Bill Text: NY A07408 | 2019-2020 | General Assembly | Introduced

---

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 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to codes [A07408 Detail]

Download: New_York-2019-A07408-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          7408
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       May 1, 2019
                                       ___________
        Introduced by M. of A. LENTOL -- read once and referred 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.
                                                                   LBD06760-01-9
        A. 7408                             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.