senate Bill S266

Provides for municipal cooperative health benefit plans, a study of community rating and the provision of claims experience to a municipality and other provisions

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Bill Status

  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 07 / Jan / 2009
  • 06 / Jan / 2010


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Bill Details

Legislative Cycle:
Senate Insurance
Law Section:
Insurance Law

Sponsor Memo


An act to amend the insurance law, in relation to municipal
cooperative health benefit plans, a study of community rating and the
provision of claims experience to a municipality; to amend the
agriculture and markets law and the county law, in relation to the
sharing of the duties of weights and measures between municipalities;
to amend the general municipal law and the highway law, in relation to
mutual aid; and to amend the public health law, in relation to the
composition of county and part-county boards of health

To implement several proposals of the Commission on Local Government
Efficiency and Competitiveness.

Sections 1 through 7 of the bill amend the Insurance Law to relax
requirements for forming a municipal cooperative health benefit plan
pursuant to Article 47 of the Insurance Law by requiring insurers to
provide up to 3 years of claims experience, by reducing the minimum
number of municipal corporations needed to form a cooperative from 5
to 3, by providing flexibility in the reserve requirements, by
allowing new cooperatives to amass reserves over a five-year
transition period, and by directing the Insurance department to order
a study of the impact on the community-rated health insurance market
of allowing municipalities with 50 or fewer employees to join with
larger municipalities to purchase experience rated policies.

Sections 8 and 9 of the bill amend the Agriculture and Markets Law to
allow multiple counties to share one Director of Weights and Measures.

Sections 10 through 13 of the bill amend the General Municipal Law and
the Highway Law to facilitate shared services agreements among
municipalities and between State agencies.

Section 14 of the bill amends the Public Health Law to allow certain
county and part-county health districts to share the same
director/commissioner, subject to the State Department of Health.

Section 15 of the bill provides for an immediate effective date.

Although the legislation authorizing municipal cooperative health
benefit plans was first enacted in 1994, not one single plan has been
established. Municipalities have been deterred from forming such
cooperatives for a variety of reasons including stringent statutory
requirements and lack of access to claim experience. Several counties
did express interest in cooperative insurance plans to the Commission.

The amendments that would permit the sharing of Directors of Weights
and Measures and Public Health Directors is to meet an expressed
interest by rural counties that would help reduce administrative costs
with no diminution in service.

In regard to highway shared services agreements, the present law
limits the authority of DOT to share services by only allowing for
snow and ice removal. The authority to contract for shared services in
this bill is broadened to encompass such other services such as road
maintenance and repair as well as mutual aid in all emergencies.

These proposals were included in the Governor's 2008-2009 proposed
Budget (See S-6806, Part U of 2008).
2008: S.8583 Passed Senate


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