The New York State Senate

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

                                 8912--A

                          I N  A S S E M B L Y

                             January 8, 2018
                               ___________

Introduced  by M. of A. MURRAY, MONTESANO, D'URSO, CROUCH, GIGLIO, ERRI-
  GO, B. MILLER, LAWRENCE, WALTER, McDONOUGH,  GARBARINO,  M. L. MILLER,
  PALUMBO,  MORINELLO,  OAKS  -- Multi-Sponsored by -- M. of A. BLANKEN-
  BUSH, PALMESANO, WALSH -- read once and referred to the  Committee  on
  Governmental Operations -- 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:

  Section  1. The legislative law is amended by adding a new section 3-a
to read as follows:
  § 3-A. PAST-DUE TAX LIABILITIES OF MEMBERS-ELECT. 1.  THE  LEGISLATURE
SHALL  REQUIRE  A  TAX  CLEARANCE  FROM  THE  DEPARTMENT OF TAXATION AND
FINANCE, AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-ONE-W OF THE TAX
LAW, FOR EACH MEMBER-ELECT OF THE LEGISLATURE.  NO PERSON ELECTED TO THE
LEGISLATURE HAVING PAST-DUE TAX LIABILITIES, AS DEFINED  IN  SUBDIVISION
ONE  OF  SECTION  ONE HUNDRED SEVENTY-ONE-W OF THE TAX LAW, OR OTHERWISE
DENIED A TAX CLEARANCE BY THE DEPARTMENT OF TAXATION AND FINANCE  PURSU-
ANT  TO  SUCH  SECTION,  SHALL BE SWORN INTO OR ASSUME OFFICE UNLESS AND
UNTIL SUCH PAST-DUE TAX LIABILITIES  ARE  SATISFIED,  SETTLED,  OR  MADE
SUBJECT  TO A PAYMENT PLAN ESTABLISHED BY THE DEPARTMENT OF TAXATION AND
FINANCE AND IN WHICH SUCH PERSON IS IN GOOD STANDING.
  2. IF, AFTER SIX MONTHS SUBSEQUENT TO THE DATE ON WHICH SUCH MEMBER-E-
LECT WOULD HAVE BEEN SWORN INTO OFFICE BUT FOR THEIR OWING PAST-DUE  TAX
LIABILITIES,  SUCH  PAST-DUE  TAX  LIABILITIES  HAVE NOT BEEN SATISFIED,
SETTLED, OR MADE SUBJECT TO A PAYMENT PLAN ESTABLISHED BY THE DEPARTMENT
OF TAXATION AND FINANCE AND IN WHICH SUCH PERSON IS  IN  GOOD  STANDING,
THEN A SPECIAL ELECTION SHALL BE HELD TO FILL SUCH OFFICE.
  §  2.  Section 3 of the public officers law is amended by adding a new
subdivision 1-b to read as follows:
  1-B. (I) ANY PERSON ELECTED TO THE OFFICE OF A STATEWIDE ELECTED OFFI-
CIAL, WHICH FOR THE PURPOSES OF THIS SECTION SHALL  MEAN  THE  GOVERNOR,

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

                      [ ] is old law to be omitted.
                                                           LBD06485-03-8

A. 8912--A                          2

LIEUTENANT  GOVERNOR,  COMPTROLLER  OR  ATTORNEY  GENERAL,  SHALL,  UPON
CERTIFICATION OF SUCH PERSON'S ELECTION, REQUEST A  TAX  CLEARANCE  FROM
THE  DEPARTMENT  OF TAXATION AND FINANCE, AS PROVIDED FOR IN SECTION ONE
HUNDRED SEVENTY-ONE-W OF THE TAX LAW. NO SUCH PERSON HAVING PAST-DUE TAX
LIABILITIES, AS DEFINED IN SUBDIVISION ONE OF SECTION ONE HUNDRED SEVEN-
TY-ONE-W  OF  THE  TAX  LAW,  OR OTHERWISE DENIED A TAX CLEARANCE BY THE
DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SUCH  SECTION,  SHALL  BE
SWORN  INTO  OR ASSUME OFFICE UNLESS AND UNTIL SUCH PAST-DUE TAX LIABIL-
ITIES ARE SATISFIED, SETTLED, OR MADE SUBJECT TO A PAYMENT  PLAN  ESTAB-
LISHED  BY  THE  DEPARTMENT  OF  TAXATION  AND FINANCE AND IN WHICH SUCH
PERSON IS IN GOOD STANDING.
  (II) IF, AFTER SIX MONTHS SUBSEQUENT TO THE DATE  ON  WHICH  A  PERSON
ELECTED  TO  STATEWIDE  OFFICE WOULD HAVE BEEN SWORN INTO OFFICE BUT FOR
THEIR OWING PAST-DUE TAX LIABILITIES, SUCH PAST-DUE TAX LIABILITIES HAVE
NOT BEEN SATISFIED, SETTLED, OR MADE SUBJECT TO A  PAYMENT  PLAN  ESTAB-
LISHED  BY  THE  DEPARTMENT  OF  TAXATION  AND FINANCE AND IN WHICH SUCH
PERSON IS IN GOOD STANDING, THEN A SPECIAL ELECTION  SHALL  BE  HELD  TO
FILL SUCH OFFICE.
  §  3.  The tax law is amended by adding a new section 171-w to read as
follows:
  § 171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX  CLEAR-
ANCES.  (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL  MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST OWED BY AN INDIVIDUAL  OR  ENTITY.  THE  TERM
"PAST-DUE  TAX  LIABILITIES"  MEANS ANY UNPAID TAX LIABILITIES THAT HAVE
BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO
ADMINISTRATIVE OR JUDICIAL REVIEW. THE TERM  "GOVERNMENT  ENTITY"  MEANS
THE  STATE  OF NEW YORK, OR ANY OF ITS AGENCIES, POLITICAL SUBDIVISIONS,
INSTRUMENTALITIES, PUBLIC CORPORATIONS (INCLUDING A  PUBLIC  CORPORATION
CREATED  PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA),
OR COMBINATION THEREOF.
  (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE  TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A  TAX  CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT  THE
PROVISIONS  OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE  DEPARTMENT
AND  THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF  TAX  CLEARANCES  TO
THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT  ENTITY  SHALL BE AUTHORIZED TO SHARE ANY DATA OR INFORMATION
WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER MATCHING OF A
PERSON WHO IS THE SUBJECT OF A TAX CLEARANCE REQUEST TO THE TAX  RECORDS
MAINTAINED BY THE DEPARTMENT.
  (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST.  WHEN A  TAX
CLEARANCE  REQUEST  SO  REQUIRES,  THE  DEPARTMENT  SHALL ALSO DETERMINE
WHETHER (I) THE SUBJECT OF SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX
RETURN FILING REQUIREMENTS FOR EACH OF THE PAST THREE YEARS; AND/OR (II)
WHETHER A SUBJECT OF SUCH REQUEST THAT IS AN INDIVIDUAL OR  ENTITY  THAT
IS  A  PERSON  REQUIRED TO REGISTER PURSUANT TO SECTION ONE THOUSAND ONE
HUNDRED THIRTY-FOUR OF THIS  CHAPTER  IS  REGISTERED  PURSUANT  TO  SUCH
SECTION. THE DEPARTMENT SHALL DENY A TAX CLEARANCE IF IT DETERMINES THAT

A. 8912--A                          3

THE  SUBJECT  OF  A  TAX  CLEARANCE REQUEST HAS PAST-DUE TAX LIABILITIES
EQUAL TO OR IN EXCESS OF THE  APPLICABLE  THRESHOLD  OR,  WHEN  THE  TAX
CLEARANCE  REQUEST  SO REQUIRES, HAS NOT COMPLIED WITH APPLICABLE RETURN
FILING AND/OR REGISTRATION REQUIREMENTS.
  (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE  CLEARANCE  SHALL  PROVIDE  NOTICE  TO THE SUBJECT OF THE REQUEST TO
CONTACT THE DEPARTMENT. SUCH NOTICE SHALL BE MADE BY  FIRST  CLASS  MAIL
WITH  A  CERTIFICATE  OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE
PROVIDED TO THE DEPARTMENT. WHEN THE SUBJECT OF THE REQUEST CONTACTS THE
DEPARTMENT, THE DEPARTMENT SHALL INFORM HIM OR HER OF THE BASIS FOR  THE
DENIAL OF THE TAX CLEARANCE AND SHALL ALSO INFORM SUCH PERSON (I) THAT A
TAX  CLEARANCE DENIED DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE
THE TAXPAYER FULLY SATISFIES PAST-DUE TAX LIABILITIES OR  MAKES  PAYMENT
ARRANGEMENTS SATISFACTORY TO THE COMMISSIONER; (II) THAT A TAX CLEARANCE
DENIED  DUE  TO FAILURE TO FILE TAX RETURNS MAY BE ISSUED ONCE THE INDI-
VIDUAL HAS SATISFIED THE APPLICABLE RETURN  FILING  REQUIREMENTS;  (III)
THAT  A TAX CLEARANCE DENIED FOR FAILURE TO REGISTER PURSUANT TO SECTION
ONE THOUSAND ONE HUNDRED THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED  ONCE
THE  INDIVIDUAL  HAS  REGISTERED  PURSUANT TO SUCH SECTION; AND (IV) THE
GROUNDS FOR CHALLENGING THE DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVI-
SION FIVE OF THIS SECTION.
  (5) (A) NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  AND  EXCEPT  AS
SPECIFICALLY PROVIDED HEREIN, AN INDIVIDUAL DENIED A TAX CLEARANCE SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
  (B) AN INDIVIDUAL SEEKING TO CHALLENGE THE DENIAL OF A  TAX  CLEARANCE
MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE INDIVIDUAL THAT
THE TAX CLEARANCE WAS DENIED. AN INDIVIDUAL MAY CHALLENGE  A  DEPARTMENT
FINDING  OF  PAST-DUE  TAX  LIABILITIES ONLY ON THE GROUNDS THAT (I) THE
INDIVIDUAL OR ENTITY DENIED THE TAX CLEARANCE IS NOT THE  INDIVIDUAL  OR
ENTITY  WITH  THE PAST-DUE TAX LIABILITIES AT ISSUE OR (II) THE PAST-DUE
TAX LIABILITIES WERE SATISFIED.  AN INDIVIDUAL MAY CHALLENGE  A  DEPART-
MENT  FINDING  OF  FAILURE TO COMPLY WITH TAX RETURN FILING REQUIREMENTS
ONLY ON THE GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE  BEEN  FILED  FOR
EACH OF THE PAST THREE YEARS.
  (C)  NOTHING  IN  THIS SUBDIVISION IS INTENDED TO LIMIT ANY INDIVIDUAL
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE  IS
ELIGIBLE  PURSUANT  TO  THAT  SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED
BY  THE  FILING  OF  A  PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
  (6) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  THE  DEPARTMENT  MAY
EXCHANGE  WITH  A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS INFORMATION TO ANY OTHER ENTITY  OR  PERSON,  OTHER  THAN  FOR  THE
PURPOSE  OF  INFORMING  THE INDIVIDUAL THAT A REQUIRED TAX CLEARANCE HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
  (7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,  THE  ACTIVITIES  TO
COLLECT  PAST-DUE  TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
TO THIS SECTION SHALL NOT IN ANY  WAY  LIMIT,  RESTRICT  OR  IMPAIR  THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.

A. 8912--A                          4

  (8)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE PROVISIONS OF
THIS SECTION ARE NOT APPLICABLE TO THE TAX CLEARANCE REQUIRED BY SECTION
ONE HUNDRED SEVENTY-ONE-V OF THIS ARTICLE.
  §  4. This act shall take effect June 1, 2018; provided, however, that
the department of taxation and finance, and any other government  entity
electing  to receive a tax clearance from the department of taxation and
finance may work to  execute  the  necessary  procedures  and  technical
changes  to  support  the tax clearance process as described in this act
before that date; provided, further, that this effective date  will  not
impact  the  administration  of  any tax clearance program authorized by
another provision of law.