§ 634. Subrogation. 1. (a) Acceptance of an award made pursuant to
this article shall subrogate the state, to the extent of such award, to
any right or right of action accruing to the claimant or the victim to
recover payments on account of losses resulting from the crime with
respect to which the award is made. Upon the payment of an award, the
office may, by writing, notify the claimant that such claimant has
ninety days, or thirty days prior to the date of expiration of the
applicable statute of limitations, whichever period is shorter, within
which to commence an action against his assailant or any third party
who, as a result of the crime, may be liable in damages to the claimant.
If the claimant fails to commence an action within the time provided
herein, such failure shall, after written notification by the office to
the claimant, operate as an assignment of the claimant's cause of action
against the assailant or such other third party to the state; provided,
however, that should the claimant's cause of action be in an amount in
excess of the office's award, such assignment shall be for only that
portion of the cause of action which equals the amount of the award.

(b) The office of victim services shall review those claims that have
been approved by the office and that have resulted in an award in excess
of one thousand dollars for the purpose of identifying those causes of
action that are likely to result in recovery of the state's payment to
the victim. The office shall submit a list of these claims on a monthly
basis to the attorney general with all necessary information relating to
the case including whether the claimant's cause of action has been
assigned to the office.

(c) The attorney general may commence an action against the defendant
convicted of the crime or third party for money damages to the extent of
the award paid, and the claimant shall retain a right of action, subject
to defenses, to recover damages for the full amount of loss incurred by
him as a result of the crime less the amount assigned to the state by
operation of this subdivision. Notwithstanding any other provision of
law, an action brought by the attorney general pursuant to this
paragraph against the defendant convicted of the crime must be commenced
within seven years of the crime or pursuant to the time frames
authorized in subdivision three of section six hundred thirty-two-a of
this article. A claimant who retains such right of action shall be
permitted to intervene in any action brought pursuant to this
subdivision by the attorney general. Any action brought by the attorney
general may be compromised or settled provided the attorney general and
the office find that such action is in the best interests of the state.

2. Acceptance of an award made pursuant to this article shall create a
lien in favor of the state on the proceeds of any recovery from the
person or persons liable for the injury or death giving rise to the
award by the office, whether by judgment, settlement or otherwise, after
the deduction of the reasonable and necessary expenditures, including
attorney's fees, incurred in effecting such recovery, to the total
amount of the award made by the office. Such lien shall attach to any
moneys received or to be received by the claimant or victim on account
of losses resulting from the crime. Should the claimant or victim secure
a recovery from the person or persons liable for the injury or death
giving rise to the award by the office, whether by judgment, settlement
or otherwise, such claimant may, upon notice to the office, apply to the
court in which the action was instituted, or to any court of competent
jurisdiction if no action was instituted, for an order apportioning the
reasonable and necessary expenditures, including attorney's fees,
incurred in effecting such recovery. Such expenditures shall be
equitably apportioned by the court between the claimant and the office.
A copy of such lien shall be mailed to the clerk of the county within
which the crime occurred and such clerk will file the copy in accordance
with the duties of such clerk as set forth in section five hundred
twenty-five of the county law. The amount of such lien may be
compromised or settled by the office provided the office finds that such
action is in the best interests of the state, or payment of the full
amount of the lien to the state would cause undue hardship for the
victim.

2-a. To the extent the office has made an award pursuant to this
article for burial expenses, such amount shall be considered among
reasonable funeral expenses of the decedent pursuant to subdivision one
of section eighteen hundred eleven of the surrogate's court procedure
act, to be recovered by the office, provided, however, that if a
beneficiary of the victim's estate is also a person eligible to receive
an award pursuant to section six hundred twenty-four of this article,
the office shall recover such amounts pursuant to subdivision two of
this section to the extent an award has been made to such person, prior
to pursuing recovery from the victim's estate. Any recovery from a
victim's estate under this subdivision shall reduce the state's lien
under this section to the extent of the recovery by the office.

3. Any claimant who has received an award under this article, or his
guardian, judicially appointed personal representative, or his estate,
who brings an action for damages against the person or persons liable
for the injury or death giving rise to an award by the office under this
article shall give written notice to the office of the commencement of
such action at the time such action is commenced. Such notice shall be
served personally or by certified mail, return receipt requested.

4. The attorney general may intervene, as of right, in any such action
on behalf of the state of New York for the purpose of recovering the
subrogated interest due the state of New York under the provisions of
this article.

5. The director shall adopt rules and regulations to carry out the
provisions and purposes of this section.

6. The office shall compile information on the number of cases
submitted to the attorney general, the number of actions instituted by
the attorney general to recover payments made to crime victims, the
dollar amount of recoveries made in such actions both on behalf of the
state and any awards made to victims who intervene in such actions. The
office shall include this information, and any recommendations to the
governor and legislature to improve the collection of awards, in its
annual report.