Relates to penalties for false representation and fraudulent practices; repealer

BILL NUMBER:S6052

Title of bill

An act to amend the volunteer ambulance workers' benefit law and the volunteer firefighters' benefit law, in relation to penalties for false representation and to repeal certain provisions of such laws relating thereto

Purpose

The purpose of the legislation is to ensure that sections 114 and 114-a of the workers compensation law is applicable to volunteer firefighters and volunteer ambulance workers.

Summary of provisions

Section one repeals section 55 of the volunteer firefighters benefit law and replaces it with current sections 114 and 114-a of the workers' compensation law.

Section two repeals section 55 of the volunteer ambulance workers benefit law and replaces it with current sections 114 and 114-a of the workers' compensation law.

Section three provides for an immediate effective date.

Justification

Currently, a volunteer firefighter or ambulance worker who is injured in the line of duty is eligible for workers' compensation benefits if he or she can demonstrate a loss of earning capacity. Additionally, both the workers' compensation law and the volunteer firefighters benefits law (VFBL) provide for criminal penalties for offering fraudulent information in support of a claim. In 1996, the legislature amended the workers' compensation law to also include civil penalties for fraudulent claims by adding a new section 114-a. Unfortunately, no corresponding amendment was made to either the VFBL or the volunteer ambulance workers benefits law (VAWBL). The issue of the applicability of section 114-a to the to the VFBL was addressed before the New York State Workers Compensation Board and the Board determined that section 114-a was inapplicable to the VFBL.

This issue was appealed to the Appellate Division, Third Department and in the case of Giello v. Providence Fire District, 869 N.Y.S.2d 676 (2008) the Appellate Division affirmed the Workers' Compensation Board's decision establishing that section 114-a which provides for a disqualification of benefits to a claimant for making false representations did not apply to benefits awarded pursuant to the VFBL on the basis that section 114-a was unambiguous and limited its application to wage replacement benefits under the workers' compensation law.

Under the circumstances, the issue of the applicability of section 114-a to the VFBL and VAWBL should be addressed by the legislature. It is only fair that civil penalties should be provided for fraudulent

claims involving volunteer firefighters offering fraudulent information in support of a claim under the VFBL.

The VFBL and VAWBL provides cash benefits and/or medical care for volunteer members who are injured or become ill in the line of duty, and recognizes the unselfish service of volunteer firefighters and ambulance workers. The law was designed to protect these volunteers who are injured in the line of duty. Similarly, the law should be amended to provide for civil penalties similar to section 114-a in keeping with the intent of the statute which was to protect volunteer firefighters and ambulance workers who provide unselfish service and provide for civil penalties for those who choose to take advantage of the statute by submitting fraudulent information in support of a claim under the VFBL and VAWBL.

Legislative history

S.7552 of 2014.

Fiscal implications

To be determined.

Effective date

Immediately.