S T A T E O F N E W Y O R K
________________________________________________________________________
10461
I N A S S E M B L Y
May 18, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dinowitz) --
read once and referred to the Committee on Judiciary
AN ACT to amend the state finance law, in relation to increasing the
amount of the award to a person who initiates a qui tam action where
such action includes disclosure of information related to the use of
government funds during a state of emergency
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs (a) and (b) of subdivision 6 of section 190 of
the state finance law, as amended by section 9-b of part A of chapter 56
of the laws of 2013, are amended to read as follows:
(a) If the attorney general elects to convert the qui tam civil action
into an attorney general enforcement action, or to permit a local
government to convert the action into a civil enforcement action by such
local government, or if the attorney general or a local government
elects to intervene in the qui tam civil action, then the person or
persons who initiated the qui tam civil action collectively shall be
entitled to receive between fifteen and twenty-five percent of the
proceeds recovered in the action or in settlement of the action. The
court shall determine the percentage of the proceeds to which a person
commencing a qui tam civil action is entitled, by considering the extent
to which the plaintiff substantially contributed to the prosecution of
the action. Where the court finds that the action was based primarily on
disclosures of specific information (other than information provided by
the person bringing the action) relating to allegations or transactions
in a criminal, civil or administrative hearing, in a legislative or
administrative report, hearing, audit or investigation, or from the news
media, the court may award such sums as it considers appropriate, but in
no case more than ten percent of the proceeds, taking into account the
significance of the information and the role of the person or persons
bringing the action in advancing the case to litigation. WHERE THE COURT
FINDS THAT THE ACTION WAS BASED ON DISCLOSURE OF SPECIFIC INFORMATION
RELATED TO THE USE OF GOVERNMENT FUNDS DURING A DECLARATION OF A STATE
OF EMERGENCY, THE COURT SHALL INCREASE THE PERCENTAGE OF THE PROCEEDS TO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16306-04-0
A. 10461 2
WHICH THE PERSON COMMENCING SUCH QUI TAM CIVIL ACTION IS ENTITLED BY UP
TO FIVE PERCENT MORE THAN THE MAXIMUM PERCENTAGE ALLOWED PURSUANT TO
THIS PARAGRAPH. Any such person shall also receive an amount for reason-
able expenses that the court finds to have been necessarily incurred,
reasonable attorneys' fees, and costs pursuant to article eighty-one of
the civil practice law and rules. All such expenses, fees, and costs
shall be awarded against the defendant.
(b) If the attorney general or a local government does not elect to
intervene or convert the action, and the action is successful, then the
person or persons who initiated the qui tam action which obtains
proceeds shall be entitled to receive between twenty-five and thirty
percent of the proceeds recovered in the action or settlement of the
action. The court shall determine the percentage of the proceeds to
which a person commencing a qui tam civil action is entitled, by consid-
ering the extent to which the plaintiff substantially contributed to the
prosecution of the action. WHERE THE COURT FINDS THAT THE ACTION WAS
BASED ON DISCLOSURE OF SPECIFIC INFORMATION RELATED TO THE USE OF
GOVERNMENT FUNDS DURING A DECLARATION OF A STATE OF EMERGENCY, THE COURT
SHALL INCREASE THE PERCENTAGE OF THE PROCEEDS TO WHICH THE PERSON
COMMENCING SUCH QUI TAM CIVIL ACTION IS ENTITLED BY UP TO TEN PERCENT
MORE THAN THE MAXIMUM PERCENTAGE ALLOWED PURSUANT TO THIS PARAGRAPH.
Such person shall also receive an amount for reasonable expenses that
the court finds to have been necessarily incurred, reasonable attorneys'
fees, and costs pursuant to article eighty-one of the civil practice law
and rules. All such expenses, fees, and costs shall be awarded against
the defendant.
§ 2. This act shall take effect immediately.