A07926 Summary:

BILL NO    A07926 

SAME AS    Same as S 3240

SPONSOR    Abbate (MS)

COSPNSR    Alfano, Barra

MLTSPNSR   

Amd S460.10, Pen L

Amends the definition of "criminal enterprise", for the purpose of criminal
liability for enterprise corruption.

A07926 Actions:

BILL NO    A07926 

04/28/2009 referred to codes
01/06/2010 referred to codes

A07926 Votes:

A07926 Memo:

BILL NUMBER:A7926

TITLE  OF  BILL:    An  act to amend the penal law, in relation to defi-
nitions of criminal enterprise and pattern of criminal activity

SUMMARY OF PROVISIONS:

This legislation amends subdivision 3 of S 460.10 of the  Penal  Law  to
broaden the definition of "criminal enterprise". It further amends para-
graph  (b)  of subdivision 4 of S 460.10 of the Penal Law to broaden the
definition of "pattern of criminal activity".

JUSTIFICATION:

Recent case law  has  inappropriately  narrowed  New  York's  enterprise
corruption  statute,  also known by its federal counter-part, the Racke-
teering Influenced and Corrupt Organizations Act or the RICO law.

In People v. Nappo *(Slip Op., J. Vaughn,  1/14/98),  a  Suffolk  County
Court  case, 13 men were charged with a bootlegging scheme which brought
at least 30 million gallons of untaxed gasoline from New Jersey into New
York over an 18-month period between 1994 and 1996.  The defendants made
hundreds of deliveries, sometimes as many as 20 a  day.  New  York  lost
approximately 18 cents in tax revenue for each illegally imported gallon
($5.4 million).

The  court  in  Nappo ruled that although there was a criminal structure
involved in bringing illegal gasoline into the state, "in the absence of
their continuing criminal activities  to  allegedly  imp0l1  for  resale
untaxed fuel, there is no structure, business, activity or continuity of
criminal  purpose  beyond the scope of the criminal incidents alleged in
this indictment".

The court further rules that "because each pattern  act  is  do  closely
related  to  the  single  purpose of importing motor fuel illegally into
this state without paying appropriate taxes,  they  must  be  considered
part  of the same criminal venture and therefore the pattern of criminal
activity as contemplated by the statute has not been  shown  to  exist".
As  a result, Judge Vaughn ordered the enterprise corruption, conspiracy
and larceny counts dismissed.

* People v. Nappo (2d Dept. 1999) 261 A.D.2d 558, 690 N.Y.S.2d 649, main
volume leave to appeal granted 93 N.Y.2d 1023,697  N.Y.S.  2d  582,  719
N.E.2d 943, leave to appeal granted 93 N.Y.2d 1026,697 N.Y.S.2d 585, 719
N.E.2d  946, reversed in part 94 N.Y.2d 564, 708 N.Y.S.2d 41, 729 N.E.2d
698.

FISCAL IMPLICATIONS:

None.

PRIOR LEGISLATIVE HISTORY:

1999 Passed Senate/ Assembly Codes Committee.
2000 Passed Senate/Assembly Codes Committee.
2001 Passed Senate/Assembly Codes Committee.
2002 Passed Senate/Assembly Codes Committee.
2003-04 Passed Senate.
2005-06 Passed Senate.
2007-08 Passed Senate/Assembly Codes Committee.

EFFECTIVE DATE:

This  act shall take effect on the first of November next succeeding the
date on which it shall have become a law.