Raises the level of claims to $6,000 for which proof of financial difficulty is not required

1 Co-sponsor

• Liz Krueger

BILL NUMBER:S3728

Title of bill

An act to amend the executive law, in relation to raising the level of claims for which proof of financial difficulty is not required

Purpose

To raise the threshold amount for claims for compensation for crime related losses, for which the Crime Victims Board must determine that the claimant will suffer financial difficulty unless the claim is approved, from $5,000 to $6,000.

Summary of provisions

Section 631(6) (a) of the Executive Law is amended to state that no finding of financial difficulty is required for a claim for an emergency award or an award less than $6,000.

Effect on existing law

Current law states that no finding of financial difficulty is required for a claim for an emergency award or an award less than $5,000.

Justification

Under current law, any compensation to a victim which approaches the maximum threshold award of $5,000 must be investigated to determine whether, but for the award, the claimant would suffer financial difficulty. According to Crime victims Board statistics, only 1 or 2 claims are denied annually for failure to establish financial difficulty. The requirement of such a finding requires additional paperwork on the part of the victim, places a greater burden on the family already suffering as a result of the crime, and prolongs the reimbursement process. In 1996, the Executive Law was amended to increase the burial expenses for which the Crime Victims Board could provide compensation to $6,000. In raising the maximum burial award, the Legislature acknowledged the financial cost which can accrue to families for burying homicide victims. As it now stands, every family seeking the maximum compensation for burial expenses must show financial difficulty simply because their claim exceeds $5,000. While the increase proposed by this bill would apply to all claims filed with the Board, it is anticipated that the greatest impact would be in death claims for burial expenses. This bill eliminates the additional paperwork and hassle to the families of victims by creating parity between the burial expenses and the threshold for providing compensation without a determination of financial difficulty.

Legislative history

03/14/07 REFERRED TO CRIME VICTIMS, CRIME AND CORRECTION 01/09/08 REFERRED TO CRIME VICTIMS, CRIME AND CORRECTION 04/07/09 REFERRED TO CRIME VICTIMS, CRIME AND CORRECTION 01/06/10 REFERRED TO CRIME VICTIMS, CRIME AND CORRECTION

Fiscal implications

Fiscal implications, if any, would be minimal. A claimant would, at most, receive an award of an additional $1,000

before the need to determine financial difficulty would come into play. When considered with the fact that only one or two claims are annually denied for lack of showing of financial difficulty, it is likely that this proposal would have no fiscal impact. The administrative cost to the Board of having claims specialists compile financial documentation in such claims would in all likelihood surpass any increase in awards.

Effective date

This act shall take effect immediately and shall apply to all claims pending before the board or submitted thereto on or after its effective date.