STATE OF NEW YORK
________________________________________________________________________
556
2023-2024 Regular Sessions
IN SENATE
January 5, 2023
___________
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to the liability of a
person who makes or uses a false record or statement material to an
obligation to pay money to the state or a local government under the
tax law, or who conceals or improperly avoids or decreases an obli-
gation to pay money to the state or a local government under the tax
law
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 189 of the state finance law is amended by adding a
2 new subdivision 1-a to read as follows:
3 1-a. Any person who, in accordance with the criteria set forth in
4 subdivision four of this section:
5 (a) makes, uses, or causes to be made or used, a false record or
6 statement material to their own obligation to pay money to the state or
7 a local government under the tax law, or an obligation of a subsidiary,
8 partnership, corporation or entity that they control; or
9 (b) conceals or improperly avoids or decreases their own obligation to
10 pay money to the state or a local government under the tax law, or an
11 obligation of a subsidiary, partnership, corporation or entity that they
12 control; shall be liable for damages, including consequential damages,
13 which the state or local government sustains because of the act of that
14 person. For purposes of this section, consequential damages includes
15 interest owed pursuant to the tax law.
16 § 2. Paragraph (b) of subdivision 3 of section 188 of the state
17 finance law, as amended by chapter 379 of the laws of 2010, is amended
18 to read as follows:
19 (b) require no proof of specific intent to defraud, provided, however
20 that acts occurring by mistake or as a result of mere negligence are not
21 covered by this [article] definition.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02574-01-3
S. 556 2
1 § 3. Paragraph (a) of subdivision 4 of section 189 of the state
2 finance law, as amended by section 8 of part A of chapter 56 of the laws
3 of 2013, is amended to read as follows:
4 (a) This section shall apply to claims, records, [or] statements or
5 obligations made under the tax law only if (i) the net income or sales
6 of the person against whom the action is brought equals or exceeds one
7 million dollars for any taxable year subject to any action brought
8 pursuant to this article; (ii) the damages pleaded in such action exceed
9 three hundred and fifty thousand dollars; and (iii) the person is
10 alleged to have violated paragraph (a), (b), (c), (d), (e), (f) or (g)
11 of subdivision one of this section; provided, however, that nothing in
12 this subparagraph shall be deemed to modify or restrict the application
13 of such paragraphs to any act alleged that relates to a violation of the
14 tax law.
15 § 4. This act shall take effect immediately and shall apply to all
16 false claims, records, statements and obligations concealed, avoided or
17 decreased on, prior to, or after such effective date.