Bill Text: NY S06468 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to personal liability for certain contributions, penalties and interest regarding corporations, limited liability companies and partnerships; defines terms; provides that if a corporation, limited liability company or partnership fails to make employer contributions or fails to file quarterly combined withholding, wage reporting and unemployment insurance returns, all persons shall be jointly and severally liable for the total amount of such contributions not collected, penalties and any interest accruing thereon owed by their corporation, limited liability company or partnership.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LABOR [S06468 Detail]

Download: New_York-2019-S06468-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6468

                               2019-2020 Regular Sessions

                    IN SENATE

                                      June 12, 2019
                                       ___________

        Introduced  by  Sen. RAMOS -- (at request of the Department of Labor) --
          read twice and ordered printed, and when printed to  be  committed  to
          the Committee on Rules

        AN  ACT  to  amend  the labor law, in relation to personal liability for
          certain contributions, penalties and interest

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

     1    Section  1.  The labor law is amended by adding a new section 573-a to
     2  read as follows:
     3    § 573-a. Personal liability for contributions, penalties, and interest
     4  regarding corporations, limited liability companies,  and  partnerships.
     5  1.  For  purposes of this section, the term "person" shall mean: (a) any
     6  officer of a corporation; (b) any manager or member of a limited liabil-
     7  ity company formed under the limited liability company  law  or  similar
     8  statutes  in other states or countries, who has an ownership interest in
     9  or management authority over the limited liability company; and (c)  all
    10  partners  under  the partnership law including: (i) general partners and
    11  (ii) any limited partners to the extent that such limited  partners  are
    12  liable to third parties under the partnership law.
    13    2.  Notwithstanding  any  other  provision  of  law, if a corporation,
    14  limited liability company or partnership has  failed  to  make  employer
    15  contributions  as  required by this article, or has failed to file quar-
    16  terly combined withholding, wage reporting  and  unemployment  insurance
    17  returns  as required by paragraph four of subsection (a)  of section six
    18  hundred seventy-four of the tax law, all persons shall  be  jointly  and
    19  severally  liable  for  the  total  amount  of  such  contributions  not
    20  collected, penalties and any interest accruing  thereon  owed  by  their
    21  corporation,  limited  liability  company  or  partnership. Such persons
    22  shall be considered employers for purposes  of  collecting  amounts  due
    23  pursuant  to this subdivision pursuant to the provisions of this article
    24  and other provisions of law. The liability of any person  shall  not  be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09184-01-9

        S. 6468                             2

     1  relieved by the dissolution of the corporation, limited liability compa-
     2  ny or partnership.
     3    3.  The  commissioner,  after issuing a determination that a person is
     4  liable for amounts due under subdivision  two  of  this  section,  shall
     5  provide  notice of the basis for personal liability and the total amount
     6  due and unpaid by such corporation, limited liability company  or  part-
     7  nership in such determination.
     8    4.  A  person  determined  to  be personally liable under this section
     9  shall have all rights of appeal set forth in title eight of this article
    10  solely with respect to such determination of his or her personal liabil-
    11  ity.
    12    § 2. This act shall take effect immediately and shall apply to amounts
    13  that become due for the quarterly period after the date this  act  shall
    14  have become a law.
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