Senate Bill S10100

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10100
 
                             I N  S E N A T E
 
                              April 28, 2026
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law  and  the  public  authorities
   law,  in  relation  to  reforming the industrial development authority
   program; and to amend the tax law, in relation to adding a tax  clear-
   ance process

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading and subdivisions 1, 2, 3, 4, 6, 7 and 9
 of section 875 of the general municipal law, as added by  section  2  of
 part  J  of  chapter  59  of  the  laws  of 2013, are amended to read as
 follows:
   Special provisions applicable to state [sales  and  compensating  use]
 taxes and certain types of facilities. 1. For purposes of this section:
   ["state]  (A) "STATE sales and use taxes" means sales and compensating
 use taxes and fees imposed by article twenty-eight or twenty-eight-A  of
 the tax law but excluding such taxes imposed in a city by section eleven
 hundred seven or eleven hundred eight of such article twenty-eight[.];
   (B)  "STATE  TAXES" MEANS ANY OR ALL OF THE FOLLOWING: STATE SALES AND
 USE TAXES, ANY MORTGAGE RECORDING TAX IMPOSED UNDER SECTION TWO  HUNDRED
 FIFTY-THREE  OF  THE TAX LAW, ANY STATE REAL ESTATE TRANSFER TAX IMPOSED
 BY ARTICLE THIRTY-ONE OF THE TAX LAW;
   (C) "IDA" means an industrial development agency established  by  this
 article  or  an  industrial  development authority created by the public
 authorities law[.];
   (D) "Commissioner" means the commissioner of taxation and finance[.];
   (E) "ABO" MEANS THE AUTHORITIES BUDGET OFFICE ESTABLISHED  BY  SECTION
 FOUR OF THE PUBLIC AUTHORITIES LAW; AND
   (F)  "PACB"  MEANS THE PUBLIC AUTHORITIES CONTROL BOARD ESTABLISHED BY
 ARTICLE ONE-A OF THE PUBLIC AUTHORITIES LAW.
   2. An IDA shall keep records of the amount of state  and  local  sales
 and  use  tax exemption benefits AND ANY OTHER STATE TAX EXEMPTION BENE-
 FITS provided to each project and each agent  or  project  operator  and
 shall make such records available to the commissioner upon request. Such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14209-02-6
 S. 10100                            2
 
 IDA  shall also, within thirty days of providing financial assistance to
 a project that  includes  any  amount  of  state  [sales  and  use]  tax
 exemption  benefits, report to the commissioner the amount of such bene-
 fits  for  such  project,  the project to which they are being provided,
 together with such other information and such specificity and detail  as
 the  commissioner  may prescribe. This report may be made in conjunction
 with the statement required by subdivision nine of section eight hundred
 seventy-four of this title or it may be made as a  separate  report,  at
 the  discretion  of  the  commissioner.  An  IDA that fails to make such
 records available to the commissioner or to file such reports  shall  be
 prohibited  from providing ANY state [sales and use] tax exemption bene-
 fits for any project unless and until such  IDA  comes  into  compliance
 with all such requirements.
   3.  (a)  An IDA shall include within its resolutions and project docu-
 ments establishing any project or appointing an agent or project  opera-
 tor  for  any  project the terms and conditions in this subdivision, and
 every agent, project operator or other person or entity that shall enjoy
 ANY state [sales and use] tax exemption  benefits  provided  by  an  IDA
 shall agree to such terms as a condition precedent to receiving or bene-
 fiting  from  ANY  such  state  [sales and use exemptions] TAX EXEMPTION
 benefits.
   (b) The IDA shall recover, recapture,  receive,  or  otherwise  obtain
 from  an  agent,  project  operator  or other person or entity ANY state
 [sales and use exemptions] TAX EXEMPTION benefits taken or purported  to
 be taken by any such person to which the person is not entitled or which
 are  in  excess  of the amounts authorized or, AS TO STATE SALES AND USE
 TAXES, which are for property or services not  authorized  or  taken  in
 cases  where  such  agent or project operator, or other person or entity
 failed to comply with a material term or condition to  use  property  or
 services  in the manner required by the person's agreement with the IDA.
 Such agent or project operator, or other person or entity shall  cooper-
 ate  with  the  IDA  in  its  efforts to recover, recapture, receive, or
 otherwise obtain ANY such state [sales and use] TAX exemptions  benefits
 and  shall  promptly  pay  over  any  such  amounts  to  the IDA that it
 requests. The failure to pay over such  amounts  to  the  IDA  shall  be
 grounds  for  the  commissioner to assess and determine state [sales and
 use] taxes due from the person under [article twenty-eight of]  the  tax
 law,  together  with  any  relevant  penalties  and interest due on such
 amounts.
   (c) If an IDA recovers, recaptures, receives,  or  otherwise  obtains,
 any  amount  of  state  [sales  and  use] tax exemption benefits from an
 agent, project operator or other person or entity, the IDA shall, within
 thirty days of coming into possession of such amount, remit  it  to  the
 commissioner, together with such information and report that the commis-
 sioner  deems  necessary  to administer payment over of such amount.  An
 IDA shall join the commissioner as a party in any action  or  proceeding
 that  the IDA commences to recover, recapture, obtain, or otherwise seek
 the return of, ANY state [sales and use] tax exemption benefits from  an
 agent, project operator or other person or entity.
   (d)  An  IDA  shall  prepare an annual compliance report detailing its
 terms and conditions described in paragraph (a) of this subdivision  and
 its  activities and efforts to recover, recapture, receive, or otherwise
 obtain ANY state [sales  and  use  exemptions]  TAX  EXEMPTION  benefits
 described in paragraph (b) of this subdivision, together with such other
 information  as the commissioner and the commissioner of economic devel-
 opment may require.  The report required by this  subdivision  shall  be
 S. 10100                            3
 
 filed with the commissioner, the director of the division of the budget,
 the  commissioner  of  economic  development, the state comptroller, the
 governing body of the municipality for  whose  benefit  the  agency  was
 created,  and  may  be  included  with  the  annual  financial statement
 required by paragraph (b) of subdivision one of  section  eight  hundred
 fifty-nine of this title. Such report required by this subdivision shall
 be  filed  regardless of whether the IDA is required to file such finan-
 cial statement described by such paragraph (b)  of  subdivision  one  of
 section  eight  hundred fifty-nine. The failure to file or substantially
 complete the report required by this subdivision shall be deemed  to  be
 the  failure to file or substantially complete the statement required by
 such paragraph (b) of subdivision one  of  such  section  eight  hundred
 fifty-nine,  and the consequences shall be the same as provided in para-
 graph (e) of subdivision one of such section eight hundred fifty-nine.
   (e) This subdivision shall apply to any amounts of  state  [sales  and
 use]  tax exemption benefits that an IDA recovers, recaptures, receives,
 or otherwise obtains, regardless  of  whether  the  IDA  or  the  agent,
 project  operator  or other person or entity characterizes such benefits
 recovered, recaptured, received, or otherwise obtained, as a penalty  or
 liquidated  or  contract  damages  or  otherwise. The provisions of this
 subdivision shall also apply to any interest or  penalty  that  the  IDA
 imposes on any such amounts or that are imposed on such amounts by oper-
 ation  of  law  or  by  judicial order or otherwise. Any such amounts or
 payments that  an  IDA  recovers,  recaptures,  receives,  or  otherwise
 obtains,  together  with  any  interest  or  penalties thereon, shall be
 deemed to be state sales and use taxes, MORTGAGE RECORDING TAX, OR  REAL
 ESTATE  TRANSFER  TAX, AS THE CASE MAY BE, and the IDA shall receive any
 such amounts or payments, whether as a result of court action or  other-
 wise, as trustee for and on account of the state.
   4.  The  commissioner  shall  deposit and dispose of any amount of any
 payments or moneys received from or paid over by an IDA or  from  or  by
 any  person  or  entity, or received pursuant to an action or proceeding
 commenced by an IDA, together with any interest  or  penalties  thereon,
 pursuant  to  subdivision  three of this section, as state sales and use
 taxes in accord with the provisions of article twenty-eight of  the  tax
 law,  OR  AS  MORTGAGE  RECORDING  TAX IMPOSED UNDER SECTION TWO HUNDRED
 FIFTY-THREE OF THE TAX LAW OR REAL ESTATE  TRANSFER  TAX  IMPOSED  UNDER
 ARTICLE  THIRTY-ONE  OF  THE TAX LAW, AS THE CASE MAY BE.  The amount of
 any such payments or moneys IN RESPECT OF SALES OR USE  TAXES,  together
 with any interest or penalties thereon, shall be attributed to the taxes
 imposed  by  sections eleven hundred five and eleven hundred ten, on the
 one hand, and section eleven hundred nine of the tax law, on  the  other
 hand, or to any like taxes or fees imposed by such article, based on the
 proportion  that  the  rates  of  such taxes or fees bear to each other,
 unless there is evidence to show that only one  or  the  other  of  such
 taxes or fees was imposed or received or paid over.
   6.  The  commissioner  is  hereby  authorized  to  audit  the records,
 actions, and proceedings of an IDA and of its agents and project  opera-
 tors  to ensure that the IDA and its agents and project operators comply
 with all the requirements of this section.  IN ADDITION, THE COMMISSION-
 ER IS HEREBY AUTHORIZED TO AUDIT IDA PROJECTS AND IDA AGENTS AND PROJECT
 OPERATORS WITH REGARD TO THE REQUIREMENTS AND RESTRICTIONS OF THIS TITLE
 AND TITLE ELEVEN OR FIFTEEN OF ARTICLE EIGHT OF THE  PUBLIC  AUTHORITIES
 LAW  TO  ENSURE  THAT JOB TARGETS, INVESTMENT TARGETS, CONSTRUCTION, AND
 EXPENDITURES DESCRIBED IN SUBDIVISION FIVE-A OF THIS  SECTION,  AND  ANY
 EXEMPTIONS FROM ANY STATE TAXES OR FROM LOCAL SALES AND COMPENSATING USE
 S. 10100                            4
 
 TAXES  ADMINISTERED  BY  THE COMMISSIONER COMPLY WITH THE DETAILS OF THE
 PROJECT AND THE APPLICATION AS APPROVED BY THE IDA.   IN  ADDITION,  THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT, THE ABO, THE PACB, OR ANOTHER PERSON
 OR ENTITY MAY REPORT TO THE COMMISSIONER THAT AN AGENT OR PROJECT OPERA-
 TOR HAS NOT MET ANY SUCH TARGETS OR GOALS OR OTHERWISE COMPLIED WITH ANY
 SUCH  PROVISIONS.  IF  THE COMMISSIONER FINDS THAT ANY SUCH JOB TARGETS,
 INVESTMENT  TARGETS,  CONSTRUCTION,  EXPENDITURES,  OR   TAX   EXEMPTION
 PROVISIONS  OR  OTHER  CONDITIONS  OR  PROVISIONS  HAVE  NOT BEEN MET OR
 COMPLIED WITH, THE  COMMISSIONER  SHALL  DETERMINE  THE  AMOUNT  OF  ANY
 EXEMPTION  FROM  STATE  TAXES THAT THE AGENT OR PROJECT OPERATOR CLAIMED
 AND SUCH AGENT OR PROJECT OPERATOR SHALL PAY SUCH AMOUNTS AS TAX. IF THE
 COMMISSIONER FINDS THAT THE AGENT OR PROJECT OPERATOR HAS PARTIALLY  MET
 SUCH  TARGETS,  GOALS, OR CONDITIONS, THE COMMISSIONER MAY DETERMINE THE
 DEGREE OF COMPLIANCE TO DETERMINE THE  AMOUNT  OF  SUCH  TAX  EXEMPTIONS
 CLAIMED  THAT  THE  AGENT OR PROJECT OPERATOR MUST PAY AS TAX. IN MAKING
 SUCH COMPLIANCE DETERMINATION, THE COMMISSIONER MAY CONSIDER THE  NUMBER
 OF YEARS OR OTHER PERIOD OF TIME IN WHICH SUCH AGENT OR PROJECT OPERATOR
 MET THE TARGETS, GOALS, OR CONDITIONS, AS COMPARED TO THE TOTAL YEARS OR
 OTHER  PERIOD  OF TIME OF THE PROJECT, THE PERCENTAGE OF COMPLIANCE WITH
 REGARD TO THE NUMBER OF JOBS CREATED AS COMPARED TO THE JOB TARGETS, THE
 SEVERITY OF FAILURE TO COMPLY WITH TAX EXEMPTION  LIMITATIONS  BASED  ON
 THE  NUMBER  OF  DOLLARS BY WHICH THE AGENT OR PROJECT OPERATOR EXCEEDED
 THE ALLOWED AMOUNT OF TAX EXEMPTIONS APPROVED, AND SUCH OTHER FACTORS AS
 THE COMMISSIONER DEEMS REASONABLE AND PERTINENT.  THE COMMISSIONER SHALL
 BE AUTHORIZED TO ASSESS OR OTHERWISE BILL THE AGENT OR PROJECT  OPERATOR
 FOR  ANY  SUCH  AMOUNTS  THAT  THE  COMMISSIONER DETERMINED THE AGENT OR
 PROJECT OPERATOR MUST PAY AS TAX, IN THE MANNER  THAT  THE  COMMISSIONER
 WOULD  ASSESS  OR  BILL  FOR  THE  TAX  FROM  WHICH SUCH EXEMPTIONS WERE
 CLAIMED. Any information the commissioner finds in  the  course  of  ANY
 such audit may be used by the commissioner to assess and determine state
 and local taxes of the IDA's agent or project operator.
   7.  In  addition  to any other reporting or filing requirements an IDA
 has under this article or other law, an  IDA  shall  [also]  MAINTAIN  A
 PUBLIC  INTERNET WEBSITE AND report and make available on [the internet]
 SUCH WEBSITE, without charge, copies of its resolutions  and  agreements
 appointing  an  agent  or  project  operator or otherwise related to any
 project it establishes.   IN ADDITION, EVERY  IDA  SHALL  POST  ON  SUCH
 WEBSITE  THE  FOLLOWING  INFORMATION  AND  SHALL  TIMELY UPDATE ALL SUCH
 INFORMATION SO THAT IT REMAINS CURRENT AND ACCURATE WITHIN  THIRTY  DAYS
 OF ANY CHANGE:
   (A) THE NAME AND TITLE OF EACH MEMBER AND OFFICER OF THE IDA;
   (B)  PUBLIC NOTICE OF EVERY MEETING TO BE HELD BY THE IDA, AS REQUIRED
 BY SUBDIVISION FIVE-C OF THIS SECTION;
   (C) THE AGENDA OF EVERY SUCH MEETING TO BE HELD,  AT  LEAST  TEN  DAYS
 PRIOR TO THE COMMENCEMENT OF THE MEETING;
   (D)  MINUTES OF EVERY MEETING THE IDA HOLDS, TOGETHER WITH THE DETAILS
 OF EVERY VOTE EACH MEMBER OF THE IDA CASTS AT ANY MEETING; AND
   (E) A DESCRIPTION OF EVERY PROJECT ESTABLISHED BY  THE  IDA,  TOGETHER
 WITH  A DESCRIPTION OF ANY STATE OR LOCAL TAX EXEMPTION BENEFITS THE IDA
 INTENDS TO PROVIDE OR EXTEND IN DURATION, OR HAS PROVIDED  OR  EXTENDED,
 WITH  RESPECT  TO  THE PROJECT, INCLUDING WHAT THE EXEMPTION APPLIES TO,
 THE TYPE OF TAX EXEMPTED OR TO BE EXEMPTED AND THE DURATION  AND  ANNUAL
 AND TOTAL DOLLAR VALUE OF EACH SUCH EXEMPTION.
   It  shall also provide, without charge, copies of all such reports and
 information to a person who asks for [it] ANY OF THEM in writing  or  in
 person.  The  IDA  may,  at the request of its agent or project operator
 S. 10100                            5
 
 delete from any such copies posted on the  internet  or  provided  to  a
 person  described in the prior sentence portions of its records that are
 specifically exempted from disclosure under article six  of  the  public
 officers  law.  IF THE ABO FINDS, ON ITS OWN, OR AFTER RECOMMENDATION BY
 THE DEPARTMENT OF ECONOMIC DEVELOPMENT, THE COMMISSIONER,  THE  PACB  OR
 ANY  OTHER  PERSON  OR ENTITY, THAT AN IDA HAS FAILED TO COMPLY WITH THE
 REQUIREMENTS OF THIS SECTION, THE ABO SHALL ADVISE THE IDA OF ITS  FIND-
 INGS, AND THE IDA SHALL HAVE THIRTY DAYS TO COME INTO COMPLIANCE. IF THE
 IDA  FAILS  TO DO SO, THE IDA SHALL NOT BE ABLE TO ESTABLISH ANY PROJECT
 OR PROVIDE ANY FINANCIAL ASSISTANCE IN THE NATURE OF EXEMPTIONS FROM ANY
 STATE TAXES. THE ABO SHALL NOTIFY THE PACB AND THE COMMISSIONER  OF  THE
 FAILURE IN COMPLIANCE.
   9.  To  the  extent  that a provision of this section conflicts with a
 provision of any other section of this article OR WITH  A  PROVISION  OF
 TITLE  ELEVEN OR FIFTEEN OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW,
 the provisions of this section shall control.
   § 2. Section 875 of the general municipal law  is  amended  by  adding
 three new subdivisions 5-a, 5-b and 5-c to read as follows:
   5-A.  IN  ADDITION  TO  ANY OTHER REQUIREMENT OF THIS ARTICLE OR OTHER
 LAW:   EVERY IDA AND ITS MEMBERS AND  OFFICERS  SHALL  COMPLY  WITH  THE
 APPLICABLE  PROVISIONS OF THE PUBLIC OFFICERS LAW, INCLUDING AMONG OTHER
 THINGS THE OPEN MEETINGS LAW AND THE FREEDOM  OF  INFORMATION  LAW,  THE
 APPLICABLE  PROVISIONS OF THE PUBLIC AUTHORITIES LAW, AND THIS TITLE. IF
 THE ABO OR ANY OTHER PERSON OR ENTITY FINDS THAT AN IDA OR ITS MEMBER OR
 OFFICER HAS FAILED TO COMPLY WITH AN APPLICABLE PROVISION OF THE  PUBLIC
 OFFICERS  LAW  OR OF THE PUBLIC AUTHORITIES LAW, OR WITH THIS TITLE, THE
 ABO OR SUCH OTHER PERSON OR ENTITY SHALL NOTIFY THE PACB  OF  SUCH  NON-
 COMPLIANCE.    THE  IDA  SHALL NOT APPROVE ANY PROJECT OR BENEFITS FOR A
 PROJECT UNLESS AND UNTIL THE IDA AND ITS MEMBER OR OFFICER  CORRECTS  OR
 CAUSES  TO  BE  CORRECTED  SUCH NON-COMPLIANCE AND THE ABO HAS CERTIFIED
 THAT SUCH COMPLIANCE HAS BEEN ACHIEVED; AND SUCH IDA SHALL, AMONG  OTHER
 THINGS,  NOT  PROVIDE  OR  EXTEND  IN  DURATION ANY FINANCIAL ASSISTANCE
 CONSISTING OF EXEMPTION FROM ANY STATE TAX TO ANY PROJECT. SUCH  AN  IDA
 THAT HAS BEEN FOUND NOT TO BE IN COMPLIANCE SHALL BE REQUIRED TO CORRECT
 ANY  SUCH NON-COMPLIANCE AND DEMONSTRATE ITS COMPLIANCE TO THE SATISFAC-
 TION OF THE ABO, BEFORE ANY SUCH STATE TAX EXEMPTION  BENEFIT  SHALL  BE
 VALID.
   5-B.  IN  ADDITION  TO  ANY OTHER REQUIREMENT OF THIS ARTICLE OR OTHER
 LAW:   (A) AN IDA SHALL BE  REQUIRED  TO  APPLY  FOR  AND  OBTAIN  PRIOR
 APPROVAL  FROM  THE PACB BEFORE THE IDA CAN PROVIDE FINANCIAL ASSISTANCE
 CONSISTING OF ANY EXEMPTION  EQUAL  TO  OR  GREATER  THAN  FIVE  MILLION
 DOLLARS  FROM  STATE  TAXES  WITH RESPECT TO A PROJECT, OR BEFORE IT CAN
 INCREASE OR EXTEND IN DURATION ANY SUCH  FINANCIAL  ASSISTANCE  IF  SUCH
 INCREASE  OR  EXTENSION  WILL  RESULT  IN THE TOTAL SUM OF THE STATE TAX
 BENEFIT IS EQUAL TO OR GREATER THAN FIVE MILLION DOLLARS.  THE IDA SHALL
 SUBMIT ITS APPLICATION TO THE PACB USING A FORM PRESCRIBED BY  THE  PACB
 IN  CONSULTATION  WITH THE ABO. SUCH APPLICATION SHALL INCLUDE THE TYPES
 AND AMOUNTS OF FINANCIAL ASSISTANCE PROPOSED TO BE OFFERED; IDA'S TARGET
 FOR THE NUMBER OF FULL-TIME EQUIVALENT JOBS TO BE CREATED IN  EACH  YEAR
 OF  SUCH  PROJECT; THE IDA'S TARGET FOR INVESTMENTS IN EACH YEAR OF SUCH
 PROJECT; A SCHEDULE OF CONSTRUCTION, IF ANY; AND A PLAN OF  EXPENDITURES
 BY  THE  AGENT  OR PROJECT OPERATOR. SUCH APPLICATION SHALL ALSO INCLUDE
 COPIES OF THE IDA'S NOTICE OF  PUBLIC  MEETING  REGARDING  THE  PROJECT,
 MINUTES  OF  THE  MEETING'S  PROCEEDINGS,  DETAILS OF VOTES TAKEN AT THE
 MEETING, AND SUCH OTHER DOCUMENTS AND OTHER INFORMATION AS THE  PACB  OR
 THE ABO MAY REQUIRE.
 S. 10100                            6
 
   (B)  IF  THE  IDA  SUBMITS A COMPLETE APPLICATION IN PROCESSIBLE FORM,
 TOGETHER WITH ANY SUCH REQUIRED DOCUMENTS  AND  OTHER  INFORMATION,  THE
 PACB  SHALL  APPROVE OR DENY SUCH APPLICATION WITHIN FORTY-FIVE DAYS. IF
 THE PACB DOES NOT ACT ON SUCH  APPLICATION  WITHIN  FORTY-FIVE  DAYS  OF
 RECEIVING  IT,  SUCH  APPLICATION  SHALL  BE DEEMED APPROVED AND THE IDA
 SHALL NOTE ON ITS PUBLIC WEBSITE THAT SUCH APPLICATION WAS APPROVED AS A
 RESULT OF THE PACB FAILING TO VOTE IN A TIMELY MANNER.   AN  APPLICATION
 SHALL  NOT BE COMPLETE AND IN PROCESSIBLE FORM UNLESS IT INCLUDES, AMONG
 OTHER THINGS, A CONSTRUCTION SCHEDULE, AND  SPECIFIC  JOB  CREATION  AND
 INVESTMENT  TARGETS  FOR EACH YEAR THAT THE IDA'S PROPOSED PROJECT WOULD
 BE IN EFFECT.   NOTWITHSTANDING THE FOREGOING OR  OTHER  LAW,  THE  PACB
 SHALL  NOT  APPROVE  ANY  PROJECT  THAT  PROVIDES  FINANCIAL  ASSISTANCE
 CONSISTING SUBSTANTIALLY ONLY OF EXEMPTIONS FROM STATE TAXES.
   (C) IN CONSIDERING SUCH AN IDA APPLICATION, THE PACB SHALL NOT APPROVE
 FINANCIAL ASSISTANCE CONSISTING OF ANY EXEMPTION FROM STATE TAXES UNLESS
 THE PACB CONCLUDES THAT SUCH ASSISTANCE SHALL NOT PROVIDE THE PROJECT OR
 THE IDA'S AGENT OR PROJECT OPERATOR WITH A COMPETITIVE ADVANTAGE OVER AN
 EXISTING BUSINESS IN A SIMILAR INDUSTRY IN THAT AREA.
   (D) NO FINANCIAL ASSISTANCE CONSISTING OF AN EXEMPTION FROM ANY  STATE
 TAXES  SHALL  BE  INCREASED  OR  EXTENDED  IN DURATION WITH RESPECT TO A
 PROJECT OR TO AN AGENT OR PROJECT OPERATOR THAT HAS BENEFITTED FROM  ANY
 SUCH  ASSISTANCE  IN THE PAST UNLESS THE IDA RECEIVES THE PRIOR APPROVAL
 OF THE PACB IN THE MANNER DESCRIBED IN THIS SUBDIVISION IF THE TOTAL SUM
 OF THE STATE TAX BENEFIT IS  EQUAL  TO  OR  GREATER  THAN  FIVE  MILLION
 DOLLARS.
   5-C.  IN  ADDITION  TO  ANY OTHER REQUIREMENT OF THIS ARTICLE OR OTHER
 LAW, AND NOTWITHSTANDING ANY OTHER LAW, AN IDA  SHALL  NOT  ESTABLISH  A
 PROJECT  OR  PROVIDE  FINANCIAL ASSISTANCE WITH RESPECT TO A PROJECT, OR
 PROVIDE ADDITIONAL FINANCIAL ASSISTANCE  WITH  RESPECT  TO  AN  EXISTING
 PROJECT,  WITHOUT FIRST HAVING RECEIVED FROM EVERY APPLICANT, AGENT, AND
 PROJECT OPERATOR RELATED TO THE PROJECT AND FROM EVERY  PERSON  REQUIRED
 TO  COLLECT TAX, AS DEFINED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED
 THIRTY-ONE OF THE TAX LAW, WITH RESPECT TO EVERY SUCH  APPLICANT,  AGENT
 OR  PROJECT OPERATOR, A TAX CLEARANCE UNDER SECTION ONE HUNDRED SEVENTY-
 ONE-X OF THE TAX LAW.
   § 3. Section 862 of the general municipal law is amended by  adding  a
 new subdivision 3 to read as follows:
   (3)  THE PROVISIONS OF THIS SECTION SHALL ALSO APPLY TO THE INDUSTRIAL
 DEVELOPMENT AUTHORITY CREATED BY TITLE ELEVEN OF ARTICLE  EIGHT  OF  THE
 PUBLIC  AUTHORITIES  LAW  WITH  THE  SAME  FORCE  AND  EFFECT  AS IF THE
 PROVISIONS OF THIS SECTION HAD BEEN INCORPORATED IN FULL INTO SUCH TITLE
 ELEVEN AND EXPRESSLY REFERRED TO THE PROVISIONS OF  SUCH  TITLE  AND  TO
 SUCH  AUTHORITY,  WITH  SUCH CHANGES TO THIS SECTION AS ARE NECESSARY TO
 REFER TO THE PROVISIONS OF SUCH  TITLE  ELEVEN  AND  TO  SUCH  AUTHORITY
 CREATED BY SUCH TITLE.
   §  4. Section 4 of the public authorities law, as added by chapter 506
 of the laws of 2009, is amended to read as follows:
   § 4. Establishment of the independent authorities budget office. There
 is hereby established the independent authorities budget  office  as  an
 independent  entity within the department of state, which shall have and
 exercise the powers and duties provided by this  title  AND  BY  SECTION
 EIGHT HUNDRED SEVENTY-FIVE AND RELATED SECTIONS OF THE GENERAL MUNICIPAL
 LAW.
   §  5.  The tax law is amended by adding a new section 171-x to read as
 follows:
 S. 10100                            7
 
   § 171-X. 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 THE COMMISSIONER'S 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  GOVERNMENT  ENTITY,  AND  ANY  OTHER PROCEDURES DEEMED NECESSARY TO
 CARRY OUT THE PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE
 EXTENT PRACTICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN  THE
 DEPARTMENT  AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF
 TAX CLEARANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF TAX  CLEAR-
 ANCES  TO  THE REQUESTING ENTITY.   NOTWITHSTANDING ANY OTHER LAW TO THE
 CONTRARY, A GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE ANY APPLICANT
 DATA OR INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE  THE
 PROPER  MATCHING  OF  THE APPLICANT 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 OR, WHERE NO
 THRESHOLD HAS BEEN ESTABLISHED BY LAW  OR  OTHERWISE,  EQUAL  TO  OR  IN
 EXCESS  OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST SO
 REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (A) THE SUBJECT OF
 SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
 FOR EACH OF THE PAST THREE YEARS; AND/OR (B) 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 APPLICANT TO CONTACT THE
 DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
 ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
 DEPARTMENT. WHEN THE APPLICANT CONTACTS THE DEPARTMENT,  THE  DEPARTMENT
 SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
 ANCE AND SHALL ALSO INFORM THE APPLICANT (A) 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  SATIS-
 FACTORY  TO  THE  COMMISSIONER;  (B)  THAT A TAX CLEARANCE DENIED DUE TO
 FAILURE TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS  SATIS-
 FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (C) 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 APPLICANT HAS
 S. 10100                            8

 REGISTERED PURSUANT TO SUCH SECTION; AND (D) THE GROUNDS FOR CHALLENGING
 THE DENIAL OF A  TAX  CLEARANCE  LISTED  IN  SUBDIVISION  FIVE  OF  THIS
 SECTION.
   (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
 SPECIFICALLY PROVIDED HEREIN, AN APPLICANT 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 APPLICANT 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 APPLICANT  THAT
 THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT 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; (II) THE PAST-DUE TAX
 LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
 GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
 SUPPORT  PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION FIVE
 THOUSAND TWO HUNDRED FORTY-ONE OR FIVE THOUSAND TWO HUNDRED FORTY-TWO OF
 THE CIVIL PRACTICE LAWS AND RULES OR ANOTHER STATE'S INCOME  WITHHOLDING
 ORDER  AS  AUTHORIZED  UNDER  PART  FIVE OF ARTICLE FIVE-B OF THE FAMILY
 COURT ACT, OR GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF  THE  PAST-
 DUE  TAX  LIABILITIES  AT  ISSUE;  OR (IV) THE APPLICANT IS MAKING CHILD
 SUPPORT PAYMENTS OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT
 TO A SATISFACTORY PAYMENT ARRANGEMENT UNDER SECTION ONE HUNDRED ELEVEN-B
 OF THE SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT  OR  OTHERWISE
 MAKING  PERIODIC  PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY
 OF THE FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE A DEPARTMENT 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  APPLICANT
 FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
 SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT THE APPLICANT
 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  APPLICANT 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.
   (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-X OF THIS ARTICLE.
   § 6. This act shall take effect immediately and shall apply to (a) any
 project established or any agent or project operator  appointed,  on  or
 after  the  date  this  act  shall  have  become a law and any financial
 S. 10100                            9
 
 assistance provided thereto, (b) any  amendment  or  revision  involving
 additional  financial assistance, funds or benefits made on or after the
 date this act shall have become a law to any project established,  agent
 or  project  operator appointed, or financial assistance provided, prior
 to that date, and (c) any state sales and compensating use tax or  other
 state  tax  exemption  benefits and any state sales and compensating use
 taxes or other  taxes  recovered,  recaptured,  received,  or  otherwise
 obtained  by an industrial development agency established by the general
 municipal law or an industrial development authority created by title 11
 or title 15 of article 8 of the public authorities law on or after  such
 date.