The New York State Senate

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

                                 4460--A

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            February 15, 2017
                               ___________

Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06485-02-8

S. 4460--A                          2

  §  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,
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)

S. 4460--A                          3

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
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.

S. 4460--A                          4

  (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.
  (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.