Senate Bill S4021

                                 BILL NUMBER:  S4021

 TITLE OF BILL :
An act to amend the executive law, in relation to referrals by the
state inspector general to the attorney general for investigations of
state officers and employees of the executive chamber or upon a
determination of a conflict of interest


 PURPOSE :
To provide for an independent avenue of review in instances where the
State Inspector General is referred an allegation of corruption,
fraud, criminal activity, conflict of interest or abuse concerning
state officers or employees of the Executive Chamber and to prevent
any appearance of a direct conflict of interest between the State
Inspector General and the Office of the Governor by providing for a
referral to the Attorney General in any investigation in which a
conflict of interest is determined to exist.

 SUMMARY OF PROVISIONS :
The bill adds a new section 56 to the Executive law to provide that in
cases where an alleged incident of corruption, fraud, criminal
activity, conflict of interest or abuse relates to an employee of the
executive chamber involving his or her employment or business
dealings, the State Inspector General shall refer the matter to the
Attorney General who shall commence a review of the alleged
              

impropriety. In any investigation in which a conflict of interest
appears, the State Inspector General likewise shall refer the matter
to the Attorney General. The Attorney General would be granted duties
and powers similar to those granted to the State Inspector General
with regard to such investigations. Specifically, the Attorney General
would be able to subpoena and enforce the attendance of witnesses;
administer oaths or affirmations and examine witnesses under oath;
require the production of books and papers deemed relevant or material
to any investigation, examination or review, examine documents and
records prepared, maintained or held by the executive chamber; require
any member of the executive chamber to answer questions concerning any
matter related to the performance of his official duties; monitor the
implementation by the Executive of any recommendations made by the
Attorney General and perform any other functions that are necessary or
appropriate to fulfill the duties and responsibilities of office. The
Attorney General would also be responsible for determining whether
disciplinary action, civil or criminal prosecution, or further
investigation by a federal, state or local agency is warranted, and to
assist in any such investigation. He is charged with the preparation
and appropriate public release of the investigative report except when
confidentiality is require to protect and ongoing investigation and to
recommend remedial action to prevent or eliminate corruption, fraud,
criminal activity, conflicts of interest or abuse in the executive
chamber; and to prevent or eliminate conflicts of interest in any
investigation. The use of statements by an executive chamber employee
for a subsequent criminal prosecution would be barred other than for
perjury or contempt arising out of such testimony. Employees who
refuse to testify would be subject to removal from employment or other
appropriate penalty.

 JUSTIFICATION :
This bill is necessary to remedy an inherent conflict of interest
which occurs when an allegation of corruption, fraud, criminal
activity, conflicts of interest or abuse is received by the State
Inspector General relating to an employee in the Executive Chamber.
Further, this bill recognizes that conflicts of interest may arise
from an investigation of a covered agency as the investigation
progresses and should likewise be transferred to remove an appearance
of impropriety. Executive Law Section 52 provides for the
establishment of the State Inspector General within the Executive
Department This section authorizes the Governor to hire and set the
salary of the State Inspector General whose term is contemporaneous
with that of the Governor. Additionally, the State Inspector General
is required to report to the Secretary to the Governor. This current
statutory scheme may work well in most instances, however there is an
inherent conflict of interest when a report of corruption, fraud,
criminal activity, conflicts of interest or abuse involves an employee
of the Executive Chamber. This conflict is trouble- some in that the
State Inspector General must report his or her findings to the
Secretary to the Governor, who typically craft directions and sets the
tone for day to day operations of the Executive Chamber.  While an
investigation may begin with no apparent conflict, one may arise as
employees within the Executive Chamber become involved in the
investigation, possibly even as subjects of investigation themselves.
A conflict of interest rises to an even more egregious level when the
alleged matter of investigation directly involves the conduct of the
Secretary to the Governor. Requiring in these instances-- where an
employee is the subject of the investigation, or becomes a part of the
investigation-- that the State Inspector General transfers the review
to the State Attorney general will insure that an in-depth report and
impartial review will be conducted.

 LEGISLATIVE HISTORY :
2007: S.6453 - Investigations and Government Operations
2008: S.6453 - Committed to Rules

 FISCAL IMPLICATIONS :
None. Shifting of investigation costs from the State Inspector
General's Office to the State Attorney General's Office.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.