S T A T E O F N E W Y O R K
________________________________________________________________________
4377
2017-2018 Regular Sessions
I N S E N A T E
February 10, 2017
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Introduced by Sens. KRUEGER, MONTGOMERY -- read twice and ordered print-
ed, and when printed to be committed 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:
Section 1. The penal law is amended by adding a new section 195.22 to
read as follows:
§ 195.22 DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE.
A PERSON IS GUILTY OF DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE
WHEN, HE OR SHE KNOWINGLY MANUFACTURES, SELLS, INSTALLS, OR USES, OR
ATTEMPTS TO MANUFACTURE, SELL, INSTALL OR USE, AN AUTOMATED SALES
SUPPRESSION DEVICE FOR THE PURPOSE OF ENABLING OR ASSISTING ANY PERSON
TO EVADE ANY TAX OWED TO THE STATE OR A POLITICAL SUBDIVISION OF THE
STATE OR ANY INSTRUMENTALITY OF THE STATE.
FOR PURPOSES OF THIS SECTION AN "AUTOMATED SALES SUPPRESSION DEVICE"
IS A SOFTWARE PROGRAM THAT FALSIFIES ELECTRONIC RECORDS FOR THE PURPOSE
OF EVADING ANY TAX OWED TO THE STATE, OR ANY POLITICAL SUBDIVISION OF
THE STATE, OR ANY INSTRUMENTALITY OF THE STATE. AN "AUTOMATED SALES
SUPPRESSION DEVICE" INCLUDES ANY SOFTWARE PROGRAM THAT IS (A) MAINTAINED
ON A USB MEMORY STICK OR THUMB DRIVE, ZAPPER, REMOVABLE COMPACT DISC OR
OTHER EXTERNAL DEVICE, OR (B) EMBEDDED IN THE OPERATING SYSTEM AS "PHAN-
TOM WARE," OR (C) OTHERWISE ACCESSED REMOTELY.
DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE IS A CLASS D FELONY.
§ 2. Section 105.10 of the penal law is amended by adding a new subdi-
vision 4 to read as follows:
4. THE FELONY OF DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE AS
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.
LBD08471-01-7
S. 4377 2
FIRST DEGREE), BE PERFORMED, HE OR SHE AGREES WITH ONE OR MORE PERSONS
TO ENGAGE IN OR CAUSE THE PERFORMANCE OF SUCH CONDUCT.
§ 3. Subparagraphs 7 and 8 of paragraph (a) of section 1801 of the tax
law, as added by section 15 of subpart I of part V1 of chapter 57 of the
laws of 2009, are amended and a new subparagraph 9 is added to read as
follows:
(7) with intent to evade any tax fails to pay that tax; OR
(8) issues an exemption certificate, interdistributor sales certif-
icate, resale certificate, or any other document capable of evidencing a
claim that taxes do not apply to a transaction, which he or she does not
believe to be true and correct as to any material matter, which omits
any material information, or which is false, fraudulent, or counter-
feit[.]; OR
(9) USES AN AUTOMATED SALES SUPPRESSION DEVICE AS DESCRIBED IN SECTION
195.22 OF THE PENAL LAW (DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE).
§ 4. Subparagraphs 7 and 8 of paragraph (a) of section 11-4002 of the
administrative code of the city of New York, as added by chapter 201 of
the laws of 2009, are amended and a new subparagraph 9 is added to read
as follows:
(7) with intent to evade any tax imposed under any designated chapter
of this title, fails to pay that tax; OR
(8) issues an exemption certificate, interdistributor sales certif-
icate, resale certificate, or any other document capable of evidencing a
claim that taxes imposed under a designated chapter of this title do not
apply to a transaction, which he or she does not believe to be true and
correct as to any material matter, which omits any material information,
or which is false, fraudulent, or counterfeit[.]; OR
(9) USES AN AUTOMATED SALES SUPPRESSION DEVICE AS DESCRIBED IN SECTION
195.22 OF THE PENAL LAW (DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE).
§ 5. This act shall take effect on the first of November next succeed-
ing the date upon which it shall have become a law.