BILL NUMBER: S4970
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the executive law and the state finance law, in relation
to establishing the New York children's COVID-19 fund program
 
PURPOSE OR GENERAL IDEA:
Thousands of children in New York have lost a parent or caregiver to
COVID. A savings account with $1,000 will be established for eligible
children and $1,000 added each year of eligibility. The account will be
accessible on the child's 18th birthday, and can only be used for educa-
tion, the purchase of a home, or starting a business.
 
SUMMARY OF SPECIFIC PROVISIONS:
The bill amends the executive law and the state finance law to create
the fund and the board. Among other things, it establishes that the fund
shall provide for the deposit of $1,000 into an individual trust account
for each eligible child within six months of receipt of an application
to the fund for such child, and $1,000 added for each year of eligibil-
ity. The bill additionally provides that monies within each account
shall be invested in a manner that generates a rate of return at least
equal to the rate of return earned on a 30-year treasury bond.
 
JUSTIFICATION:
COVID-19 was devastating to millions of New Yorkers, and especially to
the children in New York whose parent or primary caregiver died of coro-
navirus. This loss will have lasting effects on their educational devel-
opment and financial stability. This fund aims to reduce the harm caused
by the loss of a parent or caregiver to COVID, and it is an investment
in the future of New York. This bill is modeled after the Hope for Chil-
dren Act (2022) in California.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S6592 - Referred to Finance
 
FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
One hundred twenty days after becoming a law, with an immediate effec-
tive date for rule promulgation.