S T A T E   O F   N E W   Y O R K
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                                  1415

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

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:
  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
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.
                                                           LBD05311-01-5
              

A. 1415                             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.
  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.

A. 1415                             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.