Section 1701. Financial institution data match system for state tax collection purposes

1. Definitions. As used in this section:    (a) "Debt" means all liabilities, including unpaid tax, interest,  and
  penalty,  that  the  commissioner is required by law to collect and that
  have been reduced to judgment by the docketing of a New York  state  tax
  warrant in the office of a county clerk located in the state of New York
  or  by  the  filing  of  a  copy  of  the  warrant  in the office of the
  department of state.
    (b) "Tax debtor" means a natural person or any  entity  other  than  a
  natural  person  named  on  a  New York state tax warrant and identified
  thereon as a judgment debtor.
    (c) "Financial institution" means any financial institution authorized
  or required to participate in a financial institution data match  system
  or program for child support enforcement purposes under federal or state
  law.
    2.  Financial  institution  data match system for state tax collection
  purposes. (a) To assist the commissioner in the collection of debts, the
  department must develop and operate a financial institution  data  match
  system  for the purpose of identifying and seizing the non-exempt assets
  of tax debtors as identified by the commissioner.  The  commissioner  is
  authorized  to  designate  a  third  party  to  develop and operate this
  system. Any third party designated by the commissioner  to  develop  and
  operate  a  financial  data  match  system  must keep all information it
  obtains  from  both  the  department  and  the   financial   institution
  confidential,  and  any  employee, agent or representative of that third
  party is prohibited from disclosing that  information  to  anyone  other
  than the department or the financial institution.
    (b)  Each  financial  institution doing business in the state must, in
  conjunction with  the  commissioner  or  the  commissioner's  authorized
  designee,  develop  and  operate  a  data match system to facilitate the
  identification and seizure of non-exempt financial assets of tax debtors
  identified  by  the  commissioner  or  the   commissioner's   authorized
  designee.  If  a financial institution has a data match system developed
  or used to administer the child support  enforcement  programs  of  this
  state,  and  if  that  system  is  approved  by  the commissioner or the
  commissioner's authorized designee, the financial  institution  may  use
  that system to comply with the provisions of this section.
    3.  Each  financial  institution  must provide identifying information
  each calendar quarter to the department for each tax  debtor  identified
  by  the  department who or that maintains an account at the institution.
  The identifying information must include the tax debtor's name, address,
  and social security number or other taxpayer identification number,  and
  all account numbers and balances in each account.
    4. A financial institution that complies with this section will not be
  liable  under  state law to any person for the disclosure of information
  to the commissioner or the commissioner's authorized  designee,  or  any
  other action taken in good faith to comply with this section.
    5.   Both  the  financial  institution  furnishing  a  report  to  the
  commissioner  under  this  section  and  the  commissioner's  authorized
  designee  are prohibited from disclosing to the tax debtor that the name
  of  the  tax  debtor  has  been  received  from  or  furnished  to   the
  commissioner, unless authorized in writing by the commissioner to do so.
  A violation of this subdivision will result in the imposition of a civil
  penalty  equal  to  the greater of one thousand dollars or the amount in
  the account of the person to whom  the  disclosure  was  made  for  each
  instance  of  unauthorized disclosure by the financial institution. That
  civil penalty can be assessed and collected under  this  chapter  as  if
  that penalty were tax.

    6.  A  financial institution may disclose to its depositors or account
  holders that  the  department  has  the  authority  to  request  certain
  identifying  information  on certain depositors or account holders under
  the financial institution data match system  for  state  tax  collection
  purposes.