NY State Senate Bill 2011-S567

Senate Bill S567

2011-2012 Legislative Session

Authorizes the denial of renewal of professional, business or trade licenses where a taxpayer has outstanding tax debt which the taxpayer has failed to settle

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to finance
Jan 05, 2011	referred to finance

2011-S567 (ACTIVE) - Details

See Assembly Version of this Bill:: A9323
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §32, Exec L; amd §401, St Ad Proc Act; amd §53, Judy L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6161, A9418
2013-2014: A3716
2015-2016: A1415
2017-2018: A774
2019-2020: A1895
2021-2022: A1852
2023-2024: A3489

2011-S567 (ACTIVE) - Summary

Authorizes the denial of the renewal of a license, permit, certificate, registration or admission to practice a profession, business or trade where a taxpayer has outstanding tax debt which the taxpayer has failed to enter into a settlement agreement for the payment thereof; requires each taxpayer renewing a license to practice a profession, business or trade to attest to the licensing agency that he or she does not have an unsettled outstanding tax debt.

2011-S567 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S567                REVISED 02/15/12

TITLE OF BILL:
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

PURPOSE:
This bill provided the State of New York with additional
tools to collect outstanding tax debt.

SUMMARY OF PROVISIONS:
Section 1: Amends Executive law section 32 to empower state agencies
to deny the renewal of professional licenses to individuals unable to
provide proof that they do not owe tax debt.

Section 2: Amends State Administrative Procedure Act section 401 to
state that an individual must submit a self-certification, under
penalty of perjury, that they do not have a tax debt when seeking to
renew a license, and states that agencies may deny the renewal of a
license to individuals that owe tax debt.

Section 3: Amends Judiciary Law section 53 to state that an
individual must submit a self-certification, under penalty of

perjury, that they do not have a tax debt when seeking to renew their
license as an attorney or counselor at law.

Section 4: One year after it shall have become law.

EXISTING LAW:
Existing law does not give state agencies the authority to deny the
renewal of licenses based on a licensee owing tax debt to New York
State.

STATEMENT IN SUPPORT:
The ability to effectively collect taxes is crucial for the
functioning of State government. While the Department of Tax and
Finance has various powers and tools at its disposal to try to
collect tax debt, according to the department there was an
outstanding collectable tax debt of $2.5 billion as of April 30, 2009.

In several other states, such as Illinois, Massachusetts, Minnesota,
Missouri, Rhode Island, and wisconsin, revenue departments have the
power to suspend or deny the renewal of professional licenses, and
other licenses, if an individual owes a tax debt to the state. These
programs
have proven successful, and have been expanded and improved over the
last few years. In Illinois, an improvement in their ability to match
tax debt records with those of licensing agencies brought an
additional $4 million in revenue collected between February 2009 and
the end of June, 2009. Massachusetts granted the power to suspend or
deny the renewal of professional and driver's licenses to their
Department of Revenue starting in 2008, and from September 2008 to
July 2009 this program collected an additional $9 million in revenue.


This legislation would allow the State to deny renewal of professional
or business licenses if an entity was found to owe taxes to the
state, which is defined as having a tax warrant issued against them.
All state agencies that license professionals would add as part of
the license renewal application a form in which individuals would,
under penalty of perjury, affirm that they did not owe a tax debt, or
had entered into an agreement with the Department of Tax and Finance
to payoff the tax debt. This is similar to the system which state
agencies use to check compliance with an individual's child support
obligations. If any agency was informed, or found out during any
audits that an individual owed tax debt at the time of the
affirmation, they would be able to take action against an individual,
including revoking their license as a penalty for lying on their
renewal application.

PRIOR LEGISLATIVE HISTORY:
2010 - S.6161 - Referred to Finance

BUDGET IMPLICATIONS:
There will be costs associated with the creation of new
self-affirmation forms as part of the license renewal process. This
bill shall also lead to increased collections of outstanding tax
debt, which would off set any costs, as these programs have in all
other states that implement them.

EFFECTIVE DATE:
This act shall take effect on one year after it shall have become a law.

2011-S567 (ACTIVE) - Bill Text download pdf

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

                                   567

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

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

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

                                                           LBD04867-01-1

S. 567                              2

license, permit, or certificate of qualification, authority[,] or opera-
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.

S. 567                              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.

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