Bill Text: NY A04178 | 2023-2024 | General Assembly | Introduced


Bill Title: 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; directs the division of military and naval affairs to establish a registry of Afghanistan and Iraq veterans.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-05-14 - held for consideration in veterans' affairs [A04178 Detail]

Download: New_York-2023-A04178-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          4178

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 10, 2023
                                       ___________

        Introduced  by  M.  of  A.  MANKTELOW  --  read once and referred to the
          Committee on Veterans' Affairs

        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
    20  healthcare  choice  account  established pursuant to article fourteen of
    21  this chapter for care and medical treatment  if  authority  therefor  is
    22  granted  by  the  adjutant  general, expenses for such  care and medical
    23  attendance as are necessary for the appropriate treatment of the  wound,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07181-01-3

        A. 4178                             2

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

        A. 4178                             3

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

        A. 4178                             4

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

        A. 4178                             5

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

        A. 4178                             6

     1    4. Contributions to accounts may be made only in cash.
     2    5.  An account owner may make a qualified withdrawal of all or part of
     3  the balance from an account on sixty days notice or such shorter  period
     4  as may be authorized under rules governing the program. Such rules shall
     5  include  provisions  that  will generally enable the determination as to
     6  whether a withdrawal is a nonqualified withdrawal or a  qualified  with-
     7  drawal.
     8    6.  An  account  owner  may  change  the  designated beneficiary of an
     9  account to a service member who is a member of the family of  the  prior
    10  designated  beneficiary in accordance with procedures established by the
    11  memorandum of understanding pursuant to the provisions of  section  four
    12  hundred three of this article.
    13    7.  The  program shall provide separate accounting for each designated
    14  beneficiary.
    15    8. No account owner or designated beneficiary of any account shall  be
    16  permitted to direct the investment of any contributions to an account or
    17  the earnings thereon more than two times in any calendar year.
    18    9.  Neither  an  account owner nor a designated beneficiary may use an
    19  interest in an account as security for a loan. Any pledge of an interest
    20  in an account shall be of no force and effect.
    21    10. The comptroller shall promulgate rules or regulations  to  prevent
    22  contributions  on  behalf  of  a  designated beneficiary in excess of an
    23  amount that would cause the aggregate account balance for  all  accounts
    24  for  a  designated  beneficiary  to exceed a maximum account balance, as
    25  established from time to time by the comptroller and the division on the
    26  basis of healthcare costs in the  state,  with  adequate  safeguards  to
    27  prevent  more  contributions than necessary to provide for the qualified
    28  healthcare costs of the beneficiary, as required to maintain the program
    29  as a "qualified health savings program" pursuant to federal law.
    30    11. a. If there is any distribution from an account to any  individual
    31  or  for  the  benefit  of  any  individual  during a calendar year, such
    32  distribution shall be reported to the Internal Revenue Service  and  the
    33  account  owner,  the  designated  beneficiary, or the distributee to the
    34  extent required by federal law or regulation.
    35    b. Statements shall be provided to each account owner  at  least  once
    36  each  year within sixty days after the end of the twelve month period to
    37  which they relate. The statement shall identify the  contributions  made
    38  during  a preceding twelve month period, the total contributions made to
    39  the account through the end of the period, the value of the  account  at
    40  the  end  of  such period, distributions made during such period and any
    41  other information that the comptroller shall require to be  reported  to
    42  the account owner.
    43    c.  Statements  and information relating to accounts shall be prepared
    44  and filed to the extent required by federal and state tax law.
    45    12. a.  A  local  government  or  organization  described  in  section
    46  501(c)(3) of the Internal Revenue Code of 1986, as amended, may open and
    47  become  the  account  owner  of  an account to fund qualified healthcare
    48  expenses for persons whose identity will be  determined  upon  disburse-
    49  ment.
    50    b.  In  the case of any account opened pursuant to paragraph a of this
    51  subdivision the requirement set forth in subdivision two of this section
    52  that a designated beneficiary be designated when an  account  is  opened
    53  shall  not  apply  and  each individual who receives an interest in such
    54  account as a qualified healthcare expense grant shall be  treated  as  a
    55  designated beneficiary with respect to such interest.

        A. 4178                             7

     1    13.  An annual fee may be imposed upon the account owner for the main-
     2  tenance of the account.
     3    14. The program shall disclose the following information in writing to
     4  each  account  owner  and prospective account owner of a New York combat
     5  veterans healthcare choice account:
     6    a. the terms and conditions for purchasing a New York combat  veterans
     7  healthcare choice account;
     8    b. any restrictions on the substitution of beneficiaries;
     9    c.  the  person  or  entity  entitled to terminate the New York combat
    10  veterans healthcare choice account agreement;
    11    d. the period of time during which a beneficiary may receive  benefits
    12  under the New York combat veterans healthcare choice account agreement;
    13    e.  the  terms  and  conditions  under  which  money  may be wholly or
    14  partially withdrawn from the program, including, but not limited to, any
    15  reasonable charges and fees that may be imposed for withdrawal;
    16    f. the probable tax consequences associated with contributions to  and
    17  distributions from accounts; and
    18    g. all other rights and obligations pursuant to New York combat veter-
    19  ans  healthcare  choice  account agreements, and any other terms, condi-
    20  tions, and provisions deemed necessary and appropriate by the  terms  of
    21  the  memorandum  of  understanding entered into pursuant to section four
    22  hundred three of this article.
    23    15. New York combat  veterans  healthcare  choice  account  agreements
    24  shall  be  subject  to  section  fourteen-c  of  the banking law and the
    25  "truth-in-savings" regulations promulgated thereunder.
    26    16. Nothing in this article or in any New York combat veterans health-
    27  care choice account agreement entered  into  pursuant  to  this  article
    28  shall be construed as a guarantee by the state or any healthcare provid-
    29  er  that a beneficiary will be admitted to an eligible healthcare insti-
    30  tution, or, upon admission to an eligible healthcare institution will be
    31  permitted to remain in such eligible healthcare institution.
    32    § 405. Program limitations; New York combat veterans healthcare choice
    33  account. 1. Nothing in this article shall be construed to:
    34    a. give any designated beneficiary any rights or legal  interest  with
    35  respect  to  an account unless the designated beneficiary is the account
    36  owner;
    37    b. guarantee that a designated beneficiary  will  be  admitted  to  an
    38  eligible healthcare institution;
    39    c.  create  state residency for an individual merely because the indi-
    40  vidual is a designated beneficiary; or
    41    d. guarantee that amounts saved pursuant to the program will be suffi-
    42  cient to cover the qualified healthcare expenses of a designated benefi-
    43  ciary.
    44    2. a. Nothing in this article shall create or be construed  to  create
    45  any  obligation  of the comptroller, the state, or any agency or instru-
    46  mentality of the state to guarantee for the benefit of any account owner
    47  or designated beneficiary with respect to:
    48    (i) the rate of interest or other return on any account; and
    49    (ii) the payment of interest or other return on any account.
    50    b. The comptroller and  the  division  by  rule  or  regulation  shall
    51  provide that every contract, application, deposit slip, or other similar
    52  document  that  may  be  used  in  connection  with a contribution to an
    53  account clearly indicate that the account is not insured  by  the  state
    54  and neither the principal deposited nor the investment return is guaran-
    55  teed by the state.

        A. 4178                             8

     1    §  4. The state finance law is amended by adding a new section 82-a to
     2  read as follows:
     3    § 82-a. New York combat veterans healthcare choice program trust fund.
     4  1.  There  is  hereby established in the sole custody of the state comp-
     5  troller a special fund to be known  as  the  New  York  combat  veterans
     6  healthcare  choice program trust fund. All payments from such fund shall
     7  be made in accordance with article fourteen of the military law and  the
     8  memorandum  of  understanding entered into pursuant thereto on the audit
     9  of the state comptroller.
    10    2. The fund shall be a trust fund and shall consist of a trust account
    11  and an operating  account.  The  trust  account  shall  include  amounts
    12  received  by  the  New  York  combat  veterans healthcare choice program
    13  pursuant to New York combat veterans healthcare  choice  account  agree-
    14  ments,  administrative  charges, fees, and all other amounts received by
    15  the program from other  sources,  and  interest  and  investment  income
    16  earned by the trust fund. The comptroller shall, from time to time, make
    17  transfers  from the trust account to the operating account for the imme-
    18  diate payment of obligations under New York combat  veterans  healthcare
    19  choice  account  agreements, operating expenses and administrative costs
    20  of the New York combat veterans healthcare choice  account.  Administra-
    21  tive  costs  shall be paid out of the operating account according to the
    22  terms and conditions established pursuant to the provisions  of  section
    23  four hundred three of the military law.
    24    3.  (a)  The  comptroller,  as trustee, shall invest the assets of the
    25  trust fund in investments authorized by article four-A of the retirement
    26  and social security law, provided however, that:
    27    (i) the provisions of paragraph (a) of subdivision two of section  one
    28  hundred  seventy-seven  of  the retirement and social security law shall
    29  not apply except for the first clause of subparagraph (ii) of such para-
    30  graph; and
    31    (ii) notwithstanding the provisions of subdivision  seven  of  section
    32  one  hundred  seventy-seven of the retirement and social security law or
    33  any other law to the contrary, the assets  of  the  trust  fund  may  be
    34  invested  in  any  funding  agreement  issued in accordance with section
    35  three thousand two hundred twenty-two of the insurance law by a domestic
    36  life insurance company or a foreign life insurance company  doing  busi-
    37  ness in this state, subject to the following:
    38    (1) such a funding agreement may provide for a guaranteed minimum rate
    39  of return;
    40    (2)  such  a  funding  agreement may be allocated as either a separate
    41  account or a general account of  the  issuer,  as  the  comptroller  may
    42  decide;
    43    (3)  total investments of the trust fund pursuant to this paragraph in
    44  any funding agreements issued by a single life insurance  company  which
    45  are  allocated  as  a  general  account  of the issuer shall not, in the
    46  aggregate, exceed three hundred fifty million dollars; and
    47    (4) no assets of the trust fund shall be invested in any such  funding
    48  agreement  unless,  at  the  time  of such investment, the general obli-
    49  gations or financial strength of the issuer  have  received  either  the
    50  highest  or  second  highest  rating by two nationally recognized rating
    51  services or by one nationally recognized rating  service  in  the  event
    52  that only one such service rates such obligations.
    53    (b)  Trust fund assets shall be kept separate and shall not be commin-
    54  gled with other assets, except as provided in this  section.  The  comp-
    55  troller  may  enter  into contracts to provide for investment advice and
    56  management, custodial services, and other professional services for  the

        A. 4178                             9

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

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     1    (a) from September eighteenth, two thousand one until the end  of  the
     2  United States military efforts in Afghanistan; or
     3    (b)  from  October  sixteenth,  two  thousand two until the end of the
     4  United States military efforts in Iraq.
     5    The information in such registry shall be deemed confidential, and may
     6  only be accessed by such veteran for purposes of proof  of  his  or  her
     7  military service.
     8    §  10. This act shall take effect immediately and shall apply to taxa-
     9  ble years beginning after December 31, 2024.
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