S 8661 NY

0likes☆Favorite🔕SubscribeShare

Skip to main content

New York State Assembly Speaker Carl E. Heastie

--> --> -->

Assembly Members

Legislative Info

Public Hearings

Speaker's Press

Assembly Reports

Committees & More

Bill Search Home Laws Legislative Calendar Public Hearing Schedule Assembly Calendars Assembly Committee Agenda Javascript must be enabled to properly view this page.

Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S08661 Summary: BILL NO S08661 &nbsp SAME AS No Same As &nbsp SPONSOR ORTT &nbsp COSPNSR BORRELLO, CHAN, O'MARA, RHOADS, STEC &nbsp MLTSPNSR &nbsp

&nbsp Requires the state comptroller to procure the services of one or more independent private professional services firms with expertise in accounting, auditing, and fraud detection to conduct a comprehensive audit of state government programs receiving state funds; requires the auditing firm to report fraud, abuse or other unlawful conduct to appropriate law enforcement agencies; requires the audit to be made publicly available.

Go to top S08661 Text:

STATE OF NEW YORK ________________________________________________________________________

8661

IN SENATE

January 7, 2026 ___________

Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Finance

AN ACT to require an independent audit of New York state government programs by a private professional services firm and to mandate refer- ral of findings of fraud or abuse to appropriate law enforcement authorities

The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:

1 Section 1. Legislative findings. The legislature finds that recent 2 reports of widespread fraud involving government-administered programs 3 in the State of Minnesota creates an urgent need for New York State to 4 conduct its own independent review of government spending programs to 5 identify and prevent fraud and abuse. 6 An independent audit would help ensure that public funds are distrib- 7 uted solely to eligible individuals and families and to legitimate 8 service providers and not exploited by scammers seeking to exploit 9 taxpayer-funded programs. 10 The New York State budget has grown to approximately $254 billion, 11 representing an unprecedented level of public spending. The size of this 12 budget, which is nearly the size of Florida and Texas budgets combined, 13 creates increased opportunities for fraud, waste, and abuse if adequate 14 oversight is not maintained. 15 There is no doubt there is fraud occurring in this state as evidenced 16 by recent scandals. In July, the United States Department of Justice 17 uncovered a $68 million Medicaid fraud scheme involving a Brooklyn-based 18 operator who paid illegal kickbacks through social adult day care 19 centers. 20 Accordingly, the legislature determines that requiring an independent, 21 professional audit of state government programs, with mandatory refer- 22 rals of substantiated findings of fraud or abuse to appropriate law 23 enforcement agencies, is necessary to ensure taxpayer dollars are only 24 being sent to legitimate individuals and organizations and fraudsters 25 are held accountable.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14336-02-6

S. 8661 2

1 § 2. Independent audit. The state comptroller, in consultation with 2 the director of the budget, shall procure, pursuant to article 11 of the 3 state finance law, the services of one or more independent private 4 professional services firms with expertise in accounting, auditing, and 5 fraud detection to conduct a comprehensive audit of state government 6 programs receiving state funds. 7 (a) The audit shall examine, among others: 8 1. Whether individuals receiving state funds are eligible to receive 9 such funds; 10 2. Whether contractors, grantees or service providers are complying 11 with applicable state and federal laws and rules; 12 3. Internal controls used by state agencies to prevent, detect, and 13 address fraud, waste, and abuse; and 14 4. Any payments, claims, or expenditures that appear improper or frau- 15 dulent, or are an abuse of taxpayer money. 16 (b) All state agencies and public authorities shall provide the audit- 17 ing firm with full and prompt access to information deemed necessary to 18 carry out the audit, including any records or data related to state 19 funds. 20 (c) The auditing firm shall submit a written report of its findings to 21 the governor, the temporary president of the senate, the speaker of the 22 assembly, the minority leader of the senate, the minority leader of the 23 assembly, the state comptroller, and the attorney general no later than 24 twelve months after the effective date of this section. Such report 25 shall include recommendations for corrective action and improved over- 26 sight of government spending programs. 27 § 3. Referral of fraud or abuse. If the auditing firm identifies any 28 fraud, abuse, or other unlawful conduct that has occurred, the auditing 29 firm shall immediately refer such findings, together with supporting 30 documentation, to the appropriate law enforcement agency. Such law 31 enforcement agency shall include but not be limited to the attorney 32 general, district attorney, or the United States Department of Justice, 33 as applicable. 34 § 4. Public disclosure of report. The final audit report shall be made 35 publicly available on the websites of the state comptroller and the 36 division of the budget. 37 § 5. This act shall take effect immediately.

Go to top

Sitemap

Request Information

Directions and Maps