Establishes a fraud assessment commission; directs the chair of the workers' compensation board, in consultation with the workers' compensation fraud inspector general and the fraud assessment commission, to establish an assessment for workers' compensation fraud investigations to fund the investigation and prosecution of workers' compensation fraud, willful failure to secure payment of workers' compensation, and failure to keep true and accurate records; establishes the workers' compensation fraud investigation fund in the joint custody of the chair of the workers' compensation board, the commissioner of labor, and the comptroller, which shall consist of monies received from the imposition of the assessment for workers' compensation fraud investigations.
S07950 creates a new framework in New York to finance enforcement of workers’ compensation fraud laws. It establishes a ten-member fraud assessment commission appointed by the governor, with representation from labor, self-insured employers, insured employers, insurers, and a claimant attorney, plus ex officio voting members from the Workers’ Compensation Board, the Department of Labor, and the inspector general. The commission is intended to advise on how funds are raised and distributed for fraud investigations.
The bill also directs the chair of the Workers’ Compensation Board, in consultation with the inspector general and the commission, to set an annual assessment on employers that secure workers’ compensation coverage. Those assessment revenues would be deposited into a newly created workers’ compensation fraud investigation fund. The fund would support investigation and prosecution of employer workers’ compensation fraud, willful failure to secure coverage, and failure to keep accurate records, with at least 50 percent distributed to district attorneys. The bill requires reporting on fund receipts and expenditures and takes effect immediately.
The bill amends the Workers’ Compensation Law by adding sections 151-a and 151-b and amends the State Finance Law by adding section 99-tt. In practical terms, it creates a dedicated funding stream for enforcement of workers’ compensation fraud laws and authorizes a new assessment on affected employers to pay for those enforcement activities. It also creates a special fund under the joint custody of the Workers’ Compensation Board chair, the labor commissioner, and the comptroller, with statutory rules for distribution, reporting, and administration.
The available voting history shows strong, unanimous support: the Senate Rules Committee advanced the bill 20-0, the Senate passed it 59-0, and the Assembly passed it 133-0. That suggests broad bipartisan agreement that workers’ compensation fraud, especially in the construction industry, is a serious problem that warrants additional enforcement resources. The bill’s findings frame the issue as both a labor and tax-compliance concern, and the votes indicate little public legislative opposition in the recorded history provided.
No committee transcript or recorded floor debate is provided, and the roll calls show no opposition votes, so there is no documented in-record contention in the materials supplied. Based on the bill text, the most likely policy tension is who should bear the cost of enforcement: the assessment is imposed on employers securing workers’ compensation coverage, including law-abiding employers, to fund investigations of fraud by others. Another possible point of concern is the commission’s composition and the discretion given to the Workers’ Compensation Board and labor officials to allocate funds and determine whether district attorneys are eligible for continued distributions.