S T A T E O F N E W Y O R K
________________________________________________________________________
6600
2009-2010 Regular Sessions
I N A S S E M B L Y
March 6, 2009
___________
Introduced by M. of A. FIELDS -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to enabling the county of
Suffolk to enter into cooperative agreements with not-for-profit
corporations 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. Subsection (e) of section 4702 of the insurance law, as
added by chapter 689 of the laws of 1994, is amended and a new
subsection (k) is added to read as follows:
(e) "Municipal cooperative health benefit plan" or "plan" means any
plan established or maintained by two or more municipal corporations; OR
IN SUFFOLK COUNTY, ESTABLISHED BETWEEN A MUNICIPAL CORPORATION AND A
NOT-FOR-PROFIT CORPORATION PURSUANT TO SECTION FOUR THOUSAND SEVEN
HUNDRED FIVE-A OF THIS ARTICLE, pursuant to a municipal cooperation
agreement for the purpose of providing medical, surgical or hospital
services to employees or retirees of such municipal corporations and to
the dependents of such employees or retirees.
(K) "NOT-FOR-PROFIT CORPORATION" SHALL MEAN A NOT-FOR-PROFIT CORPO-
RATION EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL
REVENUE CODE.
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06361-01-9
A. 6600 2
(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
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 WITH NOT-FOR-PROFIT CORPORATIONS LOCATED WITHIN SUCH
COUNTY. SUFFOLK COUNTY HEREBY HAS THE AUTHORITY TO ENTER A MUNICIPAL
COOPERATION AGREEMENT FOR THE ESTABLISHMENT OF A MUNICIPAL COOPERATIVE
A. 6600 3
HEALTH BENEFIT PLAN UPON SUCH TERMS AND CONDITIONS AS DETERMINED AND
AGREED TO BY THE COUNTY OF SUFFOLK AND PARTICIPATING NOT-FOR-PROFIT
CORPORATIONS. SUCH AGREEMENT MAY, AT THE OPTION OF THE COUNTY OF
SUFFOLK, REQUIRE THAT EACH PARTICIPATING NOT-FOR-PROFIT CORPORATION PAY
AN ADMINISTRATIVE FEE TO THE COUNTY OF SUFFOLK FOR PARTICIPATION IN SUCH
PLAN. NOTHING IN SUCH ADMINISTRATIVE FEE REQUIREMENT 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.
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.
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(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:
(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.