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Same as: A7911A-2011 / Versions: S5460-2011 S5460A-2011

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S5460A-2011 Actions

• Jul 20, 2011: SIGNED CHAP.206
• Jul 8, 2011: DELIVERED TO GOVERNOR
• Jun 20, 2011: returned to senate
• Jun 20, 2011: passed assembly
• Jun 20, 2011: ordered to third reading rules cal.494
• Jun 20, 2011: substituted for a7911a
• Jun 16, 2011: referred to ways and means
• Jun 16, 2011: DELIVERED TO ASSEMBLY
• Jun 16, 2011: PASSED SENATE
• Jun 6, 2011: ADVANCED TO THIRD READING
• Jun 2, 2011: 2ND REPORT CAL.
• Jun 2, 2011: AMENDED 5460A
• Jun 1, 2011: 1ST REPORT CAL.904
• May 25, 2011: COMMITTEE DISCHARGED AND COMMITTED TO BANKS
• May 24, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S5460A-2011 Calendars

Floor Calendar: Jun 6, 2011 , Floor Calendar: Jun 7, 2011 , Floor Calendar: Jun 13, 2011 , Floor Calendar: Jun 14, 2011 , Floor Calendar: Jun 15, 2011 , Floor Calendar: Jun 16, 2011

S5460A-2011 Votes

S5460A-2011 Memo

BILL NUMBER:S5460A

TITLE OF BILL:
An act
to amend the tax law, in relation to access to the wage reporting system

PURPOSE:
To provide the New York State and Local Retirement System
with access to the wage reporting system administered by the
department of taxation and finance.

SUMMARY OF PROVISIONS:
Section 1 of this bill amends Section 171-a
of the Tax Law to provide the New York State and Local Retirement
System with access to the wage reporting system administered by the
Department of Taxation and Finance.

Section 2 of this bill amends Paragraph 3 of Subsection (e) of
Section 697 of the Tax Law to clarify that the Department of Taxation
and Finance is allowed to furnish information to the Office of the
State Comptroller for purposes of verifying the income of a retired
member of a retirement system or pension plan administered by the
state or any of its political subdivisions who returns to public
employment.

Section 3 of this bill provides for an effective date of the 180th day
after it shall have become a law.

PRIOR LEGISLATIVE HISTORY:
New Bill.

JUSTIFICATION:
Sections 102, 211, 212 and 402 of the Retirement and
Social Security Law place limits on the amount that may be earned by
a retiree upon a return to public employment. The Comptroller and the
New York State and Local Retirement System have a fiduciary
obligation to suspend the payment of retirement benefits to retirees
who re-enter the public workforce and whose salaries exceed the
earnings limitations. At present, the New York State and Local
Retirement System compares information with the Division of Payroll
within the Office of the State Comptroller in an effort to identify
retirees who have obtained employment with the state. However, no
mechanism exists to carry out a similar search for retirees employed
with the thousands of local public employers in the state. Access to
the wage reporting system would provide such a mechanism. The
Comptroller urges passage of this legislation.

BUDGET IMPLICATIONS:
This bill has no significant fiscal impact.

EFFECTIVE DATE:
This bill would be effective on the 180th day after it
was signed into law.

S5460A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 5460--A
 Cal. No. 904
 2011-2012 Regular Sessions
 I N  SENATE
 May 24, 2011
 
 Introduced  by  Sen.  GRIFFO -- (at request of the State Comptroller) -
 read twice and ordered printed, and when printed to  be  committed  to
 the Committee on Investigations and Government Operations -- committee
 discharged  and  said  bill  committed  to  the  Committee on Banks -
 reported favorably from  said  committee,  ordered  to  first  report,
 amended  on  first  report,  ordered  to  a  second  report, and to be
 reprinted as amended, retaining its  place  in  the  order  of  second
 report
 

AN ACT to amend the tax law, in relation to access to the wage reporting
 system
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

Section 171-a of the tax law, as added by  chapter  545  of
 the  laws of 1978, is amended by adding a new subdivision 6-b to read as
 follows:

 (6-B) NOTWITHSTANDING ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  THE
 COMMISSIONER  SHALL  ENTER  INTO  A COOPERATIVE AGREEMENT WITH THE STATE
 COMPTROLLER, WHICH AGREEMENT SHALL PROVIDE FOR THE UTILIZATION OF INFOR
 MATION OBTAINED  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS  SECTION,  FOR
 PURPOSES  OF  DETERMINING  THE  AMOUNT  A RETIRED MEMBER OF A RETIREMENT
 SYSTEM OR PENSION PLAN ADMINISTERED BY THE STATE OR ANY OF ITS POLITICAL
 SUBDIVISIONS WHO  RETURNS  TO  PUBLIC  EMPLOYMENT  HAS  EARNED  FOR  THE
 PURPOSES  OF  SECTIONS  ONE HUNDRED TWO, TWO HUNDRED ELEVEN, TWO HUNDRED
 TWELVE AND FOUR HUNDRED TWO OF THE RETIREMENT AND SOCIAL SECURITY LAW.
 

S 2. Paragraph 3 of subsection (e) of section 697 of the tax  law,  as
 amended  by  chapter  182  of  the  laws  of 2010, is amended to read as
 follows:

 (3) Nothing herein shall be construed to prohibit the department,  its
 officers  or  employees  from  furnishing  information  to the office of
 temporary and disability assistance relating to the payment of the cred
 it for certain household and dependent care services necessary for gain
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11516-03-1
 
       S. 5460--A                          2
 ful employment under subsection (c) of section six hundred six  of  this
 article and the earned income credit under subsection (d) of section six
 hundred  six of this article and the enhanced earned income credit under
 subsection (d-1) of section six hundred six of this article, or pursuant
 to  a  local law enacted by a city having a population of one million or
 more pursuant to subsection (f) of section thirteen hundred ten of  this
 chapter,  only  to  the  extent  necessary  to calculate qualified state
 expenditures under paragraph seven of subdivision (a)  of  section  four
 hundred nine of the federal social security act or to document the prop
 er  expenditure of federal temporary assistance for needy families funds
 under section four hundred three of such act. The  office  of  temporary
 and  disability assistance may redisclose such information to the United
 States department of health and human services only to the extent neces
 sary to calculate such qualified state expenditures or to  document  the
 proper  expenditure of such federal temporary assistance for needy fami
 lies funds. Nothing herein shall be construed to prohibit  the  delivery
 by  the  commissioner to a commissioner of jurors, appointed pursuant to
 section five hundred four of the judiciary law, or, in  counties  within
 cities  having  a population of one million or more, to the county clerk
 of such county, of a mailing list of  individuals  to  whom  income  tax
 forms are mailed by the commissioner for the sole purpose of compiling a
 list of prospective jurors as provided in article sixteen of the judici
 ary law. Provided, however, such delivery shall only be made pursuant to
 an order of the chief administrator of the courts, appointed pursuant to
 section  two  hundred  ten  of  the  judiciary law. No such order may be
 issued unless such chief administrator is satisfied  that  such  mailing
 list  is  needed  to compile a proper list of prospective jurors for the
 county for which such order is sought and that, in view of the responsi
 bilities imposed by the various laws of the state on the department,  it
 is  reasonable  to  require  the commissioner to furnish such list. Such
 order shall provide that such list shall be used for the sole purpose of
 compiling a list of prospective jurors and  that  such  commissioner  of
 jurors,  or  such county clerk, shall take all necessary steps to insure
 that the list is kept confidential and that there is no unauthorized use
 or disclosure  of  such  list.  Furthermore,  nothing  herein  shall  be
 construed  to  prohibit  the  delivery  to a taxpayer or his or her duly
 authorized representative of a certified copy of any  return  or  report
 filed  in  connection with his or her tax or to prohibit the publication
 of statistics so classified as to prevent the identification of  partic
 ular  reports or returns and the items thereof, or the inspection by the
 attorney general or other legal representatives  of  the  state  of  the
 report  or return of any taxpayer or of any employer filed under section
 one hundred seventy-one-h  of  this  chapter,  where  such  taxpayer  or
 employer  shall bring action to set aside or review the tax based there
 on, or against whom an action or proceeding under this chapter or  under
 this  chapter and article eighteen of the labor law has been recommended
 by the commissioner, the commissioner of labor with respect to unemploy
 ment insurance matters, or the attorney general or has been  instituted,
 or  the inspection of the reports or returns required under this article
 by the comptroller or duly designated officer or employee of  the  state
 department  of  audit and control, for purposes of the audit of a refund
 of any tax paid by a taxpayer under this article, or the  furnishing  to
 the  state  department  of  labor  of unemployment insurance information
 obtained or derived from quarterly combined withholding, wage  reporting
 and  unemployment  insurance  returns  required to be filed by employers
 pursuant to paragraph four of subsection  (a)  of  section  six  hundred
 
       S. 5460--A                          3
 seventy-four  of  this  article,  for purposes of administration of such
 department's  unemployment  insurance   program,   employment   services
 program,  federal and state employment and training programs, employment
 statistics  and  labor  market  information  programs, worker protection
 programs, federal programs for which the department  has  administrative
 responsibility  or  for other purposes deemed appropriate by the commis
 sioner of labor consistent with the provisions of  the  labor  law,  and
 redisclosure  of  such  information in accordance with the provisions of
 sections five hundred thirty-six and five hundred  thirty-seven  of  the
 labor  law  or  any other applicable law, or the furnishing to the state
 office of temporary and disability assistance of information obtained or
 derived from New York state personal income tax returns as described  in
 paragraph (b) of subdivision two of section one hundred seventy-one-g of
 this chapter for the purpose of reviewing support orders enforced pursu
 ant to title six-A of article three of the social services law to aid in
 the  determination  of  whether  such  orders should be adjusted, or the
 furnishing of information obtained  from  the  reports  required  to  be
 submitted  by  employers  regarding  newly  hired  or re-hired employees
 pursuant to section one hundred seventy-one-h of  this  chapter  to  the
 state  office  of temporary and disability assistance, the state depart
 ment of health, the state department of labor and the  workers'  compen
 sation  board  for  purposes  of  administration  of  the  child support
 enforcement program, verification of individuals' eligibility for one or
 more of the programs specified  in  subsection  (b)  of  section  eleven
 hundred  thirty-seven  of  the federal social security act and for other
 public assistance programs authorized by state law,  and  administration
 of  the  state's employment security and workers' compensation programs,
 and to the national directory  of  new  hires  established  pursuant  to
 section  four  hundred  fifty-three-A of the federal social security act
 for the purposes specified in such section, or  the  furnishing  to  the
 state  office of temporary and disability assistance of the amount of an
 overpayment of income tax and interest thereon certified  to  the  comp
 troller  to be credited against past-due support pursuant to section one
 hundred seventy-one-c of this chapter and of the name and social securi
 ty number of the taxpayer who made such overpayment, or  the  disclosing
 to  the  commissioner  of  finance  of the city of New York, pursuant to
 section one hundred seventy-one-l of this chapter, of the amount  of  an
 overpayment  and  interest  thereon  certified  to the comptroller to be
 credited against a city of New York tax warrant judgment debt and of the
 name and social security number of the taxpayer who made  such  overpay
 ment,  or the furnishing to the New York state higher education services
 corporation of the amount of an overpayment of income tax  and  interest
 thereon  certified  to the comptroller to be credited against the amount
 of a default in repayment of any education loan  debt,  including  judg
 ments,  owed  to  the federal or New York state government that is being
 collected by the New York state higher education  services  corporation,
 and of the name and social security number of the taxpayer who made such
 overpayment,  or the furnishing to the state department of health of the
 information required by paragraph (f) of subdivision two and subdivision
 two-a of section two thousand five hundred eleven of the  public  health
 law  and  by  subdivision eight of section three hundred sixty-six-a and
 paragraphs (b) and (d) of  subdivision  two  of  section  three  hundred
 sixty-nine-ee of the social services law, or the furnishing to the state
 university  of  New York or the city university of New York respectively
 or the attorney general on behalf of such state or city  university  the
 amount of an overpayment of income tax and interest thereon certified to
 
       S. 5460--A                          4
 the comptroller to be credited against the amount of a default in repay
 ment  of  a state university loan pursuant to section one hundred seven
 ty-one-e of this chapter and of the name and social security  number  of
 the  taxpayer  who  made  such overpayment, or the disclosing to a state
 agency, pursuant to section one hundred seventy-one-f of  this  chapter,
 of  the  amount  of an overpayment and interest thereon certified to the
 comptroller to be credited against a past-due legally  enforceable  debt
 owed  to  such  agency and of the name and social security number of the
 taxpayer who made such overpayment, or the furnishing  of  employee  and
 employer  information obtained through the wage reporting system, pursu
 ant to section one hundred seventy-one-a of this chapter,  as  added  by
 chapter  five  hundred forty-five of the laws of nineteen hundred seven
 ty-eight, to the state office of temporary  and  disability  assistance,
 the  department of health or to the state office of the medicaid inspec
 tor general for the purpose of verifying eligibility for and entitlement
 to amounts of benefits under the social services law or similar  law  of
 another  jurisdiction,  locating absent parents or other persons legally
 responsible for the support of applicants for or  recipients  of  public
 assistance  and  care  under the social services law and persons legally
 responsible for the support of a recipient of services under section one
 hundred eleven-g of the social services law and, in  appropriate  cases,
 establishing support obligations pursuant to the social services law and
 the family court act or similar provision of law of another jurisdiction
 for the purpose of evaluating the effect on earnings of participation in
 employment, training or other programs designed to promote self-suffici
 ency  authorized  pursuant to the social services law by current recipi
 ents of public assistance and care and by former applicants and  recipi
 ents  of  public assistance and care, (except that with regard to former
 recipients, information which relates to a particular  former  recipient
 shall  be  provided  with client identifying data deleted), to the state
 office of temporary and disability assistance for the purpose of  deter
 mining  the eligibility of any child in the custody, care and custody or
 custody and guardianship of a local social services district or  of  the
 office  of  children and family services for federal payments for foster
 care and adoption assistance pursuant to the provisions of title IV-E of
 the federal social security act by providing information with respect to
 the parents, the stepparents, the child and the siblings  of  the  child
 who  were  living  in  the same household as such child during the month
 that the court proceedings leading  to  the  child's  removal  from  the
 household  were  initiated,  or the written instrument transferring care
 and custody of the child pursuant to the  provisions  of  section  three
 hundred  fifty-eight-a  or  three  hundred  eighty-four-a  of the social
 services law was signed, provided however that the office  of  temporary
 and disability assistance shall only use the information obtained pursu
 ant  to  this subdivision for the purpose of determining the eligibility
 of such child for federal payments for foster care and adoption  assist
 ance  pursuant  to  the  provisions  of title IV-E of the federal social
 security act, and to the state department of labor, or other individuals
 designated by the commissioner of labor, for the purpose of the adminis
 tration of such department's unemployment insurance program,  employment
 services  program,  federal  and state employment and training programs,
 employment statistics and  labor  market  information  programs,  worker
 protection  programs,  federal  programs  for  which  the department has
 administrative responsibility or for other purposes  deemed  appropriate
 by the commissioner of labor consistent with the provisions of the labor
 law,  and  redisclosure  of  such  information  in  accordance  with the
 
       S. 5460--A                          5
 provisions of sections five hundred thirty-six and five hundred  thirty
 seven  of  the  labor  law,  or  the furnishing of information, which is
 obtained from the wage reporting system operated pursuant to section one
 hundred  seventy-one-a of this chapter, as added by chapter five hundred
 forty-five of the laws of nineteen hundred seventy-eight, to  the  state
 office  of  temporary  and  disability assistance so that it may furnish
 such information to public agencies of other  jurisdictions  with  which
 the state office of temporary and disability assistance has an agreement
 pursuant  to paragraph (h) or (i) of subdivision three of section twenty
 of the social services law, and to the state  office  of  temporary  and
 disability  assistance  for  the  purpose  of fulfilling obligations and
 responsibilities otherwise incumbent upon the state department of labor,
 under section one hundred twenty-four of the federal family support  act
 of  nineteen  hundred eighty-eight, by giving the federal parent locator
 service, maintained by  the  federal  department  of  health  and  human
 services,  prompt access to such information as required by such act, or
 to the state department of health to verify eligibility under the  child
 health  insurance plan pursuant to subdivisions two and two-a of section
 two thousand five hundred eleven of the public  health  law,  to  verify
 eligibility under the medical assistance and family health plus programs
 pursuant  to  subdivision eight of section three hundred sixty-six-a and
 paragraphs (b) and (d) of  subdivision  two  of  section  three  hundred
 sixty-nine-ee  of the social services law, and to verify eligibility for
 the program for elderly pharmaceutical insurance  coverage  under  title
 three  of  article  two of the elder law, or to the office of vocational
 and educational services for individuals with disabilities of the educa
 tion department, the commission for the blind and  visually  handicapped
 and  any  other  state vocational rehabilitation agency, for purposes of
 obtaining reimbursement from the federal social security  administration
 for  expenditures made by such office, commission or agency on behalf of
 disabled individuals who have achieved economic self-sufficiency  or  to
 the  higher  education services corporation for the purpose of assisting
 the corporation in default prevention and default collection  of  educa
 tion  loan  debt,  including  judgments, owed to the federal or New York
 state government; provided, however,  that  such  information  shall  be
 limited  to  the  names,  social  security numbers, home and/or business
 addresses, and employer names of defaulted or  delinquent  student  loan
 borrowers,  OR  TO  THE  OFFICE OF THE STATE COMPTROLLER FOR PURPOSES OF
 VERIFYING THE INCOME OF A RETIRED  MEMBER  OF  A  RETIREMENT  SYSTEM  OR
 PENSION  PLAN ADMINISTERED BY THE STATE OR ANY OF ITS POLITICAL SUBDIVI
 SIONS WHO RETURNS TO PUBLIC EMPLOYMENT.
 Provided, however, that  with  respect  to  employee  information  the
 office  of  temporary  and disability assistance shall only be furnished
 with the names, social security account numbers and gross wages of those
 employees who are (A) applicants for or recipients of benefits under the
 social services law, or similar provision of law of another jurisdiction
 (pursuant to an agreement under subdivision three of section  twenty  of
 the social services law) or, (B) absent parents or other persons legally
 responsible  for  the  support of applicants for or recipients of public
 assistance and care under the social services law or  similar  provision
 of  law of another jurisdiction (pursuant to an agreement under subdivi
 sion three of section twenty of the social services law), or (C) persons
 legally responsible for the support of a  recipient  of  services  under
 section  one  hundred  eleven-g  of  the  social services law or similar
 provision of law of another jurisdiction (pursuant to an agreement under
 subdivision three of section twenty of the social services law), or  (D)
 
       S. 5460--A                          6
 employees   about  whom  wage  reporting  system  information  is  being
 furnished to public agencies of  other  jurisdictions,  with  which  the
 state  office  of  temporary  and disability assistance has an agreement
 pursuant  to paragraph (h) or (i) of subdivision three of section twenty
 of the social services law, or (E) employees about whom  wage  reporting
 system  information  is  being  furnished  to the federal parent locator
 service, maintained by  the  federal  department  of  health  and  human
 services,  for the purpose of enabling the state office of temporary and
 disability assistance to fulfill obligations and responsibilities other
 wise incumbent upon the state department of  labor,  under  section  one
 hundred  twenty-four  of  the  federal  family  support  act of nineteen
 hundred eighty-eight, and, only if, the office of temporary and disabil
 ity assistance certifies to the commissioner that such persons are  such
 applicants,  recipients,  absent  parents or persons legally responsible
 for support or persons about whom information has been  requested  by  a
 public  agency  of another jurisdiction or by the federal parent locator
 service and further certifies that in the case of information  requested
 under  agreements  with  other  jurisdictions  entered  into pursuant to
 subdivision three of section twenty of the  social  services  law,  that
 such request is in compliance with any applicable federal law. Provided,
 further,  that  where  the office of temporary and disability assistance
 requests employee information for the purpose of evaluating the  effects
 on  earnings  of participation in employment, training or other programs
 designed to promote self-sufficiency authorized pursuant to  the  social
 services  law,  the  office of temporary and disability assistance shall
 only be furnished with the quarterly gross wages (excluding  any  refer
 ence  to the name, social security number or any other information which
 could be used to identify any employee or  the  name  or  identification
 number  of any employer) paid to employees who are former applicants for
 or recipients of public assistance and care and who are so certified  to
 the  commissioner  by  the  commissioner  of the office of temporary and
 disability assistance. Provided, further, that with respect to  employee
 information,  the  department of health shall only be furnished with the
 information required pursuant to the  provisions  of  paragraph  (f)  of
 subdivision  two  and  subdivision  two-a  of  section two thousand five
 hundred eleven of the public health law and subdivision eight of section
 three hundred sixty-six-a and paragraphs (b) and (d) of subdivision  two
 of  section three hundred sixty-nine-ee of the social services law, with
 respect to those individuals whose eligibility under  the  child  health
 insurance  plan,  medical  assistance  program,  and  family health plus
 program is to be determined pursuant to such provisions and with respect
 to those members of any such individual's household whose income affects
 such individual's eligibility and who are so certified  to  the  commis
 sioner  or  by  the  department  of health. Provided, further, that wage
 reporting information shall be furnished to the office of vocational and
 educational services for individuals with disabilities of the  education
 department,  the  commission  for the blind and visually handicapped and
 any other state vocational rehabilitation agency only  if  such  office,
 commission  or agency, as applicable, certifies to the commissioner that
 such information is necessary to obtain reimbursement from  the  federal
 social  security administration for expenditures made on behalf of disa
 bled individuals who have achieved self-sufficiency. Reports and returns
 shall be preserved for three years and thereafter until the commissioner
 orders them to be destroyed.
 

S 3. This act shall take effect on the one hundred eightieth day after
 ir shall have become a law.
 
       S. 5460--A                          7
 FISCAL NOTE.--Pursuant to Legislative Law,

Section 50:

 This  bill would give the state Comptroller access to the wage report
 ing system administered by the department of tax and finance. This would
 enable the New York State and Local Employees' Retirement System and the
 New York State and Local Police and Fire  Retirement  System  to  verify
 that  retirees  who  return  to work for any public employer are earning
 less than the limits under Sections 102, 211, 212 and 402 of the Retire
 ment and Social Security Law.
 If this bill is enacted, there would be no additional costs.  However,
 utilization  of this information could result in the partial recovery of
 the pensions of any retirees who earn in excess of these limits.
 This estimate, dated May 31, 2011, and intended for  use  only  during
 the 2011 Legislative Session, is Fiscal Note Number 2011-197 prepared by
 the  Actuary  for  the  New  York  State and Local Employees' Retirement
 System and the New York State  and  Local  Police  and  Fire  Retirement
 System.

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