LBD10004-09-4
S. 9813 2
immediately transferred to the relevant public authority, public benefit
corporation, department, fund, program, or endowment; (5) moneys to be
refunded to an individual or entity as (i) an overpayment of a tax,
fine, penalty, fee, insurance premium, loan payment, charge or
surcharge; (ii) a return of seized assets, or (iii) a payment made in
error; (6) moneys to be used to prevent, abate, restore, mitigate, or
control any identifiable instance of prior or ongoing water, land or air
pollution; [and] (7) moneys deposited to the opioid settlement fund
established in section ninety-nine-nn of this chapter; AND (8) MONEYS TO
BE DISTRIBUTED PURSUANT TO SUBDIVISION FIVE OR SIX OF SECTION ONE
HUNDRED NINETY OF THIS CHAPTER.
§ 2. Subdivision 5 of section 188 of the state finance law, as added
by chapter 379 of the laws of 2010, is amended to read as follows:
5. "Material" means having a natural tendency to influence, or be
capable of influencing the payment or receipt of money or property. A
CLAIM, RECORD, OR STATEMENT IS MATERIAL IF IT HAS A NATURAL TENDENCY TO
INFLUENCE, OR IS CAPABLE OF INFLUENCING, THE PAYMENT OR RECEIPT OF MONEY
OR PROPERTY AT THE TIME IT IS PRESENTED, MADE, OR USED, OR CAUSED TO BE
PRESENTED, MADE, OR USED, REGARDLESS OF WHETHER IT ACTUALLY INFLUENCES
THE PAYMENT OR RECEIPT OF MONEY OR PROPERTY.
§ 3. Paragraph (h) of subdivision 1 and paragraph (a) of subdivision 4
of section 189 of the state finance law, paragraph (h) of subdivision 1
as amended by section 1 of part J of chapter 57 of the laws of 2018 and
paragraph (a) of subdivision 4 as amended by section 1 of part DD of
chapter 59 of the laws of 2023, are amended to read as follows:
(h) knowingly conceals or knowingly and improperly avoids or decreases
an obligation to pay or transmit money or property to the state or a
local government, or conspires to do the same; shall be liable to the
state or a local government, as applicable, for a civil penalty of not
less than six thousand dollars and not more than twelve thousand
dollars, as adjusted to be equal to the civil penalty allowed under the
federal False Claims Act, 31 U.S.C. sec. 3729, et seq., as amended, as
adjusted for inflation by the Federal Civil Penalties Inflation Adjust-
ment Act of 1990, as amended (28 U.S.C. 2461 note; Pub. L. No.
101-410), plus three times the amount of all damages, including conse-
quential damages, which the state or local government sustains because
of the act of that person. DAMAGES UNDER THIS SECTION SHALL BE CALCU-
LATED AND MULTIPLIED BEFORE ANY SUBTRACTIONS ARE MADE FOR COMPENSATORY
PAYMENTS OR CREDITS RECEIVED BY THE GOVERNMENT FROM ANY SOURCE, INCLUD-
ING BUT NOT LIMITED TO THE DEFENDANT.
(a) This section shall apply to tax law violations only if: (i) the
REVENUE, net income, or sales of [the] AT LEAST ONE 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, OR
THE VALUE OF THE ASSETS OF AT LEAST ONE PERSON AGAINST WHOM THE ACTION
IS BROUGHT EQUALS OR EXCEEDS FIVE MILLION DOLLARS DURING ANY TAXABLE
YEAR SUBJECT TO ANY ACTION BROUGHT PURSUANT TO THIS ARTICLE; and (ii)
the AGGREGATE damages TO THE STATE AND LOCAL GOVERNMENTS pleaded in such
action exceed [three hundred and fifty thousand] ONE MILLION dollars;
provided that for purposes of applying paragraph (h) of subdivision one
of this section to a tax law violation, the person is alleged to have
knowingly concealed or knowingly and improperly avoided an obligation to
pay taxes to the state or a local government.
§ 4. Section 190 of the state finance law, as added by section 39 of
part C of chapter 58 of the laws of 2007, subdivision 1, paragraphs (a)
and (b) of subdivision 2 and subdivision 9 as amended and the closing
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paragraphs of paragraphs (a) and (f) of subdivision 2 as added by chap-
ter 379 of the laws of 2010, paragraphs (d) and (e) of subdivision 2 as
amended by section 9, subdivision 4 as amended by section 9-a and subdi-
visions 6 and 7 as amended by section 9-b of part A of chapter 56 of the
laws of 2013, and paragraphs (a) and (b) of subdivision 6 as amended by
chapter 791 of the laws of 2022, is amended to read as follows:
§ 190. Civil actions for false claims. 1. Civil enforcement actions.
(A) The attorney general shall have the authority to investigate
violations under section one hundred eighty-nine of this article. If the
attorney general believes that a person has violated or is violating
such section, then the attorney general may bring a civil action on
behalf of the people of the state of New York or on behalf of a local
government against such person. A local government also shall have the
authority to investigate violations that may have resulted in damages to
such local government under section one hundred eighty-nine of this
article, and may bring a civil action on its own behalf, or on behalf of
any subdivision of such local government, to recover damages sustained
by such local government as a result of such violations. No action may
be filed pursuant to this subdivision against the federal government,
the state or a local government, or any officer or employee thereof
acting in [his or her] THEIR official capacity. The attorney general
shall consult with the office of medicaid inspector general prior to
filing any action related to the medicaid program.
(B) THE ATTORNEY GENERAL IS EMPOWERED TO SUBPOENA WITNESSES, COMPEL
THEIR ATTENDANCE, EXAMINE THEM UNDER OATH BEFORE THE ATTORNEY GENERAL OR
A MAGISTRATE, A COURT OF RECORD OR A JUDGE OR JUSTICE THEREOF AND
REQUIRE THE PRODUCTION OF ANY BOOKS OR PAPERS WHICH THE ATTORNEY GENERAL
DEEMS RELEVANT OR MATERIAL TO THE INQUIRY. IF THE ATTORNEY GENERAL
BELIEVES IT TO BE IN THE PUBLIC INTEREST THAT AN INVESTIGATION BE MADE,
THE ATTORNEY GENERAL MAY EITHER REQUIRE OR PERMIT ANY PERSON TO FILE
WITH THE ATTORNEY GENERAL A STATEMENT IN WRITING UNDER OATH OR OTHERWISE
AS TO ALL THE FACTS AND CIRCUMSTANCES CONCERNING THE SUBJECT MATTER
WHICH THE ATTORNEY GENERAL BELIEVES IT IS IN THE PUBLIC INTEREST TO
INVESTIGATE, AND FOR THAT PURPOSE MAY PRESCRIBE FORMS UPON WHICH SUCH
STATEMENTS SHALL BE MADE. THE ATTORNEY GENERAL MAY ALSO REQUIRE SUCH
OTHER DATA AND INFORMATION AS THE ATTORNEY GENERAL MAY DEEM RELEVANT AND
MAY MAKE SUCH SPECIAL AND INDEPENDENT INVESTIGATIONS AS THE ATTORNEY
GENERAL MAY DEEM NECESSARY IN CONNECTION WITH THE MATTER. THE ATTORNEY
GENERAL'S INVESTIGATIVE POWERS SHALL NOT ABATE OR TERMINATE BY REASON OF
ANY ACTION OR PROCEEDING BROUGHT BY THE ATTORNEY GENERAL, A LOCAL
GOVERNMENT, OR A QUI TAM PLAINTIFF UNDER THIS ARTICLE.
2. Qui tam civil actions. (a) Any person may bring a qui tam civil
action for a violation of section one hundred eighty-nine of this arti-
cle on behalf of the person and the people of the state of New York or a
local government. No action may be filed pursuant to this subdivision
against the federal government, the state or a local government, or any
officer or employee thereof acting in [his or her] THEIR official capac-
ity.
For purposes of subparagraphs (i) and (iv) of paragraph (a) of subdi-
vision eight of section seventy-three of the public officers law, any
activity by a former government employee in connection with the securing
of rights, protections or benefits related to preparing or filing an
action under this article shall not be deemed to be an appearance or
practice before any agency.
(b) A copy of the complaint and written disclosure of substantially
all material evidence and information the person possesses shall be
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served on the state pursuant to subdivision one of section three hundred
seven of the civil practice law and rules. Any complaint filed in a
court of the state of New York shall be filed in supreme court in
camera, shall remain under seal for at least sixty days, and shall not
be served on the defendant until the court so orders. The seal shall not
preclude the attorney general, a local government, or the qui tam plain-
tiff from serving the complaint, any other pleadings, or the written
disclosure of substantially all material evidence and information
possessed by the person bringing the action, on relevant FEDERAL, state,
or local government agencies, or on law enforcement authorities of the
state, a local government, THE FEDERAL GOVERNMENT, or other jurisdic-
tions, so that the actions may be investigated or prosecuted, except
that such seal applies to the agencies or authorities so served to the
same extent as the seal applies to other parties in the action.
If the allegations in the complaint allege a violation of section one
hundred eighty-nine of this article involving damages to a local govern-
ment, then the attorney general may at any time provide a copy of such
complaint and written disclosure to the attorney for such local govern-
ment; provided, however, that if the allegations in the complaint
involve damages only to a city with a population of one million or more,
or only to the state and such a city, then the attorney general shall
provide such complaint and written disclosure to the corporation counsel
of such city within thirty days.
The state may elect to supersede or intervene and proceed with the
action, or to authorize a local government that may have sustained
damages to supersede or intervene, within sixty days after it receives
both the complaint and the material evidence and information; provided,
however, that if the allegations in the complaint involve damages only
to a city with a population of one million or more, then the attorney
general may not supersede or intervene in such action without the
consent of the corporation counsel of such city. The attorney general
shall consult with the office of the medicaid inspector general prior to
superseding or intervening in any action related to the medicaid
program. The attorney general may, for good cause shown, move the court
for extensions of the time during which the complaint remains under seal
under this subdivision. Any such motions may be supported by affidavits
or other submissions in camera.
(c) Prior to the expiration of the sixty day period or any extensions
obtained under paragraph (b) of this subdivision, the attorney general
shall notify the court that [he or she] THEY:
(i) [intends] INTEND to file a complaint against the defendant on
behalf of the people of the state of New York or a local government, and
thereby be substituted as the plaintiff in the action and convert the
action in all respects from a qui tam civil action brought by a private
person into a civil enforcement action by the attorney general under
subdivision one of this section;
(ii) [intends] INTEND to intervene in such action, as of right, so as
to aid and assist the plaintiff in the action; or
(iii) if the action involves damages sustained by a local government,
[intends] INTEND to grant the local government permission to: (A) file
and serve a complaint against the defendant, and thereby be substituted
as the plaintiff in the action and convert the action in all respects
from a qui tam civil action brought by a private person into a civil
enforcement action by the local government under subdivision one of this
section; or (B) intervene in such action, as of right, so as to aid and
assist the plaintiff in the action.
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The attorney general shall provide the local government with a copy of
any such notification at the same time the court is notified.
(d) If the state notifies the court that it intends to file a
complaint against the defendant and thereby be substituted as the plain-
tiff in the action, or to permit a local government to do so, such
complaint, whether filed separately or as an amendment to the qui tam
plaintiff's complaint, must be filed within thirty days after the
notification to the court. For statute of limitations purposes, any such
complaint filed by the state or a local government shall relate back to
the filing date of the complaint of the qui tam plaintiff, to the extent
that the cause of action of the state or local government arises out of
the conduct, transactions, or occurrences set forth, or attempted to be
set forth, in the complaint of the qui tam plaintiff.
(e) If the state notifies the court that it intends to intervene in
the action, or to permit a local government to do so, then such motion
to intervene, whether filed separately or as an amendment to the qui tam
plaintiff's complaint, shall be filed within thirty days after the
notification to the court. For statute of limitations purposes, any
complaint filed by the state or a local government, whether filed sepa-
rately or as an amendment to the qui tam plaintiff's complaint, shall
relate back to the filing date of the complaint of the qui tam plain-
tiff, to the extent that the cause of action of the state or local
government arises out of the conduct, transactions, or occurrences set
forth, or attempted to be set forth, in the complaint of the qui tam
plaintiff.
(f) If the state declines to participate in the action or to authorize
participation by a local government, the qui tam action may proceed
subject to judicial review under this section, the civil practice law
and rules, and other applicable law. ONCE THIRTY DAYS HAVE PASSED
FOLLOWING THE DATE ON WHICH THE STATE WAS REQUIRED TO OR IN FACT DID
INFORM THE COURT PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION WHETHER
IT INTENDS TO SUPERSEDE OR INTERVENE, OR AUTHORIZE A LOCAL GOVERNMENT TO
DO SO, (I) A QUI TAM CLAIM ALLEGING A VIOLATION OF SECTION ONE HUNDRED
EIGHTY-NINE OF THIS ARTICLE ON BEHALF OF THE STATE SHALL BE DISCONTINUED
ONLY WITH THE CONSENT OF THE ATTORNEY GENERAL OR A COURT ORDER; (II) A
QUI TAM CLAIM ALLEGING A VIOLATION OF SECTION ONE HUNDRED EIGHTY-NINE OF
THIS ARTICLE ON BEHALF OF THE STATE AND A LOCAL GOVERNMENT SHALL BE
DISCONTINUED ONLY WITH THE CONSENT OF THE ATTORNEY GENERAL OR A COURT
ORDER; AND (III) A QUI TAM CLAIM ALLEGING A VIOLATION OF SECTION ONE
HUNDRED EIGHTY-NINE OF THIS ARTICLE SOLELY ON BEHALF OF A LOCAL GOVERN-
MENT SHALL BE DISCONTINUED ONLY WITH THE CONSENT OF THE ATTORNEY GENER-
AL, SUCH LOCAL GOVERNMENT, OR A COURT ORDER.
The qui tam plaintiff shall provide the state or any applicable local
government with a copy of any document filed with the court on or about
the date it is filed, or any order issued by the court on or about the
date it is issued. A qui tam plaintiff shall notify the state or any
applicable local government within five business days of any decision,
order or verdict resulting in judgment in favor of the state or local
government. THE QUI TAM PLAINTIFF SHALL PROVIDE THE STATE OR LOCAL
GOVERNMENT A DRAFT OF ANY PROPOSED SETTLEMENT AGREEMENT AFFECTING THE
QUI TAM ACTION AT LEAST FIVE BUSINESS DAYS BEFORE EXECUTING ANY SETTLE-
MENT AGREEMENT.
3. Time to answer. If the state decides to participate in a qui tam
action or to authorize the participation of a local government, the
court shall order that the qui tam complaint be unsealed and served at
the time of the filing of the complaint or intervention motion by the
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state or local government. After the complaint is unsealed, or if a
complaint is filed by the state or a local government pursuant to subdi-
vision one of this section, the defendant shall be served with the
complaint and summons pursuant to article three of the civil practice
law and rules. A copy of any complaint which alleges that damages were
sustained by a local government shall also be served on such local
government. The defendant shall be required to respond to the summons
and complaint within the time allotted under rule three hundred twenty
of the civil practice law and rules.
4. Related actions. When a person brings a qui tam action under this
section, no person other than the attorney general, or a local govern-
ment attorney acting pursuant to subdivision one of this section or
paragraph (b) of subdivision two of this section, may intervene or bring
a related civil action based upon the facts underlying the pending
action; provided, however, that nothing in this subdivision shall be
deemed to deny persons the right, upon leave of court, to file briefs
amicus curiae.
5. Rights of the parties of qui tam actions. (a) If the attorney
general elects to convert the qui tam civil action into an attorney
general enforcement action, then the state shall have the primary
responsibility for prosecuting the action. If the attorney general
elects to intervene in the qui tam civil action then the state and the
person who commenced the action, and any local government which
sustained damages and intervenes in the action, shall share primary
responsibility for prosecuting the action. If the attorney general
elects to permit a local government to convert the action into a civil
enforcement action, then the local government shall have primary respon-
sibility for investigating and prosecuting the action. If the action
involves damages to a local government but not the state, and the local
government intervenes in the qui tam civil action, then the local
government and the person who commenced the action shall share primary
responsibility for prosecuting the action. Under no circumstances shall
the state or a local government be bound by an act of the person bring-
ing the original action. Such person shall have the right to continue as
a party to the action, subject to the limitations set forth in paragraph
(b) of this subdivision. Under no circumstances shall the state be bound
by the act of a local government that intervenes in an action involving
damages to the state. If neither the attorney general nor a local
government intervenes in the qui tam action then the qui tam plaintiff
shall have the responsibility for prosecuting the action, subject to the
attorney general's right to intervene at a later date upon a showing of
good cause.
(b)(i) The state may move to dismiss the action notwithstanding the
objections of the person initiating the action if the person has been
served with the motion to dismiss and the court has provided the person
with an opportunity to be heard on the motion. If the action involves
damages to both the state and a local government, then the state shall
consult with such local government before moving to dismiss the action.
If the action involves damages sustained by a local government but not
the state, then the local government may move to dismiss the action
notwithstanding the objections of the person initiating the action if
the person has been served with the motion to dismiss and the court has
provided the person with an opportunity to be heard on the motion.
(ii) The state or a local government may settle the action with the
defendant notwithstanding the objections of the person initiating the
action if the court determines, after an opportunity to be heard, that
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the proposed settlement is fair, adequate, and reasonable with respect
to all parties under all the circumstances. Upon a showing of good
cause, such opportunity to be heard may be held in camera.
(iii) Upon a showing by the attorney general or a local government
that the original plaintiff's unrestricted participation during the
course of the litigation would interfere with or unduly delay the prose-
cution of the case, or would be repetitious or irrelevant, or upon a
showing by the defendant that the original qui tam plaintiff's unre-
stricted participation during the course of the litigation would be for
purposes of harassment or would cause the defendant undue burden, the
court may, in its discretion, impose limitations on the original
plaintiff's participation in the case, such as:
(A) limiting the number of witnesses the person may call;
(B) limiting the length of the testimony of such witnesses;
(C) limiting the person's cross-examination of witnesses; or
(D) otherwise limiting the participation by the person in the liti-
gation.
(c) Notwithstanding any other provision of law, whether or not the
attorney general or a local government elects to supersede or intervene
in a qui tam civil action, the attorney general and such local govern-
ment may elect to pursue any remedy available with respect to the crimi-
nal or civil prosecution of the presentation of false claims, including
any administrative proceeding to determine a civil money penalty or to
refer the matter to the office of the medicaid inspector general for
medicaid related matters. If any such alternate civil remedy is pursued
in another proceeding, the person initiating the action shall have the
same rights in such proceeding as such person would have had if the
action had continued under this section.
(d) Notwithstanding any other provision of law, whether or not the
attorney general elects to supersede or intervene in a qui tam civil
action, or to permit a local government to supersede or intervene in the
qui tam civil action, upon a showing by the state or local government
that certain actions of discovery by the person initiating the action
would interfere with the state's or a local government's investigation
or prosecution of a criminal or civil matter arising out of the same
facts, the court may stay such discovery for a period of not more than
sixty days. Such a showing shall be conducted in camera. The court may
extend the period of such stay upon a further showing in camera that the
state or a local government has pursued the criminal or civil investi-
gation or proceedings with reasonable diligence and any proposed discov-
ery in the civil action will interfere with the ongoing criminal or
civil investigation or proceedings.
6. Awards to qui tam plaintiff. (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] ANY qui tam civil action
is entitled, by considering the extent to which the plaintiff substan-
tially 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
S. 9813 8
action) relating to allegations or transactions in a criminal, civil or
administrative hearing, in a legislative or administrative report, hear-
ing, 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 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 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.
(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] ANY 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 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.
(c) With the exception of a court award of costs, expenses or attor-
neys' fees, any payment to a person pursuant to this paragraph shall be
made from the proceeds.
(d) If the attorney general or a local government does not proceed
with the action 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.
7. Costs, expenses, disbursements and attorneys' fees. In any action
brought pursuant to this article, the court may award any local govern-
ment that participates as a party in the action an amount for reasonable
expenses which the court finds to have been necessarily incurred, plus
reasonable attorneys' fees, plus costs pursuant to article eighty-one of
the civil practice law and rules. All such expenses, fees and costs
shall be awarded directly against the defendant and shall not be charged
from the proceeds, but shall only be awarded if a local government
prevails in the action.
8. Exclusion from recovery. If the court finds that the qui tam civil
action was brought by a person who planned or initiated the violation of
S. 9813 9
section one hundred eighty-nine of this article upon which the action
was brought, then the court may, to the extent the court considers
appropriate, reduce the share of the proceeds of the action which the
person would otherwise be entitled to receive under subdivision six of
this section, taking into account the role of such person in advancing
the case to litigation and any relevant circumstances pertaining to the
violation. If the person bringing the qui tam civil action is convicted
of criminal conduct arising from [his or her] THEIR role in the
violation of section one hundred eighty-nine of this article, that
person shall be dismissed from the qui tam civil action and shall not
receive any share of the proceeds of the action. Such dismissal shall
not prejudice the right of the attorney general to supersede or inter-
vene in such action and to civilly prosecute the same on behalf of the
state or a local government.
9. Certain actions barred. (a) The court shall dismiss a qui tam
action under this article if:
(i) it is based on allegations or transactions which are the subject
of a pending civil action or an administrative action in which the state
or a local government is already a party;
(ii) the state or local government has reached a binding settlement or
other agreement with the person who violated section one hundred eight-
y-nine of this article resolving the matter and such agreement has been
approved in writing by the attorney general, or by the applicable local
government attorney; or
(iii) against a member of the legislature, a member of the judiciary,
or a senior executive branch official if the action is based on evidence
or information known to the state when the action was brought.
(b) The court shall dismiss a qui tam action under this article,
unless opposed by the state or an applicable local government, or unless
the qui tam plaintiff is an original source of the information, if
substantially the same allegations or transactions as alleged in the
action were publicly disclosed:
(i) in a state or local government criminal, civil, or administrative
hearing in which the state or a local government or its agent is a
party;
(ii) in a federal, New York state or New York local government report,
hearing, audit, or investigation that is made on the public record or
disseminated broadly to the general public; provided that such informa-
tion shall not be deemed "publicly disclosed" in a report or investi-
gation because it was disclosed or provided pursuant to article six of
the public officers law, or under any other federal, state or local law,
rule or program enabling the public to request, receive or view docu-
ments or information in the possession of public officials or public
agencies;
(iii) in the news media, provided that such allegations or trans-
actions are not "publicly disclosed" in the "news media" merely because
information of allegations or transactions have been posted on the
internet or on a computer network.
(C) THIS SUBDIVISION IS NOT JURISDICTIONAL.
10. Liability. Neither the state nor any local government shall be
liable for any expenses which any person incurs in bringing a qui tam
civil action under this article.
§ 5. Paragraph (b) of subdivision 16 of section 63 of the executive
law, as amended by chapter 171 of the laws of 2022, is amended to read
as follows:
S. 9813 10
(b) Paragraph (a) of this subdivision shall not apply to any provision
in the resolution of a claim or cause of action providing (1) moneys to
be distributed to the federal government, to a local government, or to
any holder of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2) moneys to be
distributed solely or exclusively as a payment of damages or restitution
to individuals or entities that were specifically injured or harmed by
the defendant's or settling party's conduct and that are identified in,
or can be identified by the terms of, the relevant judgment, stipu-
lation, decree, agreement to settle, assurance of discontinuance, or
relevant instrument resolving the claim or cause of action; (3) moneys
recovered or obtained by the attorney general where application of para-
graph (a) of this subdivision is prohibited by federal law, rule, or
regulation, or would result in the reduction or loss of federal funds or
eligibility for federal benefits pursuant to federal law, rule, or regu-
lation; (4) moneys recovered or obtained by or on behalf of a public
authority, a public benefit corporation, the department of taxation and
finance, the workers' compensation board, the New York state higher
education services corporation, the tobacco settlement financing corpo-
ration, a state or local retirement system, an employee health benefit
program administered by the New York state department of civil service,
the Title IV-D child support fund, the lottery prize fund, the abandoned
property fund, or an endowment of the state university of New York or
any unit thereof or any state agency, provided that all of the moneys
received or recovered are immediately transferred to the relevant public
authority, public benefit corporation, department, fund, program, or
endowment; (5) moneys to be refunded to an individual or entity as (i)
an overpayment of a tax, fine, penalty, fee, insurance premium, loan
payment, charge or surcharge; (ii) a return of seized assets; or (iii) a
payment made in error; (6) moneys to be used to prevent, abate, restore,
mitigate or control any identifiable instance of prior or ongoing water,
land or air pollution; [and/or] (7) state moneys received as part of any
statewide opioid settlement agreements as defined in section 25.18 of
the mental hygiene law, to be spent on eligible expenditures as defined
in section 25.18 of the mental hygiene law; AND/OR (8) MONEYS TO BE
DISTRIBUTED PURSUANT TO SUBDIVISION FIVE OR SIX OF SECTION ONE HUNDRED
NINETY OF THE STATE FINANCE LAW.
§ 6. Section 171 of the tax law is amended by adding a new subdivision
twenty-ninth to read as follows:
TWENTY-NINTH. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,
HAVE AUTHORITY TO DIVULGE OR MAKE KNOWN TO THE ATTORNEY GENERAL AND THE
ATTORNEY GENERAL'S SPECIFICALLY-IDENTIFIED ASSISTANTS ANY PARTICULARS
SET FORTH IN ANY RETURN OR REPORT REQUIRED TO BE MADE UNDER THE TAX LAW
SO THAT POTENTIAL VIOLATIONS OF THE NEW YORK FALSE CLAIMS ACT MAY BE
INVESTIGATED OR PROSECUTED. ANY INFORMATION PROVIDED TO THE ATTORNEY
GENERAL PURSUANT TO THIS AUTHORITY (I) SHALL BE SPECIALLY MARKED AND
SHALL BE KEPT BY THE ATTORNEY GENERAL IN A SEGREGATED FILE, ACCESS TO
WHICH SHALL BE LIMITED TO THE ATTORNEY GENERAL AND THE SPECIFICALLY-I-
DENTIFIED ASSISTANTS, (II) SHALL NOT BE DIVULGED OR MADE KNOWN TO ANYONE
ELSE EXCEPT AS PROVIDED BELOW, AND (III) SHALL BE EXEMPT FROM DISCLOSURE
UNDER THE FREEDOM OF INFORMATION LAW. NOTWITHSTANDING ANY PROVISION OF
LAW TO THE CONTRARY, THE COMMISSIONER MAY AUTHORIZE THE ATTORNEY GENERAL
AND THE ATTORNEY GENERAL'S SPECIFICALLY-IDENTIFIED ASSISTANTS TO DIVULGE
OR MAKE KNOWN ANY PARTICULARS IN ANY SUCH REPORT AS NECESSARY TO INVES-
TIGATE OR PROSECUTE POTENTIAL VIOLATIONS OF ARTICLE THIRTEEN OF THE
STATE FINANCE LAW.
S. 9813 11
§ 7. Section 190-b of the state finance law, as added by section 2 of
part J of chapter 57 of the laws of 2018, is amended to read as follows:
§ 190-b. [Medicaid fraud] FALSE CLAIMS ACT recovery reporting. The
attorney general shall make an annual report to the temporary president
of the senate, speaker of the assembly, chair of the senate finance
committee, chair of the assembly ways and means committee, chair of the
senate health committee, and chair of the assembly health committee by
April fifteenth of each year. Such report shall include the amount of
monies recovered by the [medicaid fraud control unit] ATTORNEY GENERAL
pursuant to the false claims act for the preceding calendar year, DELIN-
EATED BY THREE SEPARATE CATEGORIES: (1) MONEY RECOVERED BY THE MEDICAID
FRAUD CONTROL UNIT; (2) MONEY RECOVERED IN CASES INVOLVING FRAUDS UNRE-
LATED TO MEDICAID FRAUD OR VIOLATIONS OF THE TAX LAW; AND (3) MONEY
RECOVERED IN CASES INVOLVING VIOLATIONS OF THE TAX LAW.
§ 8. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of all further judicial review, the
judgment shall not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the clause, sentence, para-
graph, section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
§ 9. This act shall take effect immediately and shall apply to any
pending cause of action brought pursuant to article 13 of the state
finance law; provided however, that no pending cause of action shall be
dismissed for failure to plead one million dollars in damages if that
action pleads damages in excess of three hundred fifty thousand dollars.
