STATE OF NEW YORK ________________________________________________________________________

6725

2019-2020 Regular Sessions

IN SENATE

September 18, 2019 ___________

Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

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:

1 Section 1. The penal law is amended by adding a new section 165.80 to 2 read as follows: 3 § 165.80 Misappropriation of payroll funds. 4 A person is guilty of misappropriation of payroll funds when he or she 5 knows that funds are designated for use as employee payroll funds or as 6 payment of payroll taxes, and intentionally prevents the funds from 7 being used for their designated purpose. 8 Misappropriation of payroll funds is a class E felony. 9 § 2. Paragraph (c) of subdivision 2 of section 20.20 of the penal law, 10 as amended by chapter 671 of the laws of 1986, is amended to read as 11 follows: 12 (c) The conduct constituting the offense is engaged in by an agent of 13 the corporation while acting within the scope of his or her employment 14 and in behalf of the corporation, and the offense is (i) a misdemeanor 15 or a violation, (ii) one defined by a statute which clearly indicates a 16 legislative intent to impose such criminal liability on a corporation, 17 [or] (iii) any offense set forth in title twenty-seven of article seven- 18 ty-one of the environmental conservation law, or (iv) misappropriation 19 of payroll funds as defined in section 165.80 of this chapter. 20 § 3. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13785-01-9