Senate Bill S4188B

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4188
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  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

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4188--A
     Cal. No. 364
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by Sens. COMRIE, WEBB -- read twice and ordered printed, and
   when printed to be committed to the Committee  on  Codes  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, passed by  Senate  and  delivered  to  the
   Assembly,  recalled,  vote  reconsidered,  restored  to third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 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. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06028-03-5