What's happening
This bill creates the crime of theft by failure to make required disposition of funds received, making it a class A misdemeanor.
Why it matters
Targets specific misuse of funds. The bill closes a legal gap by criminalizing situations where someone receives money or property with a clear legal obligation to pass it along or use it in a specified way, but instead intentionally treats it as their own and fails to fulfill that obligation—even if the original property can't be traced.
Holds government and bank employees to a higher standard. Officers or employees of government entities or financial institutions are presumed to know their legal duties and are presumed to have misused funds if they cannot account for them on demand or if audits show shortages or falsified accounts, making it easier to prosecute insider theft.
Protects victims even when funds are commingled. The law applies even if the specific funds or property cannot be identified at the time of failure, recognizing the reality that stolen assets are often mixed with other resources, which makes traditional theft statutes hard to enforce.
Creates a deterrent for mishandling entrusted money. By making this conduct a class A misdemeanor, the bill sends a clear message to individuals and employees trusted with funds that intentional failure to fulfill legal financial obligations is a prosecutable crime, potentially reducing instances of embezzlement or misappropriation.
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Who cares
People entrusted with property for required payments
They could face a class A misdemeanor for intentionally treating that property as their own and failing to make the required payment or disposition.
Government and financial institution officers and employees
They would face presumptions that they know relevant legal obligations and have treated property as their own when specified accounting failures occur.
Victims owed payments or property
The proposed crime would apply even when particular property cannot be identified as belonging to them at the time of the failure.
Prosecutors
The bill would create a new theft charge and establish evidentiary presumptions involving failures to pay or account upon lawful demand, audit shortages or falsified accounts.
Headline styles
Make Fund Misuse a Crime
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Enacting clause stricken
- Referred to codes
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2555
2017-2018 Regular Sessions
IN ASSEMBLY
January 20, 2017
Introduced by M. of A. BRINDISI, McDONALD -- read once and referred to the Committee on Codes
AN ACT to amend the penal law, in relation to establishing the crime of theft by failure to make required disposition of funds received
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The penal law is amended by adding a new section 165.18 to read as follows: § 165.18 Theft by failure to make required disposition of funds
received.
1. A person is guilty of theft by failure to make required disposition of funds received when he or she obtains property upon agreement, or subject to a known legal obligation, to make specified payments or other disposition, whether from such property or its proceeds or from his own property to be reserved in equivalent amount and he or she intentionally deals with the property obtained as his or her own and fails to make the required payment or disposition. Theft by failure to make required disposition of funds received applies notwithstanding that it may be impossible to identify particular property as belonging to the victim at the time of the failure of the actor to make the required payment or disposition.
2. An officer or employee of the government or of a financial institution is presumed:
(a) to know any legal obligation relevant to his or her criminal liability under this section; and
(b) to have dealt with the property as his or her own if he or she fails to pay or account upon lawful demand, or if an audit reveals a shortage or falsification of accounts.
Theft by failure to make required disposition of funds received is a class A misdemeanor.
§ 2. This act shall take effect on the first of November next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02061-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.