Senate Bill S3832

                                BILL NUMBER:S3832

TITLE OF BILL:

An act to amend the state finance law, in relation to the disposition
and deposit of moneys received by the state from the settlement or
compromise of a claim or from a judgment arising from a claim

PURPOSE:

Provides that moneys received by the State from the settlement or
compromise of a claim, or by judgment, shall be paid to the state
comptroller for deposit into the general fund.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the state finance law by adding a new
section 10-a.

JUSTIFICATION:

This bill would require that all moneys received from a settlement,
judgment or compromise as a result of a claim or cause brought by the
State of New York or any State agency shall be transferred and paid to
the State Comptroller and the Comptroller shall deposit such funds
into the State General Fund.
              

The Governor and the Attorney General recently announced an agreement
to split the first installment of 5163 million of New York State's
$613 million settlement over mortgage bond sales that contributed to
the 2008 financial crisis by JP Morgan Chase. However, any such
recovery should rightly belong to The People of the State of New
York", as the plaintiffs on whose behalf our State Attorney General
prosecuted the matter, as our agent, and should therefore have been
deposited into the General Fund for public use and not appropriated in
a political fashion.

Unchecked control of such extraordinary sums of the money of the
people of our State, would give that office power far in excess of
what could possibly have been contemplated by "the people" under the
constitution or otherwise. The people of this State are represented by
their legislature and this measure would better serve the public by
requiring legislative involvement and vote in directing the proper use
of any such funds, rather than being directed by a single office or
individual whose purpose and qualifications are not aligned with such
functions.

This bill would provide oversight of financial recoveries to make sure
that such funds are appropriated with approval of the Senate and
Assembly pursuant to the State Constitution.

LEGISLATIVE HISTORY:

2014: Referred to Finance

FISCAL IMPLICATIONS:


Recovered funds would be deposited in the General Fund.

EFFECTIVE DATE:

This act shall take effect immediately.