Bars actions where the action is based upon allegations or transactions that are the subject of an audit, examination, investigation, or administrative inquiry conducted by the state, a local government, or any executive or administrative agency thereof; or were previously the subject of an audit, examination, investigation, or administrative inquiry conducted by the state, a local government, or any executive or administrative agency thereof that resulted in a final determination, resolution, or payment; requires disclosure of relator identity and basis of knowledge.
STATE OF NEW YORK
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9892
IN SENATE
April 13, 2026
___________
Introduced by Sen. COONEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to limitations on
false claims actions involving resolved matters and disclosure
requirements for persons initiating such actions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 9 of section 190 of the state
2 finance law, as amended by chapter 379 of the laws of 2010, is amended
3 to read as follows:
4 (a) The court shall dismiss a qui tam action under this article if:
5 (i) it is based on allegations or transactions which are the subject
6 of a pending civil action or an administrative action in which the state
7 or a local government is already a party;
8 (ii) the state or local government has reached a binding settlement or
9 other agreement with the person who violated section one hundred eight-
10 y-nine of this article resolving the matter [and such agreement has been
11 approved in writing by the attorney general, or by the applicable local
12 government attorney]; [or]
13 (iii) against a member of the legislature, a member of the judiciary,
14 or a senior executive branch official if the action is based on evidence
15 or information known to the state when the action was brought[.]; or
16 (iv) the action is based upon allegations or transactions that:
17 (A) are the subject of an audit, examination, investigation, or admin-
18 istrative inquiry conducted by the state, a local government, or any
19 executive or administrative agency thereof; or
20 (B) were previously the subject of an audit, examination, investi-
21 gation, or administrative inquiry conducted by the state, a local
22 government, or any executive or administrative agency thereof that
23 resulted in a final determination, resolution, or payment.
24 § 2. Section 190 of the state finance law is amended by adding a new
25 subdivision 2-a to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15547-01-6
S. 9892 2
1 2-a. Disclosure of relator identity and basis of knowledge. In any
2 action brought pursuant to this article, the person initiating the
3 action shall, at the time of filing, plead with particularity:
4 (a) the identity of the natural person or persons bringing the allega-
5 tions;
6 (b) the nature of such person's relationship, if any, to the defend-
7 ant; and
8 (c) the manner in which such person obtained the material information
9 forming the basis of the allegations.
10 Where the action is brought by an entity, the complaint shall disclose
11 the natural person or persons who directly or indirectly control or
12 benefit from such entity. Failure to satisfy the requirements of this
13 subdivision shall constitute grounds for dismissal.
14 § 3. This act shall take effect immediately and shall apply to actions
15 commenced or maintained on or after such effective date.
