BILL NUMBER: S6810

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the estates, powers and trusts law, in relation to
creating an alternative method to compromising an award issued by the
September 11th Victim Compensation Fund ("VCF")

 
PURPOSE OR GENERAL IDEA OF BILL:

The proposed legislation would create an alternative simplified method
for the family of victims to settle and collect a VCF award that
consists entirely of non-economic losses.

 
SUMMARY OF PROVISIONS:

Section one amends section 5-4.6 of the Estates, Powers, and Trusts Law
which relates to the application to compromise an action.

Section two sets the effective date.
              

 
JUSTIFICATION:

Currently, under New York's wrongful death statute, an award issued by
the VCF is treated the same as any action for wrongful act, neglect or
default causing the death of a decedent. Once an award is issued by the
VCF, the personal representative must apply to the Surrogate's Court for
a court order allowing the compromise, collection, and distribution of
the award. The Surrogate's Court is responsible to ensure the adequacy
of the award and the proper allocation of the funds to the interested
parties.

This bill seeks to create a simplified alternative method for VCF awards
that consists solely of non-economic losses (i.e. emotional damages) to
be distributed to the family of 9/11 victims without unnecessary delay.
It also seeks to minimize the administrative burden on the family, VCF,
and the Surrogate's Court. The VCF issues a very detailed award break-
down and allocation of the award between economic loss and non-economic
loss. Non-economic losses are due to the estate of the decedent and
distributed pursuant to the decedent's will or the laws of intestacy, if
the decedent died without a will. Therefore where the award consists
entirely of non-economic losses, the personal representative should be
allowed to collect the award without a lengthy compromise proceeding. A
simplified method in lieu of a compromise proceeding can address the
issue of the adequacy of the award and protection of any distributee who
may be under a disability without the burdensome compromise process.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

If enacted, this proposed legislation would create administrative
savings in the VCF and the Surrogate's Court due to a simplified step in
the VCF claims process.

 
EFFECTIVE DATE:
Immediate