S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9494

                          I N  A S S E M B L Y

                              March 7, 2012
                               ___________

Introduced  by M. of A. GOODELL -- Multi-Sponsored by -- M. of A. BLANK-
  ENBUSH, GIGLIO, HANNA, P. LOPEZ, LOSQUADRO, MURRAY, TENNEY, WALTER  --
  read once and referred to the Committee on Health

AN  ACT to amend the social services law, in relation to creating incen-
  tives for counties to investigate and prosecute medicaid fraud

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The social services law is amended by adding a new article
5-A to read as follows:
                                ARTICLE 5-A
                      MEDICAID FRAUD REIMBURSEMENT
SECTION 370-BB. DISPOSITION OF MONEYS RECEIVED  AS  THE  RESULT  OF  THE
                  PROSECUTION OF MEDICAID FRAUD.
  S  370-BB.  DISPOSITION OF MONEYS RECEIVED AS THE RESULT OF THE PROSE-
CUTION OF MEDICAID FRAUD. 1. FOR THE PURPOSES OF THIS SECTION, "MEDICAID
FRAUD" SHALL MEAN THE KNOWING COMMISSION OF ANY  CRIME  WITH  INTENT  TO
ILLEGALLY RECEIVE BENEFITS, OR REIMBURSEMENT FROM THE MEDICAL ASSISTANCE
FOR  NEEDY  PERSONS PROGRAM ESTABLISHED AND ADMINISTERED PURSUANT TO THE
SOCIAL SERVICES LAW, THE PUBLIC HEALTH LAW AND FEDERAL LAW.
  2. SHOULD ANY COUNTY OR THE CITY OF NEW  YORK  SUCCESSFULLY  PROSECUTE
ANY  CASE  FOR  MEDICAID  FRAUD  AND A COURT AWARDS RESTITUTION OR CIVIL
FORFEITURE, THE FOLLOWING  PORTION  OF  THE  NON-FEDERAL  SHARE  OF  THE
PROCEEDS  OF  SUCH RESTITUTION OR CIVIL FORFEITURE SHALL BE ALLOCATED AS
FOLLOWS:
  (I) THE COUNTY OR THE CITY OF  NEW  YORK  SHALL  RECEIVE  ONE  HUNDRED
PERCENT OF THE LOCAL SHARE OF SUCH FUNDS, IN EFFECT IMMEDIATELY PRIOR TO
SUCH  DATE  AS CERTIFIED BY THE DIVISION OF BUDGET OR TEN PERCENT OF THE
TOTAL RECOVERY WHICHEVER NUMBER IS GREATER;
  (II) THE REMAINDER THEREOF SHALL BE DEPOSITED INTO THE GENERAL FUND OF
THE STATE.
  3. NOTHING IN THIS ARTICLE SHALL IMPAIR ANY COUNTY OR THE CITY OF  NEW
YORK'S ABILITY TO SEEK DAMAGES UNDER SECTION ONE HUNDRED FORTY-FIVE-B OF
THE SOCIAL SERVICES LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14839-02-2
              

A. 9494                             2

  S  2.  Paragraph  (a)  of subdivision 2 of section 145-b of the social
services law, as amended by chapter 109 of the laws of 2007, is  amended
to read as follows:
  (a)  For  civil damages collected by a local social services district,
relating to the medical assistance program, pursuant to a judgment under
this subdivision, such amounts shall be apportioned  between  the  local
social  services district and the state. [If the violation occurred: (i)
prior to January first, two thousand six, the] THE amount apportioned to
the local social services district shall be ONE HUNDRED PERCENT  OF  the
local  share  [percentage] OF SUCH FUNDS, in effect immediately prior to
such date as certified by the division of budget[, or (ii) after January
first, two thousand six, the amount  apportioned  to  the  local  social
services district shall be based on a reimbursement schedule, created by
the  office  of  Medicaid  inspector  general, in effect at the time the
violation occurred; provided that, if there is no schedule in effect  at
the  time  the  violation occurred, the schedule to be used shall be the
first schedule adopted pursuant to this subdivision. Such schedule shall
provide for reimbursement to a local  social  services  district  in  an
amount  between  ten  and fifteen percent of the gross amount collected.
Such schedule shall be set on a county by  county  basis  and  shall  be
periodically  reviewed and updated as necessary; provided, however, that
any such updated schedule shall not be less than ten percent nor greater
than fifteen percent of the gross amount collected] OR  TEN  PERCENT  OF
THE TOTAL RECOVERY WHICHEVER NUMBER IS GREATER; and
  S 3. This act shall take effect immediately.