S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 740--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by M. of A. KELLNER -- read once and referred to the Commit-
  tee on Governmental Operations --  recommitted  to  the  Committee  on
  Governmental  Operations in accordance with Assembly Rule 3, sec. 2 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN ACT to amend the executive law, in relation to enacting the "improper
  payments reporting and reduction act"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The executive law is amended by adding a new article 4-B to
read as follows:
                               ARTICLE 4-B
              IMPROPER PAYMENTS REPORTING AND REDUCTION ACT
SECTION 56.   SHORT TITLE.
        56-A. DEFINITIONS.
        57.   IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES.
        57-A. ESTIMATION OF IMPROPER PAYMENTS.
        57-B. REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS.
        58.   IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP.
        59.   APPLICATION OF ARTICLE.
  S 56. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
"IMPROPER PAYMENTS REPORTING AND REDUCTION ACT".
  S 56-A. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
SHALL MEAN:
  1.  "AGENCY"  MEANS ANY EXECUTIVE BRANCH AGENCY, DEPARTMENT, DIVISION,
OFFICE, BOARD, COMMISSION, PUBLIC AUTHORITY (OTHER THAN A MULTI-STATE OR
MULTI-NATIONAL AUTHORITY) OR PUBLIC BENEFIT CORPORATION, WITH AN  ANNUAL
BUDGET  OF  AT  LEAST  TWENTY  MILLION  DOLLARS,  THE  HEAD  OF WHICH IS
APPOINTED BY THE GOVERNOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00681-03-2
              

A. 740--A                           2

  2. "IMPROPER PAYMENT" MEANS ANY PAYMENT THAT SHOULD NOT HAVE BEEN MADE
OR THAT WAS MADE IN AN  INCORRECT  AMOUNT,  INCLUDING  OVERPAYMENTS  AND
UNDERPAYMENTS,  WHETHER  UNDER STATUTORY, CONTRACTUAL, ADMINISTRATIVE OR
OTHER LEGALLY APPLICABLE REQUIREMENTS. SUCH TERM SHALL INCLUDE, BUT  NOT
BE  LIMITED  TO, ANY PAYMENT TO AN INELIGIBLE RECIPIENT, ANY PAYMENT FOR
AN INELIGIBLE SERVICE, ANY DUPLICATE PAYMENT, PAYMENTS FOR SERVICES  NOT
RECEIVED AND ANY PAYMENT THAT DOES NOT ACCOUNT FOR CREDIT FOR APPLICABLE
DISCOUNTS.
  3.  "PAYMENT"  MEANS  ANY  PAYMENT,  INCLUDING A COMMITMENT FOR FUTURE
PAYMENT, THAT IS MADE BY AN AGENCY, A STATE  CONTRACTOR,  OR  A  GOVERN-
MENTAL  OR OTHER ORGANIZATION ADMINISTERING A STATE PROGRAM OR ACTIVITY,
AND WHICH DERIVED FROM STATE FUNDS OR OTHER  STATE  RESOURCES,  OR  THAT
WILL BE REIMBURSED FROM STATE FUNDS OR OTHER STATE RESOURCES.
  S  57. IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES. THE HEAD
OF EACH AGENCY SHALL, IN ACCORDANCE WITH GUIDELINES PROMULGATED PURSUANT
TO SECTION FIFTY-EIGHT OF THIS ARTICLE, ANNUALLY REVIEW ALL PROGRAMS AND
ACTIVITIES THAT IT ADMINISTERS,  AND  IDENTIFY  ALL  SUCH  PROGRAMS  AND
ACTIVITIES THAT MAY BE SUSCEPTIBLE TO IMPROPER PAYMENTS.
  S  57-A. ESTIMATION OF IMPROPER PAYMENTS. WITH RESPECT TO EACH PROGRAM
AND ACTIVITY IDENTIFIED IN SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD
OF THE AGENCY SHALL:
  1. ESTIMATE THE ANNUAL AMOUNT OF IMPROPER PAYMENTS; AND
  2. REPORT SUCH ESTIMATE TO THE PUBLIC, AND THE CHAIRS  OF  THE  SENATE
FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE ON OR BEFORE
JANUARY  FIRST  OF  THE SUCCEEDING CALENDAR YEAR, AND SHALL BE POSTED ON
THE AGENCY'S INTERNET WEBSITE AND ANY OTHER WEBSITE ESTABLISHED PURSUANT
TO SECTION FIFTY-EIGHT OF THIS ARTICLE.
  ALL AGENCIES SHALL USE THE SAME METHOD OF REPORTING, AS PRESCRIBED  BY
SECTION FIFTY-EIGHT OF THIS ARTICLE.
  S  57-B.  REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS. WITH RESPECT
TO ANY PROGRAM  OR  ACTIVITY  OF  AN  AGENCY  WITH  IDENTIFIED  IMPROPER
PAYMENTS  PURSUANT  TO  SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD OF
THE  AGENCY  SHALL  INCLUDE  WITH  THE  ESTIMATE  PURSUANT  TO   SECTION
FIFTY-SEVEN-A  OF  THIS  ARTICLE  A REPORT ON WHAT ACTIONS THE AGENCY IS
TAKING TO REDUCE THE IMPROPER PAYMENTS, INCLUDING:
  1. A DISCUSSION OF THE CAUSES OF  THE  IMPROPER  PAYMENTS  IDENTIFIED,
ACTIONS  TAKEN TO CORRECT THOSE CAUSES, AND RESULTS OF THE ACTIONS TAKEN
TO ADDRESS THOSE CAUSES;
  2. A STATEMENT OF WHETHER THE AGENCY HAS THE INFORMATION  SYSTEMS  AND
OTHER  INFRASTRUCTURE  IT  NEEDS IN ORDER TO REDUCE IMPROPER PAYMENTS TO
MINIMAL COST-EFFECTIVE LEVELS;
  3. IF THE AGENCY DOES NOT HAVE  SUCH  SYSTEMS  AND  INFRASTRUCTURE,  A
DESCRIPTION  OF  THE  RESOURCES  THE  AGENCY HAS REQUESTED IN ITS BUDGET
SUBMISSION TO OBTAIN THE NECESSARY INFORMATION SYSTEMS  AND  INFRASTRUC-
TURE; AND
  4.  A  DESCRIPTION  OF  THE  STEPS THE AGENCY HAS TAKEN TO ENSURE THAT
AGENCY MANAGERS (INCLUDING THE AGENCY HEAD)  ARE  HELD  ACCOUNTABLE  FOR
REDUCING IMPROPER PAYMENTS.
  S  58.  IMPROPER  PAYMENT  ESTIMATE  GUIDANCE GROUP. 1. THERE SHALL BE
ESTABLISHED, WITHIN THE EXECUTIVE BRANCH, THE IMPROPER PAYMENT  ESTIMATE
GUIDANCE  GROUP.  SUCH  GROUP  SHALL  BE COMPOSED OF THE DIRECTOR OF THE
BUDGET WHO SHALL CHAIR THE  GROUP,  THE  STATE  INSPECTOR  GENERAL,  THE
INSPECTOR  GENERAL  OF THE METROPOLITAN TRANSPORTATION AUTHORITY AND THE
WELFARE INSPECTOR GENERAL.
  2. WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS  ARTI-
CLE,  THE  IMPROPER  PAYMENT  ESTIMATE GUIDANCE GROUP SHALL MEET AND, IN

A. 740--A                           3

CONSULTATION WITH THE STATE COMPTROLLER, PRESCRIBE  GUIDELINES  FOR  THE
IMPLEMENTATION  OF  THE  PROVISIONS  OF THIS ARTICLE. ALL AGENCIES SHALL
COOPERATE WITH SUCH GROUP TO ASSIST IT AS NECESSARY IN  THE  DEVELOPMENT
AND PROMULGATION OF GUIDELINES. THE GUIDELINES SHALL INCLUDE, BUT NOT BE
LIMITED TO:
  A.  THE MANNER IN WHICH AGENCIES SHALL REVIEW PROGRAMS AND ACTIVITIES,
AND IDENTIFY THOSE WHICH ARE SUSCEPTIBLE TO IMPROPER PAYMENTS;
  B. THE MANNER IN WHICH AGENCIES SHALL  CALCULATE  STATISTICALLY  VALID
ESTIMATES  OF  THE  ANNUAL  AMOUNT  OF IMPROPER PAYMENTS IN PROGRAMS AND
ACTIVITIES;
  C. THE MANNER IN  WHICH  AGENCIES  SHALL  IMPLEMENT  PLANS  TO  REDUCE
IMPROPER PAYMENTS; AND
  D.  THE  MANNER IN WHICH AGENCIES SHALL REPORT ESTIMATES OF THE ANNUAL
AMOUNT OF IMPROPER PAYMENTS IN PROGRAMS AND ACTIVITIES, AND PROGRESS  IN
REDUCING THEM.
  3.  THE IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP SHALL THEREAFTER MEET
AT ANY TIME AT THE CALL OF EITHER THE DIRECTOR  OF  THE  BUDGET  OR  THE
STATE  COMPTROLLER;  PROVIDED  THAT  SUCH GROUP SHALL MEET NO FEWER THAN
ONCE EVERY FOUR YEARS TO REVIEW THE GUIDELINES.
  S 59.  APPLICATION OF ARTICLE. THE PROVISIONS OF THIS ARTICLE SHALL:
  1. APPLY TO THE ADMINISTRATION OF PROGRAMS AND IMPROPER PAYMENTS  MADE
IN  STATE  FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO THOUSAND
THIRTEEN; AND
  2. REQUIRE THE  INCLUSION  OF  THE  ESTIMATES,  REPORTED  PURSUANT  TO
SECTION  FIFTY-SEVEN-A OF THIS ARTICLE, IN THE AGENCY BUDGET SUBMISSIONS
FOR STATE FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO  THOUSAND
FOURTEEN.
  S 2. This act shall take effect immediately.