BILL NUMBER:S4913

TITLE OF BILL:  An act to amend the executive law, in relation to
increasing the threshold for proof of financial difficulty

Purpose of the Bill:

The purpose of this measure is to increase the threshold for proof of
financial difficulty from claim totals of $5,000 or more to claim totals
of $10,000 or more.

Summary of Provisions:

Section one of this measure amends the opening sentences of paragraph a
of subdivision 6 of section 632 of the Executive Law. The threshold for
proof of financial difficulty for claims is raised from claim totals of
$5,000 or more to claim totals of $10,000 or more.

Section two of this measure provides for the effective date.

Existing Law:

Under current law, the Office is required to make a determination of
financial difficulty in instances where claim expenses total $5,000 or
more.

              

Prior Legislative History:

This is a new bill.

Statement in Support:

The $5,000 threshold for proof of financial difficulty was established
pursuant to Chapter 400 of the laws of 1991. As the cost of medical care
and the general cost of living have steadily increased since this thres-
hold was established, this amount has remained unchanged for well over
two decades. The information required to establish financial difficulty
can be burdensome to an already traumatized claimant population. Addi-
tionally, the Office's analysis of the information adds to claims' proc-
essing time. The collecting and analyzing of this information is argu-
ably for marginal gain to the agency, as there are few, if any,
instances of the agency determining that financial difficulty has not
been met. Therefore, claimants must endure a cumbersome process of
collecting personal financial information that, in the end, will have
little, if any, bearing on the outcome of their claim or benefit to the
state.

While the Office understands the perception in requiring such proof, it
would be a great benefit to raise this threshold, thereby requiring such
analyses with less frequency.

Budget Implications:

It has been determined that these changes will result in minimal fiscal
impact. Compensation costs are estimated to increase by no more than
$400,000, while the fiscal impact on operational expenses of the Office
will decrease, due to an increased administrative efficiency. Victim
compensation expenses are funded through a combination of State (Crimi-
nal Justice Improvement Act or CJIA) and federal funding. Pursuant to
the federal (Victims of Crime Act or VOCA) grant received by the State
for such compensation, any increase to the overall compensation expenses
of the OVS will be offset by a subsequent increase in federal compen-
sation funding.

Local Impact:

None

Effective Date:

This act shall take effect immediately, and shall apply to all claims
filed on and after such date it shall become a law.