BILL NUMBER: S6490A
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the public officers law, in relation to enacting the
"state taxpayer oversight and protection (STOP) act"
 
PURPOSE OR GENERAL IDEA OF BILL:
To set reasonable limitations on the state's reimbursement of attorneys'
fees and litigation expenses for state employees in civil proceedings
related to their public duties while maintaining equitable access to
legal representation.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends Public Officers Law § 17(2)(a) to replace gendered
language ("his") with gender-neutral pronouns ("their") and to clarify
that the state will not reimburse attorney's fees or expenses for an
employee who initiates legal action against the state.
It also amends Public Officers Law § 17(2)(b) to require the Comptroller
to certify that legal fees are proportional to the needs of the case and
consistent with the defense approach in similar cases. It establishes a
presumption that hiring multiple law firms for the same matter is unrea-
sonable unless the employee can demonstrate the need for attorneys with
distinct subject matter expertise. Furthermore, the bill explicitly
prohibits the state from paying attorneys' fees deemed unreasonable by
the Comptroller.
 
JUSTIFICATION:
Current law provides that the state shall reimburse state employees for
any litigation expenses that arise from a civil lawsuit related to their
public duties. However, ambiguities in existing law have led to cases
where excessive or unnecessary legal costs are incurred at the state's
expense, creating a financial burden on taxpayers. This bill introduces
key reforms to enhance fiscal responsibility and fairness by ensuring
that state reimbursement of legal defense is proportional and appropri-
ate to the case at hand. This would empower the Comptroller to assess
whether such reimbursement is truly reasonable and in line with best
practices. For example, under this bill, state reimbursement of legal
expenses would be considered presumptively unreasonable if an employee
seeks to hire multiple law firms on the same matter. By implementing
these measures, the bill would ensure that taxpayer money is not wasted
while continuing to provide necessary support to state employees for
their legal defense.
 
PRIOR LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS:
TBD.
 
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.