S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9418

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced by M. of A. COLTON -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend the executive law, the state administrative procedure
  act, the judiciary law and the tax law, in relation to the  denial  of
  the  renewal of professional licenses when the applicant has outstand-
  ing avoidance of state tax debt

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 32 of the executive law, as added by chapter 55 of
the laws of 1992, is amended to read as follows:
  S 32. Authority not to renew. 1. For the purposes  of  this  section[,
"state]:  (A)  "STATE  agency"  shall  mean any state department, board,
bureau, division, commission, committee, public authority, public  bene-
fit  corporation, council, office, or other governmental entity perform-
ing a governmental or proprietary function  for  the  state,  AND  SHALL
INCLUDE THE EDUCATION DEPARTMENT.
  (B)  "TAX  DEBT"  SHALL  MEAN ALL LIABILITIES, INCLUDING UNPAID TAXES,
INTEREST AND PENALTIES, THAT THE COMMISSIONER OF TAXATION AND FINANCE IS
REQUIRED BY LAW TO COLLECT, AND THAT HAVE BEEN REDUCED  TO  JUDGMENT  BY
THE  DOCKETING OF A NEW YORK STATE TAX WARRANT WITH A COUNTY CLERK OR BY
THE FILING OF A COPY THEREOF WITH  THE  DEPARTMENT  OF  STATE,  AND  THE
TAXPAYER  DEBTOR  HAS  FAILED TO PAY SUCH LIABILITIES OR FAILED TO ENTER
INTO A WRITTEN AGREEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE  TO
SETTLE SUCH LIABILITIES.
  2.  Notwithstanding  any  other  provision of law, when a state agency
levies fees or assesses civil fines or penalties for licensing or  regu-
latory matters, such state agency shall, following consultation with the
[state]  department  of  law  and  after such appropriate due process as
required by the provisions of law applicable to such state agency and to
such licensing or regulatory matters,  not  be  required  to  renew  any
license, permit, or certificate of qualification, authority[,] or opera-
tion,  of  any  business,  individual[,] or other entity, which is not a
state agency, municipal corporation or  district  corporation,  if  such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD14691-07-9

A. 9418                             2

business,  individual  or other entity has failed to pay or enter into a
written agreement to settle outstanding fees, civil penalties  or  fines
assessed by such state agency.
  3.  (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EVERY STATE AGENCY
WHICH ISSUES LICENSES,  PERMITS,  CERTIFICATES  OR  REGISTRATIONS  WHICH
SPECIFICALLY  AUTHORIZE  ANY  PERSONS OR ENTITIES TO CONDUCT ANY PROFES-
SION, BUSINESS OR TRADE SHALL DENY THE APPLICATION FOR  THE  RENEWAL  OF
ANY  SUCH  LICENSE, PERMIT, CERTIFICATE OR REGISTRATION TO ANY PERSON OR
ENTITY WHICH FAILS TO PROVIDE THE STATE AGENCY WITH A CERTIFICATE OF TAX
COMPLIANCE ISSUED BY THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT  TO
SECTION  SEVENTEEN  HUNDRED  TWO OF THE TAX LAW, WHICH ATTESTS THAT SUCH
PERSON OR ENTITY DOES NOT HAVE A TAX DEBT.
  (B) IT SHALL BE A CONDITION FOR THE RENEWAL OF  ANY  LICENSE,  PERMIT,
CERTIFICATE  OR REGISTRATION WHICH SPECIFICALLY AUTHORIZES ANY PERSON OR
ENTITY TO CONDUCT ANY PROFESSION, BUSINESS OR TRADE THAT  THE  APPLICANT
FOR ISSUANCE OR RENEWAL PROVIDE THE STATE AGENCY ISSUING OR RENEWING THE
LICENSE,  PERMIT,  CERTIFICATE OR REGISTRATION WITH A CERTIFICATE OF TAX
COMPLIANCE ISSUED BY THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT  TO
SECTION  SEVENTEEN  HUNDRED  TWO  OF THE TAX LAW, WHICH ATTESTS THAT THE
APPLICANT DOES NOT HAVE A TAX DEBT, AND DATED WITHIN SIXTY DAYS  OF  THE
APPLICATION  FOR  AN  INITIAL  OR THE EXPIRATION OF AN EXISTING LICENSE,
PERMIT, CERTIFICATE OR REGISTRATION TO CONDUCT A PROFESSION, BUSINESS OR
TRADE.
  (C) EVERY APPLICATION FOR THE RENEWAL OF A  LICENSE,  PERMIT,  CERTIF-
ICATE OR REGISTRATION WHICH SPECIFICALLY AUTHORIZES ANY PERSON OR ENTITY
TO  CONDUCT  A PROFESSION, BUSINESS OR TRADE SHALL PROVIDE NOTICE TO THE
APPLICANT OF THE REQUIREMENTS OF THIS  SUBDIVISION.  IN  ADDITION,  SUCH
NOTICE SHALL PROVIDE THE APPLICANT WITH THE INTERNET WEBSITE AND MAILING
ADDRESS  FOR  THE  DEPARTMENT OF TAXATION AND FINANCE FROM WHICH CERTIF-
ICATES OF TAX COMPLIANCE WILL BE ISSUED PURSUANT  TO  SECTION  SEVENTEEN
HUNDRED TWO OF THE TAX LAW.
  S 2. Section 401 of the state administrative procedure act, as amended
by  chapter 935 of the laws of 1976, subdivision 1 as amended by chapter
469 of the laws of 1985, subdivision 4 as added by chapter  236  of  the
laws of 1987, is amended to read as follows:
  S 401. Licenses. 1. FOR THE PURPOSES OF THIS ARTICLE:
  (A)  "AGENCY"  SHALL  MEAN  AND INCLUDE THE STATE JUDICIAL BRANCH, THE
UNIFIED COURT SYSTEM, THE OFFICE OF COURT ADMINISTRATION AND THE MEANING
ASCRIBED TO SUCH TERM BY SUBDIVISION ONE OF SECTION ONE HUNDRED  TWO  OF
THIS ACT.
  (B)  "TAX  DEBT"  SHALL  MEAN ALL LIABILITIES, INCLUDING UNPAID TAXES,
INTEREST AND PENALTIES, THAT THE COMMISSIONER OF TAXATION AND FINANCE IS
REQUIRED BY LAW TO COLLECT, AND THAT HAVE BEEN REDUCED TO  JUDGEMENT  BY
THE  DOCKETING OF A NEW YORK STATE TAX WARRANT WITH A COUNTY CLERK OR BY
THE FILING OF A COPY THEREOF WITH  THE  DEPARTMENT  OF  STATE,  AND  THE
TAXPAYER  DEBTOR  HAS  FAILED TO PAY SUCH LIABILITIES OR FAILED TO ENTER
INTO A WRITTEN AGREEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE  TO
SETTLE SUCH LIABILITIES.
  2.  When  licensing  is  required  by law to be preceded by notice and
opportunity for hearing, the provisions of this chapter concerning adju-
dicatory proceedings apply. For purposes of this act, statutes providing
an opportunity for hearing shall be deemed to include statutes providing
an opportunity to be heard.
  [2.] 3.(A) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  EVERY  AGENCY
WHICH  ISSUES  LICENSES,  PERMITS,  CERTIFICATES  OR REGISTRATIONS WHICH
SPECIFICALLY AUTHORIZE ANY PERSONS OR ENTITIES TO  CONDUCT  ANY  PROFES-

A. 9418                             3

SION,  BUSINESS  OR  TRADE SHALL DENY THE APPLICATION FOR THE RENEWAL OF
ANY SUCH LICENSE, PERMIT, CERTIFICATE OR REGISTRATION TO ANY  PERSON  OR
ENTITY  WHICH  FAILS  TO  PROVIDE  THE  AGENCY WITH A CERTIFICATE OF TAX
COMPLIANCE  ISSUED BY THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO
SECTION SEVENTEEN HUNDRED TWO OF THE TAX LAW, WHICH  ATTESTS  THAT  SUCH
PERSON OR ENTITY DOES NOT HAVE A TAX DEBT.
  (B)  IT  SHALL  BE A CONDITION FOR THE RENEWAL OF ANY LICENCE, PERMIT,
CERTIFICATE OR REGISTRATION WHICH SPECIFICALLY AUTHORIZES ANY PERSON  OR
ENTITY  TO  CONDUCT ANY PROFESSION, BUSINESS OR TRADE THAT THE APPLICANT
FOR RENEWAL PROVIDE THE AGENCY ISSUING OR RENEWING THE LICENSE,  PERMIT,
CERTIFICATE  OR REGISTRATION WITH A CERTIFICATE OF TAX COMPLIANCE ISSUED
BY THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION  SEVENTEEN
HUNDRED  TWO  OF  THE TAX LAW, WHICH ATTESTS THAT THE APPLICANT DOES NOT
HAVE A TAX DEBT, AND DATED WITHIN SIXTY DAYS OF  THE  EXPIRATION  OF  AN
EXISTING  LICENSE,  PERMIT,  CERTIFICATE  OR  REGISTRATION  TO CONDUCT A
PROFESSION, BUSINESS OR TRADE.
  (C) EVERY APPLICATION FOR THE RENEWAL OF A  LICENSE,  PERMIT,  CERTIF-
ICATE OR REGISTRATION WHICH SPECIFICALLY AUTHORIZES ANY PERSON OR ENTITY
TO  CONDUCT  A PROFESSION, BUSINESS OR TRADE SHALL PROVIDE NOTICE TO THE
APPLICANT OF THE REQUIREMENTS OF THIS  SUBDIVISION.  IN  ADDITION,  SUCH
NOTICE SHALL PROVIDE THE APPLICANT WITH THE INTERNET WEBSITE AND MAILING
ADDRESS  FOR  THE  DEPARTMENT OF TAXATION AND FINANCE FROM WHICH CERTIF-
ICATES OF TAX COMPLIANCE WILL BE ISSUED PURSUANT  TO  SECTION  SEVENTEEN
HUNDRED TWO OF THE TAX LAW.
  4.  When a licensee has made timely and sufficient application for the
renewal of a license or a new license with reference to any activity  of
a  continuing  nature,  the  existing  license does not expire until the
application has been finally determined by the agency, and, in case  the
application is denied or the terms of the new license limited, until the
last day for seeking review of the agency order or a later date fixed by
order  of  the reviewing court, provided that this subdivision shall not
affect any valid agency action then in effect summarily suspending  such
license.
  [3.]  5.  If  the  agency finds that public health, safety, or welfare
imperatively requires emergency action, and incorporates  a  finding  to
that  effect  in  its  order,  summary  suspension  of  a license may be
ordered, effective on the date specified in such order or  upon  service
of  a  certified  copy of such order on the licensee, whichever shall be
later,  pending  proceedings  for  revocation  or  other  action.  These
proceedings shall be promptly instituted and determined.
  [4.]  6.  When the hearing seeks the revocation of a license or permit
previously granted by the agency, either party shall, upon demand and at
least seven days prior to the hearing, disclose the  evidence  that  the
party  intends  to  introduce  at  the  hearing,  including  documentary
evidence  and  identification  of  witnesses,  provided,  however,   the
provisions  of  this  subdivision  shall  not  be  deemed to require the
disclosure of information or material otherwise protected  by  law  from
disclosure,  including  information  and  material  protected because of
privilege or confidentiality. If, after such disclosure, a party  deter-
mines  to  rely upon other witnesses or information, the party shall, as
soon as practicable, supplement its disclosure by providing the names of
such witnesses or the additional documents.
  S 3. Section 53 of the judiciary law is amended by adding a new subdi-
vision 7 to read as follows:
  7. (A) FOR THE PURPOSES OF THIS SUBDIVISION, "TAX DEBT" SHALL MEAN ALL
LIABILITIES, INCLUDING UNPAID TAXES, INTEREST AND  PENALTIES,  THAT  THE

A. 9418                             4

COMMISSIONER  OF TAXATION AND FINANCE IS REQUIRED BY LAW TO COLLECT, AND
THAT HAVE BEEN REDUCED TO JUDGMENT BY THE DOCKETING OF A NEW YORK  STATE
TAX  WARRANT  WITH  A  CLERK OR BY THE FILING OF A COPY THEREOF WITH THE
DEPARTMENT  OF  STATE,  AND  THE  TAXPAYER DEBTOR HAS FAILED TO PAY SUCH
LIABILITIES OR FAILED TO ENTER INTO A WRITTEN AGREEMENT WITH THE DEPART-
MENT OF TAXATION AND FINANCE TO SETTLE SUCH LIABILITIES.
  (B)(I) EVERY APPELLATE DIVISION SHALL DENY THE APPLICATION FOR RENEWAL
OF ADMISSION TO PRACTICE AS AN ATTORNEY AND COUNSELLOR  AT  LAW  OF  ANY
PERSON  WHO  FAILS TO PROVIDE SUCH APPELLATE DIVISION WITH A CERTIFICATE
OF TAX COMPLIANCE ISSUED BY  THE  DEPARTMENT  OF  TAXATION  AND  FINANCE
PURSUANT  TO SECTION SEVENTEEN HUNDRED TWO OF THE TAX LAW, WHICH ATTESTS
THAT SUCH PERSON DOES NOT HAVE A TAX DEBT.
  (II) THE COURT OF APPEALS SHALL ADOPT RULES ESTABLISHING THAT IT SHALL
BE A CONDITION FOR THE RENEWAL OF ADMISSION TO PRACTICE AS  AN  ATTORNEY
AND  COUNSELLOR AT LAW THAT THE APPLICANT PROVIDE THE APPELLATE DIVISION
WITH A CERTIFICATE OF TAX COMPLIANCE ISSUED BY THE DEPARTMENT  OF  TAXA-
TION  AND  FINANCE  PURSUANT TO SECTION SEVENTEEN HUNDRED TWO OF THE TAX
LAW, WHICH ATTESTS THAT THE APPLICANT DOES NOT  HAVE  A  TAX  DEBT,  AND
DATED WITHIN SIXTY DAYS OF THE EXPIRATION OF AN EXISTING ADMISSION.
  (III)  EVERY  APPLICATION  FOR  RENEWAL OF ADMISSION TO PRACTICE AS AN
ATTORNEY AND COUNSELLOR AT LAW SHALL PROVIDE NOTICE TO THE APPLICANT  OF
THE  REQUIREMENTS  OF  THIS  PARAGRAPH.  IN  ADDITION, SUCH NOTICE SHALL
PROVIDE THE APPLICANT WITH THE INTERNET WEBSITE AND MAILING ADDRESS  FOR
THE  DEPARTMENT  OF  TAXATION AND FINANCE FROM WHICH CERTIFICATES OF TAX
COMPLIANCE WILL BE ISSUED PURSUANT TO SECTION SEVENTEEN HUNDRED  TWO  OF
THE TAX LAW.
  S  4.  The  tax law is amended by adding a new section 1702 to read as
follows:
  S 1702. CERTIFICATE OF TAX COMPLIANCE. 1. AS USED IN THIS SECTION:
  (A) "TAX DEBT" SHALL MEAN ALL  LIABILITIES,  INCLUDING  UNPAID  TAXES,
INTEREST  AND  PENALTIES,  THAT  THE  COMMISSIONER IS REQUIRED BY LAW TO
COLLECT, AND THAT HAVE BEEN REDUCED TO JUDGEMENT BY THE DOCKETING  OF  A
NEW  YORK  STATE  TAX  WARRANT WITH A COUNTY CLERK OR BY THE FILING OF A
COPY THEREOF WITH THE DEPARTMENT OF STATE, THE TAX DEBTOR HAS FAILED  TO
PAY  SUCH  LIABILITIES  OR FAILED TO ENTER INTO A WRITTEN AGREEMENT WITH
THE DEPARTMENT OF TAXATION AND FINANCE TO SETTLE SUCH LIABILITIES.
  (B) "TAX DEBTOR" MEANS A NATURAL PERSON OR ENTITY WITH A TAX DEBT.
  2. THE DEPARTMENT SHALL ESTABLISH, IMPLEMENT, OPERATE AND UPDATE IN  A
TIMELY  MANNER  A  COMPUTER DATA SYSTEM WHICH INCLUDES THE NAME, ADDRESS
AND TAX DEBT OF ALL TAX DEBTORS FILED AND IDENTIFIED  ON  THE  BASIS  OF
EACH  SUCH  DEBTOR'S  FEDERAL  EMPLOYER IDENTIFICATION NUMBER OR FEDERAL
SOCIAL SECURITY NUMBER. SUCH COMPUTER DATA SYSTEM SHALL BE ACCESSIBLE TO
ANY TAXPAYER WHO PROVIDES HIS, HER OR ITS FEDERAL  EMPLOYER  IDENTIFICA-
TION  NUMBER  OR  FEDERAL SOCIAL SECURITY NUMBER. ACCESS TO THE COMPUTER
DATA SYSTEM FOR THE  TAX  COMPLIANCE  STATUS  OF  A  TAXPAYER  SHALL  BE
PROVIDED BY MEANS OF AN INTERNET WEBSITE ESTABLISHED FOR SUCH PURPOSE BY
THE DEPARTMENT OR BY SUBMITTING A WRITTEN INQUIRY BY FIRST CLASS MAIL TO
THE DEPARTMENT.
  3. UPON RECEIPT OF ANY TAX COMPLIANCE INQUIRY, WHETHER BY THE INTERNET
OR  BY  MAIL,  THE DEPARTMENT SHALL PROVIDE THE TAXPAYER WITH A DETERMI-
NATION OF WHETHER HE, SHE OR IT IS A TAX DEBTOR. IN THE EVENT  THAT  THE
TAXPAYER  IS  NOT A TAX DEBTOR, THE DEPARTMENT SHALL PROVIDE, BY MAIL OR
INTERNET, A CERTIFICATE OF TAX COMPLIANCE. EACH SUCH  CERTIFICATE  SHALL
INCLUDE THE NAME, ADDRESS, AND FEDERAL EMPLOYER IDENTIFICATION NUMBER OR
SOCIAL  SECURITY  NUMBER OF THE TAXPAYER, HAVE THE DATE OF ITS ISSUANCE,
AND INCLUDE A SPECIFIC CASE NUMBER  FOR  EACH  INQUIRY  SUBMITTED  BY  A

A. 9418                             5

TAXPAYER.  EVERY TAX COMPLIANCE INQUIRY SUBMITTED BY MAIL SHALL BE PROC-
ESSED AND A DETERMINATION THEREON RETURNED TO THE TAXPAYER WITHIN  SEVEN
DAYS OF THE RECEIPT OF THE INQUIRY BY THE DEPARTMENT.  IN THE EVENT THAT
THE  COMPUTER  DATA  SYSTEM  IS AT ANY TIME UNABLE TO PROVIDE A DETERMI-
NATION TO A TAX COMPLIANCE INQUIRY FOR A PERIOD OF MORE THAN  TWO  DAYS,
THE  DEPARTMENT  SHALL ISSUE THE TAXPAYER A TEMPORARY CERTIFICATE OF TAX
COMPLIANCE WHICH SHALL AUTHORIZE THE DURATION OF ANY  EXISTING  LICENSE,
PERMIT,  CERTIFICATE,  REGISTRATION  OR ADMISSION TO CONDUCT ANY PROFES-
SION, TRADE OR BUSINESS FOR AN ADDITIONAL THIRTY DAYS.
  4. IN THE EVENT A TAXPAYER IS DETERMINED TO  BE  A  TAX  DEBTOR,  SUCH
TAXPAYER MAY SUBMIT AN APPLICATION TO THE COMMISSIONER ON THE BASIS THAT
HIS,  HER  OR  ITS TAX LIABILITIES HAVE BEEN PAID, THAT THE TAXPAYER HAS
ENTERED INTO AND COMPLIED WITH A WRITTEN AGREEMENT WITH  THE  DEPARTMENT
TO SETTLE HIS, HER OR ITS TAX LIABILITIES, OR THE TAXPAYER WAS WRONGFUL-
LY  IDENTIFIED  IN  THE INQUIRY. EVERY SUCH APPLICATION SHALL BE ADJUDI-
CATED BY THE COMMISSIONER WITHIN TEN DAYS OF THE RECEIPT THEREOF.
  S 5. This act shall take effect June 1, 2011, provided, however,  that
effective immediately, any and all rules, regulations and actions neces-
sary  to  implement the provisions of this act on its effective date are
authorized and directed to be completed on or before such date.