NY State Senate Bill 2021-S1120

Senate Bill S1120

2021-2022 Legislative Session

Increases 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

download bill text pdf

Archive: Last Bill Status Via A1431 - Passed Senate

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2022	returned to assembly passed senate 3rd reading cal.1745 substituted for s1120
Jun 01, 2022	substituted by a1431 ordered to third reading cal.1745 committee discharged and committed to rules
Jan 05, 2022	referred to finance
Jan 07, 2021	referred to finance

Votes

- Jun 1, 2022 - Floor Vote
  A1431
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 1, 2022
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Jun 1, 2022 - Rules Committee Vote
  S1120
  
  20
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 1, 2022
      
      aye (20)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Ritchie
      
      Savino
      
      Sepúlveda
      
      Stewart-Cousins
      
      aye wr (1)
      
      Lanza

2021-S1120 (ACTIVE) - Details

See Assembly Version of this Bill:: A1431
Law Section:: State Finance Law
Laws Affected:: Amd §190, St Fin L
Versions Introduced in 2019-2020 Legislative Session:: S8353, A10461

2021-S1120 (ACTIVE) - Summary

Requires the court to increase 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.

2021-S1120 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1120

SPONSOR: KAMINSKY
 
TITLE OF BILL:

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

 
PURPOSE:

This legislation will permit courts to increase the award granted to
persons who initiate a qui tam action related to information disclosures
during a declaration of a state of emergency.

 
SUMMARY OF PROVISIONS:

Section 1: Amends the state finance law to increase the amount awarded
to an individual who initiates the qui tam action if the action is based
on the disclosure of specific information on the use of government funds

during a declaration of a state of emergency.

Section 2: Effective date.

 
JUSTIFICATION:

COVID-19 is a public health crisis, which has crippled the economy,
disrupted supply chains and financial markets, and has created a short-
age of vital materials like ventilators, testing kits, and personal
protective equipment. In response to the pandemic, the state government
has taken unprecedented action to suspend normal procurement protocols
and spend billions of dollars to secure critical supplies and equipment
to prioritize the health and safety of New Yorkers. As with other states
of emergency like superstorm Sandy or after September 11th the need to
respond swiftly creates opportunities for perpetrators of fraud.

The Federal government has already announced it will "prioritize the
investigation and prosecution of Coronavirus-related fraud schemes" and
established a national hotline for whistleblowers to report suspected
fraud. Indeed, there are widespread media accounts of potentially frau-
dulent acts perpetrated on our state during the COVID-19 emergency and
the state has admitted that it had to cancel a number of large
contracts.

New York's False Claims Act helps combat fraud, since it allows private
citizens to file civil lawsuits on behalf of the government to help
recover defrauded money. By filing a qui tam whistleblower lawsuit,
citizens may be rewarded a percentage of the money recovered, depending
on the circumstances. This legislation will require courts to take into
consideration, when deciding the percentage of money to reward to a
private citizen, whether the information brought forward pertains to the
use of government funds during a state of emergency. If the government
prevails, the whistleblower will be able to recover five percent above
the base recovery amount. Currently, a successful whistleblower will
receive between 15 and 30 percent of the proceeds. With New York combat-
ing a pandemic, government funds are limited, and in such dire circum-
stances, we must incentivize whistleblowers to come forward with infor-
mation to assist the state recover funds and deter criminal dealings.
This legislation will change the current law to allow courts to increase
the amount of proceeds by up to 5 percent if the government intervenes,
10 percent if it does not, and the disclosure is about the use of
government funds defrauded during a state of emergency.

 
LEGISLATIVE HISTORY:

2020: S8353, Kaminsky. Referred to Finance.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S1120 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1120
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 7, 2021
                                ___________
 
 Introduced  by Sen. KAMINSKY -- 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  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01221-01-1

 S. 1120                             2
 
 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 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.

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