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Sponsors
2 Co-sponsors
History
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the disqualification of tax delinquent bidders with some exceptions
In Senate Committee · Finance · Sponsor Brian Kavanagh
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to the disqualification of tax delinquent bidders and certain exceptions
Purpose or general idea of bill
The bill requires all state agencies, including public authorities, and public benefit corporations to check on the tax delinquency status of each vendor prior to entering into a contract or subcontract to insure that contracts and subcontracts are awarded or approved only to those firms in good standing with the New York State Department of Taxation and Finance, with exceptions to be made for certain circumstances.
Summary of specific provisions
Section one of the bill adds a new §169 to the State Finance Law as follows:
Read the full memo (630 words)
* Subdivision 1 of § 169 provides that no state agency, public authority, or public benefit corporation can award a contract or subcontract to any vendor until it has verified that the bidder is free of tax warrants by the Department of Taxation and Finance.
* Subdivision 2, paragraph (a) allows for an exception in cases where there exists an emergency condition which requires immediate action.
* Subdivision 2, paragraph (b) allows for an exception in cases where the tax delinquent bidder is the only available source of the item to be purchased.
* Subdivision 2, paragraph (c) allows for an exception in cases where the tax delinquent bidder has entered into a repayment agreement or the Department of Taxation and Finance has declared the outstanding tax warrant to be de minimis.
* Subdivision 3 defines an "emergency condition" as a condition caused by a natural disaster, fire, or other casualty, or another unanticipated and unexpected occurrence.
* Subdivision 4 requires that an agency shall inform the Comptroller of instances in which it awards a contract based upon a determination that an emergency condition exists and that the Comptroller may void such contracts if the agency has not satisfied the conditions for awarding a contract under such a determination.
* Subdivision 5 grants authority to the Comptroller to determine whether proof is sufficient to satisfy the tax warrant for purposes of subdivision 2, paragraph (c).
Section two of the bill specifies the effective date.
Justification
The Department of Taxation and Finance provides the Department of State with continuous notice of tax warrants filed against any business entity for failure to pay tax. Warrants are filed at the end of the taxpayer's appeal process, after the taxpayer has exhausted all opportunities to legitimately challenge the tax liability. A pre-award check of this database would allow any contracting entity to immediately determine whether or not the law bidder or proposed subcontractor is in good standing with the Tax Department and Department of State. Those bidders and subcontractors that have outstanding warrants against them could remedy their problem by paying in full to the Department of Taxation and Finance all back taxes, penalties, and interest awed. A version of this bill was passed by the Assembly and Senate in 2007 and vetoed by the Governor due to technical issues. These issues have been addressed through new provisions that provide exceptions far emergency conditions, sale source providers, and instances where the bidder is attempting in good faith to satisfy the tax warrant or where the amount of the delinquency is de minimus.
Prior legislative history
1999-00: A.7338 Passed Assembly. 2001-02: A.7053 Passed Assembly. 2003-04: A.6505 Passed Assembly/S.4216 Senate 3rd Reading Cal. 2006: A.10377-A Assembly 3rd Reading Cal./S.2791-A Passed Senate. 2007: A.7476/S.836 Veto 18 of 2007. 2008: A.10241/S.7568 Veto 31 of 2008.
Fiscal implications
This legislation will result in an increase in the amount and the timeliness of tax collections, interest, and penalties.
Effective date
This act shall take effect an the 120th day after it shall have became law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.