STATE OF NEW YORK
________________________________________________________________________
4460--A
2017-2018 Regular Sessions
IN SENATE
February 15, 2017
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Introduced by Sen. TEDISCO -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the legislative law, the public officers law and the tax
law, in relation to eligibility to assume office for persons owing
past-due tax liabilities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The legislative law is amended by adding a new section 3-a
2 to read as follows:
3 § 3-a. Past-due tax liabilities of members-elect. 1. The legislature
4 shall require a tax clearance from the department of taxation and
5 finance, as provided for in section one hundred seventy-one-w of the tax
6 law, for each member-elect of the legislature. No person elected to the
7 legislature having past-due tax liabilities, as defined in subdivision
8 one of section one hundred seventy-one-w of the tax law, or otherwise
9 denied a tax clearance by the department of taxation and finance pursu-
10 ant to such section, shall be sworn into or assume office unless and
11 until such past-due tax liabilities are satisfied, settled, or made
12 subject to a payment plan established by the department of taxation and
13 finance and in which such person is in good standing.
14 2. If, after six months subsequent to the date on which such member-e-
15 lect would have been sworn into office but for their owing past-due tax
16 liabilities, such past-due tax liabilities have not been satisfied,
17 settled, or made subject to a payment plan established by the department
18 of taxation and finance and in which such person is in good standing,
19 then a special election shall be held to fill such office.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06485-02-8
S. 4460--A 2
1 § 2. Section 3 of the public officers law is amended by adding a new
2 subdivision 1-b to read as follows:
3 1-b. (i) Any person elected to the office of a statewide elected offi-
4 cial, which for the purposes of this section shall mean the governor,
5 lieutenant governor, comptroller or attorney general, shall, upon
6 certification of such person's election, request a tax clearance from
7 the department of taxation and finance, as provided for in section one
8 hundred seventy-one-w of the tax law. No such person having past-due tax
9 liabilities, as defined in subdivision one of section one hundred seven-
10 ty-one-w of the tax law, or otherwise denied a tax clearance by the
11 department of taxation and finance pursuant to such section, shall be
12 sworn into or assume office unless and until such past-due tax liabil-
13 ities are satisfied, settled, or made subject to a payment plan estab-
14 lished by the department of taxation and finance and in which such
15 person is in good standing.
16 (ii) If, after six months subsequent to the date on which a person
17 elected to statewide office would have been sworn into office but for
18 their owing past-due tax liabilities, such past-due tax liabilities have
19 not been satisfied, settled, or made subject to a payment plan estab-
20 lished by the department of taxation and finance and in which such
21 person is in good standing, then a special election shall be held to
22 fill such office.
23 § 3. The tax law is amended by adding a new section 171-w to read as
24 follows:
25 § 171-w. Enforcement of delinquent tax liabilities through tax clear-
26 ances. (1) For the purposes of this section, the term "tax liabilities"
27 shall mean any tax, surcharge, or fee administered by the commissioner,
28 or any penalty or interest owed by an individual or entity. The term
29 "past-due tax liabilities" means any unpaid tax liabilities that have
30 become fixed and final such that the taxpayer no longer has any right to
31 administrative or judicial review. The term "government entity" means
32 the state of New York, or any of its agencies, political subdivisions,
33 instrumentalities, public corporations (including a public corporation
34 created pursuant to agreement or compact with another state or Canada),
35 or combination thereof.
36 (2) The commissioner, or his or her designee, shall cooperate with any
37 government entity that is required by law or has elected to require tax
38 clearances to establish procedures by which the department shall receive
39 a tax clearance request and transmit such tax clearance to the govern-
40 ment entity, and any other procedures deemed necessary to carry out the
41 provisions of this section. These procedures shall, to the extent prac-
42 ticable, require secure electronic communication between the department
43 and the requesting government entity for the transmission of tax clear-
44 ance requests to the department and transmission of tax clearances to
45 the requesting entity. Notwithstanding any other law to the contrary, a
46 government entity shall be authorized to share any data or information
47 with the department that is necessary to ensure the proper matching of a
48 person who is the subject of a tax clearance request to the tax records
49 maintained by the department.
50 (3) Upon receipt of a tax clearance request, the department shall
51 examine its records to determine whether the subject of the tax clear-
52 ance request has past-due tax liabilities equal to or in excess of the
53 dollar threshold applicable for such tax clearance request. When a tax
54 clearance request so requires, the department shall also determine
55 whether (i) the subject of such request has complied with applicable tax
56 return filing requirements for each of the past three years; and/or (ii)
S. 4460--A 3
1 whether a subject of such request that is an individual or entity that
2 is a person required to register pursuant to section one thousand one
3 hundred thirty-four of this chapter is registered pursuant to such
4 section. The department shall deny a tax clearance if it determines that
5 the subject of a tax clearance request has past-due tax liabilities
6 equal to or in excess of the applicable threshold or, when the tax
7 clearance request so requires, has not complied with applicable return
8 filing and/or registration requirements.
9 (4) If a tax clearance is denied, the government entity that requested
10 the clearance shall provide notice to the subject of the request to
11 contact the department. Such notice shall be made by first class mail
12 with a certificate of mailing and a copy of such notice also shall be
13 provided to the department. When the subject of the request contacts the
14 department, the department shall inform him or her of the basis for the
15 denial of the tax clearance and shall also inform such person (i) that a
16 tax clearance denied due to past-due tax liabilities may be issued once
17 the taxpayer fully satisfies past-due tax liabilities or makes payment
18 arrangements satisfactory to the commissioner; (ii) that a tax clearance
19 denied due to failure to file tax returns may be issued once the indi-
20 vidual has satisfied the applicable return filing requirements; (iii)
21 that a tax clearance denied for failure to register pursuant to section
22 one thousand one hundred thirty-four of this chapter may be issued once
23 the individual has registered pursuant to such section; and (iv) the
24 grounds for challenging the denial of a tax clearance listed in subdivi-
25 sion five of this section.
26 (5) (a) Notwithstanding any other provision of law, and except as
27 specifically provided herein, an individual denied a tax clearance shall
28 have no right to commence a court action or proceeding or seek any other
29 legal recourse against the department or the government entity related
30 to the denial of a tax clearance by the department.
31 (b) An individual seeking to challenge the denial of a tax clearance
32 must protest to the department or the division of tax appeals no later
33 than sixty days from the date of the notification to the individual that
34 the tax clearance was denied. An individual may challenge a department
35 finding of past-due tax liabilities only on the grounds that (i) the
36 individual or entity denied the tax clearance is not the individual or
37 entity with the past-due tax liabilities at issue or (ii) the past-due
38 tax liabilities were satisfied. An individual may challenge a depart-
39 ment finding of failure to comply with tax return filing requirements
40 only on the grounds that all required tax returns have been filed for
41 each of the past three years.
42 (c) Nothing in this subdivision is intended to limit any individual
43 from seeking relief from joint and several liability pursuant to section
44 six hundred fifty-four of this chapter, to the extent that he or she is
45 eligible pursuant to that section, or establishing to the department
46 that the enforcement of the underlying tax liabilities has been stayed
47 by the filing of a petition pursuant to the Bankruptcy Code of 1978
48 (Title Eleven of the United States Code).
49 (6) Notwithstanding any other provision of law, the department may
50 exchange with a government entity any data or information that, in the
51 discretion of the commissioner, is necessary for the implementation of a
52 tax clearance requirement. However, no government entity may re-disclose
53 this information to any other entity or person, other than for the
54 purpose of informing the individual that a required tax clearance has
55 been denied, unless otherwise permitted by law.
S. 4460--A 4
1 (7) Except as otherwise provided in this section, the activities to
2 collect past-due tax liabilities undertaken by the department pursuant
3 to this section shall not in any way limit, restrict or impair the
4 department from exercising any other authority to collect or enforce tax
5 liabilities under any other applicable provision of law.
6 (8) Except as otherwise provided in this section, the provisions of
7 this section are not applicable to the tax clearance required by section
8 one hundred seventy-one-v of this article.
9 § 4. This act shall take effect June 1, 2018; provided, however, that
10 the department of taxation and finance, and any other government entity
11 electing to receive a tax clearance from the department of taxation and
12 finance may work to execute the necessary procedures and technical
13 changes to support the tax clearance process as described in this act
14 before that date; provided, further, that this effective date will not
15 impact the administration of any tax clearance program authorized by
16 another provision of law.
