S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5829
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2025
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN  ACT  to  amend  the tax law, in relation to making technical changes
   relating to the rescindment of certificates of authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (A)  of  paragraph  4 of subdivision (a) of
 section 1134 of the tax law, as amended by section 2 of part P of  chap-
 ter 59 of the laws of 2021, is amended to read as follows:
   (A)  Where  a  person  who  holds a certificate of authority, AND WITH
 RESPECT TO ONLY THE PERSON'S OBLIGATION  TO  PAY  TAXES,  (i)  willfully
 fails to file a report or return required by this article, (ii) willful-
 ly  files,  causes  to  be  filed, gives or causes to be given a report,
 return, certificate or affidavit required under this  article  which  is
 false,  (iii) willfully fails to comply with the provisions of paragraph
 two or three of subdivision (e) of section eleven  hundred  thirty-seven
 of  this [article] PART, (iv) willfully fails to prepay, collect, truth-
 fully account for or pay over any tax  imposed  under  this  article  or
 pursuant  to  the  authority of article twenty-nine of this chapter, (v)
 fails to obtain a bond pursuant to paragraph two of subdivision  (e)  of
 section  eleven  hundred  thirty-seven  of this part, or fails to comply
 with a notice issued by the commissioner pursuant to paragraph three  of
 such  subdivision,  (vi)  has  been convicted of a crime provided for in
 this chapter, (vii) where such person, or  any  person  affiliated  with
 such person as such term is defined in subdivision twenty-one of section
 four  hundred seventy of this chapter, has had a retail dealer registra-
 tion issued pursuant to section four hundred eighty-a  of  this  chapter
 revoked  pursuant  to subparagraph (iii) of paragraph (a) of subdivision
 four of such section four hundred eighty-a, or (viii) has not obtained a
 valid retail dealer registration under section four hundred eighty-a  of
 this  chapter and such person possesses or sells unstamped or unlawfully
 stamped packages of cigarettes three or more times within  a  period  of
 five  years,  the commissioner may revoke or suspend such certificate of
 authority and all duplicates  thereof.    Provided,  however,  that  the
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08163-02-5
 S. 5829                             2
 
 commissioner  may  revoke or suspend a certificate of authority based on
 (a) the grounds set forth in clause (vi) of this subparagraph only where
 the conviction referred to occurred not more than one year prior to  the
 date  of  revocation  or suspension; and provided further that where the
 commissioner revokes or suspends a certificate of authority based on the
 grounds set forth in clause (vii) of this subparagraph, such  suspension
 or revocation shall continue for as long as the revocation of the retail
 dealer  registration  pursuant  to section four hundred eighty-a of this
 chapter remains in effect, or (b) the grounds set forth in clause (viii)
 of this subparagraph, such suspension or revocation shall be for a peri-
 od of five years.
   § 2. Subparagraph (A) of paragraph 4 of  subdivision  (a)  of  section
 1134  of  the tax law, as amended by section 2-a of part P of chapter 59
 of the laws of 2021, is amended to read as follows:
   (A) Where a person who holds a  certificate  of  authority,  AND  WITH
 RESPECT  TO  ONLY  THE  PERSON'S  OBLIGATION TO PAY TAXES, (i) willfully
 fails to file a report or return required by this article, (ii) willful-
 ly files, causes to be filed, gives or causes  to  be  given  a  report,
 return,  certificate  or  affidavit required under this article which is
 false, (iii) willfully fails to comply with the provisions of  paragraph
 two  or  three of subdivision (e) of section eleven hundred thirty-seven
 of this [article] PART, (iv) willfully fails to prepay, collect,  truth-
 fully  account  for  or  pay  over any tax imposed under this article or
 pursuant to the authority of article twenty-nine of  this  chapter,  (v)
 has  been  convicted of a crime provided for in this chapter, (vi) where
 such person, or any person affiliated with such person as such  term  is
 defined  in  subdivision  twenty-one  of section four hundred seventy of
 this chapter, has had a retail dealer registration  issued  pursuant  to
 section  four  hundred  eighty-a  of  this  chapter suspended or revoked
 pursuant to subparagraph (iii) of paragraph (a) of subdivision  four  of
 such  section  four  hundred eighty-a, or (vii) has not obtained a valid
 retail dealer registration under section four hundred eighty-a  of  this
 chapter  and  such  person  possesses  or  sells unstamped or unlawfully
 stamped packages of cigarettes three or more times within  a  period  of
 five  years,  the commissioner may revoke or suspend such certificate of
 authority and  all  duplicates  thereof.  Provided,  however,  that  the
 commissioner  may  revoke or suspend a certificate of authority based on
 (a) the grounds set forth in clause (v) of this subparagraph only  where
 the  conviction referred to occurred not more than one year prior to the
 date of revocation or suspension; and provided further  that  where  the
 commissioner revokes or suspends a certificate of authority based on the
 grounds  set  forth in clause (vi) of this subparagraph, such suspension
 or revocation shall continue for as long as the revocation of the retail
 dealer registration pursuant to section four hundred  eighty-a  of  this
 chapter  remains in effect, or (b) the grounds set forth in clause (vii)
 of this subparagraph, such suspension or revocation shall be for a peri-
 od of five years.
   § 3. This act shall take effect immediately and shall apply to any and
 all notices for  rescindment  issued  on  and  after  January  1,  2015;
 provided  that  the  amendments  to  subparagraph  (A) of paragraph 4 of
 subdivision (a) of section 1134 of the tax law made by  section  one  of
 this  act  shall  be subject to the   expiration   and reversion of such
 subparagraph pursuant to subdivision (e) of section  23  of  part  U  of
 chapter  61  of  the laws of 2011,   as amended, when upon such date the
 provisions of section two of this act shall take effect.