New York S 8661: Relates to paratransit services

Bill Text

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S08661 Summary:

BILL NOS08661 

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SAME ASNo Same As

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SPONSORORTT

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COSPNSRBORRELLO, CHAN, O'MARA, RHOADS, STEC

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MLTSPNSR

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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 Actions:

BILL NOS08661 

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01/07/2026REFERRED TO FINANCE

03/10/2026NOTICE OF COMMITTEE CONSIDERATION - REQUESTED

05/12/2026DEFEATED IN FINANCE

Go to topS08661 Committee&nbspVotes:

Go to topS08661 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS08661 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