Bill Text: NY A08648 | 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: (Introduced - Dead) 2020-02-03 - print number 8648a [A08648 Detail]

Download: New_York-2019-A08648-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         8648--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                     October 2, 2019
                                       ___________

        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee  on  Codes  -- recommitted to the Committee on Codes in accordance
          with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13785-03-0