NY State Senate Bill 2017-S1491

Senate Bill S1491

2017-2018 Legislative Session

Establishes certain offenses relating to structuring, money laundering and defrauding the government

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Archive: Last Bill Status - In Senate Committee Codes Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to codes
Jan 09, 2017	referred to codes

2017-S1491 (ACTIVE) - Details

Current Committee:: Senate Codes
Law Section:: Penal Law
Laws Affected:: Amd Pen L, generally; amd §§1807 & 697, Tax L; amd §20.40, CP L
Versions Introduced in 2015-2016 Legislative Session:: S5578

2017-S1491 (ACTIVE) - Summary

Establishes certain offenses relating to structuring, money laundering and defrauding the government; eliminates the one-year time requirement for aggregation payments; relates to the disclosure of tax returns to grand juries; relates to geographical jurisdiction of certain offenses.

2017-S1491 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1491

 TITLE OF BILL :

An act to amend the penal law, in relation to establishing certain
offenses relating to structuring, money laundering and defrauding the
government; to amend the tax law, in relation to eliminating the
one-year time requirement for aggregation payments and in relation to
disclosure of certain tax returns to a grand jury; and to amend the
criminal procedure law, in relation to geographical jurisdiction of
offenses

 PURPOSE :

To reform the penal law, tax law, and criminal procedural law with
respect to tax and money laundering crimes as recommended by the New
York State White Collar Crime Task Force.

 SUMMARY OF PROVISIONS :

Section 1 of this bill amends section 470.00 of the penal law by
adding three new subdivisions 11, 12, and 13. Subdivision 11 defines
"structures". Subdivision 12 defines "monetary transaction".
Subdivision 13 defines "property derived from specified criminal
conduct".

Section 2 of this bill amends the penal law by adding four new
sections 470.30, 470.31, 470.32 and 470.33. Section 470.30 creates the
crime of "Structuring in the second degree". Section 470.31 creates
the crime of "Structuring in the first degree". Section 470.32 creates
the crime of "Criminal monetary transaction in the second degree".
Section 470.33 creates the crime of "Criminal monetary transaction in
the first degree".

Section 3 of this bill amends subdivision 3 of section 470.03 of the
penal law, as amended by section 17, part A of chapter 1 of the laws
of 2004, by specifying that monetary transactions may be considered
together and the value of the property derived from specified criminal
conduct may be aggregated, provided that the monetary transactions are
all part of a single "criminal transaction" as defined in subdivision
2 of section 40.10 of the criminal procedure law.

Section 4 of this bill amends section 470.25 of the penal law, as
amended by chapter 489 of the laws of 2000, by adding language
concerning fines for any person convicted of a violation of section
470.32 or 470.33 of this article.

Section 5 of this bill amends paragraph (a) of subdivision 1 of
section 460.10 of the penal law, as amended by chapter 368 of the laws
of 2015, by adding references to the new sections created in section 2
of this bill.

Section 6 of this bill amends section 195.20 of the penal law, as
amended by chapter 1 of the laws of 2010, by adding "in the fourth
degree" to the crime of "Defrauding the government".

Section 7 of this bill amends the penal law by adding three new
sections 195.22, 195.25, and 195.27. Section 195.22 creates the crime
of "Defrauding the government in the third degree". Section 195.25
creates the crime of "Defrauding the government in the second degree".
Section 195.27 creates the crime of "Defrauding the government in the
first degree".

Section 8 of this bill amends section 1807 of the tax law, as amended
by section 5 of subpart A of part S of chapter 57 of the laws of 2010
by removing the language "within one year".
Section 9 of this bill amends subsection (e) of section 697 of the tax
law by adding a new paragraph (3-b).

Section 10 of this bill amends paragraph (c) of subdivision 2 of
section 20.40 of the criminal procedure law by removing "and was
performed with intent that it would, or with knowledge that it was
likely to, have such particular effect therein" and adding "or on a
city of which such county is a part, whether or not such conduct also
had effects on other counties or on the state as a whole; provided
that, if such conduct had or was likely to have such particular effect
upon the state as a whole, then there shall be proper jurisdiction in
the county of Albany in addition to any counties particularly
affected".

Section 11 of this bill states that this act shall take effect on the
first of November next succeeding the date on which it shall have
become law.

 JUSTIFICATION :

Criminal law in New York State has not undergone a comprehensive
revision since the Bartlett Commission drafted the "new" Penal Law in
1965. While the Commission's revision was considered the most
significant legislation achieved in the evolution of a twentieth
century criminal code, the provisions on white-collar crime, were
relatively rudimentary. New York did not have the benefit of the
experience gained during the last five decades combating fraud and
corruption.

With the 21st century, development of commerce and technology has
taken us from an industrial world where large corporations were
beginning to exploit computer technology to a technological one where
everyone, including criminals, have access to electronic marvels.

These changes in technology have brought an evolution of crimes and
factual scenarios never contemplated by the Commission, such as
transnational cybercrime rings, the rise in value of intellectual
property and the corresponding activities of thieves, billion-dollar
securities fraud schemes, computer hacking, and increasingly
sophisticated corruption schemes. New breeds of white-collar criminals
have victimized individuals, businesses, and government entities
alike-costing New York State taxpayers dearly.

This continuing problem led to the creation of the New York State
White Collar Crime Task Force in October 2012 by Cyrus R. Vance, Jr.
The Task Force focused its attention to the issues that affect the
entire panoply of white-collar crime, such as tax and money
laundering.

As recommended by the Task Force, this bill would criminalize the
structuring of cash transactions to avoid reporting requirements;
amend the tax law to permit aggregation of tax loss across multiple
years in prosecutions for criminal tax fraud; allow access to tax
returns in non-tax cases with a showing of necessity and court
approval; amend the "particular" effect jurisdiction to allow for
prosecution in any county of New York City of schemes to defeat City
taxes, and in Albany County for schemes to defeat state taxes; and
amend the crime of Defrauding the Government to cover schemes that
defraud government agencies of government revenue and gradate the
statute to treat more serious schemes more seriously.

 LEGISLATIVE HISTORY :

2015-2016: S.5578-A

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect on the first of November next succeeding
the date on which it shall have become law.

2017-S1491 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1491
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Codes
 
 AN ACT to amend the penal  law,  in  relation  to  establishing  certain
   offenses  relating to structuring, money laundering and defrauding the
   government; to amend the tax law, in relation to eliminating the  one-
   year  time  requirement  for  aggregation  payments and in relation to
   disclosure of certain tax returns to a grand jury; and  to  amend  the
   criminal  procedure  law,  in relation to geographical jurisdiction of
   offenses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 470.00 of the penal law is amended by adding three
 new subdivisions 11, 12 and 13 to read as follows:
   11. "STRUCTURES" FOR PURPOSES OF SECTIONS 470.30 AND  470.31  OF  THIS
 ARTICLE,  A  PERSON  STRUCTURES  A  TRANSACTION WHEN, WITH THE INTENT TO
 EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANKING LAW  OR
 31 U.S.C. §§ 5311 THROUGH 5326, OR ANY REGULATION PRESCRIBED THEREUNDER,
 HE  OR  SHE  CONDUCTS  OR ATTEMPTS TO CONDUCT ONE OR MORE RELATED TRANS-
 ACTIONS IN CURRENCY, IN ANY AMOUNT, WITH ONE OR  MORE  FINANCIAL  INSTI-
 TUTIONS,  ON  ONE OR MORE DAYS. STRUCTURING INCLUDES, BUT IS NOT LIMITED
 TO, THE BREAKING DOWN OF A SINGLE SUM OF CURRENCY EXCEEDING TEN THOUSAND
 DOLLARS INTO SMALLER SUMS, INCLUDING  SUMS  AT  OR  BELOW  TEN  THOUSAND
 DOLLARS,  OR  THE CONDUCT OF A TRANSACTION, OR SERIES OF CURRENCY TRANS-
 ACTIONS, INCLUDING TRANSACTIONS AT OR BELOW TEN  THOUSAND  DOLLARS.  THE
 TRANSACTION  OR  TRANSACTIONS  NEED  NOT  EXCEED THE TEN THOUSAND DOLLAR
 REPORTING THRESHOLD AT ANY SINGLE FINANCIAL INSTITUTION OR ON ANY SINGLE
 DAY IN ORDER TO CONSTITUTE STRUCTURING.
   12. "MONETARY  TRANSACTION"  MEANS  A  DEPOSIT,  WITHDRAWAL,  TRANSFER
 BETWEEN  ACCOUNTS,  EXCHANGE  OF  CURRENCY,  LOAN,  EXTENSION OF CREDIT,
 PURCHASE OR SALE OF ANY STOCK, BOND, CERTIFICATE OF  DEPOSIT,  OR  OTHER
 MONETARY  INSTRUMENT,  USE  OF A SAFE DEPOSIT BOX, OR ANY OTHER PAYMENT,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01220-01-7

 S. 1491                             2
 
 TRANSFER, OR DELIVERY BY, THROUGH, OR TO  A  FINANCIAL  INSTITUTION,  BY
 WHATEVER  MEANS  EFFECTED,  EXCEPT THAT "MONETARY TRANSACTION" SHALL NOT
 INCLUDE ANY TRANSACTION INVOLVING BONA FIDE PAYMENTS  TO  ATTORNEYS  FOR
 LEGAL SERVICES.
   13. "PROPERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT" MEANS ANY PROP-
 ERTY  CONSTITUTING,  OR  DERIVED  FROM,  PROCEEDS  OF SPECIFIED CRIMINAL
 CONDUCT, AND NEED NOT EXCLUSIVELY CONSTITUTE OR BE DERIVED FROM PROCEEDS
 OF SPECIFIED CRIMINAL CONDUCT.
   § 2. The penal law is amended by  adding  four  new  sections  470.30,
 470.31, 470.32 and 470.33 to read as follows:
 § 470.30 STRUCTURING IN THE SECOND DEGREE.
   A  PERSON IS GUILTY OF STRUCTURING IN THE SECOND DEGREE WHEN, WITH THE
 INTENT TO EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANK-
 ING LAW OR 31 U.S.C. §§ 5311 THROUGH 5326, OR ANY REGULATION  PRESCRIBED
 THEREUNDER, HE OR SHE STRUCTURES ONE OR MORE TRANSACTIONS.
   STRUCTURING IN THE SECOND DEGREE IS A CLASS E FELONY.
 § 470.31 STRUCTURING IN THE FIRST DEGREE.
   A  PERSON  IS GUILTY OF STRUCTURING IN THE FIRST DEGREE WHEN HE OR SHE
 COMMITS THE CRIME OF STRUCTURING IN  THE  SECOND  DEGREE  AND:  (1)  THE
 CONDUCT IS COMMITTED WITH AN INTENT TO COMMIT ANOTHER CRIME OR TO AID OR
 CONCEAL  THE  COMMISSION OF ANOTHER CRIME; OR (2) THE AGGREGATE VALUE OF
 THE CURRENCY REPORTED OR THE CURRENCY THAT  SHOULD  HAVE  BEEN  REPORTED
 EXCEEDS ONE HUNDRED THOUSAND DOLLARS IN ANY TWELVE-MONTH PERIOD.
   STRUCTURING IN THE FIRST DEGREE IS A CLASS D FELONY.
 § 470.32 CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE.
   A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
 THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO ENGAGE
 IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
 A VALUE GREATER THAN TWENTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
 FROM SPECIFIED CRIMINAL CONDUCT.
   CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE IS A CLASS E  FELO-
 NY.
 § 470.33 CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE.
   A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
 THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO  ENGAGE
 IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
 A  VALUE GREATER THAN SIXTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
 FROM SPECIFIED CRIMINAL CONDUCT.
   CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE IS A CLASS D FELONY.
   § 3. Subdivision 3 of section 470.03 of the penal law, as  amended  by
 section  17  of  part  A of chapter 1 of the laws of 2004, is amended to
 read as follows:
   3. FOR PURPOSES OF SECTIONS 470.32 AND 470.33 OF THIS  ARTICLE,  MONE-
 TARY  TRANSACTIONS MAY BE CONSIDERED TOGETHER AND THE VALUE OF THE PROP-
 ERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT MAY BE AGGREGATED, PROVIDED
 THAT THE MONETARY TRANSACTIONS ARE ALL PART OF A SINGLE "CRIMINAL TRANS-
 ACTION" AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF  THE  CRIMINAL
 PROCEDURE LAW.
   4.  Nothing  in  sections  470.05,  470.21, 470.22, 470.23 and 470.24;
 paragraph (b) of subdivision one, paragraph (b) of subdivision  two  and
 paragraph  (b)  of subdivision three of section 470.10; paragraph (b) of
 subdivision one, paragraph (b) of subdivision two and paragraph  (b)  of
 subdivision  three  of section 470.15; [or] paragraph (b) of subdivision
 one and paragraph (b) of subdivision two of section 470.20;  OR  SECTION
 470.32  OR  SECTION  470.33  of  this  article shall make it unlawful to
 return funds held in escrow:

 S. 1491                             3
 
   (a) as a portion of a purchase price for real property pursuant  to  a
 contract of sale; or
   (b)  to  satisfy the tax or other lawful obligations arising out of an
 administrative or judicial proceeding concerning the person who provided
 the escrow funds.
   § 4. Section 470.25 of the penal law, as amended by chapter 489 of the
 laws of 2000, is amended to read as follows:
 § 470.25 Money laundering AND CRIMINAL MONETARY TRANSACTIONS; fines.
   1. Any person convicted of a  violation  of  section  470.05,  470.10,
 470.15,  or 470.20 of this article may be sentenced to pay a fine not in
 excess of two times the value of the monetary instruments which are  the
 proceeds of specified criminal activity. When a fine is imposed pursuant
 to  this  subdivision, the court shall make a finding as to the value of
 such monetary instrument or instruments. If the record does not  contain
 sufficient  evidence  to  support such a finding the court may conduct a
 hearing upon the issue. In imposing a fine, the court shall consider the
 seriousness of the conduct, whether the amount of the fine is dispropor-
 tionate to the conduct in which he engaged, its impact  on  victims,  as
 well  as  the  economic circumstances of the convicted person, including
 the effect of the imposition of such a fine upon his immediate family.
   2. ANY PERSON CONVICTED OF A VIOLATION OF SECTION 470.32 OR 470.33  OF
 THIS  ARTICLE  MAY BE SENTENCED TO PAY A FINE NOT IN EXCESS OF TWO TIMES
 THE VALUE OF THE MONETARY TRANSACTION WHICH IS THE PROCEEDS OF SPECIFIED
 CRIMINAL CONDUCT. WHEN A FINE IS IMPOSED PURSUANT TO  THIS  SUBDIVISION,
 THE  COURT  SHALL MAKE A FINDING AS TO THE VALUE OF SUCH MONETARY TRANS-
 ACTION. IF THE RECORD DOES NOT CONTAIN SUFFICIENT  EVIDENCE  TO  SUPPORT
 SUCH A FINDING THE COURT MAY CONDUCT A HEARING UPON THE ISSUE. IN IMPOS-
 ING  A  FINE,  THE  COURT SHALL CONSIDER THE SERIOUSNESS OF THE CONDUCT,
 WHETHER THE AMOUNT OF THE FINE IS DISPROPORTIONATE  TO  THE  CONDUCT  IN
 WHICH HE ENGAGED, ITS IMPACT ON VICTIMS, AS WELL AS THE ECONOMIC CIRCUM-
 STANCES  OF THE CONVICTED PERSON, INCLUDING THE EFFECT OF THE IMPOSITION
 OF SUCH A FINE UPON HIS IMMEDIATE FAMILY.
   3. The imposition of a  fine  pursuant  to  subdivision  one  of  this
 section or paragraph b of subdivision one of section 80.00 of this chap-
 ter,  shall  preclude  the  imposition of any other order or judgment of
 forfeiture or fine based upon the same criminal conduct.
   § 5. Paragraph (a) of subdivision 1 of section  460.10  of  the  penal
 law,  as  amended by chapter 368 of the laws of 2015, is amended to read
 as follows:
   (a) Any of the felonies set forth in this  chapter:  sections  120.05,
 120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
 ing  to  strangulation;  sections 125.10 to 125.27 relating to homicide;
 sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
 135.25 relating to kidnapping; sections 135.35 and  135.37  relating  to
 labor trafficking; section 135.65 relating to coercion; sections 140.20,
 140.25  and  140.30  relating  to  burglary; sections 145.05, 145.10 and
 145.12 relating to criminal mischief; article one hundred fifty relating
 to arson; sections 155.30, 155.35, 155.40 and 155.42 relating  to  grand
 larceny;  sections  177.10, 177.15, 177.20 and 177.25 relating to health
 care fraud; article one hundred  sixty  relating  to  robbery;  sections
 165.45,  165.50,  165.52  and  165.54 relating to criminal possession of
 stolen property; sections 165.72 and 165.73 relating to trademark  coun-
 terfeiting;  sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65 and
 170.70 relating to forgery; sections 175.10, 175.25, 175.35, 175.40  and
 210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
 176.30  relating to insurance fraud; sections 178.20 and 178.25 relating

 S. 1491                             4
 
 to criminal diversion of  prescription  medications  and  prescriptions;
 sections 180.03, 180.08, 180.15, 180.25, 180.40, 180.45, 200.00, 200.03,
 200.04,  200.10, 200.11, 200.12, 200.20, 200.22, 200.25, 200.27, 200.56,
 215.00,  215.05 and 215.19 RELATING TO BRIBERY; sections 187.10, 187.15,
 187.20 and 187.25  relating  to  residential  mortgage  fraud,  sections
 190.40 and 190.42 relating to criminal usury; section 190.65 relating to
 schemes  to  defraud; any felony defined in article four hundred ninety-
 six; sections 205.60  and  205.65  relating  to  hindering  prosecution;
 sections  210.10,  210.15,  and 215.51 relating to perjury and contempt;
 section 215.40 relating to tampering with  physical  evidence;  sections
 220.06,  220.09, 220.16, 220.18, 220.21, 220.31, 220.34, 220.39, 220.41,
 220.43, 220.46, 220.55, 220.60, 220.65 and 220.77 relating to controlled
 substances; sections 225.10 and 225.20 relating  to  gambling;  sections
 230.25,  230.30,  and 230.32 relating to promoting prostitution; section
 230.34 relating to sex trafficking; sections 235.06, 235.07, 235.21  and
 235.22  relating  to  obscenity;  sections 263.10 and 263.15 relating to
 promoting a sexual performance by  a  child;  sections  265.02,  265.03,
 265.04,  265.11,  265.12,  265.13  and  the provisions of section 265.10
 which constitute a felony relating to firearms and other dangerous weap-
 ons; sections 265.14 and 265.16 relating to criminal sale of a  firearm;
 section  275.10,  275.20,  275.30,  or  275.40  relating to unauthorized
 recordings; [and] sections 470.05, 470.10, 470.15 and 470.20 relating to
 money laundering; SECTIONS 470.30 AND 470.31  RELATING  TO  STRUCTURING;
 AND  SECTIONS 470.32 AND 470.33 RELATING TO CRIMINAL MONEY TRANSACTIONS;
 or
   § 6. Section 195.20 of the penal law, as amended by chapter 1  of  the
 laws of 2010, is amended to read as follows:
 § 195.20 Defrauding the government IN THE FOURTH DEGREE.
   A  person  is guilty of defrauding the government IN THE FOURTH DEGREE
 when[, being a public servant or party officer,] he or she:
   (a) engages in a scheme constituting a systematic  ongoing  course  of
 conduct with intent to:
   (i)  defraud  the  state  or a political subdivision of the state or a
 governmental instrumentality within the state  or  to  obtain  property,
 services or other resources from the state or a political subdivision of
 the state or a governmental instrumentality within the state by false or
 fraudulent pretenses, representations or promises; or
   (ii)  defraud  the  state or a political subdivision of the state or a
 governmental instrumentality within the state by making use of property,
 services or resources of the state, political subdivision of  the  state
 or  a governmental instrumentality within the state for private business
 purposes or other compensated non-governmental purposes; [and] OR
   (III) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE STATE  OR  A
 PUBLIC  AUTHORITY,  PUBLIC BENEFIT CORPORATION, OR MUNICIPAL CORPORATION
 OF THE STATE, OR ANY INSTRUMENTALITY THEREOF, OF ONE OR  MORE  FORMS  OF
 REVENUE,  AND  SO EVADES PAYMENT OF ANY TAX, INSURANCE PREMIUM, CONTRIB-
 UTION, OR FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A  POLITICAL
 SUBDIVISION,  PUBLIC  AUTHORITY, PUBLIC BENEFIT CORPORATION OR MUNICIPAL
 CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   (b) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
 OF SUBDIVISION (A) OF THIS SECTION, so  obtains  property,  services  or
 other resources with a value in excess of one thousand dollars from such
 state, political subdivision or governmental instrumentality, OR
   (II)  WITH  RESPECT  TO  AN  OFFENSE  CHARGED UNDER PARAGRAPH (III) OF
 SUBDIVISION (A) OF THIS SECTION,  THE  AGGREGATE  UNPAID  TAX,  PREMIUM,
 CONTRIBUTION OR FEE OWED EXCEEDS ONE THOUSAND DOLLARS.

 S. 1491                             5
 
   Defrauding the government IN THE FOURTH DEGREE is a class E felony.
   §  7.  The  penal  law is amended by adding three new sections 195.22,
 195.25 and 195.27 to read as follows:
 § 195.22 DEFRAUDING THE GOVERNMENT IN THE THIRD DEGREE.
   A PERSON IS GUILTY OF DEFRAUDING THE GOVERNMENT IN  THE  THIRD  DEGREE
 WHEN HE OR SHE:
   (A)  ENGAGES  IN  A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF
 CONDUCT WITH INTENT TO:
   (I) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF  THE  STATE  OR  A
 GOVERNMENTAL  INSTRUMENTALITY  WITHIN  THE  STATE OR TO OBTAIN PROPERTY,
 SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
 THE STATE OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
 FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
 GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
 SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
 OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
 PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
 PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
 OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
 REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
 UTION,  OR FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A POLITICAL
 SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION  OR  MUNICIPAL
 CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   (B) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
 OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
 OTHER RESOURCES WITH A VALUE IN EXCESS OF TEN THOUSAND DOLLARS FROM SUCH
 STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL  INSTRUMENTALITY,  OR  (II)
 WITH  RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (III) OF SUBDIVISION
 (A) OF THIS SECTION, THE AGGREGATE UNPAID TAX, PREMIUM, CONTRIBUTION, OR
 FEE OWED EXCEEDS TEN THOUSAND DOLLARS.
   DEFRAUDING THE GOVERNMENT IN THE THIRD DEGREE IS A CLASS D FELONY.
 § 195.25 DEFRAUDING THE GOVERNMENT IN THE SECOND DEGREE.
   A PERSON IS GUILTY OF DEFRAUDING THE GOVERNMENT IN THE  SECOND  DEGREE
 WHEN HE OR SHE:
   (A)  ENGAGES  IN  A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF
 CONDUCT WITH INTENT TO:
   (I) DEFRAUD THE STATE OR A  POLITICAL  SUBDIVISION  OF  THE  STATE  OR
 GOVERNMENTAL  INSTRUMENTALITY  WITHIN  THE  STATE OR TO OBTAIN PROPERTY,
 SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
 THE STATE OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
 FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
 GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
 SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
 OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
 PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
 PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
 OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
 REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
 UTION, OR FEE, OR ANY PORTION THEREOF, OWNED TO THE STATE OR A POLITICAL
 SUBDIVISION,  PUBLIC  AUTHORITY, PUBLIC BENEFIT CORPORATION OR MUNICIPAL
 CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND

 S. 1491                             6
 
   (B)(I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR  (II)
 OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
 OTHER RESOURCES WITH A VALUE IN EXCESS OF TWENTY-FIVE  THOUSAND  DOLLARS
 FROM  SUCH STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL INSTRUMENTALITY,
 OR  (II)  WITH  RESPECT  TO  AN OFFENSE CHARGED UNDER PARAGRAPH (III) OF
 SUBDIVISION (A) OF THIS SECTION,  THE  AGGREGATE  UNPAID  TAX,  PREMIUM,
 CONTRIBUTION, OR FEE OWED EXCEEDS TWENTY-FIVE THOUSAND DOLLARS.
   DEFRAUDING THE GOVERNMENT IN THE SECOND DEGREE IS A CLASS C FELONY.
 § 195.27 DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE.
   A  PERSON  IS  GUILTY OF DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE
 WHEN HE OR SHE:
   (A) ENGAGES IN A SCHEME CONSTITUTING A SYSTEMATIC  ONGOING  COURSE  OF
 CONDUCT WITH INTENT TO:
   (I)  DEFRAUD  THE  STATE  OR A POLITICAL SUBDIVISION OF THE STATE OR A
 GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE  OR  TO  OBTAIN  PROPERTY,
 SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
 THE  STATE  OR GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
 FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
 GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
 SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
 OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
 PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
 PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
 OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
 REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
 UTION  OR  FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A POLITICAL
 SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION  OR  MUNICIPAL
 CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   (B) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
 OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
 OTHER RESOURCES WITH A VALUE IN EXCESS OF  TWO  HUNDRED  FIFTY  THOUSAND
 DOLLARS  FROM  SUCH STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL INSTRU-
 MENTALITY, OR (II) WITH RESPECT TO AN OFFENSE  CHARGED  UNDER  PARAGRAPH
 (III)  OF  SUBDIVISION  (A)  OF  THIS SECTION, THE AGGREGATE UNPAID TAX,
 PREMIUM, CONTRIBUTION OR FEE OWED EXCEEDS  TWO  HUNDRED  FIFTY  THOUSAND
 DOLLARS.
   DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE IS A CLASS B FELONY.
   § 8. Section 1807 of the tax law, as amended by section 5 of subpart A
 of  part  S  of  chapter  57  of the laws of 2010, is amended to read as
 follows:
   § 1807. Aggregation. For purposes of this article,  the  payments  due
 and not paid under a single article of this chapter pursuant to a common
 scheme or plan or due and not paid, [within one year,] may be charged in
 a  single  count,  and  the  amount of underpaid tax liability incurred,
 within one year, may be aggregated in a single count.
   § 9. Subsection (e) of section 697 of the tax law is amended by adding
 a new paragraph (3-b) to read as follows:
   (3-B)  NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH  ONE  OF   THIS
 SUBSECTION,  OR ANY OTHER LAW TO THE CONTRARY, AN OFFICER OR EMPLOYEE OF
 THE DEPARTMENT SO  DESIGNATED  BY  THE  COMMISSIONER  MAY  DISCLOSE  TAX
 RETURNS  OR TAX RETURN INFORMATION IN RESPONSE TO A SUBPOENA DUCES TECUM
 ISSUED BY A GRAND JURY PURSUANT  TO  THE  CRIMINAL  PROCEDURE  LAW  DULY
 SERVED  UPON  THE  DEPARTMENT  AND AN ORDER OF THE COURT THAT EMPANELLED
 SUCH GRAND JURY DETERMINING, BASED ON A  WRITTEN  APPLICATION  SUBMITTED

 S. 1491                             7
 
 UNDER OATH OR PENALTY OF PERJURY, THAT: (I) THERE IS REASONABLE CAUSE TO
 BELIEVE, BASED UPON INFORMATION BELIEVED TO BE RELIABLE, THAT A SPECIFIC
 CRIMINAL  ACT  HAS  BEEN  COMMITTED;  (II)  THERE IS REASONABLE CAUSE TO
 BELIEVE  THAT  THE RETURN OR RETURN OF INFORMATION IS OR MAY BE RELEVANT
 TO A MATTER RELATING TO THE COMMISSION OF SUCH ACT; AND (III) THE RETURN
 OR RETURN OF INFORMATION IS SOUGHT EXCLUSIVELY FOR  USE  IN  A  CRIMINAL
 INVESTIGATION  OR  PROCEEDING  CONCERNING  SUCH ACT, AND THE INFORMATION
 SOUGHT TO BE DISCLOSED CANNOT REASONABLY BE OBTAINED, UNDER THE  CIRCUM-
 STANCES, FROM ANOTHER SOURCE.
   §  10. Paragraph (c) of subdivision 2 of section 20.40 of the criminal
 procedure law is amended to read as follows:
   (c) Such conduct had, or was likely to have, a particular effect  upon
 such  county  or  a  political  subdivision  or  part  thereof, [and was
 performed with intent that it would, or with knowledge that it was like-
 ly to, have such particular effect therein] OR ON A CITY OF  WHICH  SUCH
 COUNTY  IS A PART, WHETHER OR NOT SUCH CONDUCT ALSO HAD EFFECTS ON OTHER
 COUNTIES OR ON THE STATE AS A WHOLE; PROVIDED THAT, IF SUCH CONDUCT  HAD
 OR  WAS LIKELY TO HAVE SUCH PARTICULAR EFFECT UPON THE STATE AS A WHOLE,
 THEN THERE SHALL BE PROPER JURISDICTION IN THE COUNTY OF ALBANY IN ADDI-
 TION TO ANY COUNTIES PARTICULARLY AFFECTED; or
   § 11. This act shall  take  effect  on  the  first  of  November  next
 succeeding the date on which it shall have become a law.

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