A. 5195 2
FISC FROM PERSONS WHO ENGAGE IN FRAUD, MISREPRESENTATION, ABUSE, OR
OTHER IMPROPER PRACTICES.
S 251. DEFINITIONS. 1. "CLAIM" MEANS ANY REQUEST OR DEMAND, WHETHER
PURSUANT TO A CONTRACT OR OTHERWISE, FOR MONEY OR PROPERTY THAT IS MADE
TO AN OFFICER, EMPLOYEE, AGENT, OR OTHER REPRESENTATIVE OF THE STATE OR
A POLITICAL SUBDIVISION THEREOF, OR TO A CONTRACTOR, SUBCONTRACTOR,
GRANTEE, OR OTHER PERSON IF THE STATE OR ANY POLITICAL SUBDIVISION THER-
EOF PROVIDES ANY PORTION OF THE MONEY OR PROPERTY THAT IS REQUESTED OR
DEMANDED OR IF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF WILL REIM-
BURSE DIRECTLY OR INDIRECTLY SUCH CONTRACTOR, SUBCONTRACTOR, GRANTEE, OR
OTHER PERSON FOR ANY PORTION OF THE MONEY OR PROPERTY WHICH IS REQUESTED
OR DEMANDED.
2. "DOCUMENTARY MATERIAL" INCLUDES THE ORIGINAL OR ANY COPY OF ANY
BOOK, RECORD, REPORT, MEMORANDUM, PAPER, COMMUNICATION, TABULATION,
CHART, OR OTHER DOCUMENT, OR DATA COMPILATIONS STORED IN OR ACCESSIBLE
THROUGH COMPUTER OR OTHER INFORMATION RETRIEVAL SYSTEMS, TOGETHER WITH
INSTRUCTIONS AND ALL OTHER MATERIALS NECESSARY TO USE OR INTERPRET SUCH
DATA COMPILATIONS, AND ANY PRODUCT OF DISCOVERY.
3. "FALSE CLAIMS ACTION" MEANS AN ACTION FILED BY THE OFFICE OF THE
ATTORNEY GENERAL OR A RELATOR PURSUANT TO THIS SECTION.
4. "FISCAL AGENT" MEANS ANY INDIVIDUAL, FIRM, CORPORATION, PROFES-
SIONAL ASSOCIATION, PARTNERSHIP, ORGANIZATION, OR OTHER LEGAL ENTITY
FROM WHICH, THROUGH A CONTRACTUAL RELATIONSHIP WITH THE STATE OF NEW
YORK OR ONE OF ITS POLITICAL SUBDIVISIONS, THE STATE OF NEW YORK
RECEIVES, PROCESSES, AND PAYS CLAIMS.
5. "INVESTIGATION" MEANS ANY INQUIRY CONDUCTED BY ANY INVESTIGATOR FOR
THE PURPOSE OF ASCERTAINING WHETHER ANY PERSON IS OR HAS BEEN ENGAGED IN
ANY VIOLATION OF THIS ARTICLE.
6. "INVESTIGATOR" MEANS A PERSON WHO IS CHARGED BY THE STATE POLICE OR
THE ATTORNEY GENERAL WITH THE DUTY OF CONDUCTING ANY INVESTIGATION UNDER
THIS ARTICLE, OR ANY OFFICER OR EMPLOYEE OF THE STATE ACTING UNDER THE
DIRECTION AND SUPERVISION OF THE STATE POLICE OR THE ATTORNEY GENERAL,
WITH AN INVESTIGATION.
7. "KNOWING AND KNOWINGLY" MEANS POSSESSING ACTUAL KNOWLEDGE OF RELE-
VANT INFORMATION, ACTING WITH DELIBERATE IGNORANCE OF THE TRUTH OR
FALSITY OF THE INFORMATION, OR ACTING IN RECKLESS DISREGARD OF THE TRUTH
OR FALSITY OF THE INFORMATION, AND NO PROOF OF SPECIFIC INTENT TO
DEFRAUD IS REQUIRED.
8. "PERSON" INCLUDES ANY NATURAL PERSON, CORPORATION, FIRM, ASSOCI-
ATION, ORGANIZATION, PARTNERSHIP, BUSINESS, OR TRUST, OR OTHER BUSINESS
OR LEGAL ENTITY.
9. "POLITICAL SUBDIVISION" INCLUDES ANY CITY, CITY AND COUNTY, COUNTY,
TAX OR ASSESSMENT DISTRICT, OR OTHER LEGALLY AUTHORIZED LOCAL GOVERN-
MENTAL ENTITY WITH JURISDICTIONAL BOUNDARIES OR OTHER GOVERNMENTAL ENTI-
TY AUTHORIZED OR CREATED BY STATE LAW, INCLUDING BUT NOT LIMITED TO
PUBLIC CORPORATIONS AND AUTHORITIES AND COMMISSIONS.
10. "PRODUCT OF DISCOVERY" MEANS: (A) THE ORIGINAL OR DUPLICATE OF ANY
DEPOSITION, INTERROGATORY, DOCUMENT, THING, RESULT OF THE INSPECTION OF
LAND OR OTHER PROPERTY, EXAMINATION, OR ADMISSION, WHICH IS OBTAINED BY
ANY METHOD OF DISCOVERY IN ANY JUDICIAL OR ADMINISTRATIVE PROCEEDING OF
AN ADVERSARIAL NATURE;
(B) ANY DIGEST, ANALYSIS, SELECTION, COMPILATION, OR DERIVATION OF ANY
ITEM LISTED IN PARAGRAPH (A) OF THIS SUBDIVISION; AND
(C) ANY INDEX OR OTHER MANNER OF ACCESS TO ANY ITEM LISTED IN PARA-
GRAPH (A) OF THIS SUBDIVISION.
A. 5195 3
11. "PROSECUTING AUTHORITY" REFERS TO THE CITY ATTORNEY, COUNTY COUN-
SEL, DISTRICT ATTORNEY, OR OTHER LOCAL GOVERNMENT OFFICIAL CHARGED WITH
INVESTIGATING, FILING, AND CONDUCTING CIVIL LEGAL PROCEEDINGS ON BEHALF
OF, OR IN THE NAME OF, A PARTICULAR POLITICAL SUBDIVISION.
12. "QUI TAM" MEANS AN ACTION BROUGHT BY A PRIVATE PERSON ON BEHALF OF
THE STATE UNDER A STATUTE THAT ALLOWS A PRIVATE PERSON TO SUE FOR A
RECOVERY, PART OF WHICH THE STATE WILL RECEIVE.
13. "RELATOR" MEANS AN INDIVIDUAL WHO BRINGS AN ACTION UNDER SUBDIVI-
SION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THIS ARTICLE.
S 252. ACTS SUBJECTING PERSONS TO TREBLE DAMAGES, COSTS, AND CIVIL
PENALTIES; EXCEPTIONS. 1. ANY PERSON WHO COMMITS ANY OF THE FOLLOWING
ACTS SHALL BE LIABLE TO THE STATE OR TO THE POLITICAL SUBDIVISION FOR NO
LESS THAN TWO TIMES AND NO MORE THAN FIVE TIMES THE AMOUNT OF DAMAGES,
INCLUDING CONSEQUENTIAL DAMAGES, WHICH THE STATE OR THE POLITICAL SUBDI-
VISION SUSTAINS BECAUSE OF THE ACT OF THAT PERSON. A PERSON WHO COMMITS
ANY OF THE FOLLOWING ACTS SHALL ALSO BE LIABLE TO THE STATE OR TO THE
POLITICAL SUBDIVISION FOR THE COSTS OF A CIVIL ACTION BROUGHT TO RECOVER
ANY OF THOSE PENALTIES OR DAMAGES, INCLUDING, WITHOUT LIMITATION,
REASONABLE ATTORNEY'S FEES, REASONABLE EXPERT'S FEES AND THE COSTS OF
INVESTIGATION, AS DEFINED ABOVE. COSTS RECOVERABLE UNDER THIS ARTICLE
SHALL ALSO INCLUDE THE COSTS OF ANY REVIEW OR INVESTIGATION UNDERTAKEN
BY THE ATTORNEY GENERAL, BY THE COMPTROLLER, OR BY THE INSPECTOR GENERAL
IN COOPERATION WITH THE ATTORNEY GENERAL. A PERSON WHO COMMITS ANY OF
THE FOLLOWING ACTS SHALL ALSO BE LIABLE TO THE STATE OR POLITICAL SUBDI-
VISION FOR A CIVIL PENALTY OF NOT LESS THAN FIVE THOUSAND DOLLARS AND
NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH FALSE CLAIM:
(A) KNOWINGLY PRESENTS OR CAUSES TO BE PRESENTED TO AN OFFICER OR
EMPLOYEE OF THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF A FALSE
CLAIM FOR PAYMENT OR APPROVAL;
(B) KNOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A FALSE RECORD
OR STATEMENT TO CAUSE A FALSE CLAIM TO BE PAID OR APPROVED BY THE STATE
OR BY ANY POLITICAL SUBDIVISION;
(C) CONSPIRES TO DEFRAUD THE STATE OR ANY POLITICAL SUBDIVISION BY
CAUSING A FALSE CLAIM TO BE ALLOWED OR PAID BY THE STATE OR BY ANY POLI-
TICAL SUBDIVISION;
(D) HAS POSSESSION, CUSTODY, OR CONTROL OF PUBLIC PROPERTY OR MONEY
USED OR TO BE USED BY THE STATE OR BY ANY POLITICAL SUBDIVISION AND
KNOWINGLY DELIVERS OR CAUSES TO BE DELIVERED LESS PROPERTY THAN THE
AMOUNT FOR WHICH THE PERSON RECEIVES A CERTIFICATE OR RECEIPT;
(E) IS AUTHORIZED TO MAKE OR DELIVER A DOCUMENT CERTIFYING RECEIPT OF
PROPERTY USED OR TO BE USED BY THE STATE OR BY ANY POLITICAL SUBDIVISION
AND KNOWINGLY MAKES OR DELIVERS A RECEIPT THAT FALSELY REPRESENTS THE
PROPERTY USED OR TO BE USED;
(F) KNOWINGLY BUYS, OR RECEIVES AS A PLEDGE OF AN OBLIGATION OR DEBT,
PUBLIC PROPERTY FROM ANY PERSON WHO LAWFULLY MAY NOT SELL OR PLEDGE THE
PROPERTY;
(G) KNOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A FALSE RECORD
OR STATEMENT TO CONCEAL, AVOID, OR DECREASE AN OBLIGATION TO PAY OR
TRANSMIT MONEY OR PROPERTY TO THE STATE OR TO ANY POLITICAL SUBDIVISION;
(H) IS A BENEFICIARY OF AN INADVERTENT SUBMISSION OF A FALSE CLAIM TO
THE STATE OR A POLITICAL SUBDIVISION, SUBSEQUENTLY DISCOVERS THE FALSITY
OF THE CLAIM, AND FAILS TO DISCLOSE THE FALSE CLAIM TO THE STATE OR THE
POLITICAL SUBDIVISION WITHIN A REASONABLE TIME AFTER DISCOVERY OF THE
FALSE CLAIM.
2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
THE COURT MAY ASSESS NOT LESS THAN TWO TIMES AND NOT MORE THAN THREE
A. 5195 4
TIMES THE AMOUNT OF DAMAGES WHICH THE STATE OR THE POLITICAL SUBDIVISION
SUSTAINS BECAUSE OF THE ACT OF THE PERSON DESCRIBED IN SUBDIVISION ONE
OF THIS SECTION, AND NO CIVIL PENALTY, IF THE COURT FINDS ALL OF THE
FOLLOWING:
(A) THE PERSON COMMITTING THE VIOLATION FURNISHED OFFICIALS OF THE
STATE OR OF THE POLITICAL SUBDIVISION RESPONSIBLE FOR INVESTIGATING
FALSE CLAIMS VIOLATIONS WITH ALL INFORMATION KNOWN TO THAT PERSON ABOUT
THE VIOLATION WITHIN THIRTY DAYS AFTER THE DATE ON WHICH THE PERSON
FIRST OBTAINED THE INFORMATION;
(B) THE PERSON FULLY COOPERATED WITH ANY INVESTIGATION BY THE STATE OR
A POLITICAL SUBDIVISION OF THE VIOLATION; AND
(C) AT THE TIME THE PERSON FURNISHED THE STATE OR THE POLITICAL SUBDI-
VISION WITH INFORMATION ABOUT THE VIOLATION, NO CRIMINAL PROSECUTION,
CIVIL ACTION, OR ADMINISTRATIVE ACTION HAD COMMENCED WITH RESPECT TO THE
VIOLATION, AND THE PERSON DID NOT HAVE ACTUAL KNOWLEDGE OF THE EXISTENCE
OF AN INVESTIGATION INTO THE VIOLATION.
3. LIABILITY UNDER THIS SECTION SHALL BE JOINT AND SEVERAL FOR ANY ACT
COMMITTED BY TWO OR MORE PERSONS.
4. THIS SECTION DOES NOT APPLY TO ANY CONTROVERSY INVOLVING AN AMOUNT
OF LESS THAN FIVE THOUSAND DOLLARS IN VALUE. FOR PURPOSES OF THIS SUBDI-
VISION, "CONTROVERSY" MEANS ANY ONE OR MORE FALSE CLAIMS SUBMITTED BY
THE SAME PERSON IN VIOLATION OF THIS ARTICLE.
5. THIS SECTION DOES NOT APPLY TO WORKERS' COMPENSATION CLAIMS FILED
PURSUANT TO THE WORKERS' COMPENSATION LAW.
6. THIS SECTION DOES NOT APPLY TO CLAIMS, RECORDS, OR STATEMENTS MADE
UNDER THE TAX LAW.
S 253. CIVIL ACTIONS FOR FALSE CLAIMS. 1. THE DIVISION OF STATE
POLICE SHALL DILIGENTLY INVESTIGATE ACTUAL AND ALLEGED CIVIL VIOLATIONS
OF THE PROVISIONS OF SECTION TWO HUNDRED FIFTY-TWO OF THIS ARTICLE. IF
THE DIVISION OF STATE POLICE FINDS THAT A PERSON HAS VIOLATED OR IS
VIOLATING SECTION TWO HUNDRED FIFTY-TWO OF THIS ARTICLE, THE ATTORNEY
GENERAL MAY BRING A CIVIL ACTION UNDER THIS SECTION AGAINST SUCH PERSON.
2. (A) A PERSON MAY BRING A CIVIL ACTION FOR A VIOLATION OF SECTION
TWO HUNDRED FIFTY-TWO OF THIS ARTICLE FOR SUCH PERSON AND FOR THE STATE.
THE ACTION SHALL BE BROUGHT IN THE NAME OF THE STATE. THE ACTION MAY BE
DISMISSED ONLY IF THE COURT AND THE ATTORNEY GENERAL GIVE WRITTEN
CONSENT TO THE DISMISSAL AND THEIR REASONS FOR CONSENTING THERETO.
(B) A COPY OF THE COMPLAINT AND WRITTEN DISCLOSURE OF SUBSTANTIALLY
ALL MATERIAL EVIDENCE AND INFORMATION THE PERSON POSSESSES SHALL BE
SERVED ON THE STATE. THE COMPLAINT SHALL BE FILED 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 STATE MAY ELECT TO INTER-
VENE AND PROCEED WITH THE ACTION WITHIN SIXTY DAYS AFTER IT RECEIVES
BOTH THE COMPLAINT AND THE MATERIAL EVIDENCE AND INFORMATION.
(C) THE STATE MAY, FOR GOOD CAUSE SHOWN, MOVE THE COURT FOR EXTENSIONS
OF THE TIME DURING WHICH THE COMPLAINT REMAINS UNDER SEAL PURSUANT TO
PARAGRAPH (B) OF THIS SUBDIVISION. ANY SUCH MOTIONS MAY BE SUPPORTED BY
AFFIDAVITS OR OTHER SUBMISSIONS IN CAMERA. THE DEFENDANT SHALL NOT BE
REQUIRED TO RESPOND TO ANY COMPLAINT FILED UNDER THIS SECTION UNTIL
TWENTY DAYS AFTER THE COMPLAINT IS UNSEALED AND SERVED UPON THE DEFEND-
ANT.
(D) BEFORE THE EXPIRATION OF THE SIXTY-DAY PERIOD OR ANY EXTENSIONS
OBTAINED UNDER PARAGRAPH (C) OF THIS SUBDIVISION, THE STATE SHALL:
(1) PROCEED WITH THE ACTION, IN WHICH CASE THE ACTION SHALL BE
CONDUCTED BY THE STATE, OR
A. 5195 5
(2) NOTIFY THE COURT THAT IT DECLINES TO TAKE OVER THE ACTION, IN
WHICH CASE THE PERSON BRINGING THE ACTION SHALL HAVE THE RIGHT TO
CONDUCT THE ACTION.
(E) WHEN A PERSON BRINGS AN ACTION UNDER THIS SUBDIVISION, NO PERSON
OTHER THAN THE STATE MAY INTERVENE OR BRING A RELATED ACTION BASED ON
THE FACTS UNDERLYING SUCH ACTION.
3. (A) IF THE STATE PROCEEDS WITH THE ACTION, IT SHALL HAVE THE PRIMA-
RY RESPONSIBILITY FOR PROSECUTING THE ACTION AND SHALL NOT BE BOUND BY
AN ACT OF THE PERSON BRINGING THE 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.
(B)(1) THE STATE MAY MOVE TO DISMISS THE ACTION NOTWITHSTANDING THE
OBJECTIONS OF THE PERSON INITIATING THE ACTION UPON NOTICE TO SUCH
PERSON THEREFOR AND THE COURT'S HAVING PROVIDED THE PERSON WITH AN
OPPORTUNITY FOR A HEARING ON THE MOTION.
(2) THE STATE MAY SETTLE THE ACTION WITH THE DEFENDANT NOTWITHSTANDING
THE OBJECTIONS OF THE PERSON INITIATING THE ACTION IF THE COURT DETER-
MINES, AFTER A HEARING, THAT THE PROPOSED SETTLEMENT IS FAIR, ADEQUATE,
AND REASONABLE UNDER ALL THE CIRCUMSTANCES. UPON A SHOWING OF GOOD
CAUSE, SUCH HEARING MAY BE HELD IN CAMERA.
(3) UPON A SHOWING BY THE STATE THAT UNRESTRICTED PARTICIPATION DURING
THE COURSE OF THE LITIGATION BY THE PERSON INITIATING THE ACTION WOULD
INTERFERE WITH OR UNDULY DELAY THE STATE'S PROSECUTION OF THE CASE, OR
WOULD BE REPETITIOUS, IRRELEVANT, OR FOR PURPOSES OF HARASSMENT, THE
COURT MAY, IN ITS DISCRETION, IMPOSE LIMITATIONS ON SUCH PERSON'S
PARTICIPATION, INCLUDING BUT NOT LIMITED TO:
(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.
(4) UPON A SHOWING BY THE DEFENDANT THAT UNRESTRICTED PARTICIPATION
DURING THE COURSE OF THE LITIGATION BY THE PERSON INITIATING THE ACTION
WOULD BE FOR PURPOSES OF HARASSMENT OR WOULD CAUSE THE DEFENDANT UNDUE
BURDEN OR UNNECESSARY EXPENSE, THE COURT MAY LIMIT THE PARTICIPATION BY
SUCH PERSON IN THE LITIGATION.
(C) IF THE STATE ELECTS NOT TO PROCEED WITH THE ACTION, THE PERSON WHO
INITIATED THE ACTION SHALL HAVE THE RIGHT TO CONDUCT THE ACTION. IF THE
STATE SO REQUESTS, IT SHALL BE SERVED WITH COPIES OF ALL PLEADINGS FILED
IN THE ACTION AND SHALL BE SUPPLIED WITH COPIES OF ALL DEPOSITION TRAN-
SCRIPTS (AT THE STATE'S EXPENSE). WHEN SUCH PERSON PROCEEDS WITH THE
ACTION, THE COURT, WITHOUT LIMITING THE STATUS AND RIGHTS OF SUCH
PERSON, MAY NEVERTHELESS PERMIT THE STATE TO INTERVENE AT A LATER DATE
UPON A SHOWING OF GOOD CAUSE.
(D) WHETHER OR NOT THE STATE PROCEEDS WITH THE ACTION, UPON A SHOWING
BY THE STATE THAT CERTAIN ACTIONS OF DISCOVERY BY THE PERSON INITIATING
THE ACTION WOULD INTERFERE WITH THE STATE'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 SIXTY-DAY
PERIOD UPON A FURTHER SHOWING IN CAMERA THAT THE STATE HAS PURSUED THE
CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS WITH REASONABLE DILIGENCE
AND THAT ANY PROPOSED DISCOVERY IN THE CIVIL ACTION WILL INTERFERE WITH
THE ONGOING CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS.
(E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION,
THE STATE MAY ELECT TO PURSUE ITS CLAIM THROUGH ANY ALTERNATIVE REMEDY
A. 5195 6
AVAILABLE TO THE STATE, INCLUDING ANY ADMINISTRATIVE PROCEEDING TO
DETERMINE A CIVIL MONEY PENALTY. IF ANY SUCH ALTERNATE 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. ANY FINDING OF FACT OR CONCLU-
SION OF LAW MADE IN SUCH OTHER PROCEEDING THAT HAS BECOME FINAL SHALL BE
CONCLUSIVE ON ALL PARTIES TO AN ACTION UNDER THIS SECTION. FOR PURPOSES
OF THE PRECEDING SENTENCE, A FINDING OR CONCLUSION IS FINAL IF IT HAS
BEEN FINALLY DETERMINED ON APPEAL TO THE APPROPRIATE COURT, IF ALL TIME
FOR FILING SUCH AN APPEAL WITH RESPECT TO THE FINDING OR CONCLUSION HAS
EXPIRED, OR IF THE FINDING OR CONCLUSION IS NOT SUBJECT TO JUDICIAL
REVIEW.
4. (A) IF THE STATE PROCEEDS WITH AN ACTION BROUGHT BY A PERSON UNDER
SUBDIVISION TWO OF THIS SECTION, SUCH PERSON SHALL, SUBJECT TO THE
SECOND SENTENCE OF THIS PARAGRAPH, RECEIVE AT LEAST FIFTEEN PERCENT BUT
NOT MORE THAN TWENTY-FIVE PERCENT OF THE PROCEEDS OF THE ACTION OR
SETTLEMENT OF THE CLAIM, DEPENDING UPON THE EXTENT TO WHICH THE PERSON
SUBSTANTIALLY CONTRIBUTED TO THE PROSECUTION OF THE ACTION. WHERE THE
ACTION IS ONE THAT THE COURT FINDS TO BE BASED PRIMARILY ON DISCLOSURES
OF SPECIFIC INFORMATION (OTHER THAN INFORMATION PROVIDED BY THE PERSON
BRINGING THE ACTION) RELATING TO ALLEGATIONS OR TRANSACTIONS IN A CRIMI-
NAL, CIVIL, OR ADMINISTRATIVE HEARING, IN A LEGISLATIVE, ADMINISTRATIVE,
OR COMPTROLLER'S REPORT, HEARING, 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
BRINGING THE ACTION IN ADVANCING THE CASE TO LITIGATION. ANY PAYMENT TO
A PERSON UNDER THE FIRST OR SECOND SENTENCE OF THIS PARAGRAPH SHALL BE
MADE FROM THE PROCEEDS. ANY SUCH PERSON SHALL ALSO RECEIVE AN AMOUNT FOR
REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE BEEN NECESSARILY
INCURRED, PLUS REASONABLE ATTORNEY'S FEES AND COSTS. THE STATE SHALL
ALSO RECEIVE AN AMOUNT FOR REASONABLE EXPENSES THAT THE COURT FINDS TO
HAVE BEEN NECESSARILY INCURRED BY THE ATTORNEY GENERAL, INCLUDING
REASONABLE ATTORNEY'S FEES AND COSTS, AND THE AMOUNT RECEIVED SHALL BE
DEPOSITED IN THE WHISTLEBLOWER REWARD AND PROTECTION FUND ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-Q OF THIS CHAPTER. ALL SUCH EXPENSES,
FEES, AND COSTS SHALL BE AWARDED AGAINST THE DEFENDANT.
(B) IF THE STATE DOES NOT PROCEED WITH AN ACTION UNDER THIS SECTION,
THE PERSON BRINGING THE ACTION OR SETTLING THE CLAIM SHALL RECEIVE AN
AMOUNT THAT THE COURT DECIDES IS REASONABLE FOR COLLECTING THE CIVIL
PENALTY AND DAMAGES. THE AMOUNT SHALL BE NOT LESS THAN TWENTY-FIVE
PERCENT AND NOT MORE THAN FORTY PERCENT OF THE PROCEEDS OF THE ACTION OR
SETTLEMENT AND SHALL BE PAID OUT OF SUCH PROCEEDS. SUCH PERSON SHALL
ALSO RECEIVE AN AMOUNT FOR REASONABLE EXPENSES THAT THE COURT FINDS TO
HAVE BEEN NECESSARILY INCURRED, PLUS REASONABLE ATTORNEY'S FEES AND
COSTS. ALL SUCH EXPENSES, FEES, AND COSTS SHALL BE AWARDED AGAINST THE
DEFENDANT.
(C) WHETHER OR NOT THE STATE PROCEEDS WITH THE ACTION, IF THE COURT
FINDS THAT THE ACTION WAS BROUGHT BY A PERSON WHO PLANNED AND INITIATED
THE VIOLATION OF SECTION TWO HUNDRED FIFTY-TWO 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 THAT THE PERSON WOULD OTHERWISE RECEIVE UNDER PARAGRAPH (A) OR
(B) OF THIS SUBDIVISION, TAKING INTO ACCOUNT THE ROLE OF THAT PERSON IN
ADVANCING THE CASE TO LITIGATION AND ANY RELEVANT CIRCUMSTANCES PERTAIN-
ING TO THE VIOLATION. IF THE PERSON BRINGING THE ACTION IS CONVICTED OF
A. 5195 7
CRIMINAL CONDUCT ARISING FROM HIS OR HER ROLE IN THE VIOLATION OF
SECTION TWO HUNDRED FIFTY-TWO OF THIS ARTICLE, SUCH PERSON SHALL BE
DISMISSED FROM THE CIVIL ACTION AND SHALL NOT RECEIVE ANY SHARE OF THE
PROCEEDS OF THE ACTION. SUCH DISMISSAL SHALL NOT PREJUDICE THE RIGHT OF
THE STATE TO CONTINUE THE ACTION.
(D) IF THE STATE DOES NOT PROCEED WITH THE ACTION AND THE PERSON
BRINGING THE ACTION CONDUCTS THE ACTION, THE COURT MAY AWARD TO THE
DEFENDANT ITS REASONABLE ATTORNEY'S 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 (OR SELF-EXCULPATORY).
5. (A) (1) NO COURT SHALL HAVE JURISDICTION OVER AN ACTION BROUGHT BY
A FORMER OR PRESENT MEMBER OF THE GUARD UNDER SUBDIVISION TWO OF THIS
SECTION AGAINST A MEMBER OF THE GUARD ARISING OUT OF SUCH PERSON'S
SERVICE IN THE GUARD.
(2) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "GUARD" MEANS THE
FORCE OF THE ORGANIZED MILITIA, AS DEFINED IN SUBDIVISION NINE OF
SECTION ONE OF THE MILITARY LAW.
(B)(1) NO COURT SHALL HAVE JURISDICTION OVER AN ACTION BROUGHT UNDER
SUBDIVISION TWO OF THIS SECTION AGAINST A MEMBER OF THE LEGISLATURE, A
MEMBER OF THE JUDICIARY, OR AN EXEMPT OFFICIAL IF THE ACTION IS BASED ON
EVIDENCE OR INFORMATION KNOWN TO THE STATE WHEN THE ACTION WAS BROUGHT.
(2) FOR PURPOSES OF THIS PARAGRAPH, "EXEMPT OFFICIAL" MEANS ANY OF THE
FOLLOWING OFFICIALS IN STATE SERVICE: DIRECTORS OF DEPARTMENTS ESTAB-
LISHED UNDER THE LAWS OF THE STATE, THE COMPTROLLER, THE DIRECTOR OF THE
STATE EMERGENCY MANAGEMENT ORGANIZATION, MEMBERS OF THE PUBLIC AUTHORI-
TIES, CORPORATIONS, BOARDS, AND COMMISSIONS, AND ALL OTHER POSITIONS
APPOINTED BY THE GOVERNOR BY AND WITH THE CONSENT OF THE SENATE.
(C) IN NO EVENT MAY A PERSON BRING AN ACTION UNDER SUBDIVISION TWO OF
THIS SECTION THAT IS BASED UPON ALLEGATIONS OR TRANSACTIONS THAT ARE THE
SUBJECT OF A CIVIL SUIT OR AN ADMINISTRATIVE CIVIL MONEY PENALTY
PROCEEDING IN WHICH THE STATE IS ALREADY A PARTY.
(D) NO COURT SHALL HAVE JURISDICTION OVER AN ACTION UNDER THIS SECTION
BASED UPON THE PUBLIC DISCLOSURE OF ALLEGATIONS OR TRANSACTIONS IN A
CRIMINAL, CIVIL, OR ADMINISTRATIVE HEARING, IN A LEGISLATIVE, ADMINIS-
TRATIVE, OR COMPTROLLER'S REPORT, HEARING, AUDIT, OR INVESTIGATION, OR
FROM THE NEWS MEDIA, UNLESS THE ACTION IS BROUGHT BY THE ATTORNEY GENER-
AL OR THE PERSON BRINGING THE ACTION IS AN ORIGINAL SOURCE OF THE INFOR-
MATION AS SUCH TERM IS DEFINED IN SUBDIVISION TWO OF SECTION TWO HUNDRED
FIFTY-SEVEN OF THIS ARTICLE.
6. THE STATE IS NOT LIABLE FOR EXPENSES OR FEES, INCLUDING ATTORNEY'S
FEES, WHICH A PERSON INCURS IN BRINGING AN ACTION UNDER THIS ARTICLE,
AND SHALL NOT ELECT TO PAY SUCH EXPENSES OR FEES.
7. ANY EMPLOYEE WHO IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED,
HARASSED, OR IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE TERMS AND
CONDITIONS OF EMPLOYMENT BY HIS OR HER EMPLOYER BECAUSE OF LAWFUL ACTS
DONE BY THE EMPLOYEE ON BEHALF OF THE EMPLOYEE OR OTHERS IN FURTHERANCE
OF AN ACTION UNDER THIS SECTION, INCLUDING INVESTIGATION FOR, INITIATION
OF, TESTIMONY FOR, OR ASSISTANCE IN AN ACTION FILED OR TO BE FILED UNDER
THIS SECTION, SHALL BE ENTITLED TO ALL RELIEF NECESSARY TO MAKE THE
EMPLOYEE WHOLE. SUCH RELIEF SHALL INCLUDE REINSTATEMENT WITH THE SENIOR-
ITY STATUS SUCH EMPLOYEE WOULD HAVE HAD BUT FOR THE DISCRIMINATION, NOT
LESS THAN TWO TIMES AND NOT MORE THAN FIVE TIMES THE AMOUNT OF BACK PAY,
INTEREST ON THE BACK PAY, AND COMPENSATION FOR ANY CONSEQUENTIAL DAMAGES
SUSTAINED AS A RESULT OF THE DISCRIMINATION, INCLUDING LITIGATION COSTS
A. 5195 8
AND REASONABLE ATTORNEY'S FEES. AN EMPLOYEE MAY BRING AN ACTION IN THE
SUPREME COURT FOR THE RELIEF PROVIDED IN THIS SUBDIVISION.
S 254. CIVIL INVESTIGATIVE DEMANDS. 1. (A) WHENEVER THE ATTORNEY
GENERAL HAS REASON TO BELIEVE THAT ANY PERSON MAY BE IN POSSESSION,
CUSTODY, OR CONTROL OF ANY DOCUMENTARY MATERIAL OR INFORMATION RELEVANT
TO A POTENTIAL FALSE CLAIMS ACTION, THE ATTORNEY GENERAL MAY, IN ORDER
TO DETERMINE WHETHER TO COMMENCE A CIVIL PROCEEDING PURSUANT TO THIS
ARTICLE, ISSUE IN WRITING AND CAUSE TO BE SERVED UPON SUCH PERSON A
CIVIL INVESTIGATIVE DEMAND REQUIRING THAT SUCH PERSON DO THE FOLLOWING:
(1) PRODUCE DOCUMENTARY MATERIAL RELEVANT TO THE CLAIM FOR INSPECTION
AND COPYING;
(2) ANSWER IN WRITING WRITTEN INTERROGATORIES WITH RESPECT TO ANY
DOCUMENTARY MATERIAL OR INFORMATION RELEVANT TO THE CLAIM;
(3) PROVIDE ORAL TESTIMONY CONCERNING ANY DOCUMENTARY MATERIAL OR
INFORMATION RELEVANT TO THE CLAIM; OR
(4) FURNISH ANY COMBINATION OF SUCH MATERIAL, ANSWERS, OR TESTIMONY.
(B) THE ATTORNEY GENERAL MAY DELEGATE THE AUTHORITY, IN HIS OR HER
ABSENCE, TO ISSUE CIVIL INVESTIGATIVE DEMANDS PURSUANT TO PARAGRAPH (A)
OF THIS SUBDIVISION. THE ATTORNEY GENERAL MAY NOT ISSUE A CIVIL INVESTI-
GATIVE DEMAND IN ORDER TO CONDUCT, OR ASSIST IN THE CONDUCTING OF, A
CRIMINAL INVESTIGATION.
2. (A) EACH CIVIL INVESTIGATIVE DEMAND ISSUED PURSUANT TO PARAGRAPH
(A) OF SUBDIVISION ONE OF THIS SECTION SHALL STATE THE NATURE OF THE
CONDUCT CONSTITUTING THE ALLEGED VIOLATION OF SUBDIVISION ONE OF SECTION
TWO HUNDRED FIFTY-TWO OF THIS ARTICLE WHICH IS UNDER INVESTIGATION, AND
THE APPLICABLE PROVISION OF LAW ALLEGED TO HAVE BEEN VIOLATED.
(B) IF SUCH DEMAND IS FOR THE PRODUCTION OF DOCUMENTARY MATERIAL, THE
DEMAND SHALL DO THE FOLLOWING:
(1) DESCRIBE EACH CLASS OF DOCUMENTARY MATERIAL TO BE PRODUCED WITH
SUCH DEFINITENESS AND CERTAINTY AS TO PERMIT SUCH MATERIAL TO BE FAIRLY
IDENTIFIED;
(2) PRESCRIBE A RETURN DATE FOR EACH SUCH CLASS THAT WILL PROVIDE A
REASONABLE PERIOD OF TIME WITHIN WHICH THE MATERIAL SO DEMANDED MAY BE
ASSEMBLED AND MADE AVAILABLE FOR INSPECTION AND COPYING; AND
(3) IDENTIFY THE INVESTIGATOR TO WHOM SUCH MATERIAL SHALL BE MADE
AVAILABLE.
(C) IF SUCH DEMAND IS FOR ANSWERS TO WRITTEN INTERROGATORIES, THE
DEMAND SHALL DO THE FOLLOWING:
(1) SET FORTH WITH SPECIFICITY THE WRITTEN INTERROGATORIES TO BE
ANSWERED;
(2) PRESCRIBE DATES AT WHICH TIME ANSWERS TO WRITTEN INTERROGATORIES
SHALL BE SUBMITTED; AND
(3) IDENTIFY THE INVESTIGATOR TO WHOM SUCH ANSWERS SHALL BE SUBMITTED.
(D) IF SUCH DEMAND IS FOR THE GIVING OF ORAL TESTIMONY, THE DEMAND
SHALL DO THE FOLLOWING:
(1) PRESCRIBE THE DATE, TIME, AND PLACE AT WHICH ORAL TESTIMONY SHALL
COMMENCE;
(2) IDENTIFY AN INVESTIGATOR WHO SHALL CONDUCT THE EXAMINATION AND THE
CUSTODIAN TO WHOM THE TRANSCRIPT OF SUCH EXAMINATION SHALL BE SUBMITTED;
(3) SPECIFY THAT SUCH ATTENDANCE AND TESTIMONY ARE NECESSARY TO
CONDUCT THE INVESTIGATION;
(4) NOTIFY THE PERSON RECEIVING THE DEMAND OF THE RIGHT TO BE ACCOMPA-
NIED BY AN ATTORNEY AND ANY OTHER REPRESENTATIVE; AND
(5) DESCRIBE THE GENERAL PURPOSE FOR WHICH THE DEMAND IS BEING ISSUED
AND THE GENERAL NATURE OF THE TESTIMONY, INCLUDING THE PRIMARY AREAS OF
INQUIRY, WHICH WILL BE TAKEN PURSUANT TO THE DEMAND.
A. 5195 9
(E) THE DATE PRESCRIBED FOR THE COMMENCEMENT OF ORAL TESTIMONY PURSU-
ANT TO A CIVIL INVESTIGATIVE DEMAND SHALL BE A DATE THAT IS NOT LESS
THAN SEVEN DAYS AFTER THE DATE ON WHICH THE DEMAND IS RECEIVED, UNLESS
THE ATTORNEY GENERAL DETERMINES THAT EXCEPTIONAL CIRCUMSTANCES ARE PRES-
ENT THAT WARRANT THE COMMENCEMENT OF SUCH TESTIMONY WITHIN A SHORTER
PERIOD OF TIME.
(F) THE ATTORNEY GENERAL SHALL NOT AUTHORIZE, PURSUANT TO PARAGRAPH
(A) OF SUBDIVISION ONE OF THIS SECTION, THE ISSUANCE OF MORE THAN ONE
CIVIL INVESTIGATIVE DEMAND FOR ORAL TESTIMONY BY THE SAME PERSON UNLESS
THE PERSON REQUESTS OTHERWISE OR UNLESS THE ATTORNEY GENERAL, AFTER
INVESTIGATION, NOTIFIES THAT PERSON IN WRITING THAT AN ADDITIONAL DEMAND
FOR ORAL TESTIMONY IS NECESSARY.
3. A CIVIL INVESTIGATIVE DEMAND MAY NOT REQUIRE THE PRODUCTION OF ANY
DOCUMENTARY MATERIAL, THE SUBMISSION OF ANY ANSWERS TO WRITTEN INTERRO-
GATORIES, OR THE GIVING OF ANY ORAL TESTIMONY IF SUCH MATERIAL, ANSWERS,
OR TESTIMONY WOULD BE PROTECTED FROM DISCLOSURE UNDER:
(A) THE STANDARDS APPLICABLE TO SUBPOENAS OR SUBPOENAS DUCES TECUM
ISSUED BY A COURT OF THE STATE OF NEW YORK TO AID IN A GRAND JURY INVES-
TIGATION; OR
(B) THE STANDARDS APPLICABLE TO DISCOVERY REQUESTS PURSUANT TO THE
CIVIL PRACTICE LAW AND RULES TO THE EXTENT THAT THE APPLICATION OF SUCH
STANDARDS TO ANY SUCH DEMAND IS APPROPRIATE AND CONSISTENT WITH THE
PROVISIONS AND PURPOSES OF THIS SECTION.
4. (A) ANY CIVIL INVESTIGATIVE DEMAND ISSUED PURSUANT TO SUBDIVISION
ONE OF THIS SECTION MAY BE SERVED BY AN INVESTIGATOR OR HIS OR HER
AGENT, AT ANY PLACE WITHIN THE STATE; PROVIDED, THAT THE SUPREME COURT
COULD EXERCISE JURISDICTION OVER THE RECIPIENT OF THE DEMAND CONSISTENT
WITH THE DUE PROCESS CLAUSE OF THE CONSTITUTION OF THE UNITED STATES.
(B) ANY SUCH DEMAND FILED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
MAY BE SERVED UPON ANY PERSON WHO IS NOT FOUND WITHIN THE STATE IN SUCH
MANNER AS THE CIVIL PRACTICE LAW AND RULES PRESCRIBE FOR SERVICE OUTSIDE
THE STATE OR IN A FOREIGN COUNTRY; PROVIDED THAT THE SUPREME COURT COULD
EXERCISE JURISDICTION OVER THE RECIPIENT OF THE DEMAND CONSISTENT WITH
THE DUE PROCESS CLAUSE OF THE CONSTITUTION OF THE UNITED STATES.
5. (A) SERVICE OF ANY CIVIL INVESTIGATIVE DEMAND ISSUED PURSUANT TO
SUBDIVISION ONE OF THIS SECTION MAY BE MADE UPON A PARTNERSHIP, CORPO-
RATION, ASSOCIATION, OR OTHER LEGAL ENTITY BY THE FOLLOWING METHODS:
(1) DELIVERING AN EXECUTED COPY OF SUCH DEMAND TO ANY PARTNER, EXECU-
TIVE OFFICER, MANAGING AGENT, OR GENERAL AGENT OF THE PARTNERSHIP,
CORPORATION, ASSOCIATION, OR ENTITY, OR TO ANY AGENT AUTHORIZED BY
APPOINTMENT OR BY LAW TO RECEIVE SERVICE OF PROCESS ON BEHALF OF SUCH
PARTNERSHIP, CORPORATION, ASSOCIATION, OR ENTITY;
(2) DELIVERING AN EXECUTED COPY OF SUCH DEMAND TO THE PRINCIPAL OFFICE
OR PLACE OF BUSINESS OF THE PARTNERSHIP, CORPORATION, ASSOCIATION, OR
ENTITY; OR
(3) DEPOSITING AN EXECUTED COPY OF SUCH DEMAND IN THE UNITED STATES
MAIL BY REGISTERED OR CERTIFIED MAIL, WITH A RETURN RECEIPT REQUESTED,
ADDRESSED TO SUCH PARTNERSHIP, CORPORATION, ASSOCIATION, OR ENTITY AT
ITS PRINCIPAL OFFICE OR PLACE OF BUSINESS.
(B) SERVICE OF ANY SUCH DEMAND MAY BE MADE UPON ANY NATURAL PERSON BY
THE FOLLOWING METHODS:
(1) DELIVERING AN EXECUTED COPY OF SUCH DEMAND TO THE PERSON; OR
(2) DEPOSITING AN EXECUTED COPY OF SUCH DEMAND IN THE UNITED STATES
MAIL BY REGISTERED OR CERTIFIED MAIL, WITH A RETURN RECEIPT REQUESTED,
ADDRESSED TO THE PERSON AT THE PERSON'S RESIDENCE OR PRINCIPAL OFFICE OR
PLACE OF BUSINESS.
A. 5195 10
6. A VERIFIED RETURN BY THE INDIVIDUAL SERVING ANY CIVIL INVESTIGATIVE
DEMAND FILED PURSUANT TO SUBDIVISION ONE OF THIS SECTION SETTING FORTH
THE MANNER OF SUCH SERVICE SHALL BE PROOF OF SUCH SERVICE. IN THE CASE
OF SERVICE BY REGISTERED OR CERTIFIED MAIL, SUCH RETURN SHALL BE ACCOM-
PANIED BY THE RETURN POST OFFICE RECEIPT OF DELIVERY OF SUCH DEMAND.
7. (A) THE PRODUCTION OF DOCUMENTARY MATERIAL IN RESPONSE TO A CIVIL
INVESTIGATIVE DEMAND SHALL BE MADE UNDER A SWORN CERTIFICATE, IN SUCH
FORM AS THE DEMAND DESIGNATES, BY THE FOLLOWING:
(1) IN THE CASE OF A NATURAL PERSON, BY THE PERSON TO WHOM THE DEMAND
IS DIRECTED; OR
(2) IN THE CASE OF A PERSON OTHER THAN A NATURAL PERSON, BY A PERSON
HAVING KNOWLEDGE OF THE FACTS AND CIRCUMSTANCES RELATING TO SUCH
PRODUCTION AND AUTHORIZED TO ACT ON BEHALF OF SUCH PERSON.
(B) THE CERTIFICATE SHALL STATE THAT ALL OF THE DOCUMENTARY MATERIAL
REQUIRED BY THE DEMAND AND IN THE POSSESSION, CUSTODY, OR CONTROL OF THE
PERSON TO WHOM THE DEMAND IS DIRECTED HAS BEEN PRODUCED AND MADE AVAIL-
ABLE TO THE INVESTIGATOR IDENTIFIED IN THE DEMAND.
(C) ANY PERSON UPON WHOM ANY CIVIL INVESTIGATIVE DEMAND FOR THE
PRODUCTION OF DOCUMENTARY MATERIAL HAS BEEN SERVED SHALL MAKE SUCH MATE-
RIAL AVAILABLE FOR INSPECTION AND COPYING TO THE INVESTIGATOR IDENTIFIED
IN SUCH DEMAND AT THE PRINCIPAL PLACE OF BUSINESS OF SUCH PERSON, OR AT
SUCH OTHER PLACE AS THE INVESTIGATOR AND THE PERSON THEREAFTER MAY AGREE
AND PRESCRIBE IN WRITING. SUCH MATERIAL SHALL BE MADE SO AVAILABLE ON
THE RETURN DATE SPECIFIED IN SUCH DEMAND, OR ON SUCH LATER DATE AS THE
INVESTIGATOR MAY PRESCRIBE IN WRITING. SUCH PERSON MAY, UPON WRITTEN
AGREEMENT BETWEEN THE PERSON AND THE INVESTIGATOR, SUBSTITUTE COPIES FOR
ORIGINALS OF ALL OR ANY PART OF SUCH MATERIAL.
8. (A) EACH INTERROGATORY IN A CIVIL INVESTIGATIVE DEMAND SHALL BE
ANSWERED SEPARATELY AND FULLY IN WRITING UNDER OATH AND SHALL BE SUBMIT-
TED UNDER A SWORN CERTIFICATE, IN SUCH FORM AS THE DEMAND DESIGNATES, AS
FOLLOWS:
(1) IN THE CASE OF A NATURAL PERSON, BY THE PERSON TO WHOM THE DEMAND
IS DIRECTED, OR
(2) IN THE CASE OF A PERSON OTHER THAN A NATURAL PERSON, BY THE PERSON
OR PERSONS RESPONSIBLE FOR ANSWERING EACH INTERROGATORY.
(B) IF ANY INTERROGATORY IS OBJECTED TO, THE REASONS FOR THE OBJECTION
SHALL BE STATED IN THE CERTIFICATE INSTEAD OF AN ANSWER. THE CERTIFICATE
SHALL STATE THAT ALL INFORMATION REQUIRED BY THE DEMAND AND IN THE
POSSESSION, CUSTODY, CONTROL, OR KNOWLEDGE OF THE PERSON TO WHOM THE
DEMAND IS DIRECTED HAS BEEN SUBMITTED. TO THE EXTENT THAT ANY INFORMA-
TION IS NOT FURNISHED, THE INFORMATION SHALL BE IDENTIFIED AND REASONS
SET FORTH WITH PARTICULARITY REGARDING THE REASONS WHY THE INFORMATION
WAS NOT FURNISHED.
9. (A) THE EXAMINATION OF ANY PERSON, PURSUANT TO A CIVIL INVESTI-
GATIVE DEMAND FOR ORAL TESTIMONY, SHALL BE CONDUCTED BEFORE AN OFFICER
AUTHORIZED TO ADMINISTER OATHS AND AFFIRMATIONS BY THE LAWS OF THE
UNITED STATES OR OF THE STATE OF NEW YORK OR OF THE PLACE WHERE THE
EXAMINATION IS HELD. THE OFFICER BEFORE WHOM THE TESTIMONY IS TAKEN
SHALL PLACE THE WITNESS UNDER OATH OR AFFIRMATION AND SHALL, PERSONALLY
OR BY SOMEONE ACTING UNDER THE DIRECTION OF THE OFFICER AND IN THE OFFI-
CER'S PRESENCE, RECORD THE TESTIMONY OF THE WITNESS. THE TESTIMONY SHALL
BE TAKEN BY ANY MEANS AUTHORIZED BY, AND IN A MANNER CONSISTENT WITH,
THE CIVIL PRACTICE LAW AND RULES, AND SHALL BE TRANSCRIBED.
(B) THE INVESTIGATOR CONDUCTING THE EXAMINATION SHALL EXCLUDE FROM THE
PLACE WHERE THE EXAMINATION IS HELD ALL PERSONS EXCEPT THE PERSON GIVING
THE TESTIMONY, THE ATTORNEY OR OTHER REPRESENTATIVE OF THE PERSON GIVING
A. 5195 11
THE TESTIMONY, THE ATTORNEY FOR THE DEPARTMENT OF LAW, ANY PERSON WHO
MAY BE AGREED UPON BY THE ATTORNEY GENERAL AND THE PERSON GIVING THE
TESTIMONY, THE OFFICER BEFORE WHOM THE TESTIMONY IS TO BE TAKEN, AND ANY
STENOGRAPHER TAKING SUCH TESTIMONY.
(C) THE ORAL TESTIMONY OF ANY PERSON TAKEN PURSUANT TO A CIVIL INVES-
TIGATIVE DEMAND SHALL BE TAKEN IN THE COUNTY OF THE STATE IN WHICH SUCH
PERSON RESIDES OR, IF SUCH PERSON RESIDES OUTSIDE THE STATE, IN THE
JUDICIAL DISTRICT OF THE UNITED STATES WITHIN WHICH SUCH PERSON RESIDES,
IS FOUND, OR TRANSACTS BUSINESS, OR IN SUCH OTHER PLACE AS MAY BE AGREED
UPON BY THE INVESTIGATOR CONDUCTING THE EXAMINATION AND SUCH PERSON.
(D) WHEN THE TESTIMONY IS FULLY TRANSCRIBED, THE INVESTIGATOR OR THE
OFFICER BEFORE WHOM THE TESTIMONY IS TAKEN SHALL AFFORD THE WITNESS, WHO
MAY BE ACCOMPANIED BY AN ATTORNEY, A REASONABLE OPPORTUNITY TO EXAMINE
AND READ THE TRANSCRIPT, UNLESS SUCH EXAMINATION AND READING ARE WAIVED
BY THE WITNESS. ANY CHANGES IN FORM OR SUBSTANCE THAT THE WITNESS
DESIRES SHALL BE ENTERED AND IDENTIFIED UPON THE TRANSCRIPT BY THE OFFI-
CER OR THE INVESTIGATOR, WITH A STATEMENT OF THE REASONS GIVEN BY THE
WITNESS FOR MAKING SUCH CHANGES. THE TRANSCRIPT SHALL THEN BE SIGNED BY
THE WITNESS, UNLESS THE WITNESS IN WRITING WAIVES THE SIGNING, IS ILL,
CANNOT BE FOUND, OR REFUSES TO SIGN. IF THE TRANSCRIPT IS NOT SIGNED BY
THE WITNESS WITHIN THIRTY DAYS AFTER BEING AFFORDED A REASONABLE OPPOR-
TUNITY TO EXAMINE IT, THE OFFICER OR THE INVESTIGATOR SHALL SIGN IT AND
STATE ON THE RECORD THE FACT OF THE WAIVER, ILLNESS, ABSENCE OF THE
WITNESS, OR THE REFUSAL TO SIGN, TOGETHER WITH THE REASONS, IF ANY,
GIVEN THEREFOR.
(E) THE OFFICER BEFORE WHOM THE TESTIMONY IS TAKEN SHALL CERTIFY ON
THE TRANSCRIPT THAT THE WITNESS WAS SWORN BY THE OFFICER AND THAT THE
TRANSCRIPT IS A TRUE RECORD OF THE TESTIMONY GIVEN BY THE WITNESS. THE
OFFICER OR INVESTIGATOR SHALL PROMPTLY DELIVER THE TRANSCRIPT, OR SEND
THE TRANSCRIPT BY REGISTERED OR CERTIFIED MAIL, TO THE CUSTODIAN.
(F) UPON PAYMENT OF REASONABLE CHARGES THEREFOR, THE INVESTIGATOR
SHALL FURNISH A COPY OF THE TRANSCRIPT TO THE WITNESS ONLY, EXCEPT THAT
THE ATTORNEY GENERAL MAY, FOR GOOD CAUSE, LIMIT SUCH WITNESS TO
INSPECTION OF THE OFFICIAL TRANSCRIPT OF THE WITNESS'S TESTIMONY.
(G) ANY PERSON COMPELLED TO APPEAR FOR ORAL TESTIMONY PURSUANT TO A
CIVIL INVESTIGATIVE DEMAND MAY BE ACCOMPANIED, REPRESENTED, AND ADVISED
BY AN ATTORNEY. THE ATTORNEY MAY ADVISE SUCH PERSON, IN CONFIDENCE, WITH
RESPECT TO ANY QUESTION ASKED OF SUCH PERSON. SUCH PERSON OR ATTORNEY
MAY OBJECT ON THE RECORD TO ANY QUESTION, IN WHOLE OR IN PART, AND SHALL
BRIEFLY STATE FOR THE RECORD THE REASON FOR THE OBJECTION. AN OBJECTION
MAY BE MADE, RECEIVED, AND ENTERED UPON THE RECORD ONLY WHEN IT IS
CLAIMED THAT SUCH PERSON IS ENTITLED TO REFUSE TO ANSWER THE QUESTION ON
THE GROUNDS OF ANY CONSTITUTIONAL OR OTHER LEGAL RIGHT OR PRIVILEGE,
INCLUDING THE PRIVILEGE AGAINST SELF-INCRIMINATION. SUCH PERSON MAY NOT
OTHERWISE OBJECT TO OR REFUSE TO ANSWER ANY QUESTION, AND MAY NOT,
DIRECTLY OR THROUGH THE PERSON'S ATTORNEY, OTHERWISE INTERRUPT THE ORAL
EXAMINATION. IF SUCH PERSON REFUSES TO ANSWER ANY QUESTION, A MOTION MAY
BE FILED IN THE SUPREME COURT FOR AN ORDER COMPELLING SUCH PERSON TO
ANSWER THE QUESTION.
(H) ANY PERSON APPEARING FOR ORAL TESTIMONY PURSUANT TO A CIVIL INVES-
TIGATIVE DEMAND SHALL BE ENTITLED TO THE SAME FEES AND ALLOWANCES THAT
ARE PAID TO WITNESSES IN THE SUPREME COURT.
10. (A) THE ATTORNEY GENERAL SHALL DESIGNATE AN INVESTIGATOR TO SERVE
AS CUSTODIAN OF DOCUMENTARY MATERIAL, ANSWERS TO INTERROGATORIES, AND
TRANSCRIPTS OF ORAL TESTIMONY RECEIVED PURSUANT TO THIS SECTION, AND
SHALL DESIGNATE SUCH ADDITIONAL INVESTIGATORS AS THE ATTORNEY GENERAL
A. 5195 12
DETERMINES FROM TIME TO TIME TO BE NECESSARY TO SERVE AS DEPUTIES TO THE
CUSTODIAN.
(B) (1) AN INVESTIGATOR WHO RECEIVES ANY DOCUMENTARY MATERIAL, ANSWERS
TO INTERROGATORIES, OR TRANSCRIPTS OF ORAL TESTIMONY PURSUANT TO THIS
SECTION SHALL TRANSMIT THEM TO THE CUSTODIAN. THE CUSTODIAN SHALL TAKE
PHYSICAL POSSESSION OF SUCH MATERIAL, ANSWERS, OR TRANSCRIPTS AND SHALL
BE RESPONSIBLE FOR THE USE MADE OF THEM AND FOR THE RETURN OF DOCUMENTA-
RY MATERIAL PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION.
(2) THE CUSTODIAN MAY CAUSE THE PREPARATION OF SUCH COPIES OF SUCH
DOCUMENTARY MATERIAL, ANSWERS TO INTERROGATORIES, OR TRANSCRIPTS OF ORAL
TESTIMONY AS MAY BE REQUIRED FOR OFFICIAL USE BY ANY INVESTIGATOR OR ANY
OTHER OFFICER OR EMPLOYEE OF THE DEPARTMENT OF LAW WHO IS AUTHORIZED FOR
SUCH USE BY THE ATTORNEY GENERAL. SUCH MATERIAL, ANSWERS, AND TRAN-
SCRIPTS MAY BE USED BY ANY AUTHORIZED INVESTIGATOR OR OTHER OFFICER OR
EMPLOYEE IN CONNECTION WITH THE TAKING OF ORAL TESTIMONY PURSUANT TO
THIS SECTION.
(3) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, NO DOCUMENTARY
MATERIAL, ANSWERS TO INTERROGATORIES, OR TRANSCRIPTS OF ORAL TESTIMONY,
OR COPIES THEREOF, WHILE IN THE POSSESSION OF THE CUSTODIAN, SHALL BE
AVAILABLE FOR EXAMINATION BY ANY INDIVIDUAL OTHER THAN AN INVESTIGATOR
OR OFFICER OR EMPLOYEE OF THE DEPARTMENT OF LAW AUTHORIZED PURSUANT TO
SUBPARAGRAPH TWO OF THIS PARAGRAPH. THE PROHIBITION IN THE PRECEDING
SENTENCE ON THE AVAILABILITY OF MATERIAL, ANSWERS, OR TRANSCRIPTS SHALL
NOT APPLY IF CONSENT IS GIVEN BY THE PERSON WHO PRODUCED SUCH MATERIAL,
ANSWERS, OR TRANSCRIPTS. NOTHING IN THIS SUBPARAGRAPH IS INTENDED TO
PREVENT DISCLOSURE TO A DISTRICT ATTORNEY OR TO ANY OTHER AGENCY OF THE
STATE FOR USE BY SUCH AGENCY IN FURTHERANCE OF ITS STATUTORY RESPONSI-
BILITIES. DISCLOSURE OF INFORMATION TO ANY AGENCY OTHER THAN A DISTRICT
ATTORNEY SHALL BE ALLOWED ONLY UPON APPLICATION, MADE BY THE ATTORNEY
GENERAL TO THE SUPREME COURT, SHOWING SUBSTANTIAL NEED FOR THE USE OF
THE INFORMATION BY SUCH AGENCY IN FURTHERANCE OF ITS STATUTORY RESPONSI-
BILITIES AND AFTER GIVING THE INDIVIDUALS WHO PROVIDED THE INFORMATION
AN OPPORTUNITY TO BE HEARD ON THE RELEASE OF THE INFORMATION.
(4) WHILE IN THE POSSESSION OF THE CUSTODIAN AND UNDER SUCH REASONABLE
TERMS AND CONDITIONS AS THE ATTORNEY GENERAL SHALL PRESCRIBE, THE
FOLLOWING SHALL APPLY:
(A) DOCUMENTARY MATERIAL AND ANSWERS TO INTERROGATORIES SHALL BE
AVAILABLE FOR EXAMINATION BY THE PERSON WHO PRODUCED SUCH MATERIAL OR
ANSWERS OR BY A REPRESENTATIVE OF THAT PERSON AUTHORIZED BY THAT PERSON
TO EXAMINE SUCH MATERIAL AND ANSWERS; AND
(B) TRANSCRIPTS OF ORAL TESTIMONY SHALL BE AVAILABLE FOR EXAMINATION
BY THE PERSON WHO PRODUCED SUCH TESTIMONY OR BY A REPRESENTATIVE OF THAT
PERSON AUTHORIZED BY THAT PERSON TO EXAMINE SUCH TRANSCRIPTS.
(C) WHENEVER ANY ATTORNEY OF THE DEPARTMENT OF LAW IS CONDUCTING ANY
OFFICIAL INVESTIGATION OR PROCEEDING, THE CUSTODIAN OF ANY DOCUMENTARY
MATERIAL, ANSWERS TO INTERROGATORIES, OR TRANSCRIPTS OF ORAL TESTIMONY
RECEIVED PURSUANT TO THIS SECTION MAY DELIVER TO SUCH ATTORNEY SUCH
MATERIAL, ANSWERS, OR TRANSCRIPTS FOR OFFICIAL USE IN CONNECTION WITH
ANY SUCH INVESTIGATION OR PROCEEDING AS SUCH ATTORNEY DETERMINES TO BE
REQUIRED. UPON THE COMPLETION OF ANY SUCH INVESTIGATION OR PROCEEDING,
SUCH ATTORNEY SHALL RETURN TO THE CUSTODIAN ANY SUCH MATERIAL, ANSWERS,
OR TRANSCRIPTS SO DELIVERED THAT HAVE NOT PASSED INTO THE CONTROL OF ANY
COURT OR AGENCY THROUGH INTRODUCTION INTO THE RECORD OF ANY CASE OR
PROCEEDING.
(D) IF ANY DOCUMENTARY MATERIAL HAS BEEN PRODUCED BY ANY PERSON IN THE
COURSE OF ANY INVESTIGATION PURSUANT TO A CIVIL INVESTIGATIVE DEMAND,
A. 5195 13
AND ANY CASE OR PROCEEDING BEFORE A COURT ARISING OUT OF SUCH INVESTI-
GATION, OR ANY PROCEEDING BEFORE ANY STATE GOVERNMENT AGENCY OR POLI-
TICAL SUBDIVISION INVOLVING SUCH MATERIAL, HAS BEEN COMPLETED, OR NO
CASE OR PROCEEDING IN WHICH SUCH MATERIAL MAY BE USED HAS BEEN COMMENCED
WITHIN A REASONABLE TIME AFTER COMPLETION OF THE EXAMINATION AND ANALY-
SIS OF ALL DOCUMENTARY MATERIAL AND OTHER INFORMATION ASSEMBLED IN THE
COURSE OF SUCH INVESTIGATION, THE CUSTODIAN SHALL, UPON WRITTEN REQUEST
OF THE PERSON WHO PRODUCED SUCH MATERIAL, RETURN TO SUCH PERSON ANY SUCH
MATERIAL (OTHER THAN COPIES FURNISHED TO THE INVESTIGATOR PURSUANT TO
PARAGRAPH (B) OF SUBDIVISION SEVEN OF THIS SECTION OR MADE FOR THE
DEPARTMENT OF LAW PURSUANT TO SUBPARAGRAPH TWO OF PARAGRAPH (B) OF THIS
SUBDIVISION), WHICH HAS NOT PASSED INTO THE CONTROL OF ANY COURT OR
AGENCY THROUGH INTRODUCTION INTO THE RECORD OF SUCH CASE OR PROCEEDING.
(E) (1) IN THE EVENT OF THE DEATH, DISABILITY, OR SEPARATION FROM
SERVICE IN THE DEPARTMENT OF LAW OF THE CUSTODIAN OF ANY DOCUMENTARY
MATERIAL, ANSWERS TO INTERROGATORIES, OR TRANSCRIPTS OF ORAL TESTIMONY
PRODUCED PURSUANT TO A CIVIL INVESTIGATIVE DEMAND ISSUED PURSUANT TO
THIS SECTION, OR IN THE EVENT OF THE OFFICIAL RELIEF OF SUCH CUSTODIAN
FROM RESPONSIBILITY FOR THE CUSTODY AND CONTROL OF SUCH MATERIAL,
ANSWERS, OR TRANSCRIPTS, THE ATTORNEY GENERAL SHALL PROMPTLY DO THE
FOLLOWING:
(A) DESIGNATE ANOTHER INVESTIGATOR TO SERVE AS CUSTODIAN OF SUCH MATE-
RIAL, ANSWERS, OR TRANSCRIPTS; AND
(B) TRANSMIT IN WRITING TO THE PERSON WHO PRODUCED SUCH MATERIAL,
ANSWERS, OR TESTIMONY NOTICE OF THE IDENTITY AND ADDRESS OF THE SUCCES-
SOR SO DESIGNATED.
(2) ANY PERSON WHO IS DESIGNATED TO BE A SUCCESSOR PURSUANT TO THIS
PARAGRAPH SHALL HAVE, WITH REGARD TO SUCH MATERIAL, ANSWERS, OR TRAN-
SCRIPTS, THE SAME DUTIES AND RESPONSIBILITIES AS WERE IMPOSED BY THIS
SECTION UPON THAT PERSON'S PREDECESSOR IN OFFICE, EXCEPT THAT THE
SUCCESSOR SHALL NOT BE HELD RESPONSIBLE FOR ANY DEFAULT OR DERELICTION
THAT OCCURRED BEFORE THAT DESIGNATION.
11. (A) WHENEVER ANY PERSON FAILS TO COMPLY WITH ANY CIVIL INVESTI-
GATIVE DEMAND, OR WHENEVER SATISFACTORY COPYING OR REPRODUCTION OF ANY
MATERIAL REQUESTED IN SUCH DEMAND CANNOT BE DONE AND SUCH PERSON REFUSES
TO SURRENDER SUCH MATERIAL, THE ATTORNEY GENERAL MAY FILE IN THE SUPREME
COURT AND SERVE UPON SUCH PERSON A MOTION FOR AN ORDER OF SUCH COURT FOR
THE ENFORCEMENT OF THE CIVIL INVESTIGATIVE DEMAND.
(B) (1) ANY PERSON WHO RECEIVES A CIVIL INVESTIGATIVE DEMAND MAY FILE
IN THE SUPREME COURT AND SERVE UPON THE INVESTIGATOR IDENTIFIED IN SUCH
DEMAND A MOTION FOR AN ORDER OF THE COURT TO MODIFY OR SET ASIDE SUCH
DEMAND. ANY ORDER ISSUED PURSUANT TO THIS SUBPARAGRAPH MUST BE FILED:
(A) WITHIN TWENTY DAYS AFTER THE DATE OF SERVICE OF THE CIVIL INVESTI-
GATIVE DEMAND, OR AT ANY TIME BEFORE THE RETURN DATE SPECIFIED IN THE
DEMAND, WHICHEVER DATE IS EARLIER; OR
(B) WITHIN SUCH LONGER PERIOD AS MAY BE PRESCRIBED IN WRITING BY ANY
INVESTIGATOR IDENTIFIED IN THE DEMAND.
(2) THE MOTION SHALL SPECIFY EACH GROUND UPON WHICH THE MOVANT RELIES
IN SEEKING RELIEF PURSUANT TO SUBPARAGRAPH ONE OF THIS PARAGRAPH, AND
MAY BE BASED UPON ANY FAILURE OF THE DEMAND, OR ANY PARTICULAR PORTION
THEREOF, TO COMPLY WITH THE PROVISIONS OF THIS SECTION OR UPON ANY
CONSTITUTIONAL OR OTHER LEGAL RIGHT OR PRIVILEGE OF SUCH PERSON. DURING
THE PENDENCY OF THE MOTION IN THE COURT, THE COURT MAY STAY, AS IT DEEMS
PROPER, THE RUNNING OF THE TIME ALLOWED FOR COMPLIANCE WITH THE DEMAND,
IN WHOLE OR IN PART, EXCEPT THAT THE PERSON FILING THE MOTION SHALL
A. 5195 14
COMPLY WITH ANY PORTIONS OF THE DEMAND NOT SOUGHT TO BE MODIFIED OR SET
ASIDE.
(C) AT ANY TIME DURING WHICH ANY CUSTODIAN IS IN CUSTODY OR CONTROL OF
ANY DOCUMENTARY MATERIAL OR ANSWERS TO INTERROGATORIES PRODUCED, OR
TRANSCRIPTS OF ORAL TESTIMONY GIVEN, BY ANY PERSON IN COMPLIANCE WITH
ANY CIVIL INVESTIGATIVE DEMAND, SUCH PERSON MAY FILE IN THE SUPREME
COURT AND SERVE UPON SUCH CUSTODIAN, A MOTION FOR AN ORDER OF SUCH COURT
TO REQUIRE THE PERFORMANCE BY THE CUSTODIAN OF ANY DUTY IMPOSED UPON THE
CUSTODIAN BY THIS SECTION.
(D) WHENEVER ANY MOTION IS FILED IN SUPREME COURT, SUCH COURT SHALL
HAVE JURISDICTION TO HEAR AND DETERMINE THE MATTER SO PRESENTED, AND TO
ENTER SUCH ORDER OR ORDERS AS MAY BE REQUIRED TO CARRY OUT THE
PROVISIONS OF THIS SECTION. ANY FINAL ORDER SO ENTERED SHALL BE SUBJECT
TO APPEAL. ANY DISOBEDIENCE OF ANY FINAL ORDER ENTERED PURSUANT TO THIS
SECTION BY ANY COURT SHALL BE PUNISHED AS CONTEMPT OF COURT.
(E) THE CIVIL PRACTICE LAW AND RULES SHALL APPLY TO ANY MOTION ISSUED
PURSUANT TO THIS SUBDIVISION, TO THE EXTENT THAT SUCH LAW AND RULES ARE
NOT INCONSISTENT WITH THE PROVISIONS OF THIS SECTION.
S 255. EVIDENTIARY STANDARDS. A DETERMINATION THAT A PERSON HAS
VIOLATED THE PROVISIONS OF THIS ARTICLE SHALL BE BASED ON A PREPONDER-
ANCE OF THE EVIDENCE.
S 256. PERIOD OF LIMITATIONS. A FALSE CLAIMS ACTION PURSUANT TO THIS
ARTICLE SHALL BE BROUGHT WITHIN SIX YEARS AFTER THE DATE ON WHICH THE
FALSE CLAIM IS DISCOVERED OR BY EXERCISE OF REASONABLE DILIGENCE SHOULD
HAVE BEEN DISCOVERED AND, IN ANY EVENT, NO MORE THAN TEN YEARS AFTER THE
DATE ON WHICH THE VIOLATION OF THIS ARTICLE IS COMMITTED.
S 257. JURISDICTION. 1. NO COURT SHALL HAVE JURISDICTION OVER AN
ACTION UNDER THIS ARTICLE BASED UPON THE PUBLIC DISCLOSURE OF ALLEGA-
TIONS OR TRANSACTIONS IN A CRIMINAL, CIVIL, OR ADMINISTRATIVE HEARING,
IN A LEGISLATIVE OR ADMINISTRATIVE REPORT, HEARING, AUDIT, OR INVESTI-
GATION, OR FROM THE NEWS MEDIA, UNLESS THE ACTION IS BROUGHT BY THE
ATTORNEY GENERAL OR THE PERSON BRINGING THE ACTION IS AN ORIGINAL SOURCE
OF THE INFORMATION.
2. FOR PURPOSES OF THIS SECTION AND ARTICLE: "ORIGINAL SOURCE" MEANS
AN INDIVIDUAL WHO HAS DIRECT AND INDEPENDENT KNOWLEDGE OF THE INFORMA-
TION ON WHICH THE ALLEGATIONS ARE BASED AND HAS VOLUNTARILY PROVIDED THE
INFORMATION TO THE STATE BEFORE FILING AN ACTION UNDER THIS ARTICLE THAT
IS BASED ON THE INFORMATION, AND WHOSE INFORMATION PROVIDED THE BASIS OR
CATALYST FOR THE INVESTIGATION, HEARING, AUDIT, OR REPORT THAT LED TO
THE PUBLIC DISCLOSURE.
S 258. NONEXCLUSIVITY. THE PROVISIONS OF THIS ARTICLE ARE NOT EXCLU-
SIVE AND ARE IN ADDITION TO ANY OTHER APPLICABLE LAW OR REMEDY. THIS
ARTICLE SHALL BE LIBERALLY CONSTRUED AND APPLIED TO PROMOTE THE PUBLIC
INTEREST.
S 259. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
TION THEREOF TO ANY PERSON OR BUSINESS ENTITY OR CIRCUMSTANCE IS HELD
INVALID, VOID, OR UNCONSTITUTIONAL BY A COURT OF COMPETENT JURISDICTION,
SUCH HOLDING SHALL NOT AFFECT THE VALIDITY OR CONSTITUTIONALITY OF OTHER
PROVISIONS OR APPLICATIONS OF THIS ARTICLE WHICH CAN BE GIVEN EFFECT
WITHOUT SUCH INVALID, VOID, OR UNCONSTITUTIONAL PROVISION OR APPLICA-
TION, IT BEING HEREBY EXPRESSLY DECLARED THAT THIS ARTICLE AND EACH
PROVISION THEREOF WOULD HAVE BEEN ADOPTED IRRESPECTIVE OF THE FACT THAT
ANY ONE OR MORE OTHER PROVISIONS BE DECLARED INVALID OR UNCONSTITU-
TIONAL.
S 2. The state finance law is amended by adding a new section 99-q to
read as follows:
A. 5195 15
S 99-Q. WHISTLEBLOWER REWARD AND PROTECTION FUND. 1. THERE IS HEREBY
ESTABLISHED A WHISTLEBLOWER REWARD AND PROTECTION FUND TO BE OPERATED AS
AN ENTERPRISE FUND WITH ASSETS NOT TO EXCEED TWO MILLION DOLLARS AT ANY
TIME. THE FUND SHALL CONSIST OF CRIMINAL FINES, CIVIL PENALTIES, AND
DAMAGES COLLECTED IN CASES BROUGHT PURSUANT TO ARTICLE SEVENTEEN OF THIS
CHAPTER, OTHER THAN FUNDS AWARDED TO A COOPERATOR OR FOR RESTITUTION TO
A PARTICULAR AGENCY IN THE AMOUNT OF THE ACTUAL LOSS TO THAT AGENCY.
SUCH FUNDS (WITH THE EXCEPTION OF AMOUNTS FOR AN AWARD TO A COOPERATOR
OR RESTITUTION TO A PROGRAM) SHALL BE DEPOSITED IN THE FUND UPON
RECEIPT. MONIES IN THE FUND SHALL NOT REVERT TO THE GENERAL FUND AT THE
END OF ANY FISCAL YEAR, BUT SHALL REMAIN AVAILABLE FOR THE PURPOSES SET
FORTH IN THIS SECTION. ANY BALANCE IN EXCESS OF THAT ALLOWED THE FUND BY
THIS SECTION SHALL BE DEPOSITED IN THE GENERAL FUND.
2. AMOUNTS IN THE FUND SHALL BE AVAILABLE FOR USE BY THE DEPARTMENT OF
LAW AND THE DIVISION OF STATE POLICE TO CARRY OUT THE ENFORCEMENT OF
ARTICLE SEVENTEEN OF THIS CHAPTER, INCLUDING ALL COSTS REASONABLY
RELATED TO PROSECUTING CASES AND CONDUCTING INVESTIGATIONS PURSUANT TO
ARTICLE SEVENTEEN OF THIS CHAPTER.
3. THE FUND SHALL BE AUDITED ANNUALLY BY THE COMPTROLLER.
4. IT IS INTENDED THAT DISBURSEMENTS MADE FROM THE FUND TO THE DEPART-
MENT OF LAW OR OTHER APPROPRIATE AGENCY BE USED TO SUPPLEMENT AND NOT
SUPPLANT SAID DEPARTMENT'S APPROPRIATED OPERATING BUDGET.
5. THE FUND SHALL BE FUNDED INITIALLY BY APPROPRIATION OF ONE HUNDRED
THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS
OF SUBDIVISION ONE OF THIS SECTION, THE FIRST ONE HUNDRED THOUSAND
DOLLARS DEPOSITED TO THE CREDIT OF THE FUND AFTER SUCH INITIAL APPROPRI-
ATION SHALL BE REIMBURSED TO THE GENERAL FUND.
S 3. This act shall take effect on the one hundred twentieth day after
it shall have become law; provided that any rule or regulation necessary
for the timely implementation of this act on its effective date shall be
promulgated on or before such effective date.