New York A 10065: Relates to authorizing the New York Liquidation Bureau to establish a reimbursement program for eligible local educational agencies

Bill Text

Bill Search and Legislative Information | New York State Assembly 

• 

• 

• 

• 

• 

• 

• 

• 

 Skip to main content 

 New York State Assembly

 Speaker Carl E. Heastie

 --> 
 --> 

 --> 

• 
 Assembly Members 

• 
 Legislative Info 

• 
 Public Hearings 

• 
 Speaker's Press 

• 
 Assembly Reports 

• 
 Committees & More 

• Bill Search Home
• Laws
• Legislative Calendar
• Public Hearing Schedule
• Assembly Calendars
• Assembly Committee Agenda 

 Javascript must be enabled to properly view this page. 

 Bill No.: 

• Summary 
• Actions 
• Committee&nbspVotes 
• Floor&nbspVotes 
• Memo 
• Text 
• LFIN 
• Chamber&nbspVideo/Transcript 
A10065 Summary:

BILL NOA10065 

&nbsp

SAME ASSAME AS S08174-A

&nbsp

SPONSORKassay

&nbsp

COSPNSRConrad, Stern, Schiavoni, Brown K, O'Pharrow, Lunsford, Lavine, Tapia, Griffin, Clark, Durso,
 Hevesi, Shimsky, Shrestha, DeStefano, Ramos

&nbsp

MLTSPNSR

&nbsp

Add §7438, Ins L

&nbsp

Authorizes the New York Liquidation Bureau to establish a program to evaluate and reimburse eligible local educational agencies for monetary liabilities arising from civil claims or settlement agreements related to certain acts that occurred during a period covered by a liability insurance policy issued by an insolvent insurer.

Go to top A10065 Actions:

BILL NOA10065 

&nbsp

01/30/2026referred to insurance

Go to topA10065 Committee&nbspVotes:

Go to topA10065 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA10065 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 10065

 IN ASSEMBLY

 January 30, 2026
 ___________

 Introduced by M. of A. KASSAY, CONRAD, STERN, SCHIAVONI, K. BROWN --
 read once and referred to the Committee on Insurance

 AN ACT to amend the insurance law, in relation to authorizing the New
 York Liquidation Bureau to establish a reimbursement program for
 eligible local educational agencies

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Legislative findings and intent. The legislature acknowl-
 2 edges that local educational agencies (LEAs), including public school
 3 districts and special education providers, are facing unanticipated and
 4 significant financial liabilities resulting from settled civil claims
 5 brought under the Child Victims Act. These settlements often arise from
 6 misconduct occurring during periods when LEAs were insured by liability
 7 carriers that have since become insolvent.
 8 In many cases, the current LEAs are now required to satisfy settle-
 9 ments or judgments without the avail of expected insurance coverage.
 10 Under the Child Victims Act, the lookback window for civil claims was
 11 originally set for one year and later extended by an additional year due
 12 to the COVID-19 pandemic. However, the state has not yet accounted for
 13 or addressed this extended period in relation to claims involving insol-
 14 vent insurers. The New York Liquidation Bureau, under the Department of
 15 Financial Services, administers the estates of insolvent insurers but is
 16 not currently authorized to reimburse LEAs for such liabilities or
 17 pursue reciprocal claims due to expired statutory limitations.
 18 The legislature hereby finds that this legal gap creates an inequita-
 19 ble burden on public educational institutions and threatens the fiscal
 20 functionality of school systems throughout the state. Furthermore, the
 21 legislature recognizes that the inability of LEAs to reach or fund
 22 settlements due to insolvency risks directly undermines the ability of
 23 victims to obtain timely restitution and resolution of their claims.
 24 Accordingly, this act authorizes the Bureau to establish a reimbursement
 25 program for eligible LEAs and empowers the Bureau and the State of New
 26 York to supplement insolvent estates where necessary. This authorization
 27 shall not apply to educational entities located within the City of New
 28 York, which operates under separate and distinct educational funding
 29 structures.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13226-03-6

 A. 10065 2

 1 § 2. The insurance law is amended by adding a new section 7438 to read
 2 as follows:
 3 § 7438. Reimbursement program for local educational agencies impacted
 4 by insolvent insurers. (a) As used in this section, the following terms
 5 shall have the following meanings:
 6 (1) "Local educational agency" or "LEA" means any public school
 7 district or approved board of cooperative educational services, exclud-
 8 ing those located within a city having a population of one million or
 9 more.
 10 (2) "Bureau" means the New York Liquidation Bureau.
 11 (3) "Insolvent insurer" means any insurer that has been adjudicated
 12 insolvent pursuant to an order of liquidation by a court of competent
 13 jurisdiction of this state