NY A05262

Establishes the New York State Armed Services Memorial Award for Liberty and Honor, awarded posthumously to New York armed services members killed in action or who die within one year from service-related injuries or illnesses sustained after September 11, 2001.

Provides honorariums distributed in equal periodic installments over 2-5 years to surviving spouses ($25,000-$50,000), dependent children ($25,000 each or shared $100,000 if five or more children), and dependent or non-dependent legal parents ($8,000-$42,500 each), with a maximum total honorarium of $210,000 per recipient.

Exempts honorarium payments from state income tax, asset calculations for benefit eligibility, and creditor attachment; requires eligibility determinations within 90 days of death and at least quarterly installment distributions.

Creates the New York State Armed Services Memorial Award for Liberty and Honor Fund in joint custody of the State Comptroller and Adjutant General of the Division of Military and Naval Affairs to distribute honorariums.

Appropriates $850,000 to the fund with implementation authority granted to the State Director of Veterans Affairs and Adjutant General; effective date is 180 days after enactment.