Amd Pen L, generally; amd §§20.40 & 190.30, CP L; amd §410, Gen Bus L; amd §220-b, Lab L; amd §1-c, Leg L;
amd §3, Pub Off L; amd §§139-a, 139-b & 139-c, St Fin L; amd §41, Tax L
Enacts the "restoring integrity and preventing outright fraud in financial systems" or "R.I.P.O.F.F." act; increases penalties for a scheme to defraud; broadens the definitions of commercial bribery and bribing a public servant; creates the crime of structuring; expands jurisdiction for tax revenue deprivation; increases penalties for defrauding the government and certain persons over the age of sixty-five.
STATE OF NEW YORK
________________________________________________________________________
8594
2025-2026 Regular Sessions
IN SENATE
December 1, 2025
___________
Introduced by Sen. MYRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the penal law, the criminal procedure law, the general
business law, the labor law, the legislative law, the public officers
law, the state finance law and the tax law, in relation to enacting
the "restoring integrity and preventing outright fraud in financial
systems" or "R.I.P.O.F.F. act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "restoring
2 integrity and preventing outright fraud in financial systems" or
3 "R.I.P.O.F.F. act".
4 § 2. Section 190.60 of the penal law, as amended by chapter 491 of the
5 laws of 1992 and subdivision 1 as amended by chapter 357 of the laws of
6 1996, is amended to read as follows:
7 § 190.60 Scheme to defraud in the [second] fifth degree.
8 1. A person is guilty of a scheme to defraud in the [second] fifth
9 degree when [he] such person engages in a scheme constituting a system-
10 atic ongoing course of conduct with intent to defraud more than one
11 person or to obtain property from more than one person by false or frau-
12 dulent pretenses, representations or promises, and so obtains property
13 from one or more of such persons.
14 2. In any prosecution under this section, it shall be necessary to
15 prove the identity of at least one person from whom the defendant so
16 obtained property, but it shall not be necessary to prove the identity
17 of any other intended victim.
18 Scheme to defraud in the [second] fifth degree is a class A misdemea-
19 nor.
20 § 3. Section 190.65 of the penal law, as amended by chapter 332 of the
21 laws of 2020, is amended to read as follows:
22 § 190.65 Scheme to defraud in the [first] fourth degree.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13585-05-5
S. 8594 2
1 1. A person is guilty of a scheme to defraud in the [first] fourth
2 degree when [he or she] such person: (a) engages in a scheme constitut-
3 ing a systematic ongoing course of conduct with intent to defraud ten or
4 more persons or to obtain property from ten or more persons by false or
5 fraudulent pretenses, representations or promises, and so obtains prop-
6 erty from one or more of such persons; or (b) engages in a scheme
7 constituting a systematic ongoing course of conduct with intent to
8 defraud more than one person or to obtain property from more than one
9 person by false or fraudulent pretenses, representations or promises,
10 and so obtains property with a value in excess of one thousand dollars
11 from one or more such persons; or (c) engages in a scheme constituting a
12 systematic ongoing course of conduct with intent to defraud more than
13 one person, more than one of whom is a vulnerable elderly person as
14 defined in subdivision three of section 260.31 of this chapter or to
15 obtain property from more than one person, more than one of whom is a
16 vulnerable elderly person as defined in subdivision three of section
17 260.31 of this chapter, by false or fraudulent pretenses, representa-
18 tions or promises, and so obtains property from one or more such
19 persons; or (d) engages in a systematic ongoing course of conduct, with
20 intent to defraud more than one person by false or fraudulent pretenses,
21 representations or promises, by disposing of solid waste as defined in
22 section 27-0701 of the environmental conservation law on such persons'
23 property, and so damages the property of one or more of such persons in
24 an amount in excess of one thousand dollars.
25 2. In any prosecution under this section, it shall be necessary to
26 prove the identity of at least one person from whom the defendant so
27 obtained property, but it shall not be necessary to prove the identity
28 of any other intended victim, provided that in any prosecution under
29 paragraph (c) of subdivision one of this section, it shall be necessary
30 to prove the identity of at least one such vulnerable elderly person as
31 defined in subdivision three of section 260.31 of this chapter.
32 3. In any prosecution under paragraph (d) of subdivision one of this
33 section, it shall be necessary to prove the identity of at least one
34 person on whose property the defendant fraudulently disposed of solid
35 waste pursuant to such paragraph (d), but it shall not be necessary to
36 prove the identity of any other victim or intended victim.
37 Scheme to defraud in the [first] fourth degree is a class E felony.
38 § 4. The penal law is amended by adding three new sections 190.66,
39 190.67, and 190.68 to read as follows:
40 § 190.66 Scheme to defraud in the third degree.
41 1. A person is guilty of a scheme to defraud in the third degree when
42 such person: (a) engages in a scheme constituting a systematic ongoing
43 course of conduct with intent to defraud twenty-five or more persons or
44 to obtain property from twenty-five or more persons by false or fraudu-
45 lent pretenses, representations or promises, and so obtains property
46 from one or more of such persons; or (b) engages in a scheme constitut-
47 ing a systematic ongoing course of conduct with intent to defraud more
48 than one person or to obtain property from more than one person by false
49 or fraudulent pretenses, representations or promises, and so obtains
50 property with a value in excess of three thousand dollars from one or
51 more such persons; or (c) engages in a scheme constituting a systematic
52 ongoing course of conduct with intent to defraud more than one person,
53 more than one of whom is a vulnerable elderly person as defined in
54 subdivision three of section 260.31 of this chapter or to obtain proper-
55 ty from more than one person, more than one of whom is a vulnerable
56 elderly person as defined in subdivision three of section 260.31 of this
S. 8594 3
1 chapter, by false or fraudulent pretenses, representations or promises,
2 and so obtains property with a value in excess of one thousand dollars
3 from one or more such persons.
4 2. In any prosecution under this section, it shall be necessary to
5 prove the identity of at least one person from whom the defendant so
6 obtained property, but it shall not be necessary to prove the identity
7 of any other intended victim, provided that in any prosecution under
8 paragraph (c) of subdivision one of this section, it shall be necessary
9 to prove the identity of at least one such vulnerable elderly person as
10 defined in subdivision three of section 260.31 of this chapter.
11 Scheme to defraud in the third degree is a class D felony.
12 § 190.67 Scheme to defraud in the second degree.
13 1. A person is guilty of a scheme to defraud in the second degree when
14 such person: (a) engages in a scheme constituting a systematic ongoing
15 course of conduct with intent to defraud one hundred or more persons or
16 to obtain property from one hundred or more persons by false or fraudu-
17 lent pretenses, representations or promises, and so obtains property
18 from one or more of such persons; (b) engages in a scheme constituting a
19 systematic ongoing course of conduct with intent to defraud more than
20 one person or to obtain property from more than one person by false or
21 fraudulent pretenses, representations or promises, and so obtains prop-
22 erty with a value in excess of fifty thousand dollars from one or more
23 such persons; or (c) engages in a scheme constituting a systematic ongo-
24 ing course of conduct with intent to defraud more than one person, more
25 than one of whom is a vulnerable elderly person as defined in subdivi-
26 sion three of section 260.31 of this chapter or to obtain property from
27 more than one person, more than one of whom is a vulnerable elderly
28 person as defined in subdivision three of section 260.31 of this chap-
29 ter, by false or fraudulent pretenses, representations or promises, and
30 so obtains property with a value in excess of three thousand dollars
31 from one or more such persons.
32 2. In any prosecution under this section, it shall be necessary to
33 prove the identity of at least one person from whom the defendant so
34 obtained property, but it shall not be necessary to prove the identity
35 of any other intended victim, provided that in any prosecution under
36 paragraph (c) of subdivision one of this section, it shall be necessary
37 to prove the identity of at least one such vulnerable elderly person as
38 defined in subdivision three of section 260.31 of this chapter.
39 Scheme to defraud in the second degree is a class C felony.
40 § 190.68 Scheme to defraud in the first degree.
41 1. A person is guilty of a scheme to defraud in the first degree when
42 such person: (a) engages in a scheme constituting a systematic ongoing
43 course of conduct with intent to defraud one thousand or more persons or
44 to obtain property from one thousand or more persons by false or fraudu-
45 lent pretenses, representations or promises, and so obtains property
46 from one or more of such persons; (b) engages in a scheme constituting a
47 systematic ongoing course of conduct with intent to defraud more than
48 one person or to obtain property from more than one person by false or
49 fraudulent pretenses, representations or promises, and so obtains prop-
50 erty with a value in excess of one million dollars from one or more such
51 persons; or (c) engages in a scheme constituting a systematic ongoing
52 course of conduct with intent to defraud more than one person, more than
53 one of whom is a vulnerable elderly person as defined in subdivision
54 three of section 260.31 of this chapter or to obtain property from more
55 than one person, more than one of whom is a vulnerable elderly person as
56 defined in subdivision three of section 260.31 of this chapter, by false
S. 8594 4
1 or fraudulent pretenses, representations or promises, and so obtains
2 property with a value in excess of fifty thousand dollars from one or
3 more such persons.
4 2. In any prosecution under this section, it shall be necessary to
5 prove the identity of at least one person from whom the defendant so
6 obtained property, but it shall not be necessary to prove the identity
7 of any other intended victim, provided that in any prosecution under
8 paragraph (c) of subdivision one of this section, it shall be necessary
9 to prove the identity of at least one such vulnerable elderly person as
10 defined in subdivision three of section 260.31 of this chapter.
11 Scheme to defraud in the first degree is a class B felony.
12 § 5. Section 200.00 of the penal law, as amended by chapter 833 of the
13 laws of 1986, is amended to read as follows:
14 § 200.00 Bribery in the third degree.
15 A person is guilty of bribery in the third degree when [he] such
16 person confers, or offers or agrees to confer, any benefit upon a public
17 servant [upon an agreement or understanding that] with the intent to
18 influence such public servant's vote, opinion, judgment, action, deci-
19 sion or exercise of discretion as a public servant [will thereby be
20 influenced].
21 Bribery in the third degree is a class D felony.
22 § 6. Section 200.03 of the penal law, as amended by section 18 of
23 subpart A of part H of chapter 55 of the laws of 2014, is amended to
24 read as follows:
25 § 200.03 Bribery in the second degree.
26 A person is guilty of bribery in the second degree when [he] such
27 person confers, or offers or agrees to confer, any benefit valued in
28 excess of five thousand dollars upon a public servant [upon an agreement
29 or understanding that] with the intent to influence such public serv-
30 ant's vote, opinion, judgment, action, decision or exercise of
31 discretion as a public servant [will thereby be influenced].
32 Bribery in the second degree is a class C felony.
33 § 7. Section 200.04 of the penal law, as amended by section 19 of
34 subpart A of part H of chapter 55 of the laws of 2014, is amended to
35 read as follows:
36 § 200.04 Bribery in the first degree.
37 A person is guilty of bribery in the first degree when [the] such
38 person confers, or offers or agrees to confer: (1) any benefit upon a
39 public servant [upon an agreement or understanding that] with the intent
40 to influence such public servant's vote, opinion, judgment, action,
41 decision or exercise of discretion as a public servant [will thereby be
42 influenced] in the investigation, arrest, detention, prosecution or
43 incarceration of any person for the commission or alleged commission of
44 a class A felony defined in article two hundred twenty of this part or
45 an attempt to commit any such class A felony; or (2) any benefit valued
46 in excess of one hundred thousand dollars upon a public servant [upon an
47 agreement or understanding that] with the intent to influence such
48 public servant's vote, opinion, judgment, action, decision or exercise
49 of discretion as a public servant [will thereby be influenced].
50 Bribery in the first degree is a class B felony.
51 § 8. Section 200.10 of the penal law, as amended by section 21 of
52 subpart A of part H of chapter 55 of the laws of 2014, is amended to
53 read as follows:
54 § 200.10 Bribe receiving in the third degree.
55 A public servant is guilty of bribe receiving in the third degree when
56 [he or she] such public servant solicits, accepts or agrees to accept
S. 8594 5
1 any benefit from another person [upon an agreement or understanding that
2 his or her] with the intent to influence such public servant's vote,
3 opinion, judgment, action, decision or exercise of discretion as a
4 public servant will thereby be influenced.
5 Bribe receiving in the third degree is a class D felony.
6 § 9. Section 200.11 of the penal law, as amended by section 22 of
7 subpart A of part H of chapter 55 of the laws of 2014, is amended to
8 read as follows:
9 § 200.11 Bribe receiving in the second degree.
10 A public servant is guilty of bribe receiving in the second degree
11 when [he or she] such public servant solicits, accepts or agrees to
12 accept any benefit valued in excess of five thousand dollars from anoth-
13 er person [upon an agreement or understanding that his or her] with the
14 intent to influence such public servant's vote, opinion, judgment,
15 action, decision or exercise of discretion as a public servant will
16 thereby be influenced.
17 Bribe receiving in the second degree is a class C felony.
18 § 10. Section 200.12 of the penal law, as amended by section 23 of
19 subpart A of part H of chapter 55 of the laws of 2014, is amended to
20 read as follows:
21 § 200.12 Bribe receiving in the first degree.
22 A public servant is guilty of bribe receiving in the first degree when
23 [he or she] such public servant solicits, accepts or agrees to accept:
24 (a) any benefit from another person [upon an agreement or understanding
25 that his or her] with the intent to influence such public servant's
26 vote, opinion, judgment, action, decision or exercise of discretion as a
27 public servant will thereby be influenced in the investigation, arrest,
28 detention, prosecution or incarceration of any person for the commission
29 or alleged commission of a class A felony defined in article two hundred
30 twenty of this part or an attempt to commit any such class A felony; or
31 (b) any benefit valued in excess of one hundred thousand dollars from
32 another person [upon an agreement or understanding that] with the intent
33 to influence such public servant's vote, opinion, judgment, action,
34 decision or exercise of discretion as a public servant will thereby be
35 influenced.
36 Bribe receiving in the first degree is a class B felony.
37 § 11. Sections 180.03, 180.05 and 180.08 of the penal law, as amended
38 by chapter 577 of the laws of 1983, are amended to read as follows:
39 § 180.03 Commercial bribing in the first degree.
40 A person is guilty of commercial bribing in the first degree when [he]
41 such person confers, or offers or agrees to confer, any benefit upon any
42 employee, agent or fiduciary without the consent of the latter's employ-
43 er or principal, with intent to influence [his] such person's conduct in
44 relation to [his] such person's employer's or principal's affairs, and
45 when the value of the benefit conferred or offered or agreed to be
46 conferred exceeds one thousand dollars [and causes economic harm to the
47 employer or principal in an amount exceeding two hundred fifty dollars].
48 Commercial bribing in the first degree is a class E felony.
49 § 180.05 Commercial bribe receiving in the second degree.
50 An employee, agent or fiduciary is guilty of commercial bribe receiv-
51 ing in the second degree when, without the consent of [his] such
52 person's employer or principal, [he] such person solicits, accepts or
53 agrees to accept any benefit from another person upon an agreement or
54 understanding and with the intent that such benefit will influence [his]
55 such person's conduct in relation to [his] their employer's or princi-
56 pal's affairs.
S. 8594 6
1 Commercial bribe receiving in the second degree is a class A misdemea-
2 nor.
3 § 180.08 Commercial bribe receiving in the first degree.
4 An employee, agent or fiduciary is guilty of commercial bribe receiv-
5 ing in the first degree when, without the consent of [his] such person's
6 employer or principal, [he] such person solicits, accepts or agrees to
7 accept any benefit from another person upon an agreement or understand-
8 ing and with the intent that such benefit will influence [his] such
9 person's conduct in relation to [his] their employer's or principal's
10 affairs, and when the value of the benefit solicited, accepted or agreed
11 to be accepted exceeds one thousand dollars [and causes economic harm to
12 the employer or principal in an amount exceeding two hundred fifty
13 dollars].
14 Commercial bribe receiving in the first degree is a class E felony.
15 § 12. Subdivision 10 of section 470.00 of the penal law is renumbered
16 subdivision 11 and a new subdivision 10 is added to read as follows:
17 10. "Structuring" means, for the purposes of sections 470.30 and
18 470.31 of this article, when a person conducts or attempts to conduct
19 one or more related transactions in currency, in any amount, with one or
20 more financial institutions, on one or more days with the intent to
21 evade any reporting requirement under the banking law, 31 U.S.C. §§ 5311
22 through 5326, or any regulation prescribed thereunder. Structuring
23 includes, but is not limited to, the breaking down of a single sum of
24 currency exceeding ten thousand dollars into smaller sums, including
25 sums at or below ten thousand dollars, or the conducting of a trans-
26 action, or series of currency transactions, including transactions at or
27 below ten thousand dollars.
28 § 13. The penal law is amended by adding two new sections 470.30 and
29 470.31 to read as follows:
30 § 470.30 Structuring in the second degree.
31 A person is guilty of structuring in the second degree when, with the
32 intent to evade any reporting requirement under the banking law, 31
33 U.S.C. §§ 5311 through 5326, or any regulation prescribed thereunder,
34 such person structures one or more transactions.
35 Structuring in the second degree is a class E felony.
36 § 470.31 Structuring in the first degree.
37 A person is guilty of structuring in the first degree when such person
38 commits the crime of structuring in the second degree and:
39 1. the conduct is committed with an intent to commit another crime or
40 to aid or conceal the commission of another crime; or
41 2. the aggregate value of the currency reported or the currency that
42 should have been reported exceeds one hundred thousand dollars in any
43 twelve-month period.
44 Structuring in the first degree is a class D felony.
45 § 14. Section 195.20 of the penal law, as amended by chapter 1 of the
46 laws of 2010, is amended to read as follows:
47 § 195.20 Defrauding the government in the fourth degree.
48 A person is guilty of defrauding the government in the fourth degree
49 when[, being a public servant or party officer, he or she] such person:
50 (a) engages in a scheme constituting a systematic ongoing course of
51 conduct with intent to:
52 (i) defraud the state or a political subdivision of the state or a
53 governmental instrumentality within the state or to obtain property,
54 services or other resources from the state or a political subdivision of
55 the state or a governmental instrumentality within the state by false or
56 fraudulent pretenses, representations or promises; [or]
S. 8594 7
1 (ii) defraud the state or a political subdivision of the state or a
2 governmental instrumentality within the state by making use of property,
3 services or resources of the state, political subdivision of the state
4 or a governmental instrumentality within the state for private business
5 purposes or other compensated non-governmental purposes; [and] or
6 (iii) defraud the state or a political subdivision of the state or a
7 public authority, public benefit corporation, or municipal corporation
8 of the state, or any instrumentality thereof, of one or more forms of
9 revenue, and so evades payment of any tax, insurance premium, contrib-
10 ution, or fee, or any portion thereof, owed to the state or a political
11 subdivision, public authority, public benefit corporation or municipal
12 corporation of the state or any instrumentality thereof; and
13 (b) (i) with respect to an offense charged under paragraph (i) or (ii)
14 of subdivision (a) of this section, so obtains property, services or
15 other resources with a value in excess of [one] ten thousand dollars
16 from such state, political subdivision or governmental instrumentality;
17 or
18 (ii) with respect to an offense charged under paragraph (iii) of
19 subdivision (a) of this section, the aggregate unpaid tax, premium,
20 contribution, or fee owed exceeds ten thousand dollars.
21 Defrauding the government in the fourth degree is a class E felony.
22 § 15. The penal law is amended by adding three new sections 195.22,
23 195.25 and 195.27 to read as follows:
24 § 195.22 Defrauding the government in the third degree.
25 A person is guilty of defrauding the government in the third degree
26 when such person:
27 (a) engages in a scheme constituting a systematic ongoing course of
28 conduct with intent to:
29 (i) defraud the state or a political subdivision of the state or a
30 governmental instrumentality within the state or to obtain property,
31 services or other resources from the state or a political subdivision of
32 the state or a governmental instrumentality within the state by false or
33 fraudulent pretenses, representations or promises;
34 (ii) defraud the state or a political subdivision of the state or a
35 governmental instrumentality within the state by making use of property,
36 services or resources of the state, political subdivision of the state
37 or a governmental instrumentality within the state for private business
38 purposes or other compensated non-governmental purposes; or
39 (iii) defraud the state or a political subdivision of the state or a
40 public authority, public benefit corporation, or municipal corporation
41 of the state, or any instrumentality thereof, of one or more forms of
42 revenue, and so evades payment of any tax, insurance premium, contrib-
43 ution, or fee, or any portion thereof, owed to the state or a political
44 subdivision, public authority, public benefit corporation or municipal
45 corporation of the state or any instrumentality thereof; and
46 (b) (i) with respect to an offense charged under paragraph (i) or (ii)
47 of subdivision (a) of this section, so obtains property, services or
48 other resources with a value in excess of seventy-five thousand dollars
49 from such state, political subdivision or governmental instrumentality;
50 or
51 (ii) with respect to an offense charged under paragraph (iii) of
52 subdivision (a) of this section, the aggregate unpaid tax, premium,
53 contribution, or fee owed exceeds seventy-five thousand dollars.
54 Defrauding the government in the third degree is a class D felony.
55 § 195.25 Defrauding the government in the second degree.
S. 8594 8
1 A person is guilty of defrauding the government in the second degree
2 when such person:
3 (a) engages in a scheme constituting a systematic ongoing course of
4 conduct with intent to:
5 (i) defraud the state or a political subdivision of the state or a
6 governmental instrumentality within the state or to obtain property,
7 services or other resources from the state or a political subdivision of
8 the state or a governmental instrumentality within the state by false or
9 fraudulent pretenses, representations or promises;
10 (ii) defraud the state or a political subdivision of the state or a
11 governmental instrumentality within the state by making use of property,
12 services or resources of the state, political subdivision of the state
13 or a governmental instrumentality within the state for private business
14 purposes or other compensated non-governmental purposes; or
15 (iii) defraud the state or a political subdivision of the state or a
16 public authority, public benefit corporation, or municipal corporation
17 of the state, or any instrumentality thereof, of one or more forms of
18 revenue, and so evades payment of any tax, insurance premium, contrib-
19 ution, or fee, or any portion thereof, owed to the state or a political
20 subdivision, public authority, public benefit corporation or municipal
21 corporation of the state or any instrumentality thereof; and
22 (b) (i) with respect to an offense charged under paragraph (i) or (ii)
23 of subdivision (a) of this section, so obtains property, services or
24 other resources with a value in excess of one hundred thousand dollars
25 from such state, political subdivision or governmental instrumentality;
26 or
27 (ii) with respect to an offense charged under paragraph (iii) of
28 subdivision (a) of this section, the aggregate unpaid tax, premium,
29 contribution, or fee owed exceeds one hundred thousand dollars.
30 Defrauding the government in the second degree is a class C felony.
31 § 195.27 Defrauding the government in the first degree.
32 A person is guilty of defrauding the government in the first degree
33 when such person:
34 (a) engages in a scheme constituting a systematic ongoing course of
35 conduct with intent to:
36 (i) defraud the state or a political subdivision of the state or a
37 governmental instrumentality within the state or to obtain property,
38 services or other resources from the state or a political subdivision of
39 the state or a governmental instrumentality within the state by false or
40 fraudulent pretenses, representations or promises;
41 (ii) defraud the state or a political subdivision of the state or a
42 governmental instrumentality within the state by making use of property,
43 services or resources of the state, political subdivision of the state
44 or a governmental instrumentality within the state for private business
45 purposes or other compensated non-governmental purposes; or
46 (iii) defraud the state or a political subdivision of the state or a
47 public authority, public benefit corporation, or municipal corporation
48 of the state, or any instrumentality thereof, of one or more forms of
49 revenue, and so evades payment of any tax, insurance premium, contrib-
50 ution, or fee, or any portion thereof, owed to the state or a political
51 subdivision, public authority, public benefit corporation or municipal
52 corporation of the state or any instrumentality thereof; and
53 (b) (i) with respect to an offense charged under paragraph (i) or (ii)
54 of subdivision (a) of this section, so obtains property, services or
55 other resources with a value in excess of two hundred fifty thousand
S. 8594 9
1 dollars from such state, political subdivision or governmental instru-
2 mentality; or
3 (ii) with respect to an offense charged under paragraph (iii) of
4 subdivision (a) of this section, the aggregate unpaid tax, premium,
5 contribution, or fee owed exceeds two hundred fifty thousand dollars.
6 Defrauding the government in the first degree is a class B felony.
7 § 16. Subdivision 2 of section 20.40 of the criminal procedure law is
8 amended by adding a new paragraph (f) to read as follows:
9 (f) The event caused a financial loss of more than one thousand
10 dollars to the state or a political subdivision thereof, including, but
11 not limited to, any agency or instrumentality of the state or any poli-
12 tical subdivision thereof.
13 § 17. Subdivision 1 of section 155.00 of the penal law, as amended by
14 chapter 353 of the laws of 2023, is amended and a new subdivision 17 is
15 added to read as follows:
16 1. "Property" means any money, compensation for labor or services,
17 personal property, real property, computer data, computer program, thing
18 in action, evidence of debt or contract, virtual currency as defined in
19 paragraph (p) of section 200.2 of title twenty-three of the New York
20 Codes, Rules and Regulations, or any article, substance or thing of
21 value, including any gas, steam, water or electricity, which is provided
22 for a charge or compensation.
23 17. "Virtual currency" means any type of digital unit that is used as
24 a medium of exchange or a form of digitally stored value. Virtual
25 currency shall be broadly construed to include digital units of exchange
26 that: (a) have a centralized repository or administrator; (b) are decen-
27 tralized and have no centralized repository or administrator; or (c) may
28 be created or obtained by computing or manufacturing effort. Virtual
29 currency shall not be construed to include: (a) digital units that: (i)
30 are used solely within online gaming platforms; (ii) have no market or
31 application outside of those gaming platforms; (iii) cannot be converted
32 into, or redeemed for, fiat currency or virtual currency; and (iv) may
33 or may not be redeemable for real-world goods, services, discounts, or
34 purchases; (b) digital units that can be redeemed for goods, services,
35 discounts, or purchases as part of a customer affinity or rewards
36 program with the issuer and/or other designated merchants or can be
37 redeemed for digital units in another customer affinity or rewards
38 program, but cannot be converted into, or redeemed for, fiat currency or
39 virtual currency; or (c) digital units used as part of prepaid cards.
40 § 18. Subdivision 1 of section 470.00 of the penal law, as amended by
41 chapter 489 of the laws of 2000, is amended to read as follows:
42 1. "Monetary instrument" means coin and currency of the United States
43 or of any other country; virtual currency as defined in section 155.00
44 of this chapter; personal checks; bank checks; traveler's checks; money
45 orders; and investment securities and negotiable instruments, in bearer
46 form or otherwise, in such form that title thereto passes on delivery,
47 except that "monetary instrument" shall not include payments to attor-
48 neys for legal services.
49 § 19. Subdivision 3 of section 470.00 of the penal law, as amended by
50 chapter 489 of the laws of 2000, is amended to read as follows:
51 3. (a) "Transaction" includes a payment, purchase, sale, loan, pledge,
52 gift, transfer, or delivery, and with respect to a financial institution
53 includes a deposit, withdrawal, transfer between accounts, exchange of
54 currency, loan, extension of credit, purchase or sale of any stock,
55 bond, certificate of deposit, or other monetary instrument, use of a
56 safe deposit box, or any other payment, transfer, or delivery by,
S. 8594 10
1 through, or to a financial institution, by whatever means effected,
2 except that "transaction" shall not include payments to attorneys for
3 legal services.
4 (b) With respect to virtual currency, "transaction" includes:
5 (i) receiving virtual currency or transmitting virtual currency;
6 (ii) the conversion or exchange of fiat currency or other value into
7 virtual currency;
8 (iii) the conversion or exchange of virtual currency into fiat curren-
9 cy or other value;
10 (iv) the conversion or exchange of one form of virtual currency into
11 another form of virtual currency;
12 (v) storing, holding, or maintaining custody or control of virtual
13 currency; and
14 (vi) controlling, administering, or issuing a virtual currency.
15 The development and dissemination of software in and of itself does
16 not constitute a virtual currency transaction.
17 § 20. Section 450.10 of the penal law is amended by adding a new
18 subdivision 12 to read as follows:
19 12. When fraudulent proceeds, as defined in paragraph (a) of this
20 subdivision, are in the custody or control of the court, a police offi-
21 cer, a peace officer, or a district attorney, or have been seized pursu-
22 ant to a search warrant and are held by a third party, no later than
23 ninety days after the seizure or recovery of such fraudulent proceeds, a
24 police officer, a peace officer, or a district attorney shall identify
25 to the court the owner or owners of such fraudulent proceeds as defined
26 in subdivision five of section 155.00 of this chapter, and any other
27 person who may have an interest therein, and give notice of said seizure
28 to such persons by certified or registered mail, or by other means,
29 including, but not limited to, electronic means, if sufficient and
30 appropriate under the circumstances.
31 (a) For the purposes of this subdivision, fraudulent proceeds means
32 any virtual currency, as defined in paragraph (p) of section 200.2 of
33 title 23 of the New York Codes, Rules and Regulations, that is (i)
34 obtained through the commission of a larceny or a fraudulent scheme or
35 transaction, (ii) traceable to property obtained through the commission
36 of a larceny or a fraudulent scheme or transaction, or (iii) obtained
37 through the sale or exchange of property obtained through the commission
38 of a larceny or a fraudulent scheme or transaction; and including any
39 appreciation in value of such property.
40 (b) Upon identifying to the court the owner or owners of such fraudu-
41 lent proceeds and any other person who may have an interest therein, a
42 police officer, a peace officer, or a district attorney may petition the
43 court to order that such fraudulent proceeds be returned to its owner or
44 owners.
45 (c) Any person asserting a claim to such fraudulent proceeds, other
46 than the owner or owners identified in the petition referenced above,
47 must file a written request for a hearing within sixty days from when
48 notice was provided. Upon such a written request, the court shall
49 promptly, but not less than two weeks after such a request is made, hold
50 a hearing.
51 § 21. Paragraph (a) of subdivision 8 of section 190.30 of the criminal
52 procedure law, as added by chapter 279 of the laws of 2008, is amended
53 to read as follows:
54 (a) A business record as defined in rule forty-five hundred eighteen
55 of the civil practice law and rules generated by a business entity may
S. 8594 11
1 be received in such grand jury proceedings as evidence [of the following
2 facts and similar facts stated therein:
3 (i) a person's use of, subscription to and charges and payments for
4 communication equipment and services including but not limited to equip-
5 ment or services provided by telephone companies and internet service
6 providers, but not including recorded conversations or images communi-
7 cated thereby; and
8 (ii) financial transactions, and a person's ownership or possessory
9 interest in any account, at a bank, insurance company, brokerage,
10 exchange or banking organization as defined in section two of the bank-
11 ing law].
12 § 22. Paragraph (c) of subdivision 8 of section 190.30 of the criminal
13 procedure law, as added by chapter 279 of the laws of 2008, is amended
14 to read as follows:
15 (c) Any business record offered to a grand jury pursuant to paragraph
16 (a) of this subdivision that includes material [beyond that described in
17 such paragraph (a)] outside the scope of the business record as regular-
18 ly generated shall be redacted to exclude such additional material, or
19 received subject to a limiting instruction that the grand jury shall not
20 consider such additional material in support of any criminal charge.
21 § 23. Section 190.30 of the criminal procedure law is amended by
22 adding a new subdivision 9 to read as follows:
23 9. A record generated by an electronic process, computer, cryptograph-
24 ically secured technology, or system, that procures an accurate result
25 may be received in such grand jury proceedings as evidence if it is
26 accompanied by a written declaration of a qualified person, made under
27 oath, stating the qualification of the person to make the certification,
28 the date and time the record was generated, and that the record was
29 maintained as a regular conducted process.
30 § 24. Section 80.10 of the penal law is amended by adding a new subdi-
31 vision 4 to read as follows:
32 4. Corporate equity fines. (a) Notwithstanding any other provision of
33 this section, in any criminal proceeding where a corporation doing busi-
34 ness in New York state with annual revenues exceeding one hundred
35 million dollars is convicted of a felony offense under the laws of this
36 state, the court, in addition to or in lieu of any other penalty author-
37 ized by law, may impose an equity fine. An equity fine shall consist of
38 a judicially determined percentage of the corporation's equity, which
39 shall be issued as new, non-voting shares to a state-managed fund or a
40 designated victim compensation fund.
41 (b) The court may determine the percentage of the equity fine based
42 upon the severity of the offense, the extent of the harm caused, the
43 corporation's history of similar misconduct, the degree of complicity by
44 senior management, and the need for both specific and general deter-
45 rence. The percentage shall be sufficient to impose a meaningful econom-
46 ic sanction on the corporation and its shareholders. The court may
47 consider, but shall not be limited to, the following factors in deter-
48 mining such percentage:
49 (i) The total pecuniary gain to the corporation from the offense;
50 (ii) The total pecuniary loss caused by the offense to victims;
51 (iii) The market capitalization of the corporation at the time of
52 sentencing;
53 (iv) The effectiveness of the corporation's internal compliance
54 programs at the time of the offense; and
55 (v) Any remedial actions taken by the corporation, including cooper-
56 ation with the prosecution and restitution to victims.
S. 8594 12
1 (c) The convicted corporation shall be required to issue new, non-vot-
2 ing shares equal to the determined percentage of its total equity. These
3 shares shall be registered and transferred to a fund established by the
4 New York state comptroller or a specific victim compensation fund as
5 designated by the court. The shares shall be held by the state until
6 such time as their sale would maximize public benefit or victim compen-
7 sation, as determined by the administering entity, but in no event shall
8 the state or its designated fund exercise any voting rights associated
9 with such shares.
10 (d) The shares issued as an equity fine shall be explicitly designated
11 as non-voting shares.
12 (e) This subdivision shall not apply to closely held corporations
13 where the imposition of an equity fine would disproportionately penalize
14 a small number of individual owners who may also be directly subject to
15 criminal prosecution. The court shall have discretion to determine
16 whether a corporation is closely held for the purposes of this
17 exemption.
18 § 25. The penal law is amended by adding a new section 155.50 to read
19 as follows:
20 § 155.50 Sentencing.
21 When a person is convicted of an offense pursuant to this article, or
22 is convicted of an attempt or conspiracy to commit an offense under this
23 article, and the victim is aged sixty-five years or older and the
24 defendant is more than ten years younger than the victim, the crime
25 shall be deemed to be one category higher than the specified offense the
26 defendant committed, or one category higher than the offense level
27 applicable to the defendant's conviction for an attempt or conspiracy to
28 commit a specified offense, whichever is applicable.
29 § 26. Subdivision 2 of section 496.06 of the penal law, as added by
30 section 14 of subpart A of part H of chapter 55 of the laws of 2014, is
31 amended to read as follows:
32 2. A "specified offense" is an offense defined by any of the following
33 provisions of this chapter: section 155.25 (petit larceny); section
34 155.30 (grand larceny in the fourth degree); section 155.35 (grand
35 larceny in the third degree); section 155.40 (grand larceny in the
36 second degree); section 155.42 (grand larceny in the first degree);
37 section 190.60 (scheme to defraud in the [second] fifth degree); [or]
38 section 190.65 (scheme to defraud in the [first] fourth degree); section
39 190.66 (scheme to defraud in the third degree); section 190.67 (scheme
40 to defraud in the second degree); or section 190.68 (scheme to defraud
41 in the first degree).
42 § 27. Paragraph (a) of subdivision 1 of section 460.10 of the penal
43 law, as amended by chapter 134 of the laws of 2019, is amended to read
44 as follows:
45 (a) Any of the felonies set forth in this chapter: sections 120.05,
46 120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
47 ing to strangulation; sections 125.10 to 125.27 relating to homicide;
48 sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
49 135.25 relating to kidnapping; sections 135.35 and 135.37 relating to
50 labor trafficking; section 135.65 relating to coercion; sections 140.20,
51 140.25 and 140.30 relating to burglary; sections 145.05, 145.10 and
52 145.12 relating to criminal mischief; article one hundred fifty relating
53 to arson; sections 155.30, 155.35, 155.40 and 155.42 relating to grand
54 larceny; sections 177.10, 177.15, 177.20 and 177.25 relating to health
55 care fraud; article one hundred sixty relating to robbery; sections
56 165.45, 165.50, 165.52 and 165.54 relating to criminal possession of
S. 8594 13
1 stolen property; sections 165.72 and 165.73 relating to trademark coun-
2 terfeiting; sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65 and
3 170.70 relating to forgery; sections 175.10, 175.25, 175.35, 175.40 and
4 210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
5 176.30 relating to insurance fraud; sections 178.20 and 178.25 relating
6 to criminal diversion of prescription medications and prescriptions;
7 sections 180.03, 180.08, 180.15, 180.25, 180.40, 180.45, 200.00, 200.03,
8 200.04, 200.10, 200.11, 200.12, 200.20, 200.22, 200.25, 200.27, 200.56,
9 215.00, 215.05 and 215.19 relating to bribery; sections 187.10, 187.15,
10 187.20 and 187.25 relating to residential mortgage fraud, sections
11 190.40 and 190.42 relating to criminal usury; [section] sections 190.60,
12 190.65, 190.66, 190.67 and 190.68 relating to schemes to defraud; any
13 felony defined in article four hundred ninety-six; sections 205.60 and
14 205.65 relating to hindering prosecution; sections 210.10, 210.15, and
15 215.51 relating to perjury and contempt; section 215.40 relating to
16 tampering with physical evidence; sections 220.06, 220.09, 220.16,
17 220.18, 220.21, 220.31, 220.34, 220.39, 220.41, 220.43, 220.46, 220.55,
18 220.60, 220.65 and 220.77 relating to controlled substances; sections
19 225.10 and 225.20 relating to gambling; sections 230.25, 230.30, and
20 230.32 relating to promoting prostitution; section 230.34 relating to
21 sex trafficking; section 230.34-a relating to sex trafficking of a
22 child; sections 235.06, 235.07, 235.21 and 235.22 relating to obscenity;
23 sections 263.10 and 263.15 relating to promoting a sexual performance by
24 a child; sections 265.02, 265.03, 265.04, 265.11, 265.12, 265.13 and the
25 provisions of section 265.10 which constitute a felony relating to
26 firearms and other dangerous weapons; sections 265.14 and 265.16 relat-
27 ing to criminal sale of a firearm; section 265.50 relating to the crimi-
28 nal manufacture, sale or transport of an undetectable firearm, rifle or
29 shotgun; section 275.10, 275.20, 275.30, or 275.40 relating to unauthor-
30 ized recordings; sections 470.30 and 470.31 relating to structuring; and
31 sections 470.05, 470.10, 470.15 and 470.20 relating to money laundering;
32 or
33 § 28. Paragraph f of subdivision 1 of section 410 of the general busi-
34 ness law, as amended by chapter 189 of the laws of 2018, is amended to
35 read as follows:
36 f. Conviction of any of the following crimes subsequent to the issu-
37 ance of a license or registration pursuant to this article: fraud pursu-
38 ant to sections 170.10, 170.15, 176.15, 176.20, 176.25, 176.30 [and];
39 schemes to defraud pursuant to sections 190.60, 190.65, 190.66, 190.67
40 and 190.68; falsifying business records pursuant to section 175.10;
41 structuring pursuant to sections 470.30 and 470.31; grand larceny pursu-
42 ant to article 155; bribery pursuant to sections 180.03, 180.08, 180.15,
43 180.25, 200.00, 200.03, 200.04, 200.10, 200.11, 200.12, 200.45, 200.50;
44 perjury pursuant to sections 210.10, 210.15, 210.40; assault pursuant to
45 sections 120.05, 120.10, 120.11, 120.12; robbery pursuant to article
46 160; homicide pursuant to sections 125.25 and 125.27; manslaughter
47 pursuant to sections 125.15 and 125.20; kidnapping and unlawful impri-
48 sonment pursuant to sections 135.10, 135.20 and 135.25; unlawful weapons
49 possession pursuant to sections 265.02, 265.03 and 265.04; criminal use
50 of a weapon pursuant to sections 265.08 and 265.09; criminal sale of a
51 weapon pursuant to sections 265.11 and 265.12; compelling prostitution
52 pursuant to section 230.33; sex trafficking pursuant to section 230.34;
53 sex trafficking of a child pursuant to section 230.34-a; and sex
54 offenses pursuant to article 130 of the penal law. Provided, however,
55 that for the purposes of this article, none of the following shall be
56 considered criminal convictions or reported as such: (i) a conviction
S. 8594 14
1 for which an executive pardon has been issued pursuant to the executive
2 law; (ii) a conviction which has been vacated and replaced by a youthful
3 offender finding pursuant to article seven hundred twenty of the crimi-
4 nal procedure law, or the applicable provisions of law of any other
5 jurisdiction; or (iii) a conviction the records of which have been
6 expunged or sealed pursuant to the applicable provisions of the laws of
7 this state or of any other jurisdiction; and (iv) a conviction for which
8 other evidence of successful rehabilitation to remove the disability has
9 been issued.
10 § 29. Clause (ii) of subparagraph 2 of paragraph b of subdivision 3 of
11 section 220-b of the labor law, as amended by chapter 7 of the laws of
12 2008, is amended to read as follows:
13 (ii) coercion in the first degree as defined in section 135.65 of the
14 penal law, grand larceny in the fourth degree as defined in section
15 155.30 of the penal law, grand larceny in the third degree as defined in
16 section 155.35 of the penal law, grand larceny in the second degree as
17 defined in section 155.40 of the penal law, grand larceny in the first
18 degree as defined in section 155.42 of the penal law, forgery in the
19 second degree as defined in section 170.10 of the penal law, forgery in
20 the first degree as defined in section 170.15 of the penal law, criminal
21 possession of a forged instrument in the second degree as defined in
22 section 170.25 of the penal law, criminal possession of a forged instru-
23 ment in the first degree as defined in section 170.30 of the penal law,
24 criminal possession of forgery devices as defined in section 170.40 of
25 the penal law, falsifying business records in the first degree as
26 defined in section 175.10 of the penal law, tampering with public
27 records in the first degree as defined in section 175.25 of the penal
28 law, offering a false instrument for filing in the first degree as
29 defined in section 175.35 of the penal law, issuing a false certificate
30 as defined in section 175.40 of the penal law, insurance fraud in the
31 fourth degree as defined in section 176.15 of the penal law, insurance
32 fraud in the third degree as defined in section 176.20 of the penal law,
33 insurance fraud in the second degree as defined in section 176.25 of the
34 penal law, insurance fraud in the first degree as defined in section
35 176.30 of the penal law, aggravated insurance fraud as defined in
36 section 176.35 of the penal law, commercial bribing in the first degree
37 as defined in section 180.03 of the penal law, commercial bribe receiv-
38 ing in the first degree as defined in section 180.08 of the penal law,
39 bribing a labor official as defined in section 180.15 of the penal law,
40 bribe receiving by a labor official as defined in section 180.25 of the
41 penal law, criminal impersonation in the second degree as defined in
42 section 190.25 of the penal law, criminal impersonation in the first
43 degree as defined in section 190.26 of the penal law, criminal usury in
44 the second degree as defined in section 190.40 of the penal law, crimi-
45 nal usury in the first degree as defined in section 190.42 of the penal
46 law, scheme to defraud in the fifth degree as defined in section 190.60
47 of the penal law, scheme to defraud in the fourth degree as defined in
48 section 190.65 of the penal law, scheme to defraud in the third degree
49 as defined in section 190.66 of the penal law, scheme to defraud in the
50 [first] second degree as defined in section [190.65] 190.67 of the penal
51 law, scheme to defraud in the first degree as defined in section 190.68
52 of the penal law, bribery in the third degree as defined in section
53 200.00 of the penal law, bribery in the second degree as defined in
54 section 200.03 of the penal law, bribery in the first degree as defined
55 in section 200.04 of the penal law, bribe receiving in the third degree
56 as defined in section 200.10 of the penal law, bribe receiving in the
S. 8594 15
1 second degree as defined in section 200.11 of the penal law, bribe
2 receiving in the first degree as defined in section 200.12 of the penal
3 law, rewarding official misconduct in the second degree as defined in
4 section 200.20 of the penal law, rewarding official misconduct in the
5 first degree as defined in section 200.22 of the penal law, bribe giving
6 for public office as defined in section 200.45 of the penal law, struc-
7 turing in the second degree as defined in section 470.30 of the penal
8 law, structuring in the first degree as defined in section 470.31 of the
9 penal law, or the attempted commission of any of the offenses set forth
10 in this [paragraph] clause, provided that such offense constitutes a
11 felony; or
12 § 30. Paragraphs (i) and (ii) of subdivision (a) of section 1-c of the
13 legislative law, as added by section 29 of subpart A of part H of chap-
14 ter 55 of the laws of 2014, are amended to read as follows:
15 (i) Any individual who stands convicted of a felony defined in article
16 two hundred or four hundred ninety-six or section 195.20, 195.22,
17 195.25, or 195.27 of the penal law may not be retained, employed or
18 designated by any client to engage in lobbying for compensation.
19 (ii) Any individual who stands convicted of a misdemeanor defined in
20 article two hundred, article four hundred ninety-six, section 195.00 or
21 an attempt to commit a violation of section 195.20, 195.22, 195.25, or
22 195.27 of the penal law may not be retained, employed or designated by
23 any client to engage in lobbying for compensation for a period of five
24 years from the date of conviction, provided that in the event such
25 conviction is the result of a plea agreement resulting in a plea to such
26 charge in lieu of a plea or conviction of a felony defined in section
27 195.20, 195.22, 195.25, or 195.27, article two hundred or article four
28 hundred ninety-six of the penal law, all parties to such agreement may
29 agree that the period of such bar may be for a period of up to ten years
30 from the date of conviction.
31 § 31. Subdivision 1-a of section 3 of the public officers law, as
32 added by section 31-b of subpart A of part H of chapter 55 of the laws
33 of 2014, is amended to read as follows:
34 1-a. (i) No person shall be capable of holding a civil office who
35 shall stand convicted of a felony defined in article two hundred or four
36 hundred ninety-six or section 195.20, 195.22, 195.25, or 195.27 of the
37 penal law.
38 (ii) Any individual who stands convicted of a misdemeanor defined in
39 article two hundred, article four hundred ninety-six or section 195.00
40 of the penal law may not hold civil office for a period of five years
41 from the date of conviction, provided that in the event such conviction
42 is the result of a plea agreement resulting in a plea to such charge in
43 lieu of a plea or conviction of a felony defined in section 195.20,
44 195.22, 195.25, or 195.27, article two hundred or article four hundred
45 ninety-six of the penal law, all parties to such agreement may agree
46 that the period of such bar may be for a period of up to ten years from
47 the date of conviction.
48 § 32. The opening paragraph and paragraph (i) of subdivision (b) of
49 section 139-a of the state finance law, as amended by section 30 of
50 subpart A of part H of chapter 55 of the laws of 2014, are amended to
51 read as follows:
52 upon the conviction of any person of a crime defined in article two
53 hundred or four hundred ninety-six or section 195.20, 195.22, 195.25, or
54 195.27 of the penal law,
55 (i) such person, and any firm, partnership or corporation of which [he
56 is] they are a member, partner, director or officer shall be disquali-
S. 8594 16
1 fied from thereafter selling to or submitting bids to or receiving
2 awards from or entering into any contracts with the state or any public
3 department, agency or official thereof, for goods, work or services, for
4 a period of five years after such refusal, a period of five years upon a
5 conviction of a misdemeanor defined in article two hundred or article
6 four hundred ninety-six or an attempt to commit a violation of section
7 195.20, 195.22, 195.25, or 195.27 of the penal law, provided that in the
8 event such conviction is the result of a plea agreement resulting in a
9 plea to such charge in lieu of a plea or conviction of a felony defined
10 in section 195.20, 195.22, 195.25, or 195.27, article two hundred or
11 article four hundred ninety-six of the penal law, all parties to such
12 agreement may agree that the period of such bar may be for a period of
13 up to ten years from the date of conviction, or upon conviction of a
14 felony defined in article two hundred or four hundred ninety-six or
15 section 195.20, 195.22, 195.25, or 195.27 of the penal law, for life,
16 any convicted firm, partnership or corporation is disqualified for its
17 existence and to provide also that
18 § 33. Subdivision 2 of section 139-b of the state finance law, as
19 added by section 31 of subpart A of part H of chapter 55 of the laws of
20 2014, is amended to read as follows:
21 2. Any person who stands convicted of a felony defined in article two
22 hundred or four hundred ninety-six or section 195.20, 195.22, 195.25, or
23 195.27 of the penal law, and any firm, partnership or corporation that
24 stands convicted of such crime shall be disqualified from thereafter
25 selling to or submitting bids to or receiving awards from or entering
26 into any contracts with the state or any public department, agency or
27 official thereof, for goods, work or services. In the event a person or
28 firm, partnership or corporation is so convicted, the office responsible
29 for prosecuting such offense shall send notice of such conviction to the
30 state commissioner of general services, and to the office of the state
31 comptroller and such appropriate departments, agencies and officials of
32 the state, political subdivisions thereof or public authorities with
33 whom the person or the firm, partnership or corporation is known to have
34 a contract.
35 § 34. Subdivision 1-a of section 139-c of the state finance law, as
36 added by section 31-a of subpart A of part H of chapter 55 of the laws
37 of 2014, is amended to read as follows:
38 1-a. Any firm, partnership, or corporation which has become subject to
39 the cancellation or termination of a contract or disqualification to
40 contract on account of conviction of a crime defined in article two
41 hundred or four hundred ninety-six or section 195.20, 195.22, 195.25, or
42 195.27 of the penal law, as provided in sections one hundred thirty-
43 nine-a and one hundred thirty-nine-b of this article, may, upon thirty
44 days' notice to the district attorney who conducted the action that led
45 to the conviction, and the office of the state comptroller commence a
46 special proceeding at a special term of the supreme court held within
47 the judicial district in which the conviction was obtained for an order
48 discontinuing such disqualification. The petition shall set forth the
49 grounds, including that the firm, partnership, or corporation has taken
50 sufficient actions to remove from responsibility officers and employees
51 who engaged in the actions that formed the basis of the conviction, that
52 the firm, partnership, or corporation has taken appropriate and suffi-
53 cient actions to ensure that the actions that formed the basis of the
54 conviction are unlikely to recur, and that it will not be in the public
55 interest to cancel or terminate petitioner's contracts or to continue
56 the disqualification, as provided in sections one hundred thirty-nine-a
S. 8594 17
1 and one hundred thirty-nine-b of this article; provided further, at any
2 time after such cancellation or disqualification any such firm, partner-
3 ship or corporation may apply to the supreme court, upon notice as
4 provided herein for an immediate termination of disqualification upon a
5 reversal of the conviction upon which the debarment was imposed.
6 § 35. Section 41 of the tax law, as added by section 36 of subpart A
7 of part H of chapter 55 of the laws of 2014, is amended to read as
8 follows:
9 § 41. Limitations on tax credit eligibility. Any taxpayer who stands
10 convicted, or who is a shareholder of an S corporation or partner in a
11 partnership which is convicted, of an offense defined in article two
12 hundred or four hundred ninety-six or section 195.20, 195.22, 195.25, or
13 195.27 of the penal law shall not be eligible for any tax credit allowed
14 under article nine, nine-A, thirty-two or thirty-three of this chapter
15 or any business tax credit allowed under article twenty-two of this
16 chapter. For purposes of this section, a business tax credit allowed
17 under article twenty-two of this chapter is a tax credit allowed to
18 taxpayers under article twenty-two which is substantially similar to a
19 tax credit allowed to taxpayers under article nine-A of this chapter. In
20 the event a person or firm, partnership or corporation is convicted of
21 an offense defined in article two hundred or four hundred ninety-six or
22 section 195.00 of the penal law, the office responsible for prosecuting
23 such offense shall send notice of such conviction, together with the
24 names of any firm, partnership or corporation of which the person is
25 known to be a member, partner, officer or director, to the commissioner.
26 § 36. This act shall take effect immediately.
