Senate Bill S10681

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10681
 
                             I N  S E N A T E
 
                              August 14, 2026
                                ___________
 
 Introduced  by  Sen.  MURRAY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public health law and  the  state  finance  law,  in
   relation to establishing a Medicaid fraud tip board and Medicaid fraud
   tip reward fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public health law is amended by adding a new section 37
 to read as follows:
   § 37. MEDICAID FRAUD TIP BOARD. 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 PURSU-
 ANT TO THIS CHAPTER, THE SOCIAL SERVICES LAW AND FEDERAL LAW.
   2.  THERE  IS  HEREBY ESTABLISHED THE MEDICAID FRAUD TIP BOARD FOR THE
 PURPOSE OF DEVELOPING AND  ADMINISTERING  A  SYSTEM  TO  OFFER  MONETARY
 REWARDS  TO INDIVIDUALS WHOSE DOCUMENTED TIPS HAVE RESULTED IN THE CLOS-
 ING OF A MEDICAID FRAUD CASE AND A GUILTY PLEA  OR  CRIMINAL  CONVICTION
 AGAINST A PERSON OR ENTITY THAT IS ENGAGING IN, OR HAS ENGAGED IN, MEDI-
 CAID FRAUD.
   3.  THE  BOARD  SHALL  CONSIST  OF  SEVEN  MEMBERS  TO BE APPOINTED AS
 FOLLOWS:  TWO APPOINTED BY THE GOVERNOR; ONE APPOINTED BY THE LIEUTENANT
 GOVERNOR; ONE APPOINTED BY  THE  MAJORITY  LEADER  OF  THE  SENATE;  ONE
 APPOINTED  BY THE SPEAKER OF THE ASSEMBLY; ONE APPOINTED BY THE MINORITY
 LEADER OF THE SENATE; AND ONE APPOINTED BY THE MINORITY  LEADER  OF  THE
 ASSEMBLY.
   4.  MEETINGS  OF THE BOARD SHALL BE HELD AT LEAST TWICE A YEAR BUT MAY
 BE HELD MORE FREQUENTLY AS DEEMED NECESSARY. AT EACH MEETING, THE  BOARD
 SHALL  REVIEW PENDING REWARD APPLICATIONS AND DETERMINE REWARD ELIGIBIL-
 ITY AND AMOUNT, IF APPLICABLE.
   5. THE BOARD SHALL:
   (A) DEVELOP AND ADOPT GUIDELINES USED TO DETERMINE WHETHER AN INDIVID-
 UAL IS ELIGIBLE TO RECEIVE A REWARD;
   (B) ESTABLISH MINIMUM AND MAXIMUM REWARD PAYMENT AMOUNTS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16284-01-6
 S. 10681                            2
 
   (C) ESTABLISH PROCEDURES TO PRESERVE THE ANONYMITY OF  ANY  INDIVIDUAL
 ALLEGING MEDICAID FRAUD, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE
 PROTECTION  OF ANY PERSONALLY IDENTIFYING INFORMATION AND BANKING INFOR-
 MATION.
   6.  REWARDS  APPROVED  BY  THE BOARD PURSUANT TO THIS SECTION SHALL BE
 PAID FROM THE MEDICAID FRAUD TIP  REWARD  FUND  ESTABLISHED  IN  SECTION
 NINETY-SEVEN-BBBBB OF THE STATE FINANCE LAW.
   § 2. The state finance law is amended by adding a new section 97-bbbbb
 to read as follows:
   §  97-BBBBB. MEDICAID FRAUD TIP REWARD FUND. 1. THERE IS HEREBY ESTAB-
 LISHED, IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER  OF
 TAXATION AND FINANCE A FUND TO BE KNOWN AS THE MEDICAID FRAUD TIP REWARD
 FUND.
   2.  SUCH FUND SHALL CONSIST OF NOT LESS THAN ONE PERCENT NOR MORE THAN
 TWO PERCENT OF ALL MONEYS RECOVERED BY THE STATE THROUGH MEDICAID  FRAUD
 ENFORCEMENT, INCLUDING BUT NOT LIMITED TO, THROUGH CIVIL FORFEITURE OR A
 COURT'S AWARD OF RESTITUTION, AND ALL OTHER MONEYS APPROPRIATED, CREDIT-
 ED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3. MONEYS OF THE MEDICAID FRAUD TIP REWARD FUND SHALL BE SOLELY AVAIL-
 ABLE FOR THE PAYMENT OF ELIGIBLE INDIVIDUALS IN ACCORDANCE WITH DETERMI-
 NATIONS  MADE BY THE MEDICAID FRAUD TIP REVIEW BOARD PURSUANT TO SECTION
 THIRTY-SEVEN OF THE PUBLIC HEALTH LAW.
   4. MONEYS IN THE MEDICAID FRAUD TIP REWARD FUND SHALL BE KEPT SEPARATE
 FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
 THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.