Bill Memo Pol & Penal Code 12.7.09

NEW YORK STATE SENATE INTRODUCER'S MEMORANDUM IN SUPPORT submitted in accordance with Senate Rule VI, Sec. 1

( X ) Memo on original bill ( ) Memo on amended bill

SENATE BILL #: S. ASSEMBLY BILL #: A. SENATE SPONSOR(S): Squadron & Schneiderman ASSEMBLY SPONSOR(S): TITLE: An Act to amend the public officers law, in relation to prohibiting the use by certain public officers and employees of property, services or other resources of the state for private business or other compensated non-governmental purposes; and to amend the penal law, in relation to defrauding the government. PURPOSE: To prohibit certain public officers and state government employees from using or obtaining state property, services or other resources of greater than nominal value for private business or other compensated non-governmental purposes, and from defrauding the government through a systematic and ongoing scheme to use state property, services or other resources for private business or other compensated non-governmental purposes that deprives the government of $1,000 or more. SUMMARY OF PROVISIONS: Section 1 amends subdivision 3(d) of section 74 of the public officers law to prohibit public officers from misappropriating, for themselves or others, state property, services or other resources of greater than nominal value for private business or other compensated nongovernmental purposes. Section 2 amends section 195.20(a) of the penal law by creating three subdivisions, including subdivision (iii), which defines defrauding the government as engaging in a systematic and ongoing scheme to defraud the state by using state property, services or other resources for private business or other compensated non-governmental purposes, which deprives the government of property valued at one thousand dollars or more.

JUSTIFICATION: There is currently a gap in state law, which does not explicitly prohibit mixing state business and private business. This bill would clarify state law by explicitly banning individuals from using government property, services or other resources for private business purposes. In addition to adding explicit language to the Code of Ethics in the Public Officers Law, the bill would also clarify the Penal Law’s definition of defrauding the government to include an ongoing and systematic scheme to use government property, including personnel and other resources, for private business purposes. In order to qualify as an offense under this section, the scheme would also have to result in the state being deprived of at least $1000 worth of property, services or other resources. LEGISLATIVE HISTORY: New bill. FISCAL IMPLICATIONS: None. LOCAL FISCAL IMPLICATIONS: None. EFFECTIVE DATE: Immediately.

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