NY State Senate Bill 2009-S6885

Senate Bill S6885

2009-2010 Legislative Session

Establishes the office of risk assessment and management within the office of general services

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 23, 2010	print number 6885a
Apr 23, 2010	amend and recommit to finance
Feb 22, 2010	referred to finance

Bill Amendments

Original

A (Active)

2009-S6885 - Details

Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 10-A §§204 - 207, Exec L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1029
2013-2014: S2326

2009-S6885 - Summary

Establishes the office of risk assessment and management within the office of general services to determine the state's potential exposure to liability for its acts and omissions; such office shall also advise state agencies on proper risk management techniques and procedures.

2009-S6885 - Sponsor Memo

                                 BILL NUMBER:  S6885

 TITLE OF BILL :
An act to amend the executive law, in relation to establishing the
office of risk assessment and management


 PURPOSE :
To institute a formal risk management regiment into daily State
operations and procedures. Instituting a formal risk management
regiment to state operations will help to minimize the state's future
losses and liability exposure due to physical injury to state
employees and the general public and damage to physical property owned
and controlled by the State.

 SUMMARY OF PROVISIONS :
Section 1 Adds Executive Law Article 10-A to create the Office of Risk
Assessment and Management within the Office of General Services. The
bill provides for the appointment of a risk manager and establishes
duties and responsibilities of the State Risk Manager. The risk
manager is to help contain future state liabilities due to physical
injury or damage to property that occurs during the course of state
operations.

Among the responsibilities of the risk manager include:  1) conduct an
inventory of all state real property and ascertain past, present and

future liability exposure due to state operations on such property.
2) conduct a study of the actions of the court of claims and payment
of those claims to ascertain trends in the payment of state claims due
to injury of persons or property.
3) conduct a study of current state practices and how those practices
could be altered to minimize future claims brought against the state.
This will be done by advising various State agencies on proper risk
management techniques and procedures.

State agencies are to cooperate with the work of the State risk
manager.  Once the risk manager has suggested a risk management
technique, the state agency has time to comment on that
recommendation. Any public benefit corporation or public authority can
contract with the State risk manager to perform risk management
services or supplement already existing internal risk assessment and
management services.

Section 2 provides for an effective date of 180 days after the bill
shall have become law.

 EXISTING LAW :
None.

 JUSTIFICATION :
The State of New York each year faces dramatic exposure and
third-party liability both to persons under the care and custody of
the State and visitors to State premises. In 1995, the liabilities for
Workers' Compensation alone exceed $150 million per year and tort
actions have cost the State better than $70 million per year. The
creation of central office of risk assessment and management would go
far to determine the full extent of the State's exposure to civil tort
liability and allow the State to systemically reduce such exposure
through the integration of professional risk management procedures
into daily State operations.

Enactment of this measure would also bring New York State in line with
a majority of states, most larger municipalities, and most large
corporate entities that have centralized risk management procedures.
Not only will this bill help reduce the annual payments to satisfy
personal and property damage against the State, it will help to reduce
personal injuries sustained by State employees and members of the
general public.

 LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
No initial cost to the State and in future years, there will be
sizable savings in state costs for injuries sustained to persons and
property. In financing the work of the new risk manager, many other
states and municipal governments appoint an experienced risk
management company to conduct the work of risk management and
assessment. The funds needed to support such risk manager's work is
received from a percentage of money that the risk manager saves the
participating state or municipality. Preliminary estimates are that
this bill will reduce State costs by $ 150 Million in the first year.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
180 days after its enactment into law.

2009-S6885 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6885

                            I N  S E N A T E

                            February 22, 2010
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the executive  law,  in  relation  to  establishing  the
  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 executive law is amended by adding a new  article  10-A
to read as follows:
                               ARTICLE 10-A
                OFFICE OF RISK ASSESSMENT AND MANAGEMENT
SECTION 204. DEFINITIONS.
        205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT.
        206. FUNCTIONS AND DUTIES OF THE OFFICE.
        207. BOARD OF RISK ASSESSMENT AND MANAGEMENT
  S 204. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1.  "OFFICE"  SHALL  MEAN THE OFFICE OF RISK ASSESSMENT AND MANAGEMENT
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED FIVE OF THIS ARTICLE.
  2. "RISK MANAGER" SHALL MEAN THE RISK MANAGER OF THE OFFICE.
  3. "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, DIVISION, BOARD,  COMMIS-
SION, BUREAU, OFFICE OR OTHER AGENCY OF THE STATE.
  S 205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT. THERE SHALL BE ESTAB-
LISHED  WITHIN THE OFFICE OF GENERAL SERVICES, AN OFFICE OF RISK ASSESS-
MENT AND MANAGEMENT. THERE SHALL BE APPOINTED  BY  THE  COMMISSIONER  OF
GENERAL  SERVICES  THE  RISK MANAGER OF THE OFFICE, WHO SHALL BE CHARGED
WITH THE DUTY OF ADMINISTERING THE OFFICE. THE COMMISSIONER  OF  GENERAL
SERVICES  SHALL  FIX COMPENSATION OF THE RISK MANAGER WITHIN THE AMOUNTS
APPROPRIATED THEREFOR.
  S 206. FUNCTIONS AND DUTIES OF THE OFFICE.  1.  THE  FUNCTION  OF  THE
OFFICE  SHALL  BE  TO  DETERMINE  THE POTENTIAL EXPOSURE OF THE STATE TO
LIABILITY FOR ITS ACTS AND OMISSIONS.  THE RISK MANAGER AND OFFICE SHALL
FULFILL ITS FUNCTIONS AND DUTIES BY:
  (A) CONDUCTING A STUDY OF THE PRACTICES AND PROCEDURES  OF  ALL  STATE
AGENCIES, AS THEY PERTAIN TO, IMPACT UPON, CAUSE OR DETER PHYSICAL PROP-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15522-02-0

S. 6885                             2

ERTY  DAMAGE  OR  PERSONAL  INJURIES  OF ITS EMPLOYEES OR MEMBERS OF THE
GENERAL PUBLIC;
  (B)  CONDUCTING  A STUDY OF THE ACTIONS OF THE COURT OF CLAIMS AS THEY
RELATE TO THE DISPOSITION OF MATTERS AGAINST THE STATE, FOR THE  PURPOSE
OF  DETERMINING  PAST AND PRESENT EXPOSURES TO LIABILITY, AND THE NATURE
OF SUCH EXPOSURES;
  (C) CONDUCTING A STUDY OF FUTURE LIABILITIES, AND  RECOMMENDING  STEPS
AND PROCEDURES TO BE INSTITUTED TO REDUCE SUCH LIABILITIES; AND
  (D)  CONDUCTING AN INVENTORY OF ALL REAL PROPERTY OWNED OR LEASED, FOR
A PERIOD OF TIME OF MORE THAN FIVE YEARS, BY ALL STATE AGENCIES, AND  TO
ASCERTAIN PAST, PRESENT AND POTENTIAL FUTURE LIABILITY EXPOSURES AND THE
NATURE  OF  THOSE  EXPOSURES,  AND  TO DEVELOP A RISK MANAGEMENT PLAN TO
REDUCE SUCH EXPOSURE TO LIABILITY BY VIRTUE OF OWNING  OR  LEASING  SUCH
REAL PROPERTY.
  THE  RISK MANAGER, IN THE PERFORMANCE OF SUCH STUDIES, SHALL ENJOY THE
FULL COOPERATION AND ASSISTANCE OF  STATE  AGENCIES  AND  THE  COURT  OF
CLAIMS.
  2.  SUCH  STUDIES  SHALL  BE COMPLETED AND SENT TO THE GOVERNOR, COMP-
TROLLER, ATTORNEY  GENERAL,  EXECUTIVE  OFFICER  OF  EACH  STATE  AGENCY
INCLUDED  THEREIN,  TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE
ASSEMBLY, MINORITY LEADER OF THE  SENATE  AND  MINORITY  LEADER  OF  THE
ASSEMBLY  NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS
ARTICLE.  THE STUDIES SHALL BE REVISED AND UPDATED  AS  IS  PERIODICALLY
DEEMED APPROPRIATE BY THE RISK MANAGER, PROVIDED, HOWEVER, THAT ALL SUCH
STUDIES  SHALL  BE  REVISED  AND  UPDATED  NOT LESS THAN ONCE EVERY FIVE
YEARS.
  3. THE OFFICE SHALL ADVISE THE VARIOUS STATE AGENCIES ON  PROPER  RISK
MANAGEMENT  TECHNIQUES  AND  PROCEDURES, AND THE IMPLEMENTATION THEREOF,
FOR THE PURPOSE OF REDUCING  EXPOSURES  TO  LIABILITY  AS  WELL  AS  ALL
RESPONSIBILITIES  AND DUTIES OF THE BUREAU OF INSURANCE IN THE OFFICE OF
GENERAL SERVICES. THOSE AGENCIES INVOLVED IN, OR  RESPONSIBLE  FOR,  THE
CONSTRUCTION  OF  STRUCTURES  OR  ROADWAYS,  OR  THE CARE AND CUSTODY OF
PERSONS MORE THAN IN TEMPORARY QUARTERS, AND THOSE AGENCIES  WITH  VEHI-
CLES  ASSIGNED  FOR  THEIR  USE,  SHALL UNDERGO DETAILED RISK MANAGEMENT
ANALYSIS AND, WHEREVER PRACTICABLE AND AFTER THE AGENCY  IS  GRANTED  AN
OPPORTUNITY  TO  REVIEW  AND  APPEAL THE FINDINGS AND RECOMMENDATIONS OF
SUCH ANALYSIS, IMPLEMENT THE RECOMMENDATIONS OF THE RISK MANAGER  WITHIN
ONE HUNDRED EIGHTY DAYS OF THE DATE THAT SUCH RECOMMENDATIONS ARE AGREED
TO BY THE EXECUTIVE OFFICER OF SUCH AGENCY.
  4.  THE  RISK MANAGER SHALL FILE AN ANNUAL REPORT ON THE ACTIVITIES OF
THE OFFICE WITH THE GOVERNOR, COMPTROLLER, ATTORNEY  GENERAL,  TEMPORARY
PRESIDENT  OF  THE SENATE, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY, SENATE FINANCE COMMITTEE AND  ASSEMBLY  WAYS
AND  MEANS  COMMITTEE,  NO  LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
COMPLETION OF THE CALENDAR YEAR TO WHICH THE REPORT REFERS.
  5. ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY MAY CONTRACT FOR
THE SERVICES OF THE RISK MANAGER AND THE OFFICE IN THE EVENT  THAT  SUCH
PUBLIC  BENEFIT CORPORATION OR PUBLIC AUTHORITY IS WITHOUT INTERNAL RISK
ASSESSMENT AND MANAGEMENT SERVICES, OR WISHES TO SUPPLEMENT SUCH  INTER-
NAL  SERVICES  WITH  THE  SERVICES  PROVIDED BY THE RISK MANAGER AND THE
OFFICE.
  6. THE RISK MANAGER MAY REVIEW, STUDY AND ENTER  INTO  A  RELATIONSHIP
WITH  CAPTIVE  INSURANCE  COMPANIES,  AS  DEFINED  IN  SUBSECTION (C) OF
SECTION SEVEN THOUSAND TWO OF THE INSURANCE LAW, OR OTHER  RISK  SHARING
ENTITIES  TO  REDUCE PERSONAL INJURY OR PROPERTY DAMAGE LIABILITY CLAIMS
AND PAYMENTS, EITHER ON AN ANNUAL BASIS OR OVER A LONGER PERIOD OF TIME,

S. 6885                             3

FOR ALL STATE AGENCIES, OR AN INDIVIDUAL STATE  AGENCY,  PUBLIC  BENEFIT
CORPORATION OR PUBLIC AUTHORITY.
  S  207.    BOARD OF RISK ASSESSMENT AND MANAGEMENT. 1. THERE IS HEREBY
ESTABLISHED, WITHIN THE OFFICE, A STATE BOARD  OF  RISK  ASSESSMENT  AND
MANAGEMENT.  THE BOARD, TO BE COMPRISED OF THE RISK MANAGER, THE COMMIS-
SIONER OF GENERAL SERVICES, THE CHAIR OF THE STATE INSURANCE  FUND,  THE
PRESIDENT  OF  THE  STATE  CIVIL SERVICE COMMISSION, THE DIRECTOR OF THE
OFFICE OF EMPLOYEE RELATIONS, THE DIRECTOR OF THE DIVISION OF THE  BUDG-
ET,  AND  A  REPRESENTATIVE  OF EACH PUBLIC EMPLOYEE ORGANIZATION, SHALL
MEET QUARTERLY FOR THE PURPOSE OF  EXAMINING  CURRENT  METHODS  OF  RISK
MANAGEMENT  AND  CONTROL  DEPLOYED BY THE STATE, AND REVIEW INSTANCES OF
DIFFICULTY IN DEPLOYING SOUND RISK ASSESSMENT AND MANAGEMENT PROCEDURES.
  2. A SUMMARY OF THE PROCEEDINGS OF THE BOARD, WITH RECOMMENDATIONS FOR
IMPROVEMENT OF THE STATE'S RISK  MANAGEMENT  PRACTICES  AND  PROCEDURES,
SHALL  BE  INCLUDED  IN  THE ANNUAL REPORT OF THE RISK MANAGER. THE RISK
MANAGER SHALL TAKE INTO CONSIDERATION THE  RECOMMENDATIONS  PERIODICALLY
MADE  BY  THE BOARD IN CONDUCTING HIS OR HER MANAGEMENT AND ABATEMENT OF
POTENTIAL LIABILITY ACTIVITIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary for the timely implementation of this act  on  its  effective  date
shall be promulgated on or before such date.

co-Sponsors

2009-S6885A (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 10-A §§204 - 207, Exec L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1029
2013-2014: S2326

2009-S6885A (ACTIVE) - Summary

2009-S6885A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6885A

 TITLE OF BILL :
An act to amend the executive law, in relation to establishing the
office of risk assessment and management


 PURPOSE :
To institute a formal risk management regiment into daily State
operations and procedures. Instituting a formal risk management
regiment to state operations will help to minimize the state's future
losses and liability exposure due to physical injury to state
employees and the general public and damage to physical property owned
and controlled by the state.

 SUMMARY OF PROVISIONS :
Section 1 Adds Executive Law Article 10-A to create the Office of Risk
Assessment and Management within the Office of General Services. The
bill provides for the appointment of a risk manager and establishes
duties and responsibilities of the state Risk Manager. The risk
manager is to help contain future state liabilities due to physical
injury or damage to property that occurs during the course of state
operations.

The amendment to this bill S.6885-A adds qualifications that the risk
manager should have to be appointed to that position.

Among the responsibilities of the risk manager include:
1) conduct an inventory of all state real property and ascertain past,
present and future liability exposure due to state operations on such
property.
2) conduct a study of the actions of the court of claims and payment
of those claims to ascertain trends in the payment of state claims due
to injury of persons or property.  3) conduct a study of current state
practices and how those practices could be altered to minimize future
claims brought against the state.  This will be done by advising
various State agencies on proper risk management techniques and
procedures.
4) the amendment to this bill S.6885-A adds the ability to look at
financial losses arising from the ownership or use of real or personal
property and to establish business continuity programs for state
services.

State agencies are to cooperate with the work of the State risk
manager.  Once the risk manager has suggested a risk management
technique, the state agency has time to comment on that
recommendation. Any public benefit corporation or public authority can
contract with the state risk manager to perform risk management
services or supplement already existing internal risk assessment and
management services.

The bill also clearly authorizes the state's risk manager to contract
with outside vendors or consultants with expertise in risk management,
claims management, or safety management.

Section 2 provides for an effective date of 180 days after the bill
shall have become law.

 EXISTING LAW :
None.

 JUSTIFICATION :
The State of New York each year faces dramatic exposure and
third-party liability both to persons under the care and custody of
the State and visitors to State premises. In 1995, the liabilities for
Workers' Compensation alone exceed $150 million per year and tort
actions have cost the State better than $70 million per year. The
creation of central office of risk assessment and management would go
far to determine the full extent of the State's exposure to civil tort
liability and allow the State to systemically reduce such exposure
through the integration of professional risk management procedures
into daily State operations.

Enactment of this measure would also bring New York State in line with
a majority of states, most larger municipalities, and most large
corporate entities that have centralized risk management procedures.
Not only will this bill help reduce the annual payments to satisfy
personal and property damage against the State, it will help to reduce
personal injuries sustained by State employees and members of the
general public.

 LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
No initial cost to the State and in future years, there will be
sizable savings in state costs for injuries sustained to persons and
property.  In financing the work of the new risk manager, many other
states and municipal governments appoint an experienced risk
management company to conduct the work of risk management and
assessment. The funds needed to support such risk manager's work is
received from a percentage of money that the risk manager saves the
participating state or municipality.  Preliminary estimates are that
this bill will reduce State costs by $ 150 Million in the first year.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
180 days after its enactment into law.

2009-S6885A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6885--A

                            I N  S E N A T E

                            February 22, 2010
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to  the  Committee  on  Finance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  executive  law, in relation to establishing the
  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 executive law is amended by adding a new article 10-A
to read as follows:
                               ARTICLE 10-A
                OFFICE OF RISK ASSESSMENT AND MANAGEMENT
SECTION 204. DEFINITIONS.
        205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
               RISK MANAGER.
        206. FUNCTIONS AND DUTIES OF THE OFFICE.
        207. BOARD OF RISK ASSESSMENT AND MANAGEMENT.
  S 204. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1. "ENTERPRISE RISK MANAGEMENT" SHALL MEAN A STRATEGIC DISCIPLINE THAT
SUPPORTS THE ACHIEVEMENT OF THE STATE'S  OBJECTIVES  BY  ADDRESSING  THE
FULL  SPECTRUM  OF  ITS  RISKS  AND MANAGES THE COMBINED IMPACT OF THOSE
RISKS AS AN INTERRELATED RISK PORTFOLIO.
  2. "OFFICE" SHALL MEAN THE OFFICE OF RISK  ASSESSMENT  AND  MANAGEMENT
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED FIVE OF THIS ARTICLE.
  3. "RISK MANAGER" SHALL MEAN THE RISK MANAGER OF THE OFFICE.
  4.  "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, DIVISION, BOARD, COMMIS-
SION, BUREAU, OFFICE OR OTHER AGENCY OF THE STATE.
  S 205. OFFICE OF RISK ASSESSMENT  AND  MANAGEMENT;  QUALIFICATIONS  OF
RISK MANAGER. 1. THERE SHALL BE ESTABLISHED WITHIN THE OFFICE OF GENERAL
SERVICES,  AN  OFFICE  OF RISK ASSESSMENT AND MANAGEMENT. THERE SHALL BE
APPOINTED BY THE COMMISSIONER OF GENERAL SERVICES THE  RISK  MANAGER  OF
THE  OFFICE,  WHO  SHALL  BE  CHARGED WITH THE DUTY OF ADMINISTERING THE
OFFICE. THE COMMISSIONER OF GENERAL SERVICES SHALL FIX  COMPENSATION  OF
THE RISK MANAGER WITHIN THE AMOUNTS APPROPRIATED THEREFOR.

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

                                                           LBD15522-03-0

S. 6885--A                          2

  2. THE RISK MANAGER SHALL HAVE THE FOLLOWING QUALIFICATIONS:
  (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; AND
  (B) SUFFICIENT  EXPERIENCE  IN  IDENTIFYING,  ASSESSING  AND  MANAGING
ENTERPRISE RISK EXPOSURES THAT PRESENT THE BREADTH AND LEVEL OF COMPLEX-
ITY  OF  ISSUES  THAT CAN REASONABLY BE EXPECTED TO BE RAISED DURING THE
COURSE OF STATE OPERATIONS.
  3. EVERY RISK MANAGER SHALL HAVE ACQUIRED HIS OR  HER  QUALIFICATIONS,
AS  REQUIRED  BY  SUBDIVISION  TWO  OF THIS SECTION, THROUGH APPROPRIATE
EDUCATION AND RELEVANT RISK MANAGEMENT EXPERIENCE ON BEHALF OF A COMMER-
CIAL OR GOVERNMENTAL ORGANIZATION.
  S 206. FUNCTIONS AND DUTIES OF THE OFFICE.  1.  THE  FUNCTION  OF  THE
OFFICE SHALL BE:
  (A)  TO DETERMINE THE POTENTIAL EXPOSURE OF THE STATE TO LIABILITY AND
FINANCIAL LOSS ARISING FROM ITS ACTS AND OMISSIONS, AND FROM THE  OWNER-
SHIP AND/OR USE OF ITS REAL AND PERSONAL PROPERTY;
  (B)  TO  ESTABLISH  AND  COORDINATE  BUSINESS  CONTINUITY PROGRAMS FOR
ESSENTIAL STATE FUNCTIONS AND SERVICES;
  (C) TO IMPLEMENT RISK MANAGEMENT PROGRAMS TO MANAGE THE STATE'S  EXPO-
SURE TO RISK IN THE MOST COST EFFECTIVE MANNER INCLUDING, BUT NOT LIMIT-
ED  TO,  PROGRAMS  TO  REDUCE  THE LIKELIHOOD AND POTENTIAL COST OF LOSS
EVENTS, AND THE PURCHASE OF INSURANCE WHERE APPROPRIATE; AND
  (D) TO COORDINATE AND SUPPORT THE  RISK  MANAGEMENT  PROGRAMS  OF  ALL
STATE AGENCIES.
  2.  THE  RISK  MANAGER  AND  OFFICE  SHALL FULFILL THEIR FUNCTIONS AND
DUTIES BY:
  (A) CONDUCTING A STUDY OF THE STATE'S RISK  EXPOSURES  ON  AN  ONGOING
BASIS. SUCH STUDY SHALL INCLUDE:
  (I)  PRACTICES  AND  PROCEDURES OF ALL STATE AGENCIES, AS THEY PERTAIN
TO, IMPACT UPON, CAUSE OR DETER DAMAGE TO PHYSICAL PROPERTY OR  INJURIES
TO STATE EMPLOYEES, PERSONS RECEIVING SERVICES FROM THE STATE OR MEMBERS
OF THE GENERAL PUBLIC;
  (II)  THE ACTIONS AND CLAIM SETTLEMENTS OF THE COURT OF CLAIMS AS THEY
RELATE TO THE DISPOSITION OF MATTERS AGAINST THE STATE, FOR THE  PURPOSE
OF  DETERMINING  PAST AND PRESENT EXPOSURES TO LIABILITY, THE NATURE AND
MAGNITUDE OF SUCH EXPOSURES, AND THE TECHNIQUES FOR REDUCING THE COST OF
MANAGING AND SETTLING CLAIMS ARISING FROM SUCH EXPOSURES;
  (III) THE ESSENTIAL OPERATIONS AND SERVICE FUNCTIONS OF THE STATE, AND
THE PROCEDURES NECESSARY TO MAINTAIN  OR  RESTORE  SUCH  OPERATIONS  AND
FUNCTIONS TO THE REQUIRED LEVEL FOLLOWING AN EMERGENCY EVENT;
  (IV)  THE  POTENTIAL  FUTURE  LIABILITIES  ARISING  FROM  EXISTING  OR
PROPOSED STATE OPERATIONS OR FUNCTIONS;
  (V) THE PREPARATION OF AN INVENTORY OF  ALL  REAL  PROPERTY  OWNED  OR
LEASED, FOR A PERIOD OF TIME OF MORE THAN FIVE YEARS, BY ALL STATE AGEN-
CIES,  AND  TO  ASCERTAIN  PAST,  PRESENT AND POTENTIAL FUTURE LIABILITY
EXPOSURES AND THE NATURE OF THOSE EXPOSURES; AND
  (VI) THE DESIGN AND IMPLEMENTATION OF APPROPRIATE COST EFFECTIVE TECH-
NIQUES AND PROGRAMS TO REDUCE  THE  COST  OF  THE  STATE'S  EXPOSURE  TO
LIABILITY  AND  FINANCIAL LOSS ARISING FROM ITS OPERATIONS OR THE OWNER-
SHIP AND/OR USE OF REAL AND PERSONAL  PROPERTY,  INCLUDING  RECOMMENDING
STEPS AND PROCEDURES TO BE IMPLEMENTED BY INDIVIDUAL STATE AGENCIES.
  THE  RISK  MANAGER,  IN THE PERFORMANCE OF SUCH STUDY, SHALL ENJOY THE
FULL COOPERATION AND ASSISTANCE OF  STATE  AGENCIES  AND  THE  COURT  OF
CLAIMS; AND

S. 6885--A                          3

  (B)  RECOMMENDING AND IMPLEMENTING THE APPROPRIATE RISK MANAGEMENT AND
BUSINESS CONTINUITY PROGRAMS AS SHALL BE NECESSARY.
  3.  SUCH  STUDY AND RECOMMENDATIONS SHALL BE COMPLETED AND SENT TO THE
GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, EXECUTIVE OFFICER OF EACH STATE
AGENCY INCLUDED THEREIN, TEMPORARY PRESIDENT OF THE SENATE,  SPEAKER  OF
THE  ASSEMBLY,  MINORITY LEADER OF THE SENATE AND MINORITY LEADER OF THE
ASSEMBLY NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF  THIS
ARTICLE.   THE STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED AS
IS PERIODICALLY DEEMED APPROPRIATE BY THE RISK MANAGER; PROVIDED, HOWEV-
ER, THAT SUCH STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED NOT
LESS THAN ONCE EVERY FIVE YEARS.
  4. THE OFFICE SHALL ADVISE THE VARIOUS STATE AGENCIES ON PROPER ENTER-
PRISE RISK MANAGEMENT TECHNIQUES AND PROCEDURES, AND THE  IMPLEMENTATION
THEREOF,  FOR  THE PURPOSE OF REDUCING EXPOSURES TO LIABILITY AND FINAN-
CIAL LOSS, OR THE DISRUPTION OF ESSENTIAL  STATE  OPERATIONS  AND  FUNC-
TIONS,  AS  WELL  AS  ALL  RESPONSIBILITIES  AND DUTIES OF THE BUREAU OF
INSURANCE IN THE OFFICE OF GENERAL SERVICES. THOSE AGENCIES INVOLVED  IN
OR  RESPONSIBLE  FOR  THE  CONSTRUCTION  OR MAINTENANCE OF STRUCTURES OR
ROADWAYS, THE CARE AND CUSTODY OF PERSONS MORE THAN IN  TEMPORARY  QUAR-
TERS,  THE  PROVISION OF SERVICES OF THE GENERAL PUBLIC, AND THOSE AGEN-
CIES WITH VEHICLES ASSIGNED FOR THEIR USE, SHALL UNDERGO DETAILED ENTER-
PRISE RISK MANAGEMENT ANALYSIS AND, WHEREVER PRACTICABLE AND  AFTER  THE
AGENCY  IS  GRANTED AN OPPORTUNITY TO REVIEW AND APPEAL THE FINDINGS AND
RECOMMENDATIONS OF SUCH ANALYSIS, IMPLEMENT THE RECOMMENDATIONS  OF  THE
RISK MANAGER WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE THAT SUCH RECOM-
MENDATIONS ARE AGREED TO BY THE EXECUTIVE OFFICER OF SUCH AGENCY.
  5.  THE  RISK MANAGER SHALL FILE AN ANNUAL REPORT ON THE ACTIVITIES OF
THE OFFICE WITH THE GOVERNOR, COMPTROLLER, ATTORNEY  GENERAL,  TEMPORARY
PRESIDENT  OF  THE SENATE, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY, SENATE FINANCE COMMITTEE AND  ASSEMBLY  WAYS
AND  MEANS  COMMITTEE,  NO  LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
COMPLETION OF THE CALENDAR YEAR TO WHICH THE REPORT REFERS.
  6. ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY MAY CONTRACT FOR
THE SERVICES OF THE RISK MANAGER AND THE OFFICE IN THE EVENT  THAT  SUCH
PUBLIC  BENEFIT CORPORATION OR PUBLIC AUTHORITY IS WITHOUT INTERNAL RISK
ASSESSMENT AND ENTERPRISE RISK MANAGEMENT SERVICES, OR WISHES TO SUPPLE-
MENT SUCH INTERNAL SERVICES WITH  THE  SERVICES  PROVIDED  BY  THE  RISK
MANAGER AND THE OFFICE.
  7.  THE  RISK  MANAGER MAY REVIEW, STUDY AND ENTER INTO A RELATIONSHIP
WITH: (A) OUTSIDE VENDORS OR CONSULTANTS WITH EXPERTISE IN RISK  MANAGE-
MENT,  CLAIMS MANAGEMENT OR SAFETY MANAGEMENT, AND (B) CAPTIVE INSURANCE
COMPANIES, AS DEFINED IN SUBSECTION (C) OF SECTION SEVEN THOUSAND TWO OF
THE INSURANCE LAW, OR OTHER RISK SHARING  ENTITIES  TO  REDUCE  PERSONAL
INJURY  OR  PROPERTY  DAMAGE LIABILITY CLAIMS AND PAYMENTS, EITHER ON AN
ANNUAL BASIS OR OVER A LONGER PERIOD OF TIME, FOR ALL STATE AGENCIES, OR
AN INDIVIDUAL STATE AGENCY, PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHOR-
ITY.
  S 207.  BOARD OF RISK ASSESSMENT AND MANAGEMENT. 1.  THERE  IS  HEREBY
ESTABLISHED,  WITHIN  THE  OFFICE,  A STATE BOARD OF RISK ASSESSMENT AND
MANAGEMENT. THE BOARD, TO BE COMPRISED OF THE RISK MANAGER, THE  COMMIS-
SIONER  OF  GENERAL SERVICES, THE CHAIR OF THE STATE INSURANCE FUND, THE
PRESIDENT OF THE STATE CIVIL SERVICE COMMISSION,  THE  DIRECTOR  OF  THE
OFFICE  OF EMPLOYEE RELATIONS, THE DIRECTOR OF THE DIVISION OF THE BUDG-
ET, AND A REPRESENTATIVE OF EACH  PUBLIC  EMPLOYEE  ORGANIZATION,  SHALL
MEET  QUARTERLY  FOR  THE PURPOSE OF EXAMINING CURRENT METHODS OF ENTER-
PRISE RISK MANAGEMENT AND CONTROL DEPLOYED  BY  THE  STATE,  AND  REVIEW

S. 6885--A                          4

INSTANCES  OF  DIFFICULTY  IN DEPLOYING SOUND RISK ASSESSMENT AND ENTER-
PRISE RISK MANAGEMENT PROCEDURES.
  2. A SUMMARY OF THE PROCEEDINGS OF THE BOARD, WITH RECOMMENDATIONS FOR
IMPROVEMENT  OF  THE  STATE'S  RISK MANAGEMENT PRACTICES AND PROCEDURES,
SHALL BE INCLUDED IN THE ANNUAL REPORT OF THE  RISK  MANAGER.  THE  RISK
MANAGER  SHALL  TAKE INTO CONSIDERATION THE RECOMMENDATIONS PERIODICALLY
MADE BY THE BOARD IN CONDUCTING HIS OR HER MANAGEMENT AND  ABATEMENT  OF
POTENTIAL LIABILITY ACTIVITIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary  for  the  timely  implementation of this act on its effective date
shall be promulgated on or before such date.

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