S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8815
 
                             I N  S E N A T E
 
                              April 20, 2022
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation to the liability of a
   person who presents false claims for money or property to the state or
   a local government
 
   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 4 of section 189 of
 the state finance law, as amended by section 8 of part A of  chapter  56
 of the laws of 2013, are amended to read as follows:
   (a)  This section shall apply to claims, records, [or] statements, AND
 OBLIGATIONS made under the tax law only if: (i) the net income or  sales
 of  the  person against whom the action is brought equals or exceeds one
 million dollars for any taxable  year  subject  to  any  action  brought
 pursuant to this article; (ii) the damages pleaded in such action exceed
 three  hundred  and  fifty  thousand  dollars;  [and (iii) the person is
 alleged to have violated paragraph (a), (b), (c), (d), (e), (f)  or  (g)
 of  subdivision  one of this section; provided, however, that nothing in
 this subparagraph shall be deemed to modify or restrict the  application
 of such paragraphs to any act alleged that relates to a violation of the
 tax  law] AND (III) FOR PURPOSES OF SUCH APPLICATION TO PARAGRAPH (H) OF
 SUBDIVISION ONE OF THIS SECTION,  KNOWLEDGE  SHALL  NOT  BE  ESTABLISHED
 BECAUSE  OF  AN  ACT  OCCURRING  BY  MISTAKE  OR  AS  A  RESULT  OF MERE
 NEGLIGENCE.
   (b) The attorney general shall consult with the  commissioner  of  the
 department of taxation and finance prior to filing or intervening in any
 action  under  this article that is based on the filing of false claims,
 records or statements made under the tax law ON ANY KNOWING VIOLATION OF
 THE TAX LAW. If the  state  declines  to  participate  or  to  authorize
 participation by a local government in such an action pursuant to subdi-
 vision  two  of  section one hundred ninety of this article, the qui tam
 plaintiff must obtain approval from the attorney general  before  making
 any  motion to compel the department of taxation and finance to disclose
 tax records.   NO QUI TAM  ACTION  ALLOWED  BY  THIS  SUBPARAGRAPH  THAT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15362-03-2
 S. 8815                             2
 
 ALLEGES  A VIOLATION OF PARAGRAPH (H) OF SUBDIVISION ONE OF THIS SECTION
 SHALL BE ALLOWED THAT IS OTHERWISE BARRED UNDER PARAGRAPH (A) OF  SUBDI-
 VISION NINE OF SECTION ONE HUNDRED NINETY OF THIS ARTICLE. IF THE ATTOR-
 NEY    GENERAL  OR  A  LOCAL  GOVERNMENT DOES NOT PROCEED WITH A QUI TAM
 ACTION ALLEGING A VIOLATION OF PARAGRAPH (H) OF SUBDIVISION ONE OF  THIS
 SECTION,  AND  THE  PERSON  BRINGING THE ACTION CONDUCTS THE ACTION, THE
 COURT MAY AWARD TO THE DEFENDANT  ITS  REASONABLE  ATTORNEYS'  FEES  AND
 EXPENSES  IF  THE DEFENDANT PREVAILS IN THE ACTION AND THE  COURT  FINDS
 THAT  THE CLAIM OF THE PERSON BRINGING THE ACTION WAS CLEARLY FRIVOLOUS,
 CLEARLY VEXATIOUS, OR BROUGHT PRIMARILY FOR PURPOSES OF HARASSMENT.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 false  claims, records, statements and obligations concealed, avoided or
 decreased on, prior to, or after such effective date.