A08298 Summary:

BILL NOA08298B
 
SAME ASSAME AS S02096-D
 
SPONSORHunter
 
COSPNSR
 
MLTSPNSR
 
Add §216-a, Art 14 §§400 - 405, Mil L; add §82, St Fin L; amd §5205, CPLR; amd §§612 & 658, Tax L; amd §190, Exec L
 
Establishes the "New York's Own combat veterans healthcare choice program act" to establish tax free savings accounts to pay the healthcare costs of combat veterans on active duty during Operation Enduring Freedom or Operation Iraqi Freedom, until covered by the federal government; and directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.
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A08298 Actions:

BILL NOA08298B
 
06/06/2017referred to ways and means
06/15/2017amend and recommit to ways and means
06/15/2017print number 8298a
01/03/2018referred to ways and means
01/31/2018amend and recommit to ways and means
01/31/2018print number 8298b
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A08298 Committee Votes:

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A08298 Floor Votes:

There are no votes for this bill in this legislative session.
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A08298 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8298--B
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 6, 2017
                                       ___________
 
        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on  Ways  and  Means  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee --  recommitted
          to the Committee on Ways and Means in accordance with Assembly Rule 3,
          sec.  2  --  committee  discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee
 
        AN ACT to amend the military law, the state finance law, the civil prac-
          tice law and rules, the tax law and the executive law, in relation  to
          establishing  the  "New  York's  Own combat veterans healthcare choice
          program act"
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York's Own combat veterans healthcare choice program act".
     3    § 2. The military law is amended by adding a new section 216-a to read
     4  as follows:
     5    § 216-a. Medical care when injured or disabled in combat zone.  1. Any
     6  New York resident member of the organized militia  who  shall,  when  on
     7  active  duty in a combat zone, designated by the president of the United
     8  States during Operation Enduring Freedom or Operation Iraqi Freedom, for
     9  three hundred sixty days or more on orders issued by the  governor,  the
    10  commanding  general  of the New York army national guard, the commanding
    11  officer of the New York air national guard or the commanding officer  of
    12  the naval militia, receive any wound or injury, or incur or contract any
    13  disability  or  disease,  by  reason  of such duty, or who shall without
    14  fault or neglect on his  or  her  part  be  wounded  or  disabled  while
    15  performing  any lawfully ordered duty while in such a combat zone, which
    16  shall incapacitate him or her, and who is unable to  receive  timely  or
    17  adequate  healthcare  services  from  the federal Department of Veterans
    18  Affairs within ninety days of making application for such services shall
    19  receive the payment into such service member's New York combat  veterans
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02315-11-8

        A. 8298--B                          2
 
     1  healthcare  choice  account  established pursuant to article fourteen of
     2  this chapter for care and medical treatment  if  authority  therefor  is
     3  granted  by  the  adjutant  general, expenses for such  care and medical
     4  attendance  as are necessary for the appropriate treatment of the wound,
     5  injury, disease or disability may be  paid  from  the  New  York  combat
     6  veterans  healthcare  choice  account as provided in article fourteen of
     7  this chapter until treatment is provided by the federal Veterans  Admin-
     8  istration,  or the incapacity resulting from such wound, injury, disease
     9  or disability cannot be materially improved by further  care  or  treat-
    10  ment.  The  determination of whether such injury or disease was incurred
    11  while performing such lawfully ordered active duty  in  a  combat  zone,
    12  designated by the president of the United States during Operation Endur-
    13  ing Freedom or Operation Iraqi Freedom, shall be in accordance with this
    14  section and such regulations as may be prescribed by the adjutant gener-
    15  al.
    16    2.  If  care  for  such  a  service member is approved by the adjutant
    17  general and the service member shall have  created  a  New  York  combat
    18  veterans  healthcare  choice account in accordance with article fourteen
    19  of this chapter, the state shall make a payment of five thousand dollars
    20  into such service member's combat veterans  healthcare  choice  account.
    21  Such payment shall not exceed five thousand dollars in any calendar year
    22  and  shall  be  discontinued upon the service member receiving care from
    23  the federal Department of Veterans Affairs for the injuries or disabili-
    24  ties sustained while in qualified state service.
    25    3. None of the benefits provided by subdivision one  of  this  section
    26  shall  be  paid or allowed unless a claim therefor has been presented to
    27  the adjutant general within three years after the date when such  wound,
    28  injury,  disease or disability was incurred, or from the date of discov-
    29  ery of such wound, injury, disease or disability.  None of the  benefits
    30  provided  by subdivision one of this section shall be paid or allowed by
    31  the state for any period during which such member of the organized mili-
    32  tia is entitled to receive the same as a charge against federal funds.
    33    4. a. Where a claim is made under this section  the  adjutant  general
    34  will  make a determination as to whether valid application or attempt to
    35  schedule an appointment to file an application for care was made to  the
    36  federal  Veterans  Administration  and  whether  ninety  days shall have
    37  passed since such application or attempt was made. The adjutant  general
    38  may cause examinations of the claimant to be made from time to time by a
    39  physician, surgeon or dentist designated for the purpose by the adjutant
    40  general,  and he or she may direct the removal of a claimant to, and his
    41  or her treatment in, a hospital designated by the adjutant general,  and
    42  if  the  claimant refuses to permit any such examination or if he or she
    43  refuses to go to such hospital or to follow the advice given  or  treat-
    44  ment  prescribed for him or her therein, he or she shall thereby forfeit
    45  and be barred from all right  to  any  claim  or  allowance  under  this
    46  section.
    47    b.  The  adjutant general may appoint a medical examiner or a board of
    48  three officers, at least one of whom shall  be  a  medical  officer,  to
    49  inquire  into  the merits of any claim presented under this section, and
    50  to recommend the amount or amounts, if any, to be paid or allowed  under
    51  this  section, or he or she may, in his or her discretion, determine any
    52  claim without appointing a medical examiner or board and fix the  amount
    53  to  be  paid  or  allowed  under  this section. If no medical officer is
    54  available, such medical examiner or medical officer on such board may be
    55  a civilian physician, surgeon or dentist.

        A. 8298--B                          3
 
     1    c. A medical examiner or board appointed under this section shall have
     2  the same power to take evidence, administer oaths, issue  subpoenas  and
     3  compel  witnesses to attend and testify and to produce books and papers,
     4  and to punish their failure to do so as is possessed by military courts.
     5    d.  The  findings and recommendations of the medical examiner or board
     6  shall  be  submitted  to  the  adjutant  general  who  may  return   the
     7  proceedings  to such examiner or board for reconsideration or for taking
     8  further testimony and who shall approve or disapprove the claim and  fix
     9  the amount, if any, to be paid or allowed under this section. The amount
    10  so  fixed  by the adjutant general shall be a charge against and be paid
    11  in the manner provided by this section, by the state.
    12    § 3. The military law is amended by adding a new article 14 to read as
    13  follows:
    14                                 ARTICLE 14
    15          NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM
    16  Section 400. Program established.
    17          401. Purpose.
    18          402. Definitions.
    19          403. Functions of the comptroller and the division.
    20          404. Program requirements; New York combat  veterans  healthcare
    21                 choice account.
    22          405.  Program  limitations;  New York combat veterans healthcare
    23                 choice account.
    24    § 400. Program established.  There is hereby established the New  York
    25  combat  veterans  healthcare  choice  program  and such program shall be
    26  known and may be cited as the "New York's Own combat veterans healthcare
    27  choice program".
    28    § 401. Purpose. The purposes of the New York combat  veterans  health-
    29  care  choice  program  are  to  authorize  the establishment of veterans
    30  healthcare choice accounts and provide guidelines for the maintenance of
    31  such accounts to:
    32    1. Enable resident veteran members of the organized  militia  of  this
    33  state who were on active duty in a combat zone, designated by the presi-
    34  dent of the United States during Operation Enduring Freedom or Operation
    35  Iraqi  Freedom,  to obtain healthcare from the provider of their choice,
    36  with funds from a New York combat  veterans  healthcare  choice  account
    37  funded by the state and the service member in accordance with this arti-
    38  cle,  when  after  ninety days of making application to or attempting to
    39  schedule an appointment with the  federal  Veterans  Administration  for
    40  such  care,  the  service  member is unable to secure timely or adequate
    41  healthcare services for injuries and disabilities sustained in the  line
    42  of  active duty in such a combat zone, whenever ordered into such combat
    43  zone for three hundred sixty days or more by the governor, the  command-
    44  ing  general of the New York army national guard, the commanding officer
    45  of the New York air national guard or  the  commanding  officer  of  the
    46  naval militia;
    47    2. Provide funding from the state for New York combat veterans health-
    48  care  choice  accounts  in  an amount of up to five thousand dollars per
    49  calendar year for a period not to exceed three years, when in accordance
    50  with this article, a qualified state resident combat veteran  is  unable
    51  to  secure  healthcare services within ninety days of making application
    52  or scheduling an appointment  to  make  such  an  application  for  such
    53  services from the federal Veterans Administration; and
    54    3.  To  create  a  state  personal  income  tax  deduction for amounts
    55  contributed by qualified resident combat veterans to a New  York  combat

        A. 8298--B                          4

     1  veterans healthcare choice account in an amount not to exceed five thou-
     2  sand dollars per calendar year as provided in this article.
     3    § 402. Definitions. As used in this article, the following terms shall
     4  have the following meanings:
     5    1.  "Account"  or "New York combat veterans healthcare choice account"
     6  shall mean an individual savings account established in accordance  with
     7  the provisions of this article.
     8    2.  "Account  owner"  shall  mean  a person who enters into a New York
     9  combat veterans healthcare choice  account  agreement  pursuant  to  the
    10  provisions  of  this article, including a person who enters into such an
    11  agreement as a fiduciary or agent on behalf of a trust, estate, partner-
    12  ship, association, company or corporation. The account owner may also be
    13  the designated beneficiary of the account.
    14    3. "Designated beneficiary" shall mean, with respect to an account  or
    15  accounts,  the  individual designated as the individual whose healthcare
    16  expenses are expected to be paid from the account or accounts.
    17    4. "Financial organization" shall mean an organization  authorized  to
    18  do  business in the state of New York and (a) is an authorized fiduciary
    19  to act as a trustee pursuant to the provisions of  an  Act  of  Congress
    20  entitled  "Employee  Retirement  Income  Security  Act  of 1974" as such
    21  provisions may be amended from time to time, or  an  insurance  company;
    22  and  (b)(i)  is  licensed  or  chartered  by the department of financial
    23  services, (ii) is chartered by an  agency  of  the  federal  government,
    24  (iii)  is  subject  to the jurisdiction and regulation of the securities
    25  and exchange commission of the federal government, or (iv) is any  other
    26  entity  otherwise  authorized  to  act  in  this state as a trustee of a
    27  health savings account pursuant to the provisions of an act of  congress
    28  entitled the "Medicare Prescription Drug, Improvement, and Modernization
    29  Act", as such provisions may be amended from time to time.
    30    5.  "Eligible  healthcare  institution"  shall  mean  any  institution
    31  licensed, certified or authorized by the  state  to  provide  healthcare
    32  services.
    33    6. "Member of family" shall mean a family member as defined in section
    34  529 of the Internal Revenue Code of 1986, as amended.
    35    7. "Program" shall mean the New York combat veterans healthcare choice
    36  account program established pursuant to this article.
    37    8.  "Qualified  healthcare  expenses"  shall  mean any medical expense
    38  deductible on federal income taxes.
    39    9. "Qualified state service" shall mean active duty  service  rendered
    40  while  being  ordered into a combat zone, designated by the president of
    41  the United States during Operation Enduring Freedom or  Operation  Iraqi
    42  Freedom,  for  three  hundred  sixty  days  or more by the governor, the
    43  commanding general of the New York army national guard,  the  commanding
    44  officer  of the New York air national guard or the commanding officer of
    45  the naval militia.
    46    10. "Qualified withdrawal" shall mean a withdrawal from an account  to
    47  pay  the qualified healthcare expenses of a service member or designated
    48  beneficiary of an account at an eligible healthcare institution.
    49    11. "Nonqualified withdrawal" shall mean a withdrawal from an  account
    50  which is not:
    51    a. a qualified withdrawal; or
    52    b.  a  withdrawal made as the result of the death or disability of the
    53  designated beneficiary of the account.
    54    12. "Division" shall mean the division of military and naval affairs.
    55    13. "Comptroller" shall mean the state comptroller.

        A. 8298--B                          5
 
     1    14. "Management contract" shall mean  the  contract  executed  by  the
     2  comptroller and a financial organization selected to act as a depository
     3  and manager of the program.
     4    15.  "New  York  combat  veterans healthcare choice account agreement"
     5  shall mean an agreement between the comptroller or a financial organiza-
     6  tion and an account owner.
     7    16. "Program manager" shall mean a financial organization selected  by
     8  the comptroller to act as depository and manager of the program.
     9    §  403.  Functions  of  the comptroller and the division. 1. The comp-
    10  troller and the division shall implement the program under the terms and
    11  conditions established by this article and a memorandum of understanding
    12  relating to any terms or conditions not otherwise expressly provided for
    13  in this article.
    14    2. In furtherance of such implementation the memorandum of understand-
    15  ing shall address the authority and responsibility  of  the  comptroller
    16  and the division to:
    17    a.  develop  and implement the program in a manner consistent with the
    18  provisions of this article through rules and regulations established  in
    19  accordance with the state administrative procedure act;
    20    b.  engage the services of consultants on a contract basis for render-
    21  ing professional and technical assistance and advice;
    22    c. seek rulings and other guidance from the United  States  Department
    23  of Treasury and the Internal Revenue Service relating to the program;
    24    d.  make  changes  to the program required for the participants in the
    25  program to obtain the federal income tax benefits or treatment  provided
    26  for health savings accounts;
    27    e.  charge, impose and collect administrative fees and service charges
    28  in connection with any agreement, contract or  transaction  relating  to
    29  the program;
    30    f. develop marketing plans and promotion material;
    31    g.  establish  the methods by which the funds held in such accounts be
    32  dispersed;
    33    h. establish the method by which funds shall be allocated to  pay  for
    34  administrative costs; and
    35    i.  do  all  things  necessary and proper to carry out the purposes of
    36  this article.
    37    § 404. Program  requirements;  New  York  combat  veterans  healthcare
    38  choice  account.  1. New York combat veterans healthcare choice accounts
    39  established pursuant to the provisions of this article shall be governed
    40  by the provisions of this section.
    41    2. A New York combat veterans healthcare choice account may be  opened
    42  by any person who desires to save money for the payment of the qualified
    43  healthcare  expenses of the designated beneficiary. An account owner may
    44  designate another qualified service member as  successor  owner  of  the
    45  account  in  the  event of the death of the original account owner. Such
    46  person who opens an account or any successor owner shall  be  considered
    47  the account owner.
    48    a.  An application for such account shall be in the form prescribed by
    49  the program and contain the following:
    50    (i) the name, address and social security number or employer identifi-
    51  cation number of the account owner;
    52    (ii) the designation of a designated beneficiary;
    53    (iii) the name, address, and social security number of the  designated
    54  beneficiary; and
    55    (iv) such other information as the program may require.

        A. 8298--B                          6
 
     1    b.  The  comptroller  and the division may establish a nominal fee for
     2  such application.
     3    3.  Any person, including the account owner, may make contributions to
     4  the account after the account is opened.
     5    4. Contributions to accounts may be made only in cash.
     6    5. An account owner may make a qualified withdrawal of all or part  of
     7  the  balance from an account on sixty days notice or such shorter period
     8  as may be authorized under rules governing the program. Such rules shall
     9  include provisions that will generally enable the  determination  as  to
    10  whether  a  withdrawal is a nonqualified withdrawal or a qualified with-
    11  drawal.
    12    6. An account owner  may  change  the  designated  beneficiary  of  an
    13  account  to  a service member who is a member of the family of the prior
    14  designated beneficiary in accordance with procedures established by  the
    15  memorandum  of  understanding pursuant to the provisions of section four
    16  hundred three of this article.
    17    7. The program shall provide separate accounting for  each  designated
    18  beneficiary.
    19    8.  No account owner or designated beneficiary of any account shall be
    20  permitted to direct the investment of any contributions to an account or
    21  the earnings thereon more than two times in any calendar year.
    22    9. Neither an account owner nor a designated beneficiary  may  use  an
    23  interest in an account as security for a loan. Any pledge of an interest
    24  in an account shall be of no force and effect.
    25    10.  The  comptroller shall promulgate rules or regulations to prevent
    26  contributions on behalf of a designated  beneficiary  in  excess  of  an
    27  amount  that  would cause the aggregate account balance for all accounts
    28  for a designated beneficiary to exceed a  maximum  account  balance,  as
    29  established from time to time by the comptroller and the division on the
    30  basis  of  healthcare  costs  in  the state, with adequate safeguards to
    31  prevent more contributions than necessary to provide for  the  qualified
    32  healthcare costs of the beneficiary, as required to maintain the program
    33  as a "qualified health savings program" pursuant to federal law.
    34    11.  a. If there is any distribution from an account to any individual
    35  or for the benefit of  any  individual  during  a  calendar  year,  such
    36  distribution  shall  be reported to the Internal Revenue Service and the
    37  account owner, the designated beneficiary, or  the  distributee  to  the
    38  extent required by federal law or regulation.
    39    b.  Statements  shall  be provided to each account owner at least once
    40  each year within sixty days after the end of the twelve month period  to
    41  which  they  relate. The statement shall identify the contributions made
    42  during a preceding twelve month period, the total contributions made  to
    43  the  account  through the end of the period, the value of the account at
    44  the end of such period, distributions made during such  period  and  any
    45  other  information  that the comptroller shall require to be reported to
    46  the account owner.
    47    c. Statements and information relating to accounts shall  be  prepared
    48  and filed to the extent required by federal and state tax law.
    49    12.  a.  A  local  government  or  organization  described  in section
    50  501(c)(3) of the Internal Revenue Code of 1986, as amended, may open and
    51  become the account owner of an  account  to  fund  qualified  healthcare
    52  expenses  for  persons  whose identity will be determined upon disburse-
    53  ment.
    54    b. In the case of any account opened pursuant to paragraph a  of  this
    55  subdivision the requirement set forth in subdivision two of this section
    56  that  a  designated  beneficiary be designated when an account is opened

        A. 8298--B                          7
 
     1  shall not apply and each individual who receives  an  interest  in  such
     2  account  as  a  qualified healthcare expense grant shall be treated as a
     3  designated beneficiary with respect to such interest.
     4    13.  An annual fee may be imposed upon the account owner for the main-
     5  tenance of the account.
     6    14. The program shall disclose the following information in writing to
     7  each account owner and prospective account owner of a  New  York  combat
     8  veterans healthcare choice account:
     9    a.  the terms and conditions for purchasing a New York combat veterans
    10  healthcare choice account;
    11    b. any restrictions on the substitution of beneficiaries;
    12    c. the person or entity entitled to  terminate  the  New  York  combat
    13  veterans healthcare choice account agreement;
    14    d.  the period of time during which a beneficiary may receive benefits
    15  under the New York combat veterans healthcare choice account agreement;
    16    e. the terms and  conditions  under  which  money  may  be  wholly  or
    17  partially withdrawn from the program, including, but not limited to, any
    18  reasonable charges and fees that may be imposed for withdrawal;
    19    f.  the probable tax consequences associated with contributions to and
    20  distributions from accounts; and
    21    g. all other rights and obligations pursuant to New York combat veter-
    22  ans healthcare choice account agreements, and any  other  terms,  condi-
    23  tions,  and  provisions deemed necessary and appropriate by the terms of
    24  the memorandum of understanding entered into pursuant  to  section  four
    25  hundred three of this article.
    26    15.  New  York  combat  veterans  healthcare choice account agreements
    27  shall be subject to section  fourteen-c  of  the  banking  law  and  the
    28  "truth-in-savings" regulations promulgated thereunder.
    29    16. Nothing in this article or in any New York combat veterans health-
    30  care  choice  account  agreement  entered  into pursuant to this article
    31  shall be construed as a guarantee by the state or any healthcare provid-
    32  er that a beneficiary will be admitted to an eligible healthcare  insti-
    33  tution, or, upon admission to an eligible healthcare institution will be
    34  permitted to remain in such eligible healthcare institution.
    35    § 405. Program limitations; New York combat veterans healthcare choice
    36  account. 1. Nothing in this article shall be construed to:
    37    a.  give  any designated beneficiary any rights or legal interest with
    38  respect to an account unless the designated beneficiary is  the  account
    39  owner;
    40    b.  guarantee  that  a  designated  beneficiary will be admitted to an
    41  eligible healthcare institution;
    42    c. create state residency for an individual merely because  the  indi-
    43  vidual is a designated beneficiary; or
    44    d. guarantee that amounts saved pursuant to the program will be suffi-
    45  cient to cover the qualified healthcare expenses of a designated benefi-
    46  ciary.
    47    2.  a.  Nothing in this article shall create or be construed to create
    48  any obligation of the comptroller, the state, or any agency  or  instru-
    49  mentality of the state to guarantee for the benefit of any account owner
    50  or designated beneficiary with respect to:
    51    (i) the rate of interest or other return on any account; and
    52    (ii) the payment of interest or other return on any account.
    53    b.  The  comptroller  and  the  division  by  rule or regulation shall
    54  provide that every contract, application, deposit slip, or other similar
    55  document that may be used  in  connection  with  a  contribution  to  an
    56  account  clearly  indicate  that the account is not insured by the state

        A. 8298--B                          8
 
     1  and neither the principal deposited nor the investment return is guaran-
     2  teed by the state.
     3    §  4.  The  state finance law is amended by adding a new section 82 to
     4  read as follows:
     5    § 82. New York combat veterans healthcare choice program  trust  fund.
     6  1.  There  is  hereby established in the sole custody of the state comp-
     7  troller a special fund to be known  as  the  New  York  combat  veterans
     8  healthcare  choice program trust fund. All payments from such fund shall
     9  be made in accordance with article fourteen of the military law and  the
    10  memorandum  of  understanding entered into pursuant thereto on the audit
    11  of the state comptroller.
    12    2. The fund shall be a trust fund and shall consist of a trust account
    13  and an operating  account.  The  trust  account  shall  include  amounts
    14  received  by  the  New  York  combat  veterans healthcare choice program
    15  pursuant to New York combat veterans healthcare  choice  account  agree-
    16  ments,  administrative  charges, fees, and all other amounts received by
    17  the program from other  sources,  and  interest  and  investment  income
    18  earned by the trust fund. The comptroller shall, from time to time, make
    19  transfers  from the trust account to the operating account for the imme-
    20  diate payment of obligations under New York combat  veterans  healthcare
    21  choice  account  agreements, operating expenses and administrative costs
    22  of the New York combat veterans healthcare choice  account.  Administra-
    23  tive  costs  shall be paid out of the operating account according to the
    24  terms and conditions established pursuant to the provisions  of  section
    25  four hundred three of the military law.
    26    3.  (a)  The  comptroller,  as trustee, shall invest the assets of the
    27  trust fund in investments authorized by article four-A of the retirement
    28  and social security law, provided however, that:
    29    (i) the provisions of paragraph (a) of subdivision two of section  one
    30  hundred  seventy-seven  of  the retirement and social security law shall
    31  not apply except for the first clause of subparagraph (ii) of such para-
    32  graph; and
    33    (ii) notwithstanding the provisions of subdivision  seven  of  section
    34  one  hundred  seventy-seven of the retirement and social security law or
    35  any other law to the contrary, the assets  of  the  trust  fund  may  be
    36  invested  in  any  funding  agreement  issued in accordance with section
    37  three thousand two hundred twenty-two of the insurance law by a domestic
    38  life insurance company or a foreign life insurance company  doing  busi-
    39  ness in this state, subject to the following:
    40    (1) such a funding agreement may provide for a guaranteed minimum rate
    41  of return;
    42    (2)  such  a  funding  agreement may be allocated as either a separate
    43  account or a general account of  the  issuer,  as  the  comptroller  may
    44  decide;
    45    (3)  total investments of the trust fund pursuant to this paragraph in
    46  any funding agreements issued by a single life insurance  company  which
    47  are  allocated  as  a  general  account  of the issuer shall not, in the
    48  aggregate, exceed three hundred fifty million dollars; and
    49    (4) no assets of the trust fund shall be invested in any such  funding
    50  agreement  unless,  at  the  time  of such investment, the general obli-
    51  gations or financial strength of the issuer  have  received  either  the
    52  highest  or  second  highest  rating by two nationally recognized rating
    53  services or by one nationally recognized rating  service  in  the  event
    54  that only one such service rates such obligations.
    55    (b)  Trust fund assets shall be kept separate and shall not be commin-
    56  gled with other assets, except as provided in this  section.  The  comp-

        A. 8298--B                          9

     1  troller  may  enter  into contracts to provide for investment advice and
     2  management, custodial services, and other professional services for  the
     3  administration and investment of the program. Administrative fees, costs
     4  and expenses, including investment fees and expenses, shall be paid from
     5  the assets of the fund.
     6    4.  The  comptroller shall provide for the administration of the trust
     7  fund,  including  maintaining  participant  records  and  accounts,  and
     8  providing  annual  audited  reports.  The  comptroller  may  enter  into
     9  contracts to provide administrative services and reporting.
    10    § 5. Section 5205 of the civil practice law and rules  is  amended  by
    11  adding a new subdivision (p) to read as follows:
    12    (p)  Exemption  for New York combat veterans healthcare choice program
    13  trust fund payment monies. Monies in  an  account  created  pursuant  to
    14  article  fourteen of the military law are exempt from application to the
    15  satisfaction of a money judgment.
    16    § 6. Subsection (b) of section 612 of the tax law is amended by adding
    17  a new paragraph 43 to read as follows:
    18    (43) Distributions received during the taxable year by a  distribution
    19  of  a  New  York  combat  veterans healthcare choice account established
    20  pursuant to article fourteen of the military law,  to  the  extent  such
    21  distributions are not qualified withdrawals within the meaning of subdi-
    22  vision ten of section four hundred two of the military law.
    23    § 7. Subsection (c) of section 612 of the tax law is amended by adding
    24  two new paragraphs 44 and 45 to read as follows:
    25    (44) Contributions made during the taxable year by an account owner to
    26  one  or  more New York combat veterans healthcare choice accounts estab-
    27  lished pursuant to article fourteen of the military law, to  the  extent
    28  not  deductible  or eligible for credit for federal income tax purposes,
    29  provided, however, the exclusion provided for in  this  paragraph  shall
    30  not exceed five thousand dollars for an individual or head of household,
    31  and for married couples who file joint tax returns, shall not exceed ten
    32  thousand dollars; provided, further, that such exclusion shall be avail-
    33  able only to the account owner and not to any other person.
    34    (45)  Distributions  from a New York combat veterans healthcare choice
    35  account established pursuant to article fourteen of the military law, to
    36  the extent includible in gross income for federal income tax purposes.
    37    § 8. Subsection (d) of section 658 of the tax law is amended by adding
    38  a new paragraph 4 to read as follows:
    39    (4) The commissioner may by  regulation  or  instruction  require  the
    40  filing of a report annually by the comptroller or program manager of the
    41  New   York combat veterans healthcare choice program, or their designee,
    42  setting forth the names and identification numbers  of  account  owners,
    43  designated  beneficiaries  and  distributees of New York combat veterans
    44  healthcare choice program accounts,  the  amounts  contributed  to  such
    45  accounts,  the  amounts distributed from such accounts and the nature of
    46  such distributions as qualified withdrawals or as withdrawals other than
    47  qualified withdrawals, and any such other information as the commission-
    48  er may require regarding the taxation  under  this  article  of  amounts
    49  contributed  to  or  withdrawn  from such accounts. The commissioner may
    50  require that any such report also be made to the account  owner,  desig-
    51  nated beneficiary or distributee of any such account.
    52    §  9.  Section  190  of  the  executive law is amended by adding a new
    53  subdivision 6 to read as follows:
    54    6. The division of military and  naval  affairs  shall  establish  and
    55  maintain  a  voluntary  registry  of  state  residents who are honorably
    56  discharged veterans of the armed forces of the United  States,  and  who

        A. 8298--B                         10
 
     1  served  on  regular active duty (other than for training) during part of
     2  one of the following periods:
     3    (a)  from  September eighteenth, two thousand one until the end of the
     4  United States military efforts in Afghanistan; or
     5    (b) from October sixteenth, two thousand two  until  the  end  of  the
     6  United States military efforts in Iraq.
     7    The information in such registry shall be deemed confidential, and may
     8  only  be  accessed  by  such veteran for purposes of proof of his or her
     9  military service.
    10    § 10. This act shall take effect immediately and shall apply to  taxa-
    11  ble years beginning after December 31, 2018.
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