NY State Senate Bill 2025-S8174

Senate Bill S8174

2025-2026 Legislative Session

Authorizes certain local educational agencies to apply to the liquidation bureau to cover the costs of certain monetary liabilities

download bill text pdf

Current Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 19, 2025	referred to insurance

2025-S8174 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §7438, Ins L

2025-S8174 (ACTIVE) - Summary

Provides that in certain circumstances, any local educational agency that is found subject to liability or enters into a settlement agreement for monetary penalties as the result of a claim brought against it for violations of the child victims act may seek direct reimbursement from the liquidation bureau.

2025-S8174 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8174

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the insurance law, in relation to direct reimbursement
of certain local educational agencies for claims of violations of the
child victims act

 
PURPOSE:

Allow for local educational agencies who had insurance policies which
are now insolvent to access the liquidation bureau funds for the purpose
of paying liabilities and/or settlements related to the child victims
act.

 
SUMMARY OF PROVISIONS:

Section 1. Adds new section 7438 to the insurance law to allow local
educational agencies found liable or who have enter into a settlement
agreements as a result of the child victims act set forth in chapter
eleven of the laws of two thousand nineteen and can prove they had

insurance policies at the time of incident which are now insolvent, can
make an application to the liquidation bureau who shall cover the cost
in full, and gives the commissioner the power to promulgate policies and
procedures to implement the provisions of this section.

Section 2. Is the effective date

 
JUSTIFICATION:

The Child Victims Act (CVA) has helped many New Yorkers get compensation
for atrocious crimes they have had to suffer as children. While the CVA
was enacted in good faith and has helped many, some local educational
agencies have been saddled with substantial settlements and verdicts
they cannot pay without raising taxes substantially or cutting services.
What is troubling is most local educational agencies carried insurance
to protect them against these kinds of claims at the time these inci-
dents occurred, but cannot submit a claim because the insurance they
used are now insolvent. The liquidation bureau receives no funds from
taxpayers and its statutorily defined duty is to protect the interests
of the policyholders and creditors of insurance companies that have been
declared impaired or insolvent; unfortunately, many CVA cases fall out
of the bureau's current window to file a claim. This bill seeks to reme-
dy the burden some schools face by allowing them to submit applications
to the states liquidation bureau to cover the cost of liabilities
incurred as a result of CVA cases, as long as they can provide proof
they had insurance at the time the incidents took place. Children should
not have their education impacted by the crimes of bad actors and CVA
victims deserve full compensation for the traumatic crimes they experi-
enced.

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This bill shall take effect on the one hundred eightieth day after it
has become law.

2025-S8174 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8174
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2025
                                ___________
 
 Introduced  by Sen. MARTINEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to  direct  reimbursement
   of  certain local educational agencies for claims of violations of the
   child victims act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The insurance law is amended by adding a new section 7438
 to read as follows:
   § 7438. DIRECT REIMBURSEMENT OF  LOCAL  EDUCATIONAL  AGENCIES  BY  THE
 LIQUIDATION  BUREAU  FOR  CERTAIN  MONETARY  LIABILITIES.  (A) ANY LOCAL
 EDUCATIONAL AGENCY THAT IS FOUND SUBJECT TO LIABILITY OR ENTERS  INTO  A
 SETTLEMENT  AGREEMENT  FOR  MONETARY PENALTIES AS A RESULT OF A CLAIM OR
 CLAIMS BROUGHT AGAINST THEM PURSUANT TO  THE  PROVISIONS  OF  THE  CHILD
 VICTIMS  ACT  SET  FORTH  IN  CHAPTER ELEVEN OF THE LAWS OF TWO THOUSAND
 NINETEEN WHICH EXTENDED CERTAIN STATUTES OF LIMITATIONS FOR  VICTIMS  OF
 CHILD  ABUSE,  AND THAT: (1) PROVIDES EVIDENCE THAT SUCH SCHOOL DISTRICT
 HAD INSURANCE COVERAGE AT THE TIME THE INCIDENT OCCURRED FOR WHICH  SUCH
 CLAIM  IS BASED THAT WOULD COVER LIABILITY FOR SUCH CLAIM; AND (2) SHOWS
 THAT SUCH INSURANCE COMPANY THAT PROVIDED SUCH COVERAGE AT SUCH TIME  IS
 NOW  INSOLVENT,  SHALL  BE  AUTHORIZED TO MAKE APPLICATION TO THE LIQUI-
 DATION BUREAU TO COVER THE COST OF  SUCH  MONETARY  LIABILITY  RESULTING
 FROM SUCH CLAIMS.
   (B)  UPON  A  SATISFACTORY SHOWING BY A SCHOOL DISTRICT OF MEETING THE
 REQUIREMENTS SET FORTH IN SUBSECTION (A) OF  THIS  SECTION,  THE  LIQUI-
 DATION BUREAU SHALL COVER THE COST OF SUCH MONETARY LIABILITY IN FULL.
   (C)  THE DEPARTMENT SHALL PROMULGATE POLICIES AND PROCEDURES TO IMPLE-
 MENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13170-01-5

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