New York Senate Bill S06490

New York 2025-2026 Regular Session

• Introduced: 3/14/25
• Refer: 3/14/25
• Refer: 1/7/26

Caption

Enacts the "state taxpayer oversight and protection (STOP) act"; relates to the payment of attorneys' fees by the state; provides that no attorneys' fees or expenses shall be paid if incurred on behalf of an employee in any action brought by the employee against the state; provides that attorneys' fees shall be presumptively unreasonable where an individual hires or employs multiple law firms on the same matter unless such employee can demonstrate the need for additional attorneys with distinct subject matter expertise.

Summary

S06490, the “State Taxpayer Oversight and Protection (STOP) Act,” amends Section 17 of the Public Officers Law, which governs when the state must defend and reimburse public employees for legal costs arising from actions taken within the scope of their public employment. The bill keeps the existing framework that allows state defense and payment of reasonable attorneys’ fees for covered employees, but adds new limits on when those fees may be paid and how they are reviewed. The bill would bar the state from paying attorneys’ fees or expenses incurred on behalf of an employee in any action brought by that employee against the state. It also directs the Comptroller to determine whether fees paid by the state are proportional to the needs of the case and consistent with similar defenses, and creates a presumption that fees are unreasonable when an individual hires multiple law firms for the same matter unless the employee can show a need for distinct expertise. The measure applies immediately to pending unpaid claims and new claims submitted on or after the effective date.

Impact

The bill would narrow the circumstances under which New York pays for legal defense and litigation expenses for public employees under Public Officers Law §17. It adds a categorical prohibition on reimbursement for fees in employee-initiated actions against the state, and it gives the Comptroller a more explicit oversight role in reviewing the proportionality and reasonableness of attorneys’ fees. The bill would also affect how private counsel is retained and compensated in covered cases, especially where multiple law firms are involved.

Sentiment

The available context suggests the bill is framed as a taxpayer-protection and cost-control measure, with its title and provisions emphasizing oversight, reasonableness, and limits on state-funded legal spending. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of floor debate or formal support/opposition in the supplied materials. The bill’s structure indicates a generally skeptical posture toward expansive fee reimbursement rather than a neutral technical cleanup.

Contention

The main points of contention are likely to be the new prohibition on paying fees in suits brought by employees against the state and the tighter scrutiny of attorneys’ fees by the Comptroller. Supporters would likely view these changes as preventing abuse, duplicative billing, and unnecessary taxpayer expense, while opponents may argue the bill could discourage employees from pursuing legitimate claims or limit access to counsel in complex cases. Another likely dispute is the presumption against multiple law firms, which could be seen either as prudent cost control or as an undue restriction on a party’s ability to mount an effective defense.