S T A T E O F N E W Y O R K
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10582
I N A S S E M B L Y
April 8, 2010
___________
Introduced by M. of A. MONTESANO -- read once and referred to the
Committee on Insurance
AN ACT to amend the insurance law, in relation to enacting the Nassau
county insurance consortium act which enables the county of Nassau 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 "Nassau
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 NASSAU 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
NASSAU 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16501-01-0
A. 10582 2
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
NASSAU 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
NASSAU 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
NASSAU 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
NASSAU 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
NASSAU 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 NASSAU. NASSAU 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 NASSAU AND PARTICIPATING MUNICIPAL
CORPORATIONS. SUCH AGREEMENT MAY, AT THE OPTION OF THE COUNTY OF NASSAU,
REQUIRE THAT EACH PARTICIPATING MUNICIPAL CORPORATION, OTHER THAN SUCH
COUNTY, PAY AN ADMINISTRATIVE FEE TO THE COUNTY OF NASSAU FOR PARTIC-
IPATION IN SUCH PLAN. NOTHING IN SUCH ADMINISTRATIVE FEE REQUIREMENT
SHALL CONSTRUE NASSAU 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 NASSAU
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
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 NASSAU
PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
A. 10582 3
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 NASSAU
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 NASSAU
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 NASSAU 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 NASSAU, 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 NASSAU, 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 NASSAU, THE SUPERINTENDENT SHALL NOT BE ENTITLED
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 CHAP-
TER, AND MAY ALSO NOT REQUIRE SPECIAL REPORTS FROM A MUNICIPAL COOPER-
ATIVE 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:
(D) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE DISSOLUTION
OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY
OF NASSAU.
S 12. This act shall take effect on the one hundred twentieth day
after it shall have become a law.