BILL NUMBER: S2454
SPONSOR: GIANARIS
 
TITLE OF BILL:
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
 
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 one of the bill amends subdivision 2 of § 19 of the public offi-
cers law preventing any state reimbursement to a campaign account or
legal defense account for attorney's 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.
Section two of the bill amends subdivision 2 of § 17 of the public offi-
cers law to prevent the state from reimbursing campaign accounts or
legal defense funds in the context of civil litigation as well
Section three sets the effective date.
 
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 attorney's 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 litigant 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:
2024: S150A (Gianaris) PASSED SENATE / A148A (Cruz) died in governmental
operations
2023: S150 (Gianaris) PASSED SENATE / A148 (Cruz) died in governmental
operations
2022: S164 (Gianaris) PASSED SENATE / A8138 (Cruz) died in governmental
operations
2021: S164 (Gianaris) PASSED SENATE / A8138 (Cruz) died in governmental
operations
2019-20: S295 (Gianaris) died in Investigations and Governmental Oper-
ations
2018: S2394 (Gianaris) died in Finance
2017: S2394 (Gianaris) died in Investigations and Governmental Oper-
ations / A8576 (Kavanagh) died in governmental operations
2016: S2262 (Gianaris) died in Finance / A5618 (Kavanagh) died in
governmental operations
2015: S2262 (Gianaris) died in Investigations and Governmental Oper-
ations / A5618 (Kavanagh) died in governmental operations
 
FISCAL IMPLICATIONS:
Such reimbursements in the past have totaled millions of dollars for
single cases. Preventing such reimbursements would result in substantial
savings for the state.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any pending
claim not paid by the state before such effective date, and to any new
claim submitted to the state on or after such effective date.

Statutes affected:
S2454: 19 public officers law, 19(2) public officers law