S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    514
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sens.  YOUNG, CARLUCCI, FUNKE, GALLIVAN, LARKIN, O'MARA,
   ORTT, VALESKY -- read twice and ordered printed, and when  printed  to
   be committed to the Committee on Social Services
 
 AN  ACT to amend the social services law, in relation to creating incen-
   tives for counties to investigate and prosecute medicaid fraud
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The social services law is amended by adding a new article
 5-A to read as follows:
                                 ARTICLE 5-A
                       MEDICAID FRAUD REIMBURSEMENT
 SECTION 370-BB. DISPOSITION OF MONEYS RECEIVED  AS  THE  RESULT  OF  THE
                   PROSECUTION OF MEDICAID FRAUD.
   §  370-BB.  DISPOSITION OF MONEYS RECEIVED AS THE RESULT OF THE PROSE-
 CUTION OF MEDICAID FRAUD. 1. FOR THE PURPOSES OF THIS SECTION, "MEDICAID
 FRAUD" SHALL MEAN THE KNOWING COMMISSION OF ANY  CRIME  WITH  INTENT  TO
 ILLEGALLY RECEIVE BENEFITS, OR REIMBURSEMENT FROM THE MEDICAL ASSISTANCE
 FOR  NEEDY PERSONS PROGRAM ESTABLISHED AND ADMINISTERED PURSUANT TO THIS
 CHAPTER, THE PUBLIC HEALTH LAW AND FEDERAL LAW.
   2. SHOULD ANY COUNTY OR THE CITY OF NEW  YORK  SUCCESSFULLY  PROSECUTE
 ANY  CASE  FOR  MEDICAID  FRAUD  AND A COURT AWARDS RESTITUTION OR CIVIL
 FORFEITURE, THE FOLLOWING  PORTION  OF  THE  NON-FEDERAL  SHARE  OF  THE
 PROCEEDS  OF  SUCH RESTITUTION OR CIVIL FORFEITURE SHALL BE ALLOCATED AS
 FOLLOWS:
   (I) THE COUNTY OR THE CITY OF  NEW  YORK  SHALL  RECEIVE  ONE  HUNDRED
 PERCENT OF THE LOCAL SHARE OF SUCH FUNDS, IN EFFECT IMMEDIATELY PRIOR TO
 SUCH  DATE  AS CERTIFIED BY THE DIVISION OF BUDGET OR TEN PERCENT OF THE
 TOTAL RECOVERY WHICHEVER NUMBER IS GREATER; AND
   (II) THE REMAINDER THEREOF SHALL BE DEPOSITED INTO THE GENERAL FUND OF
 THE STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD05888-01-7

 S. 514                              2
 
   3. NOTHING IN THIS ARTICLE SHALL IMPAIR ANY COUNTY OR THE CITY OF  NEW
 YORK'S ABILITY TO SEEK DAMAGES UNDER SECTION ONE HUNDRED FORTY-FIVE-B OF
 THIS CHAPTER.
   §  2.  Paragraph  (a)  of subdivision 2 of section 145-b of the social
 services law, as amended by chapter 109 of the laws of 2007, is  amended
 to read as follows:
   (a)  For  civil damages collected by a local social services district,
 relating to the medical assistance program, pursuant to  a  judgment  OR
 SETTLEMENT  under  this  subdivision,  such amounts shall be apportioned
 between the local social  services  district  and  the  state.  [If  the
 violation  occurred:  (i) prior to January first, two thousand six, the]
 THE amount apportioned to the local social services  district  shall  be
 ONE  HUNDRED  PERCENT  OF the local share [percentage] OF SUCH FUNDS, in
 effect immediately prior to such date as certified by  the  division  of
 budget[,  or  (ii)  after  January  first,  two thousand six, the amount
 apportioned to the local social services district shall be  based  on  a
 reimbursement  schedule,  created  by  the  office of Medicaid inspector
 general, in effect at the time the violation occurred; provided that, if
 there is no schedule in effect at the time the violation  occurred,  the
 schedule to be used shall be the first schedule adopted pursuant to this
 subdivision.  Such  schedule  shall provide for reimbursement to a local
 social services district in an amount between ten and fifteen percent of
 the gross amount collected. Such schedule shall be set on  a  county  by
 county  basis  and  shall be periodically reviewed and updated as neces-
 sary; provided, however, that any such updated  schedule  shall  not  be
 less  than  ten  percent  nor  greater than fifteen percent of the gross
 amount collected] OR TEN PERCENT OF THE TOTAL RECOVERY WHICHEVER  NUMBER
 IS GREATER; and
   § 3. This act shall take effect immediately.