S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6490--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 14, 2025
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the public officers law, in relation to enacting the
   "state taxpayer oversight and protection (STOP) act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "state taxpayer oversight and protection (STOP) act".
   § 2. Paragraphs (a) and (b) of subdivision 2  of  section  17  of  the
 public officers law, paragraph (a) as amended by chapter 768 of the laws
 of  1985  and paragraph (b) as added by chapter 466 of the laws of 1978,
 are amended to read as follows:
   (a) Upon compliance by the employee with the provisions of subdivision
 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]  THEIR  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] THEIR 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.  NO ATTORNEYS' FEES
 OR EXPENSES SHALL BE PAID IF INCURRED ON BEHALF OF AN  EMPLOYEE  IN  ANY
 ACTION BROUGHT BY THE EMPLOYEE AGAINST 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06627-06-5
              

 S. 6490--A                          2
 
 attorney general, provided, however, that the employee shall be entitled
 to  representation by private counsel of [his] THEIR choice in any civil
 judicial proceeding whenever the attorney general determines based  upon
 [his]  THEIR  investigation and review of the facts and circumstances of
 the case that representation by the attorney general would  be  inappro-
 priate,  or whenever a court of competent jurisdiction, upon appropriate
 motion or by a special proceeding, determines that a conflict of  inter-
 est  exists  and  that  the  employee  is  entitled to be represented by
 private counsel of [his] THEIR choice. The attorney general shall notify
 the employee in writing of such determination that the employee is enti-
 tled to be represented by private  counsel.  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 employ-
 ee  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 WHICH SHALL INCLUDE A DETERMINATION BY THE COMP-
 TROLLER  THAT  ANY  SUCH  FEES PAID BY THE STATE ARE PROPORTIONAL TO THE
 NEEDS OF THE CASE AND CONSISTENT WITH THE MANNER AND METHODS OF  DEFENSE
 EMPLOYED  IN  SIMILAR  OR REPRESENTATIVE CASES. ATTORNEYS' FEES SHALL BE
 PRESUMPTIVELY UNREASONABLE WHERE AN INDIVIDUAL HIRES OR EMPLOYS MULTIPLE
 LAW FIRMS ON THE SAME MATTER UNLESS SUCH EMPLOYEE  CAN  DEMONSTRATE  THE
 NEED  FOR  ADDITIONAL  ATTORNEYS WITH DISTINCT SUBJECT MATTER EXPERTISE.
 THE STATE SHALL NOT PAY ANY ATTORNEYS' FEES DEEMED UNREASONABLE  BY  THE
 COMPTROLLER.    Any  dispute  with respect to representation of multiple
 employees by a single counsel or the amount of  litigation  expenses  or
 the  reasonableness  of  attorneys'  fees shall be resolved by the court
 upon motion or by way of a special proceeding.
   § 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.