S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1895
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2019
                                ___________
 
 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:
   § 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.
              

                                                            LBD04346-01-9

 A. 1895                             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.
   § 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:
   § 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. 1895                             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.
   § 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.
   § 4. This act shall take effect one year after it shall have become  a
 law.