S.B. 397 Summary

• Requires building contractors and subcontractors to obtain tax clearances from the Department of Taxation and Internal Revenue Service before receiving building permits for private developments valued at $195,000 or greater.

• Mandates that contractors and subcontractors submit bulk sales certificates or tax clearances as a condition for assignment of contracts for private developments valued at $195,000 or greater.

• Requires state and county contracting officers to withhold final inspection of qualifying private developments until receiving tax clearances dated no earlier than 45 days before the inspection request.

• Exempts contractors and subcontractors certified as in good standing under an installment payment plan with the Department of Taxation or Internal Revenue Service from tax clearance requirements.

• Establishes penalties of up to $1,000 fine or one year imprisonment for government officers or employees who knowingly violate the section's provisions; takes effect July 1, 2050.