Add §195.22, amd §105.10, Pen L; amd §1801, Tax L; amd §11-4002, NYC Ad Cd
Creates the offense of defrauding the government in the first degree; expands the definition of conspiracy in the fourth degree; relates to expanding the definition of tax fraud acts.
STATE OF NEW YORK
________________________________________________________________________
3204
2025-2026 Regular Sessions
IN SENATE
January 24, 2025
___________
Introduced by Sens. KRUEGER, LIU, WEBB -- read twice and ordered print-
ed, 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:
1 Section 1. The penal law is amended by adding a new section 195.22 to
2 read as follows:
3 § 195.22 Defrauding the government in the first degree.
4 A person is guilty of defrauding the government in the first degree
5 when, such person knowingly manufactures, sells, installs, or uses, or
6 attempts to manufacture, sell, install or use, an automated sales
7 suppression device for the purpose of enabling or assisting any person
8 to evade any tax owed to the state or a political subdivision of the
9 state or any instrumentality of the state.
10 For purposes of this section an "automated sales suppression device"
11 is a software program that falsifies electronic records for the purpose
12 of evading any tax owed to the state, or any political subdivision of
13 the state, or any instrumentality of the state. An "automated sales
14 suppression device" includes any software program that is (a) maintained
15 on a USB memory stick or thumb drive, zapper, removable compact disc or
16 other external device, or (b) embedded in the operating system as "phan-
17 tom ware," or (c) otherwise accessed remotely.
18 Defrauding the government in the first degree is a class D felony.
19 § 2. Section 105.10 of the penal law, as amended by chapter 489 of the
20 laws of 2000, is amended to read as follows:
21 § 105.10 Conspiracy in the fourth degree.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05666-01-5
S. 3204 2
1 A person is guilty of conspiracy in the fourth degree when, with
2 intent that conduct constituting:
3 1. a class B or class C felony be performed, [he or she] the person
4 agrees with one or more persons to engage in or cause the performance of
5 such conduct; or
6 2. a felony be performed, [he or she] the person, being over eighteen
7 years of age, agrees with one or more persons under sixteen years of age
8 to engage in or cause the performance of such conduct; or
9 3. the felony of money laundering in the third degree as defined in
10 section 470.10 of this chapter, be performed, [he or she] the person
11 agrees with one or more persons to engage in or cause the performance of
12 such conduct[.]; or
13 4. the felony of defrauding the government in the first degree as
14 defined in section 195.22 of this part, be performed, the person agrees
15 with one or more persons to engage in or cause the performance of such
16 conduct.
17 Conspiracy in the fourth degree is a class E felony.
18 § 3. Paragraphs 7, 8 and 9 of subdivision (a) of section 1801 of the
19 tax law, paragraph 7 as added by section 15 of subpart I of part V1 of
20 chapter 57 of the laws of 2009 and paragraph 8 as amended and paragraph
21 9 as added by section 7 of part UU of chapter 56 of the laws of 2023,
22 are amended to read as follows:
23 (7) with intent to evade any tax fails to pay that tax; [or]
24 (8) issues an exemption certificate, interdistributor sales certif-
25 icate, resale certificate, or any other document capable of evidencing a
26 claim that taxes do not apply to a transaction, which [he or she] the
27 person does not believe to be true and correct as to any material
28 matter, which omits any material information, or which is false, fraudu-
29 lent, or counterfeit; [or]
30 (9) uses an automated sales suppression device as described in section
31 195.22 of the penal law; or
32 (10) (a) knowingly fails to collect or remit any taxes imposed by
33 section four hundred ninety-three of this chapter on the sale of any
34 adult-use cannabis product; or (b) knowingly possesses for sale, as such
35 term is defined in section four hundred ninety-two of this chapter, any
36 such product on which the tax required to be paid under subdivision (a)
37 of such section has not been paid.
38 § 4. Paragraphs 7 and 8 of subdivision (a) of section 11-4002 of the
39 administrative code of the city of New York, as added by chapter 201 of
40 the laws of 2009, are amended and a new paragraph 9 is added to read as
41 follows:
42 (7) with intent to evade any tax imposed under any designated chapter
43 of this title, fails to pay that tax; [or]
44 (8) issues an exemption certificate, interdistributor sales certif-
45 icate, resale certificate, or any other document capable of evidencing a
46 claim that taxes imposed under a designated chapter of this title do not
47 apply to a transaction, which [he or she] the person does not believe to
48 be true and correct as to any material matter, which omits any material
49 information, or which is false, fraudulent, or counterfeit[.]; or
50 (9) uses an automated sales suppression device as described in section
51 195.22 of the penal law.
52 § 5. This act shall take effect on the first of November next succeed-
53 ing the date upon which it shall have become a law.
