S T A T E O F N E W Y O R K
________________________________________________________________________
8122--A
I N S E N A T E
June 9, 2010
___________
Introduced by Sens. KLEIN, AUBERTINE, FOLEY, MAZIARZ, PERALTA -- read
twice and ordered printed, and when printed to be committed to the
Committee on Finance -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, in relation to enacting the "improper
payments reporting and reduction act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new article 4-B to
read as follows:
ARTICLE 4-B
IMPROPER PAYMENTS REPORTING AND REDUCTION ACT
SECTION 56. SHORT TITLE.
56-A. DEFINITIONS.
57. IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES.
57-A. ESTIMATION OF IMPROPER PAYMENTS.
57-B. REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS.
58. IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP.
59. APPLICATION OF ARTICLE.
S 56. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
"IMPROPER PAYMENTS REPORTING AND REDUCTION ACT".
S 56-A. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL MEAN:
1. "AGENCY" MEANS ANY EXECUTIVE BRANCH AGENCY, DEPARTMENT, DIVISION,
OFFICE, BOARD, COMMISSION, PUBLIC AUTHORITY (OTHER THAN A MULTI-STATE OR
MULTI-NATIONAL AUTHORITY) OR PUBLIC BENEFIT CORPORATION, WITH AN ANNUAL
BUDGET OF AT LEAST TWENTY MILLION DOLLARS, THE HEAD OF WHICH IS
APPOINTED BY THE GOVERNOR.
2. "IMPROPER PAYMENT" MEANS ANY PAYMENT THAT SHOULD NOT HAVE BEEN MADE
OR THAT WAS MADE IN AN INCORRECT AMOUNT, INCLUDING OVERPAYMENTS AND
UNDERPAYMENTS, WHETHER UNDER STATUTORY, CONTRACTUAL, ADMINISTRATIVE OR
OTHER LEGALLY APPLICABLE REQUIREMENTS. SUCH TERM SHALL INCLUDE, BUT NOT
BE LIMITED TO, ANY PAYMENT TO AN INELIGIBLE RECIPIENT, ANY PAYMENT FOR
AN INELIGIBLE SERVICE, ANY DUPLICATE PAYMENT, PAYMENTS FOR SERVICES NOT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17679-03-0
S. 8122--A 2
RECEIVED AND ANY PAYMENT THAT DOES NOT ACCOUNT FOR CREDIT FOR APPLICABLE
DISCOUNTS.
3. "PAYMENT" MEANS ANY PAYMENT, INCLUDING A COMMITMENT FOR FUTURE
PAYMENT, THAT IS MADE BY AN AGENCY, A STATE CONTRACTOR, OR A GOVERN-
MENTAL OR OTHER ORGANIZATION ADMINISTERING A STATE PROGRAM OR ACTIVITY,
AND WHICH DERIVED FROM STATE FUNDS OR OTHER STATE RESOURCES, OR THAT
WILL BE REIMBURSED FROM STATE FUNDS OR OTHER STATE RESOURCES.
S 57. IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES. THE HEAD
OF EACH AGENCY SHALL, IN ACCORDANCE WITH GUIDELINES PROMULGATED PURSUANT
TO SECTION FIFTY-EIGHT OF THIS ARTICLE, ANNUALLY REVIEW ALL PROGRAMS AND
ACTIVITIES THAT IT ADMINISTERS, AND IDENTIFY ALL SUCH PROGRAMS AND
ACTIVITIES THAT MAY BE SUSCEPTIBLE TO IMPROPER PAYMENTS.
S 57-A. ESTIMATION OF IMPROPER PAYMENTS. WITH RESPECT TO EACH PROGRAM
AND ACTIVITY IDENTIFIED IN SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD
OF THE AGENCY SHALL:
1. ESTIMATE THE ANNUAL AMOUNT OF IMPROPER PAYMENTS; AND
2. REPORT SUCH ESTIMATE TO THE PUBLIC, AND THE CHAIRS OF THE SENATE
FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE ON OR BEFORE
JANUARY FIRST OF THE SUCCEEDING CALENDAR YEAR, AND SHALL BE POSTED ON
THE AGENCY'S INTERNET WEBSITE AND ANY OTHER WEBSITE ESTABLISHED PURSUANT
TO SECTION FIFTY-EIGHT OF THIS ARTICLE.
ALL AGENCIES SHALL USE THE SAME METHOD OF REPORTING, AS PRESCRIBED BY
SECTION FIFTY-EIGHT OF THIS ARTICLE.
S 57-B. REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS. WITH RESPECT
TO ANY PROGRAM OR ACTIVITY OF AN AGENCY WITH IDENTIFIED IMPROPER
PAYMENTS PURSUANT TO SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD OF
THE AGENCY SHALL INCLUDE WITH THE ESTIMATE PURSUANT TO SECTION
FIFTY-SEVEN-A OF THIS ARTICLE A REPORT ON WHAT ACTIONS THE AGENCY IS
TAKING TO REDUCE THE IMPROPER PAYMENTS, INCLUDING:
1. A DISCUSSION OF THE CAUSES OF THE IMPROPER PAYMENTS IDENTIFIED,
ACTIONS TAKEN TO CORRECT THOSE CAUSES, AND RESULTS OF THE ACTIONS TAKEN
TO ADDRESS THOSE CAUSES;
2. A STATEMENT OF WHETHER THE AGENCY HAS THE INFORMATION SYSTEMS AND
OTHER INFRASTRUCTURE IT NEEDS IN ORDER TO REDUCE IMPROPER PAYMENTS TO
MINIMAL COST-EFFECTIVE LEVELS;
3. IF THE AGENCY DOES NOT HAVE SUCH SYSTEMS AND INFRASTRUCTURE, A
DESCRIPTION OF THE RESOURCES THE AGENCY HAS REQUESTED IN ITS BUDGET
SUBMISSION TO OBTAIN THE NECESSARY INFORMATION SYSTEMS AND INFRASTRUC-
TURE; AND
4. A DESCRIPTION OF THE STEPS THE AGENCY HAS TAKEN TO ENSURE THAT
AGENCY MANAGERS (INCLUDING THE AGENCY HEAD) ARE HELD ACCOUNTABLE FOR
REDUCING IMPROPER PAYMENTS.
S 58. IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP. 1. THERE SHALL BE
ESTABLISHED, WITHIN THE EXECUTIVE BRANCH, THE IMPROPER PAYMENT ESTIMATE
GUIDANCE GROUP. SUCH GROUP SHALL BE COMPOSED OF THE DIRECTOR OF THE
BUDGET WHO SHALL CHAIR THE GROUP, THE STATE INSPECTOR GENERAL, THE
INSPECTOR GENERAL OF THE METROPOLITAN TRANSPORTATION AUTHORITY AND THE
WELFARE INSPECTOR GENERAL.
2. WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS ARTI-
CLE, THE IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP SHALL MEET AND, IN
CONSULTATION WITH THE STATE COMPTROLLER, PRESCRIBE GUIDELINES FOR THE
IMPLEMENTATION OF THE PROVISIONS OF THIS ARTICLE. ALL AGENCIES SHALL
COOPERATE WITH SUCH GROUP TO ASSIST IT AS NECESSARY IN THE DEVELOPMENT
AND PROMULGATION OF GUIDELINES. THE GUIDELINES SHALL INCLUDE, BUT NOT BE
LIMITED TO:
S. 8122--A 3
A. THE MANNER IN WHICH AGENCIES SHALL REVIEW PROGRAMS AND ACTIVITIES,
AND IDENTIFY THOSE WHICH ARE SUSCEPTIBLE TO IMPROPER PAYMENTS;
B. THE MANNER IN WHICH AGENCIES SHALL CALCULATE STATISTICALLY VALID
ESTIMATES OF THE ANNUAL AMOUNT OF IMPROPER PAYMENTS IN PROGRAMS AND
ACTIVITIES;
C. THE MANNER IN WHICH AGENCIES SHALL IMPLEMENT PLANS TO REDUCE
IMPROPER PAYMENTS; AND
D. THE MANNER IN WHICH AGENCIES SHALL REPORT ESTIMATES OF THE ANNUAL
AMOUNT OF IMPROPER PAYMENTS IN PROGRAMS AND ACTIVITIES, AND PROGRESS IN
REDUCING THEM.
3. THE IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP SHALL THEREAFTER MEET
AT ANY TIME AT THE CALL OF EITHER THE DIRECTOR OF THE BUDGET OR THE
STATE COMPTROLLER; PROVIDED THAT SUCH GROUP SHALL MEET NO FEWER THAN
ONCE EVERY FOUR YEARS TO REVIEW THE GUIDELINES.
S 59. APPLICATION OF ARTICLE. THE PROVISIONS OF THIS ARTICLE SHALL:
1. APPLY TO THE ADMINISTRATION OF PROGRAMS AND IMPROPER PAYMENTS MADE
IN STATE FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO THOUSAND
ELEVEN; AND
2. REQUIRE THE INCLUSION OF THE ESTIMATES, REPORTED PURSUANT TO
SECTION FIFTY-SEVEN-A OF THIS ARTICLE, IN THE AGENCY BUDGET SUBMISSIONS
FOR STATE FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE.
S 2. This act shall take effect immediately.