Senate Bill S7205

2023-2024 Legislative Session

Establishes the crime of misappropriation of payroll funds

download bill text pdf

Sponsored By

Current Bill Status - In Assembly 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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2023-S7205 (ACTIVE) - Details

See Assembly Version of this Bill:
A3280
Current Committee:
Assembly Codes
Law Section:
Penal Law
Laws Affected:
Add §165.80, amd §20.20, Pen L
Versions Introduced in Other Legislative Sessions:
2019-2020: S6725, A8648
2021-2022: S3791, A2425

2023-S7205 (ACTIVE) - Summary

Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

2023-S7205 (ACTIVE) - Sponsor Memo

2023-S7205 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7205
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  the  misappropriation  of
   payroll funds
 
   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 165.80  to
 read as follows:
 § 165.80 MISAPPROPRIATION OF PAYROLL FUNDS.
   A PERSON IS GUILTY OF MISAPPROPRIATION OF PAYROLL FUNDS WHEN HE OR SHE
 KNOWS  THAT FUNDS ARE DESIGNATED FOR USE AS EMPLOYEE PAYROLL FUNDS OR AS
 PAYMENT OF PAYROLL TAXES, AND  INTENTIONALLY  PREVENTS  THE  FUNDS  FROM
 BEING  USED  FOR THEIR DESIGNATED PURPOSE.  A DELAYED TRANSFER OF FUNDS,
 IN ACCORDANCE WITH AN AGREEMENT BETWEEN A PAYROLL PROCESSING COMPANY AND
 AN EMPLOYER FOR THE PURPOSE OF INVESTIGATING POTENTIALLY  FRAUDULENT  OR
 INCORRECT TRANSACTIONS, SHALL NOT CONSTITUTE MISAPPROPRIATION OF PAYROLL
 FUNDS.  A  PAYROLL  PROCESSING  COMPANY  SHALL NOT BE RESPONSIBLE FOR AN
 EMPLOYER'S FAILURE TO PROVIDE SUFFICIENT FUNDS.
   MISAPPROPRIATION OF PAYROLL FUNDS IS A CLASS E FELONY.
   § 2. Paragraph (c) of subdivision 2 of section 20.20 of the penal law,
 as amended by chapter 746 of the laws of 2022, is  amended  to  read  as
 follows:
   (c)  The conduct constituting the offense is engaged in by an agent of
 the corporation while acting within the scope of his OR  HER  employment
 and  in  behalf of the corporation, and the offense is (i) a misdemeanor
 or a violation, (ii) one defined by a statute which clearly indicates  a
 legislative  intent  to impose such criminal liability on a corporation,
 (iii) any offense set forth in title twenty-seven of article seventy-one
 of the environmental conservation law, [or] (iv) is  in  relation  to  a
 crime involving the death or injury of a worker, OR (V) MISAPPROPRIATION
 OF PAYROLL FUNDS AS DEFINED IN SECTION 165.80 OF THIS CHAPTER.
   § 3. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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