S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2608 A. 3008 S E N A T E - A S S E M B L Y January 22, 2013 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to authorize funding for the Consolidated Local Street and High- way Improvement Program (CHIPS) and Marchiselli program for state fiscal year 2013-2014 (Part A); to amend the tax law, in relation to the statewide transmission tax (Part B); to amend the vehicle and traffic law, in relation to imposing drivers license sanctions (Part C); to amend the vehicle and traffic law, in relation to the hours of operation of the department of motor vehicles (Part D); to amend the public authorities law, in relation to enforcement assistance; and to repeal section 357-a of such law relating to payment by the New York state thruway authority for services provided by the division of state police (Part E); to amend the environmental conservation law and the state finance law, in relation to establishing the "Cleaner, Greener NY Act of 2013"; and repealing section 27-1017 of the environmental conservation law relating thereto (Part F); to amend the environmental conservation law, in relation to waste tire management and recycling fees (Part G); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effectiveness thereof (Part H); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to extend- ing certain authority of the dormitory authority of the state of New York (Part I); to amend the New York state urban development corpo- ration act, in relation to the powers of the New York state urban development corporation to make grants (Part J); to authorize and direct the New York state energy research and development authority to make a payment to the general fund of up to $913,000 (Part K); to authorize the New York state energy research and development authority to finance a portion of its research, development and demonstration EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-01-3 S. 2608 2 A. 3008 and policy and planning programs from assessments on gas and electric corporations (Part L); to authorize the department of health to finance certain activities with revenues generated from an assessment on cable television companies (Part M); to amend the public service law, in relation to extending the temporary state energy and utility conservation assessment; and to amend section 6 of part NN of chapter 59 of the laws of 2009 amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, increasing the utility assessment cap and the minimum threshold for collection thereunder, and establishing a temporary state energy and utility service conser- vation assessment and providing for the collection thereof, in relation to extending the effectiveness thereof (Part N); to amend the public service law, in relation to strengthening the oversight and enforcement mechanisms of the Public Service Commission; to amend the general business law, in relation to expanding the definition of underground facilities and increasing fines for violations relating to the protection of underground facilities; and to repeal certain provisions of the public service law relating thereto (Part O); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corpo- rations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part P); and to amend the banking law, the cooperative corporations law, the general business law, and the not-for-profit corporation law, in relation to facilitating an online corporate filing system by removing the type classification system for not-for-profit corporations; to repeal certain provisions of the not-for-profit corporation law and the reli- gious corporations law, relating thereto (Subpart A); to amend the business corporation law, the education law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the public health law and the transportation corporations law, in relation to facilitating online filing by authorizing self-certification by filers with regard to required consents; to repeal certain provisions of the business corporation law and the not-for-profit corporation law, relating thereto (Subpart B); to amend the business corporation law, the limited liability company law, the not-for-profit corporation law and the partnership law, in relation to authorizing electronic attend- ance at meetings (Subpart C); to amend the business corporation law, the limited liability company law and the not-for-profit corporation law, in relation to who may act as an incorporator (Subpart D); to amend the general associations law, in relation to serving process upon the secretary of state as agent (Subpart E); to amend the tax law, in relation to reducing the taxes on shares (Subpart F) (Part Q) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2013-2014 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through Q. The effective date for each particular S. 2608 3 A. 3008 1 provision contained within such Part is set forth in the last section of 2 such Part. Any provision in any section contained within a Part, includ- 3 ing the effective date of the Part, which makes a reference to a section 4 "of this act", when used in connection with that particular component, 5 shall be deemed to mean and refer to the corresponding section of the 6 Part in which it is found. Section three of this act sets forth the 7 general effective date of this act. 8 PART A 9 Section 1. The sum of four hundred two million seven hundred ninety- 10 seven thousand dollars ($402,797,000), or so much thereof as shall be 11 necessary, and in addition to amounts previously appropriated by law, is 12 hereby made available, in accordance with subdivision 1 of section 380 13 of the public authorities law as amended, according to the following 14 schedule. Payments pursuant to subdivision (a) of this section shall be 15 made available as moneys become available for such payments. Payments 16 pursuant to subdivisions (b) and (c) of this section shall be made 17 available on the fifteenth day of June, September, December and March or 18 as soon thereafter as moneys become available for such payments. No 19 moneys of the state in the state treasury or any of its funds shall be 20 available for payments pursuant to this section: 21 SCHEDULE 22 (a) Thirty-nine million seven hundred thousand dollars ($39,700,000) 23 to municipalities for repayment of eligible costs of federal aid munici- 24 pal street and highway projects pursuant to section 15 of chapter 329 of 25 the laws of 1991, as added by section 9 of chapter 330 of the laws of 26 1991, as amended. The department of transportation shall provide such 27 information to the municipalities as may be necessary to maintain the 28 federal tax exempt status of any bonds, notes, or other obligations 29 issued by such municipalities to provide for the non-federal share of 30 the cost of projects pursuant to chapter 330 of the laws of 1991 or 31 section 80-b of the highway law. 32 The program authorized pursuant to section 15 of chapter 329 of the 33 laws of 1991, as added by section 9 of chapter 330 of the laws of 1991, 34 as amended, shall additionally make payments for reimbursement according 35 to the following schedule: 36 State Fiscal Year Amount 37 2013-14 $39,700,000 38 (b) Three hundred four million three hundred thousand dollars 39 ($304,300,000) to counties, cities, towns and villages for reimbursement 40 of eligible costs of local highway and bridge projects pursuant to 41 sections 16 and 16-a of chapter 329 of the laws of 1991, as added by 42 section 9 of chapter 330 of the laws of 1991, as amended. For the 43 purposes of computing allocations to municipalities, the amount distrib- 44 uted pursuant to section 16 of chapter 329 of the laws of 1991 shall be 45 deemed to be $121,520,000. The amount distributed pursuant to section 46 16-a of chapter 329 of the laws of 1991 shall be deemed to be 47 $182,780,000. Notwithstanding the provisions of any general or special 48 law, the amounts deemed distributed in accordance with section 16 of 49 chapter 329 of the laws of 1991 shall be adjusted so that such amounts 50 will not be less than 83.807 percent of the "funding level" as defined 51 in subdivision 5 of section 10-c of the highway law for each such muni- 52 cipality. In order to achieve the objectives of section 16 of chapter 53 329 of the laws of 1991, to the extent necessary, the amounts in excess 54 of 83.807 percent of the funding level to be deemed distributed to each S. 2608 4 A. 3008 1 municipality under this subdivision shall be reduced in equal propor- 2 tion. 3 (c) Fifty-eight million seven hundred ninety-seven thousand dollars 4 ($58,797,000) to municipalities for reimbursement of eligible costs of 5 local highway and bridge projects pursuant to sections 16 and 16-a of 6 chapter 329 of the laws of 1991, as added by section 9 of chapter 330 of 7 the laws of 1991, as amended. For the purposes of computing allocations 8 to municipalities, the amount distributed pursuant to section 16 of 9 chapter 329 of the laws of 1991 shall be deemed to be $23,480,000. The 10 amount distributed pursuant to section 16-a of chapter 329 of the laws 11 of 1991 shall be deemed to be $35,317,000. Notwithstanding the 12 provisions of any general or special law, the amounts deemed distributed 13 in accordance with section 16 of chapter 329 of the laws of 1991 shall 14 be adjusted so that such amounts will not be less than 16.193 percent of 15 the "funding level" as defined in subdivision 5 of section 10-c of the 16 highway law for each such municipality. In order to achieve the objec- 17 tives of section 16 of chapter 329 of the laws of 1991, to the extent 18 necessary, the amounts in excess of 16.193 percent of the funding level 19 to be deemed distributed to each municipality under this subdivision 20 shall be reduced in equal proportion. To the extent that the total of 21 remaining payment allocations calculated herein varies from $58,797,000, 22 the payment amounts to each locality shall be adjusted by a uniform 23 percentage so that the total payments equal $58,797,000. 24 The program authorized pursuant to sections 16 and 16-a of chapter 329 25 of the laws of 1991, as added by section 9 of chapter 330 of the laws of 26 1991, as amended, shall additionally make payments for reimbursement 27 according to the following schedule: 28 State Fiscal Year Amount 29 2013-14 $363,097,000 30 S 2. This act shall take effect immediately. 31 PART B 32 Section 1. Subdivision 3 of section 205 of the tax law, as added by 33 section 8 of part U1 of chapter 62 of the laws of 2003, is amended to 34 read as follows: 35 3. [From the] THE moneys collected from the taxes imposed by sections 36 one hundred eighty-three and one hundred eighty-four of this article on 37 and after April first, two thousand [four] THIRTEEN, after reserving 38 amounts for refunds or reimbursements, SHALL BE DISTRIBUTED AS FOLLOWS: 39 twenty percent of such moneys shall be deposited to the credit of the 40 dedicated highway and bridge trust fund established by section eighty- 41 nine-b of the state finance law[. The remainder], FIFTY-FOUR PERCENT OF 42 SUCH MONEYS shall be deposited in the mass transportation operating 43 assistance fund to the credit of the metropolitan mass transportation 44 operating assistance account created pursuant to section eighty-eight-a 45 of the state finance law AND TWENTY-SIX PERCENT OF SUCH MONEYS SHALL BE 46 DEPOSITED IN THE MASS TRANSPORTATION OPERATING ASSISTANCE FUND TO THE 47 CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT 48 CREATED PURSUANT TO SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. 49 S 2. This act shall take effect on the same date and in the same 50 manner as the expiration and repeal of subdivision 3 of section 205 of 51 the tax law per section 2 of part P of chapter 59 of the laws of 2012, 52 as amended; provided, however, that the amendments to subdivision 3 of 53 section 205 of the tax law made by section one of this act shall not S. 2608 5 A. 3008 1 affect the repeal of such subdivision and shall be deemed repealed ther- 2 ewith. 3 PART C 4 Section 1. Paragraph (a) of subdivision 4 of section 510-a of the 5 vehicle and traffic law, as amended by section 14 of part E of chapter 6 60 of the laws of 2005, is amended to read as follows: 7 (a) A serious traffic violation shall mean operating a commercial 8 motor vehicle IN VIOLATION OF A STATE OR LOCAL LAW OR ORDINANCE 9 RESTRICTING OR PROHIBITING THE USE OF A HAND-HELD MOBILE TELEPHONE OR A 10 PORTABLE ELECTRONIC DEVICE WHILE DRIVING OR in violation of any 11 provision of this chapter or the laws of any other state, the District 12 of Columbia or any Canadian province which (i) limits the speed of motor 13 vehicles, provided the violation involved fifteen or more miles per hour 14 over the established speed limit; (ii) is defined as reckless driving by 15 state or local law or regulation; (iii) prohibits improper or erratic 16 lane change; (iv) prohibits following too closely; (v) relates to motor 17 vehicle traffic (other than parking, standing or stopping) and which 18 arises in connection with a fatal accident; (vi) operating a commercial 19 motor vehicle without first obtaining a commercial driver's license as 20 required by section five hundred one of this title; (vii) operating a 21 commercial motor vehicle without a commercial driver's license in the 22 driver's possession; or (viii) operating a commercial motor vehicle 23 without the proper class of commercial driver's license and/or endorse- 24 ment for the specific vehicle being operated or for the passengers or 25 type of cargo being transported. 26 S 2. Paragraphs (c) and (e) of subdivision 1 of section 1225-c of the 27 vehicle and traffic law, as added by chapter 69 of the laws of 2001, are 28 amended to read as follows: 29 (c) "Using" shall mean holding a mobile telephone to, or in the imme- 30 diate proximity of, the user's ear, DIALING OR ANSWERING A MOBILE TELE- 31 PHONE BY PRESSING MORE THAN A SINGLE BUTTON, OR REACHING FOR A MOBILE 32 TELEPHONE IN A MANNER THAT REQUIRES A DRIVER TO MANEUVER SO THAT SUCH 33 DRIVER IS NO LONGER IN A SEATED POSITION, RESTRAINED BY A SEAT BELT THAT 34 IS INSTALLED IN ACCORDANCE WITH 49 CFR 393.93 AND ADJUSTED IN ACCORDANCE 35 WITH THE VEHICLE MANUFACTURER'S INSTRUCTIONS. 36 (e) "Hands-free mobile telephone" shall mean a mobile telephone that 37 has an internal feature or function, or that is equipped with an attach- 38 ment or addition, whether or not permanently part of such mobile tele- 39 phone, by which a user engages in a call without the use of either hand, 40 whether or not the use of either hand is necessary to activate, deacti- 41 vate or initiate a function of such telephone, PROVIDED, HOWEVER, THAT A 42 TELEPHONE THAT REQUIRES DIALING OR ANSWERING SUCH TELEPHONE BY PRESSING 43 MORE THAN A SINGLE BUTTON SHALL NOT CONSTITUTE A HANDS-FREE MOBILE TELE- 44 PHONE. 45 S 3. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of the 46 vehicle and traffic law, as added by chapter 69 of the laws of 2001, are 47 amended and a new paragraph (d) is added to read as follows: 48 (a) Except as otherwise provided in this section, no person shall 49 operate a motor vehicle upon a public highway while using a mobile tele- 50 phone to engage in a call while such vehicle is in motion, PROVIDED, 51 HOWEVER, NO PERSON SHALL OPERATE A COMMERCIAL MOTOR VEHICLE, AS DEFINED 52 IN SUBDIVISION FOUR-A OF SECTION TWO OF THE TRANSPORTATION LAW, WHILE 53 USING A MOBILE TELEPHONE ON A PUBLIC HIGHWAY, INCLUDING WHILE TEMPORAR- 54 ILY STATIONARY BECAUSE OF TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER S. 2608 6 A. 3008 1 MOMENTARY DELAYS. THE OPERATOR OF A COMMERCIAL MOTOR VEHICLE MAY USE A 2 MOBILE TELEPHONE WHEN SUCH OPERATOR HAS MOVED THE VEHICLE TO THE SIDE 3 OF, OR OFF, A HIGHWAY AND HAS HALTED IN A LOCATION WHERE THE VEHICLE CAN 4 REMAIN STATIONARY UNLESS STOPPING IS PROHIBITED BY LAW, RULES AND REGU- 5 LATIONS OR BY A DIRECTIVE OF LAW ENFORCEMENT. 6 (b) An operator of [a] ANY motor vehicle who holds a mobile telephone 7 to, or in the immediate proximity of his or her ear while such vehicle 8 is in motion is presumed to be engaging in a call within the meaning of 9 this section, PROVIDED, HOWEVER, THAT AN OPERATOR OF A COMMERCIAL MOTOR 10 VEHICLE WHO HOLDS A MOBILE TELEPHONE TO, OR IN THE IMMEDIATE PROXIMITY 11 OF HIS OR HER EAR WHILE SUCH VEHICLE IS TEMPORARILY STATIONARY BECAUSE 12 OF TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER MOMENTARY DELAYS IS ALSO 13 PRESUMED TO BE ENGAGING IN A CALL WITHIN THE MEANING OF THIS SECTION. 14 The presumption established by this subdivision is rebuttable by 15 evidence tending to show that the operator was not engaged in a call. 16 (D) NO MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION 17 TWO OF THE TRANSPORTATION LAW, SHALL ALLOW OR REQUIRE ITS DRIVERS TO USE 18 A HAND-HELD MOBILE TELEPHONE WHILE DRIVING A COMMERCIAL MOTOR VEHICLE. 19 S 4. Subdivision 1 of section 1225-d of the vehicle and traffic law, 20 as added by chapter 403 of the laws of 2009, is amended to read as 21 follows: 22 1. Except as otherwise provided in this section, no person shall oper- 23 ate a motor vehicle while using any portable electronic device while 24 such vehicle is in motion, PROVIDED, HOWEVER, NO PERSON SHALL OPERATE A 25 COMMERCIAL MOTOR VEHICLE, AS DEFINED IN SUBDIVISION FOUR-A OF SECTION 26 TWO OF THE TRANSPORTATION LAW, WHILE USING A PORTABLE ELECTRONIC DEVICE 27 ON A PUBLIC HIGHWAY, INCLUDING WHILE TEMPORARILY STATIONARY BECAUSE OF 28 TRAFFIC, A TRAFFIC CONTROL DEVICE, OR OTHER MOMENTARY DELAYS. THE OPERA- 29 TOR OF A COMMERCIAL MOTOR VEHICLE MAY USE A PORTABLE ELECTRONIC DEVICE 30 WHEN SUCH OPERATOR HAS MOVED THE VEHICLE TO THE SIDE OF, OR OFF, A HIGH- 31 WAY AND HAS HALTED IN A LOCATION WHERE THE VEHICLE CAN REMAIN STATIONARY 32 UNLESS STOPPING IS PROHIBITED BY LAW, RULES, AND REGULATIONS OR BY A 33 DIRECTIVE OF LAW ENFORCEMENT. 34 S 5. Section 1225-d of the vehicle and traffic law is amended by 35 adding a new subdivision 1-a to read as follows: 36 1-A. NO MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION 37 TWO OF THE TRANSPORTATION LAW, SHALL ALLOW OR REQUIRE ITS DRIVERS TO USE 38 A PORTABLE ELECTRONIC DEVICE WHILE DRIVING A COMMERCIAL MOTOR VEHICLE. 39 S 6. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the 40 vehicle and traffic law, as added by chapter 403 of the laws of 2009, 41 are amended to read as follows: 42 (a) "Portable electronic device" shall mean any hand-held mobile tele- 43 phone, as defined by subdivision one of section twelve hundred twenty- 44 five-c of this article, personal digital assistant (PDA), handheld 45 device with mobile data access, laptop computer, pager, broadband 46 personal communication device, two-way messaging device, electronic 47 game, or portable computing device OR ANY OTHER DEVICE USED TO INPUT, 48 WRITE, SEND, RECEIVE OR READ TEXT. 49 (b) "Using" shall mean holding a portable electronic device while 50 viewing, taking or transmitting images, INSTANT MESSAGING, PERFORMING A 51 COMMAND OR REQUEST TO ACCESS A WORLD WIDE WEB PAGE, playing games, or 52 composing, sending, reading, viewing, accessing, browsing, transmitting, 53 saving or retrieving e-mail, text messages, or other electronic data. 54 S 7. This act shall take effect October 28, 2013 and shall apply to 55 violations committed on or after such date. S. 2608 7 A. 3008 1 PART D 2 Section 1. Subdivision 1 of section 200 of the vehicle and traffic 3 law, as amended by chapter 60 of the laws of 1993, is amended to read as 4 follows: 5 1. There shall be in the state government a department of motor vehi- 6 cles. The head of the department shall be the commissioner of motor 7 vehicles who shall be appointed by the governor, by and with the advice 8 and consent of the senate, and hold office until the end of the term of 9 the appointing governor and until a successor is appointed and has qual- 10 ified, and who shall receive an annual salary within the amount appro- 11 priated therefor. The commissioner of motor vehicles shall have the 12 immediate charge of the department. The commissioner of motor vehicles 13 may appoint, and at pleasure remove, such deputy commissioners of motor 14 vehicles, inspectors, examiners and other assistants and employees of 15 the department as are deemed necessary, within the amounts available 16 therefor by appropriation. The commissioner of motor vehicles and all 17 other officers and employees of the department shall be paid and allowed 18 their necessary, actual and reasonable expenses incurred in the exercise 19 of their duties. All salaries and expenses of the department shall be 20 paid out of the state treasury on the audit and warrant of the comp- 21 troller on the certificate of the commissioner of motor vehicles. The 22 principal office of the department shall be in the city of Albany. 23 NOTWITHSTANDING THE PROVISIONS OF SECTION SIXTY-TWO OF THE PUBLIC OFFI- 24 CERS LAW, THE COMMISSIONER OF MOTOR VEHICLES MAY DESIGNATE CERTAIN 25 BRANCH OFFICES OF THE DEPARTMENT TO BE OPEN TO SERVE THE PUBLIC AND 26 TRANSACT BUSINESS ON SATURDAYS. 27 S 2. This act shall take effect immediately. 28 PART E 29 Section 1. Section 357-a of public authorities law is REPEALED and a 30 new section 357-a is added to read as follows: 31 S 357-A. STATE POLICE AND STATE PAYMENT FOR SERVICES. 1. ENFORCEMENT 32 ASSISTANCE SHALL BE PROVIDED BY THE DIVISION OF STATE POLICE AT A LEVEL 33 CONSISTENT WITH HISTORICAL PRECEDENTS, AS A MATTER OF STATE INTEREST, ON 34 ALL SECTIONS OF THE THRUWAY. THE AUTHORITY SHALL PROVIDE GOODS AND 35 SERVICES TO THE DIVISION OF STATE POLICE IN CONNECTION WITH ITS ENFORCE- 36 MENT ACTIVITY ON THE THRUWAY. THE DIVISION OF STATE POLICE AND THE 37 AUTHORITY SHALL ENTER INTO AN AGREEMENT IDENTIFYING THOSE GOODS AND 38 SERVICES THAT THE AUTHORITY WILL PROVIDE TO THE DIVISION OF STATE POLICE 39 AND DETERMINE REPORTING AND OTHER REQUIREMENTS RELATED THERETO. ANY 40 COSTS BORNE BY THE STATE POLICE OUTSIDE OF SUCH AGREEMENT SHALL NOT BE 41 REIMBURSED BY THE AUTHORITY NOR SHALL THEY BE DEEMED COSTS OF THE 42 AUTHORITY. 43 2. THE STATE SHALL BE RESPONSIBLE FOR ADDITIONAL GOODS AND SERVICES 44 PROVIDED BY THE AUTHORITY EQUAL TO TWENTY-FOUR MILLION DOLLARS IN EACH 45 CALENDAR YEAR. SUCH GOODS AND SERVICES SHALL BE DEEMED TO BE COSTS TO 46 THE STATE AND NOT OPERATING COSTS OF THE AUTHORITY. THE AUTHORITY AND 47 THE DIRECTOR OF THE DIVISION OF THE BUDGET SHALL ENTER INTO AN AGREEMENT 48 IDENTIFYING ANY SUCH STATE COSTS AND DETERMINE REPORTING AND OTHER 49 REQUIREMENTS RELATED THERETO. 50 3. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE AUTHORITY SHALL NOT 51 CONSTITUTE A PUBLIC BENEFIT CORPORATION WITHIN THE MEANING OF SECTION 52 TWENTY-NINE HUNDRED SEVENTY-FIVE OF THIS CHAPTER AND SHALL NOT BE 53 ASSESSED AN ANNUAL COST RECOVERY CHARGE UNDER SAID SECTION. S. 2608 8 A. 3008 1 S 2. This act shall take effect immediately and shall be deemed to 2 have been in full force and effect on and after January 1, 2013. 3 PART F 4 Section 1. This act shall be known and may be cited as the "Cleaner, 5 Greener NY act of 2013." 6 S 2. Subdivision 2-a of section 27-1003 of the environmental conserva- 7 tion law, as added by section 3 of part SS of chapter 59 of the laws of 8 2009, is amended to read as follows: 9 2-a. "Bottler" means a person, firm or corporation who: 10 a. bottles, cans or otherwise packages beverages in beverage contain- 11 ers except that if such packaging is for [a distributor] ANY OTHER 12 PERSON, FIRM OR CORPORATION having the right to bottle, can or otherwise 13 package the same brand of beverage, then such [distributor] OTHER 14 PERSON, FIRM OR CORPORATION shall be the bottler; or 15 b. imports filled beverage containers into the United States. 16 S 3. Subdivisions 2, 3, 4, 5, 7, 8 and 11 of section 27-1007 of the 17 environmental conservation law, as added by section 4 of part SS of 18 chapter 59 of the laws of 2009, are amended to read as follows: 19 2. A dealer shall post a conspicuous sign, at the point of sale, that 20 states: 21 "NEW YORK BOTTLE BILL OF RIGHTS 22 STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE 23 CONTAINERS OF THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE 24 YOU HAVE CERTAIN RIGHTS UNDER THE NEW YORK STATE RETURNABLE CONTAINER 25 ACT: 26 THE RIGHT to return your empties for refund to any dealer who sells 27 the same brand, type and size, whether you bought the beverage from the 28 dealer or not. It is illegal to return containers for refund [that you 29 did not pay] ON WHICH a deposit WAS NEVER PAID in New York state. 30 THE RIGHT to get your deposit refund in cash, without proof of 31 purchase. 32 THE RIGHT to return your empties any day, any hour, except for the 33 first and last hour of the dealer's business day (empty containers may 34 be redeemed at any time in 24-hour stores). 35 THE RIGHT to return your containers if they are REASONABLY CLEAN, 36 empty and intact. [Washing containers is not required by law, but is 37 strongly recommended to maintain sanitary conditions.] 38 The New York state returnable container act can be enforced by the New 39 York state department of environmental conservation, the New York state 40 department of agriculture and markets, the New York state department of 41 taxation and finance, the New York state attorney general and/or by your 42 local government." 43 Such sign must be no less than eight inches by ten inches in size and 44 have lettering a minimum of one quarter inch high, and of a color which 45 contrasts with the background. The department shall maintain a toll free 46 telephone number for a "bottle bill complaint line" that shall be avail- 47 able from 9:00 a.m. to 5:00 p.m. each business day to receive reports of 48 violations of this title. The telephone number shall be listed on any 49 sign required by this section. 50 3. [On or after June first, two thousand nine, a] A dealer WHOSE PLACE 51 OF BUSINESS IS LESS THAN TEN THOUSAND SQUARE FEET IN SIZE may limit the 52 number of empty beverage containers to be accepted for redemption at the S. 2608 9 A. 3008 1 dealer's place of business to no less than seventy-two containers per 2 visit, per redeemer, per day, provided that: 3 (a) The dealer has a written agreement with a redemption center, be it 4 either at a fixed physical location within the same county and within 5 ONE AND one-half mile of the dealer's place of business, or a mobile 6 redemption center, operated by a redemption center, that is located 7 within [one-quarter] ONE mile of the dealer's place of business. The 8 redemption center must have a written agreement with the dealer to 9 accept containers on behalf of the dealer; and the redemption center's 10 hours of operation must cover at least 9:00 a.m. through 7:00 p.m. daily 11 or in the case of a mobile redemption center, the hours of operation 12 must cover at least four consecutive hours between 8:00 a.m. and 8:00 13 p.m. daily. The dealer must post a conspicuous, permanent sign, meeting 14 the size and color specifications set forth in subdivision two of this 15 section, open to public view, identifying the location and hours of 16 operation of the affiliated redemption center or mobile redemption 17 center; [and] OR 18 (b) The dealer provides, at a minimum, a consecutive two hour period 19 between 7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept up 20 to two hundred forty containers, per redeemer, per day, and posts a 21 conspicuous, permanent sign, meeting the size and color specifications 22 set forth in subdivision two of this section, open to public view, iden- 23 tifying those hours. The dealer may not change the hours of redemption 24 without first posting a thirty day notice[; and 25 (c) The dealer's primary business is the sale of food or beverages for 26 consumption off-premises, and the dealer's place of business is less 27 than ten thousand square feet in size]. 28 4. A deposit initiator shall accept from a dealer or operator of a 29 redemption center any empty beverage container of the design, shape, 30 size, color, composition and brand sold or offered for sale by the 31 deposit initiator, PROVIDED SUCH CONTAINERS ARE PROPERLY SORTED AS 32 DETERMINED IN RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER and 33 shall pay the dealer or operator of a redemption center the refund value 34 of each such beverage container as established by section 27-1005 of 35 this title. A deposit initiator shall accept and redeem all such empty 36 beverage containers from a dealer or redemption center without limita- 37 tion on quantity. 38 5. A deposit initiator's or distributor's failure to pick up empty 39 beverage containers[, including containers processed in a reverse vend- 40 ing machine,] from a redemption center, dealer or the operator of a 41 reverse vending machine, shall be a violation of this title. 42 7. A deposit initiator [on a brand] WHO INITIATES A DEPOSIT ON A 43 BEVERAGE CONTAINER shall accept SUCH EMPTY BEVERAGE CONTAINER from [a] 44 AND REIMBURSE ANY distributor who [does not initiate deposits on that 45 brand any] ACCEPTED AND REDEEMED SUCH empty beverage [containers of that 46 brand accepted by the distributor] CONTAINER from a dealer or operator 47 of a redemption center [and shall reimburse the distributor] FOR the 48 [refund value of each such beverage container, as established by section 49 27-1005 of this title] DEPOSIT AND HANDLING FEE PAID BY THE DISTRIBUTOR. 50 [In addition, the deposit initiator shall reimburse such distributor for 51 each such beverage container the handling fee established under subdivi- 52 sion six of this section.] Without limiting the rights of the department 53 or any person, firm or corporation under this subdivision or any other 54 provision of this [section] TITLE, a distributor shall have a civil 55 right of action to enforce this subdivision, including, upon three days 56 notice, the right to apply for temporary and preliminary injunctive S. 2608 10 A. 3008 1 relief against continuing violations, and until arrangements for 2 collection and return of empty containers or reimbursement of [such] THE 3 REDEEMING distributor for such deposits and handling fees are made. 4 8. It shall be the responsibility of the deposit initiator or distrib- 5 utor to provide to a dealer or redemption center a sufficient number of 6 bags, cartons, or other suitable containers, at no cost, for the packag- 7 ing, handling and pickup of empty beverage containers that are not 8 redeemed through a reverse vending machine. The bags, cartons, or 9 containers must be provided by the deposit initiator or distributor on a 10 schedule that allows the dealer or redemption center sufficient time to 11 sort the empty beverage containers prior to pick up by the deposit 12 initiator or distributor. In addition: 13 (a) When picking up empty beverage containers, a deposit initiator or 14 distributor shall not require a dealer or redemption center to load 15 their own bags, cartons or containers onto or into the deposit initi- 16 ator's or distributor's vehicle or vehicles or provide the staff or 17 equipment needed to do so. HOWEVER, WHERE PALLETS OR SKIDS, BAGS, 18 CARTONS OR CONTAINERS ARE READILY MOVABLE ONLY BY MEANS OF A FORKLIFT OR 19 SIMILAR EQUIPMENT, A DEPOSIT INITIATOR OR DISTRIBUTOR MAY REQUIRE A 20 DEALER OR REDEMPTION CENTER TO MOVE OR LOAD SUCH ITEMS AT NO COST USING 21 A FORKLIFT OR SIMILAR EQUIPMENT BELONGING TO THE DEALER OR REDEMPTION 22 CENTER. 23 (b) A deposit initiator or distributor [shall not] MAY require empty 24 containers to be counted at a location other than the redemption center 25 or dealer's place of business. The dealer or redemption center shall 26 have the right to be present at the count. 27 (c) A deposit initiator or distributor shall pick up empty beverage 28 containers from the dealer or redemption center at reasonable times and 29 intervals THAT SHALL ALSO TAKE INTO ACCOUNT A MINIMUM VOLUME OF CONTAIN- 30 ERS NECESSARY FOR SUCH A PICK UP as determined in rules or regulations 31 promulgated by the department OR ON A SCHEDULE MEETING THE MINIMUM 32 REQUIREMENTS OF SUCH REGULATIONS AND AGREED TO IN WRITING BY THE DEPOSIT 33 INITIATOR OR DISTRIBUTOR AND THE REDEMPTION CENTER. 34 11. [Notwithstanding the provisions of subdivision two of section 35 27-1009 of this title, a deposit initiator or distributor shall accept 36 and redeem beverage containers as provided in this title, if the dealer 37 or operator of a redemption center shall have accepted and paid the 38 refund value of such beverage containers.] NO PERSON SHALL PROGRAM, 39 TAMPER WITH, MISUSE, RENDER INACCURATE, OR CIRCUMVENT THE PROPER OPERA- 40 TION OF A REVERSE VENDING MACHINE TO ELICIT DEPOSIT MONIES WHEN NO 41 VALID, REDEEMABLE BEVERAGE CONTAINER HAS BEEN PLACED IN THE REVERSE 42 VENDING MACHINE. 43 S 4. Section 27-1009 of the environmental conservation law, as amended 44 by section 5 of part SS of chapter 59 of the laws of 2009, is amended to 45 read as follows: 46 S 27-1009. Refusal of acceptance. 47 1. A dealer or operator of a redemption center [may] SHALL refuse to 48 accept from a redeemer, and a deposit initiator or distributor [may] 49 SHALL refuse to accept from a dealer or operator of a redemption center 50 any empty beverage container which does not state thereon a refund value 51 as established by section 27-1005 and provided by section 27-1011 of 52 this title. 53 2. A dealer [or], operator of a redemption center, DISTRIBUTOR, OR 54 DEPOSIT INITIATOR may also refuse to accept any BEVERAGE CONTAINER WHICH 55 IS NOT REASONABLY CLEAN OR CONTAINS A SIGNIFICANT AMOUNT OF FOREIGN 56 MATERIAL, ANY broken bottle, ANY corroded, CRUSHED or dismembered [can] S. 2608 11 A. 3008 1 CONTAINER, or any beverage container which [contains a significant 2 amount of foreign material,] IS OTHERWISE ALTERED SO THAT IT IS RENDERED 3 UNREDEEMABLE as determined in rules and regulations to be promulgated by 4 the commissioner. SUCH REFUSAL MUST OCCUR AT THE TIME THE BEVERAGE 5 CONTAINER IS TENDERED FOR REDEMPTION. NOTWITHSTANDING THE FOREGOING, 6 CONTAINERS PROCESSED THROUGH REVERSE VENDING MACHINES AUTHORIZED BY A 7 DISTRIBUTOR OR DEPOSIT INITIATOR, AS DOCUMENTED THROUGH REVERSE VENDING 8 MACHINE RECONCILIATION STATEMENTS OR OTHER REASONABLE DOCUMENTATION, 9 SHALL BE ACCEPTED BY A DISTRIBUTOR OR DEPOSIT INITIATOR. 10 S 5. Subdivision 1 of section 27-1011 of the environmental conserva- 11 tion law, as amended by chapter 149 of the laws of 1983, is amended to 12 read as follows: 13 1. a. Every beverage container sold or offered for sale in this state 14 [by a distributor or dealer] shall clearly indicate by permanently mark- 15 ing or embossing the container or by printing as part of the product 16 label the refund value of the container and the words "New York" or the 17 letters "NY"[; provided, however, in the case of private label beverages 18 such information may be embossed or printed on a label which is securely 19 or permanently affixed to the beverage container. Private label beverag- 20 es shall be defined as beverages purchased from a beverage manufacturer 21 in beverage containers bearing a brand name or trademark for sale at 22 retail directly by the owner or licensee of such brand name or trade- 23 mark; or through retail dealers affiliated with such owner or licensee 24 by a cooperative or franchise agreement]. 25 b. Such embossing or permanent imprinting on the beverage container 26 shall be the responsibility of the person, firm or corporation which 27 bottles, cans or otherwise fills or packages a beverage container or a 28 brand owner for whose exclusive account private label beverages are 29 bottled, canned or otherwise packaged; provided, however, that the duly 30 authorized agent of any such person, firm or corporation may indicate 31 such refund value by a label securely affixed on any beverage container 32 containing beverages imported into the United States. PRIVATE LABEL 33 BEVERAGES SHALL BE DEFINED AS BEVERAGES PURCHASED FROM A BOTTLER IN 34 BEVERAGE CONTAINERS BEARING A BRAND NAME OR TRADEMARK FOR SALE AT RETAIL 35 DIRECTLY BY THE OWNER OR LICENSEE OF SUCH BRAND NAME OR TRADEMARK; OR 36 THROUGH RETAIL DEALERS AFFILIATED WITH SUCH OWNER OR LICENSEE BY A COOP- 37 ERATIVE OR FRANCHISE AGREEMENT. 38 S 6. Subdivision 5, paragraph b of subdivision 9 and subdivision 12 of 39 section 27-1012 of the environmental conservation law, as added by 40 section 8 of part SS of chapter 59 of the laws of 2009, are amended to 41 read as follows: 42 5. All monies collected or received by the department of taxation and 43 finance pursuant to this title shall be deposited to the credit of the 44 comptroller with such responsible banks, banking houses or trust compa- 45 nies as may be designated by the comptroller. Such deposits shall be 46 kept separate and apart from all other moneys in the possession of the 47 comptroller. The comptroller shall require adequate security from all 48 such depositories. Of the total revenue collected, the comptroller shall 49 retain the amount determined by the commissioner of taxation and finance 50 to be necessary for refunds out of which the comptroller must pay any 51 refunds to which a deposit initiator may be entitled. After reserving 52 the amount to pay refunds, the comptroller must, by the tenth day of 53 each month, pay into the state treasury to the credit of the general 54 fund the revenue deposited under this subdivision during the preceding 55 calendar month and remaining to the comptroller's credit on the last day 56 of that preceding month[.]; PROVIDED, HOWEVER, THAT, BEGINNING APRIL S. 2608 12 A. 3008 1 FIRST, TWO THOUSAND THIRTEEN, AND ALL FISCAL YEARS THEREAFTER, FIFTEEN 2 MILLION DOLLARS PLUS ALL FUNDS RECEIVED FROM THE PAYMENTS DUE EACH 3 FISCAL YEAR PURSUANT TO SUBDIVISION FOUR OF THIS SECTION IN EXCESS OF 4 THE AMOUNT RECEIVED FROM APRIL FIRST, TWO THOUSAND TWELVE THROUGH MARCH 5 THIRTY-FIRST, TWO THOUSAND THIRTEEN, SHALL BE DEPOSITED TO THE CREDIT OF 6 THE ENVIRONMENTAL PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINE- 7 TY-TWO-S OF THE STATE FINANCE LAW. 8 b. Any deposit initiator who fails to FILE REPORTS, MAKE QUARTERLY 9 PAYMENTS OR maintain accounts or records pursuant to this section, 10 unless it is shown that such failure was due to reasonable cause and not 11 due to negligence or willful neglect, in addition to any other penalty 12 imposed by this title, shall be subject to a penalty to be assessed by 13 the commissioner of taxation and finance of not more than one thousand 14 dollars for each quarter during which such failure occurred, and an 15 additional penalty of not more than one thousand dollars for each quar- 16 ter such failure continues. 17 12. [Beginning on June first, two thousand nine each deposit initiator 18 shall register the container label of any beverage offered for sale in 19 the state on which it initiates a deposit. Any such registered container 20 label shall bear a universal product code. Such universal product code 21 shall be New York state specific, in order to identify the beverage 22 container as offered for sale exclusively in New York state, and as a 23 means of preventing illegal redemption of beverage containers purchased 24 out-of-state. Registration must be on forms as prescribed by the depart- 25 ment and must include the universal product code for each combination of 26 beverage and container manufactured. The commissioner may require that 27 such forms be filed electronically. The deposit initiator shall renew a 28 label registration whenever that label is revised by altering the 29 universal product code or whenever the container on which it appears is 30 changed in size, composition or glass color.] A. EACH DEPOSIT INITIATOR 31 SHALL PROVIDE A REPORT TO THE DEPARTMENT DESCRIBING ALL THE TYPES OF 32 BEVERAGE CONTAINERS ON WHICH IT INITIATES DEPOSITS. THE REPORT SHALL 33 INCLUDE THE PRODUCT NAME, TYPE OF BEVERAGE, SIZE AND COMPOSITION OF THE 34 BEVERAGE CONTAINER, UNIVERSAL PRODUCT CODE, AND ANY OTHER INFORMATION 35 THE DEPARTMENT MAY REQUIRE. UPON REQUEST, A DEPOSIT INITIATOR SHALL ALSO 36 PROVIDE TO THE DEPARTMENT A COPY OF THE CONTAINER LABEL OR A PICTURE OF 37 ANY BEVERAGE CONTAINER SOLD OR OFFERED FOR SALE IN THIS STATE ON WHICH 38 IT INITIATES A DEPOSIT. SUCH INFORMATION SHALL BE PROVIDED IN A FORM AS 39 PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT MAY REQUIRE THAT SUCH 40 FORMS BE FILED ELECTRONICALLY. 41 B. A BOTTLER MAY PLACE ON A BEVERAGE CONTAINER A UNIVERSAL PRODUCT 42 CODE OR OTHER DISTINCTIVE MARKING THAT IS SPECIFIC TO THE STATE OR USED 43 ONLY IN THE STATE AND ANY OTHER STATES WITH LAWS SUBSTANTIALLY SIMILAR 44 TO THIS TITLE AS A MEANS OF PREVENTING REDEMPTION OF BEVERAGE CONTAINERS 45 ON WHICH A DEPOSIT WAS NOT PAID. 46 C. A BOTTLER OR DEPOSIT INITIATOR SHALL NOTIFY THE DEPARTMENT, IN A 47 FORM PRESCRIBED BY THE DEPARTMENT, WHENEVER A BEVERAGE CONTAINER OR 48 BEVERAGE CONTAINER LABEL IS REVISED BY ALTERING THE UNIVERSAL PRODUCT 49 CODE, OR WHENEVER THE CONTAINER ON WHICH A UNIVERSAL PRODUCT CODE 50 APPEARS IS CHANGED IN SIZE, COMPOSITION OR GLASS COLOR, OR WHENEVER THE 51 CONTAINER OR CONTAINER LABEL ON WHICH A UNIVERSAL PRODUCT CODE APPEARS 52 IS CHANGED TO INCLUDE A UNIVERSAL PRODUCT CODE THAT IS UNIQUE TO THE 53 STATE OR USED ONLY IN THE STATE AND ANY OTHER STATES WITH LAWS SUBSTAN- 54 TIALLY SIMILAR TO THIS TITLE. S. 2608 13 A. 3008 1 S 7. Section 27-1013 of the environmental conservation law, as amended 2 by section 9 of part SS of chapter 59 of the laws of 2009, is amended to 3 read as follows: 4 S 27-1013. Redemption centers AND DEALERS. 5 The commissioner is hereby empowered to promulgate rules and regu- 6 lations governing (1) THE REGISTRATION OR PERMITTING OF REDEMPTION 7 CENTERS INCLUDING BUT NOT LIMITED TO CONDITIONS FOR GRANTING A REGISTRA- 8 TION OR PERMIT, GROUNDS FOR REVOCATION OF A REGISTRATION OR PERMIT AND 9 THE PROCESS FOR THE REVOCATION OF A REGISTRATION OR PERMIT; (2) the 10 circumstances in which DEPOSIT INITIATORS, dealers and distributors, 11 individually or collectively, are required to accept the return of empty 12 beverage containers, and make payment therefor; [(2)] (3) the sorting of 13 the containers which a deposit initiator or distributor may require of 14 dealers and redemption centers; [(3)] (4) the collection of returned 15 beverage containers by deposit initiators or distributors, including the 16 party to whom such expense is to be charged, the frequency of such pick 17 ups THAT SHALL ALSO ALLOW A SCHEDULE MEETING THE MINIMUM REQUIREMENTS OF 18 SUCH REGULATIONS AND AGREED TO IN WRITING BY THE DEPOSIT INITIATOR OR 19 DISTRIBUTOR AND THE REDEMPTION CENTER AND THAT SHALL ALSO TAKE INTO 20 ACCOUNT A MINIMUM VOLUME OF CONTAINERS NECESSARY FOR SUCH A PICK UP and 21 the payment for refunds and handling fees thereon; [(4)] (5) the right 22 of dealers to restrict or limit the number of containers redeemed, the 23 rules for redemption at the dealers' place of business, and the redemp- 24 tion of containers from a beverage for which sales have been discontin- 25 ued, and to issue REGISTRATIONS OR permits to persons, firms or corpo- 26 rations which establish redemption centers, subject to applicable 27 provisions of local and state laws, at which redeemers and dealers may 28 return empty beverage containers and receive payment of the refund value 29 of such beverage containers; (6) THE ASSIGNMENT OF A SPECIFIC REGISTRA- 30 TION OR PERMIT IDENTIFICATION NUMBER TO EACH REDEMPTION CENTER; SUCH 31 REGISTRATION OR PERMIT NUMBER, ALONG WITH THE NUMBER OF CONTAINERS 32 CONTAINED THEREIN, SHALL BE AFFIXED TO ANY BOX OR BAG PROFFERED BY A 33 REDEMPTION CENTER TO A DEPOSIT INITIATOR OR DISTRIBUTOR FOR REDEMPTION 34 IN A MANNER MANDATED BY THE COMMISSIONER; AND (7) THE OPERATION OF 35 MOBILE REDEMPTION CENTERS IN ORDER TO ENSURE THAT TO THE BEST EXTENT 36 PRACTICABLE CONTAINERS ARE NOT PROFFERED FOR REDEMPTION TO A DEPOSIT 37 INITIATOR OR DISTRIBUTOR OUTSIDE OF THE GEOGRAPHIC AREA WHERE SUCH 38 DEPOSIT INITIATOR SELLS CONTAINERS AND INITIATES DEPOSITS. No dealer or 39 distributor, as defined in section 27-1003 of this title, shall be 40 required to obtain a permit to operate a redemption center at the same 41 location as the dealer's or distributor's place of business. Operators 42 of such redemption centers shall receive payment of the refund value of 43 each beverage container from the appropriate deposit initiator or 44 distributor as provided under section 27-1007 of this title. 45 S 8. Section 27-1014 of the environmental conservation law, as amended 46 by section 10 of part SS of chapter 59 of the laws of 2009, is amended 47 to read as follows: 48 S 27-1014. Authority to promulgate rules and regulations. 49 In addition to the authority of the commissioner, under sections 50 27-1007, 27-1009 and 27-1013 of this title, the commissioner shall have 51 the power to promulgate rules and regulations necessary and appropriate 52 for the administration of this title AND TO PREVENT FRAUD. 53 S 9. Section 27-1015 of the environmental conservation law, as amended 54 by section 11 of part SS of chapter 59 of the laws of 2009, is amended 55 to read as follows: 56 S 27-1015. Violations. S. 2608 14 A. 3008 1 1. [A violation of this title, except as otherwise provided in this 2 section and section 27-1012 of this title, shall be a public nuisance. 3 In addition, except] CIVIL AND ADMINISTRATIVE SANCTIONS. A. EXCEPT as 4 otherwise provided in this section and section 27-1012 of this title, 5 any person who [shall violate] VIOLATES any [provision] OF THE 6 PROVISIONS of, OR FAILS TO PERFORM A DUTY IMPOSED BY, THIS TITLE OR ANY 7 RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDI- 8 TION OF ANY REGISTRATION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL 9 DETERMINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO this title 10 shall be liable [to the state of New York] for a civil penalty of not 11 more than five hundred dollars FOR EACH VIOLATION, and an additional 12 civil penalty of not more than five hundred dollars for each day during 13 which each such violation continues. Any civil penalty may be assessed 14 BY THE COMMISSIONER following a hearing or opportunity to be heard 15 PURSUANT TO THE PROVISIONS OF SECTION 71-1709 OF THIS CHAPTER OR BY THE 16 COURT IN ANY ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS 17 CHAPTER. IN ADDITION, SUCH PERSON MAY BY SIMILAR PROCESS BE ENJOINED 18 FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRATION ISSUED TO 19 SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING RENEWAL APPLICATION 20 DENIED. 21 [2. Any] B. IN ADDITION TO ANY PENALTIES IMPOSED BY THE DEPARTMENT OF 22 TAXATION AND FINANCE AS PROVIDED IN SECTION 27-1012 OF THIS TITLE, ANY 23 distributor or deposit initiator who violates any provision of this 24 title, [except as provided in section 27-1012 of this title,] OR FAILS 25 TO PERFORM A DUTY IMPOSED BY THIS TITLE, OR ANY RULE OR REGULATION 26 PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDITION OF ANY REGISTRA- 27 TION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR 28 ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE shall be liable 29 [to the state of New York] for a civil penalty of not more than one 30 thousand dollars FOR EACH VIOLATION, and an additional civil penalty of 31 not more than one thousand dollars for each day during which each such 32 violation continues. Any civil penalty may be assessed BY THE COMMIS- 33 SIONER following a hearing or opportunity to be heard PURSUANT TO THE 34 PROVISIONS OF SECTION 71-1709 OF THIS CHAPTER, OR BY THE COURT IN ANY 35 ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS CHAPTER. IN 36 ADDITION, SUCH DEPOSIT INITIATOR OR DISTRIBUTOR MAY BY SIMILAR PROCESS 37 BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRA- 38 TION ISSUED TO SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING 39 RENEWAL APPLICATION DENIED. 40 2. CRIMINAL SANCTIONS. A. ANY PERSON WHO, HAVING ANY OF THE CULPABLE 41 MENTAL STATES DEFINED IN SECTION 15.05 OF THE PENAL LAW, VIOLATES ANY 42 PROVISION OF OR WHO FAILS TO PERFORM ANY DUTY IMPOSED BY THIS TITLE, OR 43 ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETER- 44 MINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL 45 BE GUILTY OF A VIOLATION AND, UPON CONVICTION, SHALL BE PUNISHED BY A 46 FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION; EACH DAY 47 ON WHICH SUCH VIOLATION OCCURS SHALL CONSTITUTE A SEPARATE VIOLATION; 48 AND FOR EACH SUCH VIOLATION THE PERSON SHALL BE SUBJECT, UPON 49 CONVICTION, TO IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS OR TO A FINE 50 OF NOT MORE THAN FIVE HUNDRED DOLLARS, OR TO BOTH IMPRISONMENT AND FINE. 51 B. IN ADDITION TO ANY PENALTIES IMPOSED BY THE DEPARTMENT OF TAXATION 52 AND FINANCE AS PROVIDED IN SECTION 27-1012 OF THIS TITLE, ANY DISTRIBU- 53 TOR OR DEPOSIT INITIATOR WHO, HAVING ANY OF THE CULPABLE MENTAL STATES 54 DEFINED IN SECTION 15.05 OF THE PENAL LAW, VIOLATES ANY PROVISION OF OR 55 WHO FAILS TO PERFORM ANY DUTY IMPOSED BY THIS TITLE, OR ANY RULE OR 56 REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR S. 2608 15 A. 3008 1 ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF 2 A VIOLATION AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT 3 MORE THAN ONE THOUSAND DOLLARS FOR EACH VIOLATION; EACH DAY ON WHICH 4 SUCH VIOLATION OCCURS SHALL CONSTITUTE A SEPARATE VIOLATION; AND FOR 5 EACH SUCH VIOLATION THE PERSON SHALL BE SUBJECT, UPON CONVICTION, TO 6 IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS OR TO A FINE OF NOT MORE 7 THAN ONE THOUSAND DOLLARS, OR TO BOTH SUCH IMPRISONMENT AND SUCH FINE. 8 [3.] C. It shall be unlawful for [a distributor or deposit initiator] 9 ANY PERSON, acting alone or aided by another, to return any empty bever- 10 age container to a dealer or redemption center for its refund value if 11 [the] A distributor or deposit initiator had previously accepted such 12 beverage container from any dealer or operator of a redemption center, 13 OR IF SUCH CONTAINER WAS PREVIOUSLY ACCEPTED BY A REVERSE VENDING 14 MACHINE. A violation of this [subdivision] PARAGRAPH shall be a misde- 15 meanor punishable by a fine of not less than five hundred dollars nor 16 more than one thousand dollars and an amount equal to two times the 17 amount of money received as a result of such violation, OR IMPRISONMENT 18 FOR NOT MORE THAN ONE YEAR, OR TO BOTH SUCH IMPRISONMENT AND SUCH FINES. 19 D. IN ADDITION TO ANY OTHER PENALTY PROVIDED BY THIS TITLE, ANY PERSON 20 WHO VIOLATES SUBDIVISION ELEVEN OF SECTION 27-1007 OF THIS TITLE, OR ANY 21 RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMI- 22 NATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE 23 GUILTY OF A MISDEMEANOR AND, UPON CONVICTION, SHALL BE PUNISHED BY A 24 FINE OF NOT MORE THAN ONE THOUSAND DOLLARS PER DAY OF VIOLATION, OR BY 25 IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR BY BOTH SUCH FINE AND IMPRI- 26 SONMENT. 27 E. IN ADDITION TO ANY OTHER PENALTY PROVIDED BY THIS TITLE, ANY DEAL- 28 ER, DISTRIBUTOR OR DEPOSIT INITIATOR, WHO KNOWINGLY OR INTENTIONALLY 29 VIOLATES ANY PROVISION OF OR FAILS TO PERFORM ANY DUTY IMPOSED BY 30 SECTION 27-1005 OR 27-1012 OF THIS TITLE, OR ANY RULE OR REGULATION 31 PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE 32 COMMISSIONER MADE PURSUANT TO THIS TITLE SHALL BE GUILTY OF A MISDEMEA- 33 NOR AND, UPON CONVICTION, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN 34 ONE THOUSAND DOLLARS PER DAY OF VIOLATION, OR BY IMPRISONMENT FOR NOT 35 MORE THAN ONE YEAR, OR BY BOTH SUCH FINE AND IMPRISONMENT. 36 [4.] 3. Any person who [willfully] tenders to a dealer, distributor, 37 redemption center or deposit initiator more than forty-eight empty 38 beverage containers for which such person knows or should reasonably 39 know that no deposit was paid in New York state may be assessed [by the 40 department] a civil penalty of up to one hundred dollars for each 41 container or up to twenty-five thousand dollars for each such tender of 42 containers. At each location where a person tenders containers for 43 redemption, dealers and redemption centers must conspicuously display a 44 sign in letters that are at least one inch in height with the following 45 information: "WARNING: Persons tendering for redemption containers on 46 which a deposit was never paid in this state may be subject to a civil 47 penalty of up to one hundred dollars per container or up to twenty-five 48 thousand dollars for each such tender of containers." Any civil penalty 49 may be assessed BY THE COMMISSIONER following a hearing or opportunity 50 to be heard PURSUANT TO THE PROVISIONS OF SECTION 71-1709 OF THIS CHAP- 51 TER, OR BY THE COURT IN ANY ACTION OR PROCEEDING PURSUANT TO SECTION 52 71-2727 OF THIS CHAPTER. IN ADDITION, SUCH PERSON MAY BY SIMILAR PROCESS 53 BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT OR REGISTRA- 54 TION ISSUED TO SUCH PERSON MAY BE REVOKED OR SUSPENDED OR A PENDING 55 RENEWAL APPLICATION DENIED. S. 2608 16 A. 3008 1 [5.] 4. A. The department, the department of agriculture and markets, 2 the department of taxation and finance and the attorney general are 3 hereby authorized to enforce the provisions of this title AND ALL MONIES 4 COLLECTED SHALL BE DEPOSITED TO THE CREDIT OF THE ENVIRONMENTAL 5 PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-S OF THE 6 STATE FINANCE LAW. In addition, the provisions of section 27-1005 of 7 this title and subdivisions one, two, three, four, five, ten and eleven 8 of section 27-1007 of this title may be enforced by a county, city, town 9 or village, and the local legislative body thereof may adopt local laws, 10 ordinances or regulations consistent with this title providing for the 11 enforcement of such provisions AND ALL MONIES COLLECTED BY THE ENFORCING 12 COUNTY, CITY, TOWN OR VILLAGE AS FINES OR PENALTIES PURSUANT TO THIS 13 SECTION SHALL BE PAYABLE TO AND BE THE PROPERTY OF THE COUNTY, CITY, 14 TOWN OR VILLAGE. 15 B. IN ADDITION, A VIOLATION OF THIS TITLE, EXCEPT AS OTHERWISE 16 PROVIDED IN THIS SECTION, SHALL BE A PUBLIC NUISANCE, AND WITHOUT LIMIT- 17 ING THE RIGHTS OF THE DEPARTMENT, OR ANY PERSON, FIRM OR CORPORATION 18 UNDER THIS SUBDIVISION OR ANY OTHER PROVISION OF THIS SECTION, A DEALER, 19 OWNER OR OPERATOR OF A REDEMPTION CENTER, DISTRIBUTOR, OR DEPOSIT INITI- 20 ATOR SHALL HAVE A CIVIL RIGHT OF ACTION TO ENFORCE THE PROVISIONS OF 21 SECTION 27-1009 OF THIS TITLE AND SUBDIVISIONS FOUR, FIVE, SIX, AND 22 EIGHT OF SECTION 27-1007 OF THIS TITLE. 23 S 10. Section 27-1017 of the environmental conservation law is 24 REPEALED. 25 S 11. Subdivision 3 of section 92-s of the state finance law, as 26 amended by section 2 of part T of chapter 59 of the laws of 2009, is 27 amended to read as follows: 28 3. Such fund shall consist of the amount of revenue collected within 29 the state from the amount of revenue, interest and penalties deposited 30 pursuant to section fourteen hundred twenty-one of the tax law, the 31 amount of fees and penalties received from easements or leases pursuant 32 to subdivision fourteen of section seventy-five of the public lands law 33 and the money received as annual service charges pursuant to section 34 four hundred four-l of the vehicle and traffic law, all moneys required 35 to be deposited therein from the contingency reserve fund pursuant to 36 section two hundred ninety-four of chapter fifty-seven of the laws of 37 nineteen hundred ninety-three, all moneys required to be deposited 38 pursuant to section thirteen of chapter six hundred ten of the laws of 39 nineteen hundred ninety-three, repayments of loans made pursuant to 40 section 54-0511 of the environmental conservation law, all moneys to be 41 deposited from the Northville settlement pursuant to section one hundred 42 twenty-four of chapter three hundred nine of the laws of nineteen 43 hundred ninety-six, provided however, that such moneys shall only be 44 used for the cost of the purchase of private lands in the core area of 45 the central Suffolk pine barrens pursuant to a consent order with the 46 Northville industries signed on October thirteenth, nineteen hundred 47 ninety-four and the related resource restoration and replacement plan, 48 the amount of penalties required to be deposited therein by section 49 71-2724 of the environmental conservation law, all moneys required to be 50 deposited pursuant to article thirty-three of the environmental conser- 51 vation law, all fees collected pursuant to subdivision eight of section 52 70-0117 of the environmental conservation law, [as added by a chapter of 53 the laws of two thousand nine,] all moneys collected pursuant to title 54 thirty-three of article fifteen of the environmental conservation law, 55 [as added by a chapter of the laws of two thousand nine] BEGINNING WITH 56 THE FISCAL YEAR COMMENCING ON APRIL FIRST, TWO THOUSAND THIRTEEN, AND S. 2608 17 A. 3008 1 ALL FISCAL YEARS THEREAFTER, FIFTEEN MILLION DOLLARS PLUS ALL FUNDS 2 RECEIVED BY THE STATE EACH FISCAL YEAR IN EXCESS OF THE AMOUNT RECEIVED 3 FROM APRIL FIRST, TWO THOUSAND TWELVE THROUGH MARCH THIRTY-FIRST, TWO 4 THOUSAND THIRTEEN, FROM THE PAYMENTS COLLECTED PURSUANT TO SUBDIVISION 5 FOUR OF SECTION 27-1012 OF THE ENVIRONMENTAL CONSERVATION LAW, and all 6 other moneys credited or transferred thereto from any other fund or 7 source pursuant to law. All such revenue shall be initially deposited 8 into the environmental protection fund, for application as provided in 9 subdivision five of this section. 10 S 12. This act shall take effect immediately and shall be deemed to 11 have been in full force and effect on and after April 1, 2013. 12 PART G 13 Section 1. Subdivisions 1 and 2 of section 27-1905 of the environ- 14 mental conservation law, as amended by section 1 of part DD of chapter 15 59 of the laws of 2010, are amended to read as follows: 16 1. [Until December thirty-first, two thousand thirteen, accept] ACCEPT 17 from a customer, waste tires of approximately the same size and in a 18 quantity equal to the number of new tires purchased or installed by the 19 customer; and 20 2. [Until December thirty-first, two thousand thirteen, post] POST 21 written notice in a prominent location, which must be at least eight and 22 one-half inches by fourteen inches in size and contain the following 23 language: 24 "New York State law requires us to accept and manage waste tires from 25 vehicles in exchange for an equal number of new tires that we sell or 26 install. Tire retailers are required to charge a separate and distinct 27 waste tire management and recycling fee of $2.50 for each new tire sold. 28 The retailers in addition are authorized, at their sole discretion, to 29 pass on waste tire management and recycling costs to tire purchasers. 30 Such costs may be included as part of the advertised price of the new 31 tire, or charged as a separate per-tire charge in an amount not to 32 exceed $2.50 on each new tire sold." 33 The written notice shall also contain one of the following statements 34 at the end of the aforementioned language and as part of the notice, 35 which shall accurately indicate the manner in which the tire service 36 charges for waste tire management and recycling costs, and the amount of 37 any charges that are separately invoiced for such costs: 38 "Our waste tire management and recycling costs are included in the 39 advertised price of each new tire.", or 40 "We charge a separate per-tire charge of $____ on each new tire sold 41 that will be listed on your invoice to cover our waste tire management 42 and recycling costs." 43 S 2. Subdivisions 1, 2 and 3 and paragraph (a) of subdivision 6 of 44 section 27-1913 of the environmental conservation law, subdivisions 1, 45 2, the opening paragraph of subdivision 3 and paragraph (a) of subdivi- 46 sion 6 as amended by section 4 of part DD of chapter 59 of the laws of 47 2010 and subdivision 3 as amended by section 2 of part E1 of chapter 63 48 of the laws of 2003, are amended to read as follows: 49 1. [Until December thirty-first, two thousand thirteen, a] A waste 50 tire management and recycling fee of two dollars and fifty cents shall 51 be charged on each new tire sold. The fee shall be paid by the purchaser 52 to the tire service at the time the new tire or new motor vehicle is 53 purchased. 54 The waste tire management and recycling fee does not apply to: S. 2608 18 A. 3008 1 (a) recapped or resold tires; 2 (b) mail-order sales; or 3 (c) the sale of new motor vehicle tires to a person solely for the 4 purpose of resale provided the subsequent retail sale in this state is 5 subject to such fee. 6 2. [Until December thirty-first, two thousand thirteen, the] THE tire 7 service shall collect the waste tire management and recycling fee from 8 the purchaser at the time of the sale and shall [remit] PAY such fee to 9 the department of taxation and finance with the quarterly [report] 10 RETURN filed pursuant to subdivision three of this section. THE COMMIS- 11 SIONER OF TAXATION AND FINANCE MAY REQUIRE THAT THE TIRE SERVICE PAY THE 12 FEE ELECTRONICALLY. 13 (a) The fee imposed shall be stated as an invoice item separate and 14 distinct from the selling price of the tire. 15 (b) The tire service shall be entitled to retain an allowance of twen- 16 ty-five cents per tire from fees collected. 17 3. [Until March thirty-first, two thousand fourteen, each] EACH tire 18 service maintaining a place of business in this state shall make a 19 return to the department of taxation and finance on a quarterly basis[, 20 with the return for December, January, and February being due on or 21 before the immediately following March thirty-first; the return for 22 March, April, and May being due on or before the immediately following 23 June thirtieth; the return for June, July, and August being due on or 24 before the immediately following September thirtieth; and the return for 25 September, October, and November being due on or before the immediately 26 following December thirty-first] IN THE FORM AND MANNER PRESCRIBED BY 27 THE COMMISSIONER OF TAXATION AND FINANCE. THE COMMISSIONER OF TAXATION 28 AND FINANCE MAY REQUIRE SUCH RETURNS TO BE FILED ELECTRONICALLY. THE 29 QUARTERLY RETURNS REQUIRED BY THIS SUBDIVISION SHALL BE FILED FOR THE 30 QUARTERLY PERIODS ENDING ON THE LAST DAY OF FEBRUARY, MAY, AUGUST AND 31 NOVEMBER OF EACH YEAR, AND EACH SUCH RETURN SHALL BE FILED WITHIN TWENTY 32 DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THEREBY. 33 (a) Each return shall include: 34 (i) the name of the tire service; 35 (ii) the address of the tire service's principal place of business and 36 the address of the principal place of business (if that is a different 37 address) from which the tire service engages in the business of making 38 retail sales of tires; 39 (iii) the name and signature of the person preparing the return; 40 (iv) the total number of new tires sold at retail for the preceding 41 quarter and the total number of new tires placed on motor vehicles prior 42 to original retail sale; 43 (v) the amount of waste tire management and recycling fees due; and 44 (vi) such other reasonable information as the department of taxation 45 and finance may require. 46 (b) Copies of each [report] RETURN shall be retained by the tire 47 service for three years. 48 If a tire service ceases business, it shall file a final return and 49 [remit] PAY all fees due under this title [with] TO the department of 50 taxation and finance not more than one month after discontinuing that 51 business. 52 (a) [Until December thirty-first, two thousand thirteen, any] ANY 53 additional waste tire management and recycling costs of the tire service 54 in excess of the amount authorized to be retained pursuant to paragraph 55 (b) of subdivision two of this section may be included in the published 56 selling price of the new tire, or charged as a separate per-tire charge S. 2608 19 A. 3008 1 on each new tire sold. When such costs are charged as a separate per- 2 tire charge: (i) such charge shall be stated as an invoice item separate 3 and distinct from the selling price of the tire; (ii) the invoice shall 4 state that the charge is imposed at the sole discretion of the tire 5 service; and (iii) the amount of such charge shall reflect the actual 6 cost to the tire service for the management and recycling of waste tires 7 accepted by the tire service pursuant to section 27-1905 of this title, 8 provided however, that in no event shall such charge exceed two dollars 9 and fifty cents on each new tire sold. 10 S 3. This act shall take effect immediately, and shall apply to the 11 quarterly periods provided for in the opening paragraph of subdivision 12 three of section 27-1913 of the environmental conservation law, as 13 amended by section two of this act, beginning on or after the date this 14 act shall have become a law. 15 PART H 16 Section 1. Section 2 of chapter 393 of the laws of 1994, amending the 17 New York state urban development corporation act, relating to the powers 18 of the New York state urban development corporation to make loans, as 19 amended by section 1 of part R of chapter 58 of the laws of 2012, is 20 amended to read as follows: 21 S 2. This act shall take effect immediately [provided, however, that 22 section one of this act shall expire on July 1, 2013, at which time the 23 provisions of subdivision 26 of section 5 of the New York state urban 24 development corporation act shall be deemed repealed; provided, however, 25 that neither the expiration nor the repeal of such subdivision as 26 provided for herein shall be deemed to affect or impair in any manner 27 any loan made pursuant to the authority of such subdivision prior to 28 such expiration and repeal]. 29 S 2. This act shall take effect immediately and shall be deemed to 30 have been in full force and effect on and after April 1, 2013. 31 PART I 32 Section 1. Section 2 of part BB of chapter 58 of the laws of 2012 33 amending the public authorities law relating to authorizing the dormito- 34 ry authority to enter into certain design and construction management 35 agreements is amended to read as follows: 36 S 2. This act shall take effect immediately and shall expire and be 37 deemed repealed April 1, [2013] 2015. 38 S 2. This act shall take effect immediately and shall be deemed to 39 have been in effect on and after April 1, 2013. 40 PART J 41 Section 1. Subdivisions 27, 28, 29 and 30 of section 5 of section 1 of 42 chapter 174 of the laws of 1968, constituting the New York state urban 43 development corporation act, subdivisions 28 and 29 as renumbered by 44 chapter 686 of the laws of 1986, are renumbered subdivisions 28, 29, 30 45 and 31 and a new subdivision 27 is added to read as follows: 46 (27) TO MAKE GRANTS USING FUNDS FROM ANY SOURCE ON SUCH TERMS AND 47 CONDITIONS AS THE CORPORATION MAY DEEM ADVISABLE, IN FURTHERANCE OF THE 48 LEGISLATIVE FINDINGS AND PURPOSES OF THIS ACT, TO ANY PERSON OR ENTITY, 49 WHETHER PUBLIC OR PRIVATE, PROVIDED THAT SUCH GRANTS ARE MADE OR ISSUED 50 IN COMPLIANCE WITH GUIDELINES ESTABLISHED BY THE CORPORATION. S. 2608 20 A. 3008 1 S 2. This act shall take effect immediately. 2 PART K 3 Section 1. Notwithstanding any law to the contrary, the comptroller is 4 hereby authorized and directed to receive for deposit to the credit of 5 the general fund the amount of up to $913,000 from the New York state 6 energy research and development authority. 7 S 2. This act shall take effect immediately and shall be deemed to 8 have been in full force and effect on and after April 1, 2013. 9 PART L 10 Section 1. Expenditures of moneys appropriated in a chapter of the 11 laws of 2013 to the energy research and development authority, under the 12 research, development and demonstration program, from the special reven- 13 ue funds - other/state operations, miscellaneous special revenue fund - 14 339, energy research and planning account, and special revenue funds - 15 other/aid to localities, miscellaneous special revenue fund - 339, ener- 16 gy research and planning account shall be subject to the provisions of 17 this section. Notwithstanding the provisions of subdivision 4-a of 18 section 18-a of the public service law, all moneys committed or expended 19 shall be reimbursed by assessment against gas corporations and electric 20 corporations as defined in section 2 of the public service law, and the 21 total amount which may be charged to any gas corporation and any elec- 22 tric corporation shall not exceed one cent per one thousand cubic feet 23 of gas sold and .010 cent per kilowatt-hour of electricity sold by such 24 corporations in their intrastate utility operations in calendar year 25 2011. Such amounts shall be excluded from the general assessment 26 provisions of subdivision 2 of section 18-a of the public service law, 27 but shall be billed and paid in the manner set forth in such subdivision 28 and upon receipt shall be paid to the state comptroller for deposit in 29 the state treasury for credit to the miscellaneous special revenue fund. 30 The director of the budget shall not issue a certificate of approval 31 with respect to the commitment and expenditure of moneys hereby appro- 32 priated until the chair of such authority shall have submitted, and the 33 director of the budget shall have approved, a comprehensive financial 34 plan encompassing all moneys available to and all anticipated commit- 35 ments and expenditures by such authority from any source for the oper- 36 ations of such authority. Copies of the approved comprehensive financial 37 plan shall be immediately submitted by the director of the budget to the 38 chairs and secretaries of the legislative fiscal committees. 39 S 2. This act shall take effect immediately and shall be deemed to 40 have been in full force and effect on and after April 1, 2013. 41 PART M 42 Section 1. Notwithstanding any other law, rule or regulation to the 43 contrary, expenses of the department of health public service education 44 program incurred pursuant to appropriations from the cable television 45 account of the state miscellaneous special revenue funds shall be deemed 46 expenses of the department of public service. 47 S 2. This act shall take effect immediately and shall be deemed to 48 have been in full force and effect on and after April 1, 2013. 49 PART N S. 2608 21 A. 3008 1 Section 1. Paragraph (a) of subdivision 6 of section 18-a of the 2 public service law, as added by section 4 of part NN of chapter 59 of 3 the laws of 2009, is amended to read as follows: 4 (a) Notwithstanding any provision of law to the contrary, and subject 5 to the exceptions provided for in paragraph (b) of this subdivision, for 6 the state fiscal year beginning on April first, two thousand nine and 7 [four] NINE state fiscal years thereafter, a temporary annual assessment 8 (hereinafter "temporary state energy and utility service conservation 9 assessment") is hereby imposed on public utility companies (including 10 for the purposes of this subdivision municipalities other than munici- 11 palities as defined in section eighty-nine-l of this chapter), corpo- 12 rations (including for purposes of this subdivision the Long Island 13 power authority), and persons subject to the commission's regulation 14 (hereinafter such public utility companies, corporations, and persons 15 are referred to collectively as the "utility entities") to encourage the 16 conservation of energy and other resources provided through utility 17 entities, to be assessed in the manner provided in this subdivision; 18 provided, however, that such assessment shall not be imposed upon tele- 19 phone corporations as defined in subdivision seventeen of section two of 20 this article. 21 S 2. Section 6 of part NN of chapter 59 of the laws of 2009, amending 22 the public service law relating to financing the operations of the 23 department of public service, the public service commission, department 24 support and energy management services provided by other state agencies, 25 increasing the utility assessment cap and the minimum threshold for 26 collection thereunder, and establishing a temporary state energy and 27 utility service conservation assessment and providing for the collection 28 thereof, is amended to read as follows: 29 S 6. This act shall take effect immediately; provided, however, that 30 subdivision 6 of section 18-a of the public service law, as added by 31 section four of this act shall take effect April 1, 2009 and shall 32 expire and be deemed repealed March 31, [2014] 2019; and provided, 33 further, that if section four of this act shall become law after April 34 1, 2009, it shall take effect immediately and shall be deemed to have 35 been in full force and effect on and after April 1, 2009. 36 S 3. This act shall take effect immediately and shall be deemed to 37 have been in full force and effect on and after April 1, 2013; provided, 38 however, that the amendments to subdivision 6 of section 18-a of the 39 public service law made by section one of this act shall not affect the 40 repeal of such subdivision and shall be deemed to be repealed therewith. 41 PART O 42 Section 1. Sections 24 and 25 of the public service law are REPEALED 43 and a new section 24 is added to read as follows: 44 S 24. ADMINISTRATIVE SANCTIONS; RECOVERY OF PENALTIES. 1. EVERY PUBLIC 45 UTILITY COMPANY, CORPORATION OR PERSON AND THE OFFICERS, AGENTS AND 46 EMPLOYEES THEREOF SHALL ADHERE TO EVERY PROVISION OF THIS CHAPTER AND 47 EVERY ORDER OR REGULATION ADOPTED UNDER AUTHORITY OF THIS CHAPTER SO 48 LONG AS THE SAME SHALL BE IN FORCE. 49 2. (A) THE COMMISSION SHALL HAVE THE AUTHORITY TO ASSESS A CIVIL 50 PENALTY AGAINST A PUBLIC UTILITY COMPANY, CORPORATION, OR PERSON AND THE 51 OFFICERS, AGENTS AND EMPLOYEES THEREOF SUBJECT TO THE JURISDICTION, 52 SUPERVISION, OR REGULATION PURSUANT TO THIS CHAPTER IN AN AMOUNT AS SET 53 FORTH IN THIS SECTION. IN DETERMINING THE AMOUNT OF ANY PENALTY TO BE 54 ASSESSED PURSUANT TO THIS SECTION, THE COMMISSION SHALL CONSIDER: (I) S. 2608 22 A. 3008 1 THE SERIOUSNESS OF THE VIOLATION FOR WHICH A PENALTY IS SOUGHT; (II) THE 2 NATURE AND EXTENT OF ANY PREVIOUS VIOLATIONS FOR WHICH PENALTIES HAVE 3 BEEN ASSESSED AGAINST THE PUBLIC UTILITY COMPANY, CORPORATION OR PERSON; 4 (III) THE GROSS REVENUES AND FINANCIAL STATUS OF THE PUBLIC UTILITY 5 COMPANY, CORPORATION OR PERSON; AND (IV) SUCH OTHER FACTORS AS THE 6 COMMISSION MAY DEEM APPROPRIATE AND RELEVANT. THE REMEDIES PROVIDED BY 7 THIS SUBDIVISION ARE IN ADDITION TO ANY OTHER REMEDIES PROVIDED IN LAW. 8 (B) WHENEVER THE COMMISSION HAS REASON TO BELIEVE THAT A PUBLIC UTILI- 9 TY COMPANY, CORPORATION OR PERSON AND SUCH OFFICERS, AGENTS AND EMPLOY- 10 EES THEREOF MAY BE SUBJECT TO IMPOSITION OF A CIVIL PENALTY AS SET FORTH 11 IN THIS SUBDIVISION, IT SHALL NOTIFY SUCH PUBLIC UTILITY COMPANY, CORPO- 12 RATION OR PERSON. SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO 13 (I) THE DATE AND A BRIEF DESCRIPTION OF THE FACTS AND NATURE OF EACH ACT 14 OR FAILURE TO ACT FOR WHICH SUCH PENALTY IS PROPOSED; (II) A LIST OF 15 EACH STATUTE, REGULATION OR ORDER THAT THE COMMISSION ALLEGES HAS BEEN 16 VIOLATED; (III) THE AMOUNT OF EACH PENALTY THAT THE COMMISSION PROPOSES 17 TO ASSESS; AND (IV) THE OPTION TO REQUEST A HEARING TO DEMONSTRATE WHY 18 THE PROPOSED PENALTY OR PENALTIES SHOULD NOT BE ASSESSED AGAINST SUCH 19 PUBLIC UTILITY COMPANY, CORPORATION, OR SUCH PERSON. 20 3. ANY PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A PROVISION 21 OF THIS CHAPTER, REGULATION OR AN ORDER ADOPTED UNDER AUTHORITY OF THIS 22 CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE, OR WHO FAILS TO PROVIDE 23 SAFE AND ADEQUATE SERVICE SHALL FORFEIT A SUM NOT EXCEEDING THE GREATER 24 OF ONE HUNDRED THOUSAND DOLLARS OR TWO ONE-HUNDREDTHS OF ONE PERCENT OF 25 THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, CONSTITUT- 26 ING A CIVIL PENALTY FOR EACH AND EVERY OFFENSE AND, IN THE CASE OF A 27 CONTINUING VIOLATION, EACH DAY SHALL BE DEEMED A SEPARATE AND DISTINCT 28 OFFENSE. 29 4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OF THIS 30 SECTION, ANY SUCH PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A 31 PROVISION OF THIS CHAPTER, OR AN ORDER OR REGULATION ADOPTED UNDER THE 32 AUTHORITY OF THIS CHAPTER SPECIFICALLY FOR THE PROTECTION OF HUMAN SAFE- 33 TY OR PREVENTION OF SIGNIFICANT DAMAGE TO REAL PROPERTY, INCLUDING, BUT 34 NOT LIMITED TO, THE COMMISSION'S CODE OF GAS SAFETY REGULATIONS SHALL, 35 IF IT IS DETERMINED BY THE COMMISSION THAT SUCH SAFETY VIOLATION CAUSED 36 OR CONSTITUTED A CONTRIBUTING FACTOR IN BRINGING ABOUT: (A) A DEATH OR 37 PERSONAL INJURY; OR (B) DAMAGE TO REAL PROPERTY IN EXCESS OF FIFTY THOU- 38 SAND DOLLARS, FORFEIT A SUM NOT TO EXCEED THE GREATER OF: 39 (I) TWO HUNDRED FIFTY THOUSAND DOLLARS OR THREE ONE-HUNDREDTHS OF ONE 40 PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, 41 WHICHEVER IS GREATER, CONSTITUTING A CIVIL PENALTY FOR EACH SEPARATE AND 42 DISTINCT OFFENSE; PROVIDED, HOWEVER, THAT FOR PURPOSES OF THIS PARA- 43 GRAPH, EACH DAY OF A CONTINUING VIOLATION SHALL NOT BE DEEMED A SEPARATE 44 AND DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTINUING VIOLATION, AS 45 WELL AS EVERY DISTINCT VIOLATION, SHALL BE SIMILARLY TREATED AS A SEPA- 46 RATE AND DISTINCT OFFENSE FOR PURPOSES OF THIS PARAGRAPH; OR 47 (II) THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE WITH SUBDIVISION 48 THREE OF THIS SECTION. 49 5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION THREE OR FOUR OF THIS 50 SECTION, A PUBLIC UTILITY COMPANY OR CORPORATION THAT VIOLATES A 51 PROVISION OF THIS CHAPTER, OR AN ORDER OR REGULATION ADOPTED UNDER 52 AUTHORITY OF THIS CHAPTER, DESIGNED TO PROTECT THE OVERALL RELIABILITY 53 AND CONTINUITY OF ELECTRIC SERVICE, INCLUDING BUT NOT LIMITED TO THE 54 RESTORATION OF ELECTRIC SERVICE FOLLOWING A MAJOR OUTAGE EVENT OR EMER- 55 GENCY, SHALL FORFEIT A SUM NOT TO EXCEED THE GREATER OF: S. 2608 23 A. 3008 1 (A) FIVE HUNDRED THOUSAND DOLLARS OR FOUR ONE-HUNDREDTHS OF ONE 2 PERCENT OF THE ANNUAL INTRASTATE GROSS OPERATING REVENUE OF THE UTILITY, 3 WHICHEVER IS GREATER, CONSTITUTING A CIVIL PENALTY FOR EACH SEPARATE AND 4 DISTINCT OFFENSE; PROVIDED, HOWEVER, THAT FOR PURPOSES OF THIS PARAGRAPH 5 EACH DAY OF A CONTINUING VIOLATION SHALL NOT BE DEEMED A SEPARATE AND 6 DISTINCT OFFENSE. THE TOTAL PERIOD OF A CONTINUING VIOLATION, AS WELL AS 7 EVERY DISTINCT VIOLATION SHALL BE SIMILARLY TREATED AS A SEPARATE AND 8 DISTINCT OFFENSE FOR PURPOSES OF THIS PARAGRAPH; OR 9 (B) THE MAXIMUM FORFEITURE DETERMINED IN ACCORDANCE WITH SUBDIVISION 10 THREE OF THIS SECTION. 11 6. ANY OFFICER, AGENT, OR EMPLOYEE OF ANY CORPORATION DETERMINED BY 12 THE COMMISSION TO HAVE VIOLATED THE PROVISIONS OF SUBDIVISION THREE, 13 FOUR, OR FIVE OF THIS SECTION, AND WHO KNOWINGLY VIOLATES A PROVISION OF 14 THIS CHAPTER, REGULATION OR AN ORDER ADOPTED UNDER AUTHORITY OF THIS 15 CHAPTER SO LONG AS THE SAME SHALL BE IN FORCE, INCLUDING A FAILURE TO 16 PROVIDE SAFE AND ADEQUATE SERVICE, SHALL FORFEIT A SUM NOT TO EXCEED ONE 17 HUNDRED THOUSAND DOLLARS CONSTITUTING A CIVIL PENALTY FOR EACH AND EVERY 18 OFFENSE AND, IN THE CASE OF A CONTINUING VIOLATION, EACH DAY SHALL BE 19 DEEMED A SEPARATE AND DISTINCT OFFENSE. 20 7. ANY SUCH ASSESSMENT MAY BE COMPROMISED OR DISCONTINUED BY THE 21 COMMISSION. ALL MONEYS RECOVERED PURSUANT TO THIS SECTION, TOGETHER WITH 22 THE COSTS THEREOF, SHALL BE REMITTED TO, OR FOR THE BENEFIT OF, THE 23 RATEPAYERS IN A MANNER TO BE DETERMINED BY THE COMMISSION. 24 8. UPON A FAILURE BY A PUBLIC UTILITY COMPANY, CORPORATION, OR PERSON 25 TO REMIT ANY PENALTY ASSESSED BY THE COMMISSION PURSUANT TO THIS 26 SECTION, THE COMMISSION, THROUGH ITS COUNSEL, MAY INSTITUTE AN ACTION OR 27 SPECIAL PROCEEDING TO COLLECT THE PENALTY IN A COURT OF COMPETENT JURIS- 28 DICTION. 29 9. ANY PAYMENT MADE BY A PUBLIC UTILITY COMPANY, CORPORATION OR PERSON 30 AND THE OFFICERS, AGENTS AND EMPLOYEES THEREOF AS A RESULT OF AN ASSESS- 31 MENT AS PROVIDED IN THIS SECTION, AND THE COST OF LITIGATION AND INVES- 32 TIGATION RELATED TO ANY SUCH ASSESSMENT, SHALL NOT BE RECOVERABLE FROM 33 RATEPAYERS. 34 10. IN CONSTRUING AND ENFORCING THE PROVISIONS OF THIS CHAPTER RELAT- 35 ING TO PENALTIES, THE ACT OF ANY DIRECTOR, OFFICER, AGENT OR EMPLOYEE OF 36 A PUBLIC UTILITY COMPANY, CORPORATION OR PERSON ACTING WITHIN THE SCOPE 37 OF HIS OR HER OFFICIAL DUTIES OR EMPLOYMENT SHALL BE DEEMED TO BE THE 38 ACT OF SUCH PUBLIC UTILITY COMPANY OR CORPORATION. 39 S 2. Section 26 of the public service law is renumbered section 25. 40 S 3. Section 65 of the public service law is amended by adding two new 41 subdivisions 14 and 15 to read as follows: 42 14. IN CONJUNCTION WITH A MANAGEMENT AND OPERATIONS AUDIT UNDERTAKEN 43 PURSUANT TO SUBDIVISION NINETEEN OF SECTION SIXTY-SIX OF THIS ARTICLE OR 44 UPON ITS OWN MOTION, THE COMMISSION SHALL REVIEW THE CAPABILITY, INCLUD- 45 ING BUT NOT LIMITED TO, THE CAPABILITY TO IMPLEMENT EMERGENCY RESPONSE 46 PLANS AND RESTORATION, OF EACH GAS CORPORATION AND ELECTRIC CORPORATION 47 TO PROVIDE SAFE, ADEQUATE, AND RELIABLE SERVICE. UPON GOOD CAUSE SHOWN, 48 THE COMMISSION MAY DIRECT SUCH CORPORATION TO COMPLY WITH ADDITIONAL AND 49 MORE STRINGENT TERMS AND CONDITIONS OF SERVICE THAN EXISTED PRIOR TO THE 50 COMMENCEMENT OF THE MANAGEMENT AND OPERATIONS AUDIT, OR CAUSE SUCH 51 CORPORATION TO DIVEST SOME OR ALL OF ITS STATE-BASED UTILITY ASSETS, 52 INCLUDING FRANCHISE TERRITORIES, BASED UPON STANDARDS AND PROCEDURES 53 ESTABLISHED BY THE COMMISSION TO ENSURE CONTINUITY OF SAFE AND ADEQUATE 54 SERVICE, DUE PROCESS, AND FAIR AND JUST COMPENSATION; PROVIDED, HOWEVER, 55 THAT NOTHING IN THIS SUBDIVISION LIMITS THE COMMISSION'S AUTHORITY TO 56 UNDERTAKE THE ACTIONS SET FORTH PURSUANT TO SECTIONS TWENTY-FOUR AND S. 2608 24 A. 3008 1 TWENTY-FIVE OF THIS CHAPTER. IN THE CASE WHERE THE COMMISSION DIRECTS A 2 FULL OR PARTIAL DIVESTMENT OF A CORPORATION'S ASSETS, THE COMMISSION 3 SHALL FIRST PROCEED IN SUCH MANNER AS TO FACILITATE THE VOLUNTARY TRANS- 4 FER OF SUCH ASSETS. 5 15. THE CHIEF EXECUTIVE OFFICER OF EACH GAS CORPORATION AND ELECTRIC 6 CORPORATION SHALL CERTIFY TO THE COMMISSION ON OR BEFORE MARCH FIFTEENTH 7 OF EACH YEAR THAT SUCH CORPORATION IS IN COMPLIANCE WITH THE REQUIRE- 8 MENTS OF THIS CHAPTER AND ANY RULES, REGULATIONS, ORDERS AND PROCEDURES 9 ADOPTED THERETO, INCLUDING THE OBLIGATION THAT SUCH CORPORATION PROVIDE 10 SAFE AND ADEQUATE SERVICE. 11 S 4. Subdivisions 19 and 21 of section 66 of the public service law, 12 subdivision 19 as added by chapter 556 of the laws of 1976 and the clos- 13 ing paragraph as added by chapter 586 of the laws of 1986 and subdivi- 14 sion 21 as added by chapter 718 of the laws of 1980, are amended and a 15 new subdivision 1-a is added to read as follows: 16 1-A. REVIEW THE ANNUAL CAPITAL EXPENDITURE OF EACH GAS OR ELECTRIC 17 CORPORATION AND MAY ORDER SUCH IMPROVEMENT IN THE MANUFACTURE, CONVEY- 18 ING, TRANSPORTATION, DISTRIBUTION OR SUPPLY OF GAS, IN THE MANUFACTURE, 19 TRANSMISSION OR SUPPLY OF ELECTRICITY, OR IN THE METHODS EMPLOYED BY 20 SUCH CORPORATION AS IN THE COMMISSION'S JUDGMENT IS ADEQUATE, JUST AND 21 REASONABLE. 22 19. (A) The commission shall have power to provide for management and 23 operations audits of gas corporations and electric corporations. Such 24 audits shall be performed at least once every five years for combination 25 gas and electric companies, as well as for straight gas corporations 26 having annual gross revenues in excess of two hundred million dollars. 27 The audit shall include, but not be limited to, an investigation of the 28 company's construction program planning in relation to the needs of its 29 customers for reliable service [and], an evaluation of the efficiency of 30 the company's operations, RECOMMENDATIONS WITH RESPECT TO SAME, AND THE 31 TIMING WITH RESPECT TO THE IMPLEMENTATION OF SUCH RECOMMENDATIONS. The 32 commission shall have discretion to have such audits performed by its 33 staff, or by independent auditors. 34 In every case in which the commission chooses to have the audit 35 provided for in this subdivision OR PURSUANT TO SUBDIVISION FOURTEEN OF 36 SECTION SIXTY-FIVE OF THIS ARTICLE performed by independent auditors, it 37 shall have authority to select the auditors, and to require the company 38 being audited to enter into a contract with the auditors providing for 39 their payment by the company. Such contract shall provide further that 40 the auditors shall work for and under the direction of the commission 41 according to such terms as the commission may determine are necessary 42 and reasonable. 43 [The commission shall have authority to direct the company to imple- 44 ment any recommendations resulting from such audits that it finds to be 45 necessary and reasonable.] 46 (B) EACH GAS AND ELECTRIC CORPORATION SUBJECT TO AN AUDIT UNDER THIS 47 SUBDIVISION SHALL FILE A REPORT WITH THE COMMISSION WITHIN THIRTY DAYS 48 AFTER ISSUANCE OF SUCH AUDIT DETAILING ITS PLAN TO IMPLEMENT THE RECOM- 49 MENDATIONS MADE IN THE AUDIT. AFTER REVIEW OF SUCH PLAN, THE COMMISSION 50 MAY REQUIRE THAT SUCH CORPORATION AMEND THE PLAN IN A PARTICULAR MANNER. 51 SUCH PLAN SHALL THEREAFTER BECOME ENFORCEABLE UPON APPROVAL BY THE 52 COMMISSION. THE COMMISSION SHALL HAVE POWER TO COMMENCE A PROCEEDING TO 53 EXAMINE ANY SUCH CORPORATION'S COMPLIANCE WITH THE RECOMMENDATIONS OF 54 SUCH AUDIT. 55 (C) Upon the application of a gas or electric corporation for a major 56 change in rates as defined in subdivision twelve of this section, the S. 2608 25 A. 3008 1 commission shall review that corporation's compliance with the 2 directions and recommendations made previously by the commission, as a 3 result of the most recently completed management and operations audit. 4 The commission shall incorporate the findings of such review in its 5 opinion or order, AND SUCH FINDINGS SHALL BE ENFORCEABLE BY THE COMMIS- 6 SION. 7 21. [The commission shall require every electric corporation to submit 8 storm plans to the commission for review and approval at such times and 9 in such detail and form as the commission shall require, provided, 10 however, that the same shall be filed at least annually.] (A) EACH ELEC- 11 TRIC CORPORATION SHALL ANNUALLY, ON OR BEFORE DECEMBER FIFTEENTH, SUBMIT 12 TO THE COMMISSION AN EMERGENCY RESPONSE PLAN FOR REVIEW AND APPROVAL. 13 THE EMERGENCY RESPONSE PLAN SHALL BE DESIGNED FOR THE REASONABLY PROMPT 14 RESTORATION OF SERVICE IN THE CASE OF AN EMERGENCY EVENT, DEFINED FOR 15 PURPOSES OF THIS SUBDIVISION AS AN EVENT WHERE WIDESPREAD OUTAGES HAVE 16 OCCURRED IN THE SERVICE TERRITORY OF THE COMPANY DUE TO STORMS OR OTHER 17 CAUSES BEYOND THE CONTROL OF THE COMPANY. THE EMERGENCY RESPONSE PLAN 18 SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING: (I) THE IDEN- 19 TIFICATION OF MANAGEMENT STAFF RESPONSIBLE FOR COMPANY OPERATIONS DURING 20 AN EMERGENCY; (II) A COMMUNICATIONS SYSTEM WITH CUSTOMERS DURING AN 21 EMERGENCY THAT EXTENDS BEYOND NORMAL BUSINESS HOURS AND BUSINESS CONDI- 22 TIONS; (III) IDENTIFICATION OF AND OUTREACH PLANS TO CUSTOMERS WHO HAD 23 DOCUMENTED THEIR NEED FOR ESSENTIAL ELECTRICITY FOR MEDICAL NEEDS; (IV) 24 IDENTIFICATION OF AND OUTREACH PLANS TO CUSTOMERS WHO HAD DOCUMENTED 25 THEIR NEED FOR ESSENTIAL ELECTRICITY TO PROVIDE CRITICAL TELECOMMUNI- 26 CATIONS, CRITICAL TRANSPORTATION AND CRITICAL FUEL DISTRIBUTION 27 SERVICES; (V) DESIGNATION OF COMPANY STAFF TO COMMUNICATE WITH LOCAL 28 OFFICIALS AND APPROPRIATE REGULATORY AGENCIES; (VI) PROVISIONS REGARDING 29 HOW THE COMPANY WILL ASSURE THE SAFETY OF ITS EMPLOYEES AND CONTRACTORS; 30 (VII) PROCEDURES FOR DEPLOYING COMPANY AND MUTUAL AID CREWS TO WORK 31 ASSIGNMENT AREAS; (VIII) IDENTIFICATION OF ADDITIONAL SUPPLIES AND 32 EQUIPMENT NEEDED DURING AN EMERGENCY; (IX) THE MEANS OF OBTAINING ADDI- 33 TIONAL SUPPLIES AND EQUIPMENT; (X) PROCEDURES TO PRACTICE THE EMERGENCY 34 RESPONSE PLAN; AND (XI) SUCH OTHER ADDITIONAL INFORMATION AS THE COMMIS- 35 SION MAY REQUIRE. THE FILING WITH THE COMMISSION SHALL ALSO INCLUDE A 36 COPY OF ALL WRITTEN MUTUAL ASSISTANCE AGREEMENTS AMONG UTILITIES. THE 37 COMMISSION SHALL ACCORD PROTECTED TREATMENT OF CONFIDENTIAL, COMPETI- 38 TIVELY SENSITIVE OR OTHER PROPRIETARY INFORMATION CONTAINED IN ANY EMER- 39 GENCY RESPONSE PLAN. EACH SUCH CORPORATION SHALL, ON AN ANNUAL BASIS, 40 UNDERTAKE DRILLS IMPLEMENTING PROCEDURES TO PRACTICE ITS EMERGENCY 41 MANAGEMENT PLAN. THE DEPARTMENT MAY ADOPT ADDITIONAL REQUIREMENTS 42 CONSISTENT WITH ENSURING THE REASONABLY PROMPT RESTORATION OF SERVICE IN 43 THE CASE OF AN EMERGENCY EVENT. 44 (B) AFTER REVIEW OF A CORPORATION'S EMERGENCY RESPONSE PLAN, THE 45 COMMISSION MAY REQUIRE SUCH CORPORATION TO AMEND THE PLAN. THE COMMIS- 46 SION MAY ALSO OPEN AN INVESTIGATION OF THE CORPORATION'S PLAN TO DETER- 47 MINE ITS SUFFICIENCY TO RESPOND ADEQUATELY TO AN EMERGENCY EVENT. IF, 48 AFTER HEARINGS, THE COMMISSION FINDS A MATERIAL DEFICIENCY IN THE PLAN, 49 IT MAY ORDER THE COMPANY TO MAKE SUCH MODIFICATIONS THAT IT DEEMS 50 REASONABLY NECESSARY TO REMEDY THE DEFICIENCY. 51 (C) THE COMMISSION IS AUTHORIZED TO OPEN AN INVESTIGATION TO REVIEW 52 THE PERFORMANCE OF ANY CORPORATION IN RESTORING SERVICE OR OTHERWISE 53 MEETING THE REQUIREMENTS OF THE EMERGENCY RESPONSE PLAN DURING AN EMER- 54 GENCY EVENT. IF, AFTER EVIDENTIARY HEARINGS OR OTHER INVESTIGATORY 55 PROCEEDINGS, THE COMMISSION FINDS THAT THE CORPORATION FAILED TO REASON- 56 ABLY IMPLEMENT ITS EMERGENCY RESPONSE PLAN OR THE LENGTH OF SUCH CORPO- S. 2608 26 A. 3008 1 RATION'S OUTAGES WERE MATERIALLY LONGER THAN THEY WOULD HAVE BEEN BUT 2 FOR SUCH FAILURE TO REASONABLY IMPLEMENT ITS EMERGENCY RESPONSE PLAN, 3 THE COMMISSION MAY DENY THE RECOVERY OF ALL, OR ANY PART OF, THE SERVICE 4 RESTORATION COSTS, COMMENSURATE WITH THE DEGREE AND IMPACT OF THE 5 SERVICE OUTAGE; PROVIDED, HOWEVER, THAT NOTHING HEREIN LIMITS THE 6 COMMISSION'S AUTHORITY TO OTHERWISE COMMENCE A PROCEEDING PURSUANT TO 7 SECTIONS TWENTY-FOUR AND TWENTY-FIVE OF THIS CHAPTER. 8 (D) THE COMMISSION SHALL CERTIFY TO THE DEPARTMENT OF HOMELAND SECURI- 9 TY AND EMERGENCY SERVICES THAT EACH SUCH CORPORATION'S EMERGENCY 10 RESPONSE PLAN IS SUFFICIENT TO ENSURE TO THE GREATEST EXTENT FEASIBLE 11 THE TIMELY AND SAFE RESTORATION OF ENERGY SERVICES AFTER AN EMERGENCY. 12 S 5. Section 68 of the public service law, as amended by chapter 52 of 13 the laws of 1940, is amended to read as follows: 14 S 68. [Approval of incorporation and franchises; certificate] CERTIF- 15 ICATE OF PUBLIC CONVENIENCE AND NECESSITY. 1. CERTIFICATE REQUIRED. No 16 gas corporation or electric corporation shall begin construction of a 17 gas plant or electric plant without first having obtained the permission 18 and approval of the commission. No such corporation shall exercise any 19 right or privilege under any franchise hereafter granted, or under any 20 franchise heretofore granted but not heretofore actually exercised, or 21 the exercise of which shall have been suspended for more than one year, 22 without first having obtained [the permission and approval of] A CERTIF- 23 ICATE OF PUBLIC CONVENIENCE AND NECESSITY ISSUED BY the commission. 24 Before such certificate shall be issued a certified copy of the charter 25 of such corporation shall be filed in the office of the commission, 26 together with a verified statement of the president and secretary of the 27 corporation, showing that it has received the required consent of the 28 proper municipal authorities. The commission shall have power to grant 29 the permission and approval herein specified whenever it shall after due 30 hearing determine that such construction or such exercise of the right, 31 privilege or franchise is [necessary or] convenient AND NECESSARY for 32 the public service. IN MAKING SUCH A DETERMINATION, THE COMMISSION SHALL 33 CONSIDER THE ECONOMIC FEASIBILITY OF THE CORPORATION, THE CORPORATION'S 34 ABILITY TO FINANCE IMPROVEMENTS OF A GAS PLANT OR ELECTRIC PLANT, RENDER 35 SAFE, ADEQUATE AND RELIABLE SERVICE, AND PROVIDE JUST AND REASONABLE 36 RATES, AND WHETHER ISSUANCE OF A CERTIFICATE IS IN THE PUBLIC INTEREST. 37 Except as provided in article [fourteen-a] FOURTEEN-A of the general 38 municipal law, no municipality shall build, maintain and operate for 39 other than municipal purposes any works or systems for the manufacture 40 and supplying of gas or electricity for lighting purposes without a 41 certificate of authority granted by the commission. If the certificate 42 of authority is refused, no further proceedings shall be taken by such 43 municipality before the commission, but a new application may be made 44 therefor after one year from the date of such refusal. 45 2. REVOCATION OR MODIFICATION OF CERTIFICATE. THE COMMISSION MAY 46 COMMENCE A PROCEEDING TO REVOKE OR MODIFY SUCH CERTIFICATE AS IT RELATES 47 TO SUCH CORPORATION'S SERVICE TERRITORY OR ANY PORTION THEREOF BASED ON 48 GOOD CAUSE SHOWN, WITH THE INQUIRY INFORMED BY CONSIDERATION OF THE 49 FOLLOWING FACTORS: 50 (A) THE FACTORS IDENTIFIED IN SUBDIVISION ONE OF THIS SECTION FOR 51 ISSUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY; 52 (B) WHETHER ANOTHER PERSON, FIRM OR CORPORATION IS QUALIFIED, AVAIL- 53 ABLE, AND PREPARED TO PROVIDE ALTERNATIVE SERVICE THAT IS ADEQUATE TO 54 SERVE THE PUBLIC CONVENIENCE AND NECESSITY, AND THAT THE TRANSITION TO 55 SUCH ALTERNATIVE PERSON, FIRM OR CORPORATION IS IN THE PUBLIC INTEREST; 56 AND S. 2608 27 A. 3008 1 (C) UPON ANY OTHER STANDARDS AND PROCEDURES DEEMED NECESSARY BY THE 2 COMMISSION TO ENSURE CONTINUITY OF SAFE AND ADEQUATE SERVICE, AND DUE 3 PROCESS. 4 S 6. Paragraph d of subdivision 1 of section 119-b of the public 5 service law, as amended by chapter 445 of the laws of 1995, is amended 6 to read as follows: 7 d. "Underground facilities" means pipelines, conduits, ducts, cables, 8 wires, GAS PRODUCTION AND GATHERING PIPELINE SYSTEMS DESIGNED TO OPERATE 9 AT THREE HUNDRED POUNDS PER SQUARE INCH GAUGE OR HIGHER, manholes, 10 vaults or other such facilities or their attachments[, which have been] 11 installed underground by an operator to provide services or materials. 12 Such term shall not include oil [and gas] production and gathering pipe- 13 line systems used primarily to collect oil [or gas] production from 14 wells. 15 S 7. Subdivision 4 of section 760 of the general business law, as 16 amended by chapter 685 of the laws of 1994, is amended to read as 17 follows: 18 4. "Underground facilities" means pipelines, conduits, ducts, cables, 19 wires, GAS PRODUCTION AND GATHERING PIPELINE SYSTEMS DESIGNED TO OPERATE 20 AT THREE HUNDRED POUNDS PER SQUARE INCH GAUGE OR HIGHER, manholes, 21 vaults or other such facilities or their attachments[, which have been] 22 installed underground by an operator to provide services or materials. 23 Such term shall not include oil [and gas] production and gathering pipe- 24 line systems used primarily to collect oil [or gas] production from 25 wells. 26 S 8. Paragraphs a and b of subdivision 1 of section 765 of the general 27 business law, as amended by chapter 685 of the laws of 1994, are amended 28 to read as follows: 29 a. Failure to comply with any provision of this article shall subject 30 an excavator or an operator to a civil penalty of up to [one] TWO thou- 31 sand FIVE HUNDRED dollars for the first violation and up to an addi- 32 tional [seven] TEN thousand [five hundred] dollars for each succeeding 33 violation [which] THAT occurs [in connection with the entire self-same 34 excavation or demolition activity] within a [two] TWELVE month period. 35 b. The penalties provided for by this article shall not apply to an 36 excavator who damages an underground facility due to the failure of the 37 operator to comply with any of the provisions of this article nor shall 38 in such instance the excavator be liable for repairs as prescribed in 39 subdivision [five] FOUR of this section. 40 S 9. This act shall take effect immediately. 41 PART P 42 Section 1. Section 2 of chapter 21 of the laws of 2003, amending the 43 executive law relating to permitting the secretary of state to provide 44 special handling for all documents filed or issued by the division of 45 corporations and to permit additional levels of such expedited service, 46 as amended by section 1 of part L of chapter 60 of the laws of 2011, is 47 amended to read as follows: 48 S 2. This act shall take effect immediately, provided however, that 49 section one of this act shall be deemed to have been in full force and 50 effect on and after April 1, 2003 and shall expire March 31, [2013] 51 2014. 52 S 2. This act shall take effect immediately and shall be deemed to 53 have been in full force and effect on and after March 31, 2013. S. 2608 28 A. 3008 1 PART Q 2 Section 1. This act enacts into law major components of legislation 3 which are necessary to implement the state fiscal plan for the 2013-2014 4 state fiscal year. Each component is wholly contained within a Subpart 5 identified as Subparts A through F. The effective date for each partic- 6 ular provision contained within such Subpart is set forth in the last 7 section of such Subpart. Any provision in any section contained within a 8 Subpart, including the effective date of the Subpart, which makes a 9 reference to a section "of this act", when used in connection with that 10 particular component, shall be deemed to mean and refer to the corre- 11 sponding section of the Subpart in which it is found. Section three of 12 this Part sets forth the general effective date of this Part. 13 SUBPART A 14 Section 1. Section 579 of the banking law, as amended by chapter 629 15 of the laws of 2002, is amended to read as follows: 16 S 579. Doing business without license prohibited. Only a [type B] 17 not-for-profit corporation [as defined in section two hundred one of the 18 not-for-profit corporation law of this state,] or an entity incorporated 19 in another state and having a similar not-for-profit status, shall 20 engage in the business of budget planning as defined in subdivision one 21 of section four hundred fifty-five of the general business law [of this 22 state] except as authorized by this article and without first obtaining 23 a license from the superintendent. 24 S 2. The opening paragraph of paragraph 1 of section 5 of the cooper- 25 ative corporations law, as amended by chapter 158 of the laws of 1978, 26 is amended to read as follows: 27 The business corporation law applies to every corporation heretofore 28 or hereafter formed under this chapter, or under any other statute or 29 special act of this state, or under laws other than the statutes of this 30 state, [which] THAT has as its purpose or among its purposes the cooper- 31 ative rendering of mutual help and service to its members and which, if 32 formed under laws other than the statutes of this state, would, if it 33 were to be formed currently under the laws of this state, be formed 34 under this chapter except a membership cooperative as defined in section 35 three of this chapter, to which the not-for-profit corporation law shall 36 apply. Any corporation to which the business corporation law is made 37 applicable by this section shall be treated as a "corporation," "domes- 38 tic corporation," or "foreign corporation," as such terms are used in 39 the business corporation law; provided, however, that neither the 40 purposes for which any such corporation may be formed under this chapter 41 nor its classification as a non-profit corporation shall thereby be 42 extended or affected. Any corporation to which the not-for-profit corpo- 43 ration law is made applicable by this section shall be [a type D not- 44 for-profit corporation] SUBJECT TO PROVISIONS GOVERNING CORPORATIONS 45 FORMED UNDER SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED 46 ONE OF THE NOT-FOR-PROFIT CORPORATION LAW. 47 S 3. Subdivision 4 of section 455 of the general business law, as 48 amended by chapter 456 of the laws of 2006, is amended to read as 49 follows: 50 4. Person or entity as used in this article shall not include a [type 51 B] not-for-profit corporation as defined in section two hundred one of 52 the not-for-profit corporation law of this state, or an entity incorpo- 53 rated in another state and having a similar not-for-profit status, S. 2608 29 A. 3008 1 licensed by the superintendent OF FINANCIAL SERVICES, to engage in the 2 business of budget planning as defined in this section. 3 S 4. Paragraphs (a) and (c) of section 103 of the not-for-profit 4 corporation law, paragraph (a) as amended by chapter 807 of the laws of 5 1973 and paragraph (c) as amended by chapter 961 of the laws of 1972, 6 are amended to read as follows: 7 (a) Except as otherwise provided in this section, this chapter 8 applies to every domestic corporation as herein defined, and to every 9 foreign corporation as herein defined which is authorized to conduct or 10 which conducts any activities in this state. This chapter also applies 11 to any other domestic corporation or foreign corporation of any type or 12 kind to the extent, if any, provided under this chapter or any law 13 governing such corporation and, if no such provision for application is 14 made, to the extent, if any, that the membership corporations law 15 applied to such corporation as of the effective date of this chapter. A 16 corporation formed by a special act of this state which has as its prin- 17 cipal purpose an education purpose and which is a member of the univer- 18 sity of the state of New York, is an "education corporation" under 19 section two hundred sixteen-a of the education law. 20 To the extent that the membership corporations law or the general 21 corporation law applied to it as of the effective date of this chapter, 22 the corresponding provisions of this chapter apply to a corporation 23 heretofore formed by or pursuant to a special act of this state other 24 than a religious corporation or an "education corporation" under clause 25 (b) of subdivision one of section two hundred sixteen-a of the education 26 law, if (1) its principal purpose is a religious, charitable or educa- 27 tion purpose, and (2) it is operated, supervised or controlled by or in 28 connection with a religious organization. Any such corporation may 29 elect hereunder at any time after the effective date of this chapter to 30 file a RESTATED certificate of [type] INCORPORATION under section [one] 31 EIGHT hundred [thirteen (Certificate of type of not-for-profit corpo- 32 ration)] FIVE (RESTATED CERTIFICATE OF INCORPORATION). SUCH RESTATED 33 CERTIFICATE OF INCORPORATION SHALL MEET THE REQUIREMENTS OF SECTION 402 34 (CERTIFICATE OF INCORPORATION; CONTENTS). Upon the filing of such 35 certificate by the department of state, this chapter shall apply in all 36 respects to such corporation. 37 This chapter also applies to any other corporation of any type or 38 kind, formed not for profit under any other chapter of the laws of this 39 state except a chapter of the consolidated laws, to the extent that 40 provisions of this chapter do not conflict with the provisions of such 41 unconsolidated law. If an applicable provision of such unconsolidated 42 law relates to a matter embraced in this chapter but is not in conflict 43 therewith, both provisions shall apply. Any corporation to which this 44 chapter is made applicable by this paragraph shall be treated as a 45 "corporation" or "domestic corporation" as such terms are used in this 46 chapter, except that the purposes of any such corporation formed or 47 formable under such unconsolidated law shall not thereby be extended. 48 For the purpose of this paragraph, the effective date of this chapter as 49 to corporations to which this chapter is made applicable by this para- 50 graph shall be September one, nineteen hundred seventy-three. 51 (c) If any provision in articles one to thirteen inclusive of this 52 chapter conflicts with a provision of any subsequent articles or of any 53 special act under which a corporation to which this chapter applies is 54 formed, the provision in such subsequent article or special act 55 prevails. A provision of any such subsequent article or special act 56 relating to a matter referred to in articles one to thirteen inclusive S. 2608 30 A. 3008 1 and not in conflict therewith is supplemental and both shall apply. 2 Whenever the board of a [Type B] corporation FORMED FOR THE PURPOSES 3 SPECIFIED IN SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION TWO HUNDRED 4 ONE OF THIS CHAPTER, formed under a special act, reasonably makes an 5 interpretation as to whether a provision of the special act or this 6 chapter prevails, or both apply, such interpretation shall govern unless 7 and until a court determines otherwise, if such board has acted in good 8 faith for a purpose which it reasonably believes to be in the best 9 interests of the corporation, provided however, that such interpretation 10 shall not bind any governmental body or officer. 11 S 5. Paragraph (e) of section 104 of the not-for-profit corporation 12 law, as amended by chapter 833 of the laws of 1982, is amended to read 13 as follows: 14 (e) If an instrument which is delivered to the department of state 15 for filing complies as to form with the requirements of law [and there 16 has been attached to it the consent or approval of the supreme court 17 justice, governmental body or officer, or, other person or body, if any, 18 whose consent to or approval of such instrument or the filing thereof is 19 required by any statute of this state] and the filing fee and tax, if 20 any, required by any statute of this state in connection therewith have 21 been paid, the instrument shall be filed and indexed by the department 22 of state. No certificate of authentication or conformity or other proof 23 shall be required with respect to any verification, oath or acknowledg- 24 ment of any instrument delivered to the department of state under this 25 chapter, if such verification, oath or acknowledgment purports to have 26 been made before a notary public, or person performing the equivalent 27 function, of one of the states, or any subdivision thereof, of the 28 United States or the District of Columbia. Without limiting the effect 29 of section four hundred three of this chapter, filing and indexing by 30 the department of state shall not be deemed a finding that a certificate 31 conforms to law, nor shall it be deemed to constitute an approval by the 32 department of state of the name of the corporation or the contents of 33 the certificate, nor shall it be deemed to prevent any person with 34 appropriate standing from contesting the legality thereof in an appro- 35 priate forum. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF STATE 36 BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A 37 DOMESTIC CORPORATION OR FOREIGN AUTHORIZED CORPORATION HAS FAILED TO 38 OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, 39 BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE 40 CORPORATION'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT ACTIVITIES IN 41 THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON 42 THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR 43 APPROVAL ANNEXED THERETO. 44 S 6. Subparagraph 7 of paragraph (a) of section 112 of the not-for- 45 profit corporation law, as amended by chapter 1058 of the laws of 1971, 46 is amended to read as follows: 47 (7) To enforce any right given under this chapter to members, a 48 director or an officer of a [Type B or Type C] corporation FORMED FOR 49 THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH 50 (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER. The attorney-general 51 shall have the same status as such members, director or officer. 52 S 7. Section 113 of the not-for-profit corporation law is REPEALED. 53 S 8. Section 114 of the not-for-profit corporation law, as added by 54 chapter 847 of the laws of 1970, is amended to read as follows: 55 S 114. Visitation of supreme court. S. 2608 31 A. 3008 1 [Type B and Type C corporations] CORPORATIONS FORMED FOR THE PURPOSES 2 SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION 3 TWO HUNDRED ONE OF THIS CHAPTER, whether formed under general or special 4 laws, with their books and vouchers, shall be subject to the visitation 5 and inspection of a justice of the supreme court, or of any person 6 appointed by the court for that purpose. If it appears by the verified 7 petition of a member or creditor of any such corporation, that it, or 8 its directors, officers or agents, have misappropriated any of the funds 9 or property of the corporation, or diverted them from the purpose of its 10 incorporation, or that the corporation has acquired property in excess 11 of the amount which it is authorized by law to hold, or has engaged in 12 any business other than that stated in its certificate of incorporation, 13 the court may order that notice of at least eight days, with a copy of 14 the petition, be served on the corporation and the persons charged with 15 misconduct, requiring them to show cause at a time and place specified, 16 why they should not be required to make and file an inventory and 17 account of the property, effects and liabilities of such corporation 18 with a detailed statement of its transactions during the twelve months 19 next preceding the granting of such order. On the hearing of such 20 application, the court may make an order requiring such inventory, 21 account and statement to be filed, and proceed to take and state an 22 account of the property and liabilities of the corporation, or may 23 appoint a referee for that purpose. When such account is taken and 24 stated, after hearing all the parties to the application, the court may 25 enter a final order determining the amount of property so held by the 26 corporation, its annual income, whether any of the property or funds of 27 the corporation have been misappropriated or diverted to any other 28 purpose than that for which such corporation was incorporated, and 29 whether such corporation has been engaged in any activity not covered by 30 its certificate of incorporation. An appeal may be taken from the order 31 by any party aggrieved to the appellate division of the supreme court, 32 and to the court of appeals, as in a civil action. No corporation shall 33 be required to make and file more than one inventory and account in any 34 one year, nor to make a second account and inventory, while proceedings 35 are pending for the statement of an account under this section. 36 S 9. Paragraph (b) of section 201 of the not-for-profit corporation 37 law, as amended by chapter 847 of the laws of 1970, is amended to read 38 as follows: 39 (b) A corporation, [of a type and] for a purpose or purposes as 40 follows, may be formed under this chapter, provided consents required 41 under any other statute of this state have been obtained: 42 [Type A - A not-for-profit corporation of this type may be formed] (1) 43 for any lawful non-business purpose or purposes including, but not 44 limited to, any one or more of the following non-pecuniary purposes: 45 civic, patriotic, political, social, fraternal, athletic, agricultural, 46 horticultural, animal husbandry, and for a professional, commercial, 47 industrial, trade or service association. 48 [Type B - A not-for-profit corporation of this type may be formed] (2) 49 for any one or more of the following non-business purposes: charitable, 50 educational, religious, scientific, literary, cultural or for the 51 prevention of cruelty to children or animals. 52 [Type C - A not-for-profit corporation of this type may be formed] (3) 53 for any lawful business purpose to achieve a lawful public or quasi- 54 public objective. 55 [Type D - A not-for-profit corporation of this type may be formed 56 under this chapter] (4) when such formation is authorized by any other S. 2608 32 A. 3008 1 corporate law of this state for any business or non-business, or pecuni- 2 ary or non-pecuniary, purpose or purposes specified by such other law, 3 whether such purpose or purposes are also within [types A, B, C] SUBPAR- 4 AGRAPHS ONE, TWO OR THREE above or otherwise. 5 S 10. Paragraph (c) of section 201 of the not-for-profit corporation 6 law, as amended by chapter 1058 of the laws of 1971, is amended to read 7 as follows: 8 (c) If a corporation is formed for purposes which are [within both 9 type A and type B above, it is a type B corporation] SPECIFIED IN 10 SUBPARAGRAPHS ONE AND TWO OF PARAGRAPH (B) OF THIS SECTION, ALL 11 PROVISIONS GOVERNING CORPORATIONS FORMED FOR PURPOSES SPECIFIED IN 12 SUBPARAGRAPH TWO OF PARAGRAPH (B) OF THIS SECTION SHALL APPLY TO SUCH 13 CORPORATION. [If a corporation has among its purposes any purpose which 14 is within type C, such corporation is a type C corporation.] A [type D] 15 corporation [is subject to all provisions of this chapter which are 16 applicable to a type B corporation under this chapter] FORMED PURSUANT 17 TO SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF THIS SECTION SHALL BE GOVERNED 18 BY ALL PROVISIONS GOVERNING CORPORATIONS FORMED FOR PURPOSES SPECIFIED 19 IN PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION unless provided to 20 the contrary in, and subject to the contrary provisions of, the other 21 corporate law authorizing formation under this chapter of [the type D] 22 SUCH corporation. 23 S 11. Subparagraph 3 of paragraph (a) of section 301 of the not-for- 24 profit corporation law is amended to read as follows: 25 (3) Shall not contain any word or phrase, or any abbreviation or 26 derivative thereof, the use of which is prohibited or restricted by 27 [section 404 (Approvals and consents) or] any other statute of this 28 state, [unless in the latter case the] EXCEPT IN COMPLIANCE WITH SUCH 29 restrictions [have been complied with]. 30 S 12. Subparagraphs 2 and 4 of paragraph (a) of section 402 of the 31 not-for-profit corporation law, subparagraph 2 as amended by chapter 847 32 of the laws of 1970 and subparagraph 4 as amended by chapter 679 of the 33 laws of 1985, are amended to read as follows: 34 (2) That the corporation is a corporation as defined in subparagraph 35 (a) (5) of section 102 (Definitions); the purpose or purposes for which 36 it is formed [and the type of corporation it shall be under section 201 37 (Purposes)]; and in the case of a [Type C] corporation FORMED FOR 38 PURPOSES SPECIFIED IN SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SECTION 201 39 (PURPOSES), the lawful public or quasi-public objective [which] each 40 business purpose will achieve. 41 (4) [In the case of a Type A, Type B, or Type C corporation, the] THE 42 names and addresses of the initial directors. In the case of a [Type D] 43 corporation FORMED UNDER SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF SECTION 44 201, the names and addresses of the initial directors, if any, may but 45 need not be set forth. 46 S 13. Paragraph (d) of section 502 of the not-for-profit corporation 47 law is amended to read as follows: 48 (d) A member's capital contribution shall be evidenced by a capital 49 certificate which shall be non-transferable, except that the certificate 50 of incorporation of a [Type A] corporation FORMED FOR THE PURPOSES SPEC- 51 IFIED IN SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF 52 THIS CHAPTER may provide that its capital certificates, or some of them, 53 may be transferable to other members with the consent of the corporation 54 upon specified terms and conditions. S. 2608 33 A. 3008 1 S 14. Paragraph (b) of section 503 of the not-for-profit corporation 2 law, subparagraph 1 as amended by chapter 847 of the laws of 1970, is 3 amended to read as follows: 4 (b) Each capital certificate shall when issued state upon the face 5 thereof: 6 [(1) That the corporation is a Type ..... corporation under section 7 113 or section 402 of the New York Not-for-Profit Corporation Law. 8 (2)] (1) The name of the member to whom issued. 9 [(3)] (2) The amount of the member's capital contribution evidenced by 10 such certificate. 11 [(4)] (3) If appropriate, [that the corporation is a Type A corpo- 12 ration, and] IN THE CASE OF A CORPORATION FORMED FOR THE PURPOSES OF 13 SUBPARAGRAPH (1) OF PARAGRAPH (B) OF SECTION 201 (PURPOSES), that its 14 certificate of incorporation provides that the capital certificate is 15 transferable to other members with the consent of the corporation. 16 S 15. Subparagraph 1 of paragraph (b) of section 505 of the not-for- 17 profit corporation law, as amended by chapter 847 of the laws of 1970, 18 is REPEALED, and subparagraphs 2, 3, 4, 5 and 6 are renumbered subpara- 19 graphs 1, 2, 3, 4, and 5. 20 S 16. Subparagraph 3 of paragraph (a) of section 510 of the not-for- 21 profit corporation law, as amended by chapter 847 of the laws of 1970, 22 is amended to read as follows: 23 (3) If the corporation is, or would be if formed under this chapter[, 24 classified as a Type B or Type C corporation under] FOR PURPOSES SPECI- 25 FIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF section 201, 26 (Purposes) such A sale, lease, exchange or other disposition shall in 27 addition require leave of the supreme court in the judicial district or 28 of the county court of the county in which the corporation has its 29 office or principal place of carrying out the purposes for which it was 30 formed. 31 S 17. Paragraph (a) of section 513 of the not-for-profit corporation 32 law, as amended by chapter 690 of the laws of 1978, is amended to read 33 as follows: 34 (a) [A] UNLESS OTHERWISE PROVIDED BY LAW OR IN THE CERTIFICATE OF 35 INCORPORATION, A corporation [which is, or would be if formed under this 36 chapter, classified as a Type B corporation shall] MAY hold full owner- 37 ship rights in any assets consisting of funds or other real or personal 38 property of any kind, that may be given, granted, bequeathed or devised 39 to or otherwise vested in such corporation in trust for, or with a 40 direction to apply the same to, any purpose specified in its certificate 41 of incorporation, and shall not be deemed a trustee of an express trust 42 of such assets, EXCEPT FOR CORPORATIONS FORMED FOR PURPOSES SPECIFIED IN 43 SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION 201 (PURPOSES). [Any other 44 corporation subject to this chapter may similarly hold assets so 45 received, unless otherwise provided by law or in the certificate of 46 incorporation.] 47 S 18. Paragraph (a) of section 601 of the not-for-profit corporation 48 law, as amended by chapter 1058 of the laws of 1971, is amended to read 49 as follows: 50 (a) A corporation [shall] MAY have one or more classes of members, or, 51 [in the case of a Type B corporation,] may have no members[, in which 52 case any such provision for classes of members or for no members]. A 53 CORPORATION WHICH HAS ONE OR MORE CLASSES OF MEMBERS shall [be] set 54 forth in the certificate of incorporation or the by-laws PROVISIONS FOR 55 SUCH CLASSES OF MEMBERS. Corporations, joint-stock associations, unin- S. 2608 34 A. 3008 1 corporated associations and partnerships, as well as any other person 2 without limitation, may be members. 3 S 19. Subparagraph 3 of paragraph (a) of section 803 of the not-for- 4 profit corporation law, as added by chapter 168 of the laws of 1982, is 5 amended to read as follows: 6 (3) That the corporation is a corporation as defined in subparagraph 7 (a) (5) of section 102 (Definitions)[; the type of corporation it is 8 under section 201 (Purposes); and if the corporate purposes are 9 enlarged, limited or otherwise changed, the type of corporation it shall 10 thereafter be under section 201]. 11 S 20. Subparagraph (ii) of paragraph (a) of section 804 of the not- 12 for-profit corporation law, as amended by chapter 139 of the laws of 13 1993, is amended to read as follows: 14 (ii) Every certificate of amendment of a corporation [classified as 15 type B or type C under section 201 (Purposes)] FORMED FOR THE PURPOSES 16 SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF SECTION 201 17 which seeks to change or eliminate a purpose or power enumerated in the 18 corporation's certificate of incorporation, or to add a power or purpose 19 not enumerated therein, shall have endorsed thereon or annexed thereto 20 the approval of a justice of the supreme court of the judicial district 21 in which the office of the corporation is located. Ten days' written 22 notice of the application for such approval shall be given to the attor- 23 ney-general. 24 S 21. Paragraphs (a) and (c) of section 907 of the not-for-profit 25 corporation law are amended to read as follows: 26 (a) [Where any constituent corporation or the consolidated corporation 27 is, or would be if formed under this chapter, a Type B or a Type C 28 corporation under section 201 (Purposes) of this chapter, no] NO certif- 29 icate shall be filed pursuant to section 904 (Certificate of merger or 30 consolidation; contents) or section 906 BY CORPORATIONS (Merger or 31 consolidation of domestic and foreign corporations) FORMED FOR THE 32 PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF 33 SECTION 201 until an order approving the plan of merger or consolidation 34 and authorizing the filing of the certificate has been made by the 35 supreme court, as provided in this section. A certified copy of such 36 order shall be annexed to the certificate of merger or consolidation. 37 Application for the order may be made in the judicial district in which 38 the principal office of the surviving or consolidated corporation is to 39 be located, or in which the office of one of the domestic constituent 40 corporations is located. The application shall be made by all the 41 constituent corporations jointly and shall set forth by affidavit (1) 42 the plan of merger or consolidation, (2) the approval required by 43 section 903 (Approval of plan) or paragraph (b) of section 906 (Merger 44 or consolidation of domestic and foreign corporations) for each constit- 45 uent corporation, (3) the objects and purposes of each such corporation 46 to be promoted by the consolidation, (4) a statement of all property, 47 and the manner in which it is held, and of all liabilities and of the 48 amount and sources of the annual income of each such corporation, (5) 49 whether any votes against adoption of the resolution approving the plan 50 of merger or consolidation were cast at the meeting at which the resol- 51 ution as adopted by each constituent corporation, and (6) facts showing 52 that the consolidation is authorized by the laws of the jurisdictions 53 under which each of the constituent corporations is incorporated. 54 (c) If the court shall find that any of the assets of any of the 55 constituent corporations are held for [a] ANY purpose specified [as Type 56 B] in SUBPARAGRAPH TWO OR THREE OF paragraph (b) of section 201 S. 2608 35 A. 3008 1 (PURPOSES) or are legally required to be used for a particular purpose, 2 but not upon a condition requiring return, transfer or conveyance by 3 reason of the merger or consolidation, the court may, in its discretion, 4 direct that such assets be transferred or conveyed to the surviving or 5 consolidated corporation subject to such purpose or use, or that such 6 assets be transferred or conveyed to the surviving or consolidated 7 corporation or to one or more other domestic or foreign corporations or 8 organizations engaged in substantially similar activities, upon an 9 express trust the terms of which shall be approved by the court. 10 S 22. Paragraphs (a) and (f) of section 908 of the not-for-profit 11 corporation law are amended to read as follows: 12 (a) One or more domestic or foreign corporations [which is, or would 13 be if formed under this chapter, a type A or type C corporation under 14 section 201 (Purposes)] may be merged or consolidated into a domestic or 15 foreign corporation which is, or would be if formed under the laws of 16 this state, a corporation formed under the business corporation law of 17 this state if such merger or consolidation is not contrary to the law of 18 the state of incorporation of any constituent corporation. With respect 19 to such merger or consolidation, any reference in paragraph (b) of 20 section 901 [of this article] (POWER OF MERGER OR CONSOLIDATION) or 21 paragraph (b) of section 901 of the business corporation law to a corpo- 22 ration shall, unless the context otherwise requires, include both domes- 23 tic and foreign corporations. 24 (f) [Where any constituent corporation is, or would be if formed under 25 this chapter, a Type C corporation under section 201 (Purposes), no] NO 26 certificate shall be filed pursuant to this section BY CORPORATIONS 27 FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARA- 28 GRAPH (B) OF SECTION 201 until an order approving the plan of merger or 29 consolidation and authorizing the filing of the certificate has been 30 made by the supreme court, as provided in section 907 (Approval by the 31 supreme court). 32 S 23. Paragraphs (b) and (c) and subparagraph 3 of paragraph (d) of 33 section 1001 of the not-for-profit corporation law, as amended by chap- 34 ter 434 of the laws of 2006, are amended to read as follows: 35 (b) If [the] A corporation [is a Type B, C or D corporation and] 36 FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF 37 PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER has no assets 38 to distribute and no liabilities at the time of dissolution, the plan of 39 dissolution shall include a statement to that effect. 40 (c) If [the] A corporation [is a Type B, C or D corporation and] 41 FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF 42 PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER has no assets 43 to distribute, other than a reserve not to exceed twenty-five thousand 44 dollars for the purpose of paying ordinary and necessary expenses of 45 winding up its affairs including attorney and accountant fees, and 46 liabilities not in excess of ten thousand dollars at the time of 47 adoption of the plan of dissolution, the plan of dissolution shall 48 include a statement to that effect. 49 (3) if there are assets received and held by the corporation [either] 50 for a purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF 51 paragraph (b) of section 201 (Purposes) or [which] THAT are legally 52 required to be used for a particular purpose, a statement that the 53 assets owned by the corporation, subject to any unpaid liabilities of 54 the corporation, shall be distributed as required by any gift instrument 55 or to a charitable organization or organizations exempt from taxation 56 pursuant to federal and state laws and engaged in activities substan- S. 2608 36 A. 3008 1 tially similar to those of the dissolved corporation. Each such recipi- 2 ent organization shall be identified and the governing instrument and 3 amendments thereto of each of the proposed recipient organizations shall 4 be annexed to such statement, along with the financial reports of each 5 recipient organization for the last three years and a sworn affidavit 6 from a director and officer of each recipient organization stating the 7 purposes of the organization, and that it is currently exempt from 8 federal income taxation. 9 S 24. Paragraphs (a) and (d) of section 1002 of the not-for-profit 10 corporation law, as amended by chapter 434 of the laws of 2006, are 11 amended to read as follows: 12 (a) Upon adopting a plan of dissolution and distribution of assets, 13 the board shall submit it to a vote of the members, if any, and such 14 plan shall be approved at a meeting of members by two-thirds vote as 15 provided in paragraph (c) of section 613 (Vote of members); provided, 16 however, that if the corporation is [a Type B, C or D corporation] 17 FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF 18 PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, other than a 19 corporation incorporated pursuant to article 15 (Public cemetery corpo- 20 rations), [and] has no assets to distribute, other than a reserve not to 21 exceed twenty-five thousand dollars for the purpose of paying ordinary 22 and necessary expenses of winding up its affairs including attorney and 23 accountant fees, and liabilities not in excess of ten thousand dollars 24 at the time of adoption of the plan of dissolution, the vote required by 25 the corporation's board of directors for adoption of the plan of dissol- 26 ution of such a corporation or by the corporation's members for the 27 authorization thereof shall be: 28 (1) In the case of a vote by the board of directors: (i) the number of 29 directors required under the certificate of incorporation, by-laws, this 30 chapter and any other applicable law; or 31 (ii) if the number of directors actually holding office as such at the 32 time of the vote to adopt the plan is less than the number required to 33 constitute a quorum of directors under the certificate of incorporation, 34 the by-laws, this chapter or any other applicable law, the remaining 35 directors unanimously; 36 (2) In the case of a vote by the members, (i) the number of members 37 required under the certificate of incorporation, by-laws, this chapter 38 and any other applicable law; or (ii) by the vote of members authorized 39 by an order of the supreme court pursuant to section 608 [of this chap- 40 ter] (QUORUM AT MEETING OF MEMBERS) permitting the corporation to 41 dispense with the applicable quorum requirement. 42 Notice of a special or regular meeting of the board of directors or of 43 the members entitled to vote on adoption and authorization or approval 44 of the plan of dissolution shall be sent to all the directors and 45 members of record entitled to vote. Unless otherwise directed by order 46 of the supreme court pursuant to section 608 [of this chapter] (QUORUM 47 AT MEETING OF MEMBERS), the notice shall be sent by certified mail, 48 return receipt requested, to the last known address of record of each 49 director and member not fewer than thirty, and not more than sixty days 50 before the date of each meeting provided, however, that if the last 51 known address of record of any director or member is not within the 52 United States, the notice to such director shall be sent by any other 53 reasonable means. 54 (d) The plan of dissolution and distribution of assets shall have 55 annexed thereto the approval of a justice of the supreme court in the 56 judicial district in which the office of the corporation is located in S. 2608 37 A. 3008 1 the case of a [Type B, C or D]corporation FORMED FOR THE PURPOSES SPECI- 2 FIED IN SUBPARAGRAPH TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO 3 HUNDRED ONE OF THIS CHAPTER, and in the case of any other corporation 4 which holds assets at the time of dissolution legally required to be 5 used for a particular purpose, except that no such approval shall be 6 required with respect to the plan of dissolution of a corporation, other 7 than a corporation incorporated pursuant to article 15 (Public cemetery 8 corporations), which has no assets to distribute at the time of dissol- 9 ution, other than a reserve not to exceed twenty-five thousand dollars 10 for the purpose of paying ordinary and necessary expenses of winding up 11 its affairs including attorney and accountant fees, and liabilities not 12 in excess of ten thousand dollars, and which has complied with the 13 requirements of section 1001 (Plan of dissolution and distribution of 14 assets) and this section applicable to such a corporation. Application 15 to the supreme court for an order for such approval shall be by verified 16 petition, with the plan of dissolution and distribution of assets and 17 certified copies of the consents prescribed by this section annexed 18 thereto, and upon ten days written notice to the attorney general accom- 19 panied by copies of such petition, plan and consents. In such case where 20 approval of a justice of the supreme court is not required for a [Type 21 B, C or D] corporation FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH 22 TWO, THREE OR FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS 23 CHAPTER, a copy of such plan certified under penalties of perjury shall 24 be filed with the attorney general within ten days after its authori- 25 zation. 26 S 25. Subparagraph 1 of paragraph (c) of section 1002-a of the not- 27 for-profit corporation law, as amended by chapter 434 of the laws of 28 2006, is amended to read as follows: 29 (1) assets received and held by the corporation [either] for a purpose 30 specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF paragraph (b) of 31 section 201 (Purposes) or which are legally required to be used for a 32 particular purpose, shall be distributed to one or more domestic or 33 foreign corporations or other organizations engaged in activities 34 substantially similar to those of the dissolved corporation pursuant to 35 the plan of dissolution and distribution or, if applicable, as ordered 36 by the court to which such plan is submitted for approval under section 37 1002 (Authorization of plan). Any disposition of assets contained in a 38 will or other instrument, in trust or otherwise, made before or after 39 the dissolution, to or for the benefit of any corporation so dissolved 40 shall inure to or for the benefit of the corporation or organization 41 acquiring such assets of the dissolved corporation as provided in this 42 section, and so far as is necessary for that purpose the corporation or 43 organization acquiring such disposition shall be deemed a successor to 44 the dissolved corporation with respect to such assets; provided, howev- 45 er, that such disposition shall be devoted by the acquiring corporation 46 or organization to the purposes intended by the testator, donor or gran- 47 tor. 48 S 26. Subparagraph 4 of paragraph (a) of section 1003 of the not-for- 49 profit corporation law is REPEALED and subparagraphs 5, 6, 7 and 8 are 50 renumbered subparagraphs 4, 5, 6 and 7. 51 S 27. Subparagraph 2 of paragraph (b) of section 1003 of the not-for- 52 profit corporation law, as amended by chapter 434 of the laws of 2006, 53 is amended to read as follows: 54 (2) By the attorney general in the case of a [Type B, C or D] corpo- 55 ration FORMED FOR THE PURPOSES SPECIFIED IN SUBPARAGRAPH TWO, THREE OR 56 FOUR OF PARAGRAPH (B) OF SECTION TWO HUNDRED ONE OF THIS CHAPTER, or any S. 2608 38 A. 3008 1 other corporation that holds assets at the time of dissolution legally 2 required to be used for a particular purpose. 3 S 28. Subparagraph 15 of paragraph (a) of section 1008 of the not-for- 4 profit corporation law, as amended by chapter 434 of the laws of 2006, 5 is amended to read as follows: 6 (15) Where assets were received and held by the corporation either for 7 a purpose specified [as Type B] in SUBPARAGRAPH TWO OR THREE OF para- 8 graph (b) of section 201 (Purposes), or were legally required to be used 9 for a particular purpose, the distribution of such assets to one or more 10 domestic or foreign corporations or other organizations engaged in 11 activities substantially similar to those of the dissolved corporation, 12 on notice to the attorney general and to such other persons, and in such 13 manner, as the court may deem proper. 14 S 29. Subparagraph 6 of paragraph (a) of section 1012 of the not-for- 15 profit corporation law is REPEALED. 16 S 30. Section 1302 of the not-for-profit corporation law, as amended 17 by chapter 847 of the laws of 1970, is amended to read as follows: 18 S 1302. Application to existing authorized foreign corporations. 19 Every foreign corporation which on the effective date of this chapter 20 is authorized to conduct activities in this state under a certificate of 21 authority heretofore issued to it by the secretary of state shall 22 continue to have such authority. Such foreign corporation, its members, 23 directors, and officers shall have the same rights, franchises, and 24 privileges and shall be subject to the same limitations, restrictions, 25 liabilities, and penalties as a foreign corporation authorized under 26 this chapter, its members, directors, and officers respectively. A 27 foreign corporation [may by amendment to its certificate of authority 28 set forth the type of corporation it is under section 201 (Purposes); 29 and in the absence of such amendment an authorized foreign corporation 30 shall be a Type B corporation] SHALL BE SUBJECT TO PROVISIONS GOVERNING 31 CORPORATIONS FORMED UNDER SUBPARAGRAPH TWO OF PARAGRAPH (B) OF SECTION 32 201, UNLESS OTHERWISE REQUIRED BY LAW. Reference in this chapter to an 33 application for authority shall, unless the context otherwise requires, 34 include the statement and designation and any amendment thereof required 35 to be filed by the secretary of state under prior statutes to obtain a 36 certificate of authority. 37 S 31. Subparagraph 4 of paragraph (a) of section 1304 of the not-for- 38 profit corporation law, as amended by chapter 847 of the laws of 1970 39 and as renumbered by chapter 590 of the laws of 1982, is amended to read 40 as follows: 41 (4) That the corporation is a foreign corporation as defined in 42 subparagraph (a) (7) of section 102 (Definitions); [the type of corpo- 43 ration it shall be under section 201 (Purposes);] a statement of its 44 purposes to be pursued in this state and of the activities which it 45 proposes to conduct in this state; a statement that it is authorized to 46 conduct those activities in the jurisdiction of its incorporation; and 47 in the case of a [Type C] corporation FORMED FOR THE PURPOSES SPECIFIED 48 IN SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SECTION 201, the lawful public 49 or quasi-public objective which each business purpose will achieve. 50 S 32. Paragraph (a) of section 1321 of the not-for-profit corporation 51 law, subparagraphs 1, 2 and 3 as amended by chapter 847 of the laws of 52 1970, are amended to read as follows: 53 (a) Notwithstanding any other provision of this chapter, a foreign 54 corporation conducting activities in this state which is authorized 55 under this article, its directors, officers and members, shall be exempt 56 from the provisions of paragraph (e) of section 1317 (Voting trust S. 2608 39 A. 3008 1 records), subparagraph (a) (1) of section 1318 (Liabilities of directors 2 and officers of foreign corporations), and subparagraph (a) (2) of 3 section 1320 (Applicability of other provisions) if when such provision 4 would otherwise apply[: 5 (1) The corporation is a Type A corporation under this chapter; its] 6 THE CORPORATION'S principal activities are conducted outside this state; 7 the greater part of its property is located outside this state; and (1) 8 less than one third of its members are residents of this state; or 9 (2) [The corporation is a Type B corporation under this chapter; its 10 principal activities are conducted outside this state; the greater part 11 of its property is located outside this state; and] less than ten per 12 cent of its annual revenues is derived from solicitation of funds within 13 this state; or 14 (3) [The corporation is a Type C corporation under this chapter; its 15 principal activities are conducted outside this state; the greater part 16 of its property is located outside this state; and] less than one half 17 of its revenues for the preceding three fiscal years, or such portion 18 thereof as the foreign corporation was in existence, was derived from 19 sources within this state. 20 S 33. Paragraph (d) of section 1401 of the not-for-profit corporation 21 law is REPEALED and paragraph (e) is relettered paragraph (d). 22 S 34. Paragraph (b) of section 1402 of the not-for-profit corporation 23 law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h) and (i) are 24 relettered paragraphs (b), (c), (d), (e), (f), (g) and (h). 25 S 35. Paragraph (c) of section 1403 of the not-for-profit corporation 26 law is REPEALED. 27 S 36. Paragraph (b) of section 1404 of the not-for-profit corporation 28 law is REPEALED and paragraphs (c), (d) and (e) are relettered para- 29 graphs (b), (c) and (d). 30 S 37. Paragraph (b) of section 1405 of the not-for-profit corporation 31 law is REPEALED and paragraphs (c), (d), (e) and (f) are relettered 32 paragraphs (b), (c) (d) and (e). 33 S 38. Paragraph (b) of section 1406 of the not-for-profit corporation 34 law is REPEALED and paragraphs (c), (d), (e) and (f) are relettered 35 paragraphs (b), (c), (d) and (e). 36 S 39. Paragraph (b) of section 1407 of the not-for-profit corporation 37 law is REPEALED and paragraphs (c) and (d) are relettered paragraphs (b) 38 and (c). 39 S 40. Paragraph (b) of section 1408 of the not-for-profit corporation 40 law is REPEALED and paragraph (c) is relettered paragraph (b). 41 S 41. Paragraph (b) of section 1409 of the not-for-profit corporation 42 law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h), (i), (j) 43 and (k) are relettered paragraphs (b), (c), (d), (e), (f), (g), (h), (i) 44 and (j). 45 S 42. Paragraph (b) of section 1410 of the not-for-profit corporation 46 law is REPEALED and paragraph (c) is relettered paragraph (b). 47 S 43. Paragraph (b) of section 1411 of the not-for-profit corporation 48 law is REPEALED and paragraphs (c), (d), (e), (f), (g), (h) and (i) are 49 relettered paragraphs (b), (c), (d), (e), (f), (g) and (h). 50 S 44. Paragraph (d) of section 1412 of the not-for-profit corporation 51 law is REPEALED and paragraphs (e), (f) and (g) are relettered para- 52 graphs (d), (e) and (f), respectively. 53 S 45. Paragraph (c) of section 1505 of the not-for-profit corporation 54 law is REPEALED and paragraph (d) is relettered paragraph (c). S. 2608 40 A. 3008 1 S 46. Subdivision 2 of section 2-b of the religious corporations law 2 is REPEALED and subdivisions 3 and 4 are renumbered subdivisions 2 and 3 3. 4 S 47. This act shall take effect on the sixtieth day after it shall 5 have become a law. 6 SUBPART B 7 Section 1. Paragraph (e) of section 104 of the business corporation 8 law, as amended by chapter 832 of the laws of 1982, is amended to read 9 as follows: 10 (e) If an instrument which is delivered to the department of state for 11 filing complies as to form with the requirements of law and WHERE 12 REQUIRED BY STATUTE there has been attached to it the consent or 13 approval of the state official, [department, board,] agency or other 14 body, if any, whose consent to or approval of such instrument or the 15 filing thereof is required by any statute of this state and the filing 16 fee and tax, if any, required by any statute of this state in connection 17 therewith have been paid, the instrument shall be filed and indexed by 18 the department of state. No certificate of authentication or conformity 19 or other proof shall be required with respect to any verification, oath 20 or acknowledgment of any instrument delivered to the department of state 21 under this chapter, if such verification, oath or acknowledgment 22 purports to have been made before a notary public, or person performing 23 the equivalent function, of one of the states, or any subdivision there- 24 of, of the United States or the District of Columbia. Without limiting 25 the effect of section four hundred three of this chapter, filing and 26 indexing by the department of state shall not be deemed a finding that a 27 certificate conforms to law, nor shall it be deemed to constitute an 28 approval by the department of state of the name of the corporation or 29 the contents of the certificate, nor shall it be deemed to prevent any 30 person with appropriate standing from contesting the legality thereof in 31 an appropriate forum. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF 32 STATE BY ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY 33 THAT A DOMESTIC CORPORATION OR FOREIGN AUTHORIZED CORPORATION HAS FAILED 34 TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, 35 BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE 36 CORPORATION'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT BUSINESS IN 37 THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON 38 THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR 39 APPROVAL ANNEXED THERETO. 40 S 2. Paragraphs (b) and (e) of section 201 of the business corporation 41 law, paragraph (b) as amended by chapter 182 of the laws of 1981, and 42 paragraph (e) as amended by section 71 of part A of chapter 58 of the 43 laws of 2010, are amended to read as follows: 44 (b) [The] CERTIFICATION THAT approval of the industrial board of 45 appeals HAS BEEN OBTAINED is required for the filing with the department 46 of state of any certificate of incorporation, certificate of merger or 47 consolidation or application of a foreign corporation for authority to 48 do business in this state which states as the purpose or one of the 49 purposes of the corporation the formation of an organization of groups 50 of working men or women or wage earners, or the performance, rendition 51 or sale of services as labor consultant or as advisor on labor-manage- 52 ment relations or as arbitrator or negotiator in labor-management 53 disputes. S. 2608 41 A. 3008 1 (e) A corporation may not include as its purpose or among its purposes 2 the establishment or maintenance of a hospital or facility providing 3 health related services, as those terms are defined in article twenty- 4 eight of the public health law unless its certificate of incorporation 5 shall so state and such certificate [shall have annexed thereto the] 6 INCLUDES A CERTIFICATION THAT approval of the public health and health 7 planning council OF SUCH PURPOSE HAS BEEN OBTAINED. 8 S 3. Clause (B) of subparagraph 5 of paragraph (a) of section 301 of 9 the business corporation law, as amended by chapter 155 of the laws of 10 2012, is amended to read as follows: 11 (B) Shall not contain any of the following words, or any abbreviation 12 or derivative thereof: 13 acceptance endowment loan 14 annuity fidelity mortgage 15 assurance finance savings 16 bank guaranty surety 17 benefit indemnity title 18 bond insurance trust 19 casualty investment underwriter 20 doctor lawyer 21 unless the [approval of the superintendent of financial services is 22 attached to the] certificate of incorporation, or application for 23 authority or amendment thereof INCLUDES A CERTIFICATION THAT APPROVAL OF 24 THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED; or [that] 25 UNLESS the word "doctor" or "lawyer" or an abbreviation or derivation 26 thereof is used in the name of a university faculty practice corporation 27 formed pursuant to section fourteen hundred twelve of the not-for-profit 28 corporation law or a professional service corporation formed pursuant to 29 article fifteen of this chapter, or a foreign professional service 30 corporation authorized to do business in this state pursuant to article 31 fifteen-A of this chapter, the members or shareholders of which are 32 composed exclusively of doctors or lawyers, respectively, or are used in 33 a context which clearly denotes a purpose other than the practice of law 34 or medicine. 35 S 4. Subparagraphs 6, 7 and 11 of paragraph (a) of section 301 of the 36 business corporation law, subparagraph 7 as amended by chapter 555 of 37 the laws of 1978 and subparagraph 11 as added by chapter 316 of the laws 38 of 2005, are amended to read as follows: 39 (6) Shall not, unless [the approval of the state board of standards 40 and appeals is attached to] the certificate of incorporation, or appli- 41 cation for authority or amendment thereof INCLUDES A CERTIFICATION THAT 42 THE APPROVAL OF THE STATE BOARD OF STANDARDS AND APPEALS HAS BEEN 43 OBTAINED, contain any of the following words or phrases, or any abbrevi- 44 ation or derivative thereof: union, labor, council, industrial organ- 45 ization, in a context which indicates or implies that the domestic 46 corporation is formed or the foreign corporation authorized as an organ- 47 ization of working men or women or wage earners or for the performance, 48 rendition or sale of services as labor or management consultant, adviser 49 or specialist, or as negotiator or arbitrator in labor-management 50 disputes. 51 (7) Shall not, unless [the approval of the state department of social 52 services is attached to] the certificate of incorporation, or applica- 53 tion for authority or amendment thereof INCLUDES A CERTIFICATION THAT 54 THE APPROVAL OF THE STATE DEPARTMENT OF SOCIAL SERVICES HAS BEEN 55 OBTAINED, contain the word "blind" or "handicapped". Such approval shall 56 be granted by the state department of social services, if in its opinion S. 2608 42 A. 3008 1 the word "blind" or "handicapped" as used in the corporate name proposed 2 will not tend to mislead or confuse the public into believing that the 3 corporation is organized for charitable or non-profit purposes related 4 to the blind or the handicapped. 5 (11) Shall not, unless [the consent of the commissioner of education 6 is endorsed on or annexed to] the certificate of incorporation INCLUDES 7 A CERTIFICATION THAT THE CONSENT OF THE COMMISSIONER OF EDUCATION HAS 8 BEEN OBTAINED, contain the words "school;" "education;" "elementary;" 9 "secondary;" "kindergarten;" "prekindergarten;" "preschool;" "nursery 10 school;" "museum;" "history;" "historical;" "historical society;" 11 "arboretum;" "library;" "college;" "university" or other term restricted 12 by section two hundred twenty-four of the education law; "conservatory," 13 "academy," or "institute," or any abbreviation or derivative of such 14 terms. Such consent shall not be granted by the commissioner of educa- 15 tion, if in the commissioner's opinion, the use of such terms in the 16 corporate name is likely to mislead or confuse the public into believing 17 that the corporation is organized for non-profit educational purposes or 18 for educational business purposes that are not specified in the corpo- 19 rate purposes and powers contained in its certificate of incorporation. 20 S 5. Section 406 of the business corporation law, as amended by chap- 21 ter 558 of the laws of 1999, is amended to read as follows: 22 S 406. Filing of a certificate of incorporation; facility for alcoholism 23 or alcohol abuse, substance abuse, substance dependence, or 24 chemical abuse or dependence. 25 Every certificate of incorporation which includes among its corporate 26 purposes the establishment or operation of a program of services for 27 alcoholism or alcohol abuse, substance abuse, substance dependence, or 28 chemical abuse or dependence shall [have endorsed thereon or annexed 29 thereto] INCLUDE A CERTIFICATION THAT the approval of the commissioner 30 of the state office of alcoholism and substance abuse services OF THE 31 PURPOSES HAS BEEN OBTAINED. 32 S 6. Paragraph (a) of section 806 of the business corporation law is 33 amended to read as follows: 34 (a) The department of state shall not file a certificate of amendment 35 reviving the existence of a corporation unless THE CERTIFICATE OF AMEND- 36 MENT INCLUDES A CERTIFICATION THAT the consent of the state tax commis- 37 sion to the revival [is delivered to the department] HAS BEEN OBTAINED. 38 If the name of the corporation being revived is not available under 39 section 301 (Corporate name; general) for use by a corporation then 40 being formed under this chapter, the certificate of amendment shall 41 change the name to one which is available for such use. 42 S 7. Paragraph (a) of section 1003 of the business corporation law is 43 amended by adding two new subparagraphs 6 and 7 to read as follows: 44 (6) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND 45 FINANCE TO THE DISSOLUTION HAS BEEN OBTAINED. 46 (7) WITH RESPECT TO ANY CORPORATION THAT HAS DONE BUSINESS IN THE CITY 47 OF NEW YORK AND INCURRED LIABILITY FOR ANY TAX OR CHARGE UNDER CHAPTER 48 SIX, SEVEN, EIGHT, TEN, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, TWENTY-ONE, 49 TWENTY-FOUR, TWENTY-FIVE OR TWENTY-SEVEN OF TITLE ELEVEN OF THE ADMINIS- 50 TRATIVE CODE OF THE CITY OF NEW YORK, A CERTIFICATION THAT CONSENT OF 51 THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK TO THE DISSOLUTION 52 HAS BEEN OBTAINED. 53 S 8. Paragraph (a) of section 1004 of the business corporation law, as 54 amended by chapter 201 of the laws of 2009, is amended to read as 55 follows: S. 2608 43 A. 3008 1 (a) [The department shall not file such certificate unless the consent 2 of the state department of taxation and finance to the dissolution is 3 attached thereto.] Upon [such] filing SUCH CERTIFICATE, the corporation 4 is dissolved. 5 S 9. Paragraph (b) of section 1004 of the business corporation law is 6 REPEALED. 7 S 10. Subparagraph 8 of paragraph (a) of section 1304 of the business 8 corporation law, as amended by chapter 684 of the laws of 1963 and as 9 renumbered by chapter 590 of the laws of 1982, is amended to read as 10 follows: 11 (8) A statement that the foreign corporation has not since its incor- 12 poration or since the date its authority to do business in this state 13 was last surrendered, engaged in any activity in this state, except as 14 set forth in paragraph (b) of section 1301 (Authorization of foreign 15 corporations), or in lieu thereof A CERTIFICATION THAT the consent of 16 the state tax commission to the filing of the application[, which 17 consent shall be attached thereto] HAS BEEN OBTAINED. 18 S 11. Paragraph (a) of section 1310 of the business corporation law is 19 amended by adding a new subparagraph 7 to read as follows: 20 (7) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND 21 FINANCE TO THE SURRENDER OF AUTHORITY HAS BEEN OBTAINED. 22 S 12. Paragraph (b) of section 1310 of the business corporation law is 23 REPEALED, and paragraphs (c) and (d) are relettered (b) and (c). 24 S 13. Section 216 of the education law, as amended by chapter 901 of 25 the laws of 1972, and the closing paragraph as added by chapter 316 of 26 the laws of 2005, is amended to read as follows: 27 S 216. Charters. Under such name, with such number of trustees or 28 other managers, and with such powers, privileges and duties, and subject 29 to such limitations and restrictions in all respects as the regents may 30 prescribe in conformity to law, they may, by an instrument under their 31 seal and recorded in their office, incorporate any university, college, 32 academy, library, museum, or other institution or association for the 33 promotion of science, literature, art, history or other department of 34 knowledge, or of education in any way, associations of teachers, 35 students, graduates of educational institutions, and other associations 36 whose approved purposes are, in whole or in part, of educational or 37 cultural value deemed worthy of recognition and encouragement by the 38 university. No institution or association which might be incorporated by 39 the regents under this chapter shall, without their consent, be incorpo- 40 rated under any other general law. An institution or association which 41 might be incorporated by the regents under this chapter may, with the 42 consent of the commissioner of education, be formed under the business 43 corporation law or pursuant to the not-for-profit corporation law if 44 [such consent of the commissioner of education is attached to] its 45 certificate of incorporation INCLUDES A CERTIFICATION THAT CONSENT OF 46 THE COMMISSIONER OF EDUCATION TO THE INCORPORATION OF SUCH INSTITUTION 47 OR ASSOCIATION HAS BEEN OBTAINED. No individual, association, partner- 48 ship, company or corporation not authorized by special charter from the 49 legislature of this state or by charter from the regents to operate a 50 museum, or arboretum shall knowingly use, advertise or transact business 51 under the names "museum," or "arboretum," or any name, title or descrip- 52 tive material indicating or tending to imply that said individual, asso- 53 ciation, partnership, company or corporation conducts, carries on, or is 54 such a business when it is not, or that it is authorized to operate as 55 such, unless the right to do so has been granted by the regents or the 56 commissioner in writing. Any violation of this paragraph shall be a S. 2608 44 A. 3008 1 misdemeanor. Notwithstanding any other provision of this section, an 2 individual, association, partnership, company or corporation doing busi- 3 ness under any of such names on the effective date of this paragraph may 4 come into compliance with this paragraph by obtaining consent of the 5 regents or the commissioner within one year of such effective date. 6 S 14. Paragraph (c) of subdivision 2 of section 130 of the general 7 business law, as amended by chapter 316 of the laws of 2005, is amended 8 to read as follows: 9 (c) No corporation, limited partnership or limited liability company 10 shall use or file a certificate for the use of any name or designation 11 to carry on or conduct or transact business in this state which consists 12 of or includes a word or words the use of which is prohibited or 13 restricted by subparagraphs three through eleven of paragraph (a) of 14 section three hundred one of the business corporation law or subpara- 15 graphs three through nine of paragraph (a) of section three hundred one 16 and paragraph (w) of section four hundred four of the not-for-profit 17 corporation law, or paragraph three of subdivision (a) of section 18 121-102 of the partnership law, or subdivisions (d) through (i) of 19 section two hundred four of the limited liability company law, respec- 20 tively, [without having obtained any necessary] UNLESS SUCH CERTIFICATE 21 INCLUDES A CERTIFICATION THAT SUCH consents or approvals which would 22 permit the use of the word or words pursuant to such laws HAS BEEN 23 OBTAINED, OR WHERE REQUIRED BY STATUTE, SUCH CERTIFICATE HAS CONSENTS OR 24 APPROVALS ENDORSED THEREON OR ARE ANNEXED THERETO. 25 S 15. Subdivision 11 of section 130 of the general business law, as 26 added by chapter 316 of the laws of 2005, is amended to read as follows: 27 11. Notwithstanding any other provision of this section, an education 28 corporation may not file a certificate under this section with the 29 secretary of state, unless SUCH CERTIFICATE INCLUDES A CERTIFICATION 30 THAT the consent of the board of regents [is endorsed on or annexed 31 thereto] HAS BEEN OBTAINED. Nothing in this subdivision shall invali- 32 date a certificate lawfully filed by an education corporation pursuant 33 to this section prior to the effective date of this subdivision. 34 S 16. Subdivision (f) of section 204 of the limited liability company 35 law, as amended by chapter 155 of the laws of 2012, is amended to read 36 as follows: 37 (f) shall not contain the following words, or any abbreviation 38 or derivative thereof: 39 acceptance guaranty 40 annuity indemnity 41 assurance insurance 42 attorney investment 43 bank lawyer 44 benefit loan 45 bond mortgage 46 casualty savings 47 doctor surety 48 endowment title 49 fidelity trust 50 finance underwriter 51 unless the [approval of the superintendent of financial services is 52 attached to the] articles of organization INCLUDE A CERTIFICATION THAT 53 APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED 54 or unless the word "doctor" or "lawyer" or an abbreviation or derivative 55 thereof is used in a context that clearly denotes a purpose other than 56 the practice of law or medicine; S. 2608 45 A. 3008 1 S 17. Subdivisions (g) and (i) of section 204 of the limited liability 2 company law, subdivision (i) as added by chapter 316 of the laws of 3 2005, are amended to read as follows: 4 (g) shall not, unless [the approval of the state department of social 5 services is attached to] the articles of organization or application for 6 authority INCLUDE A CERTIFICATION THAT THE APPROVAL OF THE STATE DEPART- 7 MENT OF SOCIAL SERVICES HAS BEEN OBTAINED, contain the word "blind" or 8 "handicapped." Such approval shall be granted by the state department of 9 social services if in its opinion the word "blind" or "handicapped" as 10 used in the limited liability company's proposed name will not tend to 11 mislead or confuse the public into believing that the limited liability 12 company is organized for charitable or nonprofit purposes related to the 13 blind or the handicapped; and 14 (i) shall not, UNLESS THE ARTICLES OF ORGANIZATION OR APPLICATION FOR 15 AUTHORITY INCLUDE A CERTIFICATION THAT THE CONSENT OF THE COMMISSIONER 16 OF EDUCATION HAS BEEN OBTAINED, contain the following terms: "school," 17 "education," "elementary," "secondary," "kindergarten," "prekindergar- 18 ten," "preschool," "nursery school," "museum," "history," "historical," 19 "historical society," "arboretum," "library," "college," "university" or 20 other term restricted by section two hundred twenty-four of the educa- 21 tion law; "conservatory," "academy," or "institute" or any abbreviation 22 or derivative of such terms[, shall have endorsed thereon or annexed 23 thereto the consent of the commissioner of education]. 24 S 18. Section 209 of the limited liability company law is amended to 25 read as follows: 26 S 209. Filing with the department of state. A signed articles of 27 organization and any signed certificate of amendment or other certif- 28 icates filed pursuant to this chapter or of any judicial decree of 29 amendment or cancellation shall be delivered to the department of state. 30 If the instrument that is delivered to the department of state for 31 filing complies as to form with the requirements of law and the filing 32 fee required by any statute of this state in connection therewith has 33 been paid, the instrument shall be filed and indexed by the department 34 of state. The department of state shall not review such articles or 35 certificates for legal sufficiency; its review shall be limited to 36 determining that the form has been completed. UPON THE WRITTEN NOTIFICA- 37 TION TO THE DEPARTMENT OF STATE BY ANY STATE OFFICIAL, DEPARTMENT, 38 BOARD, AGENCY OR OTHER BODY THAT A DOMESTIC LIMITED LIABILITY COMPANY OR 39 FOREIGN AUTHORIZED LIMITED LIABILITY COMPANY HAS FAILED TO OBTAIN THE 40 CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR 41 OTHER BODY FOR ANY CERTIFICATE OR INSTRUMENT, THE LIMITED LIABILITY 42 COMPANY'S AUTHORITY TO CARRY ON, CONDUCT OR TRANSACT BUSINESS IN THIS 43 STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE ANNULLED UPON THE 44 FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED CONSENT OR 45 APPROVAL ANNEXED THERETO. 46 S 19. Clause (B) of subparagraph 5 of paragraph (a) of section 301 of 47 the not-for-profit corporation law, as amended by chapter 155 of the 48 laws of 2012, is amended to read as follows: 49 (B) Shall not contain any of the following words, or any abbreviation 50 or derivative thereof: 51 acceptance fidelity mortgage 52 annuity finance savings 53 assurance guaranty surety S. 2608 46 A. 3008 1 bank indemnity title 2 bond insurance trust 3 casualty investment underwriter 4 doctor lawyer 5 endowment loan 6 unless [the approval of the superintendent of financial services is 7 attached to] the certificate of incorporation, or application for 8 authority or amendment thereof[;] INCLUDES A CERTIFICATION THAT THE 9 APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES HAS BEEN OBTAINED, 10 or [that] UNLESS the word "doctor", OR "lawyer", or the phrase "state 11 police" or "state trooper" or an abbreviation or derivation thereof, 12 [may be] IS used ONLY in the name of a corporation the membership of 13 which is composed exclusively of doctors, lawyers, state policemen or 14 state troopers, respectively. 15 S 20. Section 404 of the not-for-profit corporation law, as amended by 16 chapter 139 of the laws of 1993, paragraph (b) as amended by section 4 17 of part D of chapter 58 of the laws of 2006, paragraphs (c), (k) and (l) 18 as further amended by section 104 of part A of chapter 62 of the laws of 19 2011, paragraphs (a), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), 20 (m), (n) and (r) as relettered by chapter 431 of the laws of 1993, para- 21 graph (g) as separately amended by chapter 201 of the laws of 1993, 22 paragraphs (o), (p) and (t) as amended by section 79 of part A of chap- 23 ter 58 of the laws of 2010, paragraph (q) as amended by chapter 198 of 24 the laws of 2010, paragraph (u) as amended by chapter 558 of the laws of 25 1999, paragraph (v) as added by chapter 598 of the laws of 2000 and as 26 further amended by section 104 of part A of chapter 62 of the laws of 27 2011, paragraph (w) as amended by chapter 316 of the laws of 2005, is 28 amended to read as follows: 29 S 404. Approvals and consents. 30 (a) Every certificate of incorporation which includes among its 31 purposes the formation of a trade or business association shall have 32 endorsed thereon or annexed thereto the consent of the attorney-general. 33 (b) (1) Every certificate of incorporation which includes among its 34 purposes the care of destitute, delinquent, abandoned, neglected or 35 dependent children; the establishment or operation of any adult care 36 facility, or the establishment or operation of a residential program for 37 victims of domestic violence as defined in subdivision four of section 38 four hundred fifty-nine-a of the social services law, or the placing-out 39 or boarding-out of children or a home or shelter for unmarried mothers, 40 excepting the establishment or maintenance of a hospital or facility 41 providing health-related services as those terms are defined in article 42 twenty-eight of the public health law and a facility for which an oper- 43 ating certificate is required by articles sixteen, nineteen, twenty-two 44 and thirty-one of the mental hygiene law; or the solicitation of 45 contributions for any such purpose or purposes, shall [have endorsed 46 thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of 47 the commissioner of the office of children and family services, or with 48 respect to any adult care facility, the commissioner of health, OF SUCH 49 PURPOSE HAS BEEN OBTAINED. 50 (2) A corporation whose statement of purposes specifically includes 51 the establishment or operation of a child day care center, as that term S. 2608 47 A. 3008 1 is defined in section three hundred ninety of the social services law, 2 shall provide a certified copy of the certificate of incorporation, each 3 amendment thereto, and any certificate of merger, consolidation or 4 dissolution involving such corporation to the office of children and 5 family services within thirty days after the filing of such certificate, 6 amendment, merger, consolidation or dissolution with the department of 7 state. This requirement shall also apply to any foreign corporation 8 filing an application for authority under section thirteen hundred four 9 of this chapter, any amendments thereto, and any surrender of authority 10 or termination of authority in this state of such corporation. 11 (c) Every certificate of incorporation which includes among the 12 purposes of the corporation, the establishment, maintenance and opera- 13 tion of a hospital service or a health service or a medical expense 14 indemnity plan or a dental expense indemnity plan as permitted in arti- 15 cle forty-three of the insurance law, shall [have endorsed thereon or 16 annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the super- 17 intendent of financial services and the commissioner of health OF SUCH 18 PURPOSE HAS BEEN OBTAINED. 19 (d) Every certificate of incorporation which includes a purpose for 20 which a corporation might be chartered by the regents of the university 21 of the State of New York shall [have endorsed thereon or annexed there- 22 to] INCLUDE A CERTIFICATION THAT the consent of the commissioner of 23 education TO SUCH PURPOSE HAS BEEN OBTAINED. 24 (e) Every certificate of incorporation of a cemetery corporation, 25 except those within the exclusionary provisions of section 1503 (Ceme- 26 tery corporations) shall [have endorsed thereon or annexed thereto] 27 INCLUDE A CERTIFICATION THAT the approval of the cemetery board OF SUCH 28 PURPOSE HAS BEEN OBTAINED. 29 (f) Every certificate of incorporation of a fire corporation shall 30 [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT 31 the approval, signed and acknowledged, of the authorities of each city, 32 village, town or fire district in which the corporation proposes to act, 33 OF SUCH PURPOSE HAS BEEN OBTAINED. Such authorities shall be: in a city, 34 the mayor; in a village, a majority of the trustees; in a town, a major- 35 ity of the members of the town board; in a fire district, a majority of 36 the fire commissioners. The members of the town board of a town, or the 37 trustees of a village, shall not consent to the formation of a fire 38 corporation as hereinbefore provided, until such board shall have held a 39 public hearing on the question of whether the fire company should be 40 incorporated. The notice shall be published at least once in each week 41 for two successive weeks in the official newspaper published in the 42 county in which such fire corporation intends to locate, prior to the 43 regular meeting of such board designated by the chairman of the board to 44 consider the matter. Such notice shall contain the name of the proposed 45 company, the names of the persons signing the certificate of incorpo- 46 ration, a brief description of the territory to be protected by the fire 47 company and that all persons interested shall be heard. If no newspaper 48 is published in the county the publication of the notice shall be in a 49 newspaper in an adjoining county selected by the chairman of such board. 50 All expenses in connection with such publication shall be borne by the 51 parties making the application and paid before the hearing. 52 (g) Every certificate of incorporation of a corporation for prevention 53 of cruelty to animals shall [have endorsed thereon or annexed thereto] 54 INCLUDE A CERTIFICATION THAT the approval of the American Society for 55 the Prevention of Cruelty to Animals OF SUCH PURPOSE HAS BEEN OBTAINED, 56 or, if such approval be withheld thirty days after application therefor, S. 2608 48 A. 3008 1 a certified copy of an order of a justice of the supreme court of the 2 judicial district in which the office of the corporation is to be 3 located, dispensing with such approval, granted upon eight days' notice 4 to such society. 5 (h) Every certificate of incorporation of a Young Men's Christian 6 Association shall [have endorsed thereon or annexed thereto] INCLUDE A 7 CERTIFICATION THAT the approval of the chairman of the national board of 8 Young Men's Christian Associations OF SUCH PURPOSE HAS BEEN OBTAINED. 9 (i) Every certificate of incorporation which indicates that the 10 proposed corporation is to solicit funds for or otherwise benefit the 11 armed forces of the United States or of any foreign country, or their 12 auxiliaries, or of this or any other state or any territory, shall [have 13 endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the 14 approval of the chief of staff OF SUCH PURPOSE HAS BEEN OBTAINED. 15 (j) Every certificate of incorporation which includes among its 16 purposes the organization of wage-earners for their mutual betterment, 17 protection and advancement; the regulation of hours of labor, working 18 conditions, or wages; or the performance, rendition or sale of services 19 as labor consultant, labor-management advisor, negotiator, arbitrator, 20 or specialist; and every certificate of incorporation in which the name 21 of the proposed corporation includes "union", "labor", "council" or 22 "industrial organization", or any abbreviation or derivative thereof in 23 a context that indicates or implies that the corporation is formed for 24 any of the above purposes, shall [have endorsed thereon or annexed ther- 25 eto] INCLUDE A CERTIFICATION THAT the approval of the industrial board 26 of appeals OF SUCH PURPOSE HAS BEEN OBTAINED. The board shall make such 27 inquiry into the purposes of the proposed corporation as it shall deem 28 advisable and shall order a hearing if necessary to determine whether or 29 not such purposes are in all respects consistent with public policy and 30 the labor law. Notice of the time and place of hearing shall be given to 31 the applicants and such other persons as the board may determine. 32 (k) Every certificate of incorporation for a corporation which has as 33 its exclusive purpose the promotion of the interests of savings bank 34 life insurance or the promotion of the interests of member banks may, if 35 the CERTIFICATE INCLUDES A CERTIFICATION THAT approval of the super- 36 intendent of financial services [is endorsed thereon or annexed thereto] 37 HAS BEEN OBTAINED, use as a part of the corporate name any of the words 38 or phrases, or any abbreviation or derivative thereof, set forth in 39 subparagraph (5) of paragraph (a) of section 301 (Corporate name; gener- 40 al). 41 (l) Every certificate of incorporation for a corporation which has as 42 its exclusive purpose the creation of an association of licensed insur- 43 ance agents, licensed insurance brokers, or licensed insurance under- 44 writers and every application for authority of a foreign corporation 45 which is an independent laboratory engaged in testing for public safety, 46 or which has as its purpose the advancement of corporate, governmental, 47 and institutional risk and insurance management, or which has as its 48 exclusive purpose the creation of an association of insurers, each of 49 which is duly licensed in this state or, if it does no business or is 50 not licensed in this state, is duly licensed in another state or foreign 51 jurisdiction may, if the CERTIFICATE INCLUDES A CERTIFICATION THAT 52 approval of the superintendent of financial services [is endorsed there- 53 on or annexed thereto] HAS BEEN OBTAINED, use as a part of the corporate 54 name any of the words or phrases, or any abbreviation or derivative 55 thereof, set forth in subparagraph (5) of paragraph (a) of section 301 56 (Corporate name; general). S. 2608 49 A. 3008 1 (m) Every certificate of incorporation in which the name of the 2 proposed corporation includes the name of a political party shall [have 3 endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the 4 consent of the chairman of the county committee of such political party 5 of the county in which the office of the corporation is to be located 6 HAS BEEN OBTAINED, except in cases where the supreme court finds that 7 the withholding of such consent of the county chairman is unreasonable. 8 (n) Every certificate of incorporation in which the name of the 9 proposed corporation includes the words "American Legion," shall [have 10 endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the 11 approval of the Department of New York, the American Legion, duly 12 acknowledged by its commander or adjutant HAS BEEN OBTAINED. 13 (o) Every certificate of incorporation which includes among its corpo- 14 rate purposes or powers the establishment or maintenance of any hospi- 15 tal, as defined in article twenty-eight of the public health law, or the 16 solicitation of contributions for any such purpose, or purposes, shall 17 [have endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT 18 the approval of the public health and health planning council OF SUCH 19 PURPOSE HAS BEEN OBTAINED. 20 (p) Every certificate of incorporation of a medical corporation as 21 defined in article forty-four of the public health law and organized 22 pursuant thereto and pursuant to this chapter, shall [have endorsed 23 thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the consent of 24 the commissioner of health TO and the approval of the public health and 25 health planning council OF SUCH PURPOSE HAS BEEN OBTAINED. 26 (q) Every certificate of incorporation which includes among its corpo- 27 rate purposes or powers the establishment, or operation of a facility 28 for which an operating certificate from the commissioner of mental 29 health is required by article thirty-one of the mental hygiene law, or 30 the solicitation of contributions for any such purpose, shall [have 31 endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the 32 approval of the commissioner of mental health OF SUCH PURPOSE HAS BEEN 33 OBTAINED. 34 (r) Every certificate of incorporation of a health maintenance organ- 35 ization as defined in article forty-four of the public health law and 36 organized pursuant thereto and pursuant to this chapter, shall [have 37 endorsed thereon or annexed thereto] INCLUDE A CERTIFICATION THAT the 38 consent of the commissioner of health TO SUCH PURPOSE HAS BEEN OBTAINED. 39 (t) Every certificate of incorporation which includes among its 40 purposes and powers the establishment or maintenance of a hospital or 41 facility providing health related services, as those terms are defined 42 in article twenty-eight of the public health law, or the solicitation of 43 contributions for any such purpose or two or more of such purposes, 44 shall [have endorsed thereon] INCLUDE A CERTIFICATION THAT the approval 45 of the public health and health planning council OF SUCH PURPOSE HAS 46 BEEN OBTAINED. 47 (u) Every certificate of incorporation which includes among the 48 purposes of the corporation, the establishment or operation of a 49 substance abuse, substance dependence, alcohol abuse, alcoholism, or 50 chemical abuse or dependence program, or the solicitation of contrib- 51 utions for any such purpose, shall [have endorsed thereon or annexed 52 thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of 53 the office of alcoholism and substance abuse services to its filing by 54 the department of state TO SUCH PURPOSE HAS BEEN OBTAINED. 55 (v) Every certificate of incorporation which includes among the 56 purposes of the corporation, the establishment, maintenance and opera- S. 2608 50 A. 3008 1 tion of a nonprofit property/casualty insurance company, pursuant to 2 article sixty-seven of the insurance law, shall [have endorsed thereon 3 or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the 4 superintendent of financial services OF SUCH PURPOSE HAS BEEN OBTAINED. 5 (w) Every certificate of incorporation in which the name of the 6 proposed corporation includes the terms: "school," "education," "elemen- 7 tary," "secondary," "kindergarten," "prekindergarten," "preschool," 8 "nursery school," "museum," "history," "historical," "historical socie- 9 ty," "arboretum," "library," "college," "university" or other term 10 restricted by section two hundred twenty-four of the education law; 11 "conservatory," "academy," or "institute," or any abbreviation or deriv- 12 ative of such terms, shall [have endorsed thereon or annexed thereto] 13 INCLUDE A CERTIFICATION THAT the consent of the commissioner of educa- 14 tion HAS BEEN OBTAINED. 15 S 21. Paragraphs (a) and (b) of section 804 of the not-for-profit 16 corporation law, as amended by chapter 139 of the laws of 1993, subpara- 17 graph (i) of paragraph (a) as amended by chapter 198 of the laws of 18 2010, are amended to read as follows: 19 (a) (i) A certificate of amendment shall not be filed if the amendment 20 adds, changes or eliminates a purpose, power or provision the inclusion 21 of which in a certificate of incorporation requires consent or approval 22 of a governmental body or officer or any other person or body, or if the 23 amendment changes the name of a corporation whose certificate of incor- 24 poration had such consent or approval endorsed thereon or annexed there- 25 to, unless such consent or approval is no longer required, or AS 26 REQUIRED BY STATUTE, SUCH CONSENT OR APPROVAL is endorsed on or annexed 27 to OR the certificate of amendment INCLUDES A CERTIFICATION THAT SUCH 28 CONSENT OR APPROVAL HAS BEEN OBTAINED. 29 (ii) Every certificate of amendment of a corporation [classified as 30 type B or type C under section 201 (Purposes)] FORMED FOR THE PURPOSES 31 SPECIFIED IN SUBPARAGRAPH TWO OR THREE OF PARAGRAPH (B) OF SECTION 201 32 which seeks to change or eliminate a purpose or power enumerated in the 33 corporation's certificate of incorporation, or to add a power or purpose 34 not enumerated therein, shall [have endorsed thereon or annexed thereto] 35 INCLUDE A CERTIFICATION THAT the approval of a justice of the supreme 36 court of the judicial district in which the office of the corporation is 37 located HAS BEEN OBTAINED. Ten days' written notice of the application 38 for such approval shall be given to the attorney-general. 39 (b) The department of state shall not file a certificate of amendment 40 reviving the existence of a corporation unless THE CERTIFICATE INCLUDES 41 A CERTIFICATION THAT the REQUIRED consent or approval of a governmental 42 body or officer or any other person or body [required to be endorsed on 43 or annexed to the certificate of incorporation of a corporation formed 44 for similar purposes, is attached thereto] HAS BEEN OBTAINED, or, if 45 notice to the attorney-general was required prior to the filing of its 46 certificate of incorporation, the certificate of amendment should indi- 47 cate that such notice has been given as required by law. 48 S 22. Section 909 of the not-for-profit corporation law, as amended by 49 section 6 of part D of chapter 58 of the laws of 2006, is amended to 50 read as follows: 51 S 909. Consent to filing. 52 If the purposes of any constituent or consolidated corporation would 53 require the approval or consent of any governmental body or officer or 54 any other person or body under section 404 (Approvals and consents) no 55 certificate of merger or consolidation shall be filed pursuant to this 56 article unless THE CERTIFICATE INCLUDES A CERTIFICATION THAT such S. 2608 51 A. 3008 1 approval OF or consent [is endorsed thereon or annexed thereto] TO SUCH 2 PURPOSE HAS BEEN OBTAINED OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR 3 CONSENT IS ENDORSED THEREON OR ANNEXED THERETO. A corporation whose 4 statement of purposes specifically includes the establishment or opera- 5 tion of a child day care center, as that term is defined in section 6 three hundred ninety of the social services law, shall provide a certi- 7 fied copy of any certificate of merger or consolidation involving such 8 corporation to the office of children and family services within thirty 9 days after the filing of such merger or consolidation with the depart- 10 ment of state. 11 S 23. Paragraph (a) of section 1003 of the not-for-profit corporation 12 law is amended by adding two new subparagraphs 8 and 9 to read as 13 follows: 14 (8) A CERTIFICATION THAT THE CONSENT OF THE DEPARTMENT OF TAXATION AND 15 FINANCE TO THE DISSOLUTION HAS BEEN OBTAINED. 16 (9) WITH RESPECT TO ANY CORPORATION THAT HAS DONE BUSINESS IN THE CITY 17 OF NEW YORK AND INCURRED LIABILITY FOR ANY TAX OR CHARGE UNDER CHAPTER 18 SIX, SEVEN, EIGHT, TEN, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, TWENTY-ONE, 19 TWENTY-FOUR, TWENTY-FIVE OR TWENTY-SEVEN OF TITLE ELEVEN OF THE ADMINIS- 20 TRATIVE CODE OF THE CITY OF NEW YORK, A CERTIFICATION THAT CONSENT OF 21 THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK TO THE DISSOLUTION 22 HAS BEEN OBTAINED. 23 S 24. Paragraph (a) of section 1004 of the not-for-profit corporation 24 law, as amended by chapter 201 of the laws of 2009, is amended to read 25 as follows: 26 (a) [The department of state shall not file a certificate of dissol- 27 ution unless the consent of the state department of taxation and finance 28 to the dissolution is attached thereto.] Upon filing the certificate, 29 the corporation is dissolved. 30 S 25. Paragraph (b) of section 1004 of the not-for-profit corporation 31 law is REPEALED. 32 S 26. Subparagraph 8 of paragraph (a) and paragraph (c) of section 33 1304 of the not-for-profit corporation law, subparagraph 8 of paragraph 34 (a) as renumbered by chapter 590 of the laws of 1982, are amended to 35 read as follows: 36 (8) A statement that the foreign corporation has not, since its incor- 37 poration or since the date its authority to conduct activities in this 38 state was last surrendered, done any act in this state, except as set 39 forth in paragraph (b) of section 1301 (Authorization of foreign corpo- 40 rations); or in lieu of such statement A CERTIFICATION THAT the consent 41 of the state tax commission to the filing of the application [shall be 42 attached thereto] HAS BEEN OBTAINED. 43 (c) If the application for authority sets forth any purpose or activ- 44 ity for which a domestic corporation could be formed only with the 45 consent or approval of any governmental body or officer, or other person 46 or body under section 404 (Approvals and consents), such APPLICATION 47 SHALL INCLUDE A CERTIFICATION THAT THE consent TO or approval [shall be 48 endorsed thereon or annexed thereto] OF SUCH PURPOSE HAS BEEN OBTAINED, 49 OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR CONSENT IS ENDORSED THER- 50 EON OR ANNEXED THERETO. 51 S 27. Paragraph (c) of section 1309 of the not-for-profit corporation 52 law, as added by chapter 961 of the laws of 1972, is amended to read as 53 follows: 54 (c) A certificate of amendment of application for authority shall not 55 be filed, if the amendment adds, changes or eliminates a purpose, power 56 or provision the inclusion of which in an application for authority S. 2608 52 A. 3008 1 requires consent or approval of any governmental body or officer or 2 other person or body, or if the amendment changes the name of a corpo- 3 ration whose application for authority had such consent or approval 4 endorsed thereon or annexed thereto, unless such AMENDMENT INCLUDES A 5 CERTIFICATION THAT SUCH consent TO or approval [is endorsed on or 6 annexed to the certificate of amendment] of application for authority 7 HAS BEEN OBTAINED, OR WHERE REQUIRED BY STATUTE, SUCH APPROVAL OR 8 CONSENT IS ENDORSED THEREON OR ANNEXED THERETO. 9 S 28. Paragraph (a) of section 1311 of the not-for-profit corporation 10 law is amended by adding a new paragraph 7 to read as follows: 11 (7) A CERTIFICATION THAT CONSENT OF THE DEPARTMENT OF TAXATION AND 12 FINANCE TO THE SURRENDER OF AUTHORITY HAS BEEN OBTAINED. 13 S 29. Paragraph (c) of section 1311 of the not-for-profit corporation 14 law is REPEALED and paragraph (d) is relettered paragraph (c). 15 S 30. Paragraph (b) of section 1505 of the not-for-profit law, as 16 added by chapter 871 of the laws of 1977, is amended to read as follows: 17 (b) Cemetery board endorsement. Every certificate of incorporation 18 of a cemetery corporation, except those within the exclusionary 19 provisions of section fifteen hundred three, shall [have endorsed there- 20 on or annexed thereto] INCLUDE A CERTIFICATION THAT the approval of the 21 cemetery board as required in subdivision (e) of section four hundred 22 four of this chapter HAS BEEN OBTAINED. 23 S 31. Subparagraphs (A) and (B) of paragraph 3 of subdivision (a) of 24 section 121-102 of the partnership law, subparagraph (A) as amended by 25 chapter 316 of the laws of 2005, subparagraph (B) as amended by chapter 26 155 of the laws of 2012, are amended to read as follows: 27 (A) may not contain the following phrases or any abbreviation or 28 derivative thereof: 29 board of trade state trooper 30 chamber of commerce tenant relocation 31 community renewal urban development 32 state police urban relocation 33 Every certificate of limited partnership in which the name of the 34 proposed limited partnership includes the terms: "school," "education," 35 "elementary," "secondary," "kindergarten," "prekindergarten," 36 "preschool," "nursery school," "museum," "history," "historical," 37 "historical society," "arboretum," "library," "college," "university" or 38 other term restricted by section two hundred twenty-four of the educa- 39 tion law; "conservatory," "academy," or "institute," or any abbreviation 40 or derivative of such terms, shall [have endorsed thereon or annexed 41 thereto] INCLUDE A CERTIFICATION THAT the consent of the commissioner of 42 education HAS BEEN OBTAINED. 43 (B) may not contain the following words, or any abbreviation or deriv- 44 ative thereof: 45 acceptance indemnity 46 annuity insurance 47 assurance investment 48 bank lawyer 49 benefit loan 50 bond mortgage 51 casualty savings 52 doctor surety 53 endowment title 54 fidelity trust 55 finance underwriter 56 guaranty S. 2608 53 A. 3008 1 unless the [approval of the superintendent of financial services is 2 attached to the] certificate of limited partnership INCLUDES A CERTIF- 3 ICATION THAT THE APPROVAL OF THE SUPERINTENDENT OF FINANCIAL SERVICES 4 HAS BEEN OBTAINED; or unless the word "doctor" or "lawyer" or an abbre- 5 viation or derivative thereof is used in a context which clearly denotes 6 a purpose other than the practice of law or medicine. 7 S 32. Subparagraph (C) of paragraph 3 of subdivision (a) of section 8 121-102 of the partnership law, as added by chapter 264 of the laws of 9 1991, is amended to read as follows: 10 (C) shall not, unless [the approval of the state department of social 11 services is attached to] the certificate of limited partnership or 12 application for authority or amendment thereof INCLUDES A CERTIFICATION 13 THAT THE APPROVAL OF THE STATE DEPARTMENT OF SOCIAL SERVICES HAS BEEN 14 OBTAINED, contain the word "blind" or "handicapped". Such approval shall 15 be granted by the state department of social services if in its opinion 16 the word "blind" or "handicapped" as used in the limited partnership 17 name proposed will not tend to mislead or confuse the public into 18 believing that the limited partnership is organized for charitable or 19 nonprofit purposes related to the blind or the handicapped. 20 S 33. Section 121-206 of the partnership law, as added by chapter 950 21 of the laws of 1990, is amended to read as follows: 22 S 121-206. Filing with the department of state. A signed certificate 23 of limited partnership and any signed certificates of amendment or other 24 certificates filed pursuant to this article or of any judicial decree of 25 amendment or cancellation shall be delivered to the department of state. 26 If the instrument which is delivered to the department of state for 27 filing complies as to form with the requirements of law and the filing 28 fee required by any statute of this state in connection therewith has 29 been paid, the instrument shall be filed and indexed by the department 30 of state. UPON THE WRITTEN NOTIFICATION TO THE DEPARTMENT OF STATE BY 31 ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY OR OTHER BODY THAT A 32 DOMESTIC LIMITED PARTNERSHIP OR FOREIGN AUTHORIZED LIMITED PARTNERSHIP 33 HAS FAILED TO OBTAIN THE CONSENT OR APPROVAL OF SUCH STATE OFFICIAL, 34 DEPARTMENT, BOARD, AGENCY OR OTHER BODY FOR ANY CERTIFICATE OR INSTRU- 35 MENT, THE LIMITED PARTNERSHIP'S AUTHORITY TO CARRY ON, CONDUCT OR TRANS- 36 ACT BUSINESS IN THIS STATE SHALL BE SUSPENDED. SUCH SUSPENSION SHALL BE 37 ANNULLED UPON THE FILING OF A CERTIFICATE OF AMENDMENT WITH THE REQUIRED 38 CONSENT OR APPROVAL ANNEXED THERETO. 39 S 34. Section 14 of the private housing finance law, as amended by 40 chapter 544 of the laws of 1961, is amended to read as follows: 41 S 14. Consent of commissioner to incorporation. Whenever any such 42 certificate shall be presented to the secretary of state, [he] THE 43 SECRETARY shall not file such certificate unless [there shall accompany 44 the same a] THE CERTIFICATE INCLUDES A CERTIFICATION THAT A certificate 45 of the commissioner that he consents to the filing of such certificate 46 HAS BEEN OBTAINED; nor shall any amendment to the certificate of incor- 47 poration be filed unless it [is accompanied by] INCLUDES A CERTIFICATION 48 THAT a certificate of the commissioner consenting thereto HAS BEEN 49 OBTAINED. If a company has entered into a contract with a municipality 50 for the construction of a municipally aided project, the commissioner 51 shall not issue a certificate consenting to an amendment of the certif- 52 icate of incorporation of such company, unless the supervising agency 53 has given its written consent to such amendment. 54 S 35. Subdivision 5 of section 573 of the private housing finance law, 55 as amended by chapter 410 of the laws of 1984, is amended to read as 56 follows: S. 2608 54 A. 3008 1 5. The secretary of state shall not file the certificate of incorpo- 2 ration of any such corporation or any amendment thereto unless THE 3 CERTIFICATE INCLUDES A CERTIFICATION THAT the consent or approval of the 4 commissioner or the supervising agency, as the case may be, [is affixed 5 thereon or attached thereto] HAS BEEN OBTAINED. Consent to the filing of 6 such certificate of incorporation shall be based upon findings by the 7 commissioner or supervising agency as to the character and competence of 8 the sponsor. 9 S 36. Subdivision 1 of section 2801-a of the public health law, as 10 amended by section 57 of part A of chapter 58 of the laws of 2010, is 11 amended to read as follows: 12 1. No hospital, as defined in this article, shall be established 13 except with the written approval of the public health and health plan- 14 ning council. No certificate of incorporation of a business membership 15 or not-for-profit corporation shall hereafter be filed which includes 16 among its corporate purposes or powers the establishment or operation of 17 any hospital, as defined in this article, or the solicitation of 18 contributions for any such purpose, or two or more of such purposes, 19 except with the written approval of the public health and health plan- 20 ning council, and when otherwise required by law of a justice of the 21 supreme court, [endorsed on or annexed to] the certificate of incorpo- 22 ration INCLUDES A CERTIFICATION THAT SUCH WRITTEN APPROVAL HAS BEEN 23 OBTAINED. No articles of organization of a limited liability company 24 established pursuant to the New York limited liability company law which 25 includes among its powers or purposes the establishment or operation of 26 any hospital as defined in this article, shall be filed with the depart- 27 ment of state except [upon] WHEN THE ARTICLES OF ORGANIZATION INCLUDE A 28 CERTIFICATION THAT the approval of the public health and health planning 29 council HAS BEEN OBTAINED. 30 S 37. Section 41 of the transportation corporations law, as amended by 31 chapter 782 of the laws of 1969, is amended to read as follows: 32 S 41. Municipal consent to incorporation. No certificate of incorpo- 33 ration of a water-works corporation shall be filed unless [there be 34 annexed thereto a] THE CERTIFICATE INCLUDES A CERTIFICATION THAT consent 35 to the formation of the corporation, signed and acknowledged by the 36 local authorities of each municipality named in such certificate HAS 37 BEEN OBTAINED. Such authorities shall be: in a city, a majority of the 38 members of the board or body having charge of the water supply, or if 39 there be no such board or body, a majority of the members of the local 40 legislative body; in a village, a majority of the members of the board 41 of trustees; in a town outside of a village, the town superintendent of 42 highways and a majority of the members of the town board. Such consent 43 to the formation of the corporation shall not be granted by said local 44 authorities until ten days prior notice in writing of the application 45 for such consent and until an engineering plan for proposed water system 46 specifying location and size and type of wells, pumps, distribution 47 mains and other facilities of the water supply and/or distribution 48 system is furnished by the water works corporation to the local authori- 49 ties and to the county water authority, and to the county water district 50 if there be such authority or district where the proposed corporation 51 seeks to operate; and until said authority or district has reported in 52 writing to the municipality named in the certificate of incorporation 53 its recommendations as to whether or not such consent should be granted, 54 setting forth the reasons for such recommendation and a finding as to 55 whether the proposed water supply and/or distribution system is reason- 56 ably comparable to standards of a county-wide water system and suitable S. 2608 55 A. 3008 1 for eventual integration with such county-wide water system. Said report 2 shall be filed with such municipality on or before the tenth day after 3 the giving of the notice aforesaid. 4 S 38. Subdivision 1 of section 116 of the transportation corporations 5 law, as amended by chapter 828 of the laws of 1970, is amended to read 6 as follows: 7 1. No certificate of incorporation of a sewage-works corporation shall 8 be filed unless [there be annexed thereto] THE CERTIFICATE INCLUDES A 9 CERTIFICATION THAT a certificate or certificates duly executed in behalf 10 of the local governing bodies of the city, town or village, as the case 11 may be, in which any part of a sewer system provided by such corporation 12 is situate and, in the county of Suffolk, an additional certificate duly 13 executed in behalf of the county sewer agency, consenting to the forma- 14 tion of the corporation for the area described in such certificate HAS 15 BEEN OBTAINED. 16 S 39. This act shall take effect immediately; provided however that 17 section twenty-three of this act shall take effect on the sixtieth day 18 after it shall have become a law. 19 SUBPART C 20 Section 1. Paragraph (a) of section 602 of the business corporation 21 law is amended to read as follows: 22 (a) Meetings of shareholders may be held at such place, within or 23 without this state, as may be fixed by or under the by-laws, or if not 24 so fixed, at the office of the corporation in this state. EXCEPT AS 25 PROVIDED IN THE BY-LAWS, SHAREHOLDERS MAY PARTICIPATE IN A MEETING BY 26 MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT BY 27 MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING CAN HEAR EACH 28 OTHER. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE 29 MEETING. 30 S 2. Paragraph (b) of section 402 of the limited liability company law 31 is amended to read as follows: 32 (b) Except as provided in the operating agreement, any member may vote 33 in person [or], by proxy, OR BY ELECTRONIC MEANS. 34 S 3. Paragraphs (a) and (c) of section 603 of the not-for-profit 35 corporation law, paragraph (c) as amended by chapter 961 of the laws of 36 1972, are amended to read as follows: 37 (a) Meetings of members may be held at such place, within or without 38 this state, as may be fixed by or under the by-laws or, if not so fixed, 39 at the office of the corporation in this state. EXCEPT AS PROVIDED IN 40 THE BY-LAWS, MEMBERS MAY PARTICIPATE IN A MEETING BY MEANS OF CONFERENCE 41 TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT BY MEANS OF WHICH ALL 42 PERSONS PARTICIPATING IN THE MEETING CAN HEAR EACH OTHER. SUCH PARTIC- 43 IPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING. 44 (c) Special meetings of the members may be called by the board and by 45 such person or persons as may be authorized by the certificate of incor- 46 poration or the by-laws. In any case, such meetings may be convened by 47 the members entitled to cast ten per cent of the total number of votes 48 entitled to be cast at such meeting, who may, in writing, demand the 49 call of a special meeting specifying the date and month thereof, which 50 shall not be less than two nor more than three months from the date of 51 such written demand. The secretary of the corporation upon receiving the 52 written demand shall promptly give notice of such meeting, or if he 53 fails to do so within five business days thereafter, any member signing 54 such demand may give such notice. The meeting shall be held at the place S. 2608 56 A. 3008 1 fixed in the by-laws or, if not so fixed, at the office of the corpo- 2 ration. EXCEPT AS PROVIDED IN THE BY-LAWS, MEMBERS MAY PARTICIPATE IN A 3 MEETING BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS 4 EQUIPMENT BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING CAN 5 HEAR EACH OTHER. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON 6 AT THE MEETING. 7 S 4. Paragraph (b) of section 121-405 of the partnership law, as added 8 by chapter 950 of the laws of 1990, is amended to read as follows: 9 (b) A partnership agreement may set forth provisions relating to 10 notice of the time, place or purpose of any meeting at which any matter 11 is to be voted on by any general partners, waiver of any such notice, 12 action by consent without a meeting, the establishment of a record date, 13 quorum requirements, voting in person [or], by proxy, OR BY ELECTRONIC 14 MEANS or any other matter with respect to the exercise of any such right 15 to vote. 16 S 5. This act shall take effect immediately. 17 SUBPART D 18 Section 1. Section 401 of the business corporation law, as amended by 19 chapter 900 of the laws of 1974, is amended to read as follows: 20 S 401. Incorporators. 21 One or more natural persons [of the age of] AT LEAST eighteen years 22 [or over] OF AGE OR ANY PARTNERSHIP, LIMITED LIABILITY COMPANY, OR 23 CORPORATION, SINGLY OR JOINTLY WITH OTHERS, may act as incorporators of 24 a corporation to be formed under this chapter. 25 S 2. Subdivisions (a) and (b) of section 203 of the limited liability 26 company law, subdivision (a) as amended by chapter 470 of the laws of 27 1997, is amended to read as follows: 28 (a) One or more NATURAL persons AT LEAST EIGHTEEN YEARS OF AGE OR ANY 29 PARTNERSHIP, LIMITED LIABILITY COMPANY, SINGLY OR JOINTLY WITH OTHERS, 30 may act as an organizer or organizers to form a limited liability compa- 31 ny by (i) preparing the articles of organization of such limited liabil- 32 ity company in accordance with subdivision (e) of this section, (ii) 33 executing such articles of organization in accordance with section two 34 hundred seven of this article and (iii) filing such articles, entitled 35 "Articles of organization of... (name of limited liability company) 36 under section two hundred three of the Limited Liability Company Law," 37 in accordance with section two hundred nine of this article. 38 (b) An organizer may, but need not be, a member of the limited liabil- 39 ity company that he [or], she OR IT forms. 40 S 3. Section 401 of the not-for-profit corporation law, as amended by 41 chapter 901 of the laws of 1974, is amended to read as follows: 42 S 401. Incorporators. 43 One or more natural persons at least eighteen years of age OR ANY 44 PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION, SINGLY OR JOINT- 45 LY WITH OTHERS, may act as incorporators of a corporation to be formed 46 under this chapter. 47 S 4. This act shall take effect immediately. 48 SUBPART E 49 Section 1. Section 19 of the general associations law, as amended by 50 chapter 166 of the laws of 1991, is amended to read as follows: 51 S 19. Service of process. Service of process against an association 52 upon the secretary of state shall be made by personally delivering to S. 2608 57 A. 3008 1 and leaving with [him] THE SECRETARY OF STATE or a deputy [secretary of 2 state or an associate attorney, senior attorney or attorney in the 3 corporation division of the department of state, duplicate copies of 4 such process], OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE 5 TO RECEIVE SUCH SERVICE at the office of the department of state in the 6 city of Albany, DUPLICATE COPIES OF SUCH PROCESS TOGETHER WITH THE STAT- 7 UTORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. [At the time of 8 such service the plaintiff shall pay a fee of forty dollars to the 9 secretary of state which shall be a taxable disbursement. If the cost of 10 registered mail for transmitting a copy of the process shall exceed two 11 dollars, an additional fee equal to such excess shall be paid at the 12 time of the service of such process.] The secretary of state shall 13 [forthwith] PROMPTLY send by CERTIFIED registered mail one of such 14 copies OF SUCH PROCESS to the association at the address fixed for that 15 purpose, as herein provided. If the action or proceeding is instituted 16 in a court of limited jurisdiction, service of process may be made in 17 the manner provided in this section if the cause of action arose within 18 the territorial jurisdiction of the court and the office of the defend- 19 ant, as set forth in its statement filed pursuant to section eighteen of 20 this chapter, is within such territorial jurisdiction. 21 S 2. This act shall take effect immediately. 22 SUBPART F 23 Section 1. Subdivision 1 of section 180 of the tax law, as amended by 24 section 42 of part A of chapter 389 of the laws of 1997, is amended to 25 read as follows: 26 1. (a) Imposition. Every stock corporation incorporated under any law 27 of this state and every corporation formed under the business corpo- 28 ration law of this state shall pay a tax of [one-twentieth of one per 29 centum] TEN DOLLARS upon [the amount of the par value of all] the shares 30 [with a par value] which it is authorized to issue [and a tax of five 31 cents on each share without a par value which it is authorized to 32 issue], and a like tax upon any shares subsequently authorized[, except 33 as hereinafter provided] OR CHANGED. 34 (b) [Changes with respect to shares. (1) Every corporation which shall 35 change shares with par value into shares without par value shall pay a 36 tax of five cents for each share without par value resulting from such 37 change, less one-twentieth of one per centum of the par value on the 38 shares with par value so changed. 39 (2) Every corporation which shall change shares without par value into 40 shares with par value shall pay a tax of one-twentieth of one per centum 41 upon the amount of the par value of the shares resulting from such 42 change, less five cents with respect to each share without par value so 43 changed. 44 (3) Every corporation which shall change shares without par value into 45 shares without par value shall pay a tax of five cents for each share 46 without par value resulting from such change, less five cents with 47 respect to each share without par value so changed, and less five cents 48 with respect to each share without par value not authorized previous to 49 such change but resulting from such change and issued pursuant to the 50 terms upon which such change is made, provided such change is effected 51 after the expiration of five years from the date of the filing of a 52 certificate of incorporation pursuant to the stock corporation law or 53 the business corporation law or a certificate of amendment to effect the 54 change provided for in subparagraph five of paragraph c of subdivision S. 2608 58 A. 3008 1 two of section thirty-five of the stock corporation law or in subpara- 2 graph eleven of paragraph (b) of section eight hundred one of the busi- 3 ness corporation law. 4 (4) Every corporation which shall change shares with par value into 5 both shares with par value and shares without par value shall pay a tax 6 of one-twentieth of one per centum upon the amount of the par value of 7 the shares with par value resulting from such change plus five cents for 8 each share without par value resulting from such change, less one-twen- 9 tieth of one per centum of the par value of the shares with par value so 10 changed. 11 (5) Every corporation which shall change shares without par value into 12 both shares with par value and shares without par value shall pay a tax 13 of one-twentieth of one per centum upon the amount of the par value of 14 the shares with par value resulting from such change plus five cents for 15 each share without par value resulting from such change, less five cents 16 with respect to each share without par value so changed. 17 (c) Minimum tax. Provided, that in no case shall a tax under this 18 section be less than ten dollars. 19 (d)] Payment. Such tax shall be due and payable upon the incorporation 20 of such corporation and upon any subsequent authorization, increase of 21 par value or change of shares. [Except in the case of a railroad corpo- 22 ration, neither the secretary of state nor county clerk shall file any 23 certificate of incorporation, or of amendment increasing capital stock, 24 or the number of par value of shares, or a certificate of merger or 25 consolidation, or certificate of change or authorization of shares, or 26 give any certificate to any such corporation until such tax has been 27 paid, and no stock corporation or corporation formed under the business 28 corporation law shall have or exercise any corporate franchise or 29 powers, or carry on business in this state until such tax shall have 30 been paid. 31 (e)] (C) Mergers and consolidations. In case of the merger or the 32 consolidation of existing corporations into a single corporation, a new 33 corporation resulting from such consolidation or a constituent corpo- 34 ration surviving such merger or consolidation shall be required to pay 35 the tax hereinbefore provided for, only if it is incorporated under the 36 laws of this state[, and then only upon the taxable amount of its capi- 37 tal stock or shares in excess of the aggregate amount of capital stock 38 or shares of such of the constituent corporations as were organized 39 under the laws of this state]. 40 [(f)] (D) Special corporations. This section shall not apply to state 41 and national banks and trust companies or to building, mutual loan, 42 accumulating fund and cooperative associations. [A railroad corporation 43 need not pay such tax at the time of filing its certificate of incorpo- 44 ration, but shall pay the same before the public service commission 45 shall grant a certificate, as required by the railroad law, authorizing 46 the construction of the road as proposed in its articles of association, 47 and such certificate shall not be granted by the public service commis- 48 sion until it is furnished with a receipt for such tax from the secre- 49 tary of state. If the board of railroad commissioners or public service 50 commission shall have heretofore granted, or the public service commis- 51 sion shall hereafter grant, such certificate and upon an appeal from the 52 determination of such board of railroad commissioners or public service 53 commission, such certificate has been or may hereafter be denied, the 54 state treasurer shall refund the amount of tax so paid to the railroad 55 corporation or corporations by which such tax was paid, upon proof of 56 payment being presented and appropriation being made therefor.] S. 2608 59 A. 3008 1 S 2. Subdivision 2 of section 180 of the tax law, as amended by chap- 2 ter 685 of the laws of 1938, is amended to read as follows: 3 2. The tax imposed by this section shall be collected by the state 4 officer in whose office the original certificate of incorporation or 5 [certificate of increase of amount of capital stock or certificate of 6 increase of number or par value of shares or consolidation agreement, 7 or] certificate changing or authorizing shares, as the case may be, is 8 required by law to be filed, and such state officer shall[, except in 9 the case of the certificate of incorporation of a railroad corporation,] 10 collect such tax before filing such certificate and shall note the 11 payment of such tax thereon and shall issue a receipt therefor. 12 S 3. Subdivision 1 of section 181 of the tax law, as amended by 13 section 43 of part A of chapter 389 of the laws of 1997, is amended to 14 read as follows: 15 1. (a) Definition. As used in this section, the term "corporation" 16 includes a joint-stock company or association and any business conducted 17 by a trustee or trustees wherein interest or ownership is evidenced by 18 certificate or other written instrument. 19 (b) Imposition. Every foreign corporation, except banking corporations 20 as defined in paragraph one, two, three, four, five, six, seven or eight 21 of subsection (a) of section fourteen hundred fifty-two of this chapter, 22 fire, marine, casualty and life insurance companies, co-operative 23 fraternal insurance companies, and building and loan associations, doing 24 business in this state, shall pay a license fee of [one-twentieth of one 25 per centum] TEN DOLLARS on its issued [par value] capital stock employed 26 within this state [and five cents on each share of its capital stock 27 without par value employed within this state] AND A LIKE TAX UPON ANY 28 CAPITAL STOCK SUBSEQUENTLY AUTHORIZED OR CHANGED for the privilege of 29 exercising its corporate franchises or carrying on its business in such 30 corporate or organized capacity in this state. [The first payment 31 pursuant to this section shall not be less than ten dollars.] 32 (c) [Recomputation based on changes. In any case where a change is 33 made in the capital share structure of a corporation, or the amount of 34 capital stock employed in this state is increased, the fee shall be 35 recomputed on the basis of such change or increase, and there shall be 36 credited against the fee, as recomputed, the amount of any fee that may 37 have been previously paid pursuant to this section, but, if the fee 38 previously paid exceeds the fee as recomputed, there shall be no refund. 39 (d) Apportionment. The measure of the amount of capital stock employed 40 in this state shall be such a portion of the issued capital stock as the 41 gross assets, exclusive of obligations issued by the United States and 42 cash on hand and on deposit, employed in business by such corporation 43 within this state, bear to the gross assets, exclusive of obligations 44 issued by the United States and cash on hand and on deposit, wherever 45 employed in business by such corporation, except that the amount of 46 capital stock employed in this state by a corporation subject to tax 47 under article nine-A of this chapter shall be that proportion of its 48 capital stock which is equal to the proportion of its business, invest- 49 ment and subsidiary capital allocable within the state pursuant to the 50 provisions of said article. The capital of a corporation invested in the 51 stock of another corporation shall be deemed to be assets located where 52 the assets of the issuing corporation, other than patents, copyrights, 53 trade-marks, contracts and good will, are located. 54 (e) Procedures and collection. The amount of capital upon which such 55 license fees shall be paid shall be fixed by the commissioner, who shall 56 have the same authority to examine the books and records in this state S. 2608 60 A. 3008 1 of such foreign corporations, and the employees thereof as such commis- 2 sioner has in the case of domestic corporations, and the commissioner 3 shall have the same power to issue a warrant for the collection of such 4 license fees, as now exists with regard to domestic corporations. 5 (f)] Article nine-A taxpayers. Notwithstanding any other provision of 6 this section, every foreign corporation subject to tax under article 7 nine-A of this chapter shall also be subject to the license fee imposed 8 by this section for the privilege of exercising its corporate franchise, 9 or of doing business, or of employing capital, or of owning or leasing 10 property in this state in a corporate or organized capacity, or of main- 11 taining an office in this state. 12 S 4. This act shall take effect immediately. 13 S 2. Severability clause. If any clause, sentence, paragraph, subdivi- 14 sion, section or part of this act shall be adjudged by any court of 15 competent jurisdiction to be invalid, such judgment shall not affect, 16 impair, or invalidate the remainder thereof, but shall be confined in 17 its operation to the clause, sentence, paragraph, subdivision, section 18 or part thereof directly involved in the controversy in which such judg- 19 ment shall have been rendered. It is hereby declared to be the intent of 20 the legislature that this act would have been enacted even if such 21 invalid provisions had not been included herein. 22 S 3. This act shall take effect immediately provided, however, that 23 the applicable effective date of Subparts A through F of this act shall 24 be as specifically set forth in the last section of such Subparts. 25 S 2. Severability clause. If any clause, sentence, paragraph, subdivi- 26 sion, section or part of this act shall be adjudged by any court of 27 competent jurisdiction to be invalid, such judgment shall not affect, 28 impair, or invalidate the remainder thereof, but shall be confined in 29 its operation to the clause, sentence, paragraph, subdivision, section 30 or part thereof directly involved in the controversy in which such judg- 31 ment shall have been rendered. It is hereby declared to be the intent of 32 the legislature that this act would have been enacted even if such 33 invalid provisions had not been included herein. 34 S 3. This act shall take effect immediately provided, however, that 35 the applicable effective date of Parts A through Q of this act shall be 36 as specifically set forth in the last section of such Parts.