S T A T E O F N E W Y O R K
________________________________________________________________________
5407
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
___________
Introduced by Sens. KLEIN, ADDABBO, CARLUCCI, SAVINO, VALESKY -- read
twice and ordered printed, and when printed to be committed to the
Committee on Finance
AN ACT to direct the office of general services to conduct a study to
examine, evaluate and make recommendations relating to the feasibility
and advisability of establishing an office of risk assessment and
management
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The office of general services, in consultation with the
department of law, the department of audit and control, the state insur-
ance fund, the office of employee relations and the division of the
budget, shall conduct a study to examine, evaluate and make recommenda-
tions concerning the feasibility and advisability of establishing, with-
in the office of general services, an office of risk assessment and
management. The office of general services, in conducting such study,
should direct its attention to at least the following:
(a) the suggested proposed powers of such office of risk assessment
and management, which may include, but not be limited to, the power to:
(1) analyze the potential exposure of the state to liability and
financial loss arising from its acts and omissions, from the ownership,
control or use of its real and personal property, or the conduct or
actions of its employees or agents;
(2) establish and coordinate business continuity programs for essen-
tial state functions and services;
(3) implement risk management programs to manage the state's exposure
to risk in the most cost effective manner including, but not limited to,
programs to reduce the likelihood and potential cost of loss events, and
the purchase of insurance or other risk sharing arrangements where
appropriate; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10938-02-3
S. 5407 2
(4) coordinate and support the risk management programs of all state
agencies; and
(b) the appointment of a risk manager, who shall be appointed and
empowered to administer the proposed office of risk assessment and
management. With regard to such risk manager, the office of general
services should consider:
(1) the process for the appointment of the risk manager;
(2) the compensation to be paid to the risk manager;
(3) the qualifications of the risk manager, which may include, but not
be limited to:
(A) an understanding of and the ability to apply the generally
accepted principles, standards and techniques utilized for the identifi-
cation, assessment and management of enterprise risk;
(B) possessing sufficient experience in identifying, assessing and
managing enterprise risk exposures that present the breadth and level of
complexity of issues that can reasonably be expected to be raised during
the course of state operations; and
(C) having acquired his or her qualifications, through appropriate
education and relevant risk management experience on behalf of a commer-
cial or governmental organization; and
(c) the fulfillment of the functions of the proposed office of risk
assessment and management by conducting a preliminary examination and
evaluation, in consultation with the comptroller, the attorney general,
the temporary president of the senate and the speaker of the assembly,
of the kinds and scope of risk exposures faced by the state. Such exam-
ination and evaluation may include, but not be limited to:
(1) the practices and procedures of all state agencies, as they
pertain to, impact upon, cause or deter damage or loss to: physical
property owned or controlled by the state, or physical injuries
sustained by state employees, persons receiving services from the state
or members of the general public;
(2) the actions, claim settlements, and claim settlement processes
related to actions in the court of claims, and in federal and state
courts of competent jurisdiction as they relate to the disposition of
matters against the state;
(3) the essential operations and service functions of the state, and
the kinds of procedures that may be necessary to maintain or restore
such operations and functions to the required level following an emer-
gency event;
(4) the potential future liabilities arising from existing or proposed
state operations or functions;
(5) a description on how to prepare an inventory of all real property
owned or leased, for a period of time of more than ten years, by all
state agencies, and to begin to ascertain how to assess past, present
and potential future liability exposures and the nature of those expo-
sures; and
(6) a description of the kinds of appropriate cost effective tech-
niques and programs needed to reduce the cost of the state's exposure to
liability and financial loss arising from its operations or the owner-
ship, control or use of real and personal property; and
(d) allowing any public benefit corporation, public authority or local
government to contract for the services of the proposed risk manager and
the office of risk assessment and management in the event that such
public benefit corporation, public authority or local government is
without internal risk assessment and enterprise risk management
S. 5407 3
services, or wishes to supplement such internal services with the
services provided by the risk manager and the office.
S 2. In addition to the requirements of section one of this act, the
office of general services shall, with particular care, begin to exam-
ine, analyze and determine:
(a) an estimate of the financial benefits that could be realized by
establishing an office of risk assessment and management and the poten-
tial reduction in the state's liability exposure;
(b) the financial costs and an estimate of the size of the workforce
necessary to establish the office of risk assessment and management;
(c) the method or process by which the proposed office of risk assess-
ment and management could be established and the manner in which such
office's operations could be phased in over 5 years; and
(d) the method of financing the establishment and operations of the
office of risk assessment and management, in as much as the initial
costs of such office may not be offset by cost savings and reduction in
liability exposure until such office has been in existence for an
extended period of time.
S 3. Within eighteen months of the effective date of this act, the
office of general services shall submit to the governor, the attorney
general, the state comptroller, the temporary president of the senate
and the speaker of the assembly, a report of its findings, conclusions
and recommendations, and shall submit with its report such legislative
proposals as it deems necessary to implement its recommendations.
S 4. This act shall take effect immediately.