<STYLE><!--U {color: Green}S {color: RED} I {color: DARKBLUE; background-color:yellow} P.brk {page-break-before:always}--></STYLE> <BASEFONT SIZE=3> <PRE WIDTH="94"> <FONT SIZE=5><B> STATE OF NEW YORK</B></FONT> ________________________________________________________________________ 3382--A 2025-2026 Regular Sessions <FONT SIZE=5><B> IN ASSEMBLY</B></FONT> January 27, 2025 ___________ Introduced by M. of A. DINOWITZ -- read once and referred to the Commit- tee on Codes -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the penal law, in relation to the misappropriation of payroll funds <B><U>The People of the State of New York, represented in Senate and Assem-</U></B> <B><U>bly, do enact as follows:</U></B> 1 Section 1. The penal law is amended by adding a new section 165.80 to 2 read as follows: 3 <B><U>§ 165.80 Misappropriation of payroll funds.</U></B> 4 <B><U>A person is guilty of misappropriation of payroll funds when such</U></B> 5 <B><U>person knows that funds are designated for use as employee payroll funds</U></B> 6 <B><U>or as payment of payroll taxes, and intentionally prevents the funds</U></B> 7 <B><U>from being used for their designated purpose. A delayed transfer of</U></B> 8 <B><U>funds, in accordance with an agreement between a payroll processing</U></B> 9 <B><U>company and an employer for the purpose of investigating potentially</U></B> 10 <B><U>fraudulent or incorrect transactions, shall not constitute misappropri-</U></B> 11 <B><U>ation of payroll funds. A payroll processing company shall not be</U></B> 12 <B><U>responsible for an employer's failure to provide sufficient funds.</U></B> 13 <B><U>Misappropriation of payroll funds is a class E felony.</U></B> 14 § 2. This act shall take effect immediately. EXPLANATION--Matter in <B><U>italics</U></B> (underscored) is new; matter in brackets [<B><S> </S></B>] is old law to be omitted. LBD06028-02-5