New York S 8174: Relates to matching financing; relates to the New York state campaign finance fund and the abandoned property fund

Bill Text

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S08174 Summary:

BILL NOS08174A

&nbsp

SAME ASSAME AS A10065

&nbsp

SPONSORMARTINEZ

&nbsp

COSPNSRMATTERA, MURRAY

&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 S08174 Actions:

BILL NOS08174A

&nbsp

05/19/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

02/10/2026AMEND (T) AND RECOMMIT TO INSURANCE

02/10/2026PRINT NUMBER 8174A

05/04/2026REPORTED AND COMMITTED TO EDUCATION

05/19/2026REPORTED AND COMMITTED TO FINANCE

Go to topS08174 Committee&nbspVotes:

Go to topS08174 Floor&nbspVotes:

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

Go to topS08174 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 8174--A

 2025-2026 Regular Sessions

 IN SENATE

 May 19, 2025
 ___________

 Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on Insurance -- recommitted
 to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
 -- committee discharged, bill amended, ordered reprinted as amended
 and recommitted to said committee

 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

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13170-03-6

 S. 8174--A 2

 1 settlements due to insolvency risks directly undermines the ability of
 2 victims to obtain timely restitution and resolution of their claims.
 3 Accordingly, this act authorizes the Bureau to establish a reimbursement
 4 program for eligible LEAs and empowers the Bureau and the State of New
 5 York to supplement insolvent estates where necessary. This authorization
 6 shall not apply to educational entities located within the City of New
 7 York, which operates under separate and distinct educational funding
 8 structures.
 9 § 2. The insurance law is amended by adding a new section 7438 to read
 10 as follows:
 11 § 7438. Reimbursement program for local educational agencies impacted
 12 by insolvent insurers. (a) As used in this section, the following terms
 13 shall have the following meanings:
 14 (1) "Local educational agency" or "LEA" means any public school
 15 district or approved board of cooperative educational services, exclud-
 16 ing those l