Bill Text: NY A00740 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the "improper payments reporting and reduction act" to require state agencies to annually report on their improper payments and to seek to reduce or eliminate such payments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-31 - held for consideration in governmental operations [A00740 Detail]
Download: New_York-2011-A00740-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
740
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. KELLNER -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law, in relation to enacting the "improper
payments reporting and reduction act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The executive law is amended by adding a new article 4-B to
2 read as follows:
3 ARTICLE 4-B
4 IMPROPER PAYMENTS REPORTING AND REDUCTION ACT
5 SECTION 56. SHORT TITLE.
6 56-A. DEFINITIONS.
7 57. IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES.
8 57-A. ESTIMATION OF IMPROPER PAYMENTS.
9 57-B. REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS.
10 58. IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP.
11 59. APPLICATION OF ARTICLE.
12 S 56. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
13 "IMPROPER PAYMENTS REPORTING AND REDUCTION ACT".
14 S 56-A. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
15 SHALL MEAN:
16 1. "AGENCY" MEANS ANY EXECUTIVE BRANCH AGENCY, DEPARTMENT, DIVISION,
17 OFFICE, BOARD, COMMISSION, PUBLIC AUTHORITY (OTHER THAN A MULTI-STATE OR
18 MULTI-NATIONAL AUTHORITY) OR PUBLIC BENEFIT CORPORATION, WITH AN ANNUAL
19 BUDGET OF AT LEAST TWENTY MILLION DOLLARS, THE HEAD OF WHICH IS
20 APPOINTED BY THE GOVERNOR.
21 2. "IMPROPER PAYMENT" MEANS ANY PAYMENT THAT SHOULD NOT HAVE BEEN MADE
22 OR THAT WAS MADE IN AN INCORRECT AMOUNT, INCLUDING OVERPAYMENTS AND
23 UNDERPAYMENTS, WHETHER UNDER STATUTORY, CONTRACTUAL, ADMINISTRATIVE OR
24 OTHER LEGALLY APPLICABLE REQUIREMENTS. SUCH TERM SHALL INCLUDE, BUT NOT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00681-01-1
A. 740 2
1 BE LIMITED TO, ANY PAYMENT TO AN INELIGIBLE RECIPIENT, ANY PAYMENT FOR
2 AN INELIGIBLE SERVICE, ANY DUPLICATE PAYMENT, PAYMENTS FOR SERVICES NOT
3 RECEIVED AND ANY PAYMENT THAT DOES NOT ACCOUNT FOR CREDIT FOR APPLICABLE
4 DISCOUNTS.
5 3. "PAYMENT" MEANS ANY PAYMENT, INCLUDING A COMMITMENT FOR FUTURE
6 PAYMENT, THAT IS MADE BY AN AGENCY, A STATE CONTRACTOR, OR A GOVERN-
7 MENTAL OR OTHER ORGANIZATION ADMINISTERING A STATE PROGRAM OR ACTIVITY,
8 AND WHICH DERIVED FROM STATE FUNDS OR OTHER STATE RESOURCES, OR THAT
9 WILL BE REIMBURSED FROM STATE FUNDS OR OTHER STATE RESOURCES.
10 S 57. IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES. THE HEAD
11 OF EACH AGENCY SHALL, IN ACCORDANCE WITH GUIDELINES PROMULGATED PURSUANT
12 TO SECTION FIFTY-EIGHT OF THIS ARTICLE, ANNUALLY REVIEW ALL PROGRAMS AND
13 ACTIVITIES THAT IT ADMINISTERS, AND IDENTIFY ALL SUCH PROGRAMS AND
14 ACTIVITIES THAT MAY BE SUSCEPTIBLE TO IMPROPER PAYMENTS.
15 S 57-A. ESTIMATION OF IMPROPER PAYMENTS. WITH RESPECT TO EACH PROGRAM
16 AND ACTIVITY IDENTIFIED IN SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD
17 OF THE AGENCY SHALL:
18 1. ESTIMATE THE ANNUAL AMOUNT OF IMPROPER PAYMENTS; AND
19 2. REPORT SUCH ESTIMATE TO THE PUBLIC, AND THE CHAIRS OF THE SENATE
20 FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE ON OR BEFORE
21 JANUARY FIRST OF THE SUCCEEDING CALENDAR YEAR, AND SHALL BE POSTED ON
22 THE AGENCY'S INTERNET WEBSITE AND ANY OTHER WEBSITE ESTABLISHED PURSUANT
23 TO SECTION FIFTY-EIGHT OF THIS ARTICLE.
24 ALL AGENCIES SHALL USE THE SAME METHOD OF REPORTING, AS PRESCRIBED BY
25 SECTION FIFTY-EIGHT OF THIS ARTICLE.
26 S 57-B. REPORTS ON ACTIONS TO REDUCE IMPROPER PAYMENTS. WITH RESPECT
27 TO ANY PROGRAM OR ACTIVITY OF AN AGENCY WITH IDENTIFIED IMPROPER
28 PAYMENTS PURSUANT TO SECTION FIFTY-SEVEN OF THIS ARTICLE, THE HEAD OF
29 THE AGENCY SHALL INCLUDE WITH THE ESTIMATE PURSUANT TO SECTION
30 FIFTY-SEVEN-A OF THIS ARTICLE A REPORT ON WHAT ACTIONS THE AGENCY IS
31 TAKING TO REDUCE THE IMPROPER PAYMENTS, INCLUDING:
32 1. A DISCUSSION OF THE CAUSES OF THE IMPROPER PAYMENTS IDENTIFIED,
33 ACTIONS TAKEN TO CORRECT THOSE CAUSES, AND RESULTS OF THE ACTIONS TAKEN
34 TO ADDRESS THOSE CAUSES;
35 2. A STATEMENT OF WHETHER THE AGENCY HAS THE INFORMATION SYSTEMS AND
36 OTHER INFRASTRUCTURE IT NEEDS IN ORDER TO REDUCE IMPROPER PAYMENTS TO
37 MINIMAL COST-EFFECTIVE LEVELS;
38 3. IF THE AGENCY DOES NOT HAVE SUCH SYSTEMS AND INFRASTRUCTURE, A
39 DESCRIPTION OF THE RESOURCES THE AGENCY HAS REQUESTED IN ITS BUDGET
40 SUBMISSION TO OBTAIN THE NECESSARY INFORMATION SYSTEMS AND INFRASTRUC-
41 TURE; AND
42 4. A DESCRIPTION OF THE STEPS THE AGENCY HAS TAKEN TO ENSURE THAT
43 AGENCY MANAGERS (INCLUDING THE AGENCY HEAD) ARE HELD ACCOUNTABLE FOR
44 REDUCING IMPROPER PAYMENTS.
45 S 58. IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP. 1. THERE SHALL BE
46 ESTABLISHED, WITHIN THE EXECUTIVE BRANCH, THE IMPROPER PAYMENT ESTIMATE
47 GUIDANCE GROUP. SUCH GROUP SHALL BE COMPOSED OF THE DIRECTOR OF THE
48 BUDGET WHO SHALL CHAIR THE GROUP, THE STATE INSPECTOR GENERAL, THE
49 INSPECTOR GENERAL OF THE METROPOLITAN TRANSPORTATION AUTHORITY AND THE
50 WELFARE INSPECTOR GENERAL.
51 2. WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS ARTI-
52 CLE, THE IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP SHALL MEET AND, IN
53 CONSULTATION WITH THE STATE COMPTROLLER, PRESCRIBE GUIDELINES FOR THE
54 IMPLEMENTATION OF THE PROVISIONS OF THIS ARTICLE. ALL AGENCIES SHALL
55 COOPERATE WITH SUCH GROUP TO ASSIST IT AS NECESSARY IN THE DEVELOPMENT
A. 740 3
1 AND PROMULGATION OF GUIDELINES. THE GUIDELINES SHALL INCLUDE, BUT NOT BE
2 LIMITED TO:
3 A. THE MANNER IN WHICH AGENCIES SHALL REVIEW PROGRAMS AND ACTIVITIES,
4 AND IDENTIFY THOSE WHICH ARE SUSCEPTIBLE TO IMPROPER PAYMENTS;
5 B. THE MANNER IN WHICH AGENCIES SHALL CALCULATE STATISTICALLY VALID
6 ESTIMATES OF THE ANNUAL AMOUNT OF IMPROPER PAYMENTS IN PROGRAMS AND
7 ACTIVITIES;
8 C. THE MANNER IN WHICH AGENCIES SHALL IMPLEMENT PLANS TO REDUCE
9 IMPROPER PAYMENTS; AND
10 D. THE MANNER IN WHICH AGENCIES SHALL REPORT ESTIMATES OF THE ANNUAL
11 AMOUNT OF IMPROPER PAYMENTS IN PROGRAMS AND ACTIVITIES, AND PROGRESS IN
12 REDUCING THEM.
13 3. THE IMPROPER PAYMENT ESTIMATE GUIDANCE GROUP SHALL THEREAFTER MEET
14 AT ANY TIME AT THE CALL OF EITHER THE DIRECTOR OF THE BUDGET OR THE
15 STATE COMPTROLLER; PROVIDED THAT SUCH GROUP SHALL MEET NO FEWER THAN
16 ONCE EVERY FOUR YEARS TO REVIEW THE GUIDELINES.
17 S 59. APPLICATION OF ARTICLE. THE PROVISIONS OF THIS ARTICLE SHALL:
18 1. APPLY TO THE ADMINISTRATION OF PROGRAMS AND IMPROPER PAYMENTS MADE
19 IN STATE FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO THOUSAND
20 TWELVE; AND
21 2. REQUIRE THE INCLUSION OF THE ESTIMATES, REPORTED PURSUANT TO
22 SECTION FIFTY-SEVEN-A OF THIS ARTICLE, IN THE AGENCY BUDGET SUBMISSIONS
23 FOR STATE FISCAL YEARS COMMENCING ON OR AFTER APRIL FIRST, TWO THOUSAND
24 THIRTEEN.
25 S 2. This act shall take effect immediately.
