BILL NUMBER: S8594A
SPONSOR: MYRIE
 
TITLE OF BILL:
An act to amend the penal law, the criminal procedure law, the general
business law, the labor law, the legislative law, the public officers
law, the state finance law and the tax law, in relation to enacting the
"restoring integrity and preventing outright fraud in financial systems"
or "R.I.P.O.F.F. act"
 
PURPOSE:
To update New York's white-collar crime and public integrity laws that
have not been significantly amended in four decades.
 
SUMMARY OF PROVISIONS:
Section 1 provides the title of this bill, "restoring integrity and
preventing outright fraud in financial systems" or R.I.P.O.F.F. Act.
Section 2 amends section 190.60 of the penal law, as amended by chapter
491 of the laws of 1992, to establish the crime of scheme to defraud in
the fifth degree.
Section 3 amends section 190.65 of the penal law, as amended by chapter
332 of the laws of 2020, to establish the crime of scheme to defraud in
the 4th degree.
Section 4 amends the penal law to add in new sections 190.66, 190.67,
and 190.68. These create the crimes of scheme to defraud in the third,
second, and first degree.
Section 5 amends Section 200.00 of the penal law, as amended by chapter
833 of the laws of 1986 to require a person guilty of bribery in the
third degree to have an intent to influence.
Section 6 amends Section 200.03 of the penal law, as amended by chapter
833 of the laws of 1986 to require a person guilty of bribery in the
second degree to have an intent to influence.
Section 7 amends Section 200.04 of the penal law, as amended by chapter
833 of the laws of 1986 to require a person guilty of bribery in the
first degree to have an intent to influence.
Section 8 amends section 200.10 of the penal law as amended by section
21 of subpart A of part H of chapter 55 of the laws of 2014, is amended
to require a person guilty of bribe receiving in the third degree to
have an intent to influence.
Section 9 amends section 200.11 of the penal law as amended by section
21 of subpart A of part H of chapter 55 of the laws of 2014, is amended
to require a person guilty of bribe receiving in the second degree to
have an intent to influence.
Section 10 amends section 200.12 of the penal law as amended by section
21 of subpart A of part H of chapter 55 of the laws of 2014, is amended
to require a person guilty of bribe receiving in the first degree to
have an intent to influence.
Section 11 amends Sections 180.03, 180.05, and 180.08 of the penal law,
as amended by chapter 577 of the laws of 1986 to require a person guilty
of commercial bribery in the first and second degrees to have an intent
to influence and removes the economic harm requirement.
Section 12 adds a new subdivision 10 for section 470.00 of penal law to
define the crime of structuring.
Section 13 adds new sections 470.30 and 470.31 as structuring in the
second degree and structuring in the first degree.
Section 14 amends section 195.20 of the penal law, as amended by chapter
1 of the laws is 2010 by defining defrauding the government in the
fourth degree.
Section 15 adds three new sections 195.22, 195.25, and 195.27. 195.22 is
defrauding the government in the third degree. 195.25 defrauding the
government in the second degree. 195.27 defrauding the government in the
first degree.
Section 16 amends subdivision 2 of section 20.40 of criminal procedure
law.
Section 17 amends subdivision 1 of section 155.00 of penal law, as
amended by chapter 353 of laws of 2023, with a new subdivision 17 to
define virtual currency.
Section 18 amends subdivision 1 of section 470.00 of the penal law, as
amended by chapter 489 of laws of 2000 to state that virtual currency is
defined in section 155.00.
Section 19 amends subdivision 3 of section 470.00 of the penal law, as
amended by chapter 489 of the laws of 2000 to set guidelines of what
virtual currency "transaction" includes.
Section 20 adds subdivision 12 of section 450.10 of the penal law, as
added by chapter 795 of the laws of 1984.
Section 21 amends the opening paragraph (a) of subdivision 8 of section
190.30 of the criminal procedure law, as added by chapter 27 of the laws
2008 to make business records be defined by rule forty-five hundred
eighteen of the civil practice law and rules generated by a business
entity.
Section 22 amends Paragraph ( c ) of subdivision 8 of section 190.30 of
the criminal procedure law, as added by chapter 279 of the laws of 2008
to set guidelines for any business records offered to a grand jury that
is outside of the scope of the business record as regularly generated.
Section 23 amends Section 190.30 of the criminal procedure law to add a
new subdivision 9 to make a record processed by an electronic process,
computer, and cryptographically secured technology or system to be
received as evidence by a grand jury if it is accompanied by a written
declaration of a qualified person, or made under oath.
Section 24 amends Section 80.10 of the penal law by adding a new subdi-
vision 4 to set guidelines for corporations doing business in New York
State with an annual revenue exceeding one hundred million dollars with
corporate equity fines if they are convicted of a felony offense under
the laws of the state or court.
Section 25 Amends the penal law by adding a new section 155.50 to set
guidelines for sentencing when a person is convicted of an attempt or
conspiracy to commit an offense under this article.
Section 26 amends subdivision 2 of section 496.06 of the penal law.
Section 27 amends paragraph a of subdivision 1 of section 460.10 of the
penal law. Section 28 amends paragraph f of subdivision 1 of section 410
of the general business law.
Section 29 amends clause (ii) of subparagraph 2 of paragraph b of subdi-
vision 3 of section 220-b of the labor law.
Section 30 amends paragraphs (i) and (ii) of subdivision (a) of section
1-c of the legislative law. Section 31 amends subdivision 1-a of section
3 of the public officers law.
Section 32 amends the opening paragraph and paragraph (i) of subdivision
(b) of section 139-a of the state finance law.
Section 33 amends subdivision 2 of section 139-b of the state finance
law. Section 34 amends subdivision 1-a of section 139-c of the state
finance law. Section 35 amends section 41 of the tax law.
Section 36 sets forth the effective date.
 
JUSTIFICATION:
New Yorkers pay the price for white-collar crime every day. Schemes to
defraud vulnerable and working-class New Yorkers continue to cost our
economy hundreds of millions of dollars annually, while the laws to
protect victims and our financial market lag behind. For decades, as
fraudsters devised new ways to rip off consumers, workers, businesses,
and the public at large, our laws remained stuck, literally, in the last
century. To maintain New York's status as both the financial capital of
the world and a center for opportunity and innovation, our laws must
equip the justice system to hold bad actors accountable, provide relief
for victims, and provide stability and predictability in emerging econo-
mies, including virtual currency.
The RIPOFF Act aims to achieve these goals by updating New York's fraud
statutes, clarifying criminal procedure law, strengthening standards
against bribery, protecting tax dollars, and deterring malfeasance from
large corporations with a new fine model. Taken together, this bill will
bring our fight against schemes, frauds, and dishonest gain into the
21st century to protect the pockets of everyday New Yorkers while
restoring integrity to our financial markets.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8594: 190.65 penal law, 200.00 penal law, 200.03 penal law, 200.04 penal law, 200.10 penal law, 200.11 penal law, 200.12 penal law, 195.20 penal law, 20.40 criminal procedure law, 20.40(2) criminal procedure law, 155.00 penal law, 155.00(1) penal law, 470.00 penal law, 470.00(1) penal law, 470.00(3) penal law, 450.10 penal law, 190.30 criminal procedure law, 190.30(8) criminal procedure law, 80.10 penal law, 496.06 penal law, 496.06(2) penal law, 460.10 penal law, 460.10(1) penal law, 220-b labor law, 220-b(3) labor law, 3 public officers law, 3(1-a) public officers law, 139-b state finance law, 139-b(2) state finance law, 139-c state finance law, 139-c(1-a) state finance law, 41 tax law
S8594A: 190.65 penal law, 200.00 penal law, 200.03 penal law, 200.04 penal law, 200.10 penal law, 200.11 penal law, 200.12 penal law, 195.20 penal law, 20.40 criminal procedure law, 20.40(2) criminal procedure law, 155.00 penal law, 155.00(1) penal law, 470.00 penal law, 470.00(1) penal law, 470.00(3) penal law, 450.10 penal law, 190.30 criminal procedure law, 190.30(8) criminal procedure law, 80.10 penal law, 496.06 penal law, 496.06(2) penal law, 460.10 penal law, 460.10(1) penal law, 220-b labor law, 220-b(3) labor law, 3 public officers law, 3(1-a) public officers law, 139-b state finance law, 139-b(2) state finance law, 139-c state finance law, 139-c(1-a) state finance law, 41 tax law