S 2454 NY

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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S02454 Summary: BILL NO S02454 &nbsp SAME AS SAME AS A00298

&nbsp SPONSOR GIANARIS &nbsp COSPNSR HOYLMAN-SIGAL, KRUEGER, WEBB &nbsp MLTSPNSR &nbsp Amd §§19 & 17, Pub Off L &nbsp Prohibits state reimbursement of campaign and political committees, or legal defense funds, for payments made on behalf of the criminal or civil defense of a state employee.

Go to top S02454 Text:

STATE OF NEW YORK ________________________________________________________________________

2454

2025-2026 Regular Sessions

IN SENATE

January 17, 2025 ___________

Introduced by Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Ethics and Internal Governance

AN ACT to amend the public officers law, in relation to prohibiting reimbursement of campaign and political 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 Assem- bly, do enact as follows:

1 Section 1. Subdivision 2 of section 19 of the public officers law, as 2 amended by chapter 769 of the laws of 1985, is amended to read as 3 follows: 4 2. (a) Upon compliance by the employee with the provisions of subdivi- 5 sion three of this section, and subject to the restrictions set forth in 6 paragraph (b) of this subdivision and the conditions set forth in para- 7 graph [ (b) ] (c) of this subdivision, it shall be the duty of the state 8 to pay reasonable attorneys' fees and litigation expenses incurred by or 9 on behalf of an employee in [ his or her ] such employee's defense of a 10 criminal proceeding in a state or federal court arising out of any act 11 which occurred while such employee was acting within the scope of [ his ] 12 such employee's public employment or duties upon [ his ] such employee's 13 acquittal or upon the dismissal of the criminal charges against [ him ] 14 the employee or reasonable attorneys' fees incurred in connection with 15 an appearance before a grand jury which returns no true bill against the 16 employee where such appearance was required as a result of any act which 17 occurred while such employee was acting within the scope of [ his ] the 18 employee's public employment or duties unless such appearance occurs in 19 the normal course of the public employment or duties of such employee. 20 (b) No reimbursement shall be paid pursuant to this section to any 21 campaign or political committee or legal defense fund that pays all or 22 any portion of an employee's reasonable attorneys' fees and/or liti- 23 gation expenses. Reimbursements received pursuant to this section by the

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00162-01-5

S. 2454 2

1 employee or their legal counsel shall not be paid by such employee or 2 legal counsel to a campaign or political committee or legal defense 3 fund. Furthermore, an employee on whose behalf a legal defense fund or 4 legal defense funds have been established shall not be eligible for 5 reimbursement pursuant to this section until all moneys in such fund or 6 funds have been expended for the employee's reasonable attorneys' fees 7 and/or litigation expenses. Prior to reimbursement being issued, an 8 employee and their legal counsel shall certify to both the attorney 9 general and the comptroller that there are no funds remaining in any 10 legal defense fund established on behalf of the employee and that no 11 monies requested pursuant to this section will be used to reimburse a 12 campaign or political committee or legal defense fund. 13 (c) Upon the application for reimbursement for reasonable attorneys' 14 fees or litigation expenses or both made by or on behalf of an employee 15 as provided in subdivision three of this section, the attorney general 16 shall determine, based upon [ his ] their investigation and [ his ] their 17 review of the facts and circumstances, whether such reimbursement shall 18 be paid. The attorney general shall notify the employee in writing of 19 such determination. Upon determining that such reimbursement should be 20 provided, the attorney general shall so certify to the comptroller. Upon 21 such certification, reimbursement shall be made for such fees or 22 expenses or both upon the audit and warrant of the comptroller. On or 23 before January fifteenth the comptroller, in consultation with the 24 department of law and other agencies as may be appropriate, shall submit 25 to the governor and the legislature an annual accounting of judgments, 26 settlements, fees, and litigation expenses paid pursuant to this section 27 during the preceding and current fiscal years. Such accounting shall 28 include, but not be limited to the number, type and amount of claims so 29 paid, as well as an estimate of claims to be paid during the remainder 30 of the current fiscal year and during the following fiscal year. Any 31 dispute with regard to entitlement to reimbursement or the amount of 32 litigation expenses or the reasonableness of attorneys' fees shall be 33 resolved by a court of competent jurisdiction upon appropriate motion or 34 by way of a special proceeding. 35 § 2. Subdivision 2 of section 17 of the public officers law, as added 36 by chapter 466 of the laws of 1978 and paragraph (a) as amended by chap- 37 ter 768 of the laws of 1985, is amended to read as follows: 38 2. (a) Upon compliance by the employee with the provisions of subdivi- 39 sion four of this section, the state shall provide for the defense of 40 the employee in any civil action or proceeding in any state or federal 41 court arising out of any alleged act or omission which occurred or is 42 alleged in the complaint to have occurred while the employee was acting 43 within the scope of [ his ] the employee's public employment or duties; or 44 which is brought to enforce a provision of section nineteen hundred 45 eighty-one or nineteen hundred eighty-three of title forty-two of the 46 United States code and the act or omission underlying the action 47 occurred or is alleged in the complaint to have occurred while the 48 employee was acting within the scope of [ his ] the employee's public 49 employment or duties. This duty to provide for a defense shall not 50 arise where such civil action or proceeding is brought by or on behalf 51 of the state. 52 (b) Subject to the conditions set forth in paragraph (a) of this 53 subdivision, the employee shall be entitled to be represented by the 54 attorney general, provided, however, that the employee shall be entitled 55 to representation by private counsel of [ his ] the employee's choice in 56 any civil judicial proceeding whenever the attorney general determines

S. 2454 3

1 based upon [ his ] their investigation and review of the facts and circum- 2 stances of the case that representation by the attorney general would be 3 inappropriate, or whenever a court of competent jurisdiction, upon 4 appropriate motion or by a special proceeding, determines that a 5 conflict of interest exists and that the employee is entitled to be 6 represented by private counsel of [ his ] the employee's choice. The 7 attorney general shall notify the employee in writing of such determi- 8 nation that the employee is entitled to be represented by private coun- 9 sel. The attorney general may require, as a condition to payment of the 10 fees and expenses of such representation, that appropriate groups of 11 such employees be represented by the same counsel. If the employee or 12 group of employees is entitled to representation by private counsel 13 under the provisions of this section, the attorney general shall so 14 certify to the comptroller. Reasonable attorneys' fees and litigation 15 expenses shall be paid by the state to such private counsel from time to 16 time during the pendency of the civil action or proceeding subject to 17 certification that the employee is entitled to representation under the 18 terms and conditions of this section by the head of the department, 19 commission, division, office or agency in which such employee is 20 employed [ and ] upon the audit and warrant of the comptroller , and 21 subject to the restrictions set forth in paragraph (c) of this subdivi- 22 sion . Any dispute with respect to representation of multiple employees 23 by a single counsel or the amount of litigation expenses or the reason- 24 ableness of attorneys' fees shall be resolved by the court upon motion 25 or by way of a special proceeding. 26 (c) No funds shall be paid pursuant to this section to any campaign or 27 political committee or legal defense fund. Funds received pursuant to 28 this section by the employee or their legal counsel shall not be paid by 29 such employee or legal counsel to a campaign or political committee or 30 legal defense fund. Furthermore, an employee on whose behalf a legal 31 defense fund or legal defense funds have been established, shall not be 32 eligible for payment pursuant to this section until all moneys in such 33 fund or funds have been expended for the employee's reasonable attor- 34 neys' fees and/or litigation expenses. Prior to payment being issued, an 35 employee and their legal counsel shall certify to both the attorney 36 general and the comptroller that there are no funds remaining in any 37 legal defense fund established on behalf of the employee and that no 38 monies requested pursuant to this section will be used to reimburse a 39 campaign or political committee or legal defense fund. 40 (d) Where the employee delivers process and a request for a defense to 41 the attorney general as required by subdivision four of this section, 42 the attorney general shall take the necessary steps including the 43 retention of private counsel under the terms and conditions provided in 44 paragraph (b) of subdivision two of this section on behalf of the 45 employee to avoid entry of a default judgment pending resolution of any 46 question pertaining to the obligation to provide for a defense. 47 § 3. This act shall take effect immediately and shall apply to any 48 pending claim not paid by the state before such effective date, and to 49 any new claim submitted to the state on or after such effective date.

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