S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7408
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 1, 2019
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Codes
 
 AN  ACT  to  amend the penal law, in relation to creating the offense of
   defrauding the government in the first degree and expanding the  defi-
   nition  of  conspiracy  in the fourth degree; and to amend the tax law
   and the administrative code of the city of New York,  in  relation  to
   expanding the definition of tax fraud acts
 
   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 195.22  to
 read as follows:
 § 195.22 DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE.
   A  PERSON  IS  GUILTY OF DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE
 WHEN, HE OR SHE KNOWINGLY MANUFACTURES, SELLS,  INSTALLS,  OR  USES,  OR
 ATTEMPTS  TO  MANUFACTURE,  SELL,  INSTALL  OR  USE,  AN AUTOMATED SALES
 SUPPRESSION DEVICE FOR THE PURPOSE OF ENABLING OR ASSISTING  ANY  PERSON
 TO  EVADE  ANY  TAX  OWED TO THE STATE OR A POLITICAL SUBDIVISION OF THE
 STATE OR ANY INSTRUMENTALITY OF THE STATE.
   FOR PURPOSES OF THIS SECTION AN "AUTOMATED SALES  SUPPRESSION  DEVICE"
 IS  A SOFTWARE PROGRAM THAT FALSIFIES ELECTRONIC RECORDS FOR THE PURPOSE
 OF EVADING ANY TAX OWED TO THE STATE, OR ANY  POLITICAL  SUBDIVISION  OF
 THE  STATE,  OR  ANY  INSTRUMENTALITY  OF THE STATE. AN "AUTOMATED SALES
 SUPPRESSION DEVICE" INCLUDES ANY SOFTWARE PROGRAM THAT IS (A) MAINTAINED
 ON A USB MEMORY STICK OR THUMB DRIVE, ZAPPER, REMOVABLE COMPACT DISC  OR
 OTHER EXTERNAL DEVICE, OR (B) EMBEDDED IN THE OPERATING SYSTEM AS "PHAN-
 TOM WARE," OR (C) OTHERWISE ACCESSED REMOTELY.
   DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE IS A CLASS D FELONY.
   § 2. Section 105.10 of the penal law is amended by adding a new subdi-
 vision 4 to read as follows:
   4.  THE  FELONY  OF  DEFRAUDING  THE GOVERNMENT IN THE FIRST DEGREE AS
 DEFINED IN SECTION 195.22 OF THIS PART (DEFRAUDING THE GOVERNMENT IN THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06760-01-9

 A. 7408                             2
 
 FIRST DEGREE), BE PERFORMED, HE OR SHE AGREES WITH ONE OR  MORE  PERSONS
 TO ENGAGE IN OR CAUSE THE PERFORMANCE OF SUCH CONDUCT.
   § 3. Subparagraphs 7 and 8 of paragraph (a) of section 1801 of the tax
 law, as added by section 15 of subpart I of part V1 of chapter 57 of the
 laws  of  2009, are amended and a new subparagraph 9 is added to read as
 follows:
   (7) with intent to evade any tax fails to pay that tax; OR
   (8) issues an exemption certificate,  interdistributor  sales  certif-
 icate, resale certificate, or any other document capable of evidencing a
 claim that taxes do not apply to a transaction, which he or she does not
 believe  to  be  true and correct as to any material matter, which omits
 any material information, or which is  false,  fraudulent,  or  counter-
 feit[.]; OR
   (9) USES AN AUTOMATED SALES SUPPRESSION DEVICE AS DESCRIBED IN SECTION
 195.22 OF THE PENAL LAW (DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE).
   §  4. Subparagraphs 7 and 8 of paragraph (a) of section 11-4002 of the
 administrative code of the city of New York, as added by chapter 201  of
 the  laws of 2009, are amended and a new subparagraph 9 is added to read
 as follows:
   (7) with intent to evade any tax imposed under any designated  chapter
 of this title, fails to pay that tax; OR
   (8)  issues  an  exemption certificate, interdistributor sales certif-
 icate, resale certificate, or any other document capable of evidencing a
 claim that taxes imposed under a designated chapter of this title do not
 apply to a transaction, which he or she does not believe to be true  and
 correct as to any material matter, which omits any material information,
 or which is false, fraudulent, or counterfeit[.]; OR
   (9) USES AN AUTOMATED SALES SUPPRESSION DEVICE AS DESCRIBED IN SECTION
 195.22 OF THE PENAL LAW (DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE).
   § 5. This act shall take effect on the first of November next succeed-
 ing the date upon which it shall have become a law.