Provides that moneys received by the state from the settlement or compromise of, or judgment on a claim shall be paid to the state comptroller for deposit into the general fund

BILL NUMBER:S3832

Title of bill

An act to amend the state finance law, in relation to the disposition and deposit of moneys received by the state from the settlement or compromise of a claim or from a judgment arising from a claim

Purpose

Provides that moneys received by the State from the settlement or compromise of a claim, or by judgment, shall be paid to the state comptroller for deposit into the general fund.

Summary of provisions

Section 1 of the bill amends the state finance law by adding a new section 10-a.

Justification

This bill would require that all moneys received from a settlement, judgment or compromise as a result of a claim or cause brought by the State of New York or any State agency shall be transferred and paid to the State Comptroller and the Comptroller shall deposit such funds into the State General Fund.

The Governor and the Attorney General recently announced an agreement to split the first installment of 5163 million of New York State's $613 million settlement over mortgage bond sales that contributed to the 2008 financial crisis by JP Morgan Chase. However, any such recovery should rightly belong to The People of the State of New York", as the plaintiffs on whose behalf our State Attorney General prosecuted the matter, as our agent, and should therefore have been deposited into the General Fund for public use and not appropriated in a political fashion.

Unchecked control of such extraordinary sums of the money of the people of our State, would give that office power far in excess of what could possibly have been contemplated by "the people" under the constitution or otherwise. The people of this State are represented by their legislature and this measure would better serve the public by requiring legislative involvement and vote in directing the proper use of any such funds, rather than being directed by a single office or individual whose purpose and qualifications are not aligned with such functions.

This bill would provide oversight of financial recoveries to make sure that such funds are appropriated with approval of the Senate and Assembly pursuant to the State Constitution.

Legislative history

2014: Referred to Finance

Fiscal implications

Recovered funds would be deposited in the General Fund.

Effective date

This act shall take effect immediately.