New York A 4412: Establishes audits of state agency expenditures to recover overpayments and lost discounts

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A04412 Summary:

BILL NOA04412 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORBologna

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 7-B §§124 - 124-d, St Fin L

&nbsp

Establishes audits of state agency expenditures to recover overpayments and lost discounts.

Go to top A04412 Actions:

BILL NOA04412 

&nbsp

02/04/2025referred to governmental operations

01/07/2026referred to governmental operations

Go to topA04412 Committee&nbspVotes:

Go to topA04412 Floor&nbspVotes:

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

Go to topA04412 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4412

 2025-2026 Regular Sessions

 IN ASSEMBLY

 February 4, 2025
 ___________

 Introduced by M. of A. BOLOGNA -- read once and referred to the Commit-
 tee on Governmental Operations

 AN ACT to amend the state finance law, in relation to establishing
 audits of state agency expenditures to recover overpayments and lost
 discounts

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The state finance law is amended by adding a new article
 2 7-B to read as follows:

 3 ARTICLE 7-B
 4 RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
 5 Section 124. Definitions.
 6 124-a. Contract consultants for recovery audits for certain
 7 overpayments.
 8 124-b. State agencies subject to mandatory recovery audits.
 9 124-c. Payment to contractors.
 10 124-d. Forwarding reports.
 11 § 124. Definitions. As used in this article:
 12 1. Overpayment. "Overpayment" includes a duplicate payment made to a
 13 vendor for a single invoice and a payment made to a vendor:
 14 (a) when an available discount from the vendor was not applied;
 15 (b) for a late payment penalty that was improperly applied by the
 16 vendor;
 17 (c) for shipping costs that were computed incorrectly or incorrectly
 18 included in an invoice;
 19 (d) for state sales tax; or
 20 (e) for a good or service the vendor did not provide.
 21 2. State agency. "State agency" means a department, commission, board,
 22 office, or other agency, including a university system or an institution
 23 of higher education that:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03950-01-5

 A. 4412 2

 1 (a) is in the executive branch of state government; and
 2 (b) is created by statute.
 3 § 124-a. Contract consultants for recovery audits for certain overpay-
 4 ments. 1. The comptroller shall contract with one or more consultants to
 5 conduct recovery audits of payments made by state agencies to vendors.
 6 The audits must be designated to detect and recover overpayment to the
 7 vendors and to recommend improved state agency accounting operations.
 8 2. A contract under this section:
 9 (a) may provide for reasonable compensation for services provided
 10 under the contract, including compensation determined by the application
 11 of a specified percentage of the total amount recovered because of the
 12 consultant's audit activities or recommendations as a fee for services;
 13 (b) may permit or require the consultant to pursue a judicial action
 14 in a court inside or outside this state to recover an overpaid amount;
 15 and
 16 (c) to allow time for the performance of existing state payment audit-
 17 ing procedures, may not allow a recovery audit of a payment during the
 18 one hundred eighty day period after the date the payment was made.
 19 3. The comptroller or a state agency whose payments are being audited
 20 may provide a person acting under a contract authorized by this section
 21 with any confidential information in the custody of the comptroller or
 22 state agency that is necessary for the performance of the audit or the
 23 recovery of an overpayment, to the extent the comptroller and state
 24 agency are not prohibited from sharing the information under an agree-
 25 ment with another state or the federal government. A person acting under
 26 a contract authorized by this section, and each employee or agent of the
 27 person, is subject to all prohibitions against the disclosure of confi-
 28 dential information obtained from the state in connection with the
 29 contract that apply to the comptroller or applicable state agency or an
 3