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.