39  liability company at the same address by ordinary mail and the affidavit
    40  of compliance shall so state. Service of process shall be  complete  ten
    41  days  after  such  papers  are  filed  with  the clerk of the court. The
    42  refusal to accept delivery of the registered or  certified  mail  or  to
    43  sign the return receipt shall not affect the validity of the service and
    44  such  limited  liability  company  refusing to accept such registered or
    45  certified mail shall be charged with knowledge of the contents thereof.
    46    § 32. Subdivision (a) of section 303 of the limited liability  company
    47  law,  as  relettered  by  chapter 341 of the laws of 1999, is amended to
    48  read as follows:
    49    (a) Service of process on the secretary of state as agent of a  domes-
    50  tic limited liability company [or], authorized foreign limited liability
    51  company,  or  other business entity that has designated the secretary of
    52  state as agent for service of process pursuant to article  ten  of  this
    53  chapter,  shall  be  made  by  mailing the process and notice of service
    54  thereof by certified mail, return receipt  requested,  to  such  limited
    55  liability  company or other business entity, at the post office address,
    56  on file in the department of state, specified for this purpose.  On  the

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     1  same day as such process is mailed, a duplicate copy of such process and
     2  proof of mailing shall be [made by] personally [delivering] delivered to
     3  and  [leaving] left with the secretary of state or his or her deputy, or
     4  with  any  person  authorized  by the secretary of state to receive such
     5  service, at the office of the department of state in the city of Albany,
     6  [duplicate copies of such process]  together  with  the  statutory  fee,
     7  which fee shall be a taxable disbursement.  Proof of mailing shall be by
     8  affidavit  of  compliance  with this section. Service of process on such
     9  limited liability company or other business  entity  shall  be  complete
    10  when  the secretary of state is so served. [The secretary of state shall
    11  promptly send one of such  copies  by  certified  mail,  return  receipt
    12  requested,  to such limited liability company at the post office address
    13  on file in the department of state specified for that purpose.]
    14    § 33. Section 305 of the limited liability company law is  amended  to
    15  read as follows:
    16    §  305.  Records  of  process  served on the secretary of state.   The
    17  [secretary of state] department of state shall keep  a  record  of  each
    18  process served upon the secretary of state under this chapter, including
    19  the  date of such service [and the action of the secretary of state with
    20  reference thereto]. It shall, upon request made within ten years of such
    21  service, issue a certificate under its seal certifying as to the receipt
    22  of the process by an authorized person,  the  date  and  place  of  such
    23  service  and  the  receipt of the statutory fee. Process served upon the
    24  secretary of state under this chapter shall be destroyed by the  depart-
    25  ment of state after a period of ten years from such service.
    26    §  34.  Paragraph  4  of subdivision (a) of section 802 of the limited
    27  liability company law, as amended by chapter 470 of the laws of 1997, is
    28  amended to read as follows:
    29    (4) a designation of the secretary of state as  its  agent  upon  whom
    30  process  against it may be served and the post office address, within or
    31  without this state, to which [the secretary of  state]  a  person  shall
    32  mail  a  copy  of  any  process  against it served upon [him or her] the
    33  secretary of state;
    34    § 35. Section 804-A of the limited liability company law, as added  by
    35  chapter 448 of the laws of 1998, is amended to read as follows:
    36    § 804-A. Certificate of change. (a) A foreign limited liability compa-
    37  ny  may  amend  its  application  for authority from time to time to (i)
    38  specify or change  the  location  of  the  limited  liability  company's
    39  office;  (ii)  specify  or  change the post office address to which [the
    40  secretary of state] a person shall mail a copy of  any  process  against
    41  the  limited liability company served upon [him] the secretary of state;
    42  and (iii) to make, revoke or change  the  designation  of  a  registered
    43  agent,  or  to  specify or change the address of a registered agent. Any
    44  one or more such changes may be accomplished by filing a certificate  of
    45  change  which shall be entitled "Certificate of Change of ........ (name
    46  of limited liability company) under section 804-A of the Limited Liabil-
    47  ity Company Law" and shall be signed and delivered to the department  of
    48  state. It shall set forth:
    49    (1) the name of the foreign limited liability company and, if applica-
    50  ble, the fictitious name the limited liability company has agreed to use
    51  in this state pursuant to section eight hundred two of this article;
    52    (2) the date its application for authority was filed by the department
    53  of state; and
    54    (3) each change effected thereby[,].
    55    (b) A certificate of change which changes only the post office address
    56  to  which  [the  secretary  of  state] a person shall mail a copy of any

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     1  process against a foreign limited liability company served upon [him or]
     2  the secretary of state and/or  the  address  of  the  registered  agent,
     3  provided such address being changed is the address of a person, partner-
     4  ship [or], corporation or other limited liability company whose address,
     5  as  agent,  is  the address to be  changed or who has been designated as
     6  registered agent for such limited liability company may  be  signed  and
     7  delivered  to  the department of state by such agent. The certificate of
     8  change shall set forth the statements required under subdivision (a)  of
     9  this  section;  that  a  notice of the proposed change was mailed to the
    10  foreign limited liability company by the party signing  the  certificate
    11  not  less  than thirty days prior to the date of delivery to the depart-
    12  ment of state and that such foreign limited liability  company  has  not
    13  objected  thereto;  and  that  the  party signing the certificate is the
    14  agent of such foreign limited liability company to  whose  address  [the
    15  secretary  of  state]  a  person  is  required to mail copies of process
    16  served on the secretary of state or the registered agent, if such be the
    17  case. A certificate signed and delivered under  this  subdivision  shall
    18  not  be  deemed  to  effect  a  change  of location of the office of the
    19  foreign limited liability company in whose behalf  such  certificate  is
    20  filed.
    21    §  36.  Paragraph  6  of subdivision (b) of section 806 of the limited
    22  liability company law is amended to read as follows:
    23    (6) a post office address, within or without this state, to which [the
    24  secretary of state] a person shall mail a copy of any process against it
    25  served upon [him or her] the secretary of state.
    26    § 37. Paragraph 11 of subdivision (a) of section 1003 of  the  limited
    27  liability company law, as amended by chapter 374 of the laws of 1998, is
    28  amended to read as follows:
    29    (11)  a  designation  of the secretary of state as its agent upon whom
    30  process against it may be served in the  manner  set  forth  in  article
    31  three  of  this  chapter in any action or special proceeding, and a post
    32  office address, within or without this state, to which [the secretary of
    33  state] a person shall mail a copy of any process  served  upon  [him  or
    34  her]  the  secretary  of state. Such post office address shall supersede
    35  any prior address designated as the address to which  process  shall  be
    36  mailed;
    37    §  38.  Clause  (iv) of subparagraph (A) of paragraph 2 of subdivision
    38  (c) of section 1203 of the limited liability company law, as amended  by
    39  chapter 44 of the laws of 2006, is amended to read as follows:
    40    (iv)  a  statement  that the secretary of state has been designated as
    41  agent of the professional service limited liability  company  upon  whom
    42  process  against it may be served and the post office address, within or
    43  without this state, to which [the secretary of  state]  a  person  shall
    44  mail  a  copy  of  any  process  against it served upon [him or her] the
    45  secretary of state;
    46    § 39. Paragraph 6 of subdivision (a) and subparagraph 5  of  paragraph
    47  (i)  of subdivision (d) of section 1306 of the limited liability company
    48  law, subparagraph 5 of paragraph (i) of subdivision (d)  as  amended  by
    49  chapter 44 of the laws of 2006, are amended to read as follows:
    50    (6)  a  designation  of  the secretary of state as its agent upon whom
    51  process against it may be served and the post office address, within  or
    52  without  this  state,  to  which [the secretary of state] a person shall
    53  mail a copy of any process against it  served  upon  [him  or  her]  the
    54  secretary of state; and
    55    (5)  a  statement  that  the secretary of state has been designated as
    56  agent of the foreign professional service limited liability company upon

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     1  whom process against it may be served and the post office address, with-
     2  in or without this state, to which [the secretary  of  state]  a  person
     3  shall mail a copy of any process against it served upon [him or her] the
     4  secretary of state;
     5    §  40.  Paragraph (d) of section 304 of the not-for-profit corporation
     6  law, as amended by chapter 358 of the laws of 2015, is amended  to  read
     7  as follows:
     8    (d)  Any designated post office address maintained by the secretary of
     9  state as agent of a domestic not-for-profit corporation or foreign  not-
    10  for-profit  corporation  for the purpose of mailing process shall be the
    11  post office address, within or without the  state,  to  which  a  person
    12  shall mail process against such corporation as required by this article.
    13  Any  designated [post-office] post office address to which the secretary
    14  of state or a person shall mail a copy of process served  upon  [him  or
    15  her]  the  secretary  of state as agent of a domestic corporation formed
    16  under article four of this chapter or foreign corporation, shall contin-
    17  ue until the filing of a certificate under this  chapter  directing  the
    18  mailing to a different [post-office] post office address.
    19    §  41.  Paragraph (a) of section 305 of the not-for-profit corporation
    20  law, as amended by chapter 549 of the laws of 2013, is amended  to  read
    21  as follows:
    22    (a)  Every  domestic corporation or authorized foreign corporation may
    23  designate a registered agent in this state  upon  whom  process  against
    24  such  corporation may be served. The agent shall be a natural person who
    25  is a resident of or has a business address in this state or  a  domestic
    26  corporation  or  foreign corporation of any kind formed[,] or authorized
    27  to do business in this state, under this  chapter  or  under  any  other
    28  statute  of  this  state,  or  a domestic limited liability company or a
    29  foreign limited liability company authorized  to  do  business  in  this
    30  state.
    31    §  42.  Paragraph (b) of section 306 of the not-for-profit corporation
    32  law, as amended by chapter 23 of the laws of 2014, is amended to read as
    33  follows:
    34    (b) Service of process on the secretary of state as agent of a  domes-
    35  tic  corporation formed under article four of this chapter or an author-
    36  ized foreign corporation shall be made by mailing the process and notice
    37  of service thereof by certified mail, return receipt requested, to  such
    38  corporation  or  other  business  entity, at the post office address, on
    39  file in the department of state, specified for this purpose. On the same
    40  day that such process is mailed, a duplicate copy of  such  process  and
    41  proof  of  mailing  shall  be  personally  [delivering] delivered to and
    42  [leaving] left with the secretary of state or his or her deputy, or with
    43  any person authorized by the secretary of state to receive such service,
    44  at the office of the department of state in the city of Albany,  [dupli-
    45  cate  copies of such process] together with the statutory fee, which fee
    46  shall be a taxable disbursement.  Proof of mailing shall be by affidavit
    47  of compliance with this section. Service of process on such  corporation
    48  or  other  business entity shall be complete when the secretary of state
    49  is so served.  [The secretary of state shall promptly send one  of  such
    50  copies by certified mail, return receipt requested, to such corporation,
    51  at  the  post office address, on file in the department of state, speci-
    52  fied for the purpose.] If a domestic corporation  formed  under  article
    53  four  of  this  chapter or an authorized foreign corporation has no such
    54  address on file in the department of  state,  the  [secretary  of  state
    55  shall  so  mail  such]  duplicate copy of the process shall be mailed to

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     1  such corporation at the address of its office within this state on  file
     2  in the department.
     3    §  43.  Subparagraph 6 of paragraph (a) of section 402 of the not-for-
     4  profit corporation law, as added by chapter 564 of the laws of 1981  and
     5  as  renumbered by chapter 132 of the laws of 1985, is amended to read as
     6  follows:
     7    (6) A designation of the secretary of state as  agent  of  the  corpo-
     8  ration  upon  whom  process against it may be served and the post office
     9  address, within or without this state, to which [the secretary of state]
    10  a person shall mail a copy of any process against it served  upon  [him]
    11  the secretary of state.
    12    §  44.  Subparagraph 7 of paragraph (b) of section 801 of the not-for-
    13  profit corporation law, as amended by chapter 438 of the laws  of  1984,
    14  is amended to read as follows:
    15    (7)  To specify or change the post office address to which [the secre-
    16  tary of state] a person shall mail a copy of  any  process  against  the
    17  corporation served upon [him] the secretary of state.
    18    §  45.  Subparagraph 2 of paragraph (c) of section 802 of the not-for-
    19  profit corporation law, as amended by chapter 186 of the laws  of  1983,
    20  is amended to read as follows:
    21    (2)  To specify or change the post office address to which [the secre-
    22  tary of state] a person shall mail a copy of  any  process  against  the
    23  corporation served upon [him] the secretary of state.
    24    §  46.  Subparagraph 6 of paragraph (a) of section 803 of the not-for-
    25  profit corporation law, as amended by chapter 23 of the laws of 2014, is
    26  amended to read as follows:
    27    (6) A designation of the secretary of state as  agent  of  the  corpo-
    28  ration  upon  whom  process against it may be served and the post office
    29  address,   within or without this state,  to  which  [the  secretary  of
    30  state]  a person shall mail a copy of any process against it served upon
    31  the secretary of state.
    32    § 47. Paragraph (b) of section 803-A of the not-for-profit corporation
    33  law, as amended by chapter 172 of the laws of 1999, is amended  to  read
    34  as follows:
    35    (b) A certificate of change which changes only the post office address
    36  to  which  [the  secretary  of  state] a person shall mail a copy of any
    37  process against the corporation served upon [him or]  the  secretary  of
    38  state  and/or the address of the registered agent, provided such address
    39  being changed is the address of a person, partnership, limited liability
    40  company or other corporation whose address, as agent, is the address  to
    41  be  changed  or  who  has  been  designated as registered agent for such
    42  corporation, may be signed and delivered to the department of  state  by
    43  such  agent.  The  certificate  of change shall set forth the statements
    44  required under subparagraphs (1), (2) and (3) of paragraph (a)  of  this
    45  section;  that  a notice of the proposed change was mailed to the corpo-
    46  ration by the party signing the certificate not less  than  thirty  days
    47  prior  to  the  date  of delivery to the department and that such corpo-
    48  ration has not objected thereto; and that the party signing the  certif-
    49  icate  is  the agent of such corporation to whose address [the secretary
    50  of state] a person is required to mail copies of any process against the
    51  corporation served upon [him] the secretary of state or  the  registered
    52  agent,  if  such  be  the case. A certificate signed and delivered under
    53  this paragraph shall not be deemed to effect a change of location of the
    54  office of the corporation in whose behalf such certificate is filed.

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     1    § 48. Clause (E) of subparagraph 2 of paragraph (d) of section 906  of
     2  the  not-for-profit  corporation  law, as amended by chapter 1058 of the
     3  laws of 1971, is amended to read as follows:
     4    (E)  A  designation  of  the secretary of state as its agent upon whom
     5  process against it may be served in the manner set  forth  in  paragraph
     6  (b)  of  section  306  (Service  of  process),  in any action or special
     7  proceeding described in [subparagraph] clause (D) of  this  subparagraph
     8  and  a  post office address, within or without this state, to which [the
     9  secretary of state] a person shall mail a copy of the  process  in  such
    10  action or special proceeding served upon the secretary of state.
    11    §  49. Clause (F) of subparagraph 2 of paragraph (d) of section 908 of
    12  the not-for-profit corporation law is amended to read as follows:
    13    (F) A designation of the secretary of state as  his  agent  upon  whom
    14  process  against  it  may be served in the manner set forth in paragraph
    15  (b) of section 306 (Service  of  process),  in  any  action  or  special
    16  proceeding  described  in [subparagraph] clause (D) of this subparagraph
    17  and a post office address, within or without the state,  to  which  [the
    18  secretary  of  state]  a person shall mail a copy of the process in such
    19  action or special proceeding served upon by the secretary of state.
    20    § 50. Subparagraph 6 of paragraph (a) of section 1304 of the  not-for-
    21  profit  corporation  law,  as  renumbered  by chapter 590 of the laws of
    22  1982, is amended to read as follows:
    23    (6) A designation of the secretary of state as  its  agent  upon  whom
    24  process  against it may be served and the post office address, within or
    25  without this state, to which [the secretary of  state]  a  person  shall
    26  mail a copy of any process against it served upon [him] the secretary of
    27  state.
    28    §  51. Subparagraph 7 of paragraph (a) of section 1308 of the not-for-
    29  profit corporation law, as renumbered by chapter  186  of  the  laws  of
    30  1983, is amended to read as follows:
    31    (7)  To specify or change the post office address to which [the secre-
    32  tary of state] a person shall mail a copy  of  any  process  against  it
    33  served upon [him] the secretary of state.
    34    §  52.  Subparagraph  2  of paragraph (a) and paragraph (c) of section
    35  1310 of the not-for-profit corporation law, paragraph (c) as amended  by
    36  chapter 172 of the laws of 1999, are amended to read as follows:
    37    (2)  To specify or change the post office address to which [the secre-
    38  tary of state] a person shall mail a copy  of  any  process  against  it
    39  served upon [him] the secretary of state.
    40    (c) A certificate of change of application for authority which changes
    41  only  the post office address to which [the secretary of state] a person
    42  shall mail a copy of any process against an  authorized  foreign  corpo-
    43  ration  served upon [him or] the secretary of state and/or which changes
    44  the address of its  registered  agent,  provided  such  address  is  the
    45  address  of  a  person,  partnership, limited liability company or other
    46  corporation whose address, as agent, is the address to be changed or who
    47  has been designated as registered  agent  for  such  authorized  foreign
    48  corporation,  may  be signed and delivered to the department of state by
    49  such agent. The certificate of change of application for authority shall
    50  set forth the statements required under subparagraphs (1), (2), (3)  and
    51  (4)  of  paragraph  (b)  of  this section; that a notice of the proposed
    52  change was mailed by the party signing the certificate to the authorized
    53  foreign corporation not less than thirty  days  prior  to  the  date  of
    54  delivery  to  the  department and that such corporation has not objected
    55  thereto; and that the party signing the certificate is the agent of such
    56  foreign corporation to whose address [the secretary of state]  a  person

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     1  is  required  to mail copies of process served on the secretary of state
     2  or the registered agent, if such be the case. A certificate  signed  and
     3  delivered under this paragraph shall not be deemed to effect a change of
     4  location  of  the office of the corporation in whose behalf such certif-
     5  icate is filed.
     6    § 53. Subparagraph 6 of paragraph (a) and subparagraph 4 of  paragraph
     7  (d) of section 1311 of the not-for-profit corporation law are amended to
     8  read as follows:
     9    (6) A post office address, within or without this state, to which [the
    10  secretary of state] a person shall mail a copy of any process against it
    11  served upon [him] the secretary of state.
    12    (4)  The changed post office address, within or without this state, to
    13  which [the secretary of state] a person shall mail a copy of any process
    14  against it served upon [him] the secretary of state.
    15    § 54. Section 1312 of the not-for-profit corporation law,  as  amended
    16  by chapter 375 of the laws of 1998, is amended to read as follows:
    17  § 1312. Termination of existence.
    18    When  an  authorized foreign corporation is dissolved or its authority
    19  or existence is otherwise terminated or cancelled in the jurisdiction of
    20  its incorporation or when such foreign corporation  is  merged  into  or
    21  consolidated  with  another  foreign  corporation,  a certificate of the
    22  secretary of state, or official performing the equivalent function as to
    23  corporate records, of the jurisdiction of incorporation of such  foreign
    24  corporation attesting to the occurrence of any such event or a certified
    25  copy of an order or decree of a court of such jurisdiction directing the
    26  dissolution  of  such foreign corporation, the termination of its exist-
    27  ence or the cancellation of its authority  shall  be  delivered  to  the
    28  department  of  state.    The filing of the certificate, order or decree
    29  shall have the same effect as the filing of a certificate  of  surrender
    30  of authority under section 1311 (Surrender of authority).  The secretary
    31  of  state  shall  continue as agent of the foreign corporation upon whom
    32  process against it may be served in the manner set  forth  in  paragraph
    33  (b)  of  section  306  (Service  of  process),  in any action or special
    34  proceeding based upon  any  liability  or  obligation  incurred  by  the
    35  foreign  corporation  within  this  state  prior  to  the filing of such
    36  certificate, order or decree and [he] the person  serving  such  process
    37  shall  promptly cause a copy of any such process to be mailed by [regis-
    38  tered] certified mail, return receipt requested, to such foreign  corpo-
    39  ration  at  the  post office address on file in his office specified for
    40  such purpose.  The post office address may be  changed  by  signing  and
    41  delivering  to  the  department of state a certificate of change setting
    42  forth the statements required under section 1310 (Certificate of change,
    43  contents) to effect a change in the post office address  under  subpara-
    44  graph  [(a)  (4)]  (7)  of  paragraph (a) of section 1308 (Amendments or
    45  changes).
    46    § 55. Subdivision (c) of section 121-104 of the  partnership  law,  as
    47  added by chapter 950 of the laws of 1990, is amended to read as follows:
    48    (c)  Any designated post office address maintained by the secretary of
    49  state as agent of a domestic  limited  partnership  or  foreign  limited
    50  partnership  for the purpose of mailing process shall be the post office
    51  address, within or without the state, to which a person shall mail proc-
    52  ess against such limited partnership as required by  this  article.  Any
    53  designated  post  office  address  to  which the secretary of state or a
    54  person shall mail a copy of process served upon [him] the  secretary  of
    55  state  as  agent  of  a  domestic limited partnership or foreign limited

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     1  partnership shall continue until the filing of a certificate under  this
     2  article directing the mailing to a different post office address.
     3    § 56. Paragraphs 1, 2 and 3 of subdivision (a) of section 121-104-A of
     4  the  partnership  law,  as added by chapter 448 of the laws of 1998, are
     5  amended to read as follows:
     6    (1) the name of the limited partnership and the date that  its  [arti-
     7  cles  of organization] certificate of limited partnership or application
     8  for authority was filed by the department of state.
     9    (2) that the address of the party has been designated by  the  limited
    10  partnership as the post office address to which [the secretary of state]
    11  a  person  shall  mail  a copy of any process served on the secretary of
    12  state as agent for such limited partnership, and that such party  wishes
    13  to resign.
    14    (3) that sixty days prior to the filing of the certificate of resigna-
    15  tion  for  receipt of process with the department of state the party has
    16  sent a copy of the certificate of resignation for receipt of process  by
    17  registered  or  certified mail to the address of the registered agent of
    18  the [designated] designating limited  partnership,  if  other  than  the
    19  party  filing  the certificate of resignation[,] for receipt of process,
    20  or if the [resigning] designating limited partnership has no  registered
    21  agent,  then to the last address of the [designated] designating limited
    22  partnership, known to the party, specifying the  address  to  which  the
    23  copy  was  sent. If there is no registered agent and no known address of
    24  the designating limited partnership the party shall attach an  affidavit
    25  to  the  certificate stating that a diligent but unsuccessful search was
    26  made by the party to locate the  limited  partnership,  specifying  what
    27  efforts were made.
    28    §  57.  Subdivision  (a) of section 121-105 of the partnership law, as
    29  added by chapter 950 of the laws of 1990, is amended to read as follows:
    30    (a) In addition to the designation of the  secretary  of  state,  each
    31  limited partnership or authorized foreign limited partnership may desig-
    32  nate  a  registered agent upon whom process against the limited partner-
    33  ship may be served. The agent must be (i) a  natural  person  who  is  a
    34  resident  of  this  state  or has a business address in this state, [or]
    35  (ii) a domestic corporation or a foreign corporation  authorized  to  do
    36  business  in  this  state,  or a domestic limited liability company or a
    37  foreign limited liability company authorized  to  do  business  in  this
    38  state.
    39    §  58.  Subdivisions (a) and (c) of section 121-109 of the partnership
    40  law, as added by chapter 950 of the laws of 1990 and  as  relettered  by
    41  chapter 341 of the laws of 1999, are amended to read as follows:
    42    (a)  Service of process on the secretary of state as agent of a domes-
    43  tic or authorized foreign limited partnership, or other business  entity
    44  that has designated the secretary of state as agent for service of proc-
    45  ess pursuant to this chapter, shall be made [as follows:
    46    (1) By] by mailing the process and notice of service of process pursu-
    47  ant to this section by certified mail, return receipt requested, to such
    48  domestic  or  authorized  foreign  limited partnership or other business
    49  entity, at the post office address, on file in the department of  state,
    50  specified  for that purpose. On the same day as the process is mailed, a
    51  duplicate copy of such process and proof of mailing shall be  personally
    52  [delivering]  delivered  to  and  [leaving]  left  with [him or his] the
    53  secretary of state or a deputy, or with any  person  authorized  by  the
    54  secretary of state to receive such service, at the office of the depart-
    55  ment  of state in the city of Albany, [duplicate copies of such process]
    56  together with the statutory fee, which fee shall be a taxable  disburse-

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     1  ment.  Proof  of  mailing  shall be by affidavit of compliance with this
     2  section. Service of process on such limited partnership or  other  busi-
     3  ness entity shall be complete when the secretary of state is so served.
     4    [(2)  The  service  on  the  limited  partnership is complete when the
     5  secretary of state is so served.
     6    (3) The secretary of state shall promptly send one of such  copies  by
     7  certified mail, return receipt requested, addressed to the limited part-
     8  nership  at the post office address, on file in the department of state,
     9  specified for that purpose.]
    10    (c) The [secretary of state] department of state shall keep  a  record
    11  of  all process served upon [him] it under this section and shall record
    12  therein the date of such service [and his action with  reference  there-
    13  to]. It shall, upon request made within ten years of such service, issue
    14  a certificate under its seal certifying as to the receipt of the process
    15  by  an  authorized  person,  the  date and place of such service and the
    16  receipt of the statutory fee. Process served upon the secretary of state
    17  under this chapter shall be destroyed by him after a period of ten years
    18  from such service.
    19    § 59. Paragraph 3 of subdivision (a) and subparagraph 4  of  paragraph
    20  (i)  of subdivision (c) of section 121-201 of the partnership law, para-
    21  graph 3 of subdivision (a) as amended by chapter  264  of  the  laws  of
    22  1991,  and subparagraph 4 of paragraph (i) of subdivision (c) as amended
    23  by chapter 44 of the laws of 2006, are amended to read as follows:
    24    (3) a designation of the secretary of state as agent  of  the  limited
    25  partnership  upon  whom  process  against  it may be served and the post
    26  office address, within or without this state, to which [the secretary of
    27  state] a person shall mail a copy of any process against it served  upon
    28  [him] the secretary of state;
    29    (4)  a  statement  that  the secretary of state has been designated as
    30  agent of the limited partnership upon whom process  against  it  may  be
    31  served  and  the  post  office address, within or without this state, to
    32  which [the secretary of state] a person shall mail a copy of any process
    33  against it served upon [him or her] the secretary of state;
    34    § 60. Paragraph 4 of subdivision (b) of section 121-202 of  the  part-
    35  nership  law,  as amended by chapter 576 of the laws of 1994, is amended
    36  to read as follows:
    37    (4) a change in the name of the limited partnership, or  a  change  in
    38  the post office address to which [the secretary of state] a person shall
    39  mail  a  copy  of  any process against the limited partnership served on
    40  [him] the secretary of state, or a change in the name or address of  the
    41  registered  agent, if such change is made other than pursuant to section
    42  121-104 or 121-105 of this article.
    43    § 61. Section 121-202-A of the partnership law, as  added  by  chapter
    44  448  of  the  laws of 1998, paragraph 2 of subdivision (a) as amended by
    45  chapter 172 of the laws of 1999, is amended to read as follows:
    46    § 121-202-A. Certificate of change. (a) A certificate of limited part-
    47  nership may be changed by filing with the department of state a  certif-
    48  icate of change entitled "Certificate of Change of ..... (name of limit-
    49  ed   partnership)   under  Section  121-202-A  of  the  Revised  Limited
    50  Partnership Act" and shall be signed and delivered to the department  of
    51  state. A certificate of change may (i) specify or change the location of
    52  the limited partnership's office; (ii) specify or change the post office
    53  address  to which [the secretary of state] a person shall mail a copy of
    54  process against the limited partnership served upon [him] the  secretary
    55  of  state;  and (iii) make, revoke or change the designation of a regis-

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     1  tered agent, or to specify or  change  the  address  of  its  registered
     2  agent. It shall set forth:
     3    (1)  the  name of the limited partnership, and if it has been changed,
     4  the name under which it was formed;
     5    (2) the date its certificate of limited partnership was filed  by  the
     6  department of state; and
     7    (3) each change effected thereby.
     8    (b) A certificate of change which changes only the post office address
     9  to  which  [the  secretary  of  state] a person shall mail a copy of any
    10  process against a limited partnership served upon [him or] the secretary
    11  of state and/or the address  of  the  registered  agent,  provided  such
    12  address  being  changed is the address of a person, partnership, limited
    13  liability corporation or corporation whose address,  as  agent,  is  the
    14  address to be changed or who has been designated as registered agent for
    15  such limited partnership shall be signed and delivered to the department
    16  of  state  by  such agent. The certificate of change shall set forth the
    17  statements required under subdivision (a) of this section; that a notice
    18  of the proposed change was mailed to the domestic limited partnership by
    19  the party signing the certificate not less than thirty days prior to the
    20  date of delivery to the department  of  state  and  that  such  domestic
    21  limited partnership has not objected thereto; and that the party signing
    22  the  certificate  is  the  agent  of  such  limited partnership to whose
    23  address [the secretary of state] a person is required to mail copies  of
    24  process  served  on  the  secretary of state or the registered agent, if
    25  such be the case. A certificate signed and delivered under this subdivi-
    26  sion shall not be deemed to effect a change of location of the office of
    27  the limited partnership in whose behalf such certificate is filed.
    28    § 62. Paragraph 4 of subdivision (a) and subparagraph 5  of  paragraph
    29  (i)  of subdivision (d) of section 121-902 of the partnership law, para-
    30  graph 4 of subdivision (a) as amended by chapter 172 of the laws of 1999
    31  and subparagraph 5 of paragraph (i) of subdivision  (d)  as  amended  by
    32  chapter 44 of the laws of 2006, are amended to read as follows:
    33    (4)  a  designation  of  the secretary of state as its agent upon whom
    34  process against it may be served and the post office address, within  or
    35  without  this  state,  to  which [the secretary of state] a person shall
    36  mail a copy of any process against it served upon [him] the secretary of
    37  state;
    38    (5) a statement that the secretary of state has been designated as its
    39  agent upon whom process against it may be served  and  the  post  office
    40  address, within or without this state, to which [the secretary of state]
    41  a person shall mail a copy of any process against it served upon [him or
    42  her] the secretary of state;
    43    §  63.  Section  121-903-A of the partnership law, as added by chapter
    44  448 of the laws of 1998, is amended to read as follows:
    45    § 121-903-A. Certificate of change. (a) A foreign limited  partnership
    46  may  change  its application for authority by filing with the department
    47  of state  a  certificate  of  change  entitled  "Certificate  of  Change
    48  of ........ (name of limited partnership) under Section 121-903-A of the
    49  Revised  Limited  Partnership  Act" and shall be signed and delivered to
    50  the department of state. A certificate of  change  may  (i)  change  the
    51  location  of  the  limited  partnership's  office;  (ii) change the post
    52  office address to which [the secretary of state] a person shall  mail  a
    53  copy  of  process  against the limited partnership served upon [him] the
    54  secretary of state; and (iii) make, revoke or change the designation  of
    55  a  registered  agent,  or to specify or change the address of its regis-
    56  tered agent. It shall set forth:

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     1    (1) the name of the foreign limited partnership  and,  if  applicable,
     2  the fictitious name the foreign limited partnership has agreed to use in
     3  this state pursuant to section 121-902 of this article;
     4    (2) the date its application for authority was filed by the department
     5  of state; and
     6    (3) each change effected thereby.
     7    (b) A certificate of change which changes only the post office address
     8  to  which  [the  secretary  of  state] a person shall mail a copy of any
     9  process against a foreign limited partnership served upon [him  or]  the
    10  secretary  of state and/or the address of the registered agent, provided
    11  such address being changed is the  address  of  a  person,  partnership,
    12  limited liability company or corporation whose address, as agent, is the
    13  address to be changed or who has been designated as registered agent for
    14  such  foreign  limited  partnership shall be signed and delivered to the
    15  department of state by such agent. The certificate of change  shall  set
    16  forth  the  statements  required  under subdivision (a) of this section;
    17  that a notice of the proposed change was mailed to the  foreign  limited
    18  partnership  by  the  party signing the certificate not less than thirty
    19  days prior to the date of delivery to the department of state  and  that
    20  such  foreign limited partnership has not objected thereto; and that the
    21  party signing the certificate is the agent of such foreign limited part-
    22  nership to whose address [the secretary of state] a person  is  required
    23  to mail copies of process served on the secretary of state or the regis-
    24  tered  agent,  if  such  be the case. A certificate signed and delivered
    25  under this subdivision shall  not  be  deemed  to  effect  a  change  of
    26  location  of  the office of the limited partnership in whose behalf such
    27  certificate is filed.
    28    § 64. Paragraph 6 of subdivision (b) of section 121-905 of  the  part-
    29  nership  law, as added by chapter 950 of the laws of 1990, is amended to
    30  read as follows:
    31    (6) a post office address, within or without this state, to which [the
    32  secretary of state] a person shall mail a copy of any process against it
    33  served upon [him] the secretary of state.
    34    § 65. Paragraph 7 of subdivision (a) of section 121-1103 of the  part-
    35  nership  law, as added by chapter 950 of the laws of 1990, is amended to
    36  read as follows:
    37    (7) A designation of the secretary of state as  its  agent  upon  whom
    38  process  against  it  may  be  served in the manner set forth in section
    39  121-109 of this article in any action or special proceeding, and a  post
    40  office address, within or without this state, to which [the secretary of
    41  state]  a  person shall mail a copy of any process served upon [him] the
    42  secretary of state.  Such post office address shall supersede any  prior
    43  address designated as the address to which process shall be mailed.
    44    §  66. Subparagraphs 2 and 4 of paragraph (I) and clause 4 of subpara-
    45  graph (A) of paragraph (II) of subdivision (a) of  section  121-1500  of
    46  the partnership law, subparagraph 2 of paragraph (I) as added by chapter
    47  576  of  the laws of 1994, subparagraph 4 of paragraph (I) as amended by
    48  chapter 643 of the laws of 1995 and such paragraph  as  redesignated  by
    49  chapter  767  of  the  laws  of 2005 and clause 4 of subparagraph (A) of
    50  paragraph (II) as amended by chapter 44 of the laws of 2006, are amended
    51  to read as follows:
    52    (2) the address, within this state, of the  principal  office  of  the
    53  partnership without limited partners;
    54    (4)  a  designation of the secretary of state as agent of the partner-
    55  ship without limited partners upon whom process against it may be served
    56  and the post office address, within or without this state, to which  the

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     1  [secretary  of  state] a person shall mail a copy of any process against
     2  it or served [upon it] on the secretary of state;
     3    (4)  a  statement  that  the secretary of state has been designated as
     4  agent of the registered limited liability partnership upon whom  process
     5  against  it may be served and the post office address, within or without
     6  this state, to which [the secretary of state] a person shall mail a copy
     7  of any process against it served upon [him  or  her]  the  secretary  of
     8  state;
     9    § 67. Paragraphs (ii) and (iii) of subdivision (g) of section 121-1500
    10  of  the partnership law, as amended by section 8 of part S of chapter 59
    11  of the laws of 2015, are amended to read as follows:
    12    (ii) the address, within this state, of the principal  office  of  the
    13  registered limited liability partnership, (iii) the post office address,
    14  within or without this state, to which [the secretary of state] a person
    15  shall mail a copy of any process accepted against it served upon [him or
    16  her]  the secretary of state, which address shall supersede any previous
    17  address on file with the department of state for this purpose, and
    18    § 68. Subdivision (j-1) of section 121-1500 of the partnership law, as
    19  added by chapter 448 of the laws of 1998, is amended to read as follows:
    20    (j-1) A certificate of change  which  changes  only  the  post  office
    21  address  to which [the secretary of state] a person shall mail a copy of
    22  any process against a registered limited  liability  partnership  served
    23  upon  [him]  the secretary of state and/or the address of the registered
    24  agent, provided such address being changed is the address of  a  person,
    25  partnership,  limited liability company or corporation whose address, as
    26  agent, is the address to be changed or who has been designated as regis-
    27  tered agent for such registered limited liability partnership  shall  be
    28  signed  and  delivered  to  the  department  of state by such agent. The
    29  certificate of change shall set forth: (i) the name  of  the  registered
    30  limited  liability  partnership  and,  if  it has been changed, the name
    31  under which it was originally filed with the department of  state;  (ii)
    32  the  date  of  filing  of  its initial registration or notice statement;
    33  (iii) each change effected thereby; (iv) that a notice of  the  proposed
    34  change  was  mailed  to  the  limited liability partnership by the party
    35  signing the certificate not less than thirty days prior to the  date  of
    36  delivery  to  the  department  of  state and that such limited liability
    37  partnership has not objected thereto; and (v) that the party signing the
    38  certificate is the agent of such limited liability partnership to  whose
    39  address  [the secretary of state] a person is required to mail copies of
    40  process served on the secretary of state or  the  registered  agent,  if
    41  such be the case. A certificate signed and delivered under this subdivi-
    42  sion shall not be deemed to effect a change of location of the office of
    43  the  limited  liability  partnership in whose behalf such certificate is
    44  filed. The certificate of change shall be accompanied by a fee  of  five
    45  dollars.
    46    §  69.  Subdivision (a) of section 121-1502 of the partnership law, as
    47  amended by chapter 643 of the laws of 1995, paragraph (v) as amended  by
    48  chapter 470 of the laws of 1997, is amended to read as follows:
    49    (a)  In  order for a foreign limited liability partnership to carry on
    50  or conduct or transact business or activities as a New  York  registered
    51  foreign limited liability partnership in this state, such foreign limit-
    52  ed  liability  partnership  shall  file  with  the department of state a
    53  notice which shall set forth: (i)  the  name  under  which  the  foreign
    54  limited liability partnership intends to carry on or conduct or transact
    55  business  or  activities  in  this state; (ii) the date on which and the
    56  jurisdiction in which it registered as a limited liability  partnership;

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     1  (iii)  the  address,  within  this state, of the principal office of the
     2  foreign  limited  liability  partnership;   (iv)   the   profession   or
     3  professions  to  be practiced by such foreign limited liability partner-
     4  ship  and a statement that it is a foreign limited liability partnership
     5  eligible to file a notice under this chapter; (v) a designation  of  the
     6  secretary of state as agent of the foreign limited liability partnership
     7  upon  whom  process against it may be served and the post office address
     8  within or without this state, to which [the secretary of state] a person
     9  shall mail a copy of any process against it [or] served  upon  [it]  the
    10  secretary of state; (vi) if the foreign limited liability partnership is
    11  to  have  a  registered  agent, its name and address in this state and a
    12  statement that the registered agent is to be the agent  of  the  foreign
    13  limited  liability  partnership  upon  whom  process  against  it may be
    14  served; (vii) a statement that its registration as a  limited  liability
    15  partnership is effective in the jurisdiction in which it registered as a
    16  limited  liability partnership at the time of the filing of such notice;
    17  (viii) a statement that the foreign  limited  liability  partnership  is
    18  filing  a  notice  in  order  to  obtain status as a New York registered
    19  foreign limited liability partnership; (ix) if the registration  of  the
    20  foreign limited liability partnership is to be effective on a date later
    21  than  the  time  of  filing, the date, not to exceed sixty days from the
    22  date of filing, of  such  proposed  effectiveness;  and  (x)  any  other
    23  matters  the foreign limited liability partnership determines to include
    24  in the notice. Such notice shall be accompanied by either (1) a copy  of
    25  the  last  registration  or renewal registration (or similar filing), if
    26  any, filed by the foreign limited liability partnership with the  juris-
    27  diction  where it registered as a limited liability partnership or (2) a
    28  certificate, issued by the jurisdiction where it registered as a limited
    29  liability partnership, substantially to the  effect  that  such  foreign
    30  limited  liability  partnership  has  filed  a registration as a limited
    31  liability partnership which is effective on the date of the  certificate
    32  (if  such  registration,  renewal  registration  or  certificate is in a
    33  foreign language, a translation thereof under  oath  of  the  translator
    34  shall  be  attached thereto). Such notice shall also be accompanied by a
    35  fee of two hundred fifty dollars.
    36    § 70. Subparagraphs (ii) and (iii) of paragraph (I) of subdivision (f)
    37  of section 121-1502 of the partnership law, as amended by section  9  of
    38  part  S  of  chapter  59  of  the  laws  of 2015, are amended to read as
    39  follows:
    40    (ii) the address, within this state, of the principal  office  of  the
    41  New  York  registered  foreign  limited liability partnership, (iii) the
    42  post office address, within or without this state, to which [the  secre-
    43  tary  of  state]  a  person  shall  mail  a copy of any process accepted
    44  against it served upon [him  or  her]  the  secretary  of  state,  which
    45  address shall supersede any previous address on file with the department
    46  of state for this purpose, and
    47    §  71.  Clause  5 of subparagraph (A) of paragraph (II) of subdivision
    48  (f) of section 121-1502 of the partnership law, as amended by chapter 44
    49  of the laws of 2006, is amended to read as follows:
    50    (5) a statement that the secretary of state  has  been  designated  as
    51  agent  of  the  foreign  limited liability partnership upon whom process
    52  against it may be served and the post office address, within or  without
    53  this state, to which [the secretary of state] a person shall mail a copy
    54  of  any  process  against  it  served upon [him or her] the secretary of
    55  state;

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     1    § 72. Subdivision (i-1) of section 121-1502 of the partnership law, as
     2  added by chapter 448 of the laws of 1998, is amended to read as follows:
     3    (i-1)  A  certificate  of  change  which  changes only the post office
     4  address to which [the secretary of state] a person shall mail a copy  of
     5  any  process  against  a  New  York registered foreign limited liability
     6  partnership served upon [him] the secretary of state and/or the  address
     7  of  the  registered  agent,  provided  such address being changed is the
     8  address of a person, partnership, limited liability  company  or  corpo-
     9  ration  whose address, as agent, is the address to be changed or who has
    10  been designated as registered agent of such registered  foreign  limited
    11  liability partnership shall be signed and delivered to the department of
    12  state  by such agent. The certificate of change shall set forth: (i) the
    13  name of the New York registered foreign limited  liability  partnership;
    14  (ii) the date of filing of its initial registration or notice statement;
    15  (iii)  each  change effected thereby; (iv) that a notice of the proposed
    16  change was mailed to the limited  liability  partnership  by  the  party
    17  signing  the  certificate not less than thirty days prior to the date of
    18  delivery to the department of state  and  that  such  limited  liability
    19  partnership has not objected thereto; and (v) that the party signing the
    20  certificate  is the agent of such limited liability partnership to whose
    21  address [the secretary of state] a person is required to mail copies  of
    22  process  served  on  the  secretary of state or the registered agent, if
    23  such be the case. A certificate signed and delivered under this subdivi-
    24  sion shall not be deemed to effect a change of location of the office of
    25  the limited liability partnership in whose behalf  such  certificate  is
    26  filed.  The  certificate of change shall be accompanied by a fee of five
    27  dollars.
    28    § 73. Subdivision (a) of section 121-1505 of the partnership  law,  as
    29  added  by chapter 470 of the laws of 1997, is amended and two new subdi-
    30  visions (d) and (e) are added to read as follows:
    31    (a) Service of process on the secretary of state as agent of a  regis-
    32  tered  limited  liability  partnership  or  New  York registered foreign
    33  limited liability partnership under this article shall be made by  mail-
    34  ing  the process and notice of service thereof by certified mail, return
    35  receipt requested, to such registered limited liability  partnership  or
    36  New  York  registered foreign limited liability partnership, at the post
    37  office address on file in the department of  state  specified  for  such
    38  purpose.  On the same date that such process is mailed, a duplicate copy
    39  of such process and proof of mailing together with  the  statutory  fee,
    40  which  fee shall be a taxable disbursement shall be personally [deliver-
    41  ing] delivered to and [leaving] left with the secretary of  state  or  a
    42  deputy,  or  with  any  person  authorized  by the secretary of state to
    43  receive such service, at the office of the department of  state  in  the
    44  city  of  Albany,  [duplicate  copies of such process] together with the
    45  statutory fee, which fee shall be a taxable disbursement. Proof of mail-
    46  ing shall be by affidavit of compliance with this  section.  Service  of
    47  process  on  such  registered  limited liability partnership or New York
    48  registered foreign limited liability partnership shall be complete  when
    49  the  secretary  of  state  is  so  served. [The secretary of state shall
    50  promptly send one of such  copies  by  certified  mail,  return  receipt
    51  requested, to such registered limited liability partnership, at the post
    52  office  address  on  file  in the department of state specified for such
    53  purpose.]
    54    (d) The department of state shall keep a record of each process served
    55  upon the secretary of state under this chapter, including  the  date  of
    56  such  service.  It  shall,  upon  request  made within ten years of such

        S. 2008--A                         87                         A. 3008--A
 
     1  service, issue a certificate under its seal certifying as to the receipt
     2  of the process by an authorized person,  the  date  and  place  of  such
     3  service  and  the receipt of the statutory fee.  Process served upon the
     4  secretary  of state under this chapter shall be destroyed by the depart-
     5  ment of state after a period of ten years from such service.
     6    (e) Any designated post office address maintained by the secretary  of
     7  state as agent of a registered limited liability partnership or New York
     8  registered  foreign  limited  liability  partnership  for the purpose of
     9  mailing process shall be the post office address, within or without  the
    10  state, to which a person shall mail process against such limited liabil-
    11  ity  company  as  required  by this article. Such address shall continue
    12  until the filing of a certificate under this chapter directing the mail-
    13  ing to a different post office address.
    14    § 74. Subdivision (b) of section 121-1506 of the partnership  law,  as
    15  added  by  chapter  448  of  the laws of 1998, paragraph 4 as amended by
    16  chapter 172 of the laws of 1999, is amended to read as follows:
    17    (b) The party (or the party's legal representative) whose post  office
    18  address  has  been  supplied  by  a limited liability partnership as its
    19  address for process may resign. A certificate entitled  "Certificate  of
    20  Resignation  for  Receipt  of  Process  under Section 121-1506(b) of the
    21  Partnership Law" shall be signed by such  party  and  delivered  to  the
    22  department of state. It shall set forth:
    23    (1)  The  name  of the limited liability partnership and the date that
    24  its certificate of registration was filed by the department of state.
    25    (2) That the address of the party has been designated by  the  limited
    26  liability partnership as the post office address to which [the secretary
    27  of state] a person shall mail a copy of any process served on the secre-
    28  tary  of  state as agent for such limited liability partnership and that
    29  such party wishes to resign.
    30    (3) That sixty days prior to the filing of the certificate of resigna-
    31  tion with the department of state the party  has  sent  a  copy  of  the
    32  certificate  of  resignation  for  receipt  of  process by registered or
    33  certified mail to the address of the registered  agent  of  the  [desig-
    34  nated]  designating  limited  liability  partnership,  if other than the
    35  party filing the certificate of resignation, for receipt of process,  or
    36  if  the  [resigning]  designating  limited  liability partnership has no
    37  registered agent, then to the last address of the [designated] designat-
    38  ing limited liability partnership, known to the  party,  specifying  the
    39  address  to which the copy was sent. If there is no registered agent and
    40  no known address of the designating limited  liability  partnership  the
    41  party  shall attach an affidavit to the certificate stating that a dili-
    42  gent but unsuccessful search was made by the party to locate the limited
    43  liability partnership, specifying what efforts were made.
    44    (4) That the [designated] designating limited liability partnership is
    45  required to deliver to the department of state a certificate  of  amend-
    46  ment  providing for the designation by the limited liability partnership
    47  of a new address and that upon its failure to file such certificate, its
    48  authority to do business in this state shall be suspended.
    49    § 75. Paragraph 16 of subdivision 1 of  section  103  of  the  private
    50  housing  finance  law,  as  added  by chapter 22 of the laws of 1970, is
    51  amended to read as follows:
    52    (16) A designation of the secretary of state as agent  of  the  corpo-
    53  ration  upon  whom  process against it may be served and the post office
    54  address, within or without this state, to which [the secretary of state]
    55  a person shall mail a copy of any process against it served  upon  [him]
    56  the secretary of state.

        S. 2008--A                         88                         A. 3008--A
 
     1    §  76.  Subdivision  7  of  section  339-n of the real property law is
     2  REPEALED and subdivisions 8 and 9 are renumbered subdivisions 7 and 8.
     3    §  76-a.  Subdivision  15  of  section  20.03 of the arts and cultural
     4  affairs law, as added by chapter 656 of the laws of 1991, is amended  to
     5  read as follows:
     6    15. "Non-institutional  portion"  shall  mean the part or portion of a
     7  combined-use facility other than the institutional portion. If the  non-
     8  institutional  portion,  or any part thereof, consists of a condominium,
     9  the consent of the trust which has developed or approved  the  developer
    10  of  such  condominium  shall  be  required prior to any amendment of the
    11  declaration of such condominium pursuant to subdivision [nine] eight  of
    12  section  three  hundred thirty-nine-n of the real property law and prior
    13  to any amendment of the by-laws of such condominium  pursuant  to  para-
    14  graph  (j)  of subdivision one of section three hundred thirty-nine-v of
    15  the real property law, and whether or not such trust is a unit owner  of
    16  such  condominium,  it  may exercise the rights of the board of managers
    17  and an aggrieved unit owner under section three hundred thirty-nine-j of
    18  the real property law in the case of a failure of any unit owner of such
    19  condominium to comply with the by-laws of such condominium and with  the
    20  rules, regulations, and decisions adopted pursuant thereto.
    21    §  77.  Subdivision  2  of  section 339-s of the real property law, as
    22  added by chapter 346 of the laws of 1997, is amended to read as follows:
    23    2. [Each such declaration, and any  amendment  or  amendments  thereof
    24  shall  be  filed with the department of state] (a) The board of managers
    25  for each condominium subject to this article shall file with the  secre-
    26  tary  of state a certificate, in writing, signed, designating the secre-
    27  tary of state as agent of  the  board  of  managers  upon  whom  process
    28  against  it  may be served and the post office address to which a person
    29  shall mail a copy of such process.  The certificate shall be accompanied
    30  by a fee of sixty dollars.
    31    (b) Any board of managers may change the address  to  which  a  person
    32  shall  mail  a  copy  of  process served upon the secretary of state, by
    33  filing a signed certificate of amendment with the department  of  state.
    34  Such certificate shall be accompanied by a fee of sixty dollars.
    35    (c)  Service  of process on the secretary of state as agent of a board
    36  of managers shall be made by mailing the process and notice  of  service
    37  of  process  pursuant  to this section by certified mail, return receipt
    38  requested, to such board of managers, at the  post  office  address,  on
    39  file in the department of state, specified for this purpose. On the same
    40  day  that  such  process is mailed, a duplicate copy of such process and
    41  proof of mailing shall be personally delivered  to  and  left  with  the
    42  secretary  of  state  or  a deputy, or with any person authorized by the
    43  secretary of state to receive such service, at the office of the depart-
    44  ment of state in the city of Albany, a duplicate copy  of  such  process
    45  with  proof of mailing together with the statutory fee, which shall be a
    46  taxable disbursement. Proof of mailing shall be by affidavit of  compli-
    47  ance  with this section. Service of process on a board of managers shall
    48  be complete when the secretary of state is so served.
    49    (d) As used in this article, "process" shall mean judicial process and
    50  all orders, demands, notices or other papers required  or  permitted  by
    51  law  to  be personally served on a board of managers, for the purpose of
    52  acquiring jurisdiction of such  board  of  managers  in  any  action  or
    53  proceeding,  civil  or criminal, whether judicial, administrative, arbi-
    54  trative or otherwise, in this state or in the federal courts sitting  in
    55  or for this state.

        S. 2008--A                         89                         A. 3008--A
 
     1    (e) Nothing in this section shall affect the right to serve process in
     2  any other manner permitted by law.
     3    (f) The department of state shall keep a record of each process served
     4  under  this  section,  including  the  date  of  service. It shall, upon
     5  request, made within ten years of  such  service,  issue  a  certificate
     6  under  its seal certifying as to the receipt of process by an authorized
     7  person, the date and place of such service and the receipt of the statu-
     8  tory fee. Process served on the secretary of state  under  this  section
     9  shall  be  destroyed  by  the  department of state after a period of ten
    10  years from such service.
    11    (g) Any designated post office address maintained by the secretary  of
    12  state as agent of the board of managers for the purpose of mailing proc-
    13  ess  shall  be  the post office address, within or without the state, to
    14  which a person shall mail process against such board as required by this
    15  article. Such address shall continue until the filing of  a  certificate
    16  under  this  chapter  directing  the  mailing to a different post office
    17  address.
    18    § 78. Subdivisions 3 and 4 of section 442-g of the real property  law,
    19  as  amended  by  chapter 482 of the laws of 1963, are amended to read as
    20  follows:
    21    3. Service of such process upon the secretary of state shall  be  made
    22  by  personally delivering to and leaving with [him or his] the secretary
    23  of state or a deputy, or with any person authorized by the secretary  of
    24  state  to receive such service, at the office of the department of state
    25  in the city of Albany, [duplicate copies] a copy  of  such  process  and
    26  proof  of  mailing  together with a fee of five dollars if the action is
    27  solely for the recovery of a sum of money not in excess of  two  hundred
    28  dollars  and the process is so endorsed, and a fee of ten dollars in any
    29  other action or proceeding, which fee shall be a  taxable  disbursement.
    30  If  such  process  is  served  upon  behalf  of  a county, city, town or
    31  village, or other political subdivision of the state, the fee to be paid
    32  to the secretary of state shall be five  dollars,  irrespective  of  the
    33  amount  involved  or  the  nature of the action on account of which such
    34  service of process is made. [If the cost of registered mail  for  trans-
    35  mitting  a  copy  of the process shall exceed two dollars, an additional
    36  fee equal to such excess shall be paid at the time  of  the  service  of
    37  such process.] Proof of mailing shall be by affidavit of compliance with
    38  this  section. Proof of service shall be by affidavit of compliance with
    39  this subdivision filed by or on behalf of the  plaintiff  together  with
    40  the  process,  within ten days after such service, with the clerk of the
    41  court in which the action or special proceeding  is  pending.    Service
    42  made  as  provided in this section shall be complete ten days after such
    43  papers are filed with the clerk of the court and  shall  have  the  same
    44  force  and  validity as if served on him personally within the state and
    45  within the territorial jurisdiction of the court from which the  process
    46  issues.
    47    4. The [secretary of state] person serving such process shall [prompt-
    48  ly]  send [one of] such [copies] process by [registered] certified mail,
    49  return receipt requested,  to  the  nonresident  broker  or  nonresident
    50  salesman  at  the post office address of his main office as set forth in
    51  the last application filed by him.
    52    § 79. Subdivision 2 of section 203 of the tax law, as amended by chap-
    53  ter 100 of the laws of 1964, is amended to read as follows:
    54    2.   Every foreign corporation  (other  than  a  moneyed  corporation)
    55  subject to the provisions of this article, except a corporation having a
    56  certificate of authority [under section two hundred twelve of the gener-

        S. 2008--A                         90                         A. 3008--A

     1  al  corporation  law]  or  having  authority to do business by virtue of
     2  section thirteen hundred five of the  business  corporation  law,  shall
     3  file  in  the  department  of  state a certificate of designation in its
     4  corporate  name, signed and acknowledged by its president or a vice-pre-
     5  sident or its secretary or treasurer, under its corporate  seal,  desig-
     6  nating  the  secretary  of  state  as its agent upon whom process in any
     7  action provided for by this article may be served within this state, and
     8  setting forth an address to which [the  secretary  of  state]  a  person
     9  shall  mail a copy of any such process against the corporation which may
    10  be served upon [him] the secretary of state.   In case any  such  corpo-
    11  ration  shall  have  failed  to file such certificate of designation, it
    12  shall be deemed to have designated the secretary of state as  its  agent
    13  upon whom such process against it may be served; and until a certificate
    14  of  designation shall have been filed the corporation shall be deemed to
    15  have directed [the secretary of state] a person serving process to  mail
    16  copies of process served upon [him] the secretary of state to the corpo-
    17  ration  at  its  last  known office address within or without the state.
    18  When a certificate of designation has been  filed  by  such  corporation
    19  [the  secretary  of state] a person serving process shall mail copies of
    20  process thereafter served upon [him]  the  secretary  of  state  to  the
    21  address  set forth in such certificate.  Any such corporation, from time
    22  to time, may change the address to which  [the  secretary  of  state]  a
    23  person is directed to mail copies of process, by filing a certificate to
    24  that  effect  executed,  signed  and  acknowledged  in  like manner as a
    25  certificate of designation as herein provided.  Service of process  upon
    26  any  such  corporation  or  upon any corporation having a certificate of
    27  authority [under section two hundred twelve of the  general  corporation
    28  law]  or  having  authority to do business by virtue of section thirteen
    29  hundred five of the business corporation law, in any action commenced at
    30  any time pursuant to the provisions of this  article,  may  be  made  by
    31  either  (1)  personally  delivering to and leaving with the secretary of
    32  state, a deputy secretary of state or with any person authorized by  the
    33  secretary  of  state  to  receive such service [duplicate copies] a copy
    34  thereof at the office of the department of state in the city of  Albany,
    35  in  which  event  [the secretary of state] a person serving such process
    36  shall forthwith send by  [registered]  certified  mail,  return  receipt
    37  requested,  [one  of such copies] a duplicate copy to the corporation at
    38  the address designated by it or at its last known office address  within
    39  or  without  the state, or (2) personally delivering to and leaving with
    40  the secretary of state, a deputy secretary of state or with  any  person
    41  authorized  by  the  secretary  of state to receive such service, a copy
    42  thereof at the office of the department of state in the city  of  Albany
    43  and  by  delivering  a  copy thereof to, and leaving such copy with, the
    44  president, vice-president, secretary,  assistant  secretary,  treasurer,
    45  assistant  treasurer,  or  cashier  of  such corporation, or the officer
    46  performing corresponding functions under another name, or a director  or
    47  managing agent of such corporation, personally without the state.  Proof
    48  of such personal service without the state shall be filed with the clerk
    49  of  the  court  in  which the action is pending within thirty days after
    50  such service, and such service shall be complete ten  days  after  proof
    51  thereof is filed.
    52    §  80. Section 216 of the tax law, as added by chapter 415 of the laws
    53  of 1944, the opening paragraph as amended by chapter 100 of the laws  of
    54  1964  and redesignated by chapter 613 of the laws of 1976, is amended to
    55  read as follows:

        S. 2008--A                         91                         A. 3008--A
 
     1    § 216.  Collection of taxes.   Every foreign corporation (other than a
     2  moneyed corporation) subject to the provisions of this article, except a
     3  corporation having a certificate of authority [under section two hundred
     4  twelve of the general corporation law] or having authority to  do  busi-
     5  ness  by  virtue of section thirteen hundred five of the business corpo-
     6  ration law, shall file in the  department  of  state  a  certificate  of
     7  designation in its corporate name, signed and acknowledged by its presi-
     8  dent or a vice-president or its secretary or treasurer, under its corpo-
     9  rate  seal,  designating  the  secretary of state as its agent upon whom
    10  process in any action provided for by this article may be served  within
    11  this  state,  and  setting  forth  an address to which [the secretary of
    12  state] a person shall mail a copy of any such process against the corpo-
    13  ration which may be served upon him.  In case any such corporation shall
    14  have failed to file such certificate of designation, it shall be  deemed
    15  to  have  designated  the secretary of state as its agent upon whom such
    16  process against it may be served; and until a certificate of designation
    17  shall have been filed the corporation shall be deemed to  have  directed
    18  [the  secretary  of  state]  a person to mail [copies] a copy of process
    19  served upon [him] the secretary of state to the corporation at its  last
    20  known office address within or without the state.  When a certificate of
    21  designation  has been filed by such corporation [the secretary of state]
    22  a person serving such process shall mail  [copies]  a  copy  of  process
    23  thereafter  served  upon  [him]  a  person  serving  such process to the
    24  address set forth in such certificate.  Any such corporation, from  time
    25  to  time,  may  change  the  address to which [the secretary of state] a
    26  person is directed to mail copies of process, by filing a certificate to
    27  that effect executed, signed  and  acknowledged  in  like  manner  as  a
    28  certificate  of designation as herein provided.  Service of process upon
    29  any such corporation or upon any corporation  having  a  certificate  of
    30  authority  [under  section two hundred twelve of the general corporation
    31  law] or having authority to do business by virtue  of  section  thirteen
    32  hundred five of the business corporation law, in any action commenced at
    33  any  time  pursuant  to  the  provisions of this article, may be made by
    34  either (1) personally delivering to and leaving with  the  secretary  of
    35  state,  a deputy secretary of state or with any person authorized by the
    36  secretary of state to receive such service  [duplicate  copies]  a  copy
    37  thereof  at the office of the department of state in the city of Albany,
    38  in which event [the secretary of state] a person  serving  such  process
    39  shall  forthwith  send  by  [registered]  certified mail, return receipt
    40  requested, [one of such copies] a duplicate copy to the  corporation  at
    41  the  address designated by it or at its last known office address within
    42  or without the state, or (2) personally delivering to and  leaving  with
    43  the  secretary  of state, a deputy secretary of state or with any person
    44  authorized by the secretary of state to receive  such  service,  a  copy
    45  thereof  at  the office of the department of state in the city of Albany
    46  and by delivering a copy thereof to, and leaving  such  copy  with,  the
    47  president,  vice-president,  secretary,  assistant secretary, treasurer,
    48  assistant treasurer, or cashier of  such  corporation,  or  the  officer
    49  performing  corresponding functions under another name, or a director or
    50  managing agent of such corporation, personally without the state.  Proof
    51  of such personal service without the state shall be filed with the clerk
    52  of the court in which the action is pending  within  thirty  days  after
    53  such  service,  and  such service shall be complete ten days after proof
    54  thereof is filed.
    55    § 81. Subdivisions (a) and (b) of section 310 of the tax law, as added
    56  by chapter 400 of the laws of 1983, are amended to read as follows:

        S. 2008--A                         92                         A. 3008--A

     1    (a) Designation for  service  of  process.--Every  petroleum  business
     2  which  is  a  corporation,  except  such  a  petroleum business having a
     3  certificate of authority [under section two hundred twelve of the gener-
     4  al corporation law] or having authority to  do  business  by  virtue  of
     5  section  thirteen  hundred  five  of the business corporation law, shall
     6  file in the department of state a  certificate  of  designation  in  its
     7  corporate  name, signed and acknowledged by its president or vice-presi-
     8  dent or its secretary or treasurer, under its corporate seal,  designat-
     9  ing  the secretary of state as its agent upon whom process in any action
    10  provided for by this article  may  be  served  within  this  state,  and
    11  setting  forth  an  address  to  which [the secretary of state] a person
    12  shall mail a copy of any such process against  such  petroleum  business
    13  which  may be served upon [him] the secretary of state. In case any such
    14  petroleum business shall have failed to file such certificate of  desig-
    15  nation,  it shall be deemed to have designated the secretary of state as
    16  its agent upon whom such process against it may be served; and  until  a
    17  certificate  of designation shall have been filed such a petroleum busi-
    18  ness shall be deemed to have directed [the secretary of state] a  person
    19  to  mail  copies  of process served upon [him] the secretary of state to
    20  such petroleum business at its last known office address within or with-
    21  out the state. When a certificate of designation has been filed by  such
    22  a  petroleum  business [the secretary of state] a person serving process
    23  shall mail copies of process thereafter served upon [him] the  secretary
    24  of state to the address set forth in such certificate. Any such petrole-
    25  um  business,  from  time  to time, may change the address to which [the
    26  secretary of state] a person is directed to mail copies of  process,  by
    27  filing a certificate to that effect executed, signed and acknowledged in
    28  like manner as a certificate of designation as herein provided.
    29    (b)  Service  of process.--Service of process upon any petroleum busi-
    30  ness which is a  corporation  (including  any  such  petroleum  business
    31  having  a  certificate of authority [under section two hundred twelve of
    32  the general corporation law] or  having  authority  to  do  business  by
    33  virtue  of  section  thirteen  hundred  five of the business corporation
    34  law), in any action commenced at any time pursuant to the provisions  of
    35  this  article,  may  be  made by either (1) personally delivering to and
    36  leaving with the secretary of state, a deputy secretary of state or with
    37  any person authorized by the secretary of state to receive such  service
    38  [duplicate  copies]  a  copy  thereof at the office of the department of
    39  state in the city of Albany, in which event [the secretary of  state]  a
    40  person  serving  process  shall forthwith send by [registered] certified
    41  mail, return receipt requested, [one of such copies] a duplicate copy to
    42  such petroleum business at the address designated by it or at  its  last
    43  known  office  address  within  or  without the state, or (2) personally
    44  delivering to and leaving with the secretary of state, a  deputy  secre-
    45  tary of state or with any person authorized by the secretary of state to
    46  receive  such service, a copy thereof at the office of the department of
    47  state in the city of Albany and by delivering a  copy  thereof  to,  and
    48  leaving  such  copy  with,  the  president,  vice-president,  secretary,
    49  assistant secretary, treasurer, assistant treasurer, or cashier of  such
    50  petroleum  business,  or  the officer performing corresponding functions
    51  under another name, or a director or managing agent  of  such  petroleum
    52  business,  personally  without the state. Proof of such personal service
    53  without the state shall be filed with the clerk of the  court  in  which
    54  the  action  is  pending within thirty days after such service, and such
    55  service shall be complete ten days after proof thereof is filed.

        S. 2008--A                         93                         A. 3008--A
 
     1    § 82. This act shall take effect on  the  one  hundred  twentieth  day
     2  after it shall have become a law.
 
     3                                   PART S
 
     4    Section 1. Subdivision 6 of section 441-a of the real property law, as
     5  amended  by  chapter  183  of  the  laws  of 2006, is amended to read as
     6  follows:
     7    6. Pocket card. The department shall prepare, issue and deliver,  with
     8  the  assistance  of the department of motor vehicles, [to each licensee]
     9  upon payment of a fee of five dollars by a licensee, a  pocket  card  in
    10  such  form and manner as the department shall prescribe, but which shall
    11  contain the photo, name and business address of the  licensee,  and,  in
    12  the case of a real estate salesman, the name and business address of the
    13  broker  with  whom  he  or  she is associated and shall certify that the
    14  person whose name appears thereon is a licensed real  estate  broker  or
    15  salesman,  as may be. Such cards must be shown on demand. In the case of
    16  loss, destruction or damage, the secretary of state may, upon submission
    17  of satisfactory proof, issue a duplicate pocket card upon payment  of  a
    18  fee of ten dollars.
    19    § 2. This act shall take effect immediately.
 
    20                                   PART T
 
    21    Section  1.  Subdivision  2  of  section  54-1101 of the environmental
    22  conservation law, as amended by section 4 of part U of chapter 58 of the
    23  laws of 2016, is amended to read as follows:
    24    2. State assistance payments and/or technical assistance,  as  defined
    25  in section nine hundred seventeen of the executive law, shall not exceed
    26  [fifty] seventy-five percent of the cost of the program. For the purpose
    27  of  determining the amount of state assistance payments, costs shall not
    28  be more than the amount set forth in the application for  state  assist-
    29  ance  payments  approved by the secretary. The state assistance payments
    30  shall be paid on audit and warrant of the state comptroller on a certif-
    31  icate of availability of the director of the budget.
    32    § 2. The opening paragraph and paragraph a of subdivision 1 of section
    33  918 of the executive law, as added by chapter 840 of the laws  of  1981,
    34  are amended to read as follows:
    35    The  secretary  may  enter  into a contract or contracts for grants or
    36  payments to be made, within the limits of any  appropriations  therefor,
    37  for the following:
    38    a.  To any local governments, or to two or more local governments, for
    39  projects approved by the secretary which lead to preparation of a water-
    40  front revitalization program; provided, however,  that  such  grants  or
    41  payments  shall  not exceed [fifty] seventy-five percent of the approved
    42  cost of such projects;
    43    § 3. This act shall take effect immediately.
 
    44                                   PART U
 
    45    Section 1. Paragraph (e) of subdivision 1 of section 169 of the execu-
    46  tive law, as amended by section 9 of part A of chapter 60 of the laws of
    47  2012, is amended to read as follows:
    48    (e) [chairman of state athletic commission,] director of the office of
    49  victim services, chairman of human rights appeal board, chairman of  the
    50  industrial  board  of  appeals,  chairman  of  the  state  commission of

        S. 2008--A                         94                         A. 3008--A
 
     1  correction, members of the board of parole, member-chairman of unemploy-
     2  ment insurance appeal board, director of veterans'  affairs,  and  vice-
     3  chairman of the workers' compensation board;
     4    § 2. This act shall take effect immediately.
 
     5                                   PART V
 
     6    Section  1.  Expenditures  of  moneys appropriated in a chapter of the
     7  laws of 2017 to the department  of  agriculture  and  markets  from  the
     8  special  revenue  funds-other/state  operations,  miscellaneous  special
     9  revenue fund-339,  public  service  account  shall  be  subject  to  the
    10  provisions  of  this section. Notwithstanding any other provision of law
    11  to the contrary, direct and indirect expenses relating to the department
    12  of  agriculture  and  markets'  participation  in   general   ratemaking
    13  proceedings  pursuant to section 65 of the public service law or certif-
    14  ication proceedings pursuant to article 7 or 10 of  the  public  service
    15  law, shall be deemed expenses of the department of public service within
    16  the  meaning  of  section  18-a of the public service law. No later than
    17  August 15, 2018, the commissioner of the department of  agriculture  and
    18  markets  shall submit an accounting of such expenses, including, but not
    19  limited to, expenses in the 2017 -- 2018 fiscal year  for  personal  and
    20  non-personal  services  and  fringe benefits, to the chair of the public
    21  service commission for the chair's review pursuant to the provisions  of
    22  section 18-a of the public service law.
    23    §  2.  Expenditures of moneys appropriated in a chapter of the laws of
    24  2017 to  the  department  of  state  from  the  special  revenue  funds-
    25  other/state  operations,  miscellaneous special revenue fund-339, public
    26  service account shall be subject to  the  provisions  of  this  section.
    27  Notwithstanding  any  other provision of law to the contrary, direct and
    28  indirect expenses relating  to  the  activities  of  the  department  of
    29  state's  utility  intervention unit pursuant to subdivision 4 of section
    30  94-a of the executive law, including, but not limited  to  participation
    31  in  general  ratemaking proceedings pursuant to section 65 of the public
    32  service law or certification proceedings pursuant to article 7 or 10  of
    33  the  public  service  law, shall be deemed expenses of the department of
    34  public service within the meaning of section 18-a of the public  service
    35  law.  No later than August 15, 2018, the secretary of state shall submit
    36  an  accounting of such expenses, including, but not limited to, expenses
    37  in the 2017 -- 2018 fiscal year for personal and  non-personal  services
    38  and  fringe  benefits, to the chair of the public service commission for
    39  the chair's review pursuant to the provisions of  section  18-a  of  the
    40  public service law.
    41    §  3.  Expenditures of moneys appropriated in a chapter of the laws of
    42  2017 to the office of parks, recreation and historic  preservation  from
    43  the  special revenue funds-other/state operations, miscellaneous special
    44  revenue fund-339,  public  service  account  shall  be  subject  to  the
    45  provisions  of  this section. Notwithstanding any other provision of law
    46  to the contrary, direct and indirect expenses relating to the office  of
    47  parks,  recreation  and historic preservation's participation in general
    48  ratemaking proceedings pursuant to section 65 of the public service  law
    49  or  certification  proceedings pursuant to article 7 or 10 of the public
    50  service law, shall be  deemed  expenses  of  the  department  of  public
    51  service within the meaning of section 18-a of the public service law. No
    52  later  than  August  15,  2018, the commissioner of the office of parks,
    53  recreation and historic preservation shall submit an accounting of  such
    54  expenses,  including,  but  not limited to, expenses in the 2017 -- 2018

        S. 2008--A                         95                         A. 3008--A
 
     1  fiscal year for personal and non-personal services and fringe  benefits,
     2  to  the  chair  of  the public service commission for the chair's review
     3  pursuant to the provisions of section 18-a of the public service law.
     4    §  4.  Expenditures of moneys appropriated in a chapter of the laws of
     5  2017 to the department of environmental conservation  from  the  special
     6  revenue funds-other/state operations, environmental conservation special
     7  revenue  fund-301,  utility  environmental  regulation  account shall be
     8  subject to the provisions of this  section.  Notwithstanding  any  other
     9  provision  of law to the contrary, direct and indirect expenses relating
    10  to the department of environmental conservation's participation in state
    11  energy policy proceedings,  or  certification  proceedings  pursuant  to
    12  article  7  or 10 of the public service law, shall be deemed expenses of
    13  the department of public service within the meaning of section  18-a  of
    14  the  public service law. No later than August 15, 2018, the commissioner
    15  of the department of environmental conservation shall submit an account-
    16  ing of such expenses, including, but not limited  to,  expenses  in  the
    17  2017  --  2018  fiscal  year  for personal and non-personal services and
    18  fringe benefits, to the chair of the public service commission  for  the
    19  chair's  review pursuant to the provisions of section 18-a of the public
    20  service law.
    21    § 5. Notwithstanding any other law, rule or regulation to the  contra-
    22  ry,  expenses  of  the  department  of  health  public service education
    23  program incurred pursuant to appropriations from  the  cable  television
    24  account of the state miscellaneous special revenue funds shall be deemed
    25  expenses  of  the department of public service. No later than August 15,
    26  2018, the commissioner of the  department  of  health  shall  submit  an
    27  accounting  of  expenses in the 2017 -- 2018 fiscal year to the chair of
    28  the public service commission for the chair's  review  pursuant  to  the
    29  provisions of section 217 of the public service law.
    30    §  6.  This  act  shall take effect immediately and shall be deemed to
    31  have been in full force and effect on and after April 1, 2017.
 
    32                                   PART W
 
    33    Section 1. Section 2 of part BB of chapter 58 of  the  laws  of  2012,
    34  amending the public authorities law relating to authorizing the dormito-
    35  ry  authority  to  enter into certain design and construction management
    36  agreements, as amended by section 1 of part S of chapter 58 of the  laws
    37  of 2015, is amended to read as follows:
    38    §  2.  This act shall take effect immediately [and shall expire and be
    39  deemed repealed April 1, 2017].
    40    § 2. This act shall take effect immediately.
 
    41                                   PART X
 
    42    Section 1. Legislative findings. In order to increase the authority of
    43  the superintendent of financial services to respond to the harm posed by
    44  impaired insurers in this state, the legislature finds that it is in the
    45  best interest of the people of this state  to  enact  an  administrative
    46  supervision  statute.  The  superintendent of financial services has the
    47  right and responsibility to enforce the insurance law and the  authority
    48  to  seek  redress  against  any person responsible for the impairment or
    49  insolvency of the insurer, and  nothing  in  this  act  is  intended  to
    50  restrict or limit such right, responsibility, or authority.
    51    § 2. The insurance law is amended by adding a new section 1123 to read
    52  as follows:

        S. 2008--A                         96                         A. 3008--A
 
     1    §  1123.  Administrative  supervision.    (a) For the purposes of this
     2  subsection, "insurer" shall have the meaning set forth in paragraph  one
     3  of  subsection  (b)  of  section seven thousand four hundred one of this
     4  chapter, and shall include a licensed United States branch of  an  alien
     5  insurer entered through this state.
     6    (b)(1) The superintendent may issue an order placing a domestic insur-
     7  er  under  administrative  supervision  if the superintendent determines
     8  that one or more of the conditions set forth in section  seven  thousand
     9  four  hundred two of this chapter exists. Upon such a determination, the
    10  superintendent shall furnish the insurer with a written list of require-
    11  ments to abate the condition or conditions within the time specified  in
    12  the  order, which shall not exceed one hundred eighty days. The domestic
    13  insurer may challenge the order by requesting an administrative  hearing
    14  pursuant  to  the  adjudicatory proceeding rules in article three of the
    15  state administrative procedure act and regulations  promulgated  by  the
    16  superintendent  but  the  order  shall  remain  in full force and effect
    17  during the course of the adjudicatory proceeding.  Upon issuance of  the
    18  order,  the  superintendent  shall  advise  such domestic insurer of its
    19  right to request a hearing challenging the order pursuant to the adjudi-
    20  catory proceeding rules in article three  of  the  state  administrative
    21  procedure act and regulations promulgated by the superintendent.
    22    (2)  If,  at  the end of the period specified in the order, the super-
    23  intendent determines that the condition or conditions that gave rise  to
    24  the  order  still exists or exist, then administrative supervision shall
    25  continue. The insurer may request a hearing to challenge the superinten-
    26  dent's determination to continue administrative supervision.
    27    (3) If the superintendent determines that the condition or  conditions
    28  that  gave rise to administrative supervision no longer exists or exist,
    29  then the superintendent shall release the insurer from supervision.
    30    (c) During the period of supervision, the superintendent may  prohibit
    31  the insurer from engaging in any of the following activities without the
    32  superintendent's prior approval:
    33    (1)  disposing  of, conveying, or encumbering any of its assets or its
    34  business in force;
    35    (2) withdrawing any funds from its bank accounts;
    36    (3) lending any of its funds;
    37    (4) investing any of its funds;
    38    (5) paying any claims;
    39    (6) transferring any of its property;
    40    (7) incurring any debt, obligation, or liability;
    41    (8) merging or consolidating with another company;
    42    (9) approving new premiums or renewing any policies;
    43    (10) entering into any new reinsurance contract or treaty;
    44    (11) terminating, surrendering, forfeiting, converting, or lapsing any
    45  insurance policy, certificate, or contract,  except  for  nonpayment  of
    46  premiums due;
    47    (12) releasing, paying, or refunding premium deposits, accrued cash or
    48  loan values, unearned premiums, or other reserves on any insurance poli-
    49  cy, certificate, or contract;
    50    (13) making any material change in management;
    51    (14)  increasing salaries and benefits of officers or directors or the
    52  payment of bonuses, dividends, or other payments; or
    53    (15) such other activities  that  the  superintendent  determines  are
    54  necessary to protect policyholders or the people of this state.

        S. 2008--A                         97                         A. 3008--A

     1    (d)  The  superintendent  may appoint as administrative supervisor, at
     2  the insurer's expense, one or more persons not employed by  any  insurer
     3  or interested in such insurer, except as a policyholder.
     4    (e)(1)  The  expenses  of  administrative supervision pursuant to this
     5  subsection shall be borne and paid by the insurer so supervised.
     6    (2) In the event that an insurer becomes subject to a proceeding under
     7  article seventy-four of this chapter within one year of the  superinten-
     8  dent  releasing the insurer from administrative supervision, all accrued
     9  and outstanding expenses  incurred  in  connection  with  administrative
    10  supervision  shall be treated as actual and necessary costs and expenses
    11  of the administration of such proceeding under article  seventy-four  of
    12  this chapter.
    13    (f)  All  matters pertaining to a proceeding or determination pursuant
    14  to this subsection shall be confidential and not subject to subpoena  or
    15  public  inspection  under  article six of the public officers law or any
    16  other statute, except  to  the  extent  that  the  superintendent  finds
    17  release of information necessary to protect the public.
    18    (g)  Nothing  in  this subsection shall be construed as precluding the
    19  superintendent from initiating judicial proceedings to place an  insurer
    20  in    rehabilitation,    liquidation,   conservation,   or   dissolution
    21  proceedings.
    22    § 3. Subsection (a) of section 1309 of the insurance law is amended to
    23  read as follows:
    24    (a) Whenever the superintendent finds from a  financial  statement  or
    25  report  on  examination  that an authorized insurer is unable to pay its
    26  outstanding lawful obligations as they mature in the regular  course  of
    27  business,  as  shown by an excess of required reserves and other liabil-
    28  ities over admitted assets, or by its not having  sufficient  assets  to
    29  reinsure  all  outstanding  risks with other solvent authorized assuming
    30  insurers after paying all accrued claims owed,  such  insurer  shall  be
    31  deemed  insolvent and the superintendent may proceed against it pursuant
    32  to the provisions of article seventy-four of this chapter or  may  place
    33  the  insurer  under  administrative  supervision pursuant to section one
    34  thousand one hundred twenty-three of this chapter.
    35    § 4. Subsection (a) of section 1310 of the insurance law is amended to
    36  read as follows:
    37    (a) Whenever the superintendent finds from a financial statement, or a
    38  report on examination, of any domestic stock insurer that [(i)] (1)  the
    39  admitted  assets  are  less than the aggregate amount of its liabilities
    40  and outstanding capital stock or [(ii)] (2) the admitted assets  of  any
    41  such  insurer  [which] that is required to maintain a minimum surplus to
    42  policyholders are less than the aggregate amount of its liabilities  and
    43  the amount of its minimum surplus to policyholders, [he] the superinten-
    44  dent  shall determine the amount of the impairment and order the insurer
    45  to eliminate the impairment within such period as [he]  the  superinten-
    46  dent  designates,  not  more  than  ninety  days from the service of the
    47  order.  [He] The superintendent may also order the insurer not to  issue
    48  any  new  policies  while  the  impairment  exists. If the impairment as
    49  determined by the provisions of [item (i) hereof] paragraph one of  this
    50  subsection  equals  or  exceeds  twenty-five  percent  of  the insurer's
    51  outstanding capital stock, or as determined by the provisions  of  [item
    52  (i) or (ii) hereof] paragraph one or two of this subsection is such that
    53  the  insurer  does  not  have  the minimum capital or minimum surplus to
    54  policyholders required by this chapter, and if at the expiration of such
    55  designated period, such insurer has  not  satisfied  the  superintendent
    56  that such impairment has been eliminated, the superintendent may proceed

        S. 2008--A                         98                         A. 3008--A
 
     1  against  the  insurer pursuant to the provisions of article seventy-four
     2  of this chapter on the ground  that  its  condition  is  such  that  its
     3  further  transaction  of business will be hazardous to its policyholders
     4  or  its  creditors  or  the  public  or the superintendent may place the
     5  insurer under administrative supervision pursuant to section  one  thou-
     6  sand one hundred twenty-three of this chapter.
     7    § 5. Subsection (c) of section 1311 of the insurance law is amended to
     8  read as follows:
     9    (c) If the impairment so determined is such that such insurer does not
    10  have  the  minimum  surplus  required  for  item (iii) of subsection (a)
    11  [hereof] of this section, and if when such designated period expires the
    12  insurer has not satisfied the superintendent that  such  impairment  has
    13  been  eliminated,  the  superintendent  may proceed against such insurer
    14  pursuant to the provisions of article seventy-four of  this  chapter  on
    15  the ground that its further transaction of business will be hazardous to
    16  its policyholders, its creditors or the public or the superintendent may
    17  place  the  insurer under administrative supervision pursuant to section
    18  one thousand one hundred twenty-three of this chapter.
    19    § 6. Paragraph 2 of subsection (c) of section 1312  of  the  insurance
    20  law is amended to read as follows:
    21    (2)  If  at  the expiration of such designated period such insurer has
    22  not satisfied the superintendent that such impairment  has  been  elimi-
    23  nated,  the  superintendent may proceed against such insurer pursuant to
    24  the provisions of article seventy-four of this  chapter  as  an  insurer
    25  whose  condition is such that its further transaction of business in the
    26  United States will be hazardous to its policyholders, its  creditors  or
    27  the  public  in  the  United  States or the superintendent may place the
    28  insurer under administrative supervision pursuant to subsection  (b)  of
    29  section one thousand one hundred twenty-three of this chapter.
    30    § 7. This act shall take effect immediately.
 
    31                                   PART Y
 
    32    Section  1.  Subsections  (c)  and (d) of section 109 of the insurance
    33  law, paragraph 1 of subsection (c) as amended by section 55 of part A of
    34  chapter 62 of the laws of 2011, is amended and a new subsection  (e)  is
    35  added to read as follows:
    36    (c)  (1) If the superintendent finds after notice and hearing that any
    37  [authorized] insurer, representative of the insurer,  [licensed]  insur-
    38  ance  agent,  [licensed]  insurance  broker, [licensed] adjuster, or any
    39  other person or entity [licensed, certified, registered,  or  authorized
    40  pursuant]  subject to this chapter, has wilfully violated the provisions
    41  of this chapter or  any  regulation  promulgated  thereunder,  then  the
    42  superintendent  may  order  the person or entity to pay to the people of
    43  this state a penalty in a sum not exceeding [one] the greater of (A) ten
    44  thousand dollars for each offense; (B)  a  multiple  of  two  times  the
    45  aggregate  damages  attributable  to the violation; or (C) a multiple of
    46  two times the aggregate economic gain attributable to the violation. The
    47  superintendent may promulgate regulations implementing the terms of this
    48  subsection.
    49    (2) Failure to pay such penalty within thirty days  after  the  order,
    50  unless it is suspended by an order of a court of competent jurisdiction,
    51  shall constitute a further violation of the provisions of this chapter.
    52    (3) No penalty shall be imposed pursuant to this subsection if a mone-
    53  tary penalty is otherwise provided in this chapter.

        S. 2008--A                         99                         A. 3008--A
 
     1    (d)  (1) The superintendent may maintain a civil action in the name of
     2  the people of the state to  recover  a  judgment  for  a  money  penalty
     3  imposed  by law or to enforce any order issued by the superintendent for
     4  the violation of any provision of this chapter.
     5    (2)  Notwithstanding  any law to the contrary, the superintendent may,
     6  in his or her sole discretion, either (A) prosecute any such action  and
     7  retain charge and control of the action; or (B) refer such action to the
     8  department of law for prosecution.
     9    (e)  Any  person  or  entity  that  is  required by this chapter to be
    10  licensed, certified, registered, or authorized shall be subject  to  the
    11  laws of this chapter and the penalties contained herein as if the person
    12  or entity was so licensed, certified, registered, or authorized, even if
    13  the  person  or  entity  does  not possess the required license, certif-
    14  ication, registration, or authorization.
    15    § 2. Section 44 of the banking law is amended by adding two new subdi-
    16  visions 10 and 11 to read as follows:
    17    10. The superintendent may maintain a civil action in the name of  the
    18  people  of  the state to recover a judgement for a money penalty imposed
    19  by law or to enforce any order issued  by  the  superintendent  for  the
    20  violation  of  any provision of this chapter. Notwithstanding any law to
    21  the contrary, the superintendent may, in his or her  discretion,  either
    22  (a)  prosecute  any  such  action  and  retain charge and control of the
    23  action; or (b) refer such action to the department  of  law  for  prose-
    24  cution.
    25    11.  Any person or entity who engages in activity that is regulated in
    26  this chapter without being licensed, certified, registered,  authorized,
    27  chartered,  accredited,  incorporated or otherwise obtaining any permis-
    28  sion of the superintendent required by this chapter before  engaging  in
    29  such  activity  shall  be  subject  to  the laws of this chapter and the
    30  penalties contained herein as if the person or entity was  so  licensed,
    31  certified,  registered, authorized, chartered, accredited, incorporated,
    32  or otherwise approved by the superintendent.
    33    § 3. Subsection (a) of section 309 of the financial  services  law  is
    34  amended and a new subsection (c) is added to read as follows:
    35    (a)  In  addition  to  such  other remedies as are provided under this
    36  chapter, the superintendent may maintain and prosecute an action against
    37  any person subject to this chapter, the insurance  law  or  the  banking
    38  law,  or  the  person's officers, directors, trustees or agents, for the
    39  purpose of obtaining an injunction restraining such  person  or  persons
    40  from  doing any acts in violation of the provisions of this chapter, the
    41  insurance law or the banking law. The superintendent may  commence  such
    42  action  against  any  person or entity that is required by this chapter,
    43  the banking law, or the insurance law to be licensed, certified,  regis-
    44  tered,  authorized,  chartered,  accredited,  or incorporated, as if the
    45  person or entity was so  licensed,  certified,  registered,  authorized,
    46  chartered,  accredited,  or  incorporated,  even if the person or entity
    47  does not possess  the  required  license,  certification,  registration,
    48  authorization, charter, accreditation, or incorporation.
    49    (c)  Notwithstanding  any law to the contrary, the superintendent may,
    50  in his or her discretion, either  (i)  prosecute  any  such  action  and
    51  retain  charge  and  control of the action; or (ii) refer such action to
    52  the department of law for prosecution.
    53    § 4. This act shall take effect immediately.
 
    54                                   PART Z

        S. 2008--A                         100                        A. 3008--A
 
     1    Section 1. The banking law is amended by adding a new article 14-A  to
     2  read as follows:
     3                                ARTICLE XIV-A
     4                           STUDENT LOAN SERVICERS
     5  Section 710. Definitions.
     6          711. Licensing.
     7          712. Application for a student loan servicer license; fees.
     8          713. Application  process  to  receive  license to engage in the
     9                 business of student loan servicing.
    10          714. Changes in officers and directors.
    11          715. Changes in control.
    12          716. Grounds for suspension or revocation of license.
    13          717. Books and records; reports and electronic filing.
    14          718. Rules and regulations.
    15          719. Prohibited practices.
    16          720. Servicing student loans without a license.
    17          721. Responsibilities.
    18          722. Examinations.
    19          723. Penalties for violation of this article.
    20          724. Severability of provisions.
    21          725. Compliance with other laws.
    22    § 710. Definitions. 1. "Applicant" shall mean any person applying  for
    23  a license to be a student loan servicer.
    24    2. "Borrower" shall mean any resident of this state who has received a
    25  student  loan  or  agreed to pay a student loan or any person who shares
    26  responsibility with such resident for repaying a student loan.
    27    3. "Borrower benefit" shall mean an incentive offered to a borrower in
    28  connection with the origination of a student  loan,  including  but  not
    29  limited  to  an interest rate reduction, principal rebate, fee waiver or
    30  rebate, loan cancellation, or cosigner release.
    31    4. "Exempt organization" shall mean any banking organization,  foreign
    32  banking corporation, national bank, federal savings association, federal
    33  credit union, or any bank, trust company, savings bank, savings and loan
    34  association,  or  credit  union  organized  under  the laws of any other
    35  state, or  any  person  exempted  by  the  superintendent  of  financial
    36  services  pursuant  to  regulations  promulgated in accordance with this
    37  article.
    38    5. "Person"  shall  mean  any  individual,  association,  corporation,
    39  limited  liability company, partnership, trust, unincorporated organiza-
    40  tion, government or political subdivision of a government, and any other
    41  entity.
    42    6. "Servicer" or "student loan servicer" shall mean a person  licensed
    43  pursuant  to  section  seven hundred eleven of this article to engage in
    44  the business of servicing any student loan of a borrower.
    45    7. "Servicing" shall mean:
    46    (a) receiving any payment from a borrower pursuant to the terms of any
    47  student loan;
    48    (b) applying any payment to a borrower's account pursuant to the terms
    49  of a student loan or the contract governing the servicing  of  any  such
    50  loan;
    51    (c) providing any notification of amounts owed on a student loan by or
    52  on account of any borrower;
    53    (d)  during a period when a borrower is not required to make a payment
    54  on a student loan, maintaining account records for the student loan  and
    55  communicating  with the borrower regarding the student loan on behalf of
    56  the owner of the student loan promissory note;

        S. 2008--A                         101                        A. 3008--A
 
     1    (e) interacting with a borrower  with  respect  to  or  regarding  any
     2  attempt to avoid default on the borrower's student loan, or facilitating
     3  the activities described in paragraph (a) or (b) of this subdivision; or
     4    (f) performing other administrative services with respect to a borrow-
     5  er's student loan.
     6    8. "Student loan" shall mean any loan to a borrower to finance postse-
     7  condary education or expenses related to postsecondary education.
     8    § 711. Licensing. 1. No person shall engage in the business of servic-
     9  ing  student  loans owed by one or more borrowers residing in this state
    10  without first being licensed by the superintendent  as  a  student  loan
    11  servicer  in accordance with this article and such regulations as may be
    12  prescribed by the superintendent.
    13    2. The licensing provisions of this subdivision shall not apply to any
    14  exempt organization, or any person that shall be exempted in  accordance
    15  with  regulations  prescribed  by the superintendent hereunder; provided
    16  that such exempt  organization  notifies  the  superintendent  that  the
    17  exempt  organization  is acting as a student loan servicer in this state
    18  and complies with sections seven  hundred  nineteen  and  seven  hundred
    19  twenty-one of this article and any regulation applicable to student loan
    20  servicers promulgated by the superintendent.
    21    §  712. Application for a student loan servicer license; fees. 1.  The
    22  application for a license to be a student  loan  servicer  shall  be  in
    23  writing,  under  oath, and in the form prescribed by the superintendent.
    24  Notwithstanding article three of the state technology law or  any  other
    25  law  to the contrary, the superintendent may require that an application
    26  for a license or any other submission or application for approval as may
    27  be required by this article be made or executed by electronic  means  if
    28  he  or  she  deems  it  necessary  to ensure the efficient and effective
    29  administration  of  this  article.  The  application  shall  include   a
    30  description  of  the activities of the applicant, in such detail and for
    31  such periods as the superintendent may require, including:
    32    (a) an affirmation of financial solvency  noting  such  capitalization
    33  requirements  as  may  be  required by the superintendent, and access to
    34  such credit as may be required by the superintendent;
    35    (b) a financial statement prepared by a certified  public  accountant,
    36  the  accuracy  of which is sworn to under oath before a notary public by
    37  an officer or other representative of the applicant who is authorized to
    38  execute such documents;
    39    (c) the fingerprints of the applicant, or its members, officers, part-
    40  ners, directors and principals as  may  be  appropriate,  which  may  be
    41  submitted  to  the division of criminal justice services and the federal
    42  bureau of investigation for state and national criminal  history  record
    43  checks;
    44    (d) an affirmation that the applicant, or its members, officers, part-
    45  ners, directors and principals as may be appropriate, are at least twen-
    46  ty-one years of age;
    47    (e)  information  as to the character, fitness, financial and business
    48  responsibility, background and experiences  of  the  applicant,  or  its
    49  members,  officers,  partners, directors and principals as may be appro-
    50  priate;
    51    (f) any additional detail or information required by  the  superinten-
    52  dent.
    53    2. An application to become a student loan servicer or any application
    54  with respect to a student loan servicer shall be accompanied by a fee as
    55  prescribed pursuant to section eighteen-a of this chapter.

        S. 2008--A                         102                        A. 3008--A
 
     1    §  713.  Application process to receive license to engage in the busi-
     2  ness of student loan servicing. 1. Upon the filing of an application for
     3  a license, if the superintendent shall find that the financial responsi-
     4  bility, experience, character, and general fitness of the applicant and,
     5  if applicable, the members, officers, partners, directors and principals
     6  of  the applicant are such as to command the confidence of the community
     7  and to warrant belief that the business will be operated honestly, fair-
     8  ly, and efficiently within the purpose of this article, the  superinten-
     9  dent shall thereupon issue a license in duplicate to engage in the busi-
    10  ness  of  servicing student loans described in section seven hundred ten
    11  of this article in accordance with the provisions of  this  article.  If
    12  the superintendent shall not so find, the superintendent shall not issue
    13  a  license,  and  the  superintendent shall so notify the applicant. The
    14  superintendent shall transmit one copy of a license to the applicant and
    15  file another copy in the office of the department of financial services.
    16  Upon receipt of such license, a student loan servicer shall  be  author-
    17  ized  to engage in the business of servicing student loans in accordance
    18  with the provisions of this article. Such license shall remain  in  full
    19  force  and  effect until it is surrendered by the servicer or revoked or
    20  suspended as hereinafter provided.
    21    2. The superintendent may refuse to issue a license pursuant  to  this
    22  article if he or she shall find that the applicant, or any person who is
    23  a  director,  officer,  partner,  agent,  employee,  member, substantial
    24  stockholder of the applicant, consultant or person having a relationship
    25  with the applicant similar to a consultant:
    26    (a) has been convicted of a crime involving an  activity  which  is  a
    27  felony  under  this chapter or under article one hundred fifty-five, one
    28  hundred seventy, one hundred seventy-five, one hundred seventy-six,  one
    29  hundred  eighty,  one hundred eighty-five, one hundred eighty-seven, one
    30  hundred ninety, two hundred, two hundred ten or four hundred seventy  of
    31  the penal law or any comparable felony under the laws of any other state
    32  or  the  United  States,  provided  that such crime would be a felony if
    33  committed and prosecuted under the laws of this state;
    34    (b) has had a license or registration revoked by the superintendent or
    35  any other regulator or jurisdiction;
    36    (c) has been an officer,  director,  partner,  member  or  substantial
    37  stockholder of an entity which has had a license or registration revoked
    38  by the superintendent or any other regulator or jurisdiction; or
    39    (d)  has been an agent, employee, officer, director, partner or member
    40  of an entity, or a  consultant  to,  or  person  having  had  a  similar
    41  relationship  with,  any  entity which has had a license or registration
    42  revoked by the superintendent where such person shall have been found by
    43  the superintendent to bear responsibility in connection with the revoca-
    44  tion.
    45    3. The term "substantial stockholder", as used  in  this  subdivision,
    46  shall  be  deemed to refer to a person owning or controlling directly or
    47  indirectly ten per centum or more of the total outstanding  stock  of  a
    48  corporation.
    49    §  714.  Changes  in officers and directors. Upon any change of any of
    50  the executive officers, directors, partners or members  of  any  student
    51  loan servicer, the student loan servicer shall submit to the superinten-
    52  dent  the  name,  address, and occupation of each new officer, director,
    53  partner or member, and provide such other information as the superinten-
    54  dent may require.
    55    § 715. Changes in control. 1. It shall be unlawful,  except  with  the
    56  prior  approval  of the superintendent, for any action to be taken which

        S. 2008--A                         103                        A. 3008--A
 
     1  results in a change of control of the business of a student loan  servi-
     2  cer.  Prior  to  any change of control, the person desirous of acquiring
     3  control of the business of a student loan servicer  shall  make  written
     4  application  to  the  superintendent  and  pay  an  investigation fee as
     5  prescribed pursuant to section eighteen-a of this chapter to the  super-
     6  intendent.  The application shall contain such information as the super-
     7  intendent, by rule or regulation, may prescribe as necessary  or  appro-
     8  priate   for  the  purpose  of  making  the  determination  required  by
     9  subdivision two of this section. Such information shall include, but not
    10  be limited to, the information and other material required for a student
    11  loan servicer by subdivision one of section seven hundred twelve of this
    12  article.
    13    2. The superintendent shall approve or disapprove the proposed  change
    14  of  control of a student loan servicer in accordance with the provisions
    15  of section seven hundred thirteen of this article.
    16    3. For a period of six months from the date of  qualification  thereof
    17  and  for  such  additional  period  of  time  as  the superintendent may
    18  prescribe, in writing, the provisions of subdivisions  one  and  two  of
    19  this  section  shall  not apply to a transfer of control by operation of
    20  law to the legal representative, as hereinafter defined, of one who  has
    21  control  of  a  student  loan servicer. Thereafter, such legal represen-
    22  tative shall comply with the provisions of subdivisions one and  two  of
    23  this section. The provisions of subdivisions one and two of this section
    24  shall be applicable to an application made under this section by a legal
    25  representative.  The  term  "legal  representative", for the purposes of
    26  this subdivision, shall mean a person  duly  appointed  by  a  court  of
    27  competent  jurisdiction  to  act  as  executor,  administrator, trustee,
    28  committee, conservator or receiver, including a person  who  succeeds  a
    29  legal representative and a person acting in an ancillary capacity there-
    30  to in accordance with the provisions of such court appointment.
    31    4.  As  used  in this section the term "control" means the possession,
    32  directly or indirectly, of the power to direct or cause the direction of
    33  the management and policies of a student loan servicer, whether  through
    34  the  ownership of voting stock of such student loan servicer, the owner-
    35  ship of voting stock of any person which possesses such power or  other-
    36  wise.  Control  shall  be  presumed  to exist if any person, directly or
    37  indirectly, owns, controls or holds with power to vote ten per centum or
    38  more of the voting stock of any student loan servicer or of  any  person
    39  which  owns, controls or holds with power to vote ten per centum or more
    40  of the voting stock of any student loan servicer, but no person shall be
    41  deemed to control a student loan servicer solely by reason of  being  an
    42  officer  or  director  of such student loan servicer. The superintendent
    43  may in his discretion, upon the application of a student  loan  servicer
    44  or  any person who, directly or indirectly, owns, controls or holds with
    45  power to vote or seeks to own, control or hold with power  to  vote  any
    46  voting stock of such student loan servicer, determine whether or not the
    47  ownership,  control or holding of such voting stock constitutes or would
    48  constitute control of such student loan servicer for  purposes  of  this
    49  section.
    50    §  716. Grounds for suspension or revocation of license. 1. The super-
    51  intendent may revoke any license to engage in the business of a  student
    52  loan  servicer  issued  pursuant to this article if he or she shall find
    53  that:
    54    (a) a servicer has violated any provision of this article, any rule or
    55  regulation promulgated  by  the  superintendent  under  and  within  the
    56  authority of this article, or any other applicable law;

        S. 2008--A                         104                        A. 3008--A
 
     1    (b)  any fact or condition exists which, if it had existed at the time
     2  of the original application for such license, would have  warranted  the
     3  superintendent refusing originally to issue such license;
     4    (c) a servicer does not cooperate with an examination or investigation
     5  by the superintendent;
     6    (d)  a  servicer  engages  in fraud, intentional misrepresentation, or
     7  gross negligence in servicing a student loan;
     8    (e) the competence, experience, character, or general fitness  of  the
     9  servicer, an individual controlling, directly or indirectly, ten percent
    10  or  more  of  the  outstanding  interests, or any person responsible for
    11  servicing a student loan for the servicer indicates that it  is  not  in
    12  the public interest to permit the servicer to continue servicing student
    13  loans;
    14    (f) the servicer engages in unsafe or injurious practice;
    15    (g) the servicer is insolvent, suspends payment of its obligations, or
    16  makes a general assignment for the benefit of its creditors; or
    17    (h)  a  servicer  has violated the laws of this state, any other state
    18  law or any federal law involving fraudulent or dishonest dealing,  or  a
    19  final  judgment  has  been  entered against a student loan servicer in a
    20  civil action upon grounds of fraud, misrepresentation or deceit.
    21    2. As a part of his or her determination regarding suspension or revo-
    22  cation, the superintendent is authorized to require  the  fingerprinting
    23  of  any  person,  officer,  director,  partner,  member or employee of a
    24  student loan servicer. Such fingerprints shall be submitted to the divi-
    25  sion of criminal justice services for a state  criminal  history  record
    26  check  and may be submitted to the federal bureau of investigation for a
    27  national criminal history record check.
    28    3. The superintendent may, on good cause shown, or where  there  is  a
    29  substantial  risk  of  public harm, suspend any license for a period not
    30  exceeding thirty days, pending investigation. "Good cause", as  used  in
    31  this subdivision, shall exist when a student loan servicer has defaulted
    32  or  is  likely  to  default  in  performing its financial engagements or
    33  engages in dishonest or inequitable practices which may  cause  substan-
    34  tial harm to the persons afforded the protection of this article.
    35    4. Except as provided in subdivision three of this section, no license
    36  shall be revoked or suspended except after notice and a hearing thereon.
    37  Any order of suspension issued after notice and a hearing may include as
    38  a  condition of reinstatement that the student loan servicer make resti-
    39  tution to consumers of fees or other charges which have been  improperly
    40  charged  or  collected,  including  but  not  limited  to  by allocating
    41  payments contrary to a borrower's direction or in a manner that fails to
    42  help a borrower avoid default, as determined by the superintendent.  Any
    43  hearing  held  pursuant  to  the  provisions  of  this  section shall be
    44  noticed, conducted and administered in compliance with the state  admin-
    45  istrative procedure act.
    46    5.  Any  student loan servicer may surrender any license by delivering
    47  to the superintendent written notice  that  the  student  loan  servicer
    48  thereby surrenders such license, but such surrender shall not affect the
    49  servicer's  civil  or criminal liability for acts committed prior to the
    50  surrender. If such surrender is made after the issuance  by  the  super-
    51  intendent  of  a  statement of charges and notice of hearing, the super-
    52  intendent may proceed against the servicer as if the surrender  had  not
    53  taken place.
    54    6. No revocation, suspension, or surrender of any license shall impair
    55  or affect the obligation of any pre-existing lawful contract between the

        S. 2008--A                         105                        A. 3008--A
 
     1  student loan servicer and any person, including the department of finan-
     2  cial services.
     3    7.  Every license issued pursuant to this article shall remain in full
     4  force and effect until the same shall have been surrendered, revoked  or
     5  suspended in accordance with any other provisions of this article.
     6    8.  Whenever  the  superintendent  shall  revoke  or suspend a license
     7  issued pursuant to this article, he or she shall  forthwith  execute  in
     8  duplicate  a written order to that effect. The superintendent shall file
     9  one copy of the order in the  office  of  the  department  of  financial
    10  services  and shall forthwith serve the other copy upon the student loan
    11  servicer. Any such order may be reviewed in the manner provided by arti-
    12  cle seventy-eight of the civil practice law and  rules.  An  application
    13  for review as authorized by this section must be made within thirty days
    14  from the date of the order of suspension or revocation.
    15    §  717.  Books  and  records;  reports  and electronic filing. 1. Each
    16  student loan servicer and exempt organization shall keep and use in  its
    17  business such books, accounts and records as will enable the superinten-
    18  dent to determine whether the servicer or exempt organization is comply-
    19  ing  with  the  provisions  of this article and with the rules and regu-
    20  lations lawfully made by the superintendent. Every servicer  and  exempt
    21  organization  shall  preserve  such books, accounts, and records, for at
    22  least three years.
    23    2. (a) Each student loan servicer shall annually, on or before a  date
    24  to  be  determined  by the superintendent, file a report with the super-
    25  intendent giving such information  as  the  superintendent  may  require
    26  concerning  the  business  and  operations during the preceding calendar
    27  year of such servicer under authority of this article. Such report shall
    28  be subscribed and affirmed as true by the servicer under  the  penalties
    29  of perjury and shall be in the form prescribed by the superintendent.
    30    (b) In addition to annual reports, the superintendent may require such
    31  additional regular or special reports as he or she may deem necessary to
    32  the  proper  supervision  of  student loan servicers under this article.
    33  Such additional reports shall be subscribed and affirmed as true by  the
    34  servicer  under  the  penalties  of  perjury  and  shall  be in the form
    35  prescribed by the superintendent.
    36    3. Notwithstanding article three of the state technology  law  or  any
    37  other  law  to  the  contrary,  the  superintendent may require that any
    38  submission or approval as may be required by the superintendent be  made
    39  or  executed  by  electronic  means  if  he or she deems it necessary to
    40  ensure the efficient administration of this article.
    41    § 718. Rules and regulations. 1. In addition to  such  powers  as  may
    42  otherwise  be  prescribed  by this chapter, the superintendent is hereby
    43  authorized and empowered to promulgate such rules and regulations as may
    44  in the judgment of the superintendent be consistent with the purposes of
    45  this article, or appropriate for the effective  administration  of  this
    46  article, including, but not limited to:
    47    (a)  Such  rules  and regulations in connection with the activities of
    48  student loan servicers and exempt organizations as may be necessary  and
    49  appropriate for the protection of borrowers in this state.
    50    (b)  Such rules and regulations as may be necessary and appropriate to
    51  define unfair, deceptive or abusive acts or practices in connection with
    52  the activities of student loan servicers  and  exempt  organizations  in
    53  servicing student loans.
    54    (c)  Such  rules  and regulations as may define the terms used in this
    55  article and as may be necessary and appropriate to interpret and  imple-
    56  ment the provisions of this article.

        S. 2008--A                         106                        A. 3008--A
 
     1    (d) Such rules and regulations as may be necessary for the enforcement
     2  of this article.
     3    2.  The superintendent is hereby authorized and empowered to make such
     4  specific rulings, demands and findings as the  superintendent  may  deem
     5  necessary for the proper conduct of the student loan servicing industry.
     6    § 719. Prohibited practices. No student loan servicer shall:
     7    1.  Directly  or  indirectly  employ any scheme, device or artifice to
     8  defraud or mislead a borrower.
     9    2. Engage in any unfair, deceptive or predatory act or practice toward
    10  any  person  or  misrepresent  or  omit  any  material  information   in
    11  connection  with  the  servicing  of  a student loan, including, but not
    12  limited to, misrepresenting the amount, nature or terms of  any  fee  or
    13  payment due or claimed to be due on a student loan, the terms and condi-
    14  tions  of  the  loan  agreement  or the borrower's obligations under the
    15  loan.
    16    3. Misapply payments to the outstanding balance of any student loan or
    17  to any related interest or fees.
    18    4. Provide inaccurate information to a consumer reporting agency.
    19    5. Refuse to communicate with  an  authorized  representative  of  the
    20  borrower  who  provides  a written authorization signed by the borrower,
    21  provided that the servicer may adopt procedures  reasonably  related  to
    22  verifying that the representative is in fact authorized to act on behalf
    23  of the borrower.
    24    6. Make any false statement or make any omission of a material fact in
    25  connection  with  any  information  or reports filed with a governmental
    26  agency or in connection with any investigation conducted by  the  super-
    27  intendent or another governmental agency.
    28    §  720. Servicing student loans without a license. 1. Whenever, in the
    29  opinion of the superintendent, a person is engaged in  the  business  of
    30  servicing  student loans, either actually or through subterfuge, without
    31  a license from the superintendent, the  superintendent  may  order  that
    32  person  to desist and refrain from engaging in the business of servicing
    33  student loans in the state. If, within thirty days  after  an  order  is
    34  served,  a  request for a hearing is filed in writing and the hearing is
    35  not held within sixty days of the filing, the order shall be rescinded.
    36    2. The superintendent may maintain a civil action to enforce any order
    37  issued by the superintendent pursuant to this section.
    38    3. This section shall not apply to exempt organizations.
    39    § 721. Responsibilities. 1.  If  a  student  loan  servicer  regularly
    40  reports  information  to a consumer reporting agency, the servicer shall
    41  accurately report a borrower's  payment  performance  to  at  least  one
    42  consumer reporting agency that compiles and maintains files on consumers
    43  on  a  nationwide basis as defined in Section 603(p) of the federal Fair
    44  Credit Reporting Act (15 U.S.C. Sec. 1681a(p)),  upon  acceptance  as  a
    45  data furnisher by that consumer reporting agency.
    46    2. (a) Except as provided in federal law or required by a student loan
    47  agreement,  a  student  loan servicer shall inquire of a borrower how to
    48  apply a borrower's nonconforming payment. A borrower's direction on  how
    49  to  apply  a nonconforming payment shall remain in effect for any future
    50  nonconforming payment during the  term  of  a  student  loan  until  the
    51  borrower provides different directions.
    52    (b)  For  purposes  of this subdivision, "nonconforming payment" shall
    53  mean a payment that is either more or less than the borrower's  required
    54  student loan payment.
    55    3.  (a) If the sale, assignment, or other transfer of the servicing of
    56  a student loan results in a change in the identity of the person to whom

        S. 2008--A                         107                        A. 3008--A
 
     1  the borrower is required to  send  subsequent  payments  or  direct  any
     2  communications  concerning  the  student  loan,  a student loan servicer
     3  shall transfer  all  information  regarding  a  borrower,  a  borrower's
     4  account, and a borrower's student loan, including but not limited to the
     5  borrower's  repayment  status  and any borrower benefits associated with
     6  the borrower's student loan, to the new student loan servicer  servicing
     7  the borrower's student loan within forty-five days.
     8    (b)  A  student  loan  servicer shall adopt policies and procedures to
     9  verify that it has received all  information  regarding  a  borrower,  a
    10  borrower's  account,  and  a  borrower's student loan, including but not
    11  limited to the borrower's repayment status  and  any  borrower  benefits
    12  associated  with  the borrower's student loan, when the servicer obtains
    13  the right to service a student loan.
    14    4. If a student loan servicer sells, assigns, or  otherwise  transfers
    15  the  servicing of a student loan to a new servicer, the sale, assignment
    16  or other transfer shall be completed at  least  seven  days  before  the
    17  borrower's next payment is due.
    18    5.  (a)  A  student  loan  servicer  that sells, assigns, or otherwise
    19  transfers the servicing of a student loan shall require as  a  condition
    20  of  such  sale,  assignment  or other transfer that the new student loan
    21  servicer shall honor all borrower  benefits  originally  represented  as
    22  being  available  to a borrower during the repayment of the student loan
    23  and the possibility of such benefits, including any benefits  that  were
    24  represented  as  being  available but for which the borrower had not yet
    25  qualified.
    26    (b) A student loan servicer  that  obtains  the  right  to  service  a
    27  student loan shall honor all borrower benefits originally represented as
    28  being  available  to a borrower during the repayment of the student loan
    29  and the possibility of such benefits, including any benefits  that  were
    30  represented  as  being  available but for which the borrower had not yet
    31  qualified.
    32    6. A student loan servicer shall  respond  within  thirty  days  after
    33  receipt  to  a written inquiry from a borrower or a borrower's represen-
    34  tative.
    35    7. A student loan servicer shall preserve records of each student loan
    36  and all communications with  borrowers  for  not  less  than  two  years
    37  following the final payment on a student loan or the sale, assignment or
    38  other  transfer  of  the  servicing  of a student loan, whichever occurs
    39  first, or such longer period as may be required by any  other  provision
    40  of law.
    41    §  722.  Examinations.  1.  The superintendent may at any time, and as
    42  often as he or she may determine, either personally or by a person  duly
    43  designated  by  the superintendent, investigate the business and examine
    44  the books, accounts, records, and files used therein  of  every  student
    45  loan  servicer.  For that purpose the superintendent and his or her duly
    46  designated representative shall have free  access  to  the  offices  and
    47  places  of  business, books, accounts, papers, records, files, safes and
    48  vaults of all student loan servicers. The superintendent and any  person
    49  duly  designated  by  him or her shall have the authority to require the
    50  attendance of and to examine under oath all persons whose  testimony  he
    51  or she may require relative to such business.
    52    2.  No  person  subject  to  investigation  or  examination under this
    53  section may knowingly withhold, abstract, remove, mutilate,  destroy  or
    54  secrete any books, records, computer records or other information.
    55    3.  The  expenses  incurred in making any examination pursuant to this
    56  section shall be assessed against and paid by the student loan  servicer

        S. 2008--A                         108                        A. 3008--A
 
     1  so  examined, except that traveling and subsistence expenses so incurred
     2  shall be charged against and paid by servicers in  such  proportions  as
     3  the  superintendent  shall  deem  just  and reasonable, and such propor-
     4  tionate  charges  shall be added to the assessment of the other expenses
     5  incurred upon each examination. Upon written notice by  the  superinten-
     6  dent  of  the total amount of such assessment, the servicer shall become
     7  liable for and shall pay such assessment to the superintendent.
     8    4. In any hearing in which a department employee acting under authori-
     9  ty of this chapter is  available  for  cross-examination,  any  official
    10  written  report, worksheet, other related papers, or duly certified copy
    11  thereof, compiled, prepared, drafted, or otherwise made by such  depart-
    12  ment  employee,  after  being duly authenticated by the employee, may be
    13  admitted as competent evidence upon the oath of the employee  that  such
    14  worksheet,   investigative  report,  or  other  related  documents  were
    15  prepared as a result of an examination of the books  and  records  of  a
    16  servicer  or  other  person, conducted pursuant to the authority of this
    17  chapter.
    18    5. Unless otherwise exempt pursuant  to  subdivision  two  of  section
    19  seven  hundred  eleven  of  this  article,  affiliates of a student loan
    20  servicer shall be subject to examination by the  superintendent  on  the
    21  same  terms  as the servicer, but only when reports from, or examination
    22  of, a servicer provides evidence of unlawful activity between a servicer
    23  and affiliate benefitting, affecting, or  arising  from  the  activities
    24  regulated by this article.
    25    § 723. Penalties for violation of this article. 1. In addition to such
    26  penalties as may otherwise be applicable by law, the superintendent may,
    27  after  notice  and  hearing,  require  any  person  found  violating the
    28  provisions of this article or the rules or regulations promulgated here-
    29  under to pay to the people of this state an additional penalty for  each
    30  violation  of  the article or any regulation or policy promulgated here-
    31  under a sum not to exceed an amount as determined  pursuant  to  section
    32  forty-four of this chapter for each such violation.
    33    2.  Nothing  in  this  article shall limit any statutory or common-law
    34  right of any person to bring any action in any court for any act, or the
    35  right of the state to punish any person for any violation of any law.
    36    § 724. Severability of provisions. If any provision of  this  article,
    37  or  the  application  of  such  provision to any person or circumstance,
    38  shall be held invalid, illegal or unenforceable, the  remainder  of  the
    39  article,  and  the  application  of such provision to persons or circum-
    40  stances other than those as to which it  is  held  invalid,  illegal  or
    41  unenforceable, shall not be affected thereby.
    42    §  725.  Compliance  with  other laws. 1. Student loan servicers shall
    43  engage in the business of servicing student loans in conformity with the
    44  provisions of this chapter, such rules and regulations as may be promul-
    45  gated by the superintendent thereunder and all applicable  federal  laws
    46  and the rules and regulations promulgated thereunder.
    47    2.  Nothing  in this section shall be construed to limit any otherwise
    48  applicable state or federal law or regulations.
    49    § 2. Subdivision 10 of section 36 of the banking law,  as  amended  by
    50  chapter 182 of the laws of 2011, is amended to read as follows:
    51    10. All reports of examinations and investigations, correspondence and
    52  memoranda  concerning  or  arising  out of such examination and investi-
    53  gations, including any duly authenticated copy or copies thereof in  the
    54  possession  of  any  banking  organization,  bank holding company or any
    55  subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
    56  iary"  are  defined in article three-A of this chapter), any corporation

        S. 2008--A                         109                        A. 3008--A

     1  or any other entity affiliated with a banking  organization  within  the
     2  meaning  of  subdivision six of this section and any non-banking subsid-
     3  iary of a corporation or any other entity which is  an  affiliate  of  a
     4  banking  organization  within  the  meaning of subdivision six-a of this
     5  section, foreign banking corporation, licensed lender,  licensed  casher
     6  of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
     7  licensed mortgage  loan  originator,  licensed  sales  finance  company,
     8  registered  mortgage  loan  servicer,  licensed  student  loan servicer,
     9  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    10  money,  licensed  budget  planner, any other person or entity subject to
    11  supervision under this chapter, or the department, shall be confidential
    12  communications, shall not be subject to subpoena and shall not  be  made
    13  public  unless,  in  the  judgment  of  the  superintendent, the ends of
    14  justice and the public advantage will be subserved  by  the  publication
    15  thereof,  in which event the superintendent may publish or authorize the
    16  publication of a copy of any such report or any  part  thereof  in  such
    17  manner  as may be deemed proper or unless such laws specifically author-
    18  ize such disclosure. For the purposes of this subdivision,  "reports  of
    19  examinations  and  investigations,  and any correspondence and memoranda
    20  concerning or arising out  of  such  examinations  and  investigations",
    21  includes any such materials of a bank, insurance or securities regulato-
    22  ry  agency  or  any unit of the federal government or that of this state
    23  any other state or that of any foreign government which  are  considered
    24  confidential  by  such agency or unit and which are in the possession of
    25  the department or which are otherwise confidential materials  that  have
    26  been  shared  by  the department with any such agency or unit and are in
    27  the possession of such agency or unit.
    28    § 3. Subdivisions 1, 2, 3 and 5 of section  39  of  the  banking  law,
    29  subdivisions  1,  2  and 5 as amended by chapter 123 of the laws of 2009
    30  and subdivision 3 as amended by chapter 155 of the  laws  of  2012,  are
    31  amended to read as follows:
    32    1.  To  appear  and  explain  an apparent violation. Whenever it shall
    33  appear to the superintendent that any banking organization, bank holding
    34  company, registered mortgage broker, licensed mortgage banker,  licensed
    35  student loan servicer, registered mortgage loan servicer, licensed mort-
    36  gage  loan  originator,  licensed  lender,  licensed  casher  of checks,
    37  licensed sales finance company, licensed insurance premium finance agen-
    38  cy, licensed transmitter of money, licensed budget planner, out-of-state
    39  state bank that maintains a branch  or  branches  or  representative  or
    40  other  offices in this state, or foreign banking corporation licensed by
    41  the superintendent to do business or maintain a representative office in
    42  this state has violated any law or regulation, he or she may, in his  or
    43  her  discretion,  issue  an order describing such apparent violation and
    44  requiring such banking organization, bank  holding  company,  registered
    45  mortgage  broker, licensed mortgage banker, licensed student loan servi-
    46  cer, licensed mortgage loan originator, licensed lender, licensed casher
    47  of checks, licensed sales finance company,  licensed  insurance  premium
    48  finance  agency, licensed transmitter of money, licensed budget planner,
    49  out-of-state state bank that maintains a branch or branches or represen-
    50  tative or other offices in this state, or foreign banking corporation to
    51  appear before him or her, at a time and place fixed in  said  order,  to
    52  present an explanation of such apparent violation.
    53    2.  To discontinue unauthorized or unsafe and unsound practices. When-
    54  ever it shall appear to the superintendent that  any  banking  organiza-
    55  tion,  bank  holding company, registered mortgage broker, licensed mort-
    56  gage banker, licensed student loan servicer,  registered  mortgage  loan

        S. 2008--A                         110                        A. 3008--A
 
     1  servicer,  licensed  mortgage loan originator, licensed lender, licensed
     2  casher of checks, licensed sales  finance  company,  licensed  insurance
     3  premium  finance  agency, licensed transmitter of money, licensed budget
     4  planner,  out-of-state state bank that maintains a branch or branches or
     5  representative or other offices in this state, or foreign banking corpo-
     6  ration licensed by the superintendent to do business in  this  state  is
     7  conducting  business in an unauthorized or unsafe and unsound manner, he
     8  or she may, in his or her  discretion,  issue  an  order  directing  the
     9  discontinuance of such unauthorized or unsafe and unsound practices, and
    10  fixing a time and place at which such banking organization, bank holding
    11  company,  registered mortgage broker, licensed mortgage banker, licensed
    12  student loan servicer, registered mortgage loan servicer, licensed mort-
    13  gage loan  originator,  licensed  lender,  licensed  casher  of  checks,
    14  licensed sales finance company, licensed insurance premium finance agen-
    15  cy, licensed transmitter of money, licensed budget planner, out-of-state
    16  state  bank  that  maintains  a  branch or branches or representative or
    17  other offices in this state, or foreign banking corporation  may  volun-
    18  tarily appear before him or her to present any explanation in defense of
    19  the practices directed in said order to be discontinued.
    20    3.  To  make  good  impairment of capital or to ensure compliance with
    21  financial requirements. Whenever it shall appear to  the  superintendent
    22  that  the  capital  or  capital  stock of any banking organization, bank
    23  holding company or any subsidiary thereof which is  organized,  licensed
    24  or  registered  pursuant  to this chapter, is impaired, or the financial
    25  requirements imposed by subdivision one of section two hundred two-b  of
    26  this  chapter  or  any regulation of the superintendent on any branch or
    27  agency of a foreign banking corporation or  the  financial  requirements
    28  imposed  by  this chapter or any regulation of the superintendent on any
    29  licensed lender, registered mortgage broker, licensed  mortgage  banker,
    30  licensed  student  loan  servicer,  licensed  casher of checks, licensed
    31  sales  finance  company,  licensed  insurance  premium  finance  agency,
    32  licensed transmitter of money, licensed budget planner or private banker
    33  are  not  satisfied,  the  superintendent  may,  in the superintendent's
    34  discretion, issue an order directing  that  such  banking  organization,
    35  bank holding company, branch or agency of a foreign banking corporation,
    36  registered  mortgage  broker, licensed mortgage banker, licensed student
    37  loan servicer, licensed lender,  licensed  casher  of  checks,  licensed
    38  sales  finance  company,  licensed  insurance  premium  finance  agency,
    39  licensed transmitter of money, licensed budget planner, or private bank-
    40  er make good such deficiency forthwith or within  a  time  specified  in
    41  such order.
    42    5.  To keep books and accounts as prescribed. Whenever it shall appear
    43  to the superintendent that any banking organization, bank holding compa-
    44  ny, registered  mortgage  broker,  licensed  mortgage  banker,  licensed
    45  student loan servicer, registered mortgage loan servicer, licensed mort-
    46  gage  loan  originator,  licensed  lender,  licensed  casher  of checks,
    47  licensed sales finance company, licensed insurance premium finance agen-
    48  cy, licensed transmitter of money, licensed budget  planner,  agency  or
    49  branch  of  a foreign banking corporation licensed by the superintendent
    50  to do business in this state, does not keep its books  and  accounts  in
    51  such manner as to enable him or her to readily ascertain its true condi-
    52  tion,  he or she may, in his or her discretion, issue an order requiring
    53  such banking organization, bank  holding  company,  registered  mortgage
    54  broker, licensed mortgage banker, licensed student loan servicer, regis-
    55  tered   mortgage  loan  servicer,  licensed  mortgage  loan  originator,
    56  licensed lender, licensed  casher  of  checks,  licensed  sales  finance

        S. 2008--A                         111                        A. 3008--A
 
     1  company, licensed insurance premium finance agency, licensed transmitter
     2  of  money,  licensed  budget planner, or foreign banking corporation, or
     3  the officers or agents thereof, or any of them, to open  and  keep  such
     4  books  or accounts as he or she may, in his or her discretion, determine
     5  and prescribe for the purpose of keeping accurate and convenient records
     6  of its transactions and accounts.
     7    § 4. Paragraph (a) of subdivision 1 of section 44 of the banking  law,
     8  as  amended  by  chapter  155 of the laws of 2012, is amended to read as
     9  follows:
    10    (a) Without limiting any power granted to the superintendent under any
    11  other provision of this chapter, the superintendent may, in a proceeding
    12  after notice and a hearing, require any safe deposit  company,  licensed
    13  lender,  licensed  casher  of  checks,  licensed  sales finance company,
    14  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    15  money,  licensed mortgage banker, licensed student loan servicer, regis-
    16  tered mortgage broker, licensed  mortgage  loan  originator,  registered
    17  mortgage  loan  servicer or licensed budget planner to pay to the people
    18  of this state a penalty for any violation of  this  chapter,  any  regu-
    19  lation  promulgated  thereunder,  any  final  or  temporary order issued
    20  pursuant to section thirty-nine of this article, any  condition  imposed
    21  in  writing  by  the  superintendent in connection with the grant of any
    22  application or request, or any written agreement entered into  with  the
    23  superintendent.
    24    § 5. This act shall take effect on the one hundred eightieth day after
    25  it shall have become a law.
 
    26                                   PART AA
 
    27    Section  1.  The banking law is amended by adding a new section 4-d to
    28  read as follows:
    29    § 4-d. Protecting vulnerable adults from  financial  exploitation.  1.
    30  Definitions. As used in this section:
    31    (a) "Banking institution" means any bank, trust company, savings bank,
    32  savings and loan association, credit union, or branch of a foreign bank-
    33  ing  corporation,  which  is  chartered, organized or licensed under the
    34  laws of this state or any other state or the United States, and, in  the
    35  ordinary course of business takes deposit accounts in this state.
    36    (b)  "Vulnerable  adult"  means  an  individual who, because of mental
    37  and/or physical impairment is potentially unable to manage  his  or  her
    38  own resources or protect himself or herself from financial exploitation.
    39    (c) "Financial exploitation" means: (i) the improper taking, withhold-
    40  ing,  appropriation,  or  use  of a vulnerable adult's money, assets, or
    41  property; or (ii) any act or omission by a person, including through the
    42  use of a power of attorney, guardianship, or any other authority regard-
    43  ing a vulnerable adult to: (A) obtain control, through deception, intim-
    44  idation or undue influence, over the vulnerable adult's  money,  assets,
    45  or  property  or  (B)  convert  the vulnerable adult's money, assets, or
    46  property.
    47    (d) "Transaction hold" means a delay in the completion of one or  more
    48  financial  transactions  pending  an investigation by a banking institu-
    49  tion, adult protective services, or a law enforcement agency.
    50    (e) "Adult protective services" means the division  of  the  New  York
    51  City  Human  Resources  Administration  and  each county's department of
    52  human services or department of social services responsible for  provid-
    53  ing  adult protective services pursuant to section four hundred seventy-
    54  three of the social services law.

        S. 2008--A                         112                        A. 3008--A
 
     1    (f) "Law enforcement agency" means any agency, including the financial
     2  frauds and consumer protection  unit  of  the  department  of  financial
     3  services,  which  is  empowered by law to conduct an investigation or to
     4  make an arrest for a felony, and any agency which is authorized  by  law
     5  to prosecute or participate in the prosecution of a felony.
     6    2.  Application  of  transaction  hold.  (a)  If a banking institution
     7  reasonably believes: (i) that financial  exploitation  of  a  vulnerable
     8  adult may have occurred, may have been attempted, or is being attempted;
     9  and  (ii)  that  the placement of a transaction hold may be necessary to
    10  protect a vulnerable adult's money, assets, or property  from  financial
    11  exploitation, then the banking institution may, at its discretion, apply
    12  a  transaction hold on the account of a vulnerable adult, the account on
    13  which a vulnerable adult is a beneficiary, including a trust or  guardi-
    14  anship account, or the account of a person who is reasonably believed by
    15  the  banking institution to be engaging in the financial exploitation of
    16  a vulnerable adult.
    17    (b) A banking institution may also apply a  transaction  hold  on  the
    18  account  of  a vulnerable adult, the account on which a vulnerable adult
    19  is a beneficiary, including a trust  or  guardianship  account,  or  the
    20  account  of  a person who is reasonably believed by the banking institu-
    21  tion to be engaging in the financial exploitation of a vulnerable adult,
    22  if: (i) adult protective services or a law enforcement  agency  provides
    23  information  to  the banking institution establishing a reasonable basis
    24  to believe that financial exploitation of a vulnerable  adult  may  have
    25  occurred,  may  have been attempted, or is being attempted; and (ii) the
    26  placement of a transaction hold may be necessary to protect a vulnerable
    27  adult's money, assets, or property from financial exploitation.
    28    (c) A banking institution that applies a transaction hold shall:
    29    (i) make a reasonable effort to provide notice, orally or in  writing,
    30  to all parties authorized to transact business on the account on which a
    31  transaction  hold was placed within two business days of when the trans-
    32  action hold was placed;
    33    (ii) immediately, but no later than one business day after the  trans-
    34  action  hold is placed, report the transaction hold, including the basis
    35  for the baking institution's belief that the financial exploitation of a
    36  vulnerable adult may have occurred, may have been attempted, or is being
    37  attempted, to adult protective services and to a law enforcement agency;
    38    (iii) at the request of adult protective services or a law enforcement
    39  agency, provide all information and documents that relate to the  trans-
    40  action  hold  within three business days of the request for the informa-
    41  tion or documents; and
    42    (iv) notwithstanding the transaction hold, make funds  available  from
    43  the  account  on which a transaction hold is placed to allow the vulner-
    44  able adult or other account holder to meet  his  or  her  ongoing  obli-
    45  gations  such as housing and other living expenses or emergency expenses
    46  as determined by adult protective services, a law enforcement agency  or
    47  a  not-for-profit  organization  that  regularly  provides  services  to
    48  vulnerable adults  in  the  community  in  which  the  vulnerable  adult
    49  resides.
    50    (d)  During  the pendency of a transaction hold, a banking institution
    51  may, in its discretion, also make funds available from  the  account  on
    52  which  a  transaction  hold  is  placed to allow the vulnerable adult or
    53  other account holder meet his or her ongoing obligations such as housing
    54  and other living expenses or emergency expenses,  provided  the  banking
    55  institution  does  not  have  a  reasonable  basis  to  believe that the
    56  dispersal of such funds to the vulnerable adult or other account  holder

        S. 2008--A                         113                        A. 3008--A
 
     1  will  result  in the financial exploitation of the vulnerable adult. Any
     2  such dispersal of funds pursuant to this subdivision shall  be  reported
     3  within  one business day after the dispersal is made to adult protective
     4  services and to a law enforcement agency.
     5    (e)  The  superintendent may adopt regulations identifying the factors
     6  that a banking institution should consider in determining  whether:  (i)
     7  the  financial exploitation of a vulnerable adult may have occurred, may
     8  have been attempted, or is being attempted; and (ii) the placement of  a
     9  transaction  hold  is  necessary  to protect a vulnerable adult's money,
    10  assets, or property.
    11    3. Duration of transaction hold.  (a) Subject to paragraphs  (b),  (c)
    12  and  (d) of this subdivision, a transaction hold that a banking institu-
    13  tion places on an account pursuant to this section shall terminate  five
    14  business days after the date on which the transaction hold is applied by
    15  the  banking institution. A banking institution may terminate the trans-
    16  action hold at any time during this  five  day  period  if  the  banking
    17  institution is satisfied that the termination of the transaction hold is
    18  not likely to result in financial exploitation of a vulnerable adult.
    19    (b)  A transaction hold may be extended beyond the period set forth in
    20  paragraph (a) of this subdivision for up to an additional  fifteen  days
    21  at  the request of either adult protective services or a law enforcement
    22  agency.
    23    (c) A transaction hold may be extended beyond the periods set forth in
    24  paragraphs (a) and (b) of this subdivision only  pursuant  to  an  order
    25  issued by a court of competent jurisdiction.
    26    (d) A transaction hold may be terminated at any time pursuant an order
    27  issued by a court of competent jurisdiction.
    28    4.  Immunity. A banking institution or an employee of a banking insti-
    29  tution shall be immune from criminal, civil, and administrative  liabil-
    30  ity  for  all  good faith actions in relation to the application of this
    31  section including any good faith determination to apply or not  apply  a
    32  transaction  hold  on  an  account.  Where  there is reasonable basis to
    33  conclude: (a) that financial exploitation of a vulnerable adult may have
    34  occurred, may have been attempted, or is being attempted; and  (b)  that
    35  the  placement  of  a  transaction  hold  may  be necessary to protect a
    36  vulnerable adult's money, assets, or property from  financial  exploita-
    37  tion,  such  immunity  shall not apply to a determination not to apply a
    38  transaction hold when the banking institution or employee acts reckless-
    39  ly or engages in intentional misconduct in making the determination,  or
    40  the determination results from a conflict of interest.
    41    5.  Certification  program.  The  department  may  develop a financial
    42  exploitation  certification  program  for  banking  institutions.   Upon
    43  completion  of the training components required by the program and after
    44  establishing the necessary internal policies, procedures,  and  in-house
    45  training  programs, a banking institution shall receive from the depart-
    46  ment an adult financial exploitation prevention certificate  demonstrat-
    47  ing  that  staff at such banking institution have been trained on how to
    48  identify, help prevent, and  report  the  financial  exploitation  of  a
    49  vulnerable  adult.  At the discretion of the superintendent, the certif-
    50  ication program may be mandatory for banking  institutions  licensed  by
    51  the department.
    52    6.  Regulations.  The  superintendent  may  issue such rules and regu-
    53  lations that provide the procedures for the enforcement of the terms  of
    54  this  section  and  any other rules and regulations that he or she deems
    55  necessary to implement the terms of this section.

        S. 2008--A                         114                        A. 3008--A

     1    § 2. This act shall take effect on the one hundred eightieth day after
     2  it shall have become a law.
 
     3                                   PART BB
 
     4    Section  1.  The  financial  services  law  is amended by adding a new
     5  section 105 to read as follows:
     6    § 105. Disqualification. (a) Definitions. (1) Covered individual.  The
     7  term "covered individual," when used in this section, means (A) an indi-
     8  vidual operating under or required to operate under a license, registra-
     9  tion,  permit  certification  or  authorization  under this chapter, the
    10  banking law, the insurance law, or the  regulations  promulgated  there-
    11  under,  (B)  an  owner,  director, trustee, officer, employee, member or
    12  partner of a covered entity, or (C) an individual otherwise  engaged  in
    13  the business of banking, insurance or financial services in the state.
    14    (2)  Covered  entity.  The  term  "covered  entity," when used in this
    15  section, means any entity (A) operating under  or  required  to  operate
    16  under  a  license,  registration,  permit,  certificate or authorization
    17  under the banking law or the insurance law; (B) authorized,  accredited,
    18  chartered  or  incorporated  or  possessing or required to possess other
    19  similar status under the banking law, or the insurance  law;  (C)  regu-
    20  lated  by  the  superintendent  pursuant  to  this chapter; (D) that has
    21  submitted an application to the superintendent (i) for a license, regis-
    22  tration, permit, certificate or authorization under the banking  law  or
    23  the  insurance  law,  (ii)  to  be  authorized, accredited, chartered or
    24  incorporated under the banking law, or the insurance law or to be  regu-
    25  lated pursuant to this chapter.
    26    (3)  Disqualifying  event. For purposes of this section, an individual
    27  commits a "disqualifying event," when he or she:
    28    (A) has violated a written agreement between  the  superintendent  and
    29  the covered individual;
    30    (B) has willfully violated an agreement between the superintendent and
    31  a covered entity;
    32    (C)  has  engaged or participated in any unsafe or unsound practice in
    33  connection with any covered entity;
    34    (D) has willfully made or  caused  to  be  made  in  any  application,
    35  filing,  or  submission with the superintendent, any statement which was
    36  at the time and in the light of the circumstances  under  which  it  was
    37  made false or misleading with respect to any material fact, or has omit-
    38  ted  to  state in any such application or report any material fact which
    39  is required to be stated therein;
    40    (E) has been convicted within five years of any felony or  misdemeanor
    41  that:
    42    (i) involves the purchase or sale of any financial product or service,
    43  the  taking  of  a  false  oath,  the making of a false report, bribery,
    44  perjury, burglary, any substantially equivalent activity however denomi-
    45  nated, or conspiracy to commit any such offense;
    46    (ii) arises out of the conduct of the business of a covered entity  or
    47  in  connection with the promotion, sale or delivery of a financial prod-
    48  uct or service;
    49    (iii) involves the larceny, theft, robbery, extortion, forgery,  coun-
    50  terfeiting, fraudulent concealment, embezzlement, fraudulent conversion,
    51  or misappropriation of funds, or securities, or substantially equivalent
    52  activity however denominated; or

        S. 2008--A                         115                        A. 3008--A
 
     1    (iv)  has  a  direct bearing on the individual's fitness or ability to
     2  perform one or  more  of  the  duties  or  responsibilities  necessarily
     3  related to the license, position, or job in question;
     4    (F)  has  been  found  by  a federal financial regulatory authority, a
     5  state financial regulatory authority, or a foreign financial  regulatory
     6  authority that is recognized by the superintendent as such to have:
     7    (i)  made  or caused to be made in any application for registration or
     8  report required to be filed with the financial regulatory authority,  or
     9  in any proceeding before the financial regulatory authority with respect
    10  to  registration, any statement that was at the time and in the light of
    11  the circumstances under which it  was  made  false  or  misleading  with
    12  respect to any material fact, or has omitted to state in any application
    13  or  report  to the financial regulatory authority any material fact that
    14  is required to be stated therein; or
    15    (ii) violated any banking law,  or  statute  or  regulation  regarding
    16  transactions  in  securities,  or  contracts  of sale of a commodity for
    17  future delivery, traded on or subject to the rules of a contract  market
    18  or any board of trade; or
    19    (G)  is subject to any final order of any federal financial regulatory
    20  authority, a state financial regulatory authority, or a  foreign  finan-
    21  cial  regulatory  authority  that is recognized by the superintendent as
    22  such that:
    23    (i) bars such person from association with an entity regulated by such
    24  commission, authority, agency, or officer, or from engaging in the busi-
    25  ness of securities, insurance, banking, savings association  activities,
    26  or credit union activities; or
    27    (ii)  constitutes  a  final  order  based on violations of any laws or
    28  regulations  that  prohibits  fraudulent,  manipulative,  or   deceptive
    29  conduct.
    30    (b) Disqualification. Without limiting any power granted to the super-
    31  intendent under any other provision of state or federal law, (1) whenev-
    32  er  the  superintendent  has reason to believe that a covered individual
    33  has committed a disqualifying event that is of such severity as to  have
    34  a  direct bearing on the individual's fitness or ability to (A) serve as
    35  an owner, director, trustee, officer, employee, member or partner  of  a
    36  covered entity or having any association with a covered entity, (B) hold
    37  any license, registration, permit, certification or authorization issued
    38  by  the  department, or (C) otherwise engage in the business of banking,
    39  insurance, or financial services in the state,  (2)  the  superintendent
    40  may serve a statement of the charges against such covered individual and
    41  a  notice  of an opportunity to appear before the superintendent to show
    42  cause why he or she should not be disqualified from (A)  serving  as  an
    43  owner,  director,  trustee,  officer,  employee,  member or partner of a
    44  covered entity or having any association  with  a  covered  entity,  (B)
    45  holding  any  license,  registration,  permit, certification or authori-
    46  zation issued by the department, or (C) otherwise engaging in the  busi-
    47  ness of banking, insurance, or financial services in the state.
    48    (c)  Order  of disqualification. Without limiting any power granted to
    49  the superintendent under any other provision of state or federal law, if
    50  such covered individual waives a hearing, or fails to appear  in  person
    51  or  by  a duly authorized representative without good cause shown at the
    52  time and place set for the hearing or,  if  after  a  hearing,  (1)  the
    53  superintendent  finds  that  the  covered  individual  has  engaged in a
    54  disqualifying event that is of such severity as to have a direct bearing
    55  on the individual's fitness or ability to (A) serve as an owner,  direc-
    56  tor,  trustee,  officer, employee, member or partner of a covered entity

        S. 2008--A                         116                        A. 3008--A
 
     1  or having any association with a covered entity, (B) hold  any  license,
     2  registration,  permit,  certification  or  authorization  issued  by the
     3  department, or (C) otherwise engage in the business of  banking,  insur-
     4  ance,  or  financial  services  in the state, (2) the superintendent may
     5  issue an order disqualifying the covered individual from (A) serving  as
     6  an  owner,  director, trustee, officer, employee, member or partner of a
     7  covered entity or having any association  with  a  covered  entity,  (B)
     8  holding  any  license,  registration,  permit, certification or authori-
     9  zation issued by the department, or (C) otherwise engaging in the  busi-
    10  ness  of  banking,  insurance,  or financial services in the state. Such
    11  order of disqualification may also  prohibit  the  covered  individual's
    12  performance  of any contractual agreements with any covered entity. Such
    13  order of disqualification may be for the covered  individual's  lifetime
    14  or  for any shorter period determined by the superintendent to be in the
    15  public's interest. Any order issued pursuant to this subsection and  the
    16  findings  of  fact  upon  which  it  is  based may not be made public or
    17  disclosed to anyone, except as provided in subdivision  ten  of  section
    18  thirty-six  of  the  banking law or in connection with proceedings for a
    19  violation of this section.
    20    (d) Suspension pending determination of  charges.  (1)  In  connection
    21  with,  or  at  any  time after service of the written notice pursuant to
    22  subsection (b) of this section, the superintendent  may  suspend  for  a
    23  period  of  up  to one hundred eighty days, pending the determination of
    24  the charges, a covered individual from serving as a  director,  trustee,
    25  officer,  employee,  member or partner of a covered entity or having any
    26  association with a covered entity; or holding any license, registration,
    27  certification or authorization issued by the department, if  the  super-
    28  intendent  has  reason  to  believe that by reason of the conduct giving
    29  rise to the alleged disqualifying event:
    30    (A) a covered entity has suffered or will  probably  suffer  financial
    31  loss;
    32    (B)  the  interests of the depositors at a covered entity have been or
    33  could be prejudiced; or
    34    (C) the covered individual  demonstrates  willful  disregard  for  the
    35  safety and soundness of a covered entity.
    36    (2)  The superintendent may extend the suspension for additional peri-
    37  ods of up to one hundred eighty days if the hearing  conducted  pursuant
    38  to  subsection  (c)  of  this  section is not completed within the prior
    39  suspension period due to the request of the covered individual.
    40    (3) Any suspension order issued  pursuant  to  this  subsection  shall
    41  become  effective upon service, unless it is amended or rescinded by the
    42  superintendent or a court of competent jurisdiction, or replaced  by  an
    43  order issued pursuant to subsection (c) of this section. Such suspension
    44  order may be reviewed in the manner provided by article seventy-eight of
    45  the civil practice law and rules.
    46    (e) Rules and regulations. The superintendent may issue such rules and
    47  regulations  as  are  necessary  to  implement  the  provisions  of this
    48  section.
    49    § 2. This act shall take effect January 1, 2018.
 
    50                                   PART CC
 
    51    Section 1. The banking law is amended by adding a new section 340-a to
    52  read as follows:
    53    § 340-a. Exemption for certain lenders and  partnering  organizations.
    54  1. For purposes of this section:

        S. 2008--A                         117                        A. 3008--A

     1    (a) "Exempt entity" shall mean an entity exempted pursuant to subdivi-
     2  sion two of this section.
     3    (b)  "Limited  lending activity" shall mean the lending of money to an
     4  individual borrower for which no interest or fees, except  as  otherwise
     5  provided for in this section, are charged and for which the borrower may
     6  make full or partial repayment of the loan prior to the disbursement  of
     7  the loan proceeds.
     8    2. Notwithstanding this section and sections one, ten, fourteen, thir-
     9  ty-six-b  and thirty-eight of this chapter, the superintendent may allow
    10  an entity to engage in limited lending activity without being subject to
    11  the requirements of this chapter, if the entity:
    12    (a) engages in no activity regulated by this chapter except the making
    13  of zero-interest loans and any activity incidental thereto;
    14    (b) is exempt from federal income taxes under section 501 (c)  (3)  of
    15  the  Internal Revenue Code and is organized and operated exclusively for
    16  one or more of the purposes described in section  501  (c)  (3)  of  the
    17  Internal Revenue Code;
    18    (c) pays no part of its net earnings to a private shareholder or indi-
    19  vidual;
    20    (d)  pays or receives no broker's fee in connection with any loan that
    21  it makes; and
    22    (e) satisfies the other requirements set forth in this section.
    23    3. (a) An application to operate as an exempt entity  shall  be  filed
    24  with  the  superintendent, in a manner prescribed by the superintendent,
    25  along with a fee in the amount of five hundred dollars. The  superinten-
    26  dent  shall  investigate  the  financial  condition  and responsibility,
    27  financial and business experience, character and general fitness of  the
    28  applicant  and,  if the superintendent finds these qualities are such as
    29  to warrant the belief that the applicant's business  will  be  conducted
    30  honestly,  fairly,  equitably,  carefully  and  efficiently  within  the
    31  purposes and intent of this section, and  in  a  manner  commanding  the
    32  confidence  and  trust of the community, the superintendent shall advise
    33  the applicant in writing of the superintendent's approval of the  appli-
    34  cation  for  an  exemption  pursuant to this section. The superintendent
    35  may, in his or her discretion, refuse to grant an exemption if he or she
    36  finds that one or more of the provisions of this section were not met or
    37  are not being met by the applicant or that denial of the exemption is in
    38  the best interests of the public.
    39    (b) The superintendent may suspend or  revoke  any  exemption  granted
    40  pursuant to this section, if he or she finds that:
    41    (i)  any such entity, knowingly or without the exercise of due care to
    42  prevent such violation, has violated any provision of  this  section  or
    43  article, or has failed to comply with any demand, or requirement made by
    44  the superintendent;
    45    (ii)  there  has  been  any material misstatement or failure to give a
    46  true and correct answer in an application or in response to any question
    47  posed by the superintendent;
    48    (iii) the exempt entity has defrauded any borrower or willfully failed
    49  to perform any written agreement with such person; or
    50    (iv) any fact or condition exists which, if it had existed at the time
    51  of the original application for an exemption, would have  warranted  the
    52  superintendent to refuse to grant such exemption.
    53    (c)  Except  as  provided for in paragraph (d) of this subdivision, no
    54  exemption granted hereunder shall be suspended or revoked except after a
    55  hearing. The superintendent shall give the exempt entity  at  least  ten
    56  days  written notice of the time and place of such hearing by registered

        S. 2008--A                         118                        A. 3008--A
 
     1  mail addressed to the principal place of business of the exempt  entity.
     2  Any  order  suspending or revoking an exemption shall recite the grounds
     3  upon which it is based and shall not be effective until ten  days  after
     4  written  notice  has been sent by registered mail to the exempt entity's
     5  principal place of business.
     6    (d) Upon, or at any time after service of written notice  pursuant  to
     7  paragraph (c) of this subdivision, the superintendent may suspend, pend-
     8  ing  the  determination  of the charges, an exemption issued pursuant to
     9  this section if the superintendent has reason to believe that an  exempt
    10  entity:
    11    (i)  has  defaulted  or is likely to default in the performance of its
    12  financial engagements;
    13    (ii) is engaging in dishonest or inequitable practices; or
    14    (iii) poses a substantial harm to the persons afforded the  protection
    15  of this section.
    16    4.  (a)  Every  exempt  entity  shall maintain records relating to its
    17  lending activities for at least five years.
    18    (b) Every exempt entity shall file an annual report  with  the  super-
    19  intendent on or before March fifteenth of each year, containing informa-
    20  tion  that  the superintendent requires concerning lending activities by
    21  the entity, including any loans facilitated by  a  partnering  nonprofit
    22  organization  described  in subdivision thirteen of this section, within
    23  the state during the preceding calendar year.
    24    5. Every loan made by an exempt entity shall comply with the following
    25  requirements:
    26    (a) The loan shall be unsecured.
    27    (b) No interest may be imposed.
    28    (c) Except for a reimbursement of up to ten dollars to cover an insuf-
    29  ficient funds fee incurred by an exempt entity due  to  actions  of  the
    30  borrower,  no administrative or other fees may be imposed on a borrower.
    31  No exempt entity shall charge more than two insufficient funds  fees  to
    32  the same borrower in a single month.
    33    (d)  The  following  information shall be disclosed to the borrower in
    34  writing, in a typeface no smaller than  twelve-point  type  and  in  the
    35  primary  language  of  the borrower, at the time the loan application is
    36  received by the exempt entity:
    37    (i) the amount to be borrowed, that no interest will be charged on the
    38  loan, and the total dollar cost of the loan to the borrower if the  loan
    39  is  paid  back  on  time,  including  the principal amount borrowed, the
    40  repayment installment amount, the frequency of payment, and the insuffi-
    41  cient funds fee, if applicable; and
    42    (ii) an explanation  of  whether,  and  under  what  circumstances,  a
    43  borrower may exit a loan agreement.
    44    (e) The principal amount upon origination of the loan shall be no less
    45  than  two  hundred  fifty  dollars  and  no  more than two thousand five
    46  hundred dollars, and a term of not less than the following:
    47    (i) ninety days for loans whose principal balance upon origination  is
    48  less than five hundred dollars;
    49    (ii)  one  hundred  twenty days for loans whose principal balance upon
    50  origination is at least five hundred dollars, but is less than one thou-
    51  sand five hundred dollars; or
    52    (iii) one hundred eighty days for loans whose principal  balance  upon
    53  origination is at least one thousand five hundred dollars.
    54    6.  The  exempt  entity  may restructure a borrower's loan only if the
    55  loan as restructured continues to comply with the requirements in  para-
    56  graphs (a), (b) and (c) of subdivision five of this section.

        S. 2008--A                         119                        A. 3008--A
 
     1    7.  An  exempt entity shall not sell or assign unpaid debt arising out
     2  of any loans made pursuant to the authority of  this  section  to  third
     3  parties for collection.
     4    8.  Prior to disbursement of loan proceeds, the exempt entity shall at
     5  no cost to the borrower either:
     6    (a) provide a credit education program or seminar to the borrower that
     7  has been previously reviewed and approved by the superintendent for  use
     8  in complying with this section; or
     9    (b)  obtain evidence that the borrower has attended a credit education
    10  program or seminar offered by an independent third party that  has  been
    11  previously  reviewed  and  approved  by  the  superintendent  for use in
    12  complying with this section.
    13    9. An exempt entity shall report each borrower's  payment  performance
    14  to  at  least  one consumer reporting agency that compiles and maintains
    15  files on consumers on a nationwide basis. For purposes of this  section,
    16  a consumer reporting agency that compiles and maintains files on consum-
    17  ers  on  a  nationwide basis is one that meets the definition in section
    18  603(p) of  the  federal  Fair  Credit  Reporting  Act  (15  U.S.C.  Sec.
    19  1681a(p)).  Any exempt entity that is accepted as a data furnisher shall
    20  report all borrower payment performance since the inception  of  lending
    21  by such entity, as soon as practicable after such individual is accepted
    22  into  the exempt entity's lending program, but in no event more than six
    23  months after its acceptance into the program.
    24    10. The exempt entity shall underwrite each loan and shall ensure that
    25  a loan is not made if, through its underwriting, the  entity  determines
    26  that  the borrower's total monthly debt service payments, at the time of
    27  loan origination, including the loan for which  the  borrower  is  being
    28  considered, and across all outstanding forms of credit that can be inde-
    29  pendently  verified  by  the exempt entity, exceeds fifty percent of the
    30  borrower's gross monthly household income, unless  a  lesser  amount  is
    31  mandated by subparagraph (iii) of paragraph (c) of this subdivision. The
    32  exempt entity shall in every case:
    33    (a)  Obtain  information  and  documentation  pertaining  to  all of a
    34  borrower's outstanding debt obligations during the loan application  and
    35  underwriting  process, including but not limited to verified information
    36  from a credit report and loans that are self-reported  by  the  borrower
    37  but not available through independent verification.
    38    (b)  Not  include  for  purposes of a debt-to-income ratio evaluation,
    39  loans from friends or family, except if in the judgment  of  the  exempt
    40  entity,  such  inclusion  is  necessary  to protect the interests of the
    41  consumer.
    42    (c) Verify the borrower's household income to determine the borrower's
    43  debt-to-income ratio using information from any of the following  sourc-
    44  es:
    45    (i)  electronic means or services deemed acceptable by the superinten-
    46  dent;
    47    (ii) Internal Revenue Service form W-2, tax returns, payroll receipts,
    48  bank statements, or other third-party documents that provide  reasonably
    49  reliable evidence of the borrower's actual income; or
    50    (iii) a signed statement from the borrower stating sources and amounts
    51  of income, if the borrower's actual income cannot be independently veri-
    52  fied using electronic means or services, Internal Revenue Service forms,
    53  tax  returns,  payroll  receipts,  bank statements, or other third-party
    54  documents. If income is verified using a signed statement from a borrow-
    55  er, a loan shall not be  made  if  the  borrower's  total  monthly  debt
    56  service  payments,  at  the time of loan origination, including the loan

        S. 2008--A                         120                        A. 3008--A
 
     1  for which the borrower is being considered, and across  all  outstanding
     2  forms  of  credit,  exceeds  twenty-five percent of the borrower's gross
     3  monthly household income.
     4    11.  The  exempt  entity shall notify each borrower, at least two days
     5  prior to each payment due date, of the amount due and  the  payment  due
     6  date.   Notification may be provided by any means mutually acceptable to
     7  the borrower and the exempt entity. A borrower shall have the  right  to
     8  opt  out  of  this  notification at any time, upon electronic or written
     9  request to the exempt  entity.  The  exempt  entity  shall  notify  each
    10  borrower of this right prior to disbursing loan proceeds.
    11    12. No exempt entity, in connection with, or incidental to, the facil-
    12  itating of any loan made pursuant to this section, shall offer, sell, or
    13  require  a  borrower  to contract for "credit insurance" or insurance on
    14  tangible personal or real property of any type securing any loan.
    15    13. An exempt entity may partner with a nonprofit organization for the
    16  purpose of facilitating zero-interest loans by the exempt entity  pursu-
    17  ant to this section. This nonprofit organization shall not be subject to
    18  this  section, provided that it satisfies the requirements applicable to
    19  an exempt entity set forth in paragraphs (b), (c) and (d) of subdivision
    20  two of this section and provided that:
    21    (a) The exempt entity notifies the superintendent within fifteen  days
    22  of  entering into a written agreement with a partnering nonprofit organ-
    23  ization, on such form and in  such  manner  as  the  superintendent  may
    24  prescribe. At a minimum, this notification shall include the name of the
    25  partnering  nonprofit organization, the contact information for a person
    26  responsible for the lending activities facilitated  by  that  partnering
    27  organization,  a  copy  of the agreement and the address or addresses at
    28  which the partnering organization can be reached.
    29    (b) The exempt entity includes information regarding the loans facili-
    30  tated by the partnering  organization  in  the  annual  report  required
    31  pursuant to subdivision four of this section.
    32    (c)  The superintendent may, at his or her sole discretion, disqualify
    33  a partnering nonprofit  organization  upon  a  determination  that  this
    34  organization  has  acted  in violation of this section or any regulation
    35  adopted hereunder.
    36    14. The superintendent may examine or request a  special  report  from
    37  each  exempt  entity  and  each  partnering  nonprofit  organization for
    38  compliance with the provisions of this section at any time.  Any  entity
    39  so  examined  shall  make  available to the superintendent or his or her
    40  representative all books and records  requested  by  the  superintendent
    41  related  to  the lending activities facilitated by that entity. In addi-
    42  tion to the application fee provided for in paragraph (a) of subdivision
    43  three of this section, the cost of any such examination  shall  be  paid
    44  for by the entity being examined.
    45    15. All reports of examinations and investigations, correspondence and
    46  memoranda  concerning or arising out of any examination or investigation
    47  of an exempt entity shall be subject to the  provisions  of  subdivision
    48  ten of section thirty-six of this chapter.
    49    16. The superintendent is hereby authorized and empowered to make such
    50  general  rules  and  regulations, and such specific rulings, demands and
    51  findings as he or she may deem necessary for the proper conduct  of  the
    52  lending activities exempted from licensing under this section.
    53    § 2. This act shall take effect on the one hundred eightieth day after
    54  it shall have become a law.
 
    55                                   PART DD

        S. 2008--A                         121                        A. 3008--A
 
     1    Section  1.  The  state finance law is amended by adding a new section
     2  89-i to read as follows:
     3    §  89-i.  Paid  family leave risk adjustment fund.  1. There is hereby
     4  established in the sole  custody  of  the  superintendent  of  financial
     5  services  a  special  fund,  to  be known as the "paid family leave risk
     6  adjustment fund".
     7    2. Such fund shall consist of money  received  by  the  superintendent
     8  from  insurance  carriers as payments into any risk adjustment mechanism
     9  established by regulation in accordance with paragraph two of subsection
    10  (n) of section four thousand two hundred thirty-five  of  the  insurance
    11  law.
    12    3.  All moneys retained in such fund shall be held on behalf of insur-
    13  ance carriers and paid out by the superintendent to  insurance  carriers
    14  pursuant  to  the risk adjustment mechanism established by regulation in
    15  accordance with paragraph two of subsection (n) of section four thousand
    16  two hundred thirty-five of the insurance law.
    17    4. The funds so received and deposited in such  risk  adjustment  fund
    18  shall not be deemed to be state funds.
    19    § 2. This act shall take effect immediately.
 
    20                                   PART EE
 
    21    Section 1. Section 340 of the banking law, as amended by chapter 22 of
    22  the laws of 1990, is amended to read as follows:
    23    § 340.  Doing  business  without license prohibited.   1. No person or
    24  other entity shall engage in the business of making loans in the princi-
    25  pal amount of twenty-five thousand dollars or less for any  loan  to  an
    26  individual  for  personal, family, household, or investment purposes and
    27  in a principal amount of fifty thousand dollars or less to an individual
    28  or business for business and commercial  loans,  [and  charge,  contract
    29  for,  or  receive  a  greater  rate of interest than the lender would be
    30  permitted by law to charge if he were not a licensee  hereunder]  except
    31  as  authorized  by  this  article or by regulations issued by the super-
    32  intendent and without first obtaining a license from the superintendent.
    33    2. For the purposes of this section,  a  person  or  entity  shall  be
    34  considered  as engaging in the business of making loans in New York, and
    35  subject to the licensing and other requirements of this article,  if  it
    36  solicits  loans  in  the amounts prescribed by this section [within this
    37  state] and, in connection with such solicitation, makes loans, purchases
    38  or otherwise acquires from others loans or other forms of financing,  or
    39  arranges  or facilitates the funding of loans, to individuals then resi-
    40  dent in this state or to businesses located or doing  business  in  this
    41  state,  except  that no person or entity shall be considered as engaging
    42  in the business of making loans in this state on the basis of isolated[,
    43  incidental] or occasional transactions which otherwise meet the require-
    44  ments of this section.
    45    3. When necessary to facilitate low cost lending in any community, the
    46  superintendent shall have the power to adopt regulations that provide an
    47  exemption from the licensure requirement  in  subdivision  one  of  this
    48  section  for  a  person or entity. The superintendent may also adopt any
    49  such additional rules or regulations that he or she deems  necessary  to
    50  implement the terms of this section including the exemption provision in
    51  this subdivision.
    52    4.  Nothing  in  this  article shall apply to licensed collateral loan
    53  brokers.
    54    § 2. This act shall take effect January 1, 2018.

        S. 2008--A                         122                        A. 3008--A
 
     1                                   PART FF
 
     2    Section  1. Paragraph (b) of subdivision 6 of section 1304 of the real
     3  property actions and proceedings law, as amended by section 7 of part  Q
     4  of chapter 73 of the laws of 2016, is amended to read as follows:
     5    (b)  (1)  "Home  loan" means a home loan, including an open-end credit
     6  plan, [other than a reverse mortgage transaction,] in which:
     7    (i) The principal amount of the loan at origination did not exceed the
     8  conforming loan size that was in existence at the  time  of  origination
     9  for a comparable dwelling as established by the federal housing adminis-
    10  tration or federal national mortgage association;
    11    (ii) The borrower is a natural person;
    12    (iii)  The  debt  is  incurred by the borrower primarily for personal,
    13  family, or household purposes;
    14    (iv) The loan is secured by a mortgage or deed of trust on real estate
    15  upon which there is located or there is to be  located  a  structure  or
    16  structures  intended principally for occupancy of from one to four fami-
    17  lies which is or will be occupied by  the  borrower  as  the  borrower's
    18  principal dwelling; and
    19    (v) The property is located in this state.
    20    (2)  A  home  loan  shall include a loan secured by a reverse mortgage
    21  that meets the requirements of clauses (i) through (v)  of  subparagraph
    22  one of this paragraph.
    23    § 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
    24  as  amended by section 2 of part Q of chapter 73 of the laws of 2016, is
    25  amended to read as follows:
    26    (a) [In] 1. Except as provided in paragraph two of  this  subdivision,
    27  in any residential foreclosure action involving a home loan as such term
    28  is defined in section thirteen hundred four of the real property actions
    29  and proceedings law, in which the defendant is a resident of the proper-
    30  ty  subject to foreclosure, plaintiff shall file proof of service within
    31  twenty days of such service, however service  is  made,  and  the  court
    32  shall  hold a mandatory conference within sixty days after the date when
    33  proof of service upon such defendant is filed with the county clerk,  or
    34  on  such  adjourned  date  as has been agreed to by the parties, for the
    35  purpose of holding settlement discussions  pertaining  to  the  relative
    36  rights and obligations of the parties under the mortgage loan documents,
    37  including,  but not limited to: [1.] (i) determining whether the parties
    38  can reach a mutually agreeable resolution to help  the  defendant  avoid
    39  losing his or her home, and evaluating the potential for a resolution in
    40  which  payment  schedules  or  amounts  may be modified or other workout
    41  options may be agreed to, including, but not limited to, a loan  modifi-
    42  cation, short sale, deed in lieu of foreclosure, or any other loss miti-
    43  gation  option;  or  [2.]  (ii)  whatever other purposes the court deems
    44  appropriate.
    45    2. Paragraph one of this subdivision shall not apply to  a  home  loan
    46  secured  by  a  reverse  mortgage where the default was triggered by the
    47  death of the last surviving borrower unless the last  surviving  borrow-
    48  er's  spouse,  if any, is a resident of the property subject to foreclo-
    49  sure.
    50    § 3. This act shall take effect immediately; provided, however, that:
    51    (a) the amendments to paragraph (b) of subdivision 6 of  section  1304
    52  of the real property actions and proceedings law, made by section one of
    53  this  act,  shall take effect on the same date and in the same manner as
    54  section 7 of part Q of chapter 73 of the laws of 2016 takes effect; and

        S. 2008--A                         123                        A. 3008--A
 
     1    (b) the amendments to subdivision (a) of rule 3408 of the civil  prac-
     2  tice law and rules, made by section two of this act, shall be subject to
     3  the expiration and reversion of such subdivision pursuant to subdivision
     4  e of section 25 of chapter 507 of the laws of 2009, as amended.
 
     5                                   PART GG
 
     6    Section  1.  This  act enacts into law major components of legislation
     7  relating to assessments, distribution of assets, and insurers deemed  to
     8  be  in  a  hazardous  financial  condition.    Each  component is wholly
     9  contained within a Subpart identified  as  Subparts  A  through  C.  The
    10  effective  date  for  each  particular  provision  contained within such
    11  Subpart is set forth in the last section of such Subpart. Any  provision
    12  in  any section contained within a Subpart, including the effective date
    13  of the Subpart, which makes references to a section "of this act",  when
    14  used  in  connection  with that particular component, shall be deemed to
    15  mean and refer to the corresponding section of the Subpart in  which  it
    16  is  found.  Section  three  of this act sets forth the general effective
    17  date of this act.
 
    18                                  SUBPART A
 
    19    Section 1. Subsection (a) of section 206  of  the  financial  services
    20  law, is amended and a new subsection (g) is added to read as follows:
    21    (a) For each fiscal year commencing on or after April first, two thou-
    22  sand  twelve,  assessments  to  defray operating expenses, including all
    23  direct and indirect costs, of the department, except  expenses  incurred
    24  in  the  liquidation  of banking organizations, shall be assessed by the
    25  superintendent in accordance with  this  subsection.  Persons  regulated
    26  under  the insurance law shall be assessed by the superintendent for the
    27  operating expenses of the department that  are  solely  attributable  to
    28  regulating  persons  under  the  insurance  law, which shall include any
    29  expenses that were permissible to be assessed in fiscal year  two  thou-
    30  sand nine-two thousand ten, with the assessments allocated pro rata upon
    31  all  domestic  insurers and all licensed United States branches of alien
    32  insurers domiciled in this state within the meaning of paragraph four of
    33  subsection (b) of section seven  thousand  four  hundred  eight  of  the
    34  insurance  law,  in  proportion  to  the gross direct premiums and other
    35  considerations, written or received by them in  this  state  during  the
    36  calendar year ending December thirty-first immediately preceding the end
    37  of  the fiscal year for which the assessment is made (less return premi-
    38  ums and considerations thereon) for policies or contracts  of  insurance
    39  covering  property  or risks resident or located in this state the issu-
    40  ance of which policies or contracts requires a license from  the  super-
    41  intendent.  Persons regulated under the banking law shall be assessed by
    42  the superintendent for the operating expenses of the department that are
    43  solely attributable to regulating persons under the banking law in  such
    44  proportions  as  the  superintendent  shall  deem  just  and reasonable.
    45  Persons regulated under this chapter shall be  assessed  by  the  super-
    46  intendent  for  the operating expenses of the department that are solely
    47  attributable to regulated persons under this chapter in such proportions
    48  as the superintendent shall deem just and reasonable. Operating expenses
    49  of the department not covered by the assessments set forth  above  shall
    50  be assessed by the superintendent in such proportions as the superinten-
    51  dent  shall  deem just and reasonable upon all domestic insurers and all
    52  licensed United States branches of  alien  insurers  domiciled  in  this

        S. 2008--A                         124                        A. 3008--A
 
     1  state  within the meaning of paragraph four of subsection (b) of section
     2  seven thousand four hundred eight of the insurance  law,  and  upon  any
     3  regulated  person  under  this  chapter  and the banking law, other than
     4  mortgage  loan originators, except as otherwise provided by sections one
     5  hundred fifty-one and two hundred twenty-eight of the  workers'  compen-
     6  sation  law  and by section sixty of the volunteer firefighters' benefit
     7  law. The provisions of this subsection shall not be applicable to a bank
     8  holding company, as that term is defined in article three-A of the bank-
     9  ing law. Persons regulated under the banking law will  not  be  assessed
    10  for  expenses  that  the  superintendent deems to benefit solely persons
    11  regulated under the insurance  law,  and  persons  regulated  under  the
    12  insurance  law will not be assessed for expenses that the superintendent
    13  deems to benefit solely persons regulated under the banking law.
    14    (g) The expenses of every examination of the affairs of any  regulated
    15  person subject to this chapter, shall be borne and paid by the regulated
    16  person  so  examined,  but  the superintendent, with the approval of the
    17  comptroller, may, in the  superintendent's  discretion  for  good  cause
    18  shown, remit such charges.
    19    § 2. This act shall take effect January 1, 2018.
 
    20                                  SUBPART B
 
    21    Section  1.  Legislative  findings. In order to provide an appropriate
    22  scheme of distribution of assets of all insolvent insurers, the legisla-
    23  ture finds that it is in the best interest of the people of  this  state
    24  to  amend  statutes regarding the priority of distribution under Article
    25  74 of the Insurance Law.
    26    § 2. Paragraph 1 of subsection (a) of section 7434  of  the  insurance
    27  law,  as  amended by chapter 134 of the laws of 1999, is amended to read
    28  as follows:
    29    (1) Upon the recommendation of the superintendent,  as  receiver,  and
    30  under the direction of the court, distribution payments shall be made in
    31  a  manner  that  will  assure the proper recognition of priorities and a
    32  reasonable balance between the expeditious  completion  of  the  [liqui-
    33  dation]  proceeding subject to this article and the protection of unliq-
    34  uidated and undetermined claims. The priority of distribution of  claims
    35  from  [an]  all  insolvent  [property/casualty  insurer] insurers in any
    36  proceeding subject to this article, unless otherwise specified, shall be
    37  in accordance with the order in which each class of claims is set  forth
    38  in this paragraph and as provided in this paragraph. Every claim in each
    39  class  shall be paid in full or adequate funds retained for such payment
    40  before the members of the next class receive any payment. No  subclasses
    41  shall  be established within any class. No claim by a shareholder, poli-
    42  cyholder, contract holder  or  other  creditor  shall  be  permitted  to
    43  circumvent  the  priority classes through the use of equitable remedies.
    44  The order of distribution of claims shall be:
    45    (i) Class one. Claims with respect to the actual and  necessary  costs
    46  and  expenses of administration, incurred by the liquidator, rehabilita-
    47  tor or conservator under this article.
    48    (ii) Class two. All claims under policies or contracts, including such
    49  claims of the federal or  any  state  or  local  government  for  losses
    50  incurred,  third  party  claims,  claims  for unearned premiums, and all
    51  claims of a security fund, guaranty association or the equivalent except
    52  claims arising under reinsurance contracts.
    53    (iii) Class three. Claims of the federal government except those under
    54  class two above.

        S. 2008--A                         125                        A. 3008--A
 
     1    (iv) Class four. Claims for wages owing to  employees  of  an  insurer
     2  against  whom  a proceeding under this article is commenced for services
     3  rendered within one year before  commencement  of  the  proceeding,  not
     4  exceeding  one thousand two hundred dollars to each employee, and claims
     5  for unemployment insurance contributions required by article eighteen of
     6  the  labor  law.  Such  priority  shall  be in lieu of any other similar
     7  priority which may be authorized by law.
     8    (v) Class five. Claims of state and  local  governments  except  those
     9  under class two above.
    10    (vi) Class six. Claims of general creditors including[, but not limit-
    11  ed to,] claims arising under reinsurance contracts.
    12    (vii)  Class  seven.  Claims filed late or any other claims other than
    13  claims under class eight or class nine below.
    14    (viii) Class eight. Claims for advanced or borrowed funds made  pursu-
    15  ant to section one thousand three hundred seven of this chapter.
    16    (ix)  Class  nine.  Claims  of  shareholders  or other owners in their
    17  capacity as shareholders.
    18    § 3. Section 7435 of the insurance law, as added by chapter 802 of the
    19  laws of 1985, paragraph 7 of subsection (a) as amended by chapter 300 of
    20  the laws of 1996, is amended to read as follows:
    21    § 7435. Distribution for life insurers. (a) Upon the recommendation of
    22  the superintendent, as receiver, and under the direction of  the  court,
    23  distribution  payments  shall  be  made in a manner that will assure the
    24  proper recognition of priorities and a reasonable  balance  between  the
    25  expeditious completion of the proceeding subject to this article and the
    26  protection  of  unliquidated  and  undetermined  claims. The priority of
    27  distribution of claims from the estate of [a] an insolvent  life  insur-
    28  ance  company  in  any  proceeding  subject  to this article shall be in
    29  accordance with the order in which each class of claims is [herein]  set
    30  forth  in  this section and as provided in this section.  Every claim in
    31  each class shall[, subject to such limitations as may be  prescribed  by
    32  law  and  do  not  directly conflict with the express provisions of this
    33  section,] be paid in full or adequate funds retained  for  such  payment
    34  before the members of the next class receive any payment.  No subclasses
    35  shall be established within any class.  No claim by a shareholder, poli-
    36  cyholder,  annuitant, or other creditor shall be permitted to circumvent
    37  the priority classes through the use of equitable remedies. The order of
    38  distribution of claims shall be:
    39    (1) Class one. Claims with respect to the actual and  necessary  costs
    40  and  expenses of administration, incurred by the liquidator, rehabilita-
    41  tor, conservator or ancillary rehabilitator under this  article,  or  by
    42  The  Life  Insurance  Guaranty Corporation or The Life Insurance Company
    43  Guaranty Corporation of New York, and claims described in subsection (d)
    44  of section seven thousand seven hundred thirteen of this chapter.
    45    (2) Class two. [Debts due to employees for services performed  to  the
    46  extent  that  they  do  not  exceed one thousand two hundred dollars and
    47  represent payment for services performed  within  one  year  before  the
    48  commencement  of a proceeding under this article. Such priority shall be
    49  in lieu of any other similar priority which may be authorized by law  as
    50  to  wages or compensation of employees] All claims under insurance poli-
    51  cies, including such claims of the federal or any state or local govern-
    52  ment, annuity contracts, and funding agreements, and all claims  of  the
    53  The Life Insurance Company Guaranty Corporation of New York or any other
    54  guaranty  corporation  or association of this state or another jurisdic-
    55  tion, other than claims provided for in paragraph one of this subsection
    56  and claims for interest.

        S. 2008--A                         126                        A. 3008--A
 
     1    (3) Class three. [All  claims  for  payment  for  goods  furnished  or
     2  services  rendered  to the impaired or insolvent insurer in the ordinary
     3  course of business within ninety days prior to the  date  on  which  the
     4  insurer  was determined to be impaired or insolvent, whichever is appli-
     5  cable]  Claims  of  the federal government except claims provided for in
     6  paragraph two of this subsection.
     7    (4)  Class  four.  [All  claims  under  insurance  policies,   annuity
     8  contracts  and  funding agreements, and all claims of The Life Insurance
     9  Company Guaranty Corporation of New York or any  other  guaranty  corpo-
    10  ration  or association of this state or another jurisdiction, other than
    11  (i) claims provided for in paragraph one of this  subsection,  and  (ii)
    12  claims  for  interest]  Debts due to employees for services performed to
    13  the extent that they do not exceed one thousand two hundred dollars  and
    14  represent  payment  for  services  performed  within one year before the
    15  commencement of a proceeding under this article. Such priority shall  be
    16  in  lieu  of any other similar priority that may be authorized by law as
    17  to wages or compensation of employees.
    18    (5) Class five. [Claims of the federal or any state or  local  govern-
    19  ment.  Claims, including those of any governmental body for a penalty or
    20  forfeiture, shall be allowed to this class only to  the  extent  of  the
    21  pecuniary  loss sustained from the act, transaction or proceeding out of
    22  which the penalty or forfeiture arose, with reasonable and actual  costs
    23  occasioned  thereby.  The remainder of such claims shall be postponed to
    24  the class of claims under paragraph eight of this subsection] All claims
    25  for payment for goods furnished or services rendered to the impaired  or
    26  insolvent  insurer in the ordinary course of business within ninety days
    27  prior to the date on which the insurer was determined to be impaired  or
    28  insolvent, whichever is applicable.
    29    (6) Class six. [Claims of general creditors and any other claims other
    30  than  claims under paragraphs seven and eight of this subsection] Claims
    31  of any state or local government other than claims  provided  for  under
    32  paragraph two of this subsection. Claims, including those of any govern-
    33  mental  body for a penalty or forfeiture, shall be allowed to this class
    34  only to the extent of pecuniary loss  sustained  from  the  act,  trans-
    35  action, or proceeding out of which the penalty or forfeiture arose, with
    36  reasonable  and  actual  costs occasioned thereby. The remainder of such
    37  claims shall be postponed to the class of claims under paragraph nine of
    38  this subsection.
    39    (7) Class seven. [Surplus, capital or contribution notes,  or  similar
    40  obligations] Claims of general creditors and any other claims other than
    41  claims under paragraphs eight and nine of this subsection.
    42    (8)  Class  eight. [The claims of (i) policyholders, other than claims
    43  under paragraph four of this subsection, and (ii) shareholders or  other
    44  owners] Surplus, capital, or contribution notes, or similar obligations.
    45    (9)  Class nine. The claims of policyholders or annuitants, other than
    46  claims under paragraph two of this subsection, and shareholders or other
    47  owners.
    48    (b) Every claim under  a  separate  account  agreement  providing,  in
    49  effect,  that the assets in the separate account shall not be chargeable
    50  with liabilities arising out of any other business of the insurer  shall
    51  be  satisfied  out  of  the  assets in the separate account equal to the
    52  reserves maintained in such account  for  such  agreement  and,  to  the
    53  extent,  if  any,  not  fully  discharged thereby, shall be treated as a
    54  class four claim against the estate of the life insurance company.
    55    (c) For purposes of this section:

        S. 2008--A                         127                        A. 3008--A
 
     1    (1) "The estate of the life insurance company" shall mean the  general
     2  assets  of  such company less any assets held in separate accounts that,
     3  pursuant to section four thousand two hundred forty of this chapter, are
     4  not chargeable with liabilities arising out of any other business of the
     5  insurer.
     6    (2) "Insurance  policies,  annuity  contracts  and funding agreements"
     7  shall mean all policies and contracts of any of the kinds  of  insurance
     8  specified  in  paragraph  one, two or three of subsection (a) of section
     9  one thousand one hundred thirteen of this chapter and all funding agree-
    10  ments described in section three thousand two hundred twenty-two of this
    11  chapter, including all separate account agreements, except that separate
    12  account agreements referred to in subsection (b) of this  section  shall
    13  be included only to the extent referred to therein.
    14    (3) "Separate  account  agreement or agreements" shall mean any agree-
    15  ment or agreements for separate accounts referred  to  in  section  four
    16  thousand two hundred forty of this chapter.
    17    § 4. This act shall take effect immediately.
 
    18                                  SUBPART C
 
    19    Section  1.  Section 1104 of the insurance law, the section heading as
    20  amended and subsections (c) and (d) as added by chapter 235 of the  laws
    21  of  1989,  the opening paragraph of subsection (c) as amended by chapter
    22  598 of the laws of 2000, is amended to read as follows:
    23    § 1104. Revocation or suspension of license;  restriction  of  license
    24  authority  or limitation on premiums written. (a) The superintendent may
    25  revoke any license, certificate of authority, or registration issued  to
    26  any  foreign  or alien insurer to do an insurance business in this state
    27  if, after notice to and hearing, [he] the superintendent finds that such
    28  insurer has failed to comply with any requirement imposed upon it by the
    29  provisions of this chapter and if in [his] the superintendent's judgment
    30  such revocation is reasonably necessary to protect the interests of  the
    31  people  of this state. The superintendent may, in his or her discretion,
    32  reinstate any such license, certificate of authority, or registration if
    33  [he] the superintendent finds that a ground for such revocation no long-
    34  er exists.
    35    (b) The superintendent shall revoke the certificate  of  authority  of
    36  any corporation or agent convicted of violating section two thousand six
    37  hundred three of this chapter.
    38    (c) [The] (1) Notwithstanding any other provision of this chapter, the
    39  superintendent may [suspend the license, restrict the license authority,
    40  or  limit  the  amount of premiums written in this state of any accident
    41  and  health  insurance  company,  property/casualty  insurance  company,
    42  co-operative property/casualty insurance company, title insurance compa-
    43  ny,  mortgage  guaranty  insurance  company,  reciprocal insurer, Lloyds
    44  underwriters or nonprofit property/casualty insurance company] take  one
    45  or  more  of the actions specified in subparagraph (B) of paragraph four
    46  of this subsection against an insurer, except those insurers subject  to
    47  the  provisions  of subsection (c) of section two thousand three hundred
    48  forty-three of this chapter, if after a  hearing  on  a  record,  unless
    49  waived  by the affected insurer, the superintendent determines that such
    50  insurer's surplus to policyholders is not adequate in  relation  to  the
    51  insurer's  outstanding  liabilities  or to its financial needs or if the
    52  superintendent otherwise determines that the continued operation of  the
    53  insurer  might be deemed to be hazardous to the insurer's policyholders,
    54  creditors, or to the general public.

        S. 2008--A                         128                        A. 3008--A
 
     1    (2) All matters pertaining to a proceeding or  determination  pursuant
     2  to  this subsection shall be confidential and not subject to subpoena or
     3  public inspection under article six of the public officers  law  or  any
     4  other  statute,  except  to  the  extent  that  the superintendent finds
     5  release  of  information  necessary  to  protect the public. The hearing
     6  shall be initiated within twenty days after written notice to the insur-
     7  er. Any determination pursuant to this subsection shall contain findings
     8  specifying the factors deemed significant in regard  to  the  particular
     9  insurer,  and  shall  set  forth  the reasons supporting the suspension,
    10  restriction or limitation ordered by the superintendent.
    11    (3) The superintendent may consider the following  factors  [shall  be
    12  considered by the superintendent] in making [such] a determination as to
    13  whether an insurer's surplus to policyholders is adequate in relation to
    14  the insurer's outstanding liabilities or to its financial needs:
    15    [(1)]  (A) the size of the insurer as measured by its admitted assets,
    16  capital and surplus to policyholders, reserves, premium writings, insur-
    17  ance in force and other appropriate criteria, with such surplus to poli-
    18  cyholders for foreign insurers adjusted in accordance with  section  one
    19  thousand four hundred thirteen of this chapter;
    20    [(2)]  (B)  the  extent to which the insurer's business is diversified
    21  among the several kinds of insurance;
    22    [(3)] (C) the number and size of risks insured in each kind of  insur-
    23  ance and the insurer's loss experience in regard to such risks;
    24    [(4)]  (D)  the  extent  of  geographical  dispersion of the insurer's
    25  risks;
    26    [(5)] (E) the nature and extent of the insurer's reinsurance program;
    27    [(6)] (F) the quality, diversification and liquidity of the  insurer's
    28  investment portfolio;
    29    [(7)] (G) the recent past and projected future trends in regard to the
    30  insurer's  loss  experience  and in the size of the insurer's surplus to
    31  policyholders;
    32    [(8)] (H) the surplus to policyholders maintained by other  comparable
    33  insurers;
    34    [(9)] (I) the adequacy of the insurer's reserves; and
    35    [(10)]  (J)  the  quality and liquidity of investments in subsidiaries
    36  made pursuant to this chapter.
    37    (4)(A) The superintendent may consider the following standards, either
    38  singly or a combination of two or more, to determine whether the contin-
    39  ued operation of any insurer might be deemed  to  be  hazardous  to  its
    40  policyholders, creditors, or to the general public:
    41    (i)  adverse  findings  reported  in  financial  condition  and market
    42  conduct examination reports, audit reports, actuarial opinions, reports,
    43  or summaries, or other reports;
    44    (ii) the national association  of  insurance  commissioners  insurance
    45  regulatory  information system and its other financial analysis solvency
    46  tools and reports;
    47    (iii) whether the insurer has made adequate  provision,  according  to
    48  presently  accepted actuarial standards of practice, for the anticipated
    49  cash flows required by the contractual obligations and related  expenses
    50  of  the  insurer,  when  considered  in  light of the assets held by the
    51  insurer with respect to  such  reserves  and  related  actuarial  items,
    52  including the investment earnings on such assets, and the considerations
    53  anticipated  to  be  received  and  retained  under  such  policies  and
    54  contracts;
    55    (iv) the ability of an assuming reinsurer to perform and  whether  the
    56  insurer's  reinsurance  program  provides  sufficient protection for the

        S. 2008--A                         129                        A. 3008--A
 
     1  insurer's remaining surplus after taking into account the insurer's cash
     2  flow and the classes of business written as well as the financial condi-
     3  tion of the assuming reinsurer;
     4    (v)  whether  the  insurer's  operating  loss in the last twelve-month
     5  period or any shorter period of time,  including  net  capital  gain  or
     6  loss,  change  in non-admitted assets, and cash dividends paid to share-
     7  holders, is greater  than  fifty  percent  of  the  insurer's  remaining
     8  surplus to policyholders in excess of the minimum required;
     9    (vi)  whether  the  insurer's  operating loss in the last twelve-month
    10  period or any shorter period of time, excluding net  capital  gains,  is
    11  greater  than twenty percent of the insurer's remaining surplus to poli-
    12  cyholders in excess of the minimum required;
    13    (vii) whether a reinsurer, an obligor, any  entity  in  the  insurer's
    14  holding company system, as defined in paragraph six of subsection (a) of
    15  section one thousand five hundred one of this chapter, or any subsidiary
    16  of  an  insurer, is insolvent, threatened with insolvency, or delinquent
    17  in payment of its monetary or other obligations, and which in the  opin-
    18  ion of the superintendent may affect the solvency of the insurer;
    19    (viii)  contingent  liabilities,  pledges,  or  guarantees that either
    20  individually or collectively involve a total amount that in  the  super-
    21  intendent's opinion may affect the insurer's solvency;
    22    (ix)  whether  any person who controls an insurer, as defined in para-
    23  graph two of subsection (a) of section one thousand five hundred one  of
    24  this  chapter,  is delinquent in the transmitting to, or payment of, net
    25  premiums to the insurer;
    26    (x) the age and collectability of receivables;
    27    (xi) whether the management of an insurer, including officers,  direc-
    28  tors, or any other person who directly or indirectly controls the opera-
    29  tion  of  the  insurer, fails to possess and demonstrate the competence,
    30  fitness, and reputation deemed necessary to serve the  insurer  in  such
    31  position;
    32    (xii)  whether  the  insurer's  management has failed to respond to an
    33  inquiry of the superintendent relative to the insurer's condition or has
    34  furnished false and misleading information concerning such an inquiry;
    35    (xiii) whether  the  insurer  has  failed  to  meet  financial  filing
    36  requirements  or  filing  requirements  pursuant  to  articles  fifteen,
    37  sixteen, or seventeen of this chapter, or regulations promulgated there-
    38  under, in the absence of a reason satisfactory to the superintendent;
    39    (xiv) whether the insurer's management either has filed any  false  or
    40  misleading  sworn financial statement, or has released false or mislead-
    41  ing financial statements to  lending  institutions  or  to  the  general
    42  public, or has made a false or misleading entry, or has omitted an entry
    43  of material amount in the insurer's books;
    44    (xv)  whether  the  insurer has grown so rapidly and to such an extent
    45  that it lacks adequate financial and administrative capacity to meet its
    46  obligations in a timely manner;
    47    (xvi) whether the insurer has experienced or is expected to experience
    48  in the foreseeable future cash flow or liquidity problems;
    49    (xvii) whether management has established reserves that do not  comply
    50  with  minimum  standards  established  by  this  chapter  or regulations
    51  promulgated thereunder, statutory accounting standards,  as  adopted  by
    52  the  superintendent,  sound  actuarial principles and standards of prac-
    53  tice;
    54    (xviii) whether management  persistently  engages  in  material  under
    55  reserving that results in adverse development;

        S. 2008--A                         130                        A. 3008--A
 
     1    (xix)  whether  any  transaction with an affiliate, a subsidiary, or a
     2  parent for which the insurer receives assets or capital gains, or  both,
     3  do  not  provide sufficient value, liquidity, or diversity to assure the
     4  insurer's ability to meet its outstanding obligations  as  they  mature;
     5  and
     6    (xx)  any other finding determined by the superintendent to be hazard-
     7  ous to the insurer's policyholders, creditors, or to the general public.
     8    (B) If the superintendent determines that  the  insurer's  surplus  to
     9  policyholders  is  not adequate in relation to the insurer's outstanding
    10  liabilities or to its financial needs or if the superintendent otherwise
    11  determines that the continued operation of the insurer may be  hazardous
    12  to  its  policyholders,  creditors,  or  to the general public, then the
    13  superintendent may, upon a determination, suspend the insurer's license,
    14  certificate  of  authority,  or  registration,  restrict  the  insurer's
    15  license,  certificate  of authority, or registration authority, or issue
    16  an order requiring the insurer to do one or more of the following:
    17    (i) reduce the total amount of present  and  potential  liability  for
    18  policy benefits by reinsurance;
    19    (ii)  reduce,  suspend, or limit the volume of business being accepted
    20  or renewed, or limit the amount of premiums written in this state;
    21    (iii) reduce general insurance and commission  expenses  by  specified
    22  methods;
    23    (iv) increase the insurer's capital and surplus;
    24    (v)  suspend  or  limit the declaration and payment of dividends by an
    25  insurer to its stockholders or policyholders;
    26    (vi) file reports on a form and in a manner acceptable to  the  super-
    27  intendent concerning the market value of an insurer's assets;
    28    (vii)  limit  or  withdraw  from  certain  investments  or discontinue
    29  certain investment practices to  the  extent  the  superintendent  deems
    30  necessary;
    31    (viii) document the adequacy of premium rates in relation to the risks
    32  insured;
    33    (ix) file, in addition to regular annual statements, interim financial
    34  reports  on  a  form  and  in a manner prescribed by the superintendent,
    35  which may include a form adopted by the national association  of  insur-
    36  ance commissioners;
    37    (x)  correct corporate governance practice deficiencies, and adopt and
    38  utilize governance practices acceptable to the superintendent;
    39    (xi) provide a business plan to the superintendent in order to contin-
    40  ue to transact business in this state; or
    41    (xii) notwithstanding any other provision of law, adjust rates for any
    42  non-life insurance policy or contract written by the  insurer  that  the
    43  superintendent  considers  necessary  to improve the insurer's financial
    44  condition.
    45    (d) [The superintendent  shall  identify  and  review  those  licensed
    46  property/casualty  insurers  needing  immediate  or  targeted regulatory
    47  attention, and shall include the number of insurers so identified in the
    48  report required by section three hundred thirty-four  of  this  chapter.
    49  Such   report   shall   also   include   the   name   of  each  licensed
    50  property/casualty insurer placed in  formal  conservatorship,  rehabili-
    51  tation or liquidation during the preceding year. Nothing herein shall be
    52  construed  to restrict or diminish any right or power of the superinten-
    53  dent under any other provision of this chapter] For the purposes of this
    54  section, "insurer" shall mean  any  person,  firm,  association,  corpo-
    55  ration, or joint-stock company authorized to do an insurance business in
    56  this  state  by  a  license  in force pursuant to the provisions of this

        S. 2008--A                         131                        A. 3008--A
 
     1  chapter or exempted by the provisions of this chapter from such  licens-
     2  ing, except that, for purposes of this section, the term "insurer" shall
     3  not  include  any  health maintenance organization operating pursuant to
     4  section  one thousand one hundred nine of this chapter or any continuing
     5  care retirement community operating pursuant to section one thousand one
     6  hundred nineteen of this chapter.
     7    § 2. This act shall take effect immediately.
     8    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
     9  sion, section or subpart of this act shall be adjudged by any  court  of
    10  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    11  impair, or invalidate the remainder thereof, but shall  be  confined  in
    12  its  operation  to the clause, sentence, paragraph, subdivision, section
    13  or subpart thereof directly involved in the controversy  in  which  such
    14  judgment  shall  have  been  rendered.  It  is hereby declared to be the
    15  intent of the legislature that this act would have been enacted even  if
    16  such invalid provisions had not been included herein.
    17    §  3.  This  act shall take effect immediately provided, however, that
    18  the applicable effective date of Subparts A through C of this act  shall
    19  be as specifically set forth in the last section of such Subparts.
 
    20                                   PART HH
 
    21    Section  1. Paragraph (a) of subdivision 2 of section 179 of the navi-
    22  gation law, as amended by section 2 of part X of chapter 58 of the  laws
    23  of 2015, is amended to read as follows:
    24    (a)  An  account  which  shall  be  credited with all license fees and
    25  penalties collected pursuant to paragraph (b)  of  subdivision  one  and
    26  paragraph (a) of subdivision four of section one hundred seventy-four of
    27  this article except as provided in section one hundred seventy-nine-a of
    28  this  article,  the portion of the surcharge collected pursuant to para-
    29  graph (d) of subdivision four of section  one  hundred  seventy-four  of
    30  this  article, penalties collected pursuant to paragraph (b) of subdivi-
    31  sion four of section one hundred seventy-four-a of this  article,  money
    32  collected  pursuant to section one hundred eighty-seven of this article,
    33  all penalties collected pursuant to section one  hundred  ninety-two  of
    34  this  article,  and  registration fees collected pursuant to subdivision
    35  two of section 17-1009 of the environmental conservation law.
    36    § 2. The navigation law is amended by adding a new  section  179-a  to
    37  read as follows:
    38    §  179-a.  New  York  environmental  protection  and spill remediation
    39  account. 1. There is hereby created an account within the  miscellaneous
    40  capital  projects  fund, the New York environmental protection and spill
    41  remediation account. The New York  environmental  protection  and  spill
    42  remediation  account shall consist of license fees received by the state
    43  pursuant to section one hundred seventy-four  of  this  article,  in  an
    44  amount equal to expenditures made from this account.
    45    2.  These  moneys,  after appropriation by the legislature, and within
    46  the amounts set forth and for the several purposes specified,  shall  be
    47  available  to reimburse the department of environmental conservation for
    48  expenditures associated with the purposes of costs incurred  under  this
    49  article,  including  cleanup  and removal of petroleum spills, and other
    50  capital, investigation, maintenance and remediation costs.
    51    3. All payments made from the New York  environmental  protection  and
    52  spill  remediation  account  shall  be  made  by  the administrator upon
    53  certification by the commissioner.

        S. 2008--A                         132                        A. 3008--A
 
     1    4. Spending pursuant to this section shall be included in  the  annual
     2  report required by section one hundred ninety-six of this article.
     3    §  3.  Subdivision 3 of section 176 of the navigation law, as added by
     4  chapter 845 of the laws of 1977, is amended to read as follows:
     5    3. Any unexplained discharge of petroleum within state jurisdiction or
     6  discharge of petroleum occurring in  waters  beyond  state  jurisdiction
     7  that  for  any  reason  penetrates  within  state  jurisdiction shall be
     8  removed by or under the direction of the department.  Except  for  those
     9  expenses  incurred  by  the  party  causing such discharge, any expenses
    10  incurred in the removal of discharges shall be paid  promptly  from  the
    11  New  York  environmental protection and spill compensation fund pursuant
    12  to [section] sections one hundred and eighty-six and one hundred  seven-
    13  ty-nine-a  of this article and any reimbursements due such fund shall be
    14  collected in accordance with the provisions of section one  hundred  and
    15  eighty-seven of this article.
    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, 2017.
 
    18                                   PART II
 
    19    Section 1. This act shall be known and may  be  cited  as  the  "clean
    20  water infrastructure act of 2017".
    21    §  2.  Article  15 of the environmental conservation law is amended by
    22  adding a new title 33 to read as follows:
 
    23                                  TITLE 33
    24                      SOURCE WATER PROTECTION PROJECTS
    25  Section 15-3301. Definitions.
    26          15-3303. Land acquisition projects for source water protection.
    27  § 15-3301. Definitions.
    28    As used in this title the following terms shall mean:
    29    1. "Land acquisition projects" means open space  acquisition  projects
    30  undertaken  with  willing  sellers  including,  but  not limited to, the
    31  purchase of conservation easements,  undertaken  by  a  municipality,  a
    32  not-for-profit  corporation,  or purchase of conservation easements by a
    33  soil and water conservation district.
    34    2. "Municipality" means the same as such term as  defined  in  section
    35  56-0101 of this chapter.
    36    3. "Not-for-profit corporation" means a corporation formed pursuant to
    37  the  not-for-profit  corporation law and qualified for tax-exempt status
    38  under the federal internal revenue code.
    39    4. "Soil and water conservation district" means the same as such  term
    40  as  defined in section five of the soil and water conservation districts
    41  law.
    42    5. "State assistance payment" means payment of the state share of  the
    43  cost  of projects authorized by this title to preserve, enhance, restore
    44  and improve the quality of the state's environment.
    45  § 15-3303. Land acquisition projects for source water protection.
    46    1. The commissioner is authorized to provide state assistance to muni-
    47  cipalities, not-for-profit corporations and soil and water  conservation
    48  districts  to  undertake  land  acquisition  projects  for  source water
    49  protection, in cooperation with willing sellers. Projects shall develop,
    50  expand or enhance water quality protection, including but not limited to
    51  aquifers, watersheds,  reservoirs,  lakes,  rivers  and  streams.    The
    52  department  shall set forth the state share of land acquisition projects
    53  in any request for proposal issued to solicit projects.

        S. 2008--A                         133                        A. 3008--A
 
     1    2. Any conservation easement acquired pursuant to  this  section  that
     2  encumbers  lands  in  a  county  designated state certified agricultural
     3  district shall allow agricultural activity on such lands  provided  that
     4  the  activity  complies  with  all applicable technical standards estab-
     5  lished by the natural resources conservation service.
     6    3.  In  evaluating  projects  pursuant to this section, the department
     7  shall give priority first to projects which protect or recharge drinking
     8  water sources and watersheds including riparian buffers  and  second  to
     9  projects which improve resilience.
    10    4.  No  state  assistance  may be provided pursuant to this section to
    11  fund any project committed to in any agreement pursuant to a  filtration
    12  avoidance determination.
    13    5. The commissioner may enter into a contract with a municipality or a
    14  not-for-profit  corporation  for  the  undertaking of a land acquisition
    15  project. Costs under such contracts are subject to final computation  by
    16  the  department upon completion of the project, and shall not exceed the
    17  maximum eligible cost set forth in any such contract.
    18    6. The cost of a source water protection land acquisition project  may
    19  include  the  cost  of preparation of a plan for the preservation of the
    20  real property interest in land acquired pursuant to this section  except
    21  where  such  considerations  have already been undertaken as part of any
    22  existing plan applicable to the newly acquired real property interest in
    23  land.
    24    7. The soil and water conservation committee in consultation with  the
    25  commissioner  of  agriculture and markets is authorized to provide state
    26  assistance payments to county soil and water conservation districts  for
    27  land  acquisition  projects  for source water protection consistent with
    28  section eleven-b of the  soil  and  water  conservation  districts  law.
    29  Projects  shall  develop,  expand  or  enhance water quality protection,
    30  including but not limited to aquifers,  watersheds,  reservoirs,  lakes,
    31  rivers  and  streams.    Such  committee shall give priority to projects
    32  which establish buffers from waters which serves as or  are  tributaries
    33  to  drinking  water  supplies  for  such projects using state assistance
    34  pursuant to this section.
    35    8. a. Real property acquired, developed, improved, restored  or  reha-
    36  bilitated  by or through a municipality with funds made available pursu-
    37  ant to this title shall not  be  sold,  leased,  exchanged,  donated  or
    38  otherwise  disposed  of  or used for other than water quality protection
    39  purposes without approval from the department, which shall  provide  for
    40  the  substitution  of  other lands of equal environmental value and fair
    41  market value and reasonably equivalent usefulness and location to  those
    42  to  be discontinued, sold or disposed of, and such other requirements as
    43  shall be approved by the commissioner; provided, however, that such real
    44  property may be sold, leased, exchanged, donated or  otherwise  disposed
    45  of  to  the state, another municipality or a not-for-profit for the same
    46  purposes.
    47    b. Real property acquired by a not-for-profit organization with  funds
    48  made  available  pursuant  to  this  title  shall  not  be sold, leased,
    49  exchanged, donated or otherwise disposed of, except to a municipality or
    50  the state for the same purposes, without the approval of the department.
    51    9. If the state acquires a real property interest in land purchased by
    52  a municipality or not-for-profit with funds made available  pursuant  to
    53  this  title,  the state shall pay the fair market value of such interest
    54  less the amount of funding  provided  by  the  state  pursuant  to  this
    55  section.

        S. 2008--A                         134                        A. 3008--A
 
     1    §  3. The public health law is amended by adding a new section 1113 to
     2  read as follows:
     3    §  1113. Lead service line replacement grant program.  Notwithstanding
     4  section one hundred sixty-three of the state finance law or  any  incon-
     5  sistent  provision  of law to the contrary, and within amounts appropri-
     6  ated therefor, the department shall award grants to municipalities with-
     7  out a formal competitive process, for purposes of replacing lead service
     8  lines used to supply drinking  water.  When  determining  which  munici-
     9  palities shall receive awards and the amount of such awards, the depart-
    10  ment  shall  consider  for  each municipality the cost of replacing lead
    11  service lines and the number of persons who receive drinking water  from
    12  such service lines, and shall give priority to those municipalities with
    13  low-income  communities,  according  to a methodology as shall be deter-
    14  mined by the department.
    15    § 4. Article 27 of the environmental conservation law  is  amended  by
    16  adding a new title 12 to read as follows:
 
    17                                  TITLE 12
    18    CLEANUP AND ABATEMENT OF CERTAIN SOLID WASTE SITE AND DRINKING WATER
    19                                CONTAMINATION
    20  Section 27-1201. Definitions.
    21          27-1203. Mitigation and cleanup of solid waste sites.
    22          27-1205. Mitigation of contaminants in drinking water.
    23          27-1207. Use  and  reporting  of  solid waste and drinking water
    24                     response account.
    25          27-1209. Rules and regulations.
    26  § 27-1201. Definitions.
    27    When used in this title:
    28    1. "Mitigation and cleanup" means the investigation, sampling, manage-
    29  ment, removal, remediation or restoration of a solid waste site and  all
    30  other  actions  required  to restore or protect drinking water supplies,
    31  groundwater, or other environmental media and restoration of the site to
    32  a condition that it is no longer causing or contributing to pollution of
    33  groundwater, water supplies or the environment.
    34    2. "Solid waste site" means a disposal facility as  defined  in  regu-
    35  lations  where solid waste has been improperly disposed as determined by
    36  the department or a court of competent jurisdiction,  or  an  active  or
    37  inactive solid waste management facility as defined in regulations where
    38  an impact to drinking water supplies, groundwater contamination or other
    39  environmental  contamination  is  known  or  suspected. Solid waste site
    40  shall not include a site subject to investigation or remediation  pursu-
    41  ant to title thirteen or fourteen of this article.
    42    3. "Solid waste and drinking water response account" means the account
    43  established pursuant to subdivision one of section ninety-seven-b of the
    44  state finance law.
    45  § 27-1203. Mitigation and cleanup of solid waste sites.
    46    1. The solid waste site cleanup priorities in this state are:
    47    a.  first,  to  mitigate  and  cleanup any solid waste site causing or
    48  contributing to impairments of drinking water quality; and
    49    b. second, to mitigate and cleanup solid waste sites which are causing
    50  or contributing to other environmental contamination  which  may  impact
    51  public health.
    52    2.  The  owner or operator of a solid waste site shall, at the depart-
    53  ment's written request, submit to and cooperate with any and all remedi-
    54  al measures deemed necessary by the department for  the  mitigation  and
    55  cleanup of solid waste. The department may implement all necessary meas-

        S. 2008--A                         135                        A. 3008--A

     1  ures  to  mitigate  and  cleanup  the  solid waste site after making all
     2  reasonable efforts to identify and compel the owner or operator to coop-
     3  erate with the department. The department is not required to commence  a
     4  hearing or issue an order prior to using moneys from the solid waste and
     5  drinking water response account.
     6    3.  All necessary and reasonable expenses of mitigation and cleanup of
     7  a solid waste site shall be paid by the person  or  persons  who  owned,
     8  operated or maintained the solid waste site except as provided in subdi-
     9  vision  four of this section, or from the solid waste and drinking water
    10  response account and shall be a debt recoverable by the state  from  all
    11  persons  who  owned,  operated or maintained the solid waste site, and a
    12  lien may be imposed upon real property pursuant to  subdivision  sixteen
    13  of  section ninety-seven-b of the state finance law, and a charge may be
    14  placed on the premises upon which the solid waste site is maintained and
    15  upon any real or personal property, equipment, vehicles,  and  inventory
    16  controlled  by such person or persons. Moneys recovered shall be paid to
    17  the solid waste and drinking water response account.
    18    4. a. The department shall make all reasonable efforts to recover  the
    19  full  amount  of  any  funds  expended from the solid waste and drinking
    20  water response account for mitigation and cleanup through litigation  or
    21  cooperative  agreements.  Any  and all moneys recovered, repaid or reim-
    22  bursed pursuant to this section shall be deposited with the  comptroller
    23  and credited to such fund.
    24    b.  When a municipality develops and implements a plan to investigate,
    25  mitigate and cleanup a solid waste site, as approved by the  department,
    26  for  a  site which is owned or has been operated by such municipality or
    27  when the department, pursuant  to  an  agreement  with  a  municipality,
    28  develops and implements such a plan, the commissioner shall, in the name
    29  of  the  state,  agree in such agreement to provide from the solid waste
    30  and drinking water response account, within the limitations of appropri-
    31  ations  therefor,  seventy-five  percent  of  the  eligible  design  and
    32  construction costs of such program which are not recovered from or reim-
    33  bursed or paid by a responsible party or the federal government.
    34    5.  The  department  shall have the authority to enter all solid waste
    35  sites for the purpose of investigation, mitigation and cleanup.
    36  § 27-1205. Mitigation of contaminants in drinking water.
    37    1. Whenever the commissioner of health has  required  a  public  water
    38  system  to  take  action  to reduce exposure to contaminants pursuant to
    39  section eleven hundred twelve of the public health law, or at  any  time
    40  upon  the  request  of  the  commissioner  of health, the department may
    41  undertake all reasonable and necessary  measures  to  ensure  that  safe
    42  drinking water is expeditiously made available to all people in any area
    43  of  the  state  in which contamination is known to be present. Such area
    44  shall include, at a minimum, all properties served by the  water  system
    45  and  any land and any surface or underground water sources identified by
    46  the department or department of health as causing or contributing to the
    47  contamination.  The department's measures may include  the  installation
    48  of  treatment  systems,  including  but  not  limited to installation of
    49  onsite water supplies, or the  provision  of  alternative  water  supply
    50  sources to ensure that water meets applicable maximum contaminant levels
    51  or other threshold concentrations set by the department of health.
    52    2.  If  the department, in consultation with the department of health,
    53  is able to identify a source of contamination which caused  or  contrib-
    54  uted  to contamination, the department shall require the owner or opera-
    55  tor of the source of contamination to investigate, develop and implement
    56  a plan to remediate the source of contamination.

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     1    3. The department shall make all reasonable  efforts  to  recover  the
     2  full  amount  of  any  funds  expended from the solid waste and drinking
     3  water response account for a drinking water response through  litigation
     4  or  cooperative  agreements.    Any  and all moneys recovered, repaid or
     5  reimbursed  pursuant  to  this section shall be deposited with the comp-
     6  troller and credited to such account.
     7    a. When a municipality develops and implements a plan  to  respond  to
     8  drinking  water contamination, determined pursuant to subdivision one of
     9  this section, and the plan is approved by the  department,  for  a  site
    10  which  is  owned  or  has been operated by such municipality or when the
    11  department, pursuant to an agreement with a municipality,  develops  and
    12  implements  such  a  plan,  the  commissioner  shall, in the name of the
    13  state, agree in such agreement to  provide  from  the  solid  waste  and
    14  drinking  water  response  account,  within the limitations of appropri-
    15  ations  therefor,  seventy-five  percent  of  the  eligible  design  and
    16  construction  costs  of such program and which are not recovered from or
    17  reimbursed or paid by a responsible party or the federal government.
    18  § 27-1207. Use and reporting of solid waste and drinking water  response
    19               account.
    20    1.  The  solid waste and drinking water response account shall be made
    21  available to the department for the following purposes:
    22    a. enumeration and assessment of solid waste sites;
    23    b. investigation and environmental  characterization  of  solid  waste
    24  sites, including environmental sampling;
    25    c. mitigation and cleanup of solid waste sites;
    26    d. mitigation of drinking water contamination;
    27    e. monitoring of solid waste sites; and
    28    f. administration and enforcement of the requirements of this title.
    29    2.  On  or  before July first, two thousand nineteen and July first of
    30  each succeeding year, the department shall report on the status  of  the
    31  program.
    32  § 27-1209. Rules and regulations.
    33    The  commissioner  shall  have the power to promulgate rules and regu-
    34  lations necessary and appropriate to carry  out  the  purposes  of  this
    35  title.
    36    § 5. Subdivisions 1, 2 and 6 and paragraphs (i) and (j) of subdivision
    37  3 of section 97-b of the state finance law, subdivision 1 as amended and
    38  paragraph  (j) of subdivision 3 as added by section 4 of part I of chap-
    39  ter 1 of the laws of 2003, subdivision 2 as amended by section 5 of part
    40  X of chapter 58 of the laws of 2015, paragraph (i) of subdivision  3  as
    41  amended by section 1 of part R of chapter 59 of the laws of 2007, subdi-
    42  vision 6 as amended by chapter 38 of the laws of 1985, are amended and a
    43  new paragraph (k) is added to subdivision 3 to read as follows:
    44    1. There is hereby established in the custody of the state comptroller
    45  a nonlapsing revolving fund to be known as the "hazardous waste remedial
    46  fund",  which  shall  consist of [a "site investigation and construction
    47  account",] an "industry fee transfer account", an "environmental  resto-
    48  ration  project  account",  "hazardous  waste  cleanup account", [and] a
    49  "hazardous waste remediation oversight and  assistance  account"  and  a
    50  "solid waste and drinking water response account".
    51    2. Such fund shall consist of all of the following:
    52    (a) [moneys appropriated for transfer to the fund's site investigation
    53  and  construction  account;  (b) all fines and other sums accumulated in
    54  the fund prior to April first, nineteen hundred eighty-eight pursuant to
    55  section 71-2725 of the environmental conservation law for deposit in the
    56  fund's site investigation and  construction  account;  (c)]  all  moneys

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     1  collected or received by the department of taxation and finance pursuant
     2  to  section 27-0923 of the environmental conservation law for deposit in
     3  the fund's industry fee transfer account; [(d)] (b) all moneys paid into
     4  the  fund  pursuant to section 72-0201 of the environmental conservation
     5  law which shall  be  deposited  in  the  fund's  industry  fee  transfer
     6  account;  [(e)]  (c) all moneys paid into the fund pursuant to paragraph
     7  (b) of subdivision one of section one hundred eighty-six of the  naviga-
     8  tion  law  which  shall be deposited in the fund's industry fee transfer
     9  account; [(f)] (d) all [monies] moneys recovered under sections 56-0503,
    10  56-0505 and 56-0507 of  the  environmental  conservation  law  into  the
    11  fund's  environmental  restoration  project  account; [(g)] (e) all fees
    12  paid into the fund pursuant to  section  72-0402  of  the  environmental
    13  conservation  law  which  shall  be deposited in the fund's industry fee
    14  transfer account; [(h)]  (f)  payments  received  for  all  state  costs
    15  incurred  in negotiating and overseeing the implementation of brownfield
    16  site cleanup agreements pursuant to title fourteen  of  article  twenty-
    17  seven  of  the  environmental conservation law shall be deposited in the
    18  hazardous waste remediation oversight and assistance  account;  (g)  all
    19  moneys recovered pursuant to title twelve of article twenty-seven of the
    20  environmental  conservation law into the fund's solid waste and drinking
    21  water response account and [(i)] (h) other  moneys  credited  or  trans-
    22  ferred  thereto  from any other fund or source for deposit in the fund's
    23  [site investigation and construction] hazardous waste cleanup account.
    24    (i) with respect to moneys in the hazardous  waste  remediation  over-
    25  sight and assistance account, non-bondable costs associated with hazard-
    26  ous  waste  remediation  projects. Such costs shall be limited to agency
    27  staff costs associated with the administration of state  assistance  for
    28  brownfield  opportunity areas pursuant to section nine hundred seventy-r
    29  of the general municipal law, agency staff  costs  associated  with  the
    30  administration  of  technical assistance grants pursuant to titles thir-
    31  teen and fourteen of article twenty-seven of the environmental conserva-
    32  tion law, and costs of  the  department  of  environmental  conservation
    33  related  to the geographic information system required by section 3-0315
    34  of the environmental conservation law; [and]
    35    (j) with respect to moneys in the hazardous  waste  remediation  over-
    36  sight  and  assistance  account, technical assistance grants pursuant to
    37  titles thirteen and fourteen of article  twenty-seven  of  the  environ-
    38  mental conservation law[.]; and
    39    (k)  With  respect  to  moneys  in  the solid waste and drinking water
    40  response account, when allocated, shall be available to  the  department
    41  of environmental conservation to undertake mitigation and cleanup as the
    42  department  of environmental conservation may determine necessary due to
    43  environmental conditions related to a solid waste site pursuant to title
    44  twelve of article twenty-seven of  the  environmental  conservation  law
    45  which  indicates that conditions on such property are impairing drinking
    46  water quality, ground water  quality  or  creating  other  environmental
    47  contamination  and  to  ensure  the  provision of safe drinking water in
    48  areas determined to have drinking water contamination by the  department
    49  of health.
    50    6.  The  commissioner  of the department of environmental conservation
    51  shall make all reasonable efforts to recover  the  full  amount  of  any
    52  funds expended from the fund pursuant to paragraph (a) and paragraph (k)
    53  of  subdivision  three of this section through litigation or cooperative
    54  agreements with responsible persons. Any and  all  moneys  recovered  or
    55  reimbursed  pursuant  to  this  section  through voluntary agreements or

        S. 2008--A                         138                        A. 3008--A
 
     1  court orders shall be deposited with the comptroller and credited to the
     2  account of such fund from which such expenditures were made.
     3    §  6. Section 97-b of the state finance law is amended by adding a new
     4  subdivision 16 to read as follows:
     5    16. (a) All costs and damages for which a  person  is  liable  to  the
     6  state  of  New  York under titles twelve and thirteen of article twenty-
     7  seven of the environmental conservation law shall constitute a  lien  in
     8  favor  of  the  state upon all real property and rights to such property
     9  which: (i) belongs to such person; and (ii) are subject to mitigation or
    10  cleanup pursuant to title twelve of article twenty-seven of the environ-
    11  mental conservation law or an inactive  hazardous  waste  disposal  site
    12  remedial  program  pursuant to title thirteen of article twenty-seven of
    13  the environmental conservation law.
    14    (b) The lien imposed by this subdivision shall arise at the  later  of
    15  the  following:  (i) the time costs are first incurred by the state with
    16  respect to a response action pursuant to titles twelve and  thirteen  of
    17  article  twenty-seven of the environmental conservation law; or (ii) the
    18  time that the person referred to in paragraph (a) of this subdivision is
    19  provided (by certified or registered mail) written notice  of  potential
    20  liability.  Such  lien shall continue until the liability for the costs,
    21  or a judgment against the person  arising  out  of  such  liability,  is
    22  satisfied, becomes unenforceable, is otherwise vacated by court order or
    23  is  released  by  the commissioner of environmental conservation where a
    24  legally enforceable agreement satisfactory to the commissioner has  been
    25  executed  relating  to the cleanup and removal costs and damage costs or
    26  reimbursing the hazardous waste remedial fund for  cleanup  and  removal
    27  costs  and damage costs, or the attachment or enforcement of the lien is
    28  determined by the commissioner not to be in the public interest.
    29    (c) The lien shall state: (i) that the lienor is the  hazardous  waste
    30  remedial  fund;  (ii)  the  name of record owner of the real property on
    31  which the lien has attached; (iii) the  real  property  subject  to  the
    32  lien,  with  a  description  thereof sufficient for identification; (iv)
    33  that the real property described in the notice is or has been subject to
    34  mitigation or cleanup pursuant to title twelve of  article  twenty-seven
    35  of  the  environmental  conservation  law or an inactive hazardous waste
    36  disposal site remedial program pursuant to  title  thirteen  of  article
    37  twenty-seven  of  the environmental conservation law and that costs have
    38  been incurred by the lienor as a result of such activities; (v) that the
    39  owner is potentially liable for costs; and (vi) that a lien has attached
    40  to the described real property.
    41    (d) The lien imposed by this  subdivision  shall  be  subject  to  the
    42  rights of any purchaser entitled to the affirmative defense set forth in
    43  subparagraph  three  of  paragraph  (a)  of  subdivision four of section
    44  27-1323 of the environmental conservation  law,  holder  of  a  security
    45  interest,  or  judgment  lien creditor whose interest is perfected under
    46  New York state law before notice of the lien has been filed pursuant  to
    47  paragraph (e) of this subdivision.
    48    (e) A notice of lien imposed by this subdivision shall be filed pursu-
    49  ant to the requirements of section one hundred eighty-one-c of the navi-
    50  gation  law;  provided  however,  that  a  copy of the notice of lien is
    51  served upon the owner of the  real  property  subject  to  the  lien  in
    52  accordance with the provisions of section eleven of the lien law.
    53    (f)  The  costs constituting the lien may be recovered in an action in
    54  rem in a court of competent jurisdiction. Nothing  in  this  subdivision
    55  shall  affect  the  right  of  the  state to bring an action against any
    56  person to recover all costs and damages for which such person is  liable

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     1  under titles twelve and thirteen of article twenty-seven of the environ-
     2  mental conservation law.
     3    §  7.  The  public  authorities law is amended by adding a new section
     4  1285-s to read as follows:
     5    § 1285-s. New York state regional water infrastructure projects.    1.
     6  For  purposes  of  this  section, "municipality" means any county, city,
     7  town,  village,  district  corporation,  county  or   town   improvement
     8  district, any public benefit corporation or public authority established
     9  pursuant  to  the laws of New York or any agency of New York state which
    10  is empowered to construct and operate a waste water  or  drinking  water
    11  infrastructure  project,  or  any two or more of the foregoing which are
    12  acting jointly in connection with such a project.
    13    2. (a) The corporation shall establish, with  funds  appropriated  for
    14  such  purpose,  a  New  York  state regional water infrastructure grants
    15  program to provide state assistance to municipalities  for  waste  water
    16  and  drinking  water infrastructure projects that have a regional impact
    17  or demonstrated efficiencies. Such regional projects  shall  benefit  or
    18  serve  multiple  municipalities,  and may include shared infrastructure,
    19  consolidation or interconnection of systems of multiple  municipalities,
    20  or projects that otherwise achieve efficiencies.
    21    (b)  A  municipality  may  make  an  application  for a regional water
    22  infrastructure grant in a manner, form and timeframe and containing such
    23  information as  the  corporation  may  require  provided  however,  such
    24  requirements  shall  not  include a requirement for prior listing on the
    25  intended use plan.
    26    3. Moneys for the regional water infrastructure grants  program  shall
    27  be  segregated  from  all other funds of or in the custody of the corpo-
    28  ration and shall only be used to provide  state  assistance  to  munici-
    29  palities  in  accordance  with  the  provisions  of  this section and to
    30  provide for the administrative and management costs of the program.
    31    4. Moneys for the regional water infrastructure grants program may  be
    32  invested as provided in subdivision six of section twelve hundred eight-
    33  y-five-j of this title.
    34    5.  Contracts  for  the  construction  of projects financed with state
    35  assistance made available pursuant to this section shall be  subject  to
    36  the  requirements  of  section  two  hundred twenty of the labor law and
    37  shall be considered "state contracts" subject to  the  requirements  and
    38  provisions of article fifteen-A of the executive law.
    39    § 8. Section 1285-q of the public authorities law, as added by section
    40  6  of  part  I of chapter 1 of the laws of 2003, subdivisions 1 and 3 as
    41  amended by section 43 of part BB of chapter 56 of the laws of  2015,  is
    42  amended to read as follows:
    43    §  1285-q.  Financing  of  hazardous  waste site remediation and solid
    44  waste and drinking water response site projects. In order to  effectuate
    45  the  purposes  of  this  title, the corporation shall have the following
    46  additional special powers:
    47    1. Subject to chapter fifty-nine of the  laws  of  two  thousand,  but
    48  notwithstanding any other provisions of law to the contrary, in order to
    49  assist the corporation in undertaking the administration and the financ-
    50  ing  of  hazardous  waste  site  remediation projects for payment of the
    51  state's share of the costs of the remediation of hazardous  waste  sites
    52  and  solid  waste  and drinking water response sites, in accordance with
    53  [title] titles twelve and thirteen of article twenty-seven of the  envi-
    54  ronmental  conservation  law  and  section  ninety-seven-b  of the state
    55  finance law, and for payment of state costs associated with the  remedi-
    56  ation  of  offsite contamination at significant threat sites as provided

        S. 2008--A                         140                        A. 3008--A
 
     1  in section 27-1411 of the environmental conservation law, and  beginning
     2  in  state  fiscal  year  two thousand fifteen - two thousand sixteen for
     3  environmental restoration projects pursuant to  title  five  of  article
     4  fifty-six  of  the  environmental conservation law provided that funding
     5  for such projects shall not exceed ten percent of the funding  appropri-
     6  ated  for  the  purposes  of  financing hazardous waste site remediation
     7  projects, pursuant to [title] titles  twelve  and  thirteen  of  article
     8  twenty-seven  of  the environmental conservation law in any state fiscal
     9  year pursuant to capital appropriations made to the department of  envi-
    10  ronmental  conservation,  the director of the division of budget and the
    11  corporation are each authorized  to  enter  into  one  or  more  service
    12  contracts,  none  of  which  shall exceed twenty years in duration, upon
    13  such terms and conditions as the director and the corporation may agree,
    14  so as to annually provide to the corporation in the aggregate, a sum not
    15  to exceed the annual debt service payments and related expenses required
    16  for any bonds and notes authorized pursuant to  section  twelve  hundred
    17  ninety of this title. Any service contract entered into pursuant to this
    18  section shall provide that the obligation of the state to fund or to pay
    19  the  amounts  therein  provided  for  shall not constitute a debt of the
    20  state within the meaning of any constitutional  or  statutory  provision
    21  and shall be deemed executory only to the extent of moneys available for
    22  such  purposes,  subject to annual appropriation by the legislature. Any
    23  such service contract or any payments made or to be made thereunder  may
    24  be assigned and pledged by the corporation as security for its bonds and
    25  notes,  as  authorized pursuant to section twelve hundred ninety of this
    26  title.
    27    2. The comptroller is hereby authorized to  receive  from  the  corpo-
    28  ration  any  portion of bond proceeds paid to provide funds for or reim-
    29  burse the state for its costs associated with any hazardous  waste  site
    30  remediation  and solid waste and drinking water response projects and to
    31  credit such amounts to the capital projects fund or any other  appropri-
    32  ate fund.
    33    3.  The  maximum amount of bonds that may be issued for the purpose of
    34  financing hazardous waste site remediation and solid waste and  drinking
    35  water  response  projects and environmental restoration projects author-
    36  ized by this section shall not exceed two billion  two  hundred  million
    37  dollars  and  shall not exceed one hundred million dollars for appropri-
    38  ations enacted for any state fiscal year, provided that  the  bonds  not
    39  issued for such appropriations may be issued pursuant to reappropriation
    40  in  subsequent  fiscal years. No bonds shall be issued for the repayment
    41  of any new appropriation enacted after March thirty-first, two  thousand
    42  twenty-six  for  hazardous waste site remediation projects authorized by
    43  this section. Amounts authorized to be issued by this section  shall  be
    44  exclusive  of  bonds  issued to fund any debt service reserve funds, pay
    45  costs of issuance of such bonds, and bonds or notes issued to refund  or
    46  otherwise  repay  bonds or notes previously issued. Such bonds and notes
    47  of the corporation shall not be a debt of the state, and the state shall
    48  not be liable thereon, nor shall they be payable out of any funds  other
    49  than  those  appropriated  by  this  state  to  the corporation for debt
    50  service and related expenses pursuant to any service contracts  executed
    51  pursuant  to  subdivision  one of this section, and such bonds and notes
    52  shall contain on the face thereof a statement to such effect.
    53    § 9. Subdivision 9 of  section  97-b  of  the  state  finance  law  is
    54  REPEALED.

        S. 2008--A                         141                        A. 3008--A
 
     1    §  10. Subdivision 4 of section 52-0303 of the environmental conserva-
     2  tion law, as added by chapter 512 of the laws of  1986,  is  amended  to
     3  read as follows:
     4    4. A provision that in the event that any federal payments and respon-
     5  sible  party  payments  become  available which were not included in the
     6  calculation of the state share  pursuant  to  subdivision  two  of  this
     7  section, the amount of the state share shall be recalculated accordingly
     8  and  the  municipality shall pay to the state for deposit in the [design
     9  and construction] hazardous waste cleanup account of the hazardous waste
    10  remedial fund established under  section  ninety-seven-b  of  the  state
    11  finance  law the amount by which the state payment actually made exceeds
    12  the recalculated state share.
    13    § 11. The opening paragraph, and paragraphs i and j of  subdivision  4
    14  of  section 27-1305 of the environmental conservation law, as amended by
    15  section 3 of part E of chapter 1 of the laws of  2003,  are  amended  to
    16  read as follows:
    17    On or before July first, nineteen hundred eighty-six and July first of
    18  each  succeeding  year,  the department shall prepare a status report on
    19  the implementation of the plan, and an update of the  policies,  program
    20  objectives,  methods  and strategies as outlined in the plan which guide
    21  the overall inactive hazardous waste site remediation program and  solid
    22  waste  site and drinking water response mitigation and cleanup programs.
    23  Such status report shall reflect information available to the department
    24  as of March thirty-first of each year, and shall include  an  accounting
    25  of  all  [monies]  moneys  expended or encumbered from the environmental
    26  quality bond act of nineteen hundred eighty-six or the  hazardous  waste
    27  remedial fund during the preceding fiscal year, such accounting to sepa-
    28  rately list:
    29    i.  [monies]  moneys  expended  or  encumbered  in  stand-by contracts
    30  entered into pursuant to section 3-0309 of this chapter and the purposes
    31  for which these stand-by contracts were entered into; [and]
    32    j.  moneys expended or encumbered pursuant to  title  twelve  of  this
    33  article; and
    34    k.  an  accounting  of  payments received and payments obligated to be
    35  received pursuant to this title and title twelve of this article, and  a
    36  report of the department's attempts to secure such obligations.
    37    §  12.  Subparagraph  (ii)  of paragraph b of subdivision 3 of section
    38  27-1313 of the environmental conservation law is REPEALED.
    39    § 13. Paragraph b of subdivision 1 and paragraphs b and f of  subdivi-
    40  sion  5  of section 27-1313 of the environmental conservation law, para-
    41  graph b of subdivision 1 as added by section 5 of part E of chapter 1 of
    42  the laws of 2003, paragraph b as amended by and paragraph f of  subdivi-
    43  sion  5  as  added by chapter 857 of the laws of 1982, are amended and a
    44  new subdivision 11 is added to read as follows:
    45    b. The department shall have the authority to require, and may  under-
    46  take  directly,  the  development and implementation of a department-ap-
    47  proved inactive hazardous  waste  disposal  site  remedial  program,  in
    48  accordance with section ninety-seven-b of the state finance law.
    49    b.  In the event that the commissioner has found that hazardous wastes
    50  at a site constitute a significant threat to the environment, but  after
    51  a  reasonable  attempt  to  determine  who  may be responsible is either
    52  unable to determine who may be responsible, [or] is unable to  locate  a
    53  person  who may be responsible, or is unable after making all reasonable
    54  effort to secure voluntary agreement to pay the costs of necessary reme-
    55  dial actions from owners or operators or other responsible persons,  the
    56  department  may  develop  and  implement  an  inactive  hazardous  waste

        S. 2008--A                         142                        A. 3008--A
 
     1  disposal site remedial program for such  site.  The  commissioner  shall
     2  make  every  effort,  in an action brought before a court of appropriate
     3  jurisdiction or in accordance with the requirements for notice,  hearing
     4  and review provided for in this title, to secure appropriate relief from
     5  any person subsequently identified or located who is responsible for the
     6  disposal of hazardous waste at such site, including, but not limited to,
     7  development  and  implementation of an inactive hazardous waste disposal
     8  site remedial program, payment of the cost of such a  program,  recovery
     9  of  any  reasonable  expenses  incurred  by the state, money damages and
    10  penalties.
    11    f. The commissioner shall make every  effort,  in  an  action  brought
    12  before  a  court  of  appropriate jurisdiction or in accordance with the
    13  requirements for notice, hearing and review provided for in  this  title
    14  to  secure  appropriate  relief  from the owner or operator of such site
    15  and/or any person responsible for the disposal of  hazardous  wastes  at
    16  such  site  pursuant to applicable principles of statutory or common law
    17  liability, including, but not limited to, development and implementation
    18  of an inactive hazardous waste disposal site remedial  program,  payment
    19  of  the  cost  of  such  program,  recovery  of  any reasonable expenses
    20  incurred by the state, money damages and penalties.
    21    11. A remedial decision by the state or the department or  a  response
    22  action  taken  by the department or ordered by the department under this
    23  section shall not constitute a final decision or order until the depart-
    24  ment files an action to enforce such decision or order or to  collect  a
    25  penalty for violation of such order or to recover its response costs.
    26    §  14. The section heading and subdivision 1 of section 27-1316 of the
    27  environmental conservation law, as added by section 8 of part E of chap-
    28  ter 1 of the laws of 2003, are amended to read as follows:
    29    [Citizen technical] Technical assistance grants.
    30    1. The commissioner is authorized to provide, or order a person acting
    31  under order or on consent, to provide grants  to  any  eligible  munici-
    32  pality  or not-for-profit corporation exempt from taxation under section
    33  501(c)(3) of the internal revenue code who may be affected by  an  inac-
    34  tive  hazardous  waste  disposal  site  remedial  program. To qualify to
    35  receive such assistance, a community group  must  demonstrate  that  its
    36  membership  represents  the  interests of the community affected by such
    37  site, and that members', or in the case of a municipality its residents,
    38  health, economic well-being or enjoyment of the environment  are  poten-
    39  tially affected by such site.  An eligible municipality shall be a coun-
    40  ty,  city,  town, village, or Indian tribe or nation residing within New
    41  York state, with a population of ten thousand or less, provided,  howev-
    42  er,  that  the  department may make a municipality eligible if it deter-
    43  mines that a municipality is a hardship community. A municipality  shall
    44  not  be  eligible  for  a  grant for any site which is owned or has been
    45  operated by such municipality. Such grants shall be known  as  technical
    46  assistance  grants  and  may  be  used to obtain technical assistance in
    47  interpreting information with regard to the nature of the  hazard  posed
    48  by  hazardous  waste  located at or emanating from an inactive hazardous
    49  waste disposal site or sites and the development and  implementation  of
    50  an  inactive hazardous waste disposal site remedial program or programs.
    51  Such grants may also be used:
    52    (a) to advise affected residents on any health assessment; and
    53    (b) for training funds for the education of interested affected commu-
    54  nity members or municipality to enable them to more effectively  partic-
    55  ipate in the remedy selection process.

        S. 2008--A                         143                        A. 3008--A
 
     1    Grants  awarded under this section may not be used for the purposes of
     2  collecting field sampling data, political activity or lobbying  legisla-
     3  tive bodies.
     4    §  15. Subdivision 1 of section 27-1321 of the environmental conserva-
     5  tion law, as amended by section 22 of part G of chapter 58 of  the  laws
     6  of 2012, is amended to read as follows:
     7    1.  Notwithstanding  any  other  provision of law to the contrary, any
     8  person who is, by professional training or  experience  and  attainment,
     9  qualified  to analyze and interpret matters pertaining to the treatment,
    10  storage, disposal, or transport  of  hazardous  materials  or  hazardous
    11  wastes,  and who voluntarily and without expectation of monetary compen-
    12  sation provides assistance or advice in mitigating  the  effects  of  an
    13  accidental or threatened discharge of any hazardous materials or hazard-
    14  ous  wastes,  or  in  preventing,  cleaning up, or disposing of any such
    15  discharge, shall not be subject to a penalty or to civil  liability  for
    16  damages  or  injuries  alleged  to  have been sustained by any person or
    17  entity by reason of an act or omission in the giving of such  assistance
    18  or advice. For the purposes of this section, the term "hazardous materi-
    19  als"  shall have the same meaning as that term is defined in regulations
    20  promulgated by the commissioner of transportation  pursuant  to  section
    21  fourteen-f  of  the  transportation law, and the term "hazardous wastes"
    22  shall mean those wastes identified or listed pursuant to subdivision one
    23  of section [27-0903] 27-1301 of this article and  any  rules  and  regu-
    24  lations promulgated thereunder.
    25    § 16. Subdivision 10 of section 71-2702 of the environmental conserva-
    26  tion  law,  as  added  by chapter 671 of the laws of 1986, is amended to
    27  read as follows:
    28    10. "Substance hazardous to public health, safety or the  environment"
    29  means any substance which:
    30    (a)  is  identified  or  listed  as  a  hazardous waste in regulations
    31  promulgated pursuant to section 27-0903 of this chapter and  all  amend-
    32  ments  thereto,  regardless  of  whether  at  the  time  of  release the
    33  substance was actually a waste; [or]
    34    (b) appears on the list in regulations promulgated pursuant  to  para-
    35  graph  (a) of subdivision one of section 37-0103 of this chapter and all
    36  amendments thereto[.];
    37    (c) is petroleum; or
    38    (d) poses a present  or  potential  hazard  to  the  environment  when
    39  improperly  treated,  stored,  transported,  disposed  of,  or otherwise
    40  managed.
    41    § 17. Paragraph a of subdivision 1 of section 71-2725 of the  environ-
    42  mental conservation law is REPEALED.
    43    § 18. Subdivision 4 of section 11-b of the soil and water conservation
    44  districts law, as amended by chapter 538 of the laws of 1996, is amended
    45  to read as follows:
    46    4.  Eligible  costs  that  may  be funded pursuant to this section are
    47  architectural  and  engineering  services,  plans  and   specifications,
    48  including  watershed  based  or  individual agricultural nonpoint source
    49  pollution assessments, consultant and legal services, conservation ease-
    50  ments and associated transaction costs specific to title thirty-three of
    51  article fifteen of the environmental conservation law and  other  direct
    52  expenses related to project implementation.
    53    §  19. If any clause, sentence, paragraph, section or part of this act
    54  shall be adjudged by any court of competent jurisdiction to be  invalid,
    55  such judgment shall not affect, impair or invalidate the remainder ther-
    56  eof,  but  shall  be  confined in its operation to the clause, sentence,

        S. 2008--A                         144                        A. 3008--A

     1  paragraph, section or part thereof directly involved in the  controversy
     2  in which such judgment shall have been rendered.
     3    § 20. This act shall take effect immediately.
 
     4                                   PART JJ
 
     5    Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state
     6  finance  law,  as amended by chapter 432 of the laws of 1997, is amended
     7  to read as follows:
     8    (a) All moneys heretofore and hereafter deposited in the environmental
     9  protection transfer account shall be transferred by the  comptroller  to
    10  the solid waste account, the parks, recreation and historic preservation
    11  account,  the  climate  change  mitigation and adaptation account or the
    12  open space account upon the request of the director of the budget.
    13    § 2. Subdivision 5 of section 27-1012 of the  environmental  conserva-
    14  tion law, as amended by section 6 of part F of chapter 58 of the laws of
    15  2013, is amended to read as follows:
    16    5.  All monies collected or received by the department of taxation and
    17  finance pursuant to this title shall be deposited to the credit  of  the
    18  comptroller  with such responsible banks, banking houses or trust compa-
    19  nies as may be designated by the comptroller.  Such  deposits  shall  be
    20  kept  separate  and apart from all other moneys in the possession of the
    21  comptroller. The comptroller shall require adequate  security  from  all
    22  such depositories. Of the total revenue collected, the comptroller shall
    23  retain the amount determined by the commissioner of taxation and finance
    24  to  be  necessary  for refunds out of which the comptroller must pay any
    25  refunds to which a deposit initiator may be  entitled.  After  reserving
    26  the  amount  to  pay  refunds, the comptroller must, by the tenth day of
    27  each month, pay into the state treasury to the  credit  of  the  general
    28  fund  the  revenue deposited under this subdivision during the preceding
    29  calendar month and remaining to the comptroller's credit on the last day
    30  of that preceding month; provided, however, that, beginning April first,
    31  two thousand [thirteen]  fourteen,  and  all  fiscal  years  thereafter,
    32  [fifteen]  twenty-three million dollars plus all funds received from the
    33  payments due each fiscal year  pursuant  to  subdivision  four  of  this
    34  section in excess of [the amount received from April first, two thousand
    35  twelve  through  March  thirty-first, two thousand thirteen] one hundred
    36  twenty-two million two hundred thousand dollars, shall be  deposited  to
    37  the  credit of the environmental protection fund established pursuant to
    38  section ninety-two-s of the state finance law.
    39    § 3. This act shall take effect immediately and  shall  be  deemed  to
    40  have been in full force and effect on and after April 1, 2016.
 
    41                                   PART KK
 
    42    Section 1. Approximately 40 percent of the food produced in the United
    43  States  today goes uneaten. Much of this organic waste is disposed of in
    44  solid waste landfills, where its  decomposition  accounts  for  over  15
    45  percent  of  our nation's emissions of methane, a potent greenhouse gas.
    46  Meanwhile, an estimated 2.8 million New Yorkers are  facing  hunger  and
    47  food insecurity.  This legislation is designed to address these multiple
    48  challenges  by:   encouraging the prevention of food waste generation by
    49  commercial generators and residents; directing the  recovery  of  excess
    50  edible  food  from  high-volume  commercial  food  waste generators; and
    51  ensuring that a significant portion of inedible food  waste  from  large

        S. 2008--A                         145                        A. 3008--A
 
     1  volume  food  waste  generators  is managed in a sustainable manner, and
     2  does not end up being sent to landfills or incinerators.
     3    §  2.  Article  27 of the environmental conservation law is amended by
     4  adding a new title 22 to read as follows:
     5                                  TITLE 22
     6                   FOOD DONATION AND FOOD SCRAPS RECYCLING
     7  Section 27-2201. Definitions.
     8          27-2203. Designated food scraps generator responsibilities.
     9          27-2205. Transporter responsibilities.
    10          27-2207. Transfer station  or  other  intermediary  responsibil-
    11                     ities.
    12          27-2209. Food scraps disposal prohibition.
    13          27-2211. Department responsibilities.
    14          27-2213. Regulations.
    15          27-2215. Exclusions.
    16          27-2217. Preemption and severability.
    17  § 27-2201. Definitions.
    18    1.  "Designated food scraps generator" means a person who generates at
    19  a single location an annual average of two tons  per  week  or  more  of
    20  excess  food  and  food scraps, including, but not limited to, supermar-
    21  kets, restaurants, higher educational institutions, hotels, food proces-
    22  sors, correctional facilities, sports or entertainment venues, hospitals
    23  and other health care facilities. For a location with multiple independ-
    24  ent food service businesses, such as a mall or college campus, the enti-
    25  ty responsible for contracting  for  solid  waste  hauling  services  is
    26  responsible  for managing excess food and food scraps from the independ-
    27  ent businesses.
    28    2. "Excess food" means edible food that is not sold  or  used  by  its
    29  generator.
    30    3.  "Food  scraps" means inedible food, trimmings from the preparation
    31  of food, food-soiled paper, and edible food that is  not  donated.  Food
    32  scraps shall not include food from residential sources or any food which
    33  is  subject  to  a  recall  or seizure due to the presence of pathogens,
    34  including but not limited to:  Listeria Monocytogenes,  confirmed  Clos-
    35  tridium  Botulinum,  E.  coli 0157:H7 and all salmonella in ready-to-eat
    36  foods.
    37    4. "Organics recycler" means a  facility  that  recycles  food  scraps
    38  through  use as animal feed or a feed ingredient, rendering, land appli-
    39  cation, composting, aerobic digestion, anaerobic digestion,  or  ethanol
    40  production.  Animal  scraps,  food  soiled paper, and post-consumer food
    41  scraps are prohibited for use as animal feed or as  a  feed  ingredient.
    42  The product created from food scraps by a composting or digestion facil-
    43  ity, or other treatment system, must be used in a beneficial manner as a
    44  soil  amendment and shall not be combusted or landfilled. The department
    45  may designate other techniques or technologies by  regulation,  provided
    46  they do not include combustion or landfilling.
    47    5. "Person" means any individual, business entity, partnership, compa-
    48  ny,  corporation,  not-for-profit corporation, association, governmental
    49  entity, public benefit corporation, public authority, firm, organization
    50  or any other group of individuals, or any officer or employee  or  agent
    51  thereof.
    52    6. "Single location" means contiguous property under common ownership,
    53  which may include one or more buildings.
    54  § 27-2203. Designated food scraps generator responsibilities.
    55    1. No later than January first, two thousand twenty-one:

        S. 2008--A                         146                        A. 3008--A
 
     1    (a)  all designated food scraps generators shall separate their excess
     2  food for donation for human consumption to the maximum extent  practica-
     3  ble,  and  in  accordance  with  applicable  laws, rules and regulations
     4  related to food donation; and
     5    (b)  except  as  provided  in  paragraph (c) of this subdivision, each
     6  designated food scraps generator that is within fifty miles of an organ-
     7  ics recycler, to the extent that the recycler has capacity to  accept  a
     8  substantial  portion  or  all  of  the  generator's excess food and food
     9  scraps as determined by the department on a yearly basis, shall:
    10    (i) separate its remaining excess food  and  food  scraps  from  other
    11  solid  waste  that cannot be effectively processed by the organics recy-
    12  cler that will be managing the materials. Whenever  practicable,  excess
    13  food  and  food  scraps should be removed from packaging at the point of
    14  generation or be sent to a facility that can remove the  packaging  from
    15  the product;
    16    (ii)  ensure proper storage for excess food and food scraps collection
    17  on site which shall preclude such materials  from  becoming  odorous  or
    18  attracting vectors;
    19    (iii)  post instructions and provide training for employees concerning
    20  the proper methods to separate and store excess food  and  food  scraps;
    21  and
    22    (iv)  obtain  a transporter that will deliver its excess food and food
    23  scraps to an organics recycler, either directly or through  an  interme-
    24  diary, self-haul its food scraps to an organics recycler, either direct-
    25  ly  or  through  an  intermediary,  or  provide  for  organics recycling
    26  on-site.
    27    (c) The provisions of paragraph (b)  of  this  subdivision  shall  not
    28  apply  to any designated food scraps generator that has all of its solid
    29  waste processed in a mixed solid waste composting or mixed  solid  waste
    30  anaerobic digestion facility.
    31    2. All designated food scraps generators shall submit an annual report
    32  to the department on or before March first, two thousand twenty-two, and
    33  annually  thereafter,  in  an  electronic format. The annual report must
    34  summarize the amount of excess food donated and  the  amount  of  excess
    35  food not donated, the amount of food scraps recycled, the organics recy-
    36  cler or recyclers and associated transporters used, and any other infor-
    37  mation as required by the department.
    38    3.  A designated food scraps generator may petition the department for
    39  a temporary waiver from some or all of the requirements of  this  title.
    40  The petition must include evidence of undue hardship based on the unique
    41  circumstances  of  the  generator.  A waiver shall be no longer than one
    42  year in duration.
    43  § 27-2205. Transporter responsibilities.
    44    1. Any transporter that collects source-separated excess food and food
    45  scraps for recycling from a designated food scraps generator shall:
    46    (a) deliver collected excess  food  and  food  scraps  to  a  transfer
    47  station  or  other  intermediary  that will deliver such excess food and
    48  food scraps to an organics recycler; or
    49    (b) deliver such food scraps directly to an organics recycler.
    50    2. Any transporter that collects source-separated excess food and food
    51  scraps from a designated food scraps generator shall not  deliver  those
    52  excess  food  and food scraps to a combustion facility or a landfill nor
    53  commingle the material with any other solid waste unless such waste  can
    54  be processed by an organics recycler.
    55  § 27-2207. Transfer station or other intermediary responsibilities.

        S. 2008--A                         147                        A. 3008--A
 
     1    Any  transfer station or other intermediary that receives source-sepa-
     2  rated excess food and food scraps from a designated food scraps  genera-
     3  tor  must ensure that the food scraps are taken to an organics recycler.
     4  No transfer station or other intermediary  may  commingle  the  material
     5  with  any  other  solid  waste  unless such waste can be processed by an
     6  organics recycler.
     7  § 27-2209. Food scraps disposal prohibition.
     8    Solid waste combustion  facilities  and  landfills  shall  not  accept
     9  source-separated excess food and food scraps from designated food scraps
    10  generators  required  to  send  their  excess  food not donated and food
    11  scraps to an organics recycler as outlined under section 27-2203 of this
    12  title, either directly or from an intermediary, after January first, two
    13  thousand twenty-one, unless the designated  food  scraps  generator  has
    14  received  a  temporary waiver under subdivision three of section 27-2203
    15  of this title.
    16  § 27-2211. Department responsibilities.
    17    1. The department  shall,  in  consultation  with  industry  represen-
    18  tatives, publish on its website: (a) the methodology the department will
    19  use  to  determine  who  is a designated food scrap generator; and (b) a
    20  list of all designated food scraps generators, organics  recyclers,  and
    21  all transporters that manage source-separated organics.
    22    2.  No  later  than October first, two thousand twenty, the department
    23  shall assess the capacity of organic  recyclers  and  notify  designated
    24  food  scraps  generators  if  they  are  required  to  comply  with  the
    25  provisions of paragraph (b) of subdivision one  of  section  27-2203  of
    26  this title.
    27    3. The department shall develop and make available educational materi-
    28  als  to  assist  designated  food scraps generators with compliance with
    29  this title. The department shall also  develop  education  materials  on
    30  food  waste  minimization  and  encourage  municipalities to disseminate
    31  these materials both on their municipal websites and in any such  future
    32  mailings to their residents as they may distribute.
    33  § 27-2213. Regulations.
    34    The  department  may  promulgate  rules  and  regulations necessary to
    35  implement the provisions of this title. At  a  minimum,  the  department
    36  shall  promulgate  rules  and  regulations that set forth how designated
    37  food scraps generators shall comply with the provisions of paragraph (a)
    38  and subparagraph (i) of paragraph (b)  of  subdivision  one  of  section
    39  27-2203 of this title.
    40  § 27-2215. Exclusions.
    41    1. This title shall not apply to any designated food scraps generators
    42  located  in  a city with a population of one million or more which has a
    43  local law, ordinance or regulation in place which requires the diversion
    44  of excess food and food scraps from disposal.
    45    2. This title does not apply to elementary and secondary schools.
    46  § 27-2217. Preemption and severability.
    47    1. Any provision of any local law  or  ordinance,  or  any  regulation
    48  promulgated  thereto,  governing the recycling of food scraps shall upon
    49  the effective date of this title be preempted, except in a city  with  a
    50  population  of  one million of more.  However, local laws or ordinances,
    51  or parts thereof, affecting the recycling of food  scraps  that  include
    52  generators not covered by this title shall not be preempted.
    53    2.  The provisions of this title shall be severable and if any portion
    54  thereof or the applicability thereof to any person or  circumstances  is
    55  held  invalid,  the  remainder of this title and the application thereof
    56  shall not be affected thereby.

        S. 2008--A                         148                        A. 3008--A
 
     1    § 3. This act shall take effect immediately.
 
     2                                   PART LL
 
     3    Section  1.  The  public  authorities  law  is amended by adding a new
     4  section 1005-d to read as follows:
     5    § 1005-d. Sharing employees, services  and  resources;  indemnity  and
     6  defense.    1. For the purposes of this section, the following words and
     7  terms shall have the following meanings  unless  the  context  indicates
     8  another meaning or intent:
     9    (a) "Department" means the department of transportation.
    10    (b) "Services and assistance" includes but is not limited to engineer-
    11  ing  services;  environmental  sampling and testing; facility, property,
    12  infrastructure and equipment maintenance; and  equipment  and  materials
    13  storage.
    14    2.  One or more shared services agreements may be executed between the
    15  department and the authority, canal corporation, or both of  them,  only
    16  for  (a) an emergency situation, (b) extreme weather conditions, and (c)
    17  the provision of services and assistance to support  the  operation  and
    18  maintenance  of  the  canal system and related infrastructure, as deemed
    19  appropriate, including but  limited  to  share  employees,  services  or
    20  resources  as  deemed appropriate including, but not limited to, for the
    21  performance of work and activities by the department on  the  facilities
    22  and  property  under  the  jurisdiction of the authority or canal corpo-
    23  ration, and for the performance of work and activities by the  authority
    24  or  canal corporation on the facilities and property under the jurisdic-
    25  tion of the department. Such agreement or any project undertaken  pursu-
    26  ant  to  such  an  agreement shall not be deemed to impair the rights of
    27  bondholders and may provide for, but not be limited to, the  management,
    28  supervision  and  direction  of  such  employees'  performance  of  such
    29  services. All shared employees shall remain employees of  their  respec-
    30  tive  employers  and  all  applicable  collectively bargained agreements
    31  shall remain in effect for the entire  length  of  the  shared  services
    32  agreement.  Further,  such  shared  services  agreement shall not amend,
    33  repeal or replace the terms of any agreement that is collectively  nego-
    34  tiated  between  an  employer and an employee organization, including an
    35  agreement or interest arbitration award made pursuant to  article  four-
    36  teen of the civil service law.
    37    3. The authority shall defend any unit, entity, officer or employee of
    38  the  department,  using  the forces of the department of law pursuant to
    39  subdivision eleven of this section in  any  action,  proceeding,  claim,
    40  demand  or  the  prosecution of any appeal arising from or occasioned by
    41  the acts or omissions to act in the performance of the functions of  the
    42  authority or canal corporation pursuant to a shared services agreement.
    43    4.  Defense  pursuant  to  subdivision  three of this section shall be
    44  conditioned upon the full cooperation of the department.
    45    5. The authority shall indemnify and hold harmless any  unit,  entity,
    46  officer  or  employee  of  the  department in the amount of any judgment
    47  obtained against the department or in the amount of any  settlement  the
    48  department enters into with the consent of the authority for any and all
    49  claims, damages or liabilities arising from or occasioned by the acts or
    50  omissions  to  act  of  the authority or canal corporation pursuant to a
    51  shared services agreement; provided, however, that the act  or  omission
    52  from which such judgment or settlement arose occurred while the authori-
    53  ty  or  canal  corporation  was acting within the scope of its functions
    54  pursuant to a shared services agreement. No such settlement of any  such

        S. 2008--A                         149                        A. 3008--A
 
     1  action,  proceeding,  claim or demand shall be made without the approval
     2  of the authority's board of trustees or its designee.
     3    6. Any claim or proceeding commenced against any unit, entity, officer
     4  or  employee  of the authority or canal corporation that arises pursuant
     5  to any shared services agreement shall not be construed in  any  way  to
     6  impair,  alter,  limit, modify, abrogate or restrict any immunity avail-
     7  able to or conferred upon any unit, entity, officer or employee  of  the
     8  authority  or  canal  corporation,  or  to impair, alter, limit, modify,
     9  abrogate or restrict any right to defense and  indemnification  provided
    10  for  any  governmental officer or employee by, in accordance with, or by
    11  reason of, any other provision of state or federal statutory  or  common
    12  law.
    13    7. (a) The state shall defend any unit, entity, officer or employee of
    14  the  authority  and canal corporation using the forces of the department
    15  of law in any action, proceeding, claim, demand or  the  prosecution  of
    16  any appeal arising from or occasioned by the acts or omissions to act in
    17  the  performance of the functions of the department pursuant to a shared
    18  services agreement.
    19    (b) Defense pursuant to paragraph (a) of  this  subdivision  shall  be
    20  conditioned  upon the full cooperation of the authority and canal corpo-
    21  ration.
    22    (c) The state shall indemnify and  hold  harmless  any  unit,  entity,
    23  officer  or employee of the authority or canal corporation in the amount
    24  of any judgment obtained against the authority or canal  corporation  in
    25  the  amount  of any settlement the authority or canal corporation enters
    26  into with the consent of the state for any and all  claims,  damages  or
    27  liabilities  arising  from or occasioned by the acts or omissions to act
    28  on behalf of the department pursuant to  a  shared  services  agreement,
    29  provided,  however, that the act or omission from which such judgment or
    30  settlement arose occurred while the department  was  acting  within  the
    31  scope of its functions pursuant to a shared services agreement. Any such
    32  settlement  shall  be executed pursuant to section twenty-a of the court
    33  of claims act.
    34    (d) Any claim or proceeding commenced against any unit, entity,  offi-
    35  cer or employee of the department pursuant to any shared services agree-
    36  ment  shall not be construed in any way to impair, alter, limit, modify,
    37  abrogate or restrict any immunity available to  or  conferred  upon  any
    38  unit,  entity,  officer  or  employee  of  the department, or to impair,
    39  alter, limit, modify, abrogate or restrict  any  right  to  defense  and
    40  indemnification provided for any governmental officer or employee by, in
    41  accordance with, or by reason of, any other provision of state or feder-
    42  al statutory or common law.
    43    (e)  Any  payment made pursuant to this subdivision or any monies paid
    44  for a claim against or settlement  with  the  department,  authority  or
    45  canal  corporation pursuant to this subdivision and pursuant to a shared
    46  services agreement shall be paid from appropriations for payment by  the
    47  state pursuant to the court of claims act.
    48    8.  This  section  shall  not  in any way affect the obligation of any
    49  claimant to give notice to the state, authority,  or  canal  corporation
    50  under  section  ten and section eleven of the court of claims act or any
    51  other provision of law provided, however, that notice  served  upon  the
    52  state,  authority,  or  canal  corporation  who is a party to the shared
    53  services agreement shall be valid notice on all parties  to  the  agree-
    54  ment,  when such claim arises out of such shared services agreement. The
    55  state, authority and canal corporation shall notify each other when they

        S. 2008--A                         150                        A. 3008--A

     1  receive a notice of claim, notice of intention to  make  a  claim  or  a
     2  claim arising out of such agreement.
     3    9.  The  provisions  of this section shall not be construed to impair,
     4  alter, limit or modify the rights and obligations of any  insurer  under
     5  any insurance agreement.
     6    10. Notwithstanding any other provision of law, when employed pursuant
     7  to a shared services agreement, employees of the authority, canal corpo-
     8  ration and department shall be deemed employees of all such entities and
     9  the state for purposes of the workers' compensation law.
    10    11. At the request of the authority or canal corporation, services and
    11  assistance  and  legal  services  for the authority or canal corporation
    12  shall be performed by forces or  officers  of  the  department  and  the
    13  department  of  law  respectively, and all other state officers, depart-
    14  ments, boards, divisions and commissions shall  render  services  within
    15  their respective functions.
    16    § 2. Subdivision 1 of section 17 of the public officers law is amended
    17  by adding a new paragraph (z) to read as follows:
    18    (z)  For  purposes  of this section, the term "employee" shall include
    19  members of the governing boards, officers and  employees  of  the  power
    20  authority of the state of New York or its subsidiaries.
    21    § 3. This act, being necessary for the prosperity of the state and its
    22  inhabitants,  shall  be  liberally  construed to effect the purposes and
    23  secure the beneficial intents hereof.
    24    § 4. If any provision of any section of this act  or  the  application
    25  thereof  to  any  person  or circumstance shall be adjudged invalid by a
    26  court of  competent  jurisdiction,  such  order  or  judgment  shall  be
    27  confined  in  its operation to the controversy in which it was rendered,
    28  and shall not affect or invalidate the remainder of any provision of any
    29  section of this act or the application thereof to any  other  person  or
    30  circumstance  and to this end the provisions of each section of this act
    31  are hereby declared to be severable.
    32    § 5. This act shall take effect immediately.
 
    33                                   PART MM
 
    34    Section 1. Expenditures  of  moneys  by  the  New  York  state  energy
    35  research  and  development  authority  for  services and expenses of the
    36  energy  research,  development  and  demonstration  program,   including
    37  grants, the energy policy and planning program, the zero emissions vehi-
    38  cle  and  electric vehicle rebate program, and the Fuel NY program shall
    39  be subject to  the  provisions  of  this  section.  Notwithstanding  the
    40  provisions of subdivision 4-a of section 18-a of the public service law,
    41  all  moneys committed or expended in an amount not to exceed $19,700,000
    42  shall be reimbursed by assessment against gas corporations,  as  defined
    43  in  subdivision  11  of section 2 of the public service law and electric
    44  corporations as defined in subdivision 13 of section  2  of  the  public
    45  service  law, where such gas corporations and electric corporations have
    46  gross revenues from intrastate utility operations in excess of  $500,000
    47  in  the  preceding  calendar  year,  and  the  total amount which may be
    48  charged to any gas corporation and any electric  corporation  shall  not
    49  exceed  one  cent  per one thousand cubic feet of gas sold and .010 cent
    50  per kilowatt-hour of electricity sold  by  such  corporations  in  their
    51  intrastate  utility operations in calendar year 2015. Such amounts shall
    52  be excluded from the general assessment provisions of subdivision  2  of
    53  section  18-a of the public service law. The chair of the public service
    54  commission shall bill such gas and/or  electric  corporations  for  such

        S. 2008--A                         151                        A. 3008--A
 
     1  amounts  on  or before August 10, 2017 and such amounts shall be paid to
     2  the New York state energy  research  and  development  authority  on  or
     3  before  September  10,  2017.  Upon  receipt,  the New York state energy
     4  research and development authority shall deposit such funds in the ener-
     5  gy  research  and  development  operating  fund  established pursuant to
     6  section 1859 of the public authorities law. The New  York  state  energy
     7  research  and  development  authority is authorized and directed to: (1)
     8  transfer $1 million to the state general fund for services and  expenses
     9  of  the  department of environmental conservation, $150,000 to the state
    10  general fund for services and expenses of the department of  agriculture
    11  and  markets, and $750,000 to the University of Rochester laboratory for
    12  laser energetics from the funds received; and (2)  commencing  in  2016,
    13  provide  to  the chair of the public service commission and the director
    14  of the budget and the chairs and secretaries of the  legislative  fiscal
    15  committees,  on or before August first of each year, an itemized record,
    16  certified by the president and chief executive officer of the authority,
    17  or his or her designee, detailing any and all expenditures  and  commit-
    18  ments  ascribable  to  moneys received as a result of this assessment by
    19  the chair of the department of public service pursuant to  section  18-a
    20  of  the public service law.  This itemized record shall include an item-
    21  ized breakdown of the programs being funded  by  this  section  and  the
    22  amount  committed  to each program.   The authority shall not commit for
    23  any expenditure, any moneys derived from the assessment provided for  in
    24  this  section,  until  the chair of such authority shall have submitted,
    25  and the director of the budget  shall  have  approved,  a  comprehensive
    26  financial  plan encompassing all moneys available to and all anticipated
    27  commitments and expenditures by such authority from any source  for  the
    28  operations  of  such  authority.    Copies of the approved comprehensive
    29  financial plan shall be immediately submitted by the chair to the chairs
    30  and secretaries of the legislative fiscal committees.   Any such  amount
    31  not  committed by such authority to contracts or contracts to be awarded
    32  or otherwise expended by the authority during the fiscal year  shall  be
    33  refunded  by such authority on a pro-rata basis to such gas and/or elec-
    34  tric corporations, in a manner to be determined  by  the  department  of
    35  public service.
    36    §  2.  This  act  shall take effect immediately and shall be deemed to
    37  have been in full force and effect on and after April 1, 2017.
    38    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    39  sion, section or part of this act shall be  adjudged  by  any  court  of
    40  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    41  impair, or invalidate the remainder thereof, but shall  be  confined  in
    42  its  operation  to the clause, sentence, paragraph, subdivision, section
    43  or part thereof directly involved in the controversy in which such judg-
    44  ment shall have been rendered. It is hereby declared to be the intent of
    45  the legislature that this act would  have  been  enacted  even  if  such
    46  invalid provisions had not been included herein.
    47    §  3.  This  act shall take effect immediately provided, however, that
    48  the applicable effective date of Parts A through MM of this act shall be
    49  as specifically set forth in the last section of such Parts.
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