S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6823--A

                            I N  S E N A T E

                            February 11, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to creating  a  taxpayer  abuse
  sanction,  and  to  amend the state finance law, in relation to estab-
  lishing the education taxpayer abuse penalty  fund  and  the  taxpayer
  abuse penalty fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 608 to  read
as follows:
  S 608. TAXPAYER ABUSE SANCTION.  (A) FOR PURPOSES OF THIS SECTION, THE
TERM  "PUBLIC  RETIREMENT  SYSTEM  OF THE STATE" SHALL MEAN THE NEW YORK
STATE EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK STATE  POLICEMEN'S  AND
FIREMEN'S  RETIREMENT  SYSTEM,  THE  NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM, THE NEW YORK CITY EMPLOYEES' RETIREMENT  SYSTEM,  THE  NEW  YORK
CITY TEACHERS' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE PENSION FUND,
THE  NEW YORK CITY FIRE DEPARTMENT PENSION FUND, THE NEW YORK CITY BOARD
OF EDUCATION RETIREMENT SYSTEM AND ANY OTHER RETIREMENT  SYSTEM  OF  THE
STATE OR CITY OF NEW YORK.
  (B)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TEN, THERE SHALL BE A SANCTION IMPOSED AGAINST THE  INCOME  OF  ANY
MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE, WHO WAS CONVICTED OF:
(1)  GRAND LARCENY IN THE FIRST DEGREE PURSUANT TO SECTION 155.42 OF THE
PENAL LAW; (2) GRAND LARCENY IN THE SECOND DEGREE  PURSUANT  TO  SECTION
155.40  OF  THE  PENAL LAW; OR (3) SCHEME TO DEFRAUD IN THE FIRST DEGREE
PURSUANT TO SECTION 190.65 OF THE PENAL LAW; WHERE SUCH  CONVICTION  WAS
BASED  UPON  ACTS COMMITTED WHICH RELATED TO THE NATURE OF SUCH MEMBER'S
PUBLIC SERVICE.
  (C) SUCH SANCTION SHALL BE IMPOSED FOR ANY TAXABLE YEAR  DURING  WHICH
SUCH  MEMBER  OF  A PUBLIC RETIREMENT SYSTEM OF THE STATE IS ELIGIBLE TO
RECEIVE A PENSION BENEFIT AND SHALL BE IN AN AMOUNT EQUAL TO THE  AMOUNT
OF ANY SUCH BENEFIT RECEIVED DURING SUCH TAXABLE YEAR.

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

                                                           LBD15780-07-0

S. 6823--A                          2

  (D)  MONIES  RECEIVED  FROM SANCTIONS IMPOSED PURSUANT TO THIS SECTION
SHALL:
  (1)  FOR  MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION OF A
PERSON WHO IS A MEMBER  OF  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT
SYSTEM;  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY BOARD OF EDUCATION RETIREMENT SYSTEM, BE DEPOSITED IN THE EDUCATION
TAXPAYER  ABUSE   PENALTY   FUND   ESTABLISHED   PURSUANT   TO   SECTION
NINETY-NINE-T  OF  THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT TO THE
PROVISIONS OF SUCH SECTION; OR
  (2) FOR MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION  OF  A
PERSON  WHO  IS  A  MEMBER  OF  THE NEW YORK STATE EMPLOYEES' RETIREMENT
SYSTEM, THE NEW YORK STATE POLICEMEN'S AND FIREMEN'S RETIREMENT  SYSTEM,
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE
PENSION  FUND,  THE  NEW  YORK CITY FIRE DEPARTMENT PENSION FUND, OR ANY
OTHER RETIREMENT SYSTEM OF THE STATE OR CITY OF NEW YORK  OTHER  THAN  A
RETIREMENT  SYSTEM  SET  FORTH  IN PARAGRAPH ONE OF THIS SUBDIVISION, BE
DEPOSITED IN THE TAXPAYER ABUSE PENALTY  FUND  ESTABLISHED  PURSUANT  TO
SECTION  NINETY-NINE-U OF THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT
TO THE PROVISIONS OF SUCH SECTION.
  S 2. The state finance law is amended by adding two new sections  99-t
and 99-u to read as follows:
  S  99-T.  EDUCATION  TAXPAYER  ABUSE  PENALTY FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE  COMMISSIONER  OF  TAXATION  AND
FINANCE  AND  THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "EDUCA-
TION TAXPAYER ABUSE PENALTY FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF
SUBDIVISION (D) OF SECTION SIX HUNDRED EIGHT OF  THE  TAX  LAW  AND  ALL
OTHER  MONEYS  APPROPRIATED,  CREDITED,  OR TRANSFERRED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS  SECTION
SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE  FUND  ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON
MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME  PART  OF
SUCH FUND.
  3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS IN THE
STATE  WHERE  PERSONS  SUBJECT  TO  THE PROVISIONS OF SUBDIVISION (B) OF
SECTION SIX HUNDRED EIGHT OF THE TAX LAW WERE EMPLOYED AT  THE  TIME  OF
THE  COMMISSION OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION WAS BASED.
THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO  A  SCHOOL
DISTRICT  PURSUANT  TO  THIS  SUBDIVISION  SHALL  BE EQUAL TO THE DOLLAR
AMOUNT OF THE SANCTION IMPOSED UPON SUCH CONVICTED  PERSON.  ANY  MONEYS
RECEIVED  BY THE FUND FROM A SOURCE OTHER THAN A SANCTION IMPOSED PURSU-
ANT TO THE PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT OF
THE TAX LAW SHALL BE DISTRIBUTED EQUALLY AMONG SCHOOL DISTRICTS  LOCATED
IN THE STATE.
  4.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE  COMMIS-
SIONER OF TAXATION AND FINANCE.
  5.  TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE DISTRIBUTED
TO SCHOOL DISTRICTS AT LEAST ONCE ANNUALLY.
  S 99-U. TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND  FINANCE  AND  THE
COMPTROLLER,  A  SPECIAL FUND TO BE KNOWN AS THE "TAXPAYER ABUSE PENALTY
FUND".

S. 6823--A                          3

  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF PARAGRAPH TWO OF
SUBDIVISION (D) OF SECTION SIX HUNDRED EIGHT OF  THE  TAX  LAW  AND  ALL
OTHER  MONEYS  APPROPRIATED,  CREDITED,  OR TRANSFERRED THERETO FROM ANY
OTHER  FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION
SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE  COMPTROLLER  ON
MONEYS  ON  DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF
SUCH FUND.
  3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO MUNICIPALITIES  IN  THE
STATE  WHERE  PERSONS  SUBJECT  TO  THE PROVISIONS OF SUBDIVISION (B) OF
SECTION SIX HUNDRED EIGHT OF THE TAX LAW WERE EMPLOYED AT  THE  TIME  OF
THE  COMMISSION  OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION WAS BASED
OR TO THE STATE IF SUCH PERSON WAS EMPLOYED BY THE STATE. THE AMOUNT  OF
MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO A MUNICIPALITY OR TO THE
STATE  PURSUANT  TO THIS SUBDIVISION SHALL BE EQUAL TO THE DOLLAR AMOUNT
OF THE SANCTION IMPOSED UPON SUCH CONVICTED PERSON. ANY MONEYS  RECEIVED
BY  THE FUND FROM A SOURCE OTHER THAN A SANCTION IMPOSED PURSUANT TO THE
PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT  OF  THE  TAX
LAW  SHALL  BE  DISTRIBUTED  EQUALLY AMONG MUNICIPALITIES LOCATED IN THE
STATE.
  4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMIS-
SIONER OF TAXATION AND FINANCE.
  5. TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE  DISTRIBUTED
TO MUNICIPALITIES AT LEAST ONCE ANNUALLY.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6823--B

                            I N  S E N A T E

                            February 11, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to  said  committee  --  reported
  favorably  from said committee and committed to the Committee on Civil
  Service and Pensions -- reported favorably  from  said  committee  and
  committed  to  the  Committee on Codes -- reported favorably from said
  committee and committed to  the  Committee  on  Finance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the retirement and social security law and the state
  finance law, in relation to  pension  forfeiture  and  taxpayer  abuse
  sanctions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The retirement and social security law is amended by adding
a new article 23 to read as follows:

                               ARTICLE 23
              PENSION FORFEITURE FOR PUBLIC CORRUPTION ACT
SECTION 1300. SHORT TITLE.
        1301. DEFINITIONS.
        1302. PENSION FORFEITURE.
        1303. TAXPAYER ABUSE SANCTION
        1304. MISCELLANEOUS.
  S 1300. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "PENSION FORFEITURE FOR PUBLIC CORRUPTION ACT".
  S  1301. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES, AS USED IN THIS
ARTICLE, SHALL HAVE THE FOLLOWING MEANINGS, UNLESS A  DIFFERENT  MEANING
IS PLAINLY REQUIRED BY THE CONTEXT:
  1. "DEFENDANT" SHALL MEAN A PERSON AGAINST WHOM A FORFEITURE ACTION IS
COMMENCED.
  2. "DESIGNATED FELONY OFFENSE" SHALL MEAN:
  (A) ANY FELONY OFFENSE SET FORTH IN THE PENAL LAW; OR

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

                                                           LBD15780-09-0

S. 6823--B                          2

  (B)  A  CONSPIRACY TO COMMIT ANY FELONY OFFENSE SET FORTH IN THE PENAL
LAW WHEN THE COMMISSION OF ANY SUCH FELONY IS RELATED TO THE PERFORMANCE
OR FAILURE TO PERFORM SUCH MEMBER OR RETIRED  MEMBER'S  OFFICIAL  DUTIES
AND RESPONSIBILITIES.
  3.  "COMPTROLLER"  SHALL MEAN THE COMPTROLLER OF THE STATE OF NEW YORK
IN HIS OR HER CAPACITY AS ADMINISTRATIVE HEAD OF THE NEW YORK STATE  AND
LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  AND  THE NEW YORK STATE AND LOCAL
POLICE AND FIRE RETIREMENT SYSTEM.
  4. "MEMBER" SHALL MEAN A MEMBER  OF  THE  NEW  YORK  STATE  AND  LOCAL
EMPLOYEES'  RETIREMENT  SYSTEM,  THE NEW YORK STATE AND LOCAL POLICE AND
FIRE RETIREMENT SYSTEM, THE NEW YORK STATE TEACHERS' RETIREMENT  SYSTEM,
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY TEACH-
ERS'  RETIREMENT  SYSTEM, THE NEW YORK CITY POLICE PENSION FUND, THE NEW
YORK CITY FIRE DEPARTMENT PENSION FUND,  THE  NEW  YORK  CITY  BOARD  OF
EDUCATION RETIREMENT SYSTEM AND ANY OTHER RETIREMENT SYSTEM OF THE STATE
OR CITY OF NEW YORK.
  5. "RETIRED MEMBER" SHALL MEAN A PERSON WHO IS RETIRED FROM AND WHO IS
RECEIVING A RETIREMENT ALLOWANCE FROM A RETIREMENT SYSTEM.
  6. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES'  RETIREMENT  SYSTEM,  THE  NEW YORK STATE POLICEMEN'S AND FIREMEN'S
RETIREMENT SYSTEM, THE NEW YORK STATE TEACHERS' RETIREMENT  SYSTEM,  THE
NEW  YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY TEACHERS'
RETIREMENT SYSTEM, THE NEW YORK CITY POLICE PENSION FUND, THE  NEW  YORK
CITY  FIRE DEPARTMENT PENSION FUND, THE NEW YORK CITY BOARD OF EDUCATION
RETIREMENT SYSTEM AND ANY OTHER RETIREMENT SYSTEM OF THE STATE  OR  CITY
OF NEW YORK.
  7. "AGGRIEVED PARTY" SHALL MEAN ANY RESIDENT TAXPAYER WHO IS ADVERSELY
AFFECTED  BY  ANY  DESIGNATED  FELONY  OFFENSE  COMMITTED BY A MEMBER OR
RETIRED MEMBER OF ANY RETIREMENT SYSTEM OF THE  STATE  OF  NEW  YORK  AS
DEFINED IN SUBDIVISION SIX OF THIS SECTION.
  S  1302.  PENSION  FORFEITURE.  NOTWITHSTANDING ANY OTHER PROVISION OF
GENERAL, SPECIAL OR LOCAL LAW, RULE OR REGULATION TO THE CONTRARY:
  1. IN THE CASE OF A MEMBER OR RETIRED MEMBER WHO IS CONVICTED  OF  ANY
DESIGNATED  FELONY  OFFENSE,  THE  COMMISSION OF WHICH IS RELATED TO THE
PERFORMANCE OR FAILURE TO PERFORM SUCH MEMBER OR RETIRED MEMBER'S  OFFI-
CIAL  DUTIES  AND  RESPONSIBILITIES,  AN  ACTION MAY BE COMMENCED IN THE
SUPREME COURT BY THE DISTRICT  ATTORNEY  HAVING  JURISDICTION  OVER  THE
OFFENSE  OR  ANY AGGRIEVED PARTY, FOR THE FORFEITURE OF ALL OR A PORTION
OF THOSE RIGHTS AND BENEFITS TO WHICH SUCH PERSON IS OR WILL BE ENTITLED
AS A MEMBER OR RETIRED MEMBER PROVIDED THAT ANY  CONTRIBUTIONS  MADE  BY
THE  OFFICIAL  TO  HIS  OR HER RETIREMENT SYSTEM SHALL NOT BE SUBJECT TO
FORFEITURE, BUT SHALL BE RETURNED TO SUCH OFFICIAL.   SUCH ACTION  SHALL
BE  COMMENCED  WITHIN  ONE YEAR OF SUCH CONVICTION. FOR PURPOSES OF THIS
ARTICLE, A DESIGNATED FELONY OFFENSE IS RELATED TO  THE  PERFORMANCE  OR
FAILURE  TO  PERFORM SUCH MEMBER OR RETIRED MEMBER'S OFFICIAL DUTIES AND
RESPONSIBILITIES IF IT:
  (A) CONSTITUTED  A  MATERIAL  VIOLATION  OF  SUCH  MEMBER  OR  RETIRED
MEMBER'S DUTIES AND RESPONSIBILITIES AS A PUBLIC SERVANT; OR
  (B)  EVEN THOUGH COMMITTED OUTSIDE THE SCOPE OF SUCH MEMBER'S OFFICIAL
DUTIES OR RESPONSIBILITIES, INVOLVED ACTIONS OR CONDUCT  BY  WHICH  SUCH
MEMBER OR RETIRED MEMBER INDICATED OR CONVEYED THAT HE OR SHE WAS ACTING
WITH  THE  AUTHORITY OF, OR UNDER COLOR OF THE AUTHORITY OF, ANY GOVERN-
MENTAL ENTITY.
  2. WHERE THE ATTORNEY GENERAL FINDS THAT A MEMBER OR A RETIRED  MEMBER
HAS  BEEN  CONVICTED  OF  A DESIGNATED FELONY OFFENSE, THE COMMISSION OF
WHICH IS RELATED TO THE PERFORMANCE OR FAILURE TO PERFORM SUCH MEMBER OR

S. 6823--B                          3

RETIRED MEMBER'S OFFICIAL DUTIES AND RESPONSIBILITIES, AN ACTION MAY  BE
COMMENCED  IN THE SUPREME COURT BY THE ATTORNEY GENERAL OR ANY AGGRIEVED
PARTY, FOR THE FORFEITURE OF ALL OR A PORTION OF THOSE RIGHTS AND  BENE-
FITS  TO WHICH SUCH PERSON IS OR WILL BE ENTITLED AS A MEMBER OR RETIRED
MEMBER.  SUCH  ACTION  SHALL  BE  COMMENCED  WITHIN  ONE  YEAR  OF  SUCH
CONVICTION.
  3.  PRIOR  TO THE COMMENCEMENT OF SUCH ACTION AS DESCRIBED IN SUBDIVI-
SION ONE OR TWO OF THIS SECTION, THE DISTRICT ATTORNEY OR  THE  ATTORNEY
GENERAL,  AS  THE  CASE  MAY BE, SHALL PROVIDE NOTICE TO THE COMPTROLLER
STATING THAT HE OR SHE HAS REASON TO BELIEVE THAT THE  PERSON  CONVICTED
COMMITTED THE FELONY RELATED TO HIS OR HER OFFICIAL DUTIES AND RESPONSI-
BILITIES.  WITHIN TWENTY DAYS OF RECEIPT OF SUCH NOTICE, THE COMPTROLLER
SHALL  SUBMIT  A NOTICE OF APPLICABILITY TO THE DISTRICT ATTORNEY OR THE
ATTORNEY GENERAL AS THE CASE MAY BE. THE NOTICE OF  APPLICABILITY  SHALL
CONTAIN  A  STATEMENT  SPECIFYING WHETHER THE PERSON CONVICTED IS OR HAS
BEEN A MEMBER OR RETIRED MEMBER OF THE NEW YORK STATE AND LOCAL  EMPLOY-
EES'  RETIREMENT  SYSTEM OR THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM AND SHALL DESCRIBE THE RIGHTS AND  BENEFITS  TO  WHICH
SUCH  PERSON  IS  OR  WILL  BE  ENTITLED  TO FROM SUCH PUBLIC RETIREMENT
SYSTEM.
  4. UPON MOTION BY THE DISTRICT ATTORNEY OR THE  ATTORNEY  GENERAL,  AS
THE  CASE  MAY  BE,  MADE UPON COMMENCEMENT OF OR AT ANY TIME DURING THE
PENDENCY OF A FORFEITURE ACTION, PURSUANT TO THE PROCEDURE SET FORTH  IN
SUBDIVISION  ONE OF SECTION SIXTY-THREE HUNDRED ELEVEN OR SECTION SIXTY-
THREE HUNDRED THIRTEEN OF THE CIVIL PRACTICE LAW AND  RULES,  THE  COURT
MAY  ISSUE  A  TEMPORARY  RESTRAINING  ORDER OR A PRELIMINARY INJUNCTION
PROHIBITING THE DEFENDANT FROM RECEIVING ANY RIGHTS OR BENEFITS FROM THE
APPROPRIATE RETIREMENT SYSTEM. A PRELIMINARY INJUNCTION MAY  BE  GRANTED
WHERE  THE  COURT FINDS THAT THERE IS A SUBSTANTIAL PROBABILITY THAT THE
DISTRICT ATTORNEY OR ATTORNEY GENERAL  WILL  PREVAIL  ON  THE  ISSUE  OF
FORFEITURE.  NO SHOWING OF IRREPARABLE HARM SHALL BE REQUIRED. THE COURT
MAY NOT CONSIDER ON SUCH MOTION ANY ISSUES PRESENTED TO THE COURT  WHICH
HEARD  THE CRIMINAL ACTION IN WHICH THE DEFENDANT WAS CONVICTED OR WHICH
ARISE OUT OF SUCH CRIMINAL ACTION AND MAY BE PRESENTED ON APPEAL.
  5. ALL DEFENDANTS IN A FORFEITURE  ACTION  BROUGHT  PURSUANT  TO  THIS
ARTICLE SHALL HAVE THE RIGHT TO TRIAL BY JURY ON ANY ISSUE OF FACT.
  6.  THE  BURDEN  OF  PROOF  SHALL BE UPON THE DISTRICT ATTORNEY OR THE
ATTORNEY GENERAL, AS THE CASE MAY BE, TO PROVE BY CLEAR  AND  CONVINCING
EVIDENCE THE FACTS NECESSARY TO ESTABLISH A CLAIM OF PENSION FORFEITURE.
  7.  (A) UPON A FINDING BY THE COURT THAT THE DEFENDANT HAS COMMITTED A
FELONY IN CONNECTION WITH HIS OR HER OFFICIAL  DUTIES  AND  RESPONSIBIL-
ITIES,  THE  COURT  SHALL  ISSUE  AN ORDER TO THE APPROPRIATE RETIREMENT
SYSTEM FOR:
  (I) THE FORFEITURE OR RECOUPMENT OF ALL OR A PORTION  OF  THE  DEFEND-
ANT'S RIGHTS AND BENEFITS AS A MEMBER OR RETIRED MEMBER OF SUCH SYSTEM;
  (II)  THE  RECOUPMENT  OF  ALL OR A PORTION OF THE RETIREMENT BENEFITS
PAID TO THE DEFENDANT; AND
  (III) THE REFUND TO THE DEFENDANT OF ANY  CONTRIBUTIONS  MADE  BY  THE
DEFENDANT  TO THE RETIREMENT SYSTEM FOR ANY PERIOD FOR WHICH THE DEFEND-
ANT'S RIGHTS AND BENEFITS AS A MEMBER OR RETIRED MEMBER OF SUCH  RETIRE-
MENT SYSTEM HAVE BEEN ORDERED FORFEITED.
  (B) ALL ORDERS AND FINDINGS MADE BY THE COURT PURSUANT TO THIS SECTION
SHALL BE SERVED UPON THE COMPTROLLER.
  8.  UPON A FINAL DETERMINATION THAT REVERSES OR VACATES THE CONVICTION
OR CONVICTIONS OF A  DESIGNATED  OFFENSE  OR  OFFENSES,  THE  MEMBER  OR
RETIRED MEMBER WHO HAS FORFEITED RETIREMENT RIGHTS AND BENEFITS PURSUANT

S. 6823--B                          4

TO  THIS  SECTION  SHALL  HAVE  SUCH  RIGHTS  AND BENEFITS RETROACTIVELY
RESTORED UPON APPLICATION  TO  THE  COURT  WITH  JURISDICTION  OVER  THE
FORFEITURE  ACTION,  REGARDLESS  OF  ANY  TEMPORARY RESTRAINING ORDER OR
PRELIMINARY  INJUNCTION WHICH MAY BE OUTSTANDING OR ORDER WHICH MAY HAVE
BEEN ISSUED. SUCH COURT, UPON FINDING THAT SUCH  A  FINAL  DETERMINATION
HAS  OCCURRED,  SHALL ISSUE AN ORDER RETROACTIVELY RESTORING SUCH RIGHTS
AND BENEFITS, TOGETHER WITH SUCH OTHER RELIEF DEEMED APPROPRIATE.  AS  A
CONDITION TO FULL RESTORATION OF RIGHTS AND BENEFITS AS PROVIDED IN THIS
SUBDIVISION, THE MEMBER OR RETIRED MEMBER SHALL REIMBURSE THE RETIREMENT
SYSTEM FOR ANY CONTRIBUTIONS THAT WERE REFUNDED TO THE MEMBER OR RETIRED
MEMBER  PURSUANT TO THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SEVEN
OF THIS SECTION.
  9. EXCEPT AS OTHERWISE PROVIDED BY THIS ARTICLE,  THE  CIVIL  PRACTICE
LAW AND RULES SHALL GOVERN THE PROCEDURE IN ACTIONS COMMENCED UNDER THIS
ARTICLE,  EXCEPT  WHERE  THE  ACTION  IS  REGULATED  BY ANY INCONSISTENT
PROVISIONS HEREIN. IN SUCH ACTIONS,  THE  COURT  MAY  NOT  CONSIDER  ANY
ISSUES  PRESENTED  TO THE COURT WHICH HEARD THE CRIMINAL ACTION IN WHICH
THE DEFENDANT WAS CONVICTED OR WHICH ARISE OUT OF SUCH  CRIMINAL  ACTION
AND MAY BE PRESENTED ON APPEAL.
  S  1303.  TAXPAYER ABUSE SANCTION. 1. UPON AN ORDER ISSUED PURSUANT TO
SUBDIVISION SEVEN OF SECTION THIRTEEN HUNDRED TWO OF THIS  ARTICLE,  THE
COMPTROLLER  SHALL  IMPOSE  A  SANCTION IN ACCORDANCE WITH THIS SECTION.
SUCH SANCTION SHALL BE IMPOSED FOR ANY TAXABLE YEAR  DURING  WHICH  SUCH
MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE IS ELIGIBLE TO RECEIVE
A  PENSION  BENEFIT AND SHALL BE IN AN AMOUNT EQUAL TO THE AMOUNT OF ANY
SUCH BENEFIT RECEIVED DURING SUCH TAXABLE YEAR.
  2. MONIES RECEIVED FROM SANCTIONS IMPOSED  PURSUANT  TO  THIS  SECTION
SHALL:
  (A)  FOR  MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION OF A
PERSON WHO IS A MEMBER  OF  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT
SYSTEM;  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY BOARD OF EDUCATION RETIREMENT SYSTEM, BE DEPOSITED IN THE EDUCATION
TAXPAYER  ABUSE   PENALTY   FUND   ESTABLISHED   PURSUANT   TO   SECTION
NINETY-NINE-T  OF  THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT TO THE
PROVISIONS OF SUCH SECTION; OR
  (B) FOR MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION  OF  A
PERSON  WHO  IS  A  MEMBER  OF  THE NEW YORK STATE EMPLOYEES' RETIREMENT
SYSTEM, THE NEW YORK STATE POLICEMEN'S AND FIREMEN'S RETIREMENT  SYSTEM,
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE
PENSION  FUND,  THE  NEW  YORK CITY FIRE DEPARTMENT PENSION FUND, OR ANY
OTHER RETIREMENT SYSTEM OF THE STATE OR CITY OF NEW YORK  OTHER  THAN  A
RETIREMENT  SYSTEM  SET  FORTH  IN PARAGRAPH ONE OF THIS SUBDIVISION, BE
DEPOSITED IN THE TAXPAYER ABUSE PENALTY  FUND  ESTABLISHED  PURSUANT  TO
SECTION  NINETY-NINE-U OF THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT
TO THE PROVISIONS OF SUCH SECTION.
  S 1304. MISCELLANEOUS. THE REMEDIES PROVIDED FOR IN THIS  ARTICLE  ARE
NOT  INTENDED TO SUBSTITUTE FOR, LIMIT OR SUPERSEDE THE LAWFUL AUTHORITY
OF ANY PUBLIC OFFICER, AGENCY OR OTHER PERSON TO ENFORCE ANY OTHER RIGHT
OR REMEDY PROVIDED FOR BY LAW.
  S 2. The state finance law is amended by adding two new sections  99-t
and 99-u to read as follows:
  S  99-T.    EDUCATION  TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE  COMMISSIONER  OF  TAXATION  AND
FINANCE  AND  THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "EDUCA-
TION TAXPAYER ABUSE PENALTY FUND".

S. 6823--B                          5

  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN
HUNDRED THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW  AND  ALL  OTHER
MONEYS  APPROPRIATED,  CREDITED,  OR  TRANSFERRED THERETO FROM ANY OTHER
FUND  OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL
PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE  FUND  ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON
MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME  PART  OF
SUCH FUND.
  3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS IN THE
STATE  WHERE  PERSONS  SUBJECT  TO  THE  PROVISIONS  OF SECTION THIRTEEN
HUNDRED THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW WERE EMPLOYED AT
THE TIME OF THE COMMISSION OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION
WAS BASED. THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO
A SCHOOL DISTRICT PURSUANT TO THIS SUBDIVISION SHALL  BE  EQUAL  TO  THE
DOLLAR  AMOUNT  OF  THE SANCTION IMPOSED UPON SUCH CONVICTED PERSON. ANY
MONEYS RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANCTION  IMPOSED
PURSUANT  TO  THE  PROVISIONS  OF  SECTION THIRTEEN HUNDRED THREE OF THE
RETIREMENT AND SOCIAL SECURITY LAW SHALL BE  DISTRIBUTED  EQUALLY  AMONG
SCHOOL DISTRICTS LOCATED IN THE STATE.
  4.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE  COMMIS-
SIONER OF TAXATION AND FINANCE.
  5.  TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE DISTRIBUTED
TO SCHOOL DISTRICTS AT LEAST ONCE ANNUALLY.
  S 99-U. TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND  FINANCE  AND  THE
COMPTROLLER,  A  SPECIAL FUND TO BE KNOWN AS THE "TAXPAYER ABUSE PENALTY
FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN
HUNDRED THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW  AND  ALL  OTHER
MONEYS  APPROPRIATED,  CREDITED,  OR  TRANSFERRED THERETO FROM ANY OTHER
FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION  SHALL
PREVENT  THE  STATE  FROM  RECEIVING  GRANTS,  GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE  COMPTROLLER  ON
MONEYS  ON  DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF
SUCH FUND.
  3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO POLITICAL  SUBDIVISIONS
WITHIN  THE  STATE  WHERE  PERSONS  SUBJECT TO THE PROVISIONS OF SECTION
THIRTEEN HUNDRED THREE OF THE RETIREMENT AND SOCIAL  SECURITY  LAW  WERE
EMPLOYED  AT  THE  TIME  OF THE COMMISSION OF THE ACT OR ACTS UPON WHICH
SUCH CONVICTION WAS BASED OR TO THE STATE IF SUCH PERSON WAS EMPLOYED BY
THE STATE.  THE AMOUNT OF MONEYS IN THE FUND THAT SHALL  BE  DISTRIBUTED
TO  A MUNICIPALITY OR TO THE STATE PURSUANT TO THIS SUBDIVISION SHALL BE
EQUAL TO THE DOLLAR AMOUNT OF THE SANCTION IMPOSED UPON  SUCH  CONVICTED
PERSON. ANY MONEYS RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANC-
TION  IMPOSED  PURSUANT  TO  THE  PROVISIONS OF SECTION THIRTEEN HUNDRED
THREE OF THE RETIREMENT SOCIAL SECURITY LAW SHALL BE DISTRIBUTED EQUALLY
AMONG MUNICIPALITIES LOCATED IN THE STATE.
  4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMIS-
SIONER OF TAXATION AND FINANCE.

S. 6823--B                          6

  5. TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE  DISTRIBUTED
TO MUNICIPALITIES AT LEAST ONCE ANNUALLY.
  S  3. Notwithstanding any provision of law to the contrary, any action
or claim brought pursuant to section 1302 of the retirement  and  social
security  law,  which is barred as of the effective date of this section
because the applicable  period  of  limitation  has  expired  is  hereby
revived,  and  action thereon may be commenced provided that such action
is commenced within one year of the effective date of this section.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.