§ 136. Workers' compensation fraud inspector general. 1. Definitions.
For the purposes of this section, the following definitions shall apply:

(a) "Inspector general" means the workers' compensation fraud
inspector general created by this section.

(b) "Assistant inspector general" means a workers' compensation fraud
assistant inspector general created by this section.

2. Appointment, compensation and removal. Notwithstanding any other
provision of law, the governor shall appoint the inspector general. The
board shall employ and the governor shall fix the compensation of the
inspector general. The inspector general shall, and may do so without
civil service examination, appoint and the board shall employ, such
assistant inspectors general and other persons as he or she deems
necessary, determine their duties and fix their compensation. Such
assistant inspectors general shall assist the inspector general in
carrying out the inspector general's duties and responsibilities as set
forth in this section and shall have such powers as granted the
inspector general under this section. Employees appointed pursuant to
this section without civil service examination shall be placed in the
noncompetitive class of the competitive service pursuant to subdivision
two-a of section forty-two of the civil service law and shall serve at
the pleasure of the governor. The payment of salaries and compensation
of employees appointed pursuant to this section shall be made pursuant
to section one hundred forty-eight of this chapter.

3. Powers, duties and responsibilities. The inspector general shall
investigate violations of the laws and regulations pertaining to the
operation of the workers' compensation system. The inspector general
shall have the following powers, duties and functions:

(a) to conduct and supervise investigations, within or without this
state, of possible fraud and other violations of laws, rules and
regulations pertaining to the workers' compensation system;

(b) to subpoena witnesses, administer oaths or affirmations, take
testimony and compel the production of such books, papers, records and
documents as the inspector general may deem to be relevant to an
investigation undertaken pursuant to this section;

(c) to report to the attorney general, the insurance frauds bureau, or
other appropriate law enforcement agency, violations found through
investigations undertaken pursuant to this section and to provide such
materials and assistance as may be necessary or appropriate for the
successful investigation and prosecution of violations of this chapter;

(d) to submit a written report, on an annual basis, to the governor
and to the chair of the board, listing all activities undertaken to the
extent such activities can be disclosed pursuant to subdivision five of
this section; and

(e) to recommend legislative and regulatory changes to the governor
and to the chair of the board.

4. Cooperation of agency officials and employees. (a) In addition to
the authority otherwise provided by this section, the inspector general,
in carrying out the provisions of this section, is authorized:

(i) to have full and unrestricted access to all records, reports,
audits, reviews, documents, papers, recommendations or other material
maintained by the board or any other state agency relating to the
workers' compensation system, with respect to which the inspector
general has responsibilities under this section; and

(ii) to request such information, assistance and cooperation from any
federal, state or local government, department, board, bureau,
commission, or other agency or unit thereof as may be necessary for
carrying out the duties and responsibilities enjoined upon the inspector
general by this section. State and local agencies or units thereof are
hereby authorized and directed to provide such information, assistance
and cooperation.

(b) No person shall prevent, seek to prevent, interfere with, obstruct
or otherwise hinder any investigation being conducted pursuant to this
section.

5. Disclosure of information. The inspector general shall not publicly
disclose information which is:

(a) a part of an ongoing investigation or prosecution; or

(b) specifically prohibited from disclosure by any other provision of
law.

The disclosure of information in order to coordinate investigations
with the insurance frauds bureau of the department of financial
services, including the unit for workers' compensation insurance frauds
investigations within such insurance frauds bureau, and any frauds
investigations unit of the state insurance fund, to provide the report
required by paragraph (c) of subdivision three of this section or to
apprise the chair of ongoing investigations shall not be considered
public disclosure for purposes of this section.