Enacts the "improper payments reporting and reduction act" to require state agencies to annually report on its improper payments and to seek a reduction thereof

7 Co-sponsors

• David Carlucci
• Betty Little
• George D. Maziarz
• José Peralta
• Diane J. Savino
• Andrea Stewart-Cousins
• David J. Valesky

BILL NUMBER:S3578A

Title of bill

An act to amend the executive law, in relation to enacting the "improper payments reporting and reduction act"; and providing for the repeal of such provisions upon expiration thereof

Purpose

The purpose of the Improper Payment Reporting & Reduction Act ("IPRRA") is to reduce the amount of improper payments made by state agencies, and accordingly save taxpayer funds while not reducing services. The act will create budget transparency as it relates to improper payments, and hold government agencies accountable for improper payments.

Specifically, IPRRA will (1) require state agencies on a two year rotating basis to identify on an annualized basis those programs that are at risk of a significant amount of improper payments; (2) require state agencies, on an annualized basis, to estimate the amount of improper payments; and; and (3) require state agencies to report on what actions and protocols are being implemented to reduce the amount of such improper payments.

Summary of provisions

Section 1: Adds a new article 4-B to the Executive Law to establish the Improper Payments Reporting and Reduction Act. Such act shall require that:

- state agencies that have a budget of $20 million or more each year must every two years, on an annualized basis (1) identify programs that are at risk of a significant amount of improper payments, (2) estimate the amount of improper payments, and (3) report on what actions and protocols are being implemented to reduce the amount of such improper payments. The first sets of reports will be due in the annual budget submissions for agencies for fiscal commencing after April 1, years 2015.

- creates an Improper Payment Estimate Guidance Group to consult with the state comptroller and prescribe guidance to agencies on how they can identify, estimate and report on improper payments. The group shall be chaired by the director of the division of the budget and include the state inspector general,' the welfare inspector general, the metropolitan transportation authority inspector general, and two other member appointed by the Governor. Agencies are required to cooperate with the improper payment guidance group as needed for the development of the guidance.

- requires the Improper Payment Estimate Guidance Group to meet within 90 days after the enactment of this bill into law. Further it requires the group to additionally meet at any time at the suggestion of either the director of division of the budget or the state comptroller; provided that the group must meet no fewer than every other year to review the improper payment guidance.

Section 2: This act shall take effect 180 days after it shall have become law, and shall expire four years after such effective date so

that this program may be evaluated by the Governor and State Legislature.

Legislative history

2010 - S. 8122, Passed the Senate 2011 - 2012 -S.1677-A / A. 740-A, Passed the Senate in 2011 & 2012

Fiscal implications

This bill should help to save the State money by reducing the number and amounts of improper payments.

Effective date

This bill would be effective 180 days after it shall have become law.