S 8594: Enacts the "securing customer assets against malfeasance" or "S.C.A.M." 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.