S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2266
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by Sens. KRUEGER, LIU -- 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 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.
                                                            LBD03702-01-3
              

 S. 2266                             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. Paragraphs 7 and 8 of subdivision (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. Paragraphs 7 and 8 of subdivision (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.