S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8576
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 10, 2017
                                ___________
 
 Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN  ACT  to  amend  the  public officers law, in relation to prohibiting
   reimbursement of campaign  committees  and  legal  defense  funds  for
   defense costs incurred on behalf of state employees

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 19 of the public officers law,  as
 amended  by  chapter  769  of  the  laws  of 1985, is amended to read as
 follows:
   2. (a) Upon compliance by the employee with the provisions of subdivi-
 sion three of this section, and subject to THE RESTRICTIONS SET FORTH IN
 PARAGRAPH (B) OF THIS SUBDIVISION AND the conditions set forth in  para-
 graph  [(b)]  (C) of this subdivision, it shall be the duty of the state
 to pay reasonable attorneys' fees and litigation expenses incurred by or
 on behalf of an employee in his or her defense of a criminal  proceeding
 in  a state or federal court arising out of any act which occurred while
 such employee was acting within the scope of his  public  employment  or
 duties  upon his acquittal or upon the dismissal of the criminal charges
 against him or reasonable attorneys' fees incurred in connection with an
 appearance before a grand jury which returns no true  bill  against  the
 employee where such appearance was required as a result of any act which
 occurred  while  such employee was acting within the scope of his public
 employment or duties unless such appearance occurs in the normal  course
 of the public employment or duties of such employee.
   (b)    NO  REIMBURSEMENT SHALL BE PAID PURSUANT TO THIS SECTION TO ANY
 CAMPAIGN OR POLITICAL COMMITTEE, OR LEGAL DEFENSE FUND WHICH PAYS ALL OR
 ANY PORTION OF AN EMPLOYEES' REASONABLE  ATTORNEYS'  FEES  AND/OR  LITI-
 GATION  EXPENSES.    FURTHERMORE,  AN  EMPLOYEE  ON WHOSE BEHALF A LEGAL
 DEFENSE FUND OR LEGAL DEFENSE FUNDS HAVE BEEN ESTABLISHED, SHALL NOT  BE
 ELIGIBLE  FOR REIMBURSEMENT PURSUANT TO THIS SECTION UNTIL ALL MONEYS IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01588-01-7

 A. 8576                             2
 
 SUCH FUND OR FUNDS HAVE BEEN  EXPENDED  FOR  THE  EMPLOYEES'  REASONABLE
 ATTORNEYS' FEES AND/OR LITIGATION EXPENSES.
   (C)  Upon  the application for reimbursement for reasonable attorneys'
 fees or litigation expenses or both made by or on behalf of an  employee
 as  provided  in subdivision three of this section, the attorney general
 shall determine, based upon his investigation  and  his  review  of  the
 facts  and  circumstances, whether such reimbursement shall be paid. The
 attorney general shall notify the employee in writing of  such  determi-
 nation. Upon determining that such reimbursement should be provided, the
 attorney  general shall so certify to the comptroller. Upon such certif-
 ication, reimbursement shall be made for such fees or expenses  or  both
 upon  the  audit  and  warrant  of the comptroller. On or before January
 fifteenth the comptroller, in consultation with the  department  of  law
 and  other  agencies as may be appropriate, shall submit to the governor
 and the legislature an  annual  accounting  of  judgments,  settlements,
 fees,  and  litigation expenses paid pursuant to this section during the
 preceding and current fiscal years. Such accounting shall  include,  but
 not be limited to the number, type and amount of claims so paid, as well
 as  an estimate of claims to be paid during the remainder of the current
 fiscal year and during the  following  fiscal  year.  Any  dispute  with
 regard  to  entitlement  to  reimbursement  or  the amount of litigation
 expenses or the reasonableness of attorneys' fees shall be resolved by a
 court of competent jurisdiction upon appropriate motion or by way  of  a
 special proceeding.
   § 2. This act shall take effect immediately.