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

                                  4947

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security  law  and  the  state
  finance  law,  in  relation  to  pension forfeiture and taxpayer abuse
  sanctions

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

  Section 1. The retirement and social security law is amended by adding
a new article 23 to read as follows:

                               ARTICLE 23
              PENSION FORFEITURE FOR PUBLIC CORRUPTION ACT
SECTION 1300. SHORT TITLE.
        1301. DEFINITIONS.
        1302. PENSION FORFEITURE.
        1303. TAXPAYER ABUSE SANCTION.
        1304. MISCELLANEOUS.
  S  1300.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "PENSION FORFEITURE FOR PUBLIC CORRUPTION ACT".
  S 1301. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES, AS USED IN  THIS
ARTICLE,  SHALL  HAVE THE FOLLOWING MEANINGS, UNLESS A DIFFERENT MEANING
IS PLAINLY REQUIRED BY THE CONTEXT:
  1. "DEFENDANT" SHALL MEAN A PERSON AGAINST WHOM A FORFEITURE ACTION IS
COMMENCED.
  2. "DESIGNATED FELONY OFFENSE" SHALL MEAN:
  (A) ANY FELONY OFFENSE SET FORTH IN THE PENAL LAW; OR
  (B) A CONSPIRACY TO COMMIT ANY FELONY OFFENSE SET FORTH IN  THE  PENAL
LAW WHEN THE COMMISSION OF ANY SUCH FELONY IS RELATED TO THE PERFORMANCE
OR  FAILURE  TO  PERFORM SUCH MEMBER OR RETIRED MEMBER'S OFFICIAL DUTIES
AND RESPONSIBILITIES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06940-03-1

              

S. 4947                             2

  3. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE OF  NEW  YORK
IN  HIS OR HER CAPACITY AS ADMINISTRATIVE HEAD OF THE NEW YORK STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM AND THE  NEW  YORK  STATE  AND  LOCAL
POLICE AND FIRE RETIREMENT SYSTEM.
  4.  "MEMBER"  SHALL  MEAN  A  MEMBER  OF  THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK STATE AND  LOCAL  POLICE  AND
FIRE  RETIREMENT SYSTEM, THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM,
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY TEACH-
ERS' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE PENSION FUND,  THE  NEW
YORK  CITY  FIRE  DEPARTMENT  PENSION  FUND,  THE NEW YORK CITY BOARD OF
EDUCATION RETIREMENT SYSTEM AND ANY OTHER RETIREMENT SYSTEM OF THE STATE
OR CITY OF NEW YORK.
  5. "RETIRED MEMBER" SHALL MEAN A PERSON WHO IS RETIRED FROM AND WHO IS
RECEIVING A RETIREMENT ALLOWANCE FROM A RETIREMENT SYSTEM.
  6. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM, THE NEW YORK  STATE  POLICEMEN'S  AND  FIREMEN'S
RETIREMENT  SYSTEM,  THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM, THE
NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY  TEACHERS'
RETIREMENT  SYSTEM,  THE NEW YORK CITY POLICE PENSION FUND, THE NEW YORK
CITY FIRE DEPARTMENT PENSION FUND, THE NEW YORK CITY BOARD OF  EDUCATION
RETIREMENT  SYSTEM  AND ANY OTHER RETIREMENT SYSTEM OF THE STATE OR CITY
OF NEW YORK.
  7. "AGGRIEVED PARTY" SHALL MEAN ANY RESIDENT TAXPAYER WHO IS ADVERSELY
AFFECTED BY ANY DESIGNATED FELONY  OFFENSE  COMMITTED  BY  A  MEMBER  OR
RETIRED  MEMBER  OF  ANY  RETIREMENT  SYSTEM OF THE STATE OF NEW YORK AS
DEFINED IN SUBDIVISION SIX OF THIS SECTION.
  S 1302. PENSION FORFEITURE. NOTWITHSTANDING  ANY  OTHER  PROVISION  OF
GENERAL, SPECIAL OR LOCAL LAW, RULE OR REGULATION TO THE CONTRARY:
  1.  IN  THE CASE OF A MEMBER OR RETIRED MEMBER WHO IS CONVICTED OF ANY
DESIGNATED FELONY OFFENSE, THE COMMISSION OF WHICH  IS  RELATED  TO  THE
PERFORMANCE  OR FAILURE TO PERFORM SUCH MEMBER OR RETIRED MEMBER'S OFFI-
CIAL DUTIES AND RESPONSIBILITIES, AN ACTION  MAY  BE  COMMENCED  IN  THE
SUPREME  COURT  BY  THE  DISTRICT  ATTORNEY HAVING JURISDICTION OVER THE
OFFENSE OR ANY AGGRIEVED PARTY, FOR THE FORFEITURE OF ALL OR  A  PORTION
OF THOSE RIGHTS AND BENEFITS TO WHICH SUCH PERSON IS OR WILL BE ENTITLED
AS  A  MEMBER  OR RETIRED MEMBER PROVIDED THAT ANY CONTRIBUTIONS MADE BY
THE OFFICIAL TO HIS OR HER RETIREMENT SYSTEM SHALL  NOT  BE  SUBJECT  TO
FORFEITURE,  BUT  SHALL BE RETURNED TO SUCH OFFICIAL.  SUCH ACTION SHALL
BE COMMENCED WITHIN ONE YEAR OF SUCH CONVICTION. FOR  PURPOSES  OF  THIS
ARTICLE,  A  DESIGNATED  FELONY OFFENSE IS RELATED TO THE PERFORMANCE OR
FAILURE TO PERFORM SUCH MEMBER OR RETIRED MEMBER'S OFFICIAL  DUTIES  AND
RESPONSIBILITIES IF IT:
  (A)  CONSTITUTED  A  MATERIAL  VIOLATION  OF  SUCH  MEMBER  OR RETIRED
MEMBER'S DUTIES AND RESPONSIBILITIES AS A PUBLIC SERVANT; OR
  (B) EVEN THOUGH COMMITTED OUTSIDE THE SCOPE OF SUCH MEMBER'S  OFFICIAL
DUTIES  OR  RESPONSIBILITIES,  INVOLVED ACTIONS OR CONDUCT BY WHICH SUCH
MEMBER OR RETIRED MEMBER INDICATED OR CONVEYED THAT HE OR SHE WAS ACTING
WITH THE AUTHORITY OF, OR UNDER COLOR OF THE AUTHORITY OF,  ANY  GOVERN-
MENTAL ENTITY.
  2.  WHERE THE ATTORNEY GENERAL FINDS THAT A MEMBER OR A RETIRED MEMBER
HAS BEEN CONVICTED OF A DESIGNATED FELONY  OFFENSE,  THE  COMMISSION  OF
WHICH IS RELATED TO THE PERFORMANCE OR FAILURE TO PERFORM SUCH MEMBER OR
RETIRED  MEMBER'S OFFICIAL DUTIES AND RESPONSIBILITIES, AN ACTION MAY BE
COMMENCED IN THE SUPREME COURT BY THE ATTORNEY GENERAL OR ANY  AGGRIEVED
PARTY,  FOR THE FORFEITURE OF ALL OR A PORTION OF THOSE RIGHTS AND BENE-
FITS TO WHICH SUCH PERSON IS OR WILL BE ENTITLED AS A MEMBER OR  RETIRED

S. 4947                             3

MEMBER.  SUCH  ACTION  SHALL  BE  COMMENCED  WITHIN  ONE  YEAR  OF  SUCH
CONVICTION.
  3.  PRIOR  TO THE COMMENCEMENT OF SUCH ACTION AS DESCRIBED IN SUBDIVI-
SION ONE OR TWO OF THIS SECTION, THE DISTRICT ATTORNEY OR  THE  ATTORNEY
GENERAL,  AS  THE  CASE  MAY BE, SHALL PROVIDE NOTICE TO THE COMPTROLLER
STATING THAT HE OR SHE HAS REASON TO BELIEVE THAT THE  PERSON  CONVICTED
COMMITTED THE FELONY RELATED TO HIS OR HER OFFICIAL DUTIES AND RESPONSI-
BILITIES.  WITHIN TWENTY DAYS OF RECEIPT OF SUCH NOTICE, THE COMPTROLLER
SHALL  SUBMIT  A NOTICE OF APPLICABILITY TO THE DISTRICT ATTORNEY OR THE
ATTORNEY GENERAL AS THE CASE MAY BE. THE NOTICE OF  APPLICABILITY  SHALL
CONTAIN  A  STATEMENT  SPECIFYING WHETHER THE PERSON CONVICTED IS OR HAS
BEEN A MEMBER OR RETIRED MEMBER OF THE NEW YORK STATE AND LOCAL  EMPLOY-
EES'  RETIREMENT  SYSTEM OR THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM AND SHALL DESCRIBE THE RIGHTS AND  BENEFITS  TO  WHICH
SUCH  PERSON  IS  OR  WILL  BE  ENTITLED  TO FROM SUCH PUBLIC RETIREMENT
SYSTEM.
  4. UPON MOTION BY THE DISTRICT ATTORNEY OR THE  ATTORNEY  GENERAL,  AS
THE  CASE  MAY  BE,  MADE UPON COMMENCEMENT OF OR AT ANY TIME DURING THE
PENDENCY OF A FORFEITURE ACTION, PURSUANT TO THE PROCEDURE SET FORTH  IN
SUBDIVISION  ONE OF SECTION SIXTY-THREE HUNDRED ELEVEN OR SECTION SIXTY-
THREE HUNDRED THIRTEEN OF THE CIVIL PRACTICE LAW AND  RULES,  THE  COURT
MAY  ISSUE  A  TEMPORARY  RESTRAINING  ORDER OR A PRELIMINARY INJUNCTION
PROHIBITING THE DEFENDANT FROM RECEIVING ANY RIGHTS OR BENEFITS FROM THE
APPROPRIATE RETIREMENT SYSTEM. A PRELIMINARY INJUNCTION MAY  BE  GRANTED
WHERE  THE  COURT FINDS THAT THERE IS A SUBSTANTIAL PROBABILITY THAT THE
DISTRICT ATTORNEY OR ATTORNEY GENERAL  WILL  PREVAIL  ON  THE  ISSUE  OF
FORFEITURE.  NO SHOWING OF IRREPARABLE HARM SHALL BE REQUIRED. THE COURT
MAY NOT CONSIDER ON SUCH MOTION ANY ISSUES PRESENTED TO THE COURT  WHICH
HEARD  THE CRIMINAL ACTION IN WHICH THE DEFENDANT WAS CONVICTED OR WHICH
ARISE OUT OF SUCH CRIMINAL ACTION AND MAY BE PRESENTED ON APPEAL.
  5. ALL DEFENDANTS IN A FORFEITURE  ACTION  BROUGHT  PURSUANT  TO  THIS
ARTICLE SHALL HAVE THE RIGHT TO TRIAL BY JURY ON ANY ISSUE OF FACT.
  6.  THE  BURDEN  OF  PROOF  SHALL BE UPON THE DISTRICT ATTORNEY OR THE
ATTORNEY GENERAL, AS THE CASE MAY BE, TO PROVE BY CLEAR  AND  CONVINCING
EVIDENCE THE FACTS NECESSARY TO ESTABLISH A CLAIM OF PENSION FORFEITURE.
  7.  (A) UPON A FINDING BY THE COURT THAT THE DEFENDANT HAS COMMITTED A
FELONY IN CONNECTION WITH HIS OR HER OFFICIAL  DUTIES  AND  RESPONSIBIL-
ITIES, THE COURT SHALL DETERMINE FROM THE SUPPORT COLLECTION UNIT WHETH-
ER  THE  DEFENDANT  IS  IN  ARREARS FOR SPOUSAL MAINTENANCE AND/OR CHILD
SUPPORT AND ISSUE AN ORDER TO THE APPROPRIATE RETIREMENT SYSTEM FOR:
  (I) THE FORFEITURE OR RECOUPMENT OF ALL OR A PORTION  OF  THE  DEFEND-
ANT'S RIGHTS AND BENEFITS AS A MEMBER OR RETIRED MEMBER OF SUCH SYSTEM;
  (II)  THE  RECOUPMENT  OF  ALL OR A PORTION OF THE RETIREMENT BENEFITS
PAID TO THE DEFENDANT;
  (III) THE PAYMENT OF SPOUSAL MAINTENANCE AND/OR CHILD SUPPORT  ARREARS
OWED BY THE DEFENDANT; AND
  (IV)  THE  REFUND  TO  THE  DEFENDANT OF ANY CONTRIBUTIONS MADE BY THE
DEFENDANT TO THE RETIREMENT SYSTEM FOR ANY PERIOD FOR WHICH THE  DEFEND-
ANT'S  RIGHTS AND BENEFITS AS A MEMBER OR RETIRED MEMBER OF SUCH RETIRE-
MENT SYSTEM HAVE BEEN ORDERED FORFEITED.
  (B) ALL ORDERS AND FINDINGS MADE BY THE COURT PURSUANT TO THIS SECTION
SHALL BE SERVED UPON THE COMPTROLLER.
  8. UPON A FINAL DETERMINATION THAT REVERSES OR VACATES THE  CONVICTION
OR  CONVICTIONS  OF  A  DESIGNATED  OFFENSE  OR  OFFENSES, THE MEMBER OR
RETIRED MEMBER WHO HAS FORFEITED RETIREMENT RIGHTS AND BENEFITS PURSUANT
TO THIS SECTION  SHALL  HAVE  SUCH  RIGHTS  AND  BENEFITS  RETROACTIVELY

S. 4947                             4

RESTORED  UPON  APPLICATION  TO  THE  COURT  WITH  JURISDICTION OVER THE
FORFEITURE ACTION, REGARDLESS OF  ANY  TEMPORARY  RESTRAINING  ORDER  OR
PRELIMINARY  INJUNCTION WHICH MAY BE OUTSTANDING OR ORDER WHICH MAY HAVE
BEEN  ISSUED.  SUCH  COURT, UPON FINDING THAT SUCH A FINAL DETERMINATION
HAS OCCURRED, SHALL ISSUE AN ORDER RETROACTIVELY RESTORING  SUCH  RIGHTS
AND  BENEFITS,  TOGETHER WITH SUCH OTHER RELIEF DEEMED APPROPRIATE. AS A
CONDITION TO FULL RESTORATION OF RIGHTS AND BENEFITS AS PROVIDED IN THIS
SUBDIVISION, THE MEMBER OR RETIRED MEMBER SHALL REIMBURSE THE RETIREMENT
SYSTEM FOR ANY CONTRIBUTIONS THAT WERE REFUNDED TO THE MEMBER OR RETIRED
MEMBER PURSUANT TO THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION  SEVEN
OF THIS SECTION.
  9.  EXCEPT  AS  OTHERWISE PROVIDED BY THIS ARTICLE, THE CIVIL PRACTICE
LAW AND RULES SHALL GOVERN THE PROCEDURE IN ACTIONS COMMENCED UNDER THIS
ARTICLE, EXCEPT WHERE  THE  ACTION  IS  REGULATED  BY  ANY  INCONSISTENT
PROVISIONS  HEREIN.  IN  SUCH  ACTIONS,  THE  COURT MAY NOT CONSIDER ANY
ISSUES PRESENTED TO THE COURT WHICH HEARD THE CRIMINAL ACTION  IN  WHICH
THE  DEFENDANT  WAS CONVICTED OR WHICH ARISE OUT OF SUCH CRIMINAL ACTION
AND MAY BE PRESENTED ON APPEAL.
  S 1303. TAXPAYER ABUSE SANCTION. 1. UPON AN ORDER ISSUED  PURSUANT  TO
SUBDIVISION  SEVEN  OF SECTION THIRTEEN HUNDRED TWO OF THIS ARTICLE, THE
COMPTROLLER SHALL IMPOSE A SANCTION IN  ACCORDANCE  WITH  THIS  SECTION.
SUCH  SANCTION  SHALL  BE IMPOSED FOR ANY TAXABLE YEAR DURING WHICH SUCH
MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE IS ELIGIBLE TO RECEIVE
A PENSION BENEFIT AND SHALL BE IN AN AMOUNT EQUAL TO THE AMOUNT  OF  ANY
SUCH BENEFIT RECEIVED DURING SUCH TAXABLE YEAR.
  2.  MONIES  RECEIVED  FROM  SANCTIONS IMPOSED PURSUANT TO THIS SECTION
SHALL:
  (A) FOR MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION  OF  A
PERSON  WHO  IS  A  MEMBER  OF  THE  NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM; THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR  THE  NEW  YORK
CITY BOARD OF EDUCATION RETIREMENT SYSTEM, BE DEPOSITED IN THE EDUCATION
TAXPAYER   ABUSE   PENALTY   FUND   ESTABLISHED   PURSUANT   TO  SECTION
NINETY-NINE-U OF THE STATE FINANCE LAW AND DISTRIBUTED PURSUANT  TO  THE
PROVISIONS OF SUCH SECTION; OR
  (B)  FOR  MONIES RECEIVED FROM SANCTIONS IMPOSED FOR A CONVICTION OF A
PERSON WHO IS A MEMBER OF  THE  NEW  YORK  STATE  EMPLOYEES'  RETIREMENT
SYSTEM,  THE NEW YORK STATE POLICEMEN'S AND FIREMEN'S RETIREMENT SYSTEM,
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY POLICE
PENSION FUND, THE NEW YORK CITY FIRE DEPARTMENT  PENSION  FUND,  OR  ANY
OTHER  RETIREMENT  SYSTEM  OF THE STATE OR CITY OF NEW YORK OTHER THAN A
RETIREMENT SYSTEM SET FORTH IN PARAGRAPH ONE  OF  THIS  SUBDIVISION,  BE
DEPOSITED  IN  THE  TAXPAYER  ABUSE PENALTY FUND ESTABLISHED PURSUANT TO
SECTION NINETY-NINE-V OF THE STATE FINANCE LAW AND DISTRIBUTED  PURSUANT
TO THE PROVISIONS OF SUCH SECTION.
  S  1304.  MISCELLANEOUS. THE REMEDIES PROVIDED FOR IN THIS ARTICLE ARE
NOT INTENDED TO SUBSTITUTE FOR, LIMIT OR SUPERSEDE THE LAWFUL  AUTHORITY
OF ANY PUBLIC OFFICER, AGENCY OR OTHER PERSON TO ENFORCE ANY OTHER RIGHT
OR REMEDY PROVIDED FOR BY LAW.
  S  2. The state finance law is amended by adding two new sections 99-u
and 99-v to read as follows:
  S 99-U.  EDUCATION TAXPAYER ABUSE PENALTY FUND.  1.  THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY OF THE COMMISSIONER OF TAXATION AND
FINANCE AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE  "EDUCA-
TION TAXPAYER ABUSE PENALTY FUND".
  2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF SECTION  THIRTEEN

S. 4947                             5

HUNDRED  THREE  OF  THE RETIREMENT AND SOCIAL SECURITY LAW AND ALL OTHER
MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED  THERETO  FROM  ANY  OTHER
FUND  OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL
PREVENT  THE  STATE  FROM  RECEIVING  GRANTS,  GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE  COMPTROLLER  ON
MONEYS  ON  DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME PART OF
SUCH FUND.
  3. MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS IN THE
STATE WHERE PERSONS  SUBJECT  TO  THE  PROVISIONS  OF  SECTION  THIRTEEN
HUNDRED THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW WERE EMPLOYED AT
THE TIME OF THE COMMISSION OF THE ACT OR ACTS UPON WHICH SUCH CONVICTION
WAS BASED. THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED TO
A  SCHOOL  DISTRICT  PURSUANT  TO THIS SUBDIVISION SHALL BE EQUAL TO THE
DOLLAR AMOUNT OF THE SANCTION IMPOSED UPON SUCH  CONVICTED  PERSON.  ANY
MONEYS  RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANCTION IMPOSED
PURSUANT TO THE PROVISIONS OF SECTION  THIRTEEN  HUNDRED  THREE  OF  THE
RETIREMENT  AND  SOCIAL  SECURITY LAW SHALL BE DISTRIBUTED EQUALLY AMONG
SCHOOL DISTRICTS LOCATED IN THE STATE.
  4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMIS-
SIONER OF TAXATION AND FINANCE.
  5. TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE  DISTRIBUTED
TO SCHOOL DISTRICTS AT LEAST ONCE ANNUALLY.
  S 99-V. TAXPAYER ABUSE PENALTY FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE  JOINT  CUSTODY  OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "TAXPAYER  ABUSE  PENALTY
FUND".
  2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS OF SECTION  THIRTEEN
HUNDRED  THREE  OF  THE RETIREMENT AND SOCIAL SECURITY LAW AND ALL OTHER
MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED  THERETO  FROM  ANY  OTHER
FUND  OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL
PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE  FUND  ACCORDING TO LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON
MONEYS ON DEPOSIT IN SUCH FUND SHALL BE RETAINED IN AND BECOME  PART  OF
SUCH FUND.
  3.  MONEYS IN SUCH FUND SHALL BE DISTRIBUTED TO POLITICAL SUBDIVISIONS
WITHIN THE STATE WHERE PERSONS SUBJECT  TO  THE  PROVISIONS  OF  SECTION
THIRTEEN  HUNDRED  THREE  OF THE RETIREMENT AND SOCIAL SECURITY LAW WERE
EMPLOYED AT THE TIME OF THE COMMISSION OF THE ACT  OR  ACTS  UPON  WHICH
SUCH CONVICTION WAS BASED OR TO THE STATE IF SUCH PERSON WAS EMPLOYED BY
THE  STATE.   THE AMOUNT OF MONEYS IN THE FUND THAT SHALL BE DISTRIBUTED
TO A MUNICIPALITY OR TO THE STATE PURSUANT TO THIS SUBDIVISION SHALL  BE
EQUAL  TO  THE DOLLAR AMOUNT OF THE SANCTION IMPOSED UPON SUCH CONVICTED
PERSON. ANY MONEYS RECEIVED BY THE FUND FROM A SOURCE OTHER THAN A SANC-
TION IMPOSED PURSUANT TO THE  PROVISIONS  OF  SECTION  THIRTEEN  HUNDRED
THREE OF THE RETIREMENT SOCIAL SECURITY LAW SHALL BE DISTRIBUTED EQUALLY
AMONG MUNICIPALITIES LOCATED IN THE STATE.
  4.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE  COMMIS-
SIONER OF TAXATION AND FINANCE.
  5.  TO THE EXTENT PRACTICABLE, MONEYS OF THE FUND SHALL BE DISTRIBUTED
TO MUNICIPALITIES AT LEAST ONCE ANNUALLY.

S. 4947                             6

  S 3. Notwithstanding any provision of law to the contrary, any  action
or  claim  brought pursuant to section 1302 of the retirement and social
security law, which is barred as of the effective date of  this  section
because  the  applicable  period  of  limitation  has  expired is hereby
revived,  and  action thereon may be commenced provided that such action
is commenced within one year of the effective date of this section.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.