S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6592
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 27, 2023
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The executive law is amended by adding a new article 19-I
 to read as follows:
                               ARTICLE 19-I
                 NEW YORK COVID-19 CHILDREN'S FUND PROGRAM
 SECTION 535. DEFINITIONS.
         535-A. NEW YORK COVID-19 CHILDREN'S FUND PROGRAM BOARD.
         535-B. NEW YORK COVID-19 CHILDREN'S FUND PROGRAM.
   § 535. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "BOARD" SHALL MEAN THE NEW YORK COVID-19  CHILDREN'S  FUND  PROGRAM
 BOARD ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED THIRTY-FIVE-A OF THIS
 ARTICLE.
   2.  "PROGRAM" SHALL MEAN THE NEW YORK COVID-19 CHILDREN'S FUND PROGRAM
 ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED THIRTY-FIVE-B OF THIS ARTI-
 CLE.
   3. "FUND" SHALL MEAN THE NEW YORK COVID-19 CHILDREN'S FUND ESTABLISHED
 PURSUANT TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
   4. "ELIGIBLE CHILD" SHALL MEAN ANY CHILD WHO IS A  MINOR  RESIDENT  OF
 NEW  YORK  WHO  IS UNDER EIGHTEEN YEARS OF AGE, HAS NOT EMANCIPATED FROM
 THEIR PARENT, CUSTODIAN, OR LEGAL GUARDIAN, AND MEETS ONE OF THE FOLLOW-
 ING QUALIFICATIONS: (I) THEY RESIDE IN NEW YORK AND THEIR PARENT, CUSTO-
 DIAN, LEGAL GUARDIAN, OR RELATED ADULT HOUSEHOLD MEMBER, DIED DURING THE
 FEDERALLY DECLARED COVID-19 PUBLIC HEALTH EMERGENCY  AND  THE  CAUSE  OF
 DEATH IS LISTED AS COVID-19 ON THEIR DEATH CERTIFICATE OR THEY DIED AS A
 CONSEQUENCE  OF  HAVING LONG-TERM COVID-19 AND (II) THE ELIGIBLE CHILD'S
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11049-01-3
              

 S. 6592                             2
 
 FAMILY HOUSEHOLD HAS AN  ANNUAL  HOUSEHOLD  INCOME  OF  LESS  THAN  FIVE
 HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL.
   5. "HOUSEHOLD INCOME" SHALL MEAN THE SUM OF THE ADJUSTED GROSS INCOMES
 OF  THE  ELIGIBLE CHILD'S BIRTH PARENTS. SUCH GROSS INCOME AMOUNTS SHALL
 BE CALCULATED BASED ON INFORMATION FROM THE  MOST  RECENT  TAXABLE  YEAR
 AVAILABLE  AS  PROVIDED  AND CERTIFIED BY THE DEPARTMENT OF TAXATION AND
 FINANCE.
   6. "QUALIFIED EXPENSES" SHALL MEAN EXPENSES FOR THE EDUCATION  OF  THE
 ACCOUNT  HOLDER,  OWNERSHIP  OF  A HOME BY THE ACCOUNT HOLDER, AND COSTS
 ASSOCIATED WITH ESTABLISHING OR OTHERWISE BUILDING A BUSINESS.
   § 535-A. NEW YORK COVID-19 CHILDREN'S FUND PROGRAM BOARD. 1. (A) THERE
 IS HEREBY ESTABLISHED THE NEW  YORK  COVID-19  CHILDREN'S  FUND  PROGRAM
 BOARD TO ADMINISTER THE NEW YORK COVID-19 CHILDREN'S FUND PROGRAM ESTAB-
 LISHED  PURSUANT  TO SECTION FIVE HUNDRED THIRTY-FIVE-B OF THIS ARTICLE.
 SUCH BOARD SHALL CONSIST OF NINE MEMBERS,  AS  FOLLOWS:  (I)  THE  COMP-
 TROLLER,  OR  THEIR  DESIGNEE,  WHO  SHALL  SERVE AS THE CHAIR, (II) THE
 COMMISSIONER OF TAXATION AND  FINANCE,  OR  THEIR  DESIGNEE,  (III)  THE
 INSPECTOR  GENERAL, OR THEIR DESIGNEE, (IV) AN INDIVIDUAL WITH EXPERTISE
 IN POVERTY ALLEVIATION AND THE RACIAL WEALTH GAP APPOINTED BY THE TEMPO-
 RARY PRESIDENT OF THE SENATE, (V) AN INDIVIDUAL WITH  INVESTMENT  EXPER-
 TISE  APPOINTED  BY THE SPEAKER OF THE ASSEMBLY, (VI) AN INDIVIDUAL WITH
 EXPERTISE ON FINANCIAL EMPOWERMENT AND CONSUMER PROTECTION APPOINTED  BY
 THE GOVERNOR, (VII) A PUBLIC MEMBER WHO HAS EXPERIENCED CHILDHOOD POVER-
 TY  APPOINTED  BY  THE  GOVERNOR,  AND  (VIII)  TWO ADDITIONAL NONVOTING
 MEMBERS APPOINTED BY THE GOVERNOR.
   (B) THE COMPTROLLER SHALL, ON BEHALF OF THE BOARD, APPOINT  AN  EXECU-
 TIVE  DIRECTOR,  WHO  SHALL  NOT  BE A MEMBER OF THE BOARD AND WHO SHALL
 SERVE AT THE PLEASURE OF THE COMPTROLLER. THE COMPTROLLER  SHALL  DETER-
 MINE  THE DUTIES OF THE EXECUTIVE DIRECTOR AND OTHER STAFF, AS APPROPRI-
 ATE, AND SET THEIR COMPENSATION. THE BOARD MAY AUTHORIZE  THE  EXECUTIVE
 DIRECTOR  TO  ENTER INTO CONTRACTS ON BEHALF OF THE BOARD OR CONDUCT ANY
 BUSINESS NECESSARY FOR THE EFFICIENT OPERATION OF THE BOARD.
   (C) MEMBERS OF THE BOARD APPOINTED  BY  THE  GOVERNOR,  THE  TEMPORARY
 PRESIDENT  OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY SHALL SERVE AT
 THE PLEASURE OF THE APPOINTING AUTHORITY. ALL MEMBERS OF THE BOARD SHALL
 SERVE WITHOUT COMPENSATION. MEMBERS OF THE BOARD SHALL BE REIMBURSED FOR
 NECESSARY TRAVEL  EXPENSES  INCURRED  IN  CONNECTION  WITH  THEIR  BOARD
 DUTIES.   BOARD MEMBERS AND OTHER STAFF OF THE BOARD SHALL NOT DO ANY OF
 THE FOLLOWING:
   (I) DIRECTLY OR INDIRECTLY HAVE ANY INTEREST  IN  THE  MAKING  OF  ANY
 INVESTMENT  MADE  FOR  THE  PROGRAM, OR IN THE GAINS OR PROFITS ACCRUING
 FROM ANY INVESTMENT MADE FOR THE PROGRAM;
   (II) BORROW ANY FUNDS OR DEPOSITS OF THE FUND'S TRUST ACCOUNTS, OR USE
 THOSE FUNDS OR DEPOSITS IN ANY MANNER, FOR THEMSELVES OR AS AN AGENT  OR
 PARTNER OF OTHERS; OR
   (III)  BECOME  AN  ENDORSER,  SURETY, OR OBLIGOR ON INVESTMENTS BY THE
 BOARD.
   (D) THE BOARD AND STAFF, INCLUDING ANY CONTRACTED  ADMINISTRATORS  AND
 CONSULTANTS, SHALL DISCHARGE THEIR DUTIES AS FIDUCIARIES WITH RESPECT TO
 THE  FUND'S  TRUST ACCOUNTS SOLELY IN THE INTEREST OF THE PROGRAM ENROL-
 LEES AS FOLLOWS:
   (I) FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO PROGRAM ENROL-
 LEES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE PROGRAM; AND
   (II) BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE  UNDER
 THE CIRCUMSTANCES THEN PREVAILING THAT A PRUDENT PERSON ACTING IN A LIKE
 S. 6592                             3
 
 CAPACITY  AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
 ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS.
   (E)  THE  BOARD,  SUBJECT  TO  ITS AUTHORITY AND FIDUCIARY DUTY, SHALL
 ADMINISTER THE PROGRAM AND THE FUNDS APPROPRIATED  FOR  THE  PROGRAM  IN
 ALIGNMENT  WITH  THE  INTENT OF THE LEGISLATURE TO CREATE OPPORTUNITIES,
 ECONOMIC AUTONOMY, AND HOPE, AND TO PROMOTE WEALTH  AND  ASSET  BUILDING
 FOR  AN  ELIGIBLE  CHILD AND ELIGIBLE YOUTH TO ADDRESS NEW YORK'S RECORD
 LEVELS OF INEQUALITY.
   (F) TO ACHIEVE THE FUNCTIONS SPECIFIED  IN  THIS  SECTION,  THE  BOARD
 SHALL HAVE THE POWER AND AUTHORITY TO DO ALL OF THE FOLLOWING:
   (I)  MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
 THE PROGRAM;
   (II) ADOPT A SEAL AND CHANGE AND AMEND IT FROM TIME TO TIME;
   (III) CAUSE MONEYS IN  THE  FUND'S  TRUST  ACCOUNTS  TO  BE  HELD  AND
 INVESTED AND REINVESTED;
   (IV)  (1)  ACCEPT  ANY  GRANTS,  GIFTS, LEGISLATIVE APPROPRIATION, AND
 OTHER MONEYS FROM THE STATE,  ANY  UNIT  OF  FEDERAL,  STATE,  OR  LOCAL
 GOVERNMENT,  OR ANY OTHER PERSON, FIRM, PARTNERSHIP, PHILANTHROPIC ENTI-
 TY, OR CORPORATION FOR DEPOSIT TO THE FUND;
   (2) THE BOARD SHALL PROVIDE A WAY FOR GRANTS, GIFTS, APPROPRIATIONS OR
 OTHER MONEYS TO THE FUND TO BE MADE IN ANY AMOUNT AND WITH  THE  ABILITY
 TO  HAVE  THE  FUNDS  TARGETED  TO SPECIFIC SUBGROUPS, AS DEFINED BY THE
 ENTITY GIVING, GRANTING, OR APPROPRIATING THE FUNDS, PROVIDED THAT  THEY
 ARE NOT LIMITED IN SUCH A WAY THAT WOULD CONFLICT WITH THE INTENT OF THE
 LEGISLATURE IN ESTABLISHING THE PROGRAM;
   (V)  MAKE  PROVISIONS  FOR  THE PAYMENT OF COSTS OF ADMINISTRATION AND
 OPERATION OF THE PROGRAM;
   (VI) EMPLOY STAFF;
   (VII) RETAIN AND CONTRACT WITH PRIVATE FINANCIAL  INSTITUTIONS,  OTHER
 FINANCIAL  AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL, AUDI-
 TORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS, AS NECESSARY;
   (VIII) PROCURE INSURANCE AGAINST ANY LOSS IN CONNECTION WITH THE PROP-
 ERTY, ASSETS, OR ACTIVITIES OF THE TRUST;
   (IX) PROCURE INSURANCE INDEMNIFYING EACH  MEMBER  OF  THE  BOARD  FROM
 PERSONAL  LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
 AS A MEMBER OF THE BOARD;
   (X) CAUSE EXPENSES INCURRED  TO  INITIATE,  IMPLEMENT,  MAINTAIN,  AND
 ADMINISTER  THE  PROGRAM  TO  BE  PAID  FROM  DEPOSITS TO, OR INVESTMENT
 RETURNS OR ASSETS OF, THE PROGRAM OR ARRANGEMENTS ESTABLISHED UNDER  THE
 PROGRAM, TO THE EXTENT PERMITTED UNDER STATE AND FEDERAL LAW;
   (XI)  CARRY  OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM PURSUANT TO
 THIS CHAPTER AND EXERCISE ANY AND ALL OTHER POWERS  AS  APPROPRIATE  FOR
 THE  EFFECTUATION  OF  THE  PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS
 CHAPTER PERTAINING TO THE PROGRAM; AND
   (XII) ADOPT RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF  THIS
 ARTICLE.
   § 535-B. NEW YORK COVID-19 CHILDREN'S FUND PROGRAM. 1. THERE IS HEREBY
 ESTABLISHED  THE  NEW  YORK  COVID-19 CHILDREN'S FUND PROGRAM TO PROVIDE
 ASSISTANCE TO CHILDREN  WHOSE  PARENT,  CUSTODIAN,  LEGAL  GUARDIAN,  OR
 RELATED ADULT HOUSEHOLD MEMBER DIED AS A RESULT OF CONTRACTING COVID-19,
 REGARDLESS  OF  IMMIGRATION STATUS OF SUCH CHILDREN UTILIZING THE MONIES
 AVAILABLE IN THE NEW YORK COVID-19 CHILDREN'S FUND ESTABLISHED  PURSUANT
 TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
   2.  (A)  THE PROGRAM SHALL PROVIDE FOR THE DEPOSIT OF (I) ONE THOUSAND
 DOLLARS INTO AN INDIVIDUAL TRUST ACCOUNT IN THE FUND FOR  EACH  ELIGIBLE
 CHILD  WITHIN SIX MONTHS OF RECEIPT OF AN APPLICATION TO THE PROGRAM FOR
 S. 6592                             4
 
 SUCH CHILD, AND (II) ONE THOUSAND DOLLARS EACH YEAR THEREAFTER OF ELIGI-
 BILITY. MONIES WITHIN EACH TRUST ACCOUNT SHALL BE INVESTED IN  A  MANNER
 THAT  GENERATES  A  RATE  OF RETURN AT LEAST EQUAL TO THE RATE OF RETURN
 EARNED  ON  A THIRTY-YEAR TREASURY BOND. THE BOARD, IN CONSULTATION WITH
 THE DEPARTMENT OF HEALTH,  SHALL  PROMULGATE  APPLICATION  FORMS  TO  BE
 SUBMITTED  TO  THE  COMPTROLLER  TO DETERMINE THE ELIGIBILITY OF A CHILD
 WHOSE PARENT, CUSTODIAN, LEGAL  GUARDIAN,  OR  RELATED  ADULT  HOUSEHOLD
 MEMBER DIED AS A RESULT OF CONTRACTING COVID-19, REGARDLESS OF THE IMMI-
 GRATION STATUS OF SUCH CHILD.
   (B) MONIES IN EACH ACCOUNT SHALL BE IDENTIFIED BY A UNIQUE IDENTIFICA-
 TION NUMBER AND MAY ONLY BE ACCESSED BY THE ELIGIBLE CHILD FOR WHICH THE
 ACCOUNT  WAS  ORIGINALLY  CREATED.  IN  ORDER  TO ACCESS SUCH FUNDS, THE
 ELIGIBLE CHILD SHALL BE AT LEAST EIGHTEEN YEARS OLD. SUCH  MONIES  SHALL
 ONLY BE UTILIZED FOR QUALIFIED EXPENSES.
   3.  (A)  WITHIN  ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 SECTION, THE BOARD SHALL CONVENE AN ADVISORY WORKGROUP TO WORK IN  COOR-
 DINATION WITH THE BOARD ON THE PROGRAM DESIGN, INCLUDING, BUT NOT LIMIT-
 ED TO, DATA SHARING WITH RELEVANT GOVERNMENTAL AGENCIES AND DEPARTMENTS,
 OUTREACH  TO  FAMILIES  OF  AN  ELIGIBLE  CHILD AND TO ELIGIBLE CHILDREN
 DIRECTLY, AND THE PROCESS FOR PROGRAM ENROLLMENT AND CONTINUOUS MEASURE-
 MENT OF OUTCOMES OF THE INDIVIDUAL TRUST ACCOUNTS  ESTABLISHED  PURSUANT
 TO SUBDIVISION TWO OF THIS SECTION.
   (B) THE ADVISORY WORKGROUP SHALL INVITE PARTICIPATION IN THE WORKGROUP
 FROM THE FOLLOWING ENTITIES:
   (I)  REPRESENTATIVES  FROM THE OFFICE OF CHILDREN AND FAMILY SERVICES,
 THE DEPARTMENT OF SOCIAL SERVICES, THE DEPARTMENT OF PUBLIC  HEALTH  AND
 THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION; AND
   (II)  COMMUNITY  STAKEHOLDERS WITH KNOWLEDGE AND EXPERIENCE IN POVERTY
 ALLEVIATION, YOUTH DEVELOPMENT, ACCESS TO BANKING FOR UNDERBANKED  INDI-
 VIDUALS,  ASSET  BUILDING,  RACE-WEALTH  GAP,  CONSUMER PROTECTIONS, AND
 WEALTH COACHING.
   (C) THE WORKGROUP SHALL SPECIFICALLY FOCUS ON, BUT NEED NOT BE LIMITED
 TO, ALL OF THE FOLLOWING:
   (I) WHO IS INCLUDED AS AN "ELIGIBLE CHILD" UNDER THIS ARTICLE, INCLUD-
 ING THE ABILITY TO INCLUDE INDIVIDUALS WITHOUT SOCIAL  SECURITY  NUMBERS
 OR  INDIVIDUAL  TAX  IDENTIFICATION  NUMBERS, THE RESPONSIBLE AGENCY FOR
 DETERMINING ELIGIBILITY, AND ESTIMATES OF LIKELY  PROGRAM  ENROLLEES  BY
 YEAR;
   (II)  NECESSARY  AVAILABLE  DATA  AND  DATA  SHARING AGREEMENTS NEEDED
 BETWEEN GOVERNMENT ENTITIES TO MEET THE REQUIREMENTS OF THIS ARTICLE;
   (III) APPLICATION OF APPROPRIATE PRIVACY PROTECTIONS UNDER  STATE  AND
 FEDERAL  LAW  IN  THE  IDENTIFICATION  OF,  AND OUTREACH TO, AN ELIGIBLE
 CHILD;
   (IV) ACCEPTABLE INVESTMENT PRODUCTS, STRATEGIES, RISK GUIDELINES,  AND
 MANAGEMENT  REQUIREMENTS TO ENSURE A BALANCE BETWEEN SAFETY OF THE PRIN-
 CIPAL, LIQUIDITY, AND EXPECTED YIELD OR RETURN FOR MONEYS OF THE FUND;
   (V) ACTUARIAL ESTIMATES OF THE AMOUNT OF INVESTMENT PER PROGRAM ENROL-
 LEE AND THE RANGE OF FINANCIAL OUTCOMES;
   (VI) EFFECTIVE OUTREACH STRATEGIES TO ENSURE ACCOUNTS ARE  ESTABLISHED
 FOR  THE  MAXIMUM  AMOUNT  OF  CHILDREN WHO MAY BE AN ELIGIBLE CHILD AND
 MONEYS ARE DRAWN DOWN WHEN AVAILABLE;
   (VII) DETERMINATION OF NECESSARY ADMINISTRATIVE  COMPONENTS,  SUCH  AS
 INFORMATION  TECHNOLOGY  SERVICES, RECORDKEEPING, AND OTHER SERVICES, AS
 WELL AS THE ABILITY TO USE STATE AGENCY RESOURCES OR THE NEED FOR THIRD-
 PARTY ADMINISTRATORS;
 S. 6592                             5
 
   (VIII) ADDITIONAL AREAS DETERMINED AS CRITICAL TO  THE  IMPLEMENTATION
 OF THE PROGRAM, AS IDENTIFIED DURING THE COURSE OF THE WORKGROUP; AND
   (IX) TIMELINES FOR IMPLEMENTATION OF THIS ARTICLE.
   (D)  THE  ADVISORY  WORKGROUP  MAY CONSULT WITH ADDITIONAL EXPERTS, AS
 NECESSARY, TO INFORM THEIR RECOMMENDATIONS.
   4. ON OR BEFORE THE FIRST OF FEBRUARY NEXT  SUCCEEDING  THE  EFFECTIVE
 DATE OF THIS SECTION, THE BOARD SHALL SUBMIT A REPORT TO THE COMPTROLLER
 AND THE LEGISLATURE, THAT INCLUDES, AT A MINIMUM, RECOMMENDATIONS OF THE
 BOARD ON ALL OF THE FOLLOWING:
   (A)  A DETAILED PLAN FOR IMPLEMENTING THE PROGRAM AND ESTABLISHING AND
 MAINTAINING THE INDIVIDUAL TRUST ACCOUNTS IN THE FUND  FOR  AN  ELIGIBLE
 CHILD  THAT  MAXIMIZES  THEIR PARTICIPATION AND THEIR AUTONOMOUS WEALTH-
 BUILDING CAPACITY;
   (B) THE ANTICIPATED NUMBER OF INDIVIDUAL TRUST ACCOUNTS TO  BE  OPENED
 AND INITIAL DEPOSIT AMOUNTS;
   (C)  A  DESCRIPTION OF THE EFFORTS TO BE USED TO SOLICIT PHILANTHROPIC
 OR NONSTATE MONEYS TO SUPPORT THE PROGRAM; AND
   (D) FURTHER STATUTORY AND BUDGET ALLOCATIONS.
   § 2. The state finance law is amended by adding a new section 78-c  to
 read as follows:
   §  78-C.  NEW YORK COVID-19 CHILDREN'S FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF  THE  COMPTROLLER,  THE  COMMISSIONER  OF
 TAXATION  AND  FINANCE AND THE COMMISSIONER OF HEALTH A FUND TO BE KNOWN
 AS THE NEW YORK COVID-19 CHILDREN'S FUND. SUCH FUND  SHALL  BE  UTILIZED
 FOR THE PURPOSES OF THE NEW YORK COVID-19 CHILDREN'S FUND PROGRAM PURSU-
 ANT TO THE PROVISIONS OF SECTION FIVE HUNDRED THIRTY-FIVE-B OF THE EXEC-
 UTIVE LAW.
   2.  THE  NEW  YORK  COVID-19  CHILDREN'S  FUND SHALL CONSIST OF MONEYS
 TRANSFERRED TO THE FUND BY THE COMPTROLLER FROM THE GENERAL FUND AND ALL
 OTHER MONEYS APPROPRIATED, CREDITED, OR  TRANSFERRED  THERETO  FROM  ANY
 OTHER  FUND  OR  SOURCE  PURSUANT TO LAW. NOTHING CONTAINED HEREIN SHALL
 PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3.  (A)  THE  COMPTROLLER  MAY  INVEST MONEYS IN THE FUND THAT ARE NOT
 REQUIRED FOR CURRENT NEEDS OF THE FUND IN THE ELIGIBLE SECURITIES PURSU-
 ANT TO THE PROVISIONS OF THIS CHAPTER AND  SUBDIVISION  TWO  OF  SECTION
 FIVE HUNDRED THIRTY-FIVE-B OF THE EXECUTIVE LAW.
   (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL INTEREST
 OR OTHER INCREMENT RESULTING FROM THE INVESTMENT OR DEPOSIT OF MONEYS OF
 THE FUND SHALL BE DEPOSITED IN THE FUND.
   4.  (A)  OF THE TOTAL MONEYS OF THE FUND, FIVE PERCENT SHALL BE AVAIL-
 ABLE TO ADMINISTER THE NEW YORK COVID-19 CHILDREN'S FUND PROGRAM, PURSU-
 ANT TO THE PROVISIONS OF SECTION FIVE HUNDRED THIRTY-FIVE-B OF THE EXEC-
 UTIVE LAW.
   (B) THE NEW YORK COVID-19 CHILDREN'S FUND PROGRAM  BOARD,  ESTABLISHED
 PURSUANT  TO  SECTION  FIVE  HUNDRED THIRTY-FIVE-A OF THE EXECUTIVE LAW,
 SHALL SUBMIT A WRITTEN ANNUAL EXPENDITURE PLAN DETAILING  PROPOSED  USES
 OF  FUNDING  TO THE DIVISION OF THE BUDGET, THE SENATE FINANCE COMMITTEE
 AND THE ASSEMBLY WAYS AND MEANS COMMITTEE  BY  OCTOBER  FIRST  OF  EVERY
 YEAR.  TO  THE  EXTENT  THE  BOARD'S  ADMINISTRATIVE  COSTS  WILL OR ARE
 PROJECTED TO EXCEED FIVE PERCENT,  THE  BOARD  SHALL  SUBMIT  A  WRITTEN
 REQUEST,  IN ADDITION TO THE ANNUAL EXPENDITURE PLAN, FOR THE RELEASE OF
 ADDITIONAL FUNDING FOR ADMINISTRATIVE COSTS AND THE NECESSITY TO  EXCEED
 FIVE PERCENT TO THE DIVISION OF THE BUDGET, THE SENATE FINANCE COMMITTEE
 AND  THE  ASSEMBLY WAYS AND MEANS COMMITTEE. THE COMPTROLLER MAY PROVIDE
 S. 6592                             6
 
 FUNDS FOR ADMINISTRATION OF THE PROGRAM THAT EXCEED  FIVE  PERCENT,  NOT
 SOONER THAN THIRTY DAYS AFTER NOTIFYING, IN WRITING, THE DIVISION OF THE
 BUDGET,  THE  SENATE  FINANCE  COMMITTEE AND THE ASSEMBLY WAYS AND MEANS
 COMMITTEE,  OR ANY LESSER TIME DETERMINED BY THE DIRECTOR OF THE BUDGET,
 OR THE DIRECTOR'S DESIGNEE.
   5. (A) ALL ASSETS OF THE FUND AND MONEYS ALLOCATED TO INDIVIDUAL TRUST
 ACCOUNTS ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION FIVE HUNDRED
 THIRTY-FIVE-B OF THE EXECUTIVE LAW SHALL BE CONSIDERED TO  BE  OWNED  BY
 THE  STATE  UNTIL  AN  ELIGIBLE  CHILD WITHDRAWS OR TRANSFERS MONEY FROM
 THEIR INDIVIDUAL TRUST ACCOUNT.
   (B) TO THE EXTENT ALLOWED UNDER  FEDERAL  LAW,  BECAUSE  IT  SHALL  BE
 CONSIDERED  AN  ASSET  OF THE STATE UNTIL WITHDRAWN OR TRANSFERRED BY AN
 ELIGIBLE CHILD, ALL OF  THE  FOLLOWING  APPLY  TO  FUNDS  DEPOSITED  AND
 INVESTMENT RETURNS ACCRUED IN AN INDIVIDUAL TRUST ACCOUNT OF THE FUND:
   (I) IT IS NONTRANSFERABLE TO ANY PERSON OTHER THAN THE ELIGIBLE CHILD,
 AND ONLY AS PERMITTED PURSUANT TO THIS CHAPTER;
   (II) IT SHALL NOT BE PLEDGED AS COLLATERAL FOR ANY LOAN; AND
   (III) IT MAY BE SUBJECT TO A LIEN.
   6.  MONIES OF THE FUND SHALL BE EXPENDED BY THE COMPTROLLER SOLELY FOR
 THE PURPOSE OF ADMINISTERING THE PROVISIONS OF THIS SECTION AND THE  NEW
 YORK COVID-19 CHILDREN'S FUND PROGRAM.
   7.  AS  USED IN THIS SECTION, THE TERM "ELIGIBLE CHILD" SHALL HAVE THE
 SAME MEANING AS SUCH TERM IS DEFINED IN SECTION FIVE HUNDRED THIRTY-FIVE
 OF THE EXECUTIVE LAW.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.