Bill S2793-2011

Establishes a taxpayer abuse sanction to be imposed against the income of a public officer who commits a felony related to his or her service as a public officer

Establishes a taxpayer abuse sanction to be imposed against the income of a public officer who commits certain felonies related to his or her service as a public officer.

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  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 1, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S2793

TITLE OF BILL: An act to amend the tax law, in relation to creating a taxpayer abuse sanction, and to amend the state finance law, in relation to establishing the education taxpayer abuse penalty fund and the taxpayer abuse penalty fund

PURPOSE OR GENERAL IDEA OF BILL: To establish a taxpayer abuse sanction to be imposed against the income of a public employee who commits a felony related to his or her service as a public employee.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Amends the tax law by creating a new section 608 which establishes the taxpayer abuse sanction to be levied against any member of the public retirement system of the state who was convicted of grand larceny in the first degree, grand larceny in the second degree or scheme to defraud in the first degree where such conviction resulted from acts committed which related to the nature of such member's public service.

Section 2. Amends the state finance law by establishing the Education Taxpayer Abuse Penalty Fund and the Taxpayer Abuse Fund both of which are hereby established in the joint custody of the commissioner of taxation and finance and the comptroller. These funds shall serve the purpose of distributing money to a school district of municipality, of which a convicted person was employed, equal to the dollar amount of the sanction imposed upon a convicted person.

Section 3. Effective Date.

JUSTIFICATION: It is a privilege and an honor to be a member of the New York State Retirement System, and thus, its members must be held to the highest ethical standards. It is the belief of this legislation's sponsor, or sponsors, as well as a great many residents across New York State, that those who violate the public trust by using their positions to unlawfully enrich themselves with taxpayer money, or scheme to defraud the taxpayers they are supposed to serve, should not continue to receive benefits from the State of New York. New York State has enacted similar legislation in the past. section 632a of the Executive Law, more commonly known as the "Son of Sam" law, put restrictions on the income of criminals trying to profit from their crimes. This measure will achieve this goal, as well as provide additional protections to taxpayers by offering this stiff deterrent to those seek to abuse the system.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Potential increased revenue to the state resulting from any future sanction fees.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2010.


Text

STATE OF NEW YORK ________________________________________________________________________ 2793 2011-2012 Regular Sessions IN SENATE February 1, 2011 ___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to creating a taxpayer abuse sanction, and to amend the state finance law, in relation to estab- lishing the education taxpayer abuse penalty fund and the taxpayer abuse penalty fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 608 to read as follows: S 608. TAXPAYER ABUSE SANCTION. (A) FOR PURPOSES OF THIS SECTION, THE TERM "PUBLIC RETIREMENT SYSTEM OF THE STATE" SHALL MEAN THE NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM, THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE PENSION FUND, THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND, THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM AND ANY OTHER RETIREMENT SYSTEM OF THE STATE OR CITY OF NEW YORK. (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND ELEVEN, THERE SHALL BE A SANCTION IMPOSED AGAINST THE INCOME OF ANY MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE, WHO WAS CONVICTED OF: (1) GRAND LARCENY IN THE FIRST DEGREE PURSUANT TO SECTION 155.42 OF THE PENAL LAW; (2) GRAND LARCENY IN THE SECOND DEGREE PURSUANT TO SECTION 155.40 OF THE PENAL LAW; OR (3) SCHEME TO DEFRAUD IN THE FIRST DEGREE PURSUANT TO SECTION 190.65 OF THE PENAL LAW; WHERE SUCH CONVICTION WAS BASED UPON ACTS COMMITTED WHICH RELATED TO THE NATURE OF SUCH MEMBER'S PUBLIC SERVICE. (C) SUCH SANCTION SHALL BE IMPOSED FOR ANY TAXABLE YEAR DURING WHICH SUCH MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE IS ELIGIBLE TO
RECEIVE A PENSION BENEFIT AND SHALL BE IN AN AMOUNT EQUAL TO THE AMOUNT OF ANY SUCH BENEFIT RECEIVED DURING SUCH TAXABLE YEAR. (D) MONIES RECEIVED FROM SANCTIONS IMPOSED PURSUANT TO THIS SECTION SHALL: (1) FOR MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION OF A PERSON WHO IS A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM, THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM, BE DEPOSITED IN THE EDUCATION TAXPAYER ABUSE PENALTY FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-T OF THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT TO THE PROVISIONS OF SUCH SECTION; OR (2) FOR MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION OF A PERSON WHO IS A MEMBER OF THE NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE PENSION FUND, THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND, OR ANY OTHER RETIREMENT SYSTEM OF THE STATE OR CITY OF NEW YORK OTHER THAN A RETIREMENT SYSTEM SET FORTH IN PARAGRAPH ONE OF THIS SUBDIVISION, BE DEPOSITED IN THE TAXPAYER ABUSE PENALTY FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-U OF THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT TO THE PROVISIONS OF SUCH SECTION. S 2. The state finance law is amended by adding two new sections 99-t and 99-u to read as follows: S 99-T. EDUCATION TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "EDUCA- TION TAXPAYER ABUSE PENALTY FUND". 2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF SUBDIVISION (D) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND. 3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS IN THE STATE WHERE PERSONS SUBJECT TO THE PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW WERE EMPLOYED AT THE TIME OF THE COMMISSION OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION WAS BASED. THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO A SCHOOL DISTRICT PURSUANT TO THIS SUBDIVISION SHALL BE EQUAL TO THE DOLLAR AMOUNT OF THE SANCTION IMPOSED UPON SUCH CONVICTED PERSON. ANY MONEYS RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANCTION IMPOSED PURSU- ANT TO THE PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW SHALL BE DISTRIBUTED EQUALLY AMONG SCHOOL DISTRICTS LOCATED IN THE STATE. 4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMIS- SIONER OF TAXATION AND FINANCE. 5. TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS AT LEAST ONCE ANNUALLY. S 99-U. TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "TAXPAYER ABUSE PENALTY FUND". 2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF PARAGRAPH TWO OF SUBDIVISION (D) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND. 3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO MUNICIPALITIES IN THE STATE WHERE PERSONS SUBJECT TO THE PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW WERE EMPLOYED AT THE TIME OF THE COMMISSION OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION WAS BASED OR TO THE STATE IF SUCH PERSON WAS EMPLOYED BY THE STATE. THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO A MUNICIPALITY OR TO THE STATE PURSUANT TO THIS SUBDIVISION SHALL BE EQUAL TO THE DOLLAR AMOUNT OF THE SANCTION IMPOSED UPON SUCH CONVICTED PERSON. ANY MONEYS RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANCTION IMPOSED PURSUANT TO THE PROVISIONS OF SUBDIVISION (B) OF SECTION SIX HUNDRED EIGHT OF THE TAX LAW SHALL BE DISTRIBUTED EQUALLY AMONG MUNICIPALITIES LOCATED IN THE STATE. 4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMIS- SIONER OF TAXATION AND FINANCE. 5. TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE DISTRIBUTED TO MUNICIPALITIES AT LEAST ONCE ANNUALLY. S 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2011.

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