Governor Hochul rang in the new year by vetoing a bill that expanded the New York State False Claims Act (“FCA”) to permit claims against non-filers. Specifically, on December 31, 2021, Governor Hochul vetoed Senate Bill S4730 (Assembly Bill A2543), explaining in Veto Message No. 83 that “the language in the bill is broader than impacting only non-filers, and would implicate more tax filing controversies to the False Claims Act than just non-filers. This would be incongruent with the way other states and the federal government pursue False Claims Act violations, and could have the effect of incentivizing private parties to bring unjustified claims under the law.” Governor Hochul further noted that “[t]here are administrative and criminal remedies in the law currently that address this conduct.”
S4730 expanded the application of the FCA from applying to “claims, records, or statements” to “claims, records, or statements, AND OBLIGATIONS….” Governor Hochul’s veto addresses the overly broad “obligations” language as implicating “more than just non-filers.” Moreover, attempting to expand the FCA to non-filers is not only incongruent with the laws of other jurisdiction’s false claims act statutes, as Governor Hochul noted, but also incongruent with the definition of a “false claim.” As its name suggests, the FCA requires a “false claim,” defined as “any claim, which is…false or fraudulent.” NYS Finance Law § 188(2). “Claim” means “any request or demand…for money or property”...
In a desperate attempt to sway an election just days before voters head to the polls, DSA-backed candidate Jibreel Jalloh and his supporters have chosen to spread false allegations involving my fa...