S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5578
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 14, 2015
                                      ___________
       Introduced  by  Sen.  AVELLA -- 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  establishing  certain
         offenses  relating to structuring, money laundering and defrauding the
         government; to amend the tax law, in relation to eliminating the  one-
         year  time  requirement  for  aggregation  payments and in relation to
         disclosure of certain tax returns to a grand jury; and  to  amend  the
         criminal  procedure  law,  in relation to geographical jurisdiction of
         offenses
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Section 470.00 of the penal law is amended by adding three
    2  new subdivisions 11, 12 and 13 to read as follows:
    3    11. "STRUCTURES" FOR PURPOSES OF SECTIONS 470.30 AND  470.31  OF  THIS
    4  ARTICLE,  A  PERSON  STRUCTURES  A  TRANSACTION WHEN, WITH THE INTENT TO
    5  EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANKING LAW  OR
    6  31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION PRESCRIBED THEREUNDER,
    7  HE  OR  SHE  CONDUCTS  OR ATTEMPTS TO CONDUCT ONE OR MORE RELATED TRANS-
    8  ACTIONS IN CURRENCY, IN ANY AMOUNT, WITH ONE OR  MORE  FINANCIAL  INSTI-
    9  TUTIONS,  ON  ONE OR MORE DAYS. STRUCTURING INCLUDES, BUT IS NOT LIMITED
   10  TO, THE BREAKING DOWN OF A SINGLE SUM OF CURRENCY EXCEEDING TEN THOUSAND
   11  DOLLARS INTO SMALLER SUMS, INCLUDING  SUMS  AT  OR  BELOW  TEN  THOUSAND
   12  DOLLARS,  OR  THE CONDUCT OF A TRANSACTION, OR SERIES OF CURRENCY TRANS-
   13  ACTIONS, INCLUDING TRANSACTIONS AT OR BELOW TEN  THOUSAND  DOLLARS.  THE
   14  TRANSACTION  OR  TRANSACTIONS  NEED  NOT  EXCEED THE TEN THOUSAND DOLLAR
   15  REPORTING THRESHOLD AT ANY SINGLE FINANCIAL INSTITUTION OR ON ANY SINGLE
   16  DAY IN ORDER TO CONSTITUTE STRUCTURING.
   17    12. "MONETARY  TRANSACTION"  MEANS  A  DEPOSIT,  WITHDRAWAL,  TRANSFER
   18  BETWEEN  ACCOUNTS,  EXCHANGE  OF  CURRENCY,  LOAN,  EXTENSION OF CREDIT,
   19  PURCHASE OR SALE OF ANY STOCK, BOND, CERTIFICATE OF  DEPOSIT,  OR  OTHER
   20  MONETARY  INSTRUMENT,  USE  OF A SAFE DEPOSIT BOX, OR ANY OTHER PAYMENT,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11108-01-5
       S. 5578                             2
    1  TRANSFER, OR DELIVERY BY, THROUGH, OR TO  A  FINANCIAL  INSTITUTION,  BY
    2  WHATEVER  MEANS  EFFECTED,  EXCEPT THAT "MONETARY TRANSACTION" SHALL NOT
    3  INCLUDE ANY TRANSACTION INVOLVING BONA FIDE PAYMENTS  TO  ATTORNEYS  FOR
    4  LEGAL SERVICES.
    5    13. "PROPERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT" MEANS ANY PROP-
    6  ERTY  CONSTITUTING,  OR  DERIVED  FROM,  PROCEEDS  OF SPECIFIED CRIMINAL
    7  CONDUCT, AND NEED NOT EXCLUSIVELY CONSTITUTE OR BE DERIVED FROM PROCEEDS
    8  OF SPECIFIED CRIMINAL CONDUCT.
    9    S 2. The penal law is amended by  adding  four  new  sections  470.30,
   10  470.31, 470.32 and 470.33 to read as follows:
   11  S 470.30 STRUCTURING IN THE SECOND DEGREE.
   12    A  PERSON IS GUILTY OF STRUCTURING IN THE SECOND DEGREE WHEN, WITH THE
   13  INTENT TO EVADE ANY REPORTING REQUIREMENT UNDER THE NEW YORK STATE BANK-
   14  ING LAW OR 31 U.S.C. SS 5311 THROUGH 5326, OR ANY REGULATION  PRESCRIBED
   15  THEREUNDER, HE OR SHE STRUCTURES ONE OR MORE TRANSACTIONS.
   16    STRUCTURING IN THE SECOND DEGREE IS A CLASS E FELONY.
   17  S 470.31 STRUCTURING IN THE FIRST DEGREE.
   18    A  PERSON  IS GUILTY OF STRUCTURING IN THE FIRST DEGREE WHEN HE OR SHE
   19  COMMITS THE CRIME OF STRUCTURING IN  THE  SECOND  DEGREE  AND:  (1)  THE
   20  CONDUCT IS COMMITTED WITH AN INTENT TO COMMIT ANOTHER CRIME OR TO AID OR
   21  CONCEAL  THE  COMMISSION OF ANOTHER CRIME; OR (2) THE AGGREGATE VALUE OF
   22  THE CURRENCY REPORTED OR THE CURRENCY THAT  SHOULD  HAVE  BEEN  REPORTED
   23  EXCEEDS ONE HUNDRED THOUSAND DOLLARS IN ANY TWELVE-MONTH PERIOD.
   24    STRUCTURING IN THE FIRST DEGREE IS A CLASS D FELONY.
   25  S 470.32 CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE.
   26    A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
   27  THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO ENGAGE
   28  IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
   29  A VALUE GREATER THAN TWENTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
   30  FROM SPECIFIED CRIMINAL CONDUCT.
   31    CRIMINAL MONETARY TRANSACTION IN THE SECOND DEGREE IS A CLASS E  FELO-
   32  NY.
   33  S 470.33 CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE.
   34    A  PERSON  IS GUILTY OF ENGAGING IN A CRIMINAL MONETARY TRANSACTION IN
   35  THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY ENGAGES OR ATTEMPTS TO  ENGAGE
   36  IN A MONETARY TRANSACTION IN PROPERTY DERIVED FROM CRIMINAL CONDUCT WITH
   37  A  VALUE GREATER THAN SIXTY THOUSAND DOLLARS AND THE PROPERTY IS DERIVED
   38  FROM SPECIFIED CRIMINAL CONDUCT.
   39    CRIMINAL MONETARY TRANSACTION IN THE FIRST DEGREE IS A CLASS D FELONY.
   40    S 3. Subdivision 3 of section 470.03 of the penal law, as  amended  by
   41  section  17  of  part  A of chapter 1 of the laws of 2004, is amended to
   42  read as follows:
   43    3. FOR PURPOSES OF SECTIONS 470.32 AND 470.33 OF THIS  ARTICLE,  MONE-
   44  TARY  TRANSACTIONS MAY BE CONSIDERED TOGETHER AND THE VALUE OF THE PROP-
   45  ERTY DERIVED FROM SPECIFIED CRIMINAL CONDUCT MAY BE AGGREGATED, PROVIDED
   46  THAT THE MONETARY TRANSACTIONS ARE ALL PART OF A SINGLE "CRIMINAL TRANS-
   47  ACTION" AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF  THE  CRIMINAL
   48  PROCEDURE LAW.
   49    4.  Nothing  in  sections  470.05,  470.21, 470.22, 470.23 and 470.24;
   50  paragraph (b) of subdivision one, paragraph (b) of subdivision  two  and
   51  paragraph  (b)  of subdivision three of section 470.10; paragraph (b) of
   52  subdivision one, paragraph (b) of subdivision two and paragraph  (b)  of
   53  subdivision  three  of section 470.15; [or] paragraph (b) of subdivision
   54  one and paragraph (b) of subdivision two of section 470.20;  OR  SECTION
   55  470.32  OR  SECTION  470.33  of  this  article shall make it unlawful to
   56  return funds held in escrow:
       S. 5578                             3
    1    (a) as a portion of a purchase price for real property pursuant  to  a
    2  contract of sale; or
    3    (b)  to  satisfy the tax or other lawful obligations arising out of an
    4  administrative or judicial proceeding concerning the person who provided
    5  the escrow funds.
    6    S 4. Section 470.25 of the penal law, as amended by chapter 489 of the
    7  laws of 2000, is amended to read as follows:
    8  S 470.25 Money laundering AND CRIMINAL MONETARY TRANSACTIONS; fines.
    9    1. Any person convicted of a  violation  of  section  470.05,  470.10,
   10  470.15,  or 470.20 of this article may be sentenced to pay a fine not in
   11  excess of two times the value of the monetary instruments which are  the
   12  proceeds of specified criminal activity. When a fine is imposed pursuant
   13  to  this  subdivision, the court shall make a finding as to the value of
   14  such monetary instrument or instruments. If the record does not  contain
   15  sufficient  evidence  to  support such a finding the court may conduct a
   16  hearing upon the issue. In imposing a fine, the court shall consider the
   17  seriousness of the conduct, whether the amount of the fine is dispropor-
   18  tionate to the conduct in which he engaged, its impact  on  victims,  as
   19  well  as  the  economic circumstances of the convicted person, including
   20  the effect of the imposition of such a fine upon his immediate family.
   21    2. ANY PERSON CONVICTED OF A VIOLATION OF SECTION 470.32 OR 470.33  OF
   22  THIS  ARTICLE  MAY BE SENTENCED TO PAY A FINE NOT IN EXCESS OF TWO TIMES
   23  THE VALUE OF THE MONETARY TRANSACTION WHICH IS THE PROCEEDS OF SPECIFIED
   24  CRIMINAL CONDUCT. WHEN A FINE IS IMPOSED PURSUANT TO  THIS  SUBDIVISION,
   25  THE  COURT  SHALL MAKE A FINDING AS TO THE VALUE OF SUCH MONETARY TRANS-
   26  ACTION. IF THE RECORD DOES NOT CONTAIN SUFFICIENT  EVIDENCE  TO  SUPPORT
   27  SUCH A FINDING THE COURT MAY CONDUCT A HEARING UPON THE ISSUE. IN IMPOS-
   28  ING  A  FINE,  THE  COURT SHALL CONSIDER THE SERIOUSNESS OF THE CONDUCT,
   29  WHETHER THE AMOUNT OF THE FINE IS DISPROPORTIONATE  TO  THE  CONDUCT  IN
   30  WHICH HE ENGAGED, ITS IMPACT ON VICTIMS, AS WELL AS THE ECONOMIC CIRCUM-
   31  STANCES  OF THE CONVICTED PERSON, INCLUDING THE EFFECT OF THE IMPOSITION
   32  OF SUCH A FINE UPON HIS IMMEDIATE FAMILY.
   33    3. The imposition of a  fine  pursuant  to  subdivision  one  of  this
   34  section or paragraph b of subdivision one of section 80.00 of this chap-
   35  ter,  shall  preclude  the  imposition of any other order or judgment of
   36  forfeiture or fine based upon the same criminal conduct.
   37    S 5. Paragraph (a) of subdivision 1 of section  460.10  of  the  penal
   38  law, as amended by chapter 37 of the laws of 2014, is amended to read as
   39  follows:
   40    (a)  Any  of  the felonies set forth in this chapter: sections 120.05,
   41  120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
   42  ing to strangulation; sections 125.10 to 125.27  relating  to  homicide;
   43  sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
   44  135.25  relating  to  kidnapping; section 135.35 relating to labor traf-
   45  ficking; section 135.65 relating to coercion;  sections  140.20,  140.25
   46  and  140.30  relating  to  burglary;  sections 145.05, 145.10 and 145.12
   47  relating to criminal mischief; article one  hundred  fifty  relating  to
   48  arson;  sections  155.30,  155.35,  155.40  and 155.42 relating to grand
   49  larceny; sections 177.10, 177.15, 177.20 and 177.25 relating  to  health
   50  care  fraud;  article  one  hundred  sixty relating to robbery; sections
   51  165.45, 165.50, 165.52 and 165.54 relating  to  criminal  possession  of
   52  stolen  property; sections 165.72 and 165.73 relating to trademark coun-
   53  terfeiting; sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65  and
   54  170.70  relating to forgery; sections 175.10, 175.25, 175.35, 175.40 and
   55  210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
   56  176.30 relating to insurance fraud; sections 178.20 and 178.25  relating
       S. 5578                             4
    1  to  criminal  diversion  of  prescription medications and prescriptions;
    2  sections 180.03, 180.08, 180.15, 180.25, 180.40, 180.45, 200.00, 200.03,
    3  200.04, 200.10, 200.11, 200.12, 200.20, 200.22, 200.25, 200.27,  200.56,
    4  215.00,  215.05 and 215.19 RELATING TO BRIBERY; sections 187.10, 187.15,
    5  187.20 and 187.25  relating  to  residential  mortgage  fraud,  sections
    6  190.40 and 190.42 relating to criminal usury; section 190.65 relating to
    7  schemes  to  defraud; any felony defined in article four hundred ninety-
    8  six; sections 205.60  and  205.65  relating  to  hindering  prosecution;
    9  sections  210.10,  210.15,  and 215.51 relating to perjury and contempt;
   10  section 215.40 relating to tampering with  physical  evidence;  sections
   11  220.06,  220.09, 220.16, 220.18, 220.21, 220.31, 220.34, 220.39, 220.41,
   12  220.43, 220.46, 220.55, 220.60, 220.65 and 220.77 relating to controlled
   13  substances; sections 225.10 and 225.20 relating  to  gambling;  sections
   14  230.25,  230.30,  and 230.32 relating to promoting prostitution; section
   15  230.34 relating to sex trafficking; sections 235.06, 235.07, 235.21  and
   16  235.22  relating  to  obscenity;  sections 263.10 and 263.15 relating to
   17  promoting a sexual performance by  a  child;  sections  265.02,  265.03,
   18  265.04,  265.11,  265.12,  265.13  and  the provisions of section 265.10
   19  which constitute a felony relating to firearms and other dangerous weap-
   20  ons; sections 265.14 and 265.16 relating to criminal sale of a  firearm;
   21  section  275.10,  275.20,  275.30,  or  275.40  relating to unauthorized
   22  recordings; and sections 470.05, 470.10, 470.15 and 470.20  relating  to
   23  money  laundering;  SECTIONS  470.30 AND 470.31 RELATING TO STRUCTURING;
   24  AND SECTIONS 470.32 AND 470.33  RELATING  TO  CRIMINAL  MONETARY  TRANS-
   25  ACTIONS; or
   26    S  6.  Section 195.20 of the penal law, as amended by chapter 1 of the
   27  laws of 2010, is amended to read as follows:
   28  S 195.20 Defrauding the government IN THE FOURTH DEGREE.
   29    A person is guilty of defrauding the government IN THE  FOURTH  DEGREE
   30  when[, being a public servant or party officer,] he or she:
   31    (a)  engages  in  a scheme constituting a systematic ongoing course of
   32  conduct with intent to:
   33    (i) defraud the state or a political subdivision of  the  state  or  a
   34  governmental  instrumentality  within  the  state or to obtain property,
   35  services or other resources from the state or a political subdivision of
   36  the state or a governmental instrumentality within the state by false or
   37  fraudulent pretenses, representations or promises; or
   38    (ii) defraud the state or a political subdivision of the  state  or  a
   39  governmental instrumentality within the state by making use of property,
   40  services  or  resources of the state, political subdivision of the state
   41  or a governmental instrumentality within the state for private  business
   42  purposes or other compensated non-governmental purposes; [and] OR
   43    (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
   44  PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
   45  OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
   46  REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
   47  UTION,  OR FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A POLITICAL
   48  SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION  OR  MUNICIPAL
   49  CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   50    (b) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
   51  OF  SUBDIVISION  (A)  OF  THIS SECTION, so obtains property, services or
   52  other resources with a value in excess of one thousand dollars from such
   53  state, political subdivision or governmental instrumentality, OR
   54    (II) WITH RESPECT TO AN  OFFENSE  CHARGED  UNDER  PARAGRAPH  (III)  OF
   55  SUBDIVISION  (A)  OF  THIS  SECTION,  THE AGGREGATE UNPAID TAX, PREMIUM,
   56  CONTRIBUTION OR FEE OWED EXCEEDS ONE THOUSAND DOLLARS.
       S. 5578                             5
    1    Defrauding the government IN THE FOURTH DEGREE is a class E felony.
    2    S  7.  The  penal  law  is amended by adding three new section 195.22,
    3  195.25 and 195.27 to read as follows:
    4  S 195.22 DEFRAUDING THE GOVERNMENT IN THE THIRD DEGREE.
    5    A PERSON IS GUILTY OF DEFRAUDING THE GOVERNMENT IN  THE  THIRD  DEGREE
    6  WHEN HE OR SHE:
    7    (A)  ENGAGES  IN  A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF
    8  CONDUCT WITH INTENT TO:
    9    (I) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF  THE  STATE  OR  A
   10  GOVERNMENTAL  INSTRUMENTALITY  WITHIN  THE  STATE OR TO OBTAIN PROPERTY,
   11  SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
   12  THE STATE OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
   13  FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   14    (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
   15  GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
   16  SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
   17  OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
   18  PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   19    (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
   20  PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
   21  OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
   22  REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
   23  UTION,  OR FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A POLITICAL
   24  SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION  OR  MUNICIPAL
   25  CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   26    (B) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
   27  OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
   28  OTHER RESOURCES WITH A VALUE IN EXCESS OF TEN THOUSAND DOLLARS FROM SUCH
   29  STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL  INSTRUMENTALITY,  OR  (II)
   30  WITH  RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (III) OF SUBDIVISION
   31  (A) OF THIS SECTION, THE AGGREGATE UNPAID TAX, PREMIUM, CONTRIBUTION, OR
   32  FEE OWED EXCEEDS TEN THOUSAND DOLLARS.
   33    DEFRAUDING THE GOVERNMENT IN THE THIRD DEGREE IS A CLASS D FELONY.
   34  S 195.25 DEFRAUDING THE GOVERNMENT IN THE SECOND DEGREE.
   35    A PERSON IS GUILTY OF DEFRAUDING THE GOVERNMENT IN THE  SECOND  DEGREE
   36  WHEN HE OR SHE:
   37    (A)  ENGAGES  IN  A SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF
   38  CONDUCT WITH INTENT TO:
   39    (I) DEFRAUD THE STATE OR A  POLITICAL  SUBDIVISION  OF  THE  STATE  OR
   40  GOVERNMENTAL  INSTRUMENTALITY  WITHIN  THE  STATE OR TO OBTAIN PROPERTY,
   41  SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
   42  THE STATE OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
   43  FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   44    (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
   45  GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
   46  SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
   47  OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
   48  PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   49    (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
   50  PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
   51  OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
   52  REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
   53  UTION, OR FEE, OR ANY PORTION THEREOF, OWNED TO THE STATE OR A POLITICAL
   54  SUBDIVISION,  PUBLIC  AUTHORITY, PUBLIC BENEFIT CORPORATION OR MUNICIPAL
   55  CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
       S. 5578                             6
    1    (B)(I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR  (II)
    2  OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
    3  OTHER RESOURCES WITH A VALUE IN EXCESS OF TWENTY-FIVE  THOUSAND  DOLLARS
    4  FROM  SUCH STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL INSTRUMENTALITY,
    5  OR  (II)  WITH  RESPECT  TO  AN OFFENSE CHARGED UNDER PARAGRAPH (III) OF
    6  SUBDIVISION (A) OF THIS SECTION,  THE  AGGREGATE  UNPAID  TAX,  PREMIUM,
    7  CONTRIBUTION, OR FEE OWED EXCEEDS TWENTY-FIVE THOUSAND DOLLARS.
    8    DEFRAUDING THE GOVERNMENT IN THE SECOND DEGREE IS A CLASS C FELONY.
    9  S 195.27 DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE.
   10    A  PERSON  IS  GUILTY OF DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE
   11  WHEN HE OR SHE:
   12    (A) ENGAGES IN A SCHEME CONSTITUTING A SYSTEMATIC  ONGOING  COURSE  OF
   13  CONDUCT WITH INTENT TO:
   14    (I)  DEFRAUD  THE  STATE  OR A POLITICAL SUBDIVISION OF THE STATE OR A
   15  GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE  OR  TO  OBTAIN  PROPERTY,
   16  SERVICES OR OTHER RESOURCES FROM THE STATE OR A POLITICAL SUBDIVISION OF
   17  THE  STATE  OR GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY FALSE OR
   18  FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES; OR
   19    (II) DEFRAUD THE STATE OR A POLITICAL SUBDIVISION OF THE  STATE  OR  A
   20  GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE BY MAKING USE OF PROPERTY,
   21  SERVICES  OR  RESOURCES OF THE STATE, POLITICAL SUBDIVISION OF THE STATE
   22  OR A GOVERNMENTAL INSTRUMENTALITY WITHIN THE STATE FOR PRIVATE  BUSINESS
   23  PURPOSES OR OTHER COMPENSATED NON-GOVERNMENTAL PURPOSES; OR
   24    (III)  DEFRAUD  THE STATE OR A POLITICAL SUBDIVISION OF THE STATE OR A
   25  PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, OR  MUNICIPAL  CORPORATION
   26  OF  THE  STATE,  OR ANY INSTRUMENTALITY THEREOF, OF ONE OR MORE FORMS OF
   27  REVENUE, AND SO EVADES PAYMENT OF ANY TAX, INSURANCE  PREMIUM,  CONTRIB-
   28  UTION  OR  FEE, OR ANY PORTION THEREOF, OWED TO THE STATE OR A POLITICAL
   29  SUBDIVISION, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION  OR  MUNICIPAL
   30  CORPORATION OF THE STATE OR ANY INSTRUMENTALITY THEREOF, AND
   31    (B) (I) WITH RESPECT TO AN OFFENSE CHARGED UNDER PARAGRAPH (I) OR (II)
   32  OF  SUBDIVISION  (A)  OF  THIS SECTION, SO OBTAINS PROPERTY, SERVICES OR
   33  OTHER RESOURCES WITH A VALUE IN EXCESS OF  TWO  HUNDRED  FIFTY  THOUSAND
   34  DOLLARS  FROM  SUCH STATE, POLITICAL SUBDIVISION OR GOVERNMENTAL INSTRU-
   35  MENTALITY, OR (II) WITH RESPECT TO AN OFFENSE  CHARGED  UNDER  PARAGRAPH
   36  (III)  OF  SUBDIVISION  (A)  OF  THIS SECTION, THE AGGREGATE UNPAID TAX,
   37  PREMIUM, CONTRIBUTION OR FEE OWED EXCEEDS  TWO  HUNDRED  FIFTY  THOUSAND
   38  DOLLARS.
   39    DEFRAUDING THE GOVERNMENT IN THE FIRST DEGREE IS A CLASS B FELONY.
   40    S 8. Section 1807 of the tax law, as amended by section 5 of subpart A
   41  of  part  S  of  chapter  57  of the laws of 2010, is amended to read as
   42  follows:
   43    S 1807. Aggregation. For purposes of this article,  the  payments  due
   44  and not paid under a single article of this chapter pursuant to a common
   45  scheme or plan or due and not paid, [within one year,] may be charged in
   46  a  single  count,  and  the  amount of underpaid tax liability incurred,
   47  within one year, may be aggregated in a single count.
   48    S 9. Subsection (e) of section 697 of the tax law is amended by adding
   49  a new paragraph (3-b) to read as follows:
   50    (3-B)  NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH  ONE  OF   THIS
   51  SUBSECTION,  OR ANY OTHER LAW TO THE CONTRARY, AN OFFICER OR EMPLOYEE OF
   52  THE DEPARTMENT SO  DESIGNATED  BY  THE  COMMISSIONER  MAY  DISCLOSE  TAX
   53  RETURNS  OR TAX RETURN INFORMATION IN RESPONSE TO A SUBPOENA DUCES TECUM
   54  ISSUED BY A GRAND JURY PURSUANT  TO  THE  CRIMINAL  PROCEDURE  LAW  DULY
   55  SERVED  UPON  THE  DEPARTMENT  AND AN ORDER OF THE COURT THAT EMPANELLED
   56  SUCH GRAND JURY DETERMINING, BASED ON A  WRITTEN  APPLICATION  SUBMITTED
       S. 5578                             7
    1  UNDER OATH OR PENALTY OF PERJURY, THAT: (I) THERE IS REASONABLE CAUSE TO
    2  BELIEVE, BASED UPON INFORMATION BELIEVED TO BE RELIABLE, THAT A SPECIFIC
    3  CRIMINAL  ACT  HAS  BEEN  COMMITTED;  (II)  THERE IS REASONABLE CAUSE TO
    4  BELIEVE  THAT  THE RETURN OR RETURN OF INFORMATION IS OR MAY BE RELEVANT
    5  TO A MATTER RELATING TO THE COMMISSION OF SUCH ACT; AND (III) THE RETURN
    6  OR RETURN OF INFORMATION IS SOUGHT EXCLUSIVELY FOR  USE  IN  A  CRIMINAL
    7  INVESTIGATION  OR  PROCEEDING  CONCERNING  SUCH ACT, AND THE INFORMATION
    8  SOUGHT TO BE DISCLOSED CANNOT REASONABLY BE OBTAINED, UNDER THE  CIRCUM-
    9  STANCES, FROM ANOTHER SOURCE.
   10    S  10. Paragraph (c) of subdivision 2 of section 20.40 of the criminal
   11  procedure law is amended to read as follows:
   12    (c) Such conduct had, or was likely to have, a particular effect  upon
   13  such  county  or  a  political  subdivision  or  part  thereof, [and was
   14  performed with intent that it would, or with knowledge that it was like-
   15  ly to, have such particular effect therein] OR ON A CITY OF  WHICH  SUCH
   16  COUNTY  IS A PART, WHETHER OR NOT SUCH CONDUCT ALSO HAD EFFECTS ON OTHER
   17  COUNTIES OR ON THE STATE AS A WHOLE; PROVIDED THAT, IF SUCH CONDUCT  HAD
   18  OR  WAS LIKELY TO HAVE SUCH PARTICULAR EFFECT UPON THE STATE AS A WHOLE,
   19  THEN THERE SHALL BE PROPER JURISDICTION IN THE COUNTY OF ALBANY IN ADDI-
   20  TION TO ANY COUNTIES PARTICULARLY AFFECTED; or
   21    S 11. This act shall  take  effect  on  the  first  of  November  next
   22  succeeding the date on which it shall have become a law.