S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1561
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2025
                                ___________
 
 Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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-X 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-X 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.
   § 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04325-01-5
              

 S. 1561                             2
 
 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-X OF THE TAX LAW. NO SUCH PERSON HAVING PAST-DUE TAX
 LIABILITIES, AS DEFINED IN SUBDIVISION ONE OF SECTION ONE HUNDRED SEVEN-
 TY-ONE-X  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-x to read as
 follows:
   § 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  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)
 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
 S. 1561                             3
 
 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 THE SUBJECT 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 THE INDIVID-
 UAL IS ELIGIBLE PURSUANT TO THAT SECTION, OR ESTABLISHING TO THE DEPART-
 MENT 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.
   (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.
 S. 1561                             4
 
   (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, 2027; 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.