N.Y. Executive Law § 63-c: Action by the people for illegal receipt or disposition of public funds or other property

§ 63-c. Action by the people for illegal receipt or disposition of

public funds or other property. 1. Where any money, funds, credits, or

other property, held or owned by the state, or held or owned officially

or otherwise for or in behalf of a governmental or other public

interest, by a domestic, municipal, or other public corporation, or by a

board, officer, custodian, agency, or agent of the state, or of a city,

county, town, village or other division, subdivision, department, or

portion of the state, has heretofore been, or is hereafter, without

right obtained, received, converted, or disposed of, an action to

recover the same, or to recover damages or other compensation for so

obtaining, receiving, paying, converting, or disposing of the same, or

both, may be maintained by the state in any court of the state, or

before any court or tribunal of the United States, or of any other

state, or of any territory of the United States, or of any foreign

country, having jurisdiction thereof, although a right of action for the

same cause exists by law in some other public authority, and whether an

action therefor in favor of the latter is or is not pending when the

action in favor of the state is commenced. The attorney-general shall

commence an action, suit or other judicial proceeding, as prescribed in

this section, whenever he deems it for the interests of the state so to

do; or whenever he is so directed, in writing, by the governor.

2. Upon the commencement by the state of any action, suit or other

judicial proceeding, as prescribed in this section, the entire cause of

action, including the title to the money, funds, credits, or other

property, with respect to which the suit or action is brought, and to

the damages or other compensation recoverable for the obtaining,

receipt, payment, conversion or disposition thereof, if not previously

so vested, is transferred to and becomes absolutely vested in the state.

3. Any court of the state in which an action is brought by the state,

as prescribed in this section, may direct, by the final judgment

therein, or by a subsequent order, that any money, funds, damages,

credits, or other property, recovered by or awarded to the plaintiff

therein, which, if that action had not been brought, would not have

vested in the state, be disposed of, as justice requires, in such a

manner as to reinstate the lawful custody thereof, or to apply the same

or the proceeds thereof to the objects and purposes for which they were

authorized to be raised or procured; after paying into the state

treasury out of the proceeds of the recovery all expenses incurred by

the state in the action.

4. Any corporation, board, officer, custodian, agency, or agent, in

behalf of any city, county, town, village, or other division,

subdivision, department, or portion of the state, which was not a party

to an action, brought as prescribed in this section, and which claims to

be entitled to the custody or disposition of any of the money, funds,

damages, credits, or other property, recovered by, or awarded to the

plaintiff, by the final judgment in the action, or any of the proceeds

thereof, and not disposed of as prescribed in subdivision three, may

bring a special proceeding against the attorney-general at any time

after the actual collection of the money and its payment into the state

treasury, or the actual receipt of the property by the state, in the

supreme court, county of Albany, seeking disposition of the money or

other property.

5. Notwithstanding any other law to the contrary, including without

limitation; section sixty-four of this article; the education law; the

retirement and social security law and the administrative code of the

city of New York, the portion of all money received by the attorney

general in connection with the settlement of an action arising out of

the management, operation, investments of or otherwise in connection

with a retirement or other fund established pursuant to the education

law, the retirement and social security law or the administrative code

of the city of New York attributable to the harm suffered by such fund

shall be deposited into such fund.