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

                                 5460--A
    Cal. No. 904

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 24, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- (at request of the State Comptroller) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Investigations and Government Operations -- committee
  discharged  and  said  bill  committed  to  the  Committee on Banks --
  reported favorably from  said  committee,  ordered  to  first  report,
  amended  on  first  report,  ordered  to  a  second  report, and to be
  reprinted as amended, retaining its  place  in  the  order  of  second
  report

AN ACT to amend the tax law, in relation to access to the wage reporting
  system

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

  Section 1. Section 171-a of the tax law, as added by  chapter  545  of
the  laws of 1978, is amended by adding a new subdivision 6-b to read as
follows:
  (6-B) NOTWITHSTANDING ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  THE
COMMISSIONER  SHALL  ENTER  INTO  A COOPERATIVE AGREEMENT WITH THE STATE
COMPTROLLER, WHICH AGREEMENT SHALL PROVIDE FOR THE UTILIZATION OF INFOR-
MATION OBTAINED  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS  SECTION,  FOR
PURPOSES  OF  DETERMINING  THE  AMOUNT  A RETIRED MEMBER OF A RETIREMENT
SYSTEM OR PENSION PLAN ADMINISTERED BY THE STATE OR ANY OF ITS POLITICAL
SUBDIVISIONS WHO  RETURNS  TO  PUBLIC  EMPLOYMENT  HAS  EARNED  FOR  THE
PURPOSES  OF  SECTIONS  ONE HUNDRED TWO, TWO HUNDRED ELEVEN, TWO HUNDRED
TWELVE AND FOUR HUNDRED TWO OF THE RETIREMENT AND SOCIAL SECURITY LAW.
  S 2. Paragraph 3 of subsection (e) of section 697 of the tax  law,  as
amended  by  chapter  182  of  the  laws  of 2010, is amended to read as
follows:
  (3) Nothing herein shall be construed to prohibit the department,  its
officers  or  employees  from  furnishing  information  to the office of
temporary and disability assistance relating to the payment of the cred-
it for certain household and dependent care services necessary for gain-

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

                                                           LBD11516-03-1

S. 5460--A                          2

ful employment under subsection (c) of section six hundred six  of  this
article and the earned income credit under subsection (d) of section six
hundred  six of this article and the enhanced earned income credit under
subsection (d-1) of section six hundred six of this article, or pursuant
to  a  local law enacted by a city having a population of one million or
more pursuant to subsection (f) of section thirteen hundred ten of  this
chapter,  only  to  the  extent  necessary  to calculate qualified state
expenditures under paragraph seven of subdivision (a)  of  section  four
hundred nine of the federal social security act or to document the prop-
er  expenditure of federal temporary assistance for needy families funds
under section four hundred three of such act. The  office  of  temporary
and  disability assistance may redisclose such information to the United
States department of health and human services only to the extent neces-
sary to calculate such qualified state expenditures or to  document  the
proper  expenditure of such federal temporary assistance for needy fami-
lies funds. Nothing herein shall be construed to prohibit  the  delivery
by  the  commissioner to a commissioner of jurors, appointed pursuant to
section five hundred four of the judiciary law, or, in  counties  within
cities  having  a population of one million or more, to the county clerk
of such county, of a mailing list of  individuals  to  whom  income  tax
forms are mailed by the commissioner for the sole purpose of compiling a
list of prospective jurors as provided in article sixteen of the judici-
ary law. Provided, however, such delivery shall only be made pursuant to
an order of the chief administrator of the courts, appointed pursuant to
section  two  hundred  ten  of  the  judiciary law. No such order may be
issued unless such chief administrator is satisfied  that  such  mailing
list  is  needed  to compile a proper list of prospective jurors for the
county for which such order is sought and that, in view of the responsi-
bilities imposed by the various laws of the state on the department,  it
is  reasonable  to  require  the commissioner to furnish such list. Such
order shall provide that such list shall be used for the sole purpose of
compiling a list of prospective jurors and  that  such  commissioner  of
jurors,  or  such county clerk, shall take all necessary steps to insure
that the list is kept confidential and that there is no unauthorized use
or disclosure  of  such  list.  Furthermore,  nothing  herein  shall  be
construed  to  prohibit  the  delivery  to a taxpayer or his or her duly
authorized representative of a certified copy of any  return  or  report
filed  in  connection with his or her tax or to prohibit the publication
of statistics so classified as to prevent the identification of  partic-
ular  reports or returns and the items thereof, or the inspection by the
attorney general or other legal representatives  of  the  state  of  the
report  or return of any taxpayer or of any employer filed under section
one hundred seventy-one-h  of  this  chapter,  where  such  taxpayer  or
employer  shall bring action to set aside or review the tax based there-
on, or against whom an action or proceeding under this chapter or  under
this  chapter and article eighteen of the labor law has been recommended
by the commissioner, the commissioner of labor with respect to unemploy-
ment insurance matters, or the attorney general or has been  instituted,
or  the inspection of the reports or returns required under this article
by the comptroller or duly designated officer or employee of  the  state
department  of  audit and control, for purposes of the audit of a refund
of any tax paid by a taxpayer under this article, or the  furnishing  to
the  state  department  of  labor  of unemployment insurance information
obtained or derived from quarterly combined withholding, wage  reporting
and  unemployment  insurance  returns  required to be filed by employers
pursuant to paragraph four of subsection  (a)  of  section  six  hundred

S. 5460--A                          3

seventy-four  of  this  article,  for purposes of administration of such
department's  unemployment  insurance   program,   employment   services
program,  federal and state employment and training programs, employment
statistics  and  labor  market  information  programs, worker protection
programs, federal programs for which the department  has  administrative
responsibility  or  for other purposes deemed appropriate by the commis-
sioner of labor consistent with the provisions of  the  labor  law,  and
redisclosure  of  such  information in accordance with the provisions of
sections five hundred thirty-six and five hundred  thirty-seven  of  the
labor  law  or  any other applicable law, or the furnishing to the state
office of temporary and disability assistance of information obtained or
derived from New York state personal income tax returns as described  in
paragraph (b) of subdivision two of section one hundred seventy-one-g of
this chapter for the purpose of reviewing support orders enforced pursu-
ant to title six-A of article three of the social services law to aid in
the  determination  of  whether  such  orders should be adjusted, or the
furnishing of information obtained  from  the  reports  required  to  be
submitted  by  employers  regarding  newly  hired  or re-hired employees
pursuant to section one hundred seventy-one-h of  this  chapter  to  the
state  office  of temporary and disability assistance, the state depart-
ment of health, the state department of labor and the  workers'  compen-
sation  board  for  purposes  of  administration  of  the  child support
enforcement program, verification of individuals' eligibility for one or
more of the programs specified  in  subsection  (b)  of  section  eleven
hundred  thirty-seven  of  the federal social security act and for other
public assistance programs authorized by state law,  and  administration
of  the  state's employment security and workers' compensation programs,
and to the national directory  of  new  hires  established  pursuant  to
section  four  hundred  fifty-three-A of the federal social security act
for the purposes specified in such section, or  the  furnishing  to  the
state  office of temporary and disability assistance of the amount of an
overpayment of income tax and interest thereon certified  to  the  comp-
troller  to be credited against past-due support pursuant to section one
hundred seventy-one-c of this chapter and of the name and social securi-
ty number of the taxpayer who made such overpayment, or  the  disclosing
to  the  commissioner  of  finance  of the city of New York, pursuant to
section one hundred seventy-one-l of this chapter, of the amount  of  an
overpayment  and  interest  thereon  certified  to the comptroller to be
credited against a city of New York tax warrant judgment debt and of the
name and social security number of the taxpayer who made  such  overpay-
ment,  or the furnishing to the New York state higher education services
corporation of the amount of an overpayment of income tax  and  interest
thereon  certified  to the comptroller to be credited against the amount
of a default in repayment of any education loan  debt,  including  judg-
ments,  owed  to  the federal or New York state government that is being
collected by the New York state higher education  services  corporation,
and of the name and social security number of the taxpayer who made such
overpayment,  or the furnishing to the state department of health of the
information required by paragraph (f) of subdivision two and subdivision
two-a of section two thousand five hundred eleven of the  public  health
law  and  by  subdivision eight of section three hundred sixty-six-a and
paragraphs (b) and (d) of  subdivision  two  of  section  three  hundred
sixty-nine-ee of the social services law, or the furnishing to the state
university  of  New York or the city university of New York respectively
or the attorney general on behalf of such state or city  university  the
amount of an overpayment of income tax and interest thereon certified to

S. 5460--A                          4

the comptroller to be credited against the amount of a default in repay-
ment  of  a state university loan pursuant to section one hundred seven-
ty-one-e of this chapter and of the name and social security  number  of
the  taxpayer  who  made  such overpayment, or the disclosing to a state
agency, pursuant to section one hundred seventy-one-f of  this  chapter,
of  the  amount  of an overpayment and interest thereon certified to the
comptroller to be credited against a past-due legally  enforceable  debt
owed  to  such  agency and of the name and social security number of the
taxpayer who made such overpayment, or the furnishing  of  employee  and
employer  information obtained through the wage reporting system, pursu-
ant to section one hundred seventy-one-a of this chapter,  as  added  by
chapter  five  hundred forty-five of the laws of nineteen hundred seven-
ty-eight, to the state office of temporary  and  disability  assistance,
the  department of health or to the state office of the medicaid inspec-
tor general for the purpose of verifying eligibility for and entitlement
to amounts of benefits under the social services law or similar  law  of
another  jurisdiction,  locating absent parents or other persons legally
responsible for the support of applicants for or  recipients  of  public
assistance  and  care  under the social services law and persons legally
responsible for the support of a recipient of services under section one
hundred eleven-g of the social services law and, in  appropriate  cases,
establishing support obligations pursuant to the social services law and
the family court act or similar provision of law of another jurisdiction
for the purpose of evaluating the effect on earnings of participation in
employment, training or other programs designed to promote self-suffici-
ency  authorized  pursuant to the social services law by current recipi-
ents of public assistance and care and by former applicants and  recipi-
ents  of  public assistance and care, (except that with regard to former
recipients, information which relates to a particular  former  recipient
shall  be  provided  with client identifying data deleted), to the state
office of temporary and disability assistance for the purpose of  deter-
mining  the eligibility of any child in the custody, care and custody or
custody and guardianship of a local social services district or  of  the
office  of  children and family services for federal payments for foster
care and adoption assistance pursuant to the provisions of title IV-E of
the federal social security act by providing information with respect to
the parents, the stepparents, the child and the siblings  of  the  child
who  were  living  in  the same household as such child during the month
that the court proceedings leading  to  the  child's  removal  from  the
household  were  initiated,  or the written instrument transferring care
and custody of the child pursuant to the  provisions  of  section  three
hundred  fifty-eight-a  or  three  hundred  eighty-four-a  of the social
services law was signed, provided however that the office  of  temporary
and disability assistance shall only use the information obtained pursu-
ant  to  this subdivision for the purpose of determining the eligibility
of such child for federal payments for foster care and adoption  assist-
ance  pursuant  to  the  provisions  of title IV-E of the federal social
security act, and to the state department of labor, or other individuals
designated by the commissioner of labor, for the purpose of the adminis-
tration of such department's unemployment insurance program,  employment
services  program,  federal  and state employment and training programs,
employment statistics and  labor  market  information  programs,  worker
protection  programs,  federal  programs  for  which  the department has
administrative responsibility or for other purposes  deemed  appropriate
by the commissioner of labor consistent with the provisions of the labor
law,  and  redisclosure  of  such  information  in  accordance  with the

S. 5460--A                          5

provisions of sections five hundred thirty-six and five hundred  thirty-
seven  of  the  labor  law,  or  the furnishing of information, which is
obtained from the wage reporting system operated pursuant to section one
hundred  seventy-one-a of this chapter, as added by chapter five hundred
forty-five of the laws of nineteen hundred seventy-eight, to  the  state
office  of  temporary  and  disability assistance so that it may furnish
such information to public agencies of other  jurisdictions  with  which
the state office of temporary and disability assistance has an agreement
pursuant  to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, and to the state  office  of  temporary  and
disability  assistance  for  the  purpose  of fulfilling obligations and
responsibilities otherwise incumbent upon the state department of labor,
under section one hundred twenty-four of the federal family support  act
of  nineteen  hundred eighty-eight, by giving the federal parent locator
service, maintained by  the  federal  department  of  health  and  human
services,  prompt access to such information as required by such act, or
to the state department of health to verify eligibility under the  child
health  insurance plan pursuant to subdivisions two and two-a of section
two thousand five hundred eleven of the public  health  law,  to  verify
eligibility under the medical assistance and family health plus programs
pursuant  to  subdivision eight of section three hundred sixty-six-a and
paragraphs (b) and (d) of  subdivision  two  of  section  three  hundred
sixty-nine-ee  of the social services law, and to verify eligibility for
the program for elderly pharmaceutical insurance  coverage  under  title
three  of  article  two of the elder law, or to the office of vocational
and educational services for individuals with disabilities of the educa-
tion department, the commission for the blind and  visually  handicapped
and  any  other  state vocational rehabilitation agency, for purposes of
obtaining reimbursement from the federal social security  administration
for  expenditures made by such office, commission or agency on behalf of
disabled individuals who have achieved economic self-sufficiency  or  to
the  higher  education services corporation for the purpose of assisting
the corporation in default prevention and default collection  of  educa-
tion  loan  debt,  including  judgments, owed to the federal or New York
state government; provided, however,  that  such  information  shall  be
limited  to  the  names,  social  security numbers, home and/or business
addresses, and employer names of defaulted or  delinquent  student  loan
borrowers,  OR  TO  THE  OFFICE OF THE STATE COMPTROLLER FOR PURPOSES OF
VERIFYING THE INCOME OF A RETIRED  MEMBER  OF  A  RETIREMENT  SYSTEM  OR
PENSION  PLAN ADMINISTERED BY THE STATE OR ANY OF ITS POLITICAL SUBDIVI-
SIONS WHO RETURNS TO PUBLIC EMPLOYMENT.
  Provided, however, that  with  respect  to  employee  information  the
office  of  temporary  and disability assistance shall only be furnished
with the names, social security account numbers and gross wages of those
employees who are (A) applicants for or recipients of benefits under the
social services law, or similar provision of law of another jurisdiction
(pursuant to an agreement under subdivision three of section  twenty  of
the social services law) or, (B) absent parents or other persons legally
responsible  for  the  support of applicants for or recipients of public
assistance and care under the social services law or  similar  provision
of  law of another jurisdiction (pursuant to an agreement under subdivi-
sion three of section twenty of the social services law), or (C) persons
legally responsible for the support of a  recipient  of  services  under
section  one  hundred  eleven-g  of  the  social services law or similar
provision of law of another jurisdiction (pursuant to an agreement under
subdivision three of section twenty of the social services law), or  (D)

S. 5460--A                          6

employees   about  whom  wage  reporting  system  information  is  being
furnished to public agencies of  other  jurisdictions,  with  which  the
state  office  of  temporary  and disability assistance has an agreement
pursuant  to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, or (E) employees about whom  wage  reporting
system  information  is  being  furnished  to the federal parent locator
service, maintained by  the  federal  department  of  health  and  human
services,  for the purpose of enabling the state office of temporary and
disability assistance to fulfill obligations and responsibilities other-
wise incumbent upon the state department of  labor,  under  section  one
hundred  twenty-four  of  the  federal  family  support  act of nineteen
hundred eighty-eight, and, only if, the office of temporary and disabil-
ity assistance certifies to the commissioner that such persons are  such
applicants,  recipients,  absent  parents or persons legally responsible
for support or persons about whom information has been  requested  by  a
public  agency  of another jurisdiction or by the federal parent locator
service and further certifies that in the case of information  requested
under  agreements  with  other  jurisdictions  entered  into pursuant to
subdivision three of section twenty of the  social  services  law,  that
such request is in compliance with any applicable federal law. Provided,
further,  that  where  the office of temporary and disability assistance
requests employee information for the purpose of evaluating the  effects
on  earnings  of participation in employment, training or other programs
designed to promote self-sufficiency authorized pursuant to  the  social
services  law,  the  office of temporary and disability assistance shall
only be furnished with the quarterly gross wages (excluding  any  refer-
ence  to the name, social security number or any other information which
could be used to identify any employee or  the  name  or  identification
number  of any employer) paid to employees who are former applicants for
or recipients of public assistance and care and who are so certified  to
the  commissioner  by  the  commissioner  of the office of temporary and
disability assistance. Provided, further, that with respect to  employee
information,  the  department of health shall only be furnished with the
information required pursuant to the  provisions  of  paragraph  (f)  of
subdivision  two  and  subdivision  two-a  of  section two thousand five
hundred eleven of the public health law and subdivision eight of section
three hundred sixty-six-a and paragraphs (b) and (d) of subdivision  two
of  section three hundred sixty-nine-ee of the social services law, with
respect to those individuals whose eligibility under  the  child  health
insurance  plan,  medical  assistance  program,  and  family health plus
program is to be determined pursuant to such provisions and with respect
to those members of any such individual's household whose income affects
such individual's eligibility and who are so certified  to  the  commis-
sioner  or  by  the  department  of health. Provided, further, that wage
reporting information shall be furnished to the office of vocational and
educational services for individuals with disabilities of the  education
department,  the  commission  for the blind and visually handicapped and
any other state vocational rehabilitation agency only  if  such  office,
commission  or agency, as applicable, certifies to the commissioner that
such information is necessary to obtain reimbursement from  the  federal
social  security administration for expenditures made on behalf of disa-
bled individuals who have achieved self-sufficiency. Reports and returns
shall be preserved for three years and thereafter until the commissioner
orders them to be destroyed.
  S 3. This act shall take effect on the one hundred eightieth day after
ir shall have become a law.

S. 5460--A                          7

  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would give the state Comptroller access to the wage report-
ing system administered by the department of tax and finance. This would
enable the New York State and Local Employees' Retirement System and the
New York State and Local Police and Fire  Retirement  System  to  verify
that  retirees  who  return  to work for any public employer are earning
less than the limits under Sections 102, 211, 212 and 402 of the Retire-
ment and Social Security Law.
  If this bill is enacted, there would be no additional costs.  However,
utilization  of this information could result in the partial recovery of
the pensions of any retirees who earn in excess of these limits.
  This estimate, dated May 31, 2011, and intended for  use  only  during
the 2011 Legislative Session, is Fiscal Note Number 2011-197 prepared by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.