A05056 Summary:
BILL NO | A05056 |
  | |
SAME AS | SAME AS S03757 |
  | |
SPONSOR | Hevesi |
  | |
COSPNSR | Jaffee, McDonald, Titone, Otis, Gottfried, Ortiz, Montesano, Friend, Garbarino, Raia, Galef, Abinanti |
  | |
MLTSPNSR | Barclay, Braunstein, Brennan, Cook, Duprey, Englebright, Magee, Markey, McLaughlin, Mosley, Rivera, Simon, Walter |
  | |
Add S8-c, St Fin L; amd S2803, Pub Auth L | |
  | |
Authorizes an enterprise approach to the detection and prevention of fraud, waste and abuse in state government and the detection and prevention of improper payments of public moneys. |
A05056 Actions:
BILL NO | A05056 | |||||||||||||||||||||||||||||||||||||||||||||||||
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02/10/2015 | referred to governmental operations | |||||||||||||||||||||||||||||||||||||||||||||||||
04/28/2015 | reported referred to codes | |||||||||||||||||||||||||||||||||||||||||||||||||
05/04/2015 | reported referred to ways and means | |||||||||||||||||||||||||||||||||||||||||||||||||
05/27/2015 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
05/29/2015 | advanced to third reading cal.487 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2015 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2015 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/01/2015 | REFERRED TO FINANCE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2015 | SUBSTITUTED FOR S3757 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2015 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2015 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
12/09/2015 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
12/21/2015 | signed chap.566 | |||||||||||||||||||||||||||||||||||||||||||||||||
12/21/2015 | approval memo.23 |
A05056 Committee Votes:
Go to topA05056 Floor Votes:
Yes
Abbate
Yes
Corwin
Yes
Goodell
Yes
Lupardo
Yes
Paulin
Yes
Silver
Yes
Abinanti
Yes
Crespo
ER
Gottfried
Yes
Lupinacci
Yes
Peoples-Stokes
Yes
Simanowitz
Yes
Arroyo
Yes
Crouch
Yes
Graf
Yes
Magee
Yes
Perry
Yes
Simon
Yes
Aubry
Yes
Curran
Yes
Gunther
Yes
Magnarelli
Yes
Persaud
Yes
Simotas
Yes
Barclay
Yes
Cusick
Yes
Hawley
Yes
Malliotakis
Yes
Pichardo
Yes
Skartados
Yes
Barrett
Yes
Cymbrowitz
Yes
Hevesi
ER
Markey
Yes
Pretlow
Yes
Skoufis
Yes
Barron
Yes
Davila
Yes
Hikind
Yes
Mayer
Yes
Quart
Yes
Solages
Yes
Benedetto
Yes
DenDekker
Yes
Hooper
Yes
McDonald
Yes
Ra
Yes
Stec
Yes
Bichotte
Yes
Dilan
Yes
Jaffee
Yes
McDonough
Yes
Raia
Yes
Steck
Yes
Blake
Yes
Dinowitz
Yes
Jean-Pierre
Yes
McKevitt
Yes
Ramos
Yes
Stirpe
Yes
Blankenbush
Yes
DiPietro
Yes
Johns
Yes
McLaughlin
Yes
Richardson
Yes
Tedisco
Yes
Borelli
Yes
Duprey
Yes
Joyner
Yes
Miller
Yes
Rivera
Yes
Tenney
Yes
Brabenec
Yes
Englebright
Yes
Kaminsky
Yes
Montesano
Yes
Roberts
Yes
Thiele
Yes
Braunstein
Yes
Fahy
Yes
Katz
Yes
Morelle
Yes
Robinson
ER
Titone
Yes
Brennan
Yes
Farrell
Yes
Kavanagh
Yes
Mosley
Yes
Rodriguez
Yes
Titus
Yes
Brindisi
Yes
Finch
Yes
Kearns
Yes
Moya
Yes
Rosenthal
Yes
Walker
Yes
Bronson
Yes
Fitzpatrick
Yes
Kim
Yes
Murray
Yes
Rozic
Yes
Walter
Yes
Brook-Krasny
Yes
Friend
Yes
Kolb
Yes
Nojay
Yes
Russell
Yes
Weinstein
Yes
Buchwald
Yes
Galef
Yes
Lalor
Yes
Nolan
Yes
Ryan
Yes
Weprin
Yes
Butler
Yes
Gantt
ER
Lavine
Yes
Oaks
Yes
Saladino
Yes
Woerner
Yes
Cahill
Yes
Garbarino
Yes
Lawrence
Yes
O'Donnell
Yes
Santabarbara
Yes
Wozniak
Yes
Ceretto
Yes
Giglio
Yes
Lentol
Yes
Ortiz
Yes
Schimel
Yes
Wright
ER
Clark
Yes
Gjonaj
Yes
Lifton
Yes
Otis
Yes
Schimminger
Yes
Zebrowski
Yes
Colton
Yes
Glick
Yes
Linares
Yes
Palmesano
Yes
Seawright
Yes
Mr. Speaker
Yes
Cook
Yes
Goldfeder
Yes
Lopez
Yes
Palumbo
Yes
Sepulveda
‡ Indicates voting via videoconference
A05056 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 5056 2015-2016 Regular Sessions IN ASSEMBLY February 10, 2015 ___________ Introduced by M. of A. HEVESI -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law and the public authorities law, in relation to authorizing an enterprise approach to the detection and prevention of fraud, waste and abuse in state government and the detection and prevention of improper payments of public moneys The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. (a) Fraud, waste, abuse and improper 2 payments are pervasive, and often on the rise, in many government 3 programs. 4 (1) According to the Centers for Medicare and Medicaid Services (CMS), 5 the 2011 Medicaid improper payment rate was 8.1%; 6 (2) According to the Government Accountability Office (GAO), over $70 7 billion in improper payments are made each year in Medicaid and Medi- 8 care; 9 (3) According to the U.S. Department of Labor, the 2011 unemployment 10 insurance payment error rate was 11.2%, resulting in $5.7 billion of 11 improper payments; 12 (4) According to the Internal Revenue Service (IRS), the tax gap for 13 federal income tax is at least $270 billion per year; 14 (5) In the 2012 filing season, IRS estimated losses due to identity 15 theft alone at $5 billion, and detected an additional $12 billion. 16 (b) Entities involved in perpetrating fraud and abuse of government 17 programs are becoming increasingly more sophisticated in their schemes 18 and tactics, and often work in organized and collusive fraud rings or 19 networks to attack any and all government programs. The fraud schemes 20 can be massive, as illustrated in the following recent cases: 21 (1) October 2010: 73 defendants, $163 million in false 22 Medicare/Medicaid billings, Armenian-American fraud ring; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04637-02-5A. 5056 2 1 (2) February 2011: 20 defendants, $200 million in false 2 Medicare/Medicaid billings, Florida; 3 (3) February 2011: 111 defendants, $225 million in false 4 Medicare/Medicaid billings, 7 cities; 5 (4) April 2011: 3 defendants, $3.9 million in food stamp 47 fraud, 6 Texas; 7 (5) September 2011: 91 defendants, $295 million in false 8 Medicare/Medicaid billings, 8 cities; 9 (6) October 2012: 91 defendants, $430 million in false 10 Medicare/Medicaid billings, 7 cities. 11 (c) Fraud, waste, abuse and improper payments can adversely affect the 12 state budget, impede economic development, and deplete benefits intended 13 for citizens in need. 14 (d) The state constitution requires the state comptroller to, among 15 other things, audit all vouchers before payment and all official 16 accounts and, in such respect, the legislature shall define the powers 17 and duties of the office and may assign to the state comptroller admin- 18 istrative duties incidental to the performance of these functions and 19 the state comptroller has the constitutional authority to supervise the 20 accounts of public corporations commonly referred to as public authori- 21 ties. Statutorily, the state comptroller has the duty to superintend the 22 fiscal concerns of the state. 23 (d-1) In the performance of the state comptroller's constitutional and 24 statutory functions, duties and responsibilities, the state's citizens 25 expect state agencies to utilize modern techniques and technology to 26 prevent tax dollars from being spent on fraudulent or improper payments. 27 (e) Identifying possible waste, fraud, abuse and the improper payments 28 of public moneys at the earliest point possible will reduce losses and 29 possibly prevent erroneous payments from being made, thus providing 30 potentially millions of dollars in cost-savings to the state. 31 (f) State-supported citizen and employee benefits programs, workers' 32 compensation, Medicaid, unemployment insurance, tax compliance, and 33 discretionary grants to community-based programs are areas where it is 34 important for the state to identify and prevent waste, fraud, abuse and 35 improper payments. 36 (g) Modern technologies and best practices exist, and have been 37 deployed successfully in the commercial sector for many years, that can 38 greatly reduce the losses associated with fraud, waste, abuse and 39 improper payments. 40 (h) An enterprise approach to reducing waste, fraud, abuse, and 41 improper payments coordinates efforts with more than one agency and 42 incorporates data from multiple data sources within an agency and 43 between two or more agencies. This type of approach allows state govern- 44 ment to utilize its rich data assets across agencies and programs to 45 better detect improper behaviors, and to leverage economies of scale to 46 reduce overall costs for fraud detection and prevention across all state 47 government programs and functions. 48 § 2. The state finance law is amended by adding a new section 8-c to 49 read as follows: 50 § 8-c. Enterprise fraud prevention and detection system. 1. In furth- 51 erance of the comptroller's constitutional and statutory functions, 52 duties and responsibilities, the comptroller may, within his or her 53 discretion, establish, implement and update as necessary an electronic 54 data analytical enterprise fraud prevention and detection system for the 55 prevention of fraud, waste and abuse in state government and the 56 detection and prevention of improper payments of public moneys.A. 5056 3 1 2. State agencies shall fully support and cooperate with the state 2 comptroller by providing the state comptroller with access to data 3 requested by the state comptroller, in accordance with applicable state 4 and federal law, to allow such data to be integrated into such analytic 5 efforts as the state comptroller may deem necessary. For this purpose, 6 the term "state agency" shall mean any of the following performing a 7 governmental or proprietary function for the executive department of the 8 state: a state department, the state university of New York, the city 9 university of New York, and any board, bureau, division, commission, 10 committee, council, office or similar governmental entity. 11 3. In support of the enterprise fraud prevention and detection system, 12 the state comptroller shall establish protocols: 13 (a) for data sharing, secure file transfers and/or other methods to 14 obtain real-time, regular and/or periodic data from state agencies, 15 provided, however, that access to such data by the state comptroller 16 shall not waive any privilege or right of confidentiality; 17 (b) to ensure the safety, security, integrity and privacy of all data 18 shared with his or her office in accordance with the system; and 19 (c) for the authorized retention and deletion of data obtained from 20 state agencies. 21 4. In connection with such system, the state comptroller, in his or 22 her discretion, may: 23 (a) develop a long-range plan for preventing or detecting improper 24 payments of public moneys, and the prevention and detection of waste, 25 fraud and abuse in government operations; 26 (b) acquire technology including, but not limited to, software that 27 enhances the following capabilities: (i) automated detection and alert- 28 ing; (ii) continuous monitoring of program transactions and activity, to 29 detect fraud and improper payments both prospectively (before the 30 payment is made) and retrospectively (after payments are made); (iii) 31 detection of non-transactional fraud such as program eligibility issues 32 and identify theft; and 33 (c) evaluate potential savings resulting from such efforts. 34 5. The state comptroller shall report annually to the legislature no 35 later than the first day of September, two thousand sixteen and annually 36 thereafter on the progress, status and results of the system created 37 pursuant to this section and subdivision two of section twenty-eight 38 hundred three of the public authorities law. 39 § 3. Section 2803 of the public authorities law, as added by chapter 40 327 of the laws of 1958 and as renumbered by chapter 838 of the laws of 41 1983, is amended to read as follows: 42 § 2803. Examination of the books and accounts of public authorities by 43 the state comptroller. 1. Notwithstanding any other provision of this 44 chapter, the state comptroller shall, from time to time but not less 45 than once in every five years, examine the books and accounts of every 46 authority or commission heretofore or hereafter continued or created by 47 this chapter, including its receipts, disbursements, contracts, leases, 48 sinking funds, investments and any other matters relating to its finan- 49 cial standing. In lieu of such an examination, the state comptroller is 50 hereby authorized to accept from every such authority or commission an 51 external examination of its books and accounts made at the request of 52 such authority or commission. 53 2. (a) The state comptroller may, pursuant to subdivisions two and 54 three of section eight-c of the state finance law, in his or her sole 55 discretion, apply to state authorities the electronic data analytical 56 enterprise fraud prevention and detection system as provided for in suchA. 5056 4 1 section eight-c of the state finance law. Public authorities shall fully 2 support and cooperate with the state comptroller by providing the state 3 comptroller with access to data of the authority requested by the state 4 comptroller, in accordance with state and federal law, to allow such 5 data to be integrated into such analytic efforts as the state comp- 6 troller may deem necessary. 7 (b) For purposes of this subdivision, the term "state authority" shall 8 have the same meaning as in subdivision one of section two of this chap- 9 ter, provided that for purposes of this subdivision, the term "public 10 benefit corporation" as used in such subdivision one of section two of 11 this chapter shall have the same meaning as in subdivision four of 12 section sixty-six of the general construction law. 13 § 4. Nothing in this act shall be construed to in any way alter or 14 diminish any statutory or constitutional power, duty or authority of the 15 state comptroller. 16 § 5. This act shall take effect on the one hundred twentieth day after 17 it shall have become a law; provided, however, that effective immediate- 18 ly, the addition, amendment and/or repeal of any rule or regulation 19 necessary for the implementation of this act on its effective date are 20 authorized to be made and completed on or before such effective date.