Bill Text: NY S06725 | 2019-2020 | General Assembly | Amended

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Bill Title: Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-01-28 - referred to codes [S06725 Detail]

Download: New_York-2019-S06725-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         6725--A
            Cal. No. 63

                               2019-2020 Regular Sessions

                    IN SENATE

                                   September 18, 2019
                                       ___________

        Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules  --  recommitted  to
          the  Committee  on  Codes  in accordance with Senate Rule 6, sec. 8 --
          reported favorably from said committee, ordered to  first  and  second
          report,  ordered  to  a  third reading, amended and ordered reprinted,
          retaining its place in the order of third reading

        AN ACT to amend the penal law, in relation to  the  misappropriation  of
          payroll funds

          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 165.80  to
     2  read as follows:
     3  § 165.80 Misappropriation of payroll funds.
     4    A person is guilty of misappropriation of payroll funds when he or she
     5  knows  that funds are designated for use as employee payroll funds or as
     6  payment of payroll taxes, and  intentionally  prevents  the  funds  from
     7  being  used  for their designated purpose.  A delayed transfer of funds,
     8  in accordance with an agreement between a payroll processing company and
     9  an employer for the purpose of investigating potentially  fraudulent  or
    10  incorrect transactions, shall not constitute misappropriation of payroll
    11  funds.  A  payroll  processing  company  shall not be responsible for an
    12  employer's failure to provide sufficient funds.
    13    Misappropriation of payroll funds is a class E felony.
    14    § 2. Paragraph (c) of subdivision 2 of section 20.20 of the penal law,
    15  as amended by chapter 671 of the laws of 1986, is  amended  to  read  as
    16  follows:
    17    (c)  The conduct constituting the offense is engaged in by an agent of
    18  the corporation while acting within the scope of his or  her  employment
    19  and  in  behalf of the corporation, and the offense is (i) a misdemeanor
    20  or a violation, (ii) one defined by a statute which clearly indicates  a
    21  legislative  intent  to impose such criminal liability on a corporation,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13785-02-0
        S. 6725--A                          2

     1  [or] (iii) any offense set forth in title twenty-seven of article seven-
     2  ty-one of the environmental conservation law, or  (iv)  misappropriation
     3  of payroll funds as defined in section 165.80 of this chapter.
     4    § 3. This act shall take effect immediately.