Assembly Bill A3382A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3382
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2025
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Codes
 
 AN  ACT  to  amend the penal law, in relation to the misappropriation of
   payroll funds
 
   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 165.80 to
 read as follows:
 § 165.80 MISAPPROPRIATION OF PAYROLL FUNDS.
   A PERSON IS GUILTY OF MISAPPROPRIATION  OF  PAYROLL  FUNDS  WHEN  SUCH
 PERSON KNOWS THAT FUNDS ARE DESIGNATED FOR USE AS EMPLOYEE PAYROLL FUNDS
 OR  AS  PAYMENT  OF  PAYROLL TAXES, AND INTENTIONALLY PREVENTS THE FUNDS
 FROM BEING USED FOR THEIR DESIGNATED PURPOSE.   A  DELAYED  TRANSFER  OF
 FUNDS,  IN  ACCORDANCE  WITH  AN  AGREEMENT BETWEEN A PAYROLL PROCESSING
 COMPANY AND AN EMPLOYER FOR THE  PURPOSE  OF  INVESTIGATING  POTENTIALLY
 FRAUDULENT  OR INCORRECT TRANSACTIONS, SHALL NOT CONSTITUTE MISAPPROPRI-
 ATION OF PAYROLL FUNDS.  A  PAYROLL  PROCESSING  COMPANY  SHALL  NOT  BE
 RESPONSIBLE FOR AN EMPLOYER'S FAILURE TO PROVIDE SUFFICIENT FUNDS.
   MISAPPROPRIATION OF PAYROLL FUNDS IS A CLASS E FELONY.
   § 2. Paragraph (c) of subdivision 2 of section 20.20 of the penal law,
 as  amended  by  chapter  61  of the laws of 2023, is amended to read as
 follows:
   (c) The conduct constituting the offense is engaged in by an agent  of
 the  corporation while acting within the scope of [his] THEIR employment
 and on behalf of the corporation, and the offense is (i)  a  misdemeanor
 or  a violation, (ii) one defined by a statute which clearly indicates a
 legislative intent to impose such criminal liability on  a  corporation,
 (iii) any offense set forth in title twenty-seven of article seventy-one
 of  the  environmental  conservation  law, [or] (iv) is in relation to a
 crime involving the death or serious  physical  injury  of  an  employee
 where  the  corporation acted negligently, recklessly, intentionally, or
 knowingly, OR (V)  MISAPPROPRIATION  OF  PAYROLL  FUNDS  AS  DEFINED  IN
 SECTION 165.80 OF THIS CHAPTER.
   § 3. This act shall take effect immediately.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06028-01-5