Assembly Bill A7989

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7989
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 24, 2017
                                ___________
 
 Introduced by M. of A. BARNWELL, WEINSTEIN -- (at request of the Depart-
   ment of Law) -- read once and referred to the Committee on Judiciary
 
 AN  ACT  to  amend  the  state finance law, in relation to adjustment of
   penalties due to inflation
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. The legislature finds that
 adjustment  of  the  minimum and maximum penalty amounts provided in New
 York's False Claims Act is necessary in order for New York  to  maintain
 compliance  with the federal Deficit Reduction Act of 2005, Social Secu-
 rity Act § 1090(a) (the  "DRA")  by  providing  for  penalty  provisions
 equally  effective  to  the federal False Claims Act.  The federal False
 Claims Act, amended effective August 1, 2016, provides for adjustment of
 federal civil penalties based on inflation; the New  York  False  Claims
 Act  currently  provides  only  for  fixed  penalties. When state law is
 compliant with the DRA, the state  is  entitled  to  receive  a  greater
 percentage share of recoveries from enforcement actions concerning Medi-
 caid  program funds, regardless of the actual amount of penalty imposed.
 When state law falls out of compliance, the state is at risk  of  losing
 tens of millions of dollars annually.  It is the legislative intent that
 this act maintains the state's compliance with federal Deficit Reduction
 Act  and  federal False Claims Act penalties without the need for legis-
 lation enactments to adjust for inflation.
   § 2. Paragraph (h) of subdivision  1  of  section  189  of  the  state
 finance law, as amended by section 8 of part A of chapter 56 of the laws
 of 2013, is amended to read as follows:
   (h) knowingly conceals or knowingly and improperly avoids or decreases
 an  obligation  to  pay  or transmit money or property to the state or a
 local government, or conspires to do the same; shall be  liable  to  the
 state  or  a local government, as applicable, for a civil penalty of not
 less than six  thousand  dollars  and  not  more  than  twelve  thousand
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10852-02-7

 A. 7989                             2
 
 dollars,  EXCEPT  THAT  THESE  LOWER AND UPPER LIMITS ON LIABILITY SHALL
 AUTOMATICALLY BE ADJUSTED TO EQUAL THE CIVIL PENALTY ALLOWED  UNDER  THE
 FEDERAL  FALSE CLAIMS ACT, 31 U.S.C. SEC.  3729, ET SEQ., AS AMENDED, IF
 AND  AS  THE PENALTIES IN SAID FEDERAL FALSE CLAIMS ACT ARE ADJUSTED FOR
 INFLATION BY THE FEDERAL CIVIL PENALTIES  INFLATION  ADJUSTMENT  ACT  OF
 1990,  AS AMENDED (28 U.S.C. 2461 NOTE; PUB. L. NO. 101-410), plus three
 times the amount of all damages, including consequential damages,  which
 the  state  or  local  government  sustains  because  of the act of that
 person.
   § 3. This act shall take effect immediately.