BILL NUMBER: S8661
SPONSOR: ORTT
 
TITLE OF BILL:
An act to require an independent audit of New York state government
programs by a private professional services firm and to mandate referral
of findings of fraud or abuse to appropriate law enforcement authorities
 
PURPOSE:
This bill would require the Governor to hire an independent private
professional service firm to audit state agencies and public authorities
for any payments, claims or expenditures that appear improper, fraudu-
lent or abusive. Such wrongdoing would be referred to the appropriate
law enforcement agency
 
SUMMARY OF PROVISIONS:
Section 1 is legislative finding.
Section 2 requires the Governor to hire an independent private profes-
sional service firm to audit state agencies and public authorities for
any payments, claims or expenditures that appear improper, fraudulent or
abusive. The firm would submit a written report to the Governor and the
legislature.
Section 3 states that upon identifying that fraud, abuse or other unlaw-
ful conduct has occurred, the firm must immediately refer such findings
to the appropriate law enforcement agency.
Section 4 requires the final audit report to be made publicly available.
Section 5 establishes the effective date.
 
EXISTING LAW:
None.
 
JUSTIFICATION:
Recent disturbing reports of widespread fraud involving government-ad-
ministered programs in the State of Minnesota underscore the urgent need
for New York State to conduct its own independent review of comparable
program to identify and prevent waste, fraud and abuse.
New York State's budget has exploded to approximately $254 billion,
representing an unprecedented level of spending that is ripe for waste,
fraud and abuse by bad actors. Medicaid spending in New York is around
$120 billion, an increase from $10 billion in 1988. This $110 billion
increase in spending occurred as New York's population only increased
two million residents, from 18 million people in 1988 to 20 million
people in 2025.
Recent enforcement actions demonstrate there is fraud occurring in New
York. In July, the U.S. Depaituient of Justice uncovered a $68 million
Medicaid fraud scheme involving a Brooklyn based operator who paid ille-
gal kickbacks through social adult day care centers. Also in July, the
state uncovered more than $13 million in Medicaid transportation fraud.
 
LEGISLATIVE HISTORY:
Click here
 
FISCAL IMPLICATIONS:
Cost to hire the audit The costs would likely be offset by savings
incurred through auditing and identifying waste, fraud and abuse in
government programs.
 
LOCAL FISCAL IMPLICATIONS:
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EFFECTIVE DATE:
Immediately.