What's happening
This bill prohibits campaign committees or legal defense funds from being reimbursed by the state for legal defense costs for state employees.
Why it matters
Closes a loophole that could allow campaign or legal defense funds to be reimbursed by taxpayers for legal expenses incurred by state employees, ensuring public money is not used to indirectly subsidize political or campaign-related legal costs.
Mandates that if a state employee has a legal defense fund established for their benefit, they are ineligible for any state reimbursement until the fund is fully depleted, discouraging the use of such funds as a first resort for legal fees.
Strengthens state ethics and accountability by drawing a clear line between personal political/campaign finances and state financial responsibility, potentially increasing public trust in how legal expenses related to official duties are handled.
May influence how state employees and officials plan for and manage legal risks, encouraging them to rely on personal or private resources rather than expecting state reimbursement for matters connected to campaign or political activity.
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Who cares
Headline styles
Stop State Paying Legal Bills
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
295
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. GIANARIS, BROOKS, HOYLMAN, KAMINSKY, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the public officers law, in relation to prohibiting reimbursement of campaign committees and legal defense funds for defense costs incurred on behalf of state employees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 19 of the public officers law, as amended by chapter 769 of the laws of 1985, is amended to read as follows:
2. (a) Upon compliance by the employee with the provisions of subdivision three of this section, and subject to the restrictions set forth in paragraph (b) of this subdivision and the conditions set forth in paragraph [(b)] (c) of this subdivision, it shall be the duty of the state to pay reasonable attorneys' fees and litigation expenses incurred by or on behalf of an employee in his or her defense of a criminal proceeding in a state or federal court arising out of any act which occurred while such employee was acting within the scope of his public employment or duties upon his acquittal or upon the dismissal of the criminal charges against him or reasonable attorneys' fees incurred in connection with an appearance before a grand jury which returns no true bill against the employee where such appearance was required as a result of any act which occurred while such employee was acting within the scope of his public employment or duties unless such appearance occurs in the normal course of the public employment or duties of such employee.
(b) No reimbursement shall be paid pursuant to this section to any campaign or political committee, or legal defense fund which pays all or any portion of an employees' reasonable attorneys' fees and/or litigation expenses. Furthermore, an employee on whose behalf a legal
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05020-01-9
S. 295 2
defense fund or legal defense funds have been established, shall not be eligible for reimbursement pursuant to this section until all moneys in such fund or funds have been expended for the employees' reasonable attorneys' fees and/or litigation expenses.
(c) Upon the application for reimbursement for reasonable attorneys' fees or litigation expenses or both made by or on behalf of an employee as provided in subdivision three of this section, the attorney general shall determine, based upon his investigation and his review of the facts and circumstances, whether such reimbursement shall be paid. The attorney general shall notify the employee in writing of such determination. Upon determining that such reimbursement should be provided, the attorney general shall so certify to the comptroller. Upon such certification, reimbursement shall be made for such fees or expenses or both upon the audit and warrant of the comptroller. On or before January fifteenth the comptroller, in consultation with the department of law and other agencies as may be appropriate, shall submit to the governor and the legislature an annual accounting of judgments, settlements, fees, and litigation expenses paid pursuant to this section during the preceding and current fiscal years. Such accounting shall include, but not be limited to the number, type and amount of claims so paid, as well as an estimate of claims to be paid during the remainder of the current fiscal year and during the following fiscal year. Any dispute with regard to entitlement to reimbursement or the amount of litigation expenses or the reasonableness of attorneys' fees shall be resolved by a court of competent jurisdiction upon appropriate motion or by way of a special proceeding.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public officers law, in relation to prohibiting reimbursement of campaign committees and legal defense funds for defense costs incurred on behalf of state employees
Purpose
To close a loophole in New York's ethics laws, preventing state taxpayer money from being used to reimburse campaign or legal defense accounts.
Summary of provisions
Section 1 amends subdivision 2 of section 19 of the Public Officers Law preventing any state reimbursement to a campaign account or legal defense account for attorneys fees and litigation expenses to a public official after an acquittal or dismissal. Additionally, no reimbursement shall be made to a state employee who has a legal defense account until all funds from such account have been expended.
Justification
Currently, when a state employee is acquitted of criminal charges aris- ing from his or her duties while in office, or has such charges dismissed, the State provides reimbursement for all attorneys fees and litigation expenses, subject to the approval of the Attorney General and the Comptroller. The situation has arisen, however, where state employ- ees have paid for such costs using campaign funds or a special legal defense fund, and subsequently require the taxpayers to reimburse dormant campaign or legal defense accounts.
This bill will protect taxpayers by preventing reimbursements to a campaign committee or legal defense fund. Additionally, the bill provides that if a criminal defendant has a legal defense fund, he or she will be required to expend all money in the account before he or she would be entitled to any taxpayer reimbursement.
Legislative history
2018: Reported by Investigations and Government Operations, Died in Finance 2017: Defeated in Investigations and Government Operations 2016: Reported by Investigations and Government Operations, died in Finance 2015: Defeated in Investigations and Government Operations
Fiscal implications
Such reimbursements in the past have totaled millions of dollars for single cases. Preventing such reimbursements would result in substantial savings to the state.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.