NY State Senate Bill 2019-S8852

Senate Bill S8852

2019-2020 Legislative Session

Relates to the liability of a person who presents false claims for money or property to the state or a local government

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 29, 2020	referred to rules

2019-S8852 (ACTIVE) - Details

See Assembly Version of this Bill:: A11061
Current Committee:: Senate Rules
Law Section:: State Finance Law
Laws Affected:: Amd §189, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S4730, A2543

2019-S8852 (ACTIVE) - Summary

Relates to the liability of a person who presents false claims for money or property to the state or a local government.

2019-S8852 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8852

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the state finance law, in relation to the liability of a
person who presents false claims for money or property to the state or a
local government

 
PURPOSE OR GENERAL IDEA OF BILL:

Repeals a section of the State Finance Law to expand liability to weal-
thy individuals and corporations that knowingly and illegally fail to
file New York tax returns.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill amends section 189 of the State Finance Law by repealing
subsection 4(a)(iii) to make individuals and corporations with a net
income or sales of over $1 million liable under the False Claims Act for
knowingly and illegally failing to file tax returns that cost the state

or local government at least three hundred fifty thousand dollars in
lost revenue.

 
JUSTIFICATION:

In 2013 the New York False Claims Act was amended to expand liability to
persons who defraud the state or local governments by knowingly conceal-
ing or knowingly and improperly avoiding obligations to pay money to the
State or a local government. However, a loophole exempted wealthy and
individuals and businesses that knowingly conceal or knowingly and
improperly avoid tax obligations by not filing any tax returns at all.
Due to this omission, such individuals and businesses are liable under
the New York False Claims Act for knowingly filing false tax returns,
but not liable for knowingly and illegally failing to file any tax
returns at all. This legislation remedies that oversight by repealing
this tax fraud loophole, so that wealthy individuals and large corpo-
rations are as liable for knowingly not filing tax returns as they are
for knowingly filing false tax returns and statements.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be Determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S8852 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8852
 
                             I N  S E N A T E
 
                               July 29, 2020
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the state finance law, in relation to the liability of a
   person who presents false claims for money or property to the state or
   a local government
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. 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:
   (a) This section shall apply to claims, records, [or] statements,  AND
 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; AND (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  applica-
 tion  of  such paragraphs to any act alleged that relates to a violation
 of the tax law].
   § 2. 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.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD17016-03-0

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