S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10461
 
                           I N  A S S E M B L Y
 
                               May 18, 2020
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dinowitz) --
   read once and referred to the Committee on Judiciary
 
 AN  ACT  to  amend  the state finance law, in relation to increasing the
   amount of the award to a person who initiates a qui tam  action  where
   such  action  includes disclosure of information related to the use of
   government funds during a state of emergency

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs (a) and (b) of subdivision 6 of section 190 of
 the state finance law, as amended by section 9-b of part A of chapter 56
 of the laws of 2013, are amended to read as follows:
   (a) If the attorney general elects to convert the qui tam civil action
 into an attorney general  enforcement  action,  or  to  permit  a  local
 government to convert the action into a civil enforcement action by such
 local  government,  or  if  the  attorney  general or a local government
 elects to intervene in the qui tam civil  action,  then  the  person  or
 persons  who  initiated  the  qui tam civil action collectively shall be
 entitled to receive between  fifteen  and  twenty-five  percent  of  the
 proceeds  recovered  in  the  action or in settlement of the action. The
 court shall determine the percentage of the proceeds to which  a  person
 commencing a qui tam civil action is entitled, by considering the extent
 to  which  the plaintiff substantially contributed to the prosecution of
 the action. Where the court finds that the action was based primarily on
 disclosures of specific information (other than information provided  by
 the  person bringing the action) relating to allegations or transactions
 in a criminal, civil or administrative  hearing,  in  a  legislative  or
 administrative report, hearing, audit or investigation, or from the news
 media, the court may award such sums as it considers appropriate, but in
 no  case  more than ten percent of the proceeds, taking into account the
 significance of the information and the role of the  person  or  persons
 bringing the action in advancing the case to litigation. WHERE THE COURT
 FINDS  THAT  THE  ACTION WAS BASED ON DISCLOSURE OF SPECIFIC INFORMATION
 RELATED TO THE USE OF GOVERNMENT FUNDS DURING A DECLARATION OF  A  STATE
 OF EMERGENCY, THE COURT SHALL INCREASE THE PERCENTAGE OF THE PROCEEDS TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16306-04-0

 A. 10461                            2
 
 WHICH  THE PERSON COMMENCING SUCH QUI TAM CIVIL ACTION IS ENTITLED BY UP
 TO FIVE PERCENT MORE THAN THE MAXIMUM  PERCENTAGE  ALLOWED  PURSUANT  TO
 THIS PARAGRAPH. Any such person shall also receive an amount for reason-
 able  expenses  that  the court finds to have been necessarily incurred,
 reasonable attorneys' fees, and costs pursuant to article eighty-one  of
 the  civil  practice  law  and rules. All such expenses, fees, and costs
 shall be awarded against the defendant.
   (b) If the attorney general or a local government does  not  elect  to
 intervene  or convert the action, and the action is successful, then the
 person or persons  who  initiated  the  qui  tam  action  which  obtains
 proceeds  shall  be  entitled  to receive between twenty-five and thirty
 percent of the proceeds recovered in the action  or  settlement  of  the
 action.  The  court  shall  determine  the percentage of the proceeds to
 which a person commencing a qui tam civil action is entitled, by consid-
 ering the extent to which the plaintiff substantially contributed to the
 prosecution of the action. WHERE THE COURT FINDS  THAT  THE  ACTION  WAS
 BASED  ON  DISCLOSURE  OF  SPECIFIC  INFORMATION  RELATED  TO THE USE OF
 GOVERNMENT FUNDS DURING A DECLARATION OF A STATE OF EMERGENCY, THE COURT
 SHALL INCREASE THE PERCENTAGE  OF  THE  PROCEEDS  TO  WHICH  THE  PERSON
 COMMENCING  SUCH  QUI  TAM CIVIL ACTION IS ENTITLED BY UP TO TEN PERCENT
 MORE THAN THE MAXIMUM PERCENTAGE ALLOWED  PURSUANT  TO  THIS  PARAGRAPH.
 Such  person  shall  also receive an amount for reasonable expenses that
 the court finds to have been necessarily incurred, reasonable attorneys'
 fees, and costs pursuant to article eighty-one of the civil practice law
 and rules. All such expenses, fees, and costs shall be  awarded  against
 the defendant.
   § 2. This act shall take effect immediately.