New York Senate Bill S03149

New York 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25
• Refer: 1/7/26

Caption

Establishes the child victims act fund which provides grant awards in reimbursement to public school districts and voluntary foster care agencies located within the state who have been named as defendants in certain child sexual abuse legal cases and in which it can be demonstrated by the public school district or voluntary foster care agency that no insurance policy for the covered period can be located after a good-faith effort to do so has been made, there was a monetary judgment issued or settlement agreement with regard to such action and where it can be demonstrated by the public school district or voluntary foster care agency that payment in full of such judgment or settlement would put a substantial burden on the district's or agency's ability to execute its mission and negatively impact its existing student population.

Summary

S03149 would create a new special fund in the state treasury called the Child Victims Act Fund, jointly overseen by the commissioner of taxation and finance, the comptroller, and the commissioner of the Division of Criminal Justice Services. The fund would be financed by revenues from two new voluntary tax checkoffs—one on corporate income tax returns and one on personal income tax returns—along with any other appropriations, transfers, gifts, or bequests. The bill also appropriates $200 million to seed the fund immediately. The fund’s money could be used only to reimburse public school districts and voluntary foster care agencies in New York that have been sued under the Child Victims Act, where no applicable insurance policy can be found after a good-faith search, a judgment or settlement has been entered, and paying the full amount would substantially burden the district or agency and harm its ability to serve students. The Division of Criminal Justice Services would certify vouchers for payment, and it would have to report annually on fund activity, including disbursements, recipients, award amounts, purposes, and a financial plan for future years.

Impact

The bill would amend the state finance law to establish a dedicated special revenue fund and amend the tax law to add two new voluntary contribution mechanisms on state tax returns. It would also create a new state appropriation of $200 million for the fund. In practical terms, the measure would shift state resources toward helping certain public school districts and voluntary foster care agencies satisfy Child Victims Act-related judgments or settlements when insurance coverage is unavailable and full payment would create severe operational hardship.

Sentiment

Based on the bill’s sponsors and caption, the measure appears intended as a targeted relief mechanism for public school districts and foster care agencies facing large liabilities from Child Victims Act cases. The absence of recorded committee debate or votes in the provided context means there is no documented floor or committee sentiment here, but the bill’s structure suggests support from lawmakers concerned about the financial strain on institutions named in these cases. At the same time, the bill’s focus on reimbursing defendants in child sexual abuse litigation indicates it could draw concern from advocates for survivors or those wary of using public funds to offset such liabilities.

Contention

The main point of contention is likely whether state money should be used to reimburse public entities and foster care agencies that were defendants in Child Victims Act lawsuits, especially where the underlying claims involve child sexual abuse. Supporters would emphasize preventing severe disruption to school districts and agencies that lack insurance coverage and cannot absorb large judgments or settlements. Opponents may argue that the bill reduces accountability, diverts public funds from other priorities, or effectively socializes the cost of misconduct-related liabilities. Another possible issue is the bill’s eligibility standard, which requires proof that no insurance policy can be located and that payment would substantially burden the institution, leaving room for dispute over who qualifies and how hardship is measured.