NY State Senate Bill 2017-S3965

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
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Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to local government
Jan 31, 2017	referred to local government

2017-S3965 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Volunteer Ambulance Workers' Benefit Law
Laws Affected:: Rpld & add §55, Vol Amb Work Ben L; rpld & add §55, Vol Ffs Ben L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7552
2015-2016: S6052

2017-S3965 (ACTIVE) - Summary

Relates to penalties for false representation and fraudulent practices; makes such provisions the same as those applicable to workers' compensation provisions.

2017-S3965 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3965

 TITLE OF BILL :  An act to amend the volunteer ambulance workers'
benefit law and the volunteer firefighters' benefit law, in relation
to penalties for false representation and to repeal certain provisions
of such laws relating thereto

 PURPOSE :

The purpose of the legislation is to ensure that sections 114 and
114-a of the workers compensation law is applicable to volunteer
firefighters and volunteer ambulance workers.

 SUMMARY OF PROVISIONS :

Section one repeals section 55 of the volunteer firefighters benefit
law and replaces it with current sections 114 and I I 4-a of the
workers' compensation law.

Section two repeals section 55 of the volunteer ambulance workers
benefit law and replaces it with current sections 114 and 114-a of the
workers' compensation law.

Section three provides for an immediate effective date.

 JUSTIFICATION :

Currently, a volunteer firefighter or ambulance worker who is injured
in the line of duty is eligible for workers' compensation benefits if
he or she can demonstrate a loss of earning capacity. Additionally,
both the workers' compensation law and the volunteer firefighters
benefits law (VFBL) provide for criminal penalties for offering
fraudulent information in support of a claim.  In 1996, the
legislature amended the workers' compensation law to also include
civil penalties for fraudulent claims by adding a new section 114-a.
Unfortunately, no corresponding amendment was made to either the VFBL
or the volunteer ambulance workers benefits law (VAWBL). The issue of
the applicability of section 114-a to the to the VFBL was addressed
before the New York State Workers Compensation Board and the Board
determined that section 114-a was inapplicable to the VFBL.

This issue was appealed to the Appellate Division, Third Department
and in the case of Giello v. Providence Fire District, 869 N.Y.S.2d
676 (2008) the Appellate Division affirmed the Workers' Compensation
Board's decision establishing that section 114-a which provides for a
disqualification of benefits to a claimant for making false
representations did not apply to benefits awarded pursuant to the VFBL
on the basis that section 114-a was unambiguous and limited its
application to wage replacement benefits under the workers'
compensation law.

Under the circumstances, the issue of the applicability of section
114-a to the VFBL and VAWBL should be addressed by the legislature.
It is only fair that civil penalties should be provided for fraudulent
claims involving volunteer firefighters offering fraudulent
information in support of a claim under the VFBL.

The VFBL and VAWBL provides cash benefits and/or medical care for
volunteer members who are injured or become ill in the line of duty,
and recognizes the unselfish service of volunteer firefighters and
ambulance workers. The law was designed to protect these volunteers
who are injured in the line of duty. Similarly, the law should be
amended to provide for civil penalties similar to section 114-a in
keeping with the intent of the statute which was to protect volunteer
firefighters and ambulance workers who provide unselfish service and
provide for civil penalties for those who choose to take advantage of
the statute by submitting fraudulent information in support of a claim
under the VFBL and VAWBL.

 LEGISLATIVE HISTORY :

S.6052 of 2015-16;
S.7552 of 2014.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
Immediately.

2017-S3965 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3965
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2017
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the volunteer ambulance workers'  benefit  law  and  the
   volunteer  firefighters'  benefit  law,  in  relation to penalties for
   false representation and to repeal certain  provisions  of  such  laws
   relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 55 of the volunteer ambulance workers' benefit  law
 is REPEALED and a new section 55 is added to read as follows:
   §  55.  FRAUDULENT  PRACTICES.  1.  ANY PERSON WHO, KNOWINGLY AND WITH
 INTENT TO DEFRAUD PRESENTS, CAUSES TO BE  PRESENTED,  OR  PREPARES  WITH
 KNOWLEDGE  OR  BELIEF  THAT  IT WILL BE PRESENTED TO OR BY AN INSURER OR
 PURPORTED INSURER, OR ANY AGENT THEREOF, ANY WRITTEN STATEMENT  AS  PART
 OF,  OR  IN SUPPORT OF, AN APPLICATION FOR THE ISSUANCE OF OR THE RATING
 OF AN INSURANCE POLICY  FOR  COMPENSATION  INSURANCE,  OR  A  CLAIM  FOR
 PAYMENT  OR  OTHER BENEFIT PURSUANT TO A COMPENSATION POLICY WHICH HE OR
 SHE KNOWS TO: (I) CONTAIN A FALSE STATEMENT OR REPRESENTATION CONCERNING
 ANY FACT MATERIAL THERETO; OR (II)  OMITS  ANY  FACT  MATERIAL  THERETO,
 SHALL BE GUILTY OF A CLASS E FELONY. UPON CONVICTION, THE COURT IN ADDI-
 TION  TO  ANY  OTHER  AUTHORIZED  SENTENCE,  MAY ORDER FORFEITURE OF ALL
 RIGHTS TO COMPENSATION OR PAYMENTS OF ANY BENEFIT, AND MAY ALSO  REQUIRE
 RESTITUTION  OF  ANY  AMOUNT RECEIVED AS A RESULT OF A VIOLATION OF THIS
 SUBDIVISION.
   2. AN EMPLOYER OR CARRIER, OR ANY EMPLOYEE, AGENT, OR PERSON ACTING ON
 BEHALF OF AN EMPLOYER OR CARRIER, WHO KNOWINGLY MAKES A FALSE  STATEMENT
 OR  REPRESENTATION  AS  TO  A  MATERIAL FACT IN THE COURSE OF REPORTING,
 INVESTIGATION OF, OR ADJUSTING A CLAIM FOR ANY BENEFIT OR PAYMENT  UNDER
 THE  WORKERS'  COMPENSATION LAW FOR THE PURPOSE OF AVOIDING PROVISION OF
 SUCH PAYMENT OR BENEFIT SHALL BE GUILTY OF A CLASS E FELONY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04873-01-7

 S. 3965                             2
 
   3. A PERSON WHO KNOWINGLY MAKES A FALSE STATEMENT OR REPRESENTATION AS
 TO A MATERIAL FACT FOR THE PURPOSE OF OBTAINING, MAINTAINING OR RENEWING
 INSURANCE UNDER THIS CHAPTER, WHETHER FOR HIMSELF OR HERSELF OR FOR  ANY
 OTHER PERSON OR ENTITY OR FOR THE PURPOSE OF EVADING THE REQUIREMENTS OF
 SECTION  FIFTY  OF  THIS CHAPTER SHALL BE GUILTY OF A CLASS E FELONY. IN
 ADDITION TO ANY OTHER REMEDY, THE CARRIER PROVIDING INSURANCE  SHALL  BE
 ENTITLED  TO  RESTITUTION OF ANY AMOUNT OBTAINED OR WITHHELD AS A RESULT
 OF A VIOLATION OF THIS SUBDIVISION.
   4. CONSISTENT WITH THE PROVISIONS OF THE CRIMINAL  PROCEDURE  LAW,  IN
 ANY PROSECUTION ALLEGING A VIOLATION OF SUBDIVISION ONE, TWO OR THREE OF
 THIS  SECTION,  OR  SECTIONS FIFTY-TWO AND ONE HUNDRED THIRTY-ONE OF THE
 WORKERS' COMPENSATION LAW, IN WHICH THE ACT OR  ACTS  ALLEGED  MAY  ALSO
 CONSTITUTE  A VIOLATION OF THE PENAL OR OTHER LAW, THE PROSECUTING OFFI-
 CIAL MAY CHARGE A PERSON PURSUANT TO THE PROVISIONS OF THIS SECTION  AND
 IN THE SAME ACCUSATORY INSTRUMENT WITH A VIOLATION OF SUCH OTHER LAW.
   5.  A  PERSON  (A)  WHO IS CONVICTED OF A SECOND OR SUBSEQUENT OFFENSE
 UNDER THIS SECTION WITHIN TEN YEARS OF THE PRIOR CONVICTION, OR (B)  WHO
 VIOLATES ANY PROVISION OF THIS SECTION CONCERNING TWO OR MORE CLAIMANTS,
 SHALL BE GUILTY OF A CLASS D FELONY.
   6.  IF  FOR  THE PURPOSE OF OBTAINING COMPENSATION PURSUANT TO SECTION
 FIFTEEN OF THE WORKERS' COMPENSATION LAW, OR FOR THE PURPOSE  OF  INFLU-
 ENCING ANY DETERMINATION REGARDING ANY SUCH PAYMENT, A CLAIMANT KNOWING-
 LY MAKES A FALSE STATEMENT OR REPRESENTATION AS TO A MATERIAL FACT, SUCH
 PERSON  SHALL  BE  DISQUALIFIED FROM RECEIVING ANY COMPENSATION DIRECTLY
 ATTRIBUTABLE TO SUCH FALSE STATEMENT OR REPRESENTATION. IN ADDITION,  AS
 DETERMINED  BY  THE  WORKERS'  COMPENSATION BOARD, THE CLAIMANT SHALL BE
 SUBJECT TO A DISQUALIFICATION OR AN ADDITIONAL PENALTY UP TO THE FOREGO-
 ING AMOUNT DIRECTLY ATTRIBUTABLE TO THE  FALSE  STATEMENT  OR  REPRESEN-
 TATION. ANY PENALTY MONIES SHALL BE PAID INTO THE STATE TREASURY.
   7. IF WITH THE KNOWLEDGE OF A CLAIMANT, ANOTHER PERSON KNOWINGLY MAKES
 A  FALSE  STATEMENT  OR  REPRESENTATION  AS  TO  A MATERIAL FACT FOR THE
 PURPOSE OF ASSISTING A CLAIMANT IN EITHER OBTAINING, OR INFLUENCING  ANY
 DETERMINATION  REGARDING COMPENSATION PURSUANT TO SECTION FIFTEEN OF THE
 WORKERS' COMPENSATION  LAW,  SUCH  CLAIMANT  MAY  BE  DISQUALIFIED  FROM
 RECEIVING ANY COMPENSATION DIRECTLY ATTRIBUTABLE TO SUCH FALSE STATEMENT
 OR  REPRESENTATION.  IN  ADDITION, AS DETERMINED BY THE WORKERS' COMPEN-
 SATION BOARD, THE CLAIMANT MAY BE SUBJECT TO A  DISQUALIFICATION  OR  AN
 ADDITIONAL  PENALTY  UP TO THE FOREGOING AMOUNT DIRECTLY ATTRIBUTABLE TO
 THE FALSE STATEMENT OR  REPRESENTATION.  ANY  PENALTY  MONIES  SHALL  BE
 DEPOSITED TO THE CREDIT OF THE GENERAL FUND OF THE STATE.
   8. IF THE WORKERS' COMPENSATION BOARD OR ANY COURT HAVING JURISDICTION
 OVER  PROCEEDINGS  IN  RESPECT  OF ANY CLAIM FOR COMPENSATION DETERMINES
 THAT THE PROCEEDINGS IN RESPECT OF SUCH CLAIM,  INCLUDING  ANY  APPEALS,
 HAVE BEEN INSTITUTED OR CONTINUED WITHOUT REASONABLE GROUND:
   (I)  THE  COST OF SUCH PROCEEDINGS SHALL BE ASSESSED AGAINST THE PARTY
 WHO HAS SO INSTITUTED OR CONTINUED THE PROCEEDINGS, WHICH SHALL BE PAYA-
 BLE TO THE BOARD FOR ADMINISTRATIVE EXPENSES  PURSUANT  TO  SECTION  ONE
 HUNDRED FIFTY-ONE OF THE WORKERS' COMPENSATION LAW;
   (II)  REASONABLE ATTORNEYS' FEES SHALL BE ASSESSED AGAINST AN ATTORNEY
 OR LICENSED REPRESENTATIVE WHO HAS INSTITUTED OR  CONTINUED  PROCEEDINGS
 WITHOUT  REASONABLE  GROUNDS,  WHICH  ASSESSMENT SHALL BE PAYABLE TO THE
 BOARD FOR  ADMINISTRATIVE  EXPENSES  PURSUANT  TO  SECTION  ONE  HUNDRED
 FIFTY-ONE  OF  THE  WORKERS' COMPENSATION LAW.   FEES AWARDED UNDER THIS
 PROVISION MAY NOT BE RECOUPED FROM THE PARTY; AND
   (III) SUCH ASSESSMENTS SHALL BE  IN  ADDITION  TO  ANY  OTHER  PENALTY
 PERMITTED UNDER THE WORKERS' COMPENSATION LAW.

 S. 3965                             3
 
   § 2. Section 55 of the volunteer firefighters' benefit law is REPEALED
 and a new section 55 is added to read as follows:
   §  55.  FRAUDULENT  PRACTICES.  1.  ANY PERSON WHO, KNOWINGLY AND WITH
 INTENT TO DEFRAUD PRESENTS, CAUSES TO BE  PRESENTED,  OR  PREPARES  WITH
 KNOWLEDGE  OR  BELIEF  THAT  IT WILL BE PRESENTED TO OR BY AN INSURER OR
 PURPORTED INSURER, OR ANY AGENT THEREOF, ANY WRITTEN STATEMENT  AS  PART
 OF,  OR  IN SUPPORT OF, AN APPLICATION FOR THE ISSUANCE OF OR THE RATING
 OF AN INSURANCE POLICY  FOR  COMPENSATION  INSURANCE,  OR  A  CLAIM  FOR
 PAYMENT  OR  OTHER BENEFIT PURSUANT TO A COMPENSATION POLICY WHICH HE OR
 SHE KNOWS TO: (I) CONTAIN A FALSE STATEMENT OR REPRESENTATION CONCERNING
 ANY FACT MATERIAL THERETO; OR (II)  OMITS  ANY  FACT  MATERIAL  THERETO,
 SHALL BE GUILTY OF A CLASS E FELONY. UPON CONVICTION, THE COURT IN ADDI-
 TION  TO  ANY  OTHER  AUTHORIZED  SENTENCE,  MAY ORDER FORFEITURE OF ALL
 RIGHTS TO COMPENSATION OR PAYMENTS OF ANY BENEFIT, AND MAY ALSO  REQUIRE
 RESTITUTION  OF  ANY  AMOUNT RECEIVED AS A RESULT OF A VIOLATION OF THIS
 SUBDIVISION.
   2. AN EMPLOYER OR CARRIER, OR ANY EMPLOYEE, AGENT, OR PERSON ACTING ON
 BEHALF OF AN EMPLOYER OR CARRIER, WHO KNOWINGLY MAKES A FALSE  STATEMENT
 OR  REPRESENTATION  AS  TO  A  MATERIAL FACT IN THE COURSE OF REPORTING,
 INVESTIGATION OF, OR ADJUSTING A CLAIM FOR ANY BENEFIT OR PAYMENT  UNDER
 THE  WORKERS'  COMPENSATION LAW FOR THE PURPOSE OF AVOIDING PROVISION OF
 SUCH PAYMENT OR BENEFIT SHALL BE GUILTY OF A CLASS E FELONY.
   3. A PERSON WHO KNOWINGLY MAKES A FALSE STATEMENT OR REPRESENTATION AS
 TO A MATERIAL FACT FOR THE PURPOSE OF OBTAINING, MAINTAINING OR RENEWING
 INSURANCE UNDER THIS CHAPTER, WHETHER FOR HIMSELF OR HERSELF OR FOR  ANY
 OTHER PERSON OR ENTITY OR FOR THE PURPOSE OF EVADING THE REQUIREMENTS OF
 SECTION  FIFTY  OF  THIS CHAPTER SHALL BE GUILTY OF A CLASS E FELONY. IN
 ADDITION TO ANY OTHER REMEDY, THE CARRIER PROVIDING INSURANCE  SHALL  BE
 ENTITLED  TO  RESTITUTION OF ANY AMOUNT OBTAINED OR WITHHELD AS A RESULT
 OF A VIOLATION OF THIS SUBDIVISION.
   4. CONSISTENT WITH THE PROVISIONS OF THE CRIMINAL  PROCEDURE  LAW,  IN
 ANY PROSECUTION ALLEGING A VIOLATION OF SUBDIVISION ONE, TWO OR THREE OF
 THIS  SECTION,  OR  SECTIONS FIFTY-TWO AND ONE HUNDRED THIRTY-ONE OF THE
 WORKERS' COMPENSATION LAW, IN WHICH THE ACT OR  ACTS  ALLEGED  MAY  ALSO
 CONSTITUTE  A VIOLATION OF THE PENAL OR OTHER LAW, THE PROSECUTING OFFI-
 CIAL MAY CHARGE A PERSON PURSUANT TO THE PROVISIONS OF THIS SECTION  AND
 IN THE SAME ACCUSATORY INSTRUMENT WITH A VIOLATION OF SUCH OTHER LAW.
   5.  A  PERSON  (A)  WHO IS CONVICTED OF A SECOND OR SUBSEQUENT OFFENSE
 UNDER THIS SECTION WITHIN TEN YEARS OF THE PRIOR CONVICTION, OR (B)  WHO
 VIOLATES ANY PROVISION OF THIS SECTION CONCERNING TWO OR MORE CLAIMANTS,
 SHALL BE GUILTY OF A CLASS D FELONY.
   6.  IF  FOR  THE PURPOSE OF OBTAINING COMPENSATION PURSUANT TO SECTION
 FIFTEEN OF THE WORKERS' COMPENSATION LAW, OR FOR THE PURPOSE  OF  INFLU-
 ENCING ANY DETERMINATION REGARDING ANY SUCH PAYMENT, A CLAIMANT KNOWING-
 LY MAKES A FALSE STATEMENT OR REPRESENTATION AS TO A MATERIAL FACT, SUCH
 PERSON  SHALL  BE  DISQUALIFIED FROM RECEIVING ANY COMPENSATION DIRECTLY
 ATTRIBUTABLE TO SUCH FALSE STATEMENT OR REPRESENTATION. IN ADDITION,  AS
 DETERMINED  BY  THE  WORKERS'  COMPENSATION BOARD, THE CLAIMANT SHALL BE
 SUBJECT TO A DISQUALIFICATION OR AN ADDITIONAL PENALTY UP TO THE FOREGO-
 ING AMOUNT DIRECTLY ATTRIBUTABLE TO THE  FALSE  STATEMENT  OR  REPRESEN-
 TATION. ANY PENALTY MONIES SHALL BE PAID INTO THE STATE TREASURY.
   7. IF WITH THE KNOWLEDGE OF A CLAIMANT, ANOTHER PERSON KNOWINGLY MAKES
 A  FALSE  STATEMENT  OR  REPRESENTATION  AS  TO  A MATERIAL FACT FOR THE
 PURPOSE OF ASSISTING A CLAIMANT IN EITHER OBTAINING, OR INFLUENCING  ANY
 DETERMINATION  REGARDING COMPENSATION PURSUANT TO SECTION FIFTEEN OF THE
 WORKERS' COMPENSATION  LAW,  SUCH  CLAIMANT  MAY  BE  DISQUALIFIED  FROM

 S. 3965                             4
 
 RECEIVING ANY COMPENSATION DIRECTLY ATTRIBUTABLE TO SUCH FALSE STATEMENT
 OR  REPRESENTATION.  IN  ADDITION, AS DETERMINED BY THE WORKERS' COMPEN-
 SATION BOARD, THE CLAIMANT MAY BE SUBJECT TO A  DISQUALIFICATION  OR  AN
 ADDITIONAL  PENALTY  UP TO THE FOREGOING AMOUNT DIRECTLY ATTRIBUTABLE TO
 THE FALSE STATEMENT OR  REPRESENTATION.  ANY  PENALTY  MONIES  SHALL  BE
 DEPOSITED TO THE CREDIT OF THE GENERAL FUND OF THE STATE.
   8. IF THE WORKERS' COMPENSATION BOARD OR ANY COURT HAVING JURISDICTION
 OVER  PROCEEDINGS  IN  RESPECT  OF ANY CLAIM FOR COMPENSATION DETERMINES
 THAT THE PROCEEDINGS IN RESPECT OF SUCH CLAIM,  INCLUDING  ANY  APPEALS,
 HAVE  BEEN  INSTITUTED  OR CONTINUED WITHOUT REASONABLE GROUND:  (I) THE
 COST OF SUCH PROCEEDINGS SHALL BE ASSESSED AGAINST THE PARTY WHO HAS  SO
 INSTITUTED  OR  CONTINUED THE PROCEEDINGS, WHICH SHALL BE PAYABLE TO THE
 BOARD FOR  ADMINISTRATIVE  EXPENSES  PURSUANT  TO  SECTION  ONE  HUNDRED
 FIFTY-ONE  OF  THE WORKERS' COMPENSATION LAW; (II) REASONABLE ATTORNEYS'
 FEES SHALL BE ASSESSED AGAINST AN ATTORNEY  OR  LICENSED  REPRESENTATIVE
 WHO  HAS INSTITUTED OR CONTINUED PROCEEDINGS WITHOUT REASONABLE GROUNDS,
 WHICH ASSESSMENT SHALL  BE  PAYABLE  TO  THE  BOARD  FOR  ADMINISTRATIVE
 EXPENSES  PURSUANT  TO  SECTION  ONE  HUNDRED  FIFTY-ONE OF THE WORKERS'
 COMPENSATION LAW.  FEES AWARDED UNDER THIS PROVISION MAY NOT BE RECOUPED
 FROM THE PARTY; AND (III) SUCH ASSESSMENTS SHALL BE IN ADDITION  TO  ANY
 OTHER PENALTY PERMITTED UNDER THE WORKERS' COMPENSATION LAW.
   § 3. This act shall take effect immediately.

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Senate Bill S3965

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

2017-S3965 (ACTIVE) - Details

2017-S3965 (ACTIVE) - Summary

2017-S3965 (ACTIVE) - Sponsor Memo

2017-S3965 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3965

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Local Government Committee

2017-S3965 (ACTIVE) - Details

2017-S3965 (ACTIVE) - Summary

2017-S3965 (ACTIVE) - Sponsor Memo

2017-S3965 (ACTIVE) - Bill Text download pdf

Comments