Creates incentives for counties to investigate and prosecute medicaid fraud

This bill creates financial incentives for New York counties and New York City to investigate and prosecute Medicaid fraud. It requires that counties receive either 100% of their local share of recovered funds (as defined by state budget records) or 10% of the total amount recovered - whichever is greater - when fraud cases result in restitution or civil forfeiture. The remainder of recovered funds must be deposited into the state general fund. This policy directly affects local governments by increasing their potential share of fraud-related recoveries, encouraging proactive enforcement of Medicaid fraud cases.