Bill Text: NY S01331 | 2021-2022 | General Assembly | Introduced

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Bill Title: Creates the offense of defrauding the government in the first degree and expands the definition of conspiracy in the fourth degree; relates to expanding the definition of tax fraud acts.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2022-04-26 - referred to codes [S01331 Detail]

Download: New_York-2021-S01331-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1331

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 11, 2021
                                       ___________

        Introduced  by Sens. KRUEGER, LIU -- read twice and ordered printed, and
          when printed to be committed to the Committee on Codes

        AN ACT to amend the penal law, in relation to creating  the  offense  of
          defrauding  the government in the first degree and expanding the defi-
          nition of conspiracy in the fourth degree; and to amend  the  tax  law
          and  the  administrative  code of the city of New York, in relation to
          expanding the definition of tax fraud acts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The penal law is amended by adding a new section 195.22 to
     2  read as follows:
     3  § 195.22 Defrauding the government in the first degree.
     4    A person is guilty of defrauding the government in  the  first  degree
     5  when,  he  or  she  knowingly manufactures, sells, installs, or uses, or
     6  attempts to manufacture,  sell,  install  or  use,  an  automated  sales
     7  suppression  device  for the purpose of enabling or assisting any person
     8  to evade any tax owed to the state or a  political  subdivision  of  the
     9  state or any instrumentality of the state.
    10    For  purposes  of this section an "automated sales suppression device"
    11  is a software program that falsifies electronic records for the  purpose
    12  of  evading  any  tax owed to the state, or any political subdivision of
    13  the state, or any instrumentality of  the  state.  An  "automated  sales
    14  suppression device" includes any software program that is (a) maintained
    15  on  a USB memory stick or thumb drive, zapper, removable compact disc or
    16  other external device, or (b) embedded in the operating system as "phan-
    17  tom ware," or (c) otherwise accessed remotely.
    18    Defrauding the government in the first degree is a class D felony.
    19    § 2. Section 105.10 of the penal law is amended by adding a new subdi-
    20  vision 4 to read as follows:
    21    4. the felony of defrauding the government  in  the  first  degree  as
    22  defined in section 195.22 of this part (defrauding the government in the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04926-01-1
        S. 1331                             2

     1  first  degree),  be performed, he or she agrees with one or more persons
     2  to engage in or cause the performance of such conduct.
     3    § 3. Subparagraphs 7 and 8 of paragraph (a) of section 1801 of the tax
     4  law, as added by section 15 of subpart I of part V1 of chapter 57 of the
     5  laws  of  2009, are amended and a new subparagraph 9 is added to read as
     6  follows:
     7    (7) with intent to evade any tax fails to pay that tax; or
     8    (8) issues an exemption certificate,  interdistributor  sales  certif-
     9  icate, resale certificate, or any other document capable of evidencing a
    10  claim that taxes do not apply to a transaction, which he or she does not
    11  believe  to  be  true and correct as to any material matter, which omits
    12  any material information, or which is  false,  fraudulent,  or  counter-
    13  feit[.]; or
    14    (9) uses an automated sales suppression device as described in section
    15  195.22 of the penal law (defrauding the government in the first degree).
    16    §  4. Subparagraphs 7 and 8 of paragraph (a) of section 11-4002 of the
    17  administrative code of the city of New York, as added by chapter 201  of
    18  the  laws of 2009, are amended and a new subparagraph 9 is added to read
    19  as follows:
    20    (7) with intent to evade any tax imposed under any designated  chapter
    21  of this title, fails to pay that tax; or
    22    (8)  issues  an  exemption certificate, interdistributor sales certif-
    23  icate, resale certificate, or any other document capable of evidencing a
    24  claim that taxes imposed under a designated chapter of this title do not
    25  apply to a transaction, which he or she does not believe to be true  and
    26  correct as to any material matter, which omits any material information,
    27  or which is false, fraudulent, or counterfeit[.]; or
    28    (9) uses an automated sales suppression device as described in section
    29  195.22 of the penal law (defrauding the government in the first degree).
    30    § 5. This act shall take effect on the first of November next succeed-
    31  ing the date upon which it shall have become a law.