S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11066
 
                           I N  A S S E M B L Y
 
                              October 7, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein)
   -- read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the state finance law, in relation to the liability of a
   person who makes or uses a false record or statement  material  to  an
   obligation  to  pay money to the state or a local government under the
   tax law, or who conceals or improperly avoids or  decreases  an  obli-
   gation  to  pay money to the state or a local government under the tax
   law
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 189 of the state finance law is amended by adding a
 new subdivision 1-a to read as follows:
   1-A.  ANY  PERSON  WHO,  IN  ACCORDANCE WITH THE CRITERIA SET FORTH IN
 SUBDIVISION FOUR OF THIS SECTION:
   (A) MAKES, USES, OR CAUSES TO BE MADE  OR  USED,  A  FALSE  RECORD  OR
 STATEMENT  MATERIAL TO THEIR OWN OBLIGATION TO PAY MONEY TO THE STATE OR
 A LOCAL GOVERNMENT UNDER THE TAX LAW, OR AN OBLIGATION OF A  SUBSIDIARY,
 PARTNERSHIP, CORPORATION OR ENTITY THAT THEY CONTROL; OR
   (B) CONCEALS OR IMPROPERLY AVOIDS OR DECREASES THEIR OWN OBLIGATION TO
 PAY  MONEY  TO  THE STATE OR A LOCAL GOVERNMENT UNDER THE TAX LAW, OR AN
 OBLIGATION OF A SUBSIDIARY, PARTNERSHIP, CORPORATION OR ENTITY THAT THEY
 CONTROL; SHALL BE LIABLE FOR DAMAGES, INCLUDING  CONSEQUENTIAL  DAMAGES,
 WHICH  THE STATE OR LOCAL GOVERNMENT SUSTAINS BECAUSE OF THE ACT OF THAT
 PERSON.  FOR PURPOSES OF THIS SECTION,  CONSEQUENTIAL  DAMAGES  INCLUDES
 INTEREST OWED PURSUANT TO THE TAX LAW.
   §  2.  Paragraph  (b)  of  subdivision  3  of section 188 of the state
 finance law, as amended by chapter 379 of the laws of 2010,  is  amended
 to read as follows:
   (b)  require no proof of specific intent to defraud, provided, however
 that acts occurring by mistake or as a result of mere negligence are not
 covered by this [article] DEFINITION.
   § 3. Paragraph (a) of subdivision  4  of  section  189  of  the  state
 finance law, as amended by section 8 of part A of chapter 56 of the laws
 of 2013, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD17043-03-0

 A. 11066                            2
 
   (a)  This  section  shall apply to claims, records, [or] statements OR
 OBLIGATIONS made under the tax law only if (i) the net income  or  sales
 of  the  person against whom the action is brought equals or exceeds one
 million dollars for any taxable  year  subject  to  any  action  brought
 pursuant to this article; (ii) the damages pleaded in such action exceed
 three  hundred  and  fifty  thousand  dollars;  and  (iii) the person is
 alleged to have violated paragraph (a), (b), (c), (d), (e), (f)  or  (g)
 of  subdivision  one of this section; provided, however, that nothing in
 this subparagraph shall be deemed to modify or restrict the  application
 of such paragraphs to any act alleged that relates to a violation of the
 tax law.
   §  4.  This  act  shall take effect immediately and shall apply to all
 false claims, records, statements and obligations concealed, avoided  or
 decreased on, prior to, or after such effective date.