S T A T E   O F   N E W   Y O R K
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                                  10400

                          I N  A S S E M B L Y

                             March 23, 2010
                               ___________

Introduced  by  M.  of  A. MURRAY, RAIA, MONTESANO, FITZPATRICK, GORDON,
  FINCH -- Multi-Sponsored by -- M.  of  A.  CALHOUN,  CONTE,  SALADINO,
  THIELE -- read once and referred to the Committee on Insurance

AN  ACT  to amend the insurance law, in relation to enacting the Suffolk
  county insurance consortium act which enables the county of Suffolk to
  enter into cooperative agreements with school  districts,  towns,  and
  villages located within such county to pay for the provision of health
  care services to their employees

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be cited  as  the  "Suffolk
county insurance consortium act".
  S  2. Subsection (a) of section 4703 of the insurance law, as added by
chapter 689 of the laws of 1994, is amended to read as follows:
  (a) No municipal corporation shall establish,  maintain  or  otherwise
participate in a municipal cooperative health benefit plan in this state
which  provides  benefits,  in whole or part, on a shared-funding basis,
unless the municipal cooperative health benefit plan:
  (1) obtains and maintains a certificate of authority from  the  super-
intendent pursuant to the provisions of this article; or
  (2)  is  an employee welfare fund, as defined in article forty-four of
this chapter that is administered by equal representation  of  employees
and employers; or
  (3) is exempt from the requirement of obtaining a license; or
  (4)  is,  and  continues  to be, a fully-insured municipal cooperative
health benefit plan; OR
  (5) IS ESTABLISHED BY SUFFOLK COUNTY, IN WHICH CASE NO APPLICATION FOR
OR RECEIPT OF A CERTIFICATE OF AUTHORITY PURSUANT TO THIS SECTION  SHALL
BE REQUIRED.
  S 3. The opening paragraphs of subsections (a), (b), (c), (d), (e) and
(f) of section 4705 of the insurance law, as added by chapter 689 of the
laws of 1994, are amended to read as follows:
  [The]  EXCEPT  IN  THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A
MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF

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

                                                           LBD04653-01-9

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SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
ARTICLE, THE municipal cooperation agreement, under which the  municipal
cooperative  health  benefit plan is established and maintained, and any
amendment  thereto,  shall  be  approved by each participating municipal
corporation by majority vote of each such corporation's governing  body,
and shall:
  [The]  EXCEPT  IN  THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A
MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF
SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
ARTICLE, THE municipal cooperation  agreement  shall  provide  that  the
plan's chief fiscal officer:
  [A]  EXCEPT  IN  THE  CASE  OF A MUNICIPAL COOPERATION AGREEMENT FOR A
MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF
SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
ARTICLE, A municipal cooperation agreement shall include a provision:
  [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION  AGREEMENT  FOR  A
MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
ARTICLE,  THE  municipal  cooperation  agreement  shall provide that the
governing board:
  [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION  AGREEMENT  FOR  A
MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
ARTICLE,  THE  municipal  cooperation  agreement  shall  provide for the
following to be prepared  and  furnished  to  the  governing  board,  to
participating  municipal corporations, to unions which are the exclusive
bargaining representatives of employees covered by the plan and  to  the
superintendent:
  [The]  EXCEPT  IN  THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A
MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF
SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
ARTICLE, THE municipal cooperation agreement shall  specify  the  rights
and  obligations of a municipal corporation withdrawing from a municipal
cooperative health benefit plan to any contribution (or  premium  equiv-
alent) refund or reserve fund or for any contingent assessment liability
or other obligation.
  S  4.  The  insurance law is amended by adding a new section 4705-a to
read as follows:
  S 4705-A. MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE
COUNTY OF SUFFOLK. SUFFOLK COUNTY HEREBY HAS THE AUTHORITY  TO  ENTER  A
MUNICIPAL  COOPERATION  AGREEMENT  FOR  THE ESTABLISHMENT OF A MUNICIPAL
COOPERATIVE HEALTH BENEFIT PLAN UPON SUCH TERMS AND CONDITIONS AS DETER-
MINED AND AGREED TO BY THE COUNTY OF SUFFOLK AND PARTICIPATING MUNICIPAL
CORPORATIONS. SUCH AGREEMENT  MAY,  AT  THE  OPTION  OF  THE  COUNTY  OF
SUFFOLK,  REQUIRE  THAT  EACH PARTICIPATING MUNICIPAL CORPORATION, OTHER
THAN SUCH COUNTY, PAY AN ADMINISTRATIVE FEE TO THE COUNTY OF SUFFOLK FOR
PARTICIPATION IN SUCH PLAN. NOTHING IN SUCH ADMINISTRATIVE FEE  REQUIRE-
MENT SHALL CONSTRUE SUFFOLK COUNTY AS DOING AN INSURANCE BUSINESS WITHIN
THE  MEANING  OF  SECTIONS ONE THOUSAND ONE HUNDRED ONE AND ONE THOUSAND
ONE HUNDRED TWO OF THIS CHAPTER.
  S 5. Section 4706 of the insurance law is  amended  by  adding  a  new
subsection (h) to read as follows:
  (H)  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY TO A MUNICIPAL
COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY  THE  COUNTY  OF  SUFFOLK
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.

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  S  6.  Section  4707  of  the insurance law is amended by adding a new
subsection (d) to read as follows:
  (D)  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY TO A MUNICIPAL
COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY  THE  COUNTY  OF  SUFFOLK
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
  S  7.  Section  4708  of  the insurance law is amended by adding a new
subsection (f) to read as follows:
  (F) THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  A  MUNICIPAL
COOPERATIVE  HEALTH  BENEFIT  PLAN  ESTABLISHED BY THE COUNTY OF SUFFOLK
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
  S 8. Section 4709 of the insurance law is  amended  by  adding  a  new
subsection (d) to read as follows:
  (D)  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY TO A MUNICIPAL
COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY  THE  COUNTY  OF  SUFFOLK
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
  S  9.  The  opening paragraph of subsection (a) of section 4710 of the
insurance law, as added by chapter 689 of the laws of 1994,  is  amended
to read as follows:
  [The]  EXCEPT  IN  THE  CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT
PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK PURSUANT TO SECTION FOUR THOU-
SAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE, THE governing  board  of  the
municipal cooperative health benefit plan shall:
  S  10.  Section  4711 of the insurance law, as added by chapter 689 of
the laws of 1994, is amended to read as follows:
  S 4711. Examinations. (a) [The] EXCEPT IN  THE  CASE  OF  A  MUNICIPAL
COOPERATIVE  HEALTH  BENEFIT  PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK,
THE superintendent may examine the affairs of  a  municipal  cooperative
health benefit plan as often as deemed necessary, but not less than once
in  every  three  years,  except  that the superintendent may extend the
three-year interval to no more than five years upon determining that the
three-year requirement is not necessary to safeguard  the  interests  of
the public or covered persons.
  (b)  [In] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT
PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK, IN connection with such exam-
inations, the superintendent  may  exercise  the  powers  set  forth  in
sections  three  hundred  four,  three  hundred five, three hundred six,
three hundred eight, three hundred  ten,  three  hundred  eleven,  three
hundred twelve, and three hundred thirteen of this chapter, and may also
require special reports from a municipal cooperative health benefit plan
as specified in section three hundred eight of this chapter.
  (c)  The governing board of every municipal cooperative health benefit
plan shall be responsible for the maintenance of  accurate  records  and
books of account in regard to the plan.
  (D)  IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTAB-
LISHED BY THE COUNTY OF SUFFOLK, THE SUPERINTENDENT SHALL NOT  BE  ENTI-
TLED  TO  EXAMINATION  OF  SUCH  BENEFIT PLAN NOR MAY THE SUPERINTENDENT
EXERCISE THE POWERS SET FORTH IN  SECTIONS  THREE  HUNDRED  FOUR,  THREE
HUNDRED FIVE, THREE HUNDRED SIX, THREE HUNDRED EIGHT, THREE HUNDRED TEN,
THREE  HUNDRED  ELEVEN, THREE HUNDRED TWELVE, AND THREE HUNDRED THIRTEEN
OF THIS CHAPTER, AND MAY ALSO NOT REQUIRE SPECIAL REPORTS FROM A MUNICI-
PAL COOPERATIVE HEALTH  BENEFIT  PLAN  AS  SPECIFIED  IN  SECTION  THREE
HUNDRED EIGHT OF THIS CHAPTER IN REGARD TO SUCH PLAN.
  S  11.  Section  4713  of the insurance law is amended by adding a new
subsection (d) to read as follows:

A. 10400                            4

  (D) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE  DISSOLUTION
OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY
OF SUFFOLK.
  S  12.  This  act  shall  take effect on the one hundred twentieth day
after it shall have become a law.