NY State Senate Bill 2025-S2454

Senate Bill S2454

2025-2026 Legislative Session

Prohibits state reimbursement of campaign and political committees and legal defense funds for payments made on behalf of the criminal or civil defense of a state employee

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Current Bill Status - In Senate Committee Ethics And Internal Governance Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 17, 2025	referred to ethics and internal governance

co-Sponsors

2025-S2454 (ACTIVE) - Details

See Assembly Version of this Bill:: A298
Current Committee:: Senate Ethics And Internal Governance
Law Section:: Public Officers Law
Laws Affected:: Amd §§19 & 17, Pub Off L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S2262
2017-2018: S2394
2019-2020: S295
2021-2022: S164, A8138
2023-2024: S150, A148

2025-S2454 (ACTIVE) - Summary

Prohibits state reimbursement of campaign and political committees, or legal defense funds, for payments made on behalf of the criminal or civil defense of a state employee.

2025-S2454 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2454

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the public officers law, in relation to prohibiting
reimbursement of campaign and political committees and legal defense
funds for defense costs incurred on behalf of state employees

 
PURPOSE:

To close a loophole in New York's ethics laws, preventing state taxpayer
money from being used to reimburse campaign or legal defense accounts.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends subdivision 2 of § 19 of the public offi-
cers law preventing any state reimbursement to a campaign account or
legal defense account for attorney's fees and litigation expenses to a
public official after an acquittal or dismissal. Additionally, no
reimbursement shall be made to a state employee who has a legal defense
account until all funds from such account have been expended.

Section two of the bill amends subdivision 2 of § 17 of the public offi-
cers law to prevent the state from reimbursing campaign accounts or
legal defense funds in the context of civil litigation as well

Section three sets the effective date.

 
JUSTIFICATION:

Currently, when a state employee is acquitted of, criminal charges aris-
ing from his or her duties while in office, or has such charges
dismissed, the State provides reimbursement for all attorney's fees and
litigation expenses, subject to the approval of the Attorney General and
the Comptroller. The situation has arisen, however, where state employ-
ees have paid for such costs using campaign funds or a special legal
defense fund, and subsequently require the taxpayers to reimburse
dormant campaign or legal defense accounts.

This bill will protect taxpayers by preventing reimbursements to a
campaign committee or legal defense fund. Additionally, the bill
provides that if a litigant has a legal defense fund, he or she will be
required to expend all money in the account before he or she would be
entitled to any taxpayer reimbursement.

 
LEGISLATIVE HISTORY:

2024: S150A (Gianaris) PASSED SENATE / A148A (Cruz) died in governmental
operations

2023: S150 (Gianaris) PASSED SENATE / A148 (Cruz) died in governmental
operations

2022: S164 (Gianaris) PASSED SENATE / A8138 (Cruz) died in governmental
operations

2021: S164 (Gianaris) PASSED SENATE / A8138 (Cruz) died in governmental
operations
2019-20: S295 (Gianaris) died in Investigations and Governmental Oper-
ations

2018: S2394 (Gianaris) died in Finance

2017: S2394 (Gianaris) died in Investigations and Governmental Oper-
ations / A8576 (Kavanagh) died in governmental operations

2016: S2262 (Gianaris) died in Finance / A5618 (Kavanagh) died in
governmental operations

2015: S2262 (Gianaris) died in Investigations and Governmental Oper-
ations / A5618 (Kavanagh) died in governmental operations

 
FISCAL IMPLICATIONS:

Such reimbursements in the past have totaled millions of dollars for
single cases. Preventing such reimbursements would result in substantial
savings for the state.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any pending
claim not paid by the state before such effective date, and to any new
claim submitted to the state on or after such effective date.

2025-S2454 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2454
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2025
                                ___________
 
 Introduced by Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER, WEBB -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Ethics and Internal Governance
 
 AN  ACT  to  amend  the  public officers law, in relation to prohibiting
   reimbursement of campaign and political 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] SUCH EMPLOYEE'S  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]
 SUCH  EMPLOYEE'S  public employment or duties upon [his] SUCH EMPLOYEE'S
 acquittal or upon the dismissal of the criminal  charges  against  [him]
 THE  EMPLOYEE  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]  THE
 EMPLOYEE'S  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 THAT PAYS ALL OR
 ANY PORTION OF AN EMPLOYEE'S REASONABLE  ATTORNEYS'  FEES  AND/OR  LITI-
 GATION EXPENSES. REIMBURSEMENTS RECEIVED PURSUANT TO THIS SECTION BY THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00162-01-5

 S. 2454                             2
 
 EMPLOYEE  OR  THEIR  LEGAL COUNSEL SHALL NOT BE PAID BY SUCH EMPLOYEE OR
 LEGAL COUNSEL TO A CAMPAIGN OR  POLITICAL  COMMITTEE  OR  LEGAL  DEFENSE
 FUND.  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 SUCH FUND  OR
 FUNDS  HAVE  BEEN EXPENDED FOR THE EMPLOYEE'S REASONABLE ATTORNEYS' FEES
 AND/OR LITIGATION EXPENSES. PRIOR  TO  REIMBURSEMENT  BEING  ISSUED,  AN
 EMPLOYEE  AND  THEIR  LEGAL  COUNSEL  SHALL CERTIFY TO BOTH THE ATTORNEY
 GENERAL AND THE COMPTROLLER THAT THERE ARE NO  FUNDS  REMAINING  IN  ANY
 LEGAL  DEFENSE  FUND  ESTABLISHED  ON BEHALF OF THE EMPLOYEE AND THAT NO
 MONIES REQUESTED PURSUANT TO THIS SECTION WILL BE USED  TO  REIMBURSE  A
 CAMPAIGN OR POLITICAL COMMITTEE OR LEGAL DEFENSE FUND.
   (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] THEIR investigation  and  [his]  THEIR
 review  of the facts and circumstances, whether such reimbursement shall
 be paid. The attorney general shall notify the employee  in  writing  of
 such  determination.  Upon determining that such reimbursement should be
 provided, the attorney general shall so certify to the comptroller. Upon
 such certification,  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. Subdivision 2 of section 17 of the public officers law, as  added
 by chapter 466 of the laws of 1978 and paragraph (a) as amended by chap-
 ter 768 of the laws of 1985, is amended to read as follows:
   2. (a) Upon compliance by the employee with the provisions of subdivi-
 sion  four  of  this section, the state shall provide for the defense of
 the employee in any civil action or proceeding in any state  or  federal
 court  arising  out  of any alleged act or omission which occurred or is
 alleged in the complaint to have occurred while the employee was  acting
 within the scope of [his] THE EMPLOYEE'S public employment or duties; or
 which  is  brought  to  enforce  a provision of section nineteen hundred
 eighty-one or nineteen hundred eighty-three of title  forty-two  of  the
 United  States  code  and  the  act  or  omission  underlying the action
 occurred or is alleged in the  complaint  to  have  occurred  while  the
 employee  was  acting  within  the  scope of [his] THE EMPLOYEE'S public
 employment or duties.   This duty to provide for  a  defense  shall  not
 arise  where  such civil action or proceeding is brought by or on behalf
 of the state.
   (b) Subject to the conditions set  forth  in  paragraph  (a)  of  this
 subdivision,  the  employee  shall  be entitled to be represented by the
 attorney general, provided, however, that the employee shall be entitled
 to representation by private counsel of [his] THE EMPLOYEE'S  choice  in
 any  civil  judicial proceeding whenever the attorney general determines
 S. 2454                             3
 
 based upon [his] THEIR investigation and review of the facts and circum-
 stances of the case that representation by the attorney general would be
 inappropriate, or whenever  a  court  of  competent  jurisdiction,  upon
 appropriate  motion  or  by  a  special  proceeding,  determines  that a
 conflict of interest exists and that the  employee  is  entitled  to  be
 represented  by  private  counsel  of  [his]  THE EMPLOYEE'S choice. The
 attorney general shall notify the employee in writing of  such  determi-
 nation  that the employee is entitled to be represented by private coun-
 sel. The attorney general may require, as a condition to payment of  the
 fees  and  expenses  of  such representation, that appropriate groups of
 such employees be represented by the same counsel.  If the  employee  or
 group  of  employees  is  entitled  to representation by private counsel
 under the provisions of this section,  the  attorney  general  shall  so
 certify  to  the  comptroller. Reasonable attorneys' fees and litigation
 expenses shall be paid by the state to such private counsel from time to
 time during the pendency of the civil action or  proceeding  subject  to
 certification  that the employee is entitled to representation under the
 terms and conditions of this section by  the  head  of  the  department,
 commission,  division,  office  or  agency  in  which  such  employee is
 employed [and] upon the  audit  and  warrant  of  the  comptroller,  AND
 SUBJECT  TO THE RESTRICTIONS SET FORTH IN PARAGRAPH (C) OF THIS SUBDIVI-
 SION. Any dispute with respect to representation of  multiple  employees
 by  a single counsel or the amount of litigation expenses or the reason-
 ableness of attorneys' fees shall be resolved by the court  upon  motion
 or by way of a special proceeding.
   (c) NO FUNDS SHALL BE PAID PURSUANT TO THIS SECTION TO ANY CAMPAIGN OR
 POLITICAL  COMMITTEE  OR  LEGAL DEFENSE FUND. FUNDS RECEIVED PURSUANT TO
 THIS SECTION BY THE EMPLOYEE OR THEIR LEGAL COUNSEL SHALL NOT BE PAID BY
 SUCH EMPLOYEE OR LEGAL COUNSEL TO A CAMPAIGN OR POLITICAL  COMMITTEE  OR
 LEGAL  DEFENSE  FUND.  FURTHERMORE,  AN EMPLOYEE ON WHOSE BEHALF A LEGAL
 DEFENSE FUND OR LEGAL DEFENSE FUNDS HAVE BEEN ESTABLISHED, SHALL NOT  BE
 ELIGIBLE  FOR  PAYMENT PURSUANT TO THIS SECTION UNTIL ALL MONEYS IN SUCH
 FUND OR FUNDS HAVE BEEN EXPENDED FOR THE  EMPLOYEE'S  REASONABLE  ATTOR-
 NEYS' FEES AND/OR LITIGATION EXPENSES. PRIOR TO PAYMENT BEING ISSUED, AN
 EMPLOYEE  AND  THEIR  LEGAL  COUNSEL  SHALL CERTIFY TO BOTH THE ATTORNEY
 GENERAL AND THE COMPTROLLER THAT THERE ARE NO  FUNDS  REMAINING  IN  ANY
 LEGAL  DEFENSE  FUND  ESTABLISHED  ON BEHALF OF THE EMPLOYEE AND THAT NO
 MONIES REQUESTED PURSUANT TO THIS SECTION WILL BE USED  TO  REIMBURSE  A
 CAMPAIGN OR POLITICAL COMMITTEE OR LEGAL DEFENSE FUND.
   (D) Where the employee delivers process and a request for a defense to
 the  attorney  general  as required by subdivision four of this section,
 the attorney general  shall  take  the  necessary  steps  including  the
 retention  of private counsel under the terms and conditions provided in
 paragraph (b) of subdivision two  of  this  section  on  behalf  of  the
 employee  to avoid entry of a default judgment pending resolution of any
 question pertaining to the obligation to provide for a defense.
   § 3. This act shall take effect immediately and  shall  apply  to  any
 pending  claim  not paid by the state before such effective date, and to
 any new claim submitted to the state on or after such effective date.

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Senate Bill S2454

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Sponsored By

Michael Gianaris