S T A T E O F N E W Y O R K
________________________________________________________________________
3716
2013-2014 Regular Sessions
I N A S S E M B L Y
January 28, 2013
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the executive law, the state administrative procedure
act and the judiciary law, in relation to the denial of the renewal of
professional licenses when the applicant has outstanding 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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07777-01-3
A. 3716 2
tion, of any business, individual[,] or other entity, which is not a
state agency, municipal corporation or district corporation, if such
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) 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 RENEWAL ATTEST, UNDER THE PENALTY OF PERJURY, TO THE STATE AGENCY
RENEWING THE LICENSE, PERMIT, CERTIFICATE OR REGISTRATION THAT THE
APPLICANT DOES NOT HAVE A TAX DEBT.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EVERY STATE AGENCY
WHICH ISSUES A LICENSE, PERMIT, CERTIFICATE OR REGISTRATION WHICH
SPECIFICALLY AUTHORIZES ANY PERSON OR ENTITY TO CONDUCT ANY PROFESSION,
BUSINESS OR TRADE MAY DENY THE APPLICATION FOR THE RENEWAL OF ANY SUCH
LICENSE, PERMIT, CERTIFICATE OR REGISTRATION TO ANY PERSON OR ENTITY
WHICH HAS A TAX DEBT.
(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.
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 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. 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) 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 RENEWAL ATTEST, UNDER THE PENALTY OF PERJURY, TO THE AGEN-
CY RENEWING THE LICENSE, PERMIT, CERTIFICATE OR REGISTRATION THAT THE
APPLICANT DOES NOT HAVE A TAX DEBT.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EVERY AGENCY WHICH
ISSUES A LICENSE, PERMIT, CERTIFICATE OR REGISTRATION WHICH SPECIFICALLY
AUTHORIZES ANY PERSON OR ENTITY TO CONDUCT ANY PROFESSION, BUSINESS OR
TRADE MAY DENY THE APPLICATION FOR THE RENEWAL OF ANY SUCH LICENSE,
PERMIT, CERTIFICATE OR REGISTRATION TO ANY PERSON OR ENTITY WHICH HAS A
TAX DEBT.
A. 3716 3
(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.
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
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 MAY DENY THE APPLICATION FOR RENEWAL
OF ADMISSION TO PRACTICE AS AN ATTORNEY AND COUNSELLOR AT LAW OF ANY
PERSON WHO HAS 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 ATTEST, UNDER THE PENALTY OF
PERJURY, TO THE APPELLATE DIVISION THAT THE APPLICANT DOES NOT HAVE A
TAX DEBT.
(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.
S 4. This act shall take effect one year after it shall have become a
law.