senate Bill S4671

2011-2012 Legislative Session

Relates to the disqualification of tax delinquent bidders with some exceptions

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (6)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
Jun 04, 2012 advanced to third reading
May 31, 2012 2nd report cal.
May 30, 2012 1st report cal.954
Jan 04, 2012 referred to finance
Apr 14, 2011 referred to finance

Votes

view votes

May 30, 2012 - Finance committee Vote

S4671
31
1
committee
31
Aye
1
Nay
1
Aye with Reservations
0
Absent
2
Excused
0
Abstained
show Finance committee vote details

S4671 - Bill Details

See Assembly Version of this Bill:
A3512
Current Committee:
Senate Rules
Law Section:
State Finance Law
Laws Affected:
Add §169, St Fin L
Versions Introduced in 2009-2010 Legislative Session:
S4185, A6061

S4671 - Bill Texts

view summary

Relates to the disqualification of tax delinquent bidders with some exceptions; provides that no agency shall be permitted to enter into a contract with a bidder or subcontractor who has an unsatisfied warrant filed against him or her pursuant to provisions of the tax law.

view sponsor memo
BILL NUMBER:S4671

TITLE OF BILL:

An act
to amend the state finance law, in relation to the disqualification of
tax
delinquent bidders and certain exceptions

PURPOSE OR GENERAL IDEA OF BILL:

The bill requires all state agencies, including public authorities,
and public benefit corporations to check on the tax delinquency
status of each vendor prior to entering into a contract or
subcontract to insure that contracts and subcontracts are awarded or
approved only to those firms in good standing with the New York State
Department of Taxation and Finance, with exceptions to be made for
certain circumstances.

SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds a new §169 to the State Finance Law as
follows:

* Subdivision 1 of § 169 provides that no state agency, public
authority, or public benefit corporation can award a contract or
subcontract to any vendor until it has verified that the bidder is
free of tax warrants by the Department of Taxation and Finance.

* Subdivision 2, paragraph (a) allows for an exception in cases where
there exists an emergency condition which requires immediate action.

* Subdivision 2, paragraph (b) allows for an exception in cases where
the tax delinquent bidder is the only available source of the item to
be purchased.

* Subdivision 2, paragraph (c) allows for an exception in cases where
the tax delinquent bidder has entered into a repayment agreement or
the Department of Taxation and Finance has declared the outstanding
tax warrant to be de minimis.

* Subdivision 3 defines an "emergency condition" as a condition caused
by a natural disaster, fire, or other casualty, or another
unanticipated and unexpected occurrence.

* Subdivision 4 requires that an agency shall inform the Comptroller
of instances in which it awards a contract based upon a determination
that an emergency condition exists and that the Comptroller may void
such contracts if the agency has not satisfied the conditions for
awarding a contract under such a determination.

* Subdivision 5 grants authority to the Comptroller to determine
whether proof is sufficient to satisfy the tax warrant for purposes
of subdivision 2, paragraph (c).

Section two of the bill specifies the effective date.


JUSTIFICATION:

The Department of Taxation and Finance provides the Department of
State with continuous notice of tax warrants filed against any
business entity for failure to pay tax. Warrants are filed at the end
of the taxpayer's appeal process, after the taxpayer has exhausted
all opportunities to legitimately challenge the tax liability. A
pre-award check of this database would allow any contracting entity
to immediately determine whether or not the law bidder or proposed
subcontractor is in good standing with the Tax Department and
Department of State. Those bidders and subcontractors that have
outstanding warrants against them could remedy their problem by
paying in full to the Department of Taxation and Finance all back
taxes, penalties, and interest awed. A version of this bill was
passed by the Assembly and Senate in 2007 and vetoed by the Governor
due to technical issues. These issues have been addressed through
new provisions that provide exceptions far emergency conditions, sale
source providers, and instances where the bidder is attempting in
good faith to satisfy the tax warrant or where the amount of the
delinquency is de minimus.

PRIOR LEGISLATIVE HISTORY:

1999-00: A.7338 Passed Assembly
2001-02: A.7053 Passed Assembly
2003-04: A.6505 Passed Assembly/S.4216 Senate 3rd Reading Cal.
2006: A.10377-A Assembly 3rd Reading Cal./S.2791-A Passed Senate
2007: A.7476/S.836 Veto
18 of 2007
2008: A.10241/S.7568 Veto
31 of 2008
2009-10: S.4185 Finance Cmte./A.6061 Passed Assembly

FISCAL IMPLICATIONS:

This legislation will result in an increase in the amount and the
timeliness of tax collections, interest, and penalties.

EFFECTIVE DATE:

This act shall take effect an the 120th day after it shall have became
law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4671

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 14, 2011
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to the  disqualifica-
  tion of tax delinquent bidders and certain exceptions

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

  Section 1. The state finance law is amended by adding  a  new  section
169 to read as follows:
  S  169.  DISQUALIFICATION  OF TAX DELINQUENT BIDDERS. 1. SUBSEQUENT TO
RECEIVING BIDS AND PRIOR TO ENTERING INTO  A  CONTRACT  WITH  A  BIDDER,
WHERE  THAT  BIDDER  HAS  OR WILL CONDUCT BUSINESS IN NEW YORK STATE, OR
PRIOR TO FORMALLY APPROVING A CONTRACT BETWEEN A BIDDER  AND  A  SUBCON-
TRACTOR,  EACH  AGENCY,  AS  DEFINED IN SECTION NINETY-TWO OF THE PUBLIC
OFFICERS LAW, SHALL REVIEW THE  LIST  OF  WARRANTS  TRANSMITTED  TO  THE
DEPARTMENT  OF  STATE BY THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT
TO SECTION SIX OF THE TAX LAW TO DETERMINE WHETHER THE BIDDER OR SUBCON-
TRACTOR HAS AN UNSATISFIED TAX WARRANT FILED AGAINST HIM OR HER WITH THE
DEPARTMENT OF STATE. NO AGENCY, AS DEFINED IN SECTION NINETY-TWO OF  THE
PUBLIC  OFFICERS  LAW, SHALL BE PERMITTED TO ENTER INTO A CONTRACT WITH,
OR FORMALLY APPROVE A SUBCONTRACT TO, A BIDDER OR SUBCONTRACTOR WHO  HAS
AN  UNSATISFIED TAX WARRANT FILED AGAINST HIM OR HER PURSUANT TO SECTION
SIX OF THE TAX LAW.
  2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,
A  CONTRACT MAY BE ENTERED INTO WITH A BIDDER WHO HAS AN OUTSTANDING TAX
WARRANT IF:
  A. THE AGENCY DETERMINES THAT AN EMERGENCY CONDITION EXISTS  INVOLVING
DANGER TO THE LIFE, HEALTH, OR SAFETY OF ANY PERSON OR THE SAFETY OF ANY
STRUCTURE  THAT  REQUIRES IMMEDIATE ACTION AND THE NATURE OF THE WORK IS
SUCH THAT IT WOULD BE IMPRACTICAL AND AGAINST  THE  PUBLIC  INTEREST  TO
HAVE  PUBLIC  LETTING  OF  THE  CONTRACT, OR THE ITEM TO BE PURCHASED IS
ESSENTIAL TO THE  EFFICIENT  OPERATION  OR  THE  ADEQUATE  PROVISION  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01013-01-1

S. 4671                             2

SERVICE  AND  AS  A  CONSEQUENCE OF AN EMERGENCY CONDITION SUCH PURCHASE
CANNOT AWAIT COMPETITIVE BIDDING; OR
  B. THE ITEM TO BE PURCHASED IS AVAILABLE ONLY FROM A SINGLE SOURCE AND
THAT SOURCE IS THE BIDDER WITH THE OUTSTANDING TAX WARRANT; OR
  C.  THE BIDDER HAS DISCLOSED THE EXISTENCE OF THE TAX WARRANT PRIOR TO
OFFERING HIS OR HER BID, HAS PROVIDED THE AGENCY WITH  PROOF  SUFFICIENT
TO  THE  COMPTROLLER  THAT  THE  BIDDER IS, IN GOOD FAITH, ATTEMPTING TO
SATISFY THE TAX WARRANT, AND/OR THE DEPARTMENT OF TAXATION  AND  FINANCE
HAS  DECLARED THE OUTSTANDING TAX WARRANT TO BE DE MINIMIS IN NATURE AND
THUS DOES NOT WARRANT THE DISQUALIFICATION OF THE BIDDER.
  3. FOR THE PURPOSES OF PARAGRAPH A OF SUBDIVISION TWO OF THIS SECTION,
THE TERM "EMERGENCY CONDITION"  SHALL  MEAN  A  CONDITION  CAUSED  BY  A
NATURAL  DISASTER,  FIRE,  OR  OTHER CASUALTY, OR ANOTHER UNANTICIPATED,
SUDDEN, AND UNEXPECTED OCCURRENCE THAT REQUIRES THE IMMEDIATE  ATTENTION
AND ACTION OF THE AGENCY.
  4. PRIOR TO AWARDING A CONTRACT UNDER THE PROVISIONS OF PARAGRAPH A OF
SUBDIVISION TWO OF THIS SECTION, THE AGENCY SHALL NOTIFY THE COMPTROLLER
OF  ITS  INTENT TO AWARD THE CONTRACT AND SHALL SPECIFY THE REASONS USED
BY THE AGENCY TO MAKE THE  REQUIRED  DETERMINATIONS.    THE  COMPTROLLER
SHALL  REVIEW  THE  DETERMINATIONS OF THE AGENCY AND IF, IN THE DETERMI-
NATION OF THE COMPTROLLER, THE REASONS SPECIFIED BY THE  AGENCY  DO  NOT
SATISFY  THE  REQUIREMENTS  OF  PARAGRAPH  A  OF SUBDIVISION TWO OF THIS
SECTION, THE COMPTROLLER SHALL HAVE THE AUTHORITY TO  DEEM  THE  AWARDED
CONTRACT  NULL  AND  VOID AND UNENFORCEABLE AND TO REQUIRE THE AGENCY TO
USE THE COMPETITIVE BIDDING PROCESS FOR THE CONTRACT.
  5. FOR PURPOSES OF PARAGRAPH C OF SUBDIVISION TWO OF THIS SECTION, THE
COMPTROLLER SHALL HAVE THE AUTHORITY TO MAKE A DETERMINATION OF  WHETHER
PROOF SUFFICIENT EXISTS TO SATISFY THE TAX WARRANT.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided that all state agencies, as defined
in  paragraph  (g) of subdivision 1 of section 73 of the public officers
law, are authorized to promulgate any and all rules and regulations  and
take any other measures necessary to implement this act on its effective
date on or before such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.