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SB7268 Text:

                STATE OF NEW YORK
                    IN SENATE
                                     April 12, 2016
        Introduced by Sen. MARTINS -- (at request of the Department of Labor) --
          read  twice  and  ordered printed, and when printed to be committed to
          the Committee on Labor
        AN ACT to amend the labor law, in relation to unemployment insurance
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The labor law is amended by adding a new section 573-a to
     2  read as follows:
     3    § 573-a. Personal liability for contributions, penalties and  interest
     4  regarding  corporations,  limited liability companies, and partnerships.
     5  1. For purposes of this section, the term "person" shall mean:  (a)  any
     6  officer of a corporation; (b) any manager or member of a limited liabil-
     7  ity  company  formed  under the limited liability company law or similar
     8  statutes in other states or countries, who has an ownership interest  in
     9  or  management authority over the limited liability company; and (c) all
    10  partners under the partnership law including: (i) general  partners  and
    11  (ii)  any  limited partners to the extent that such limited partners are
    12  liable to third parties under the partnership law.
    13    2. Notwithstanding any other  provision  of  law,  if  a  corporation,
    14  limited  liability  company  or  partnership has failed to make employer
    15  contributions as required by this article, or has failed to  file  quar-
    16  terly  combined  withholding,  wage reporting and unemployment insurance
    17  returns as required by paragraph four of subsection (a) of  section  six
    18  hundred  seventy-four  of  the tax law, all persons shall be jointly and
    19  severally  liable  for  the  total  amount  of  such  contributions  not
    20  collected,  penalties  and  any interest accruing thereon.  Such persons
    21  shall be considered employers for purposes  of  collecting  amounts  due
    22  pursuant  to this subdivision pursuant to the provisions of this article
    23  and other provisions of law. The liability of any person  shall  not  be
    24  relieved by the dissolution of the corporation, limited liability compa-
    25  ny or partnership.
    26    3.  The  commissioner,  after issuing a determination that a person is
    27  liable for amounts due under subdivision two this section, shall provide
    28  notice of the basis for personal liability and the total amount due  and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 7268                             2

     1  unpaid  by such corporation, limited liability company or partnership in
     2  such determination.
     3    4.  A  person  determined  to  be personally liable under this section
     4  shall have all rights of appeal set forth in title eight of this article
     5  solely with respect to such determination of his or her personal liabil-
     6  ity.
     7    § 2. This act shall  take  effect  immediately,  but  shall  apply  to
     8  amounts that become due for the quarter after such effective date.
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