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 situations where someone receives money or property with a legal obligation to use it for a specific purpose but instead uses it for themselves. this could include contractors, employees, or anyone entrusted with funds for another.
Makes it easier to prosecute theft even if the specific property or money can't be traced to the victim at the time of the offense. , addressing common defenses where funds are commingled or not directly identifiable.
Creates legal presumptions for government and financial institution employees/officers. , making them automatically presumed to know their duties and potentially guilty if shortages or falsifications are found, increasing accountability in positions of public trust.
Could affect a broad range of everyday transactions and business practices in New York. , encouraging more careful handling of client or customer funds and clear record-keeping to avoid criminal liability.
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Who cares
Headline styles
Criminalize Fund Misuse
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to codes
- Referred to codes
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Criminalize Fund Misuse
In Senate Committee · Codes · Sponsor Joseph A. Griffo
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6478
2017-2018 Regular Sessions
IN ASSEMBLY
March 7, 2017
Introduced by M. of A. BRINDISI -- 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 immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02061-02-7
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.