NY State Senate Bill 2017-S49

Archive: Last Bill Status - In Senate Committee Codes Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to codes
Jan 04, 2017	referred to codes

2017-S49 (ACTIVE) - Details

See Assembly Version of this Bill:: A3604
Current Committee:: Senate Codes
Law Section:: Penal Law
Laws Affected:: Amd §§470.00, 470.03, 470.25 & 460.10, add §§470.30 - 470.33, Pen L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7529
2015-2016: S109, A5642
2019-2020: S598, A857
2021-2022: A91

2017-S49 (ACTIVE) - Summary

Establishes certain offenses relating to structuring and money laundering.

2017-S49 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S49

 TITLE OF BILL :

An act to amend the penal law, in relation to establishing certain
offenses relating to structuring and money laundering

 PURPOSE OR GENERAL IDEA OF BILL :

Establishes the crimes of structuring in the second and first degrees
and criminal monetary transaction in the second and first degrees.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends section 470.00 of the penal law by adding three new
subdivisions 11, 12, and 13. Subdivision 11 defines the term
"structures" for the purposes of sections 470.30 and 470.31 of the
penal law. Subdivision 12 defines the term "monetary transaction".
Subdivision 13 defines the term "property derived from specified
criminal conduct".

Section 2 adds four new sections to the penal law: 470.30, 470.31,
470.32, and 470.33. Section 470.30 establishes the crime of
structuring in the second degree, and provides that it shall be
considered a class E felony. Section 470.31 establishes the crime of
structuring in the first degree, and provides that it shall be a class

D felony. Section 470.32 establishes the crime of criminal monetary
transaction in the second degree, and provides that it shall be a
class E felony. Section 470.33 establishes the crime of criminal
monetary transaction in the first degree, and provides that it shall
be a class D felony.

Section 3 amends subdivision 3 of section 470.03 of the penal law to
provide 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 two of section
40.10 of the criminal procedure law. It also provides that nothing in
section 470.32 or section 470.33 shall make it unlawful to return
funds held in escrow, under certain conditions.

Section 4 amends section 470.25 of the penal law to add criminal
monetary transactions to the section on money laundering and fines and
provides a fine structure for persons convicted of a criminal monetary
transaction.

Section 5 amends paragraph (a) of subdivision 1 of section 460.10 of
the penal law to add structuring and money laundering.

Section 6 provides that the act shall take effect on the first of
November next succeeding the date upon which this act shall have
become a law; provided, however, that if chapter 368 of the laws of
2015 shall have not taken effect on or before such date then section
five of this act shall take effect on the same date and in the same
manner as such chapter of the laws of 2015 takes effect.

 JUSTIFICATION :

This legislation is necessary to provide law enforcement with a tool
to prosecute those who attempt to evade federal reporting requirements
by making deposits in amounts just under the minimum threshold of
$10,000 required for banks to file a currency transaction report. This
is a strategy often employed by money launderers and tax evaders to
avoid scrutiny of their funds.  According to a report released by the
New York State White Collar Crime Task Force, "prosecutors would often
be able to show the intent to evade a filing requirement... but it is
usually quite difficult under current law to prove that a defendant
who structures transactions also intended to commit an existing penal
offense, such as tax fraud or money laundering, sufficient to charge
them as an accomplice or co-conspirator."

This legislation creates the crime of "structuring", which would allow
prosecutors to charge a person with structuring deposits to avoid
reporting requirements without the burden of proof that a defendant
had committed further crimes.

This legislation also creates the crime of "criminal monetary
transaction", which, according to the New York State White Collar
Crime Task Force report, would prohibit large-scale transactions
knowingly involving "criminally derived property." This would cover
the individuals who knowingly committed a crime and then spent money
gained through criminal activity in a transaction, and would also
cover "merchants and financial institutions that knowingly receive
tainted funds in the course of ordinary commercial activity," as long
as the transaction is in excess of $10,000.

 PRIOR LEGISLATIVE HISTORY :

S.109-A of 2015-2016 (Hoylman): Died in Codes
A.5642-A of 2015-2016 (Hoylman): Died in Codes
S.7529 of 2014 (Hoylman): Died in Codes

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
Section 6 provides that the act shall take effect on the first of
November next succeeding the date upon which this act shall have
become a law; provided, however, that if chapter 368 of the laws of
2015 shall have not taken effect on or before such date then section
five of this act shall take effect on the same date and in the same
manner as such chapter of the laws of 2015 takes effect.

2017-S49 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    49
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- 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 and money laundering

   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,
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05317-01-7

 S. 49                               2
 
   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:
   (a)  as  a portion of a purchase price for real property pursuant to a
 contract of sale; or

 S. 49                               3
 
   (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
 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,

 S. 49                               4
 
 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  MONETARY  TRANS-
 ACTIONS; or
   § 6. This act shall take effect on the first of November next succeed-
 ing the date upon which it shall have become a law.

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Senate Bill S49

Sponsored By

Archive: Last Bill Status - In Senate Committee Codes Committee

2017-S49 (ACTIVE) - Details

2017-S49 (ACTIVE) - Summary

2017-S49 (ACTIVE) - Sponsor Memo

2017-S49 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S49

Share this bill

Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - In Senate Committee Codes Committee

2017-S49 (ACTIVE) - Details

2017-S49 (ACTIVE) - Summary

2017-S49 (ACTIVE) - Sponsor Memo

2017-S49 (ACTIVE) - Bill Text download pdf

Comments