S T A T E O F N E W Y O R K
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9046
2009-2010 Regular Sessions
I N A S S E M B L Y
June 22, 2009
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Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend chapter 241 of the laws of 1930, defining the powers and
jurisdiction of the New York board of fire underwriters, in relation
to providing for minimum funding for the fire patrol and to confirming
that assets, revenues and receipts of the fire patrol be used only for
the fire patrol activities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Sections 14 and 15 of chapter 241 of the laws of 1930
defining the powers and jurisdiction of the New York board of fire
underwriters, as amended by chapter 181 of the laws of 1939, are amended
and a new section 15-a is added to read as follows:
S 14. Expenses of fire patrol. [In the month of June, nineteen hundred
thirty-nine, in the month of January, nineteen hundred forty, and in the
month of January of every second year thereafter, there shall be held a
meeting of the board of which ten days' previous notice shall be
inserted in at least two newspapers published in the city of New York.
At such meeting each member of the board and each incorporated insurance
company or association, although not a member, insuring property within
the jurisdiction of the fire patrol against loss or damage by fire or
sprinkler leakage, shall be entitled to one vote. A corporation or asso-
ciation not a member, may be represented by one of its officers or
agents. A majority of the whole number so represented shall have power
to decide upon the question of sustaining the fire patrol and, at the
meeting held in June, nineteen hundred thirty-nine, of fixing a maximum
amount of expenses which will be incurred therefor during the period
from July first, nineteen hundred thirty-nine to and including December
thirty-first, nineteen hundred thirty-nine, and, at each subsequent
meeting, of fixing a maximum amount which will be incurred therefor
during the two fiscal years next to ensue, which amount shall in no case
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14371-01-9
A. 9046 2
exceed two per centum on the aggregate of premiums returned as received,
as provided in the next section of this act; and the whole of such
amount or so much thereof as may be necessary, may be assessed upon the
companies or associations entitled to vote at such meeting in proportion
to the several amounts of premiums returned as received by each, as
provided in the next section, and such assessment shall be collectible
by the board in any court of law in the city or state of New York having
jurisdiction. The assessment made in June, nineteen hundred thirty-nine,
shall be payable September first, nineteen hundred thirty-nine, and the
annual assessments thereafter made shall be payable one-half thereof on
March fifteenth and one-half thereof on August fifteenth of each calen-
dar year.
S 15. Statement of premiums. In order to provide for the payment of
persons employed under the provisions of this act and the acquisition
and maintenance of necessary property, apparatus and equipment, the
board is empowered to require a statement to be furnished annually by
all corporations, associations, underwriters, agents or persons, of the
aggregate amount of premiums received by or on behalf of an insurance
company or association, which is a member of the board or which is enti-
tled to vote at the meeting provided for by the last preceding section,
for insuring property located in the jurisdiction of the fire patrol
against loss or damage by fire or sprinkler leakage, for and during the
twelve months ending with the thirty-first day of December of each year.
Such statement shall be sworn to by an executive officer of the corpo-
ration or association or by the agent or person so acting and effecting
such insurance and shall be filed with the treasurer of the board not
later than February seventh of each year. The treasurer of the board,
or other officer designated by it, within ten days after the first day
of January in each year, by written or printed demand signed by him,
shall require the filing of such statement by every such corporation,
association, underwriter, agent or person. Such demand may be delivered
personally at the office of such corporation, association, agent or
person, or at the residence of the proper officer thereof; every officer
of such corporation or association and every individual, agent or under-
writer, who shall, after February seventh of each year, neglect to
render the account, shall forfeit fifty dollars for the use of the board
and an additional twenty-five dollars for every day of neglect after
February seventh of each year. Such additional penalty shall be cumula-
tive and be computed and recovered up to the time of the trial of the
action for the recovery thereof. Such penalties may be sued for and
recovered, with costs, in any court of record having jurisdiction, by
and in the name of the board. The board at its meeting in June, nineteen
hundred thirty-nine is empowered to require a like statement of premiums
received to be filed for the period from and including January first,
nineteen hundred thirty-nine to July first, nineteen hundred thirty-
nine. Notice requiring the filing of such statement shall be given with-
in ten days after July first, nineteen hundred thirty-nine and such
statement shall be filed within thirty days after July first. Failure
to file such statement shall be subject to the same demand, forfeiture
and penalties as in case of failure to file the annual statement as
provided by this section] A. EACH YEAR, IN FEBRUARY, THE BOARD OF DIREC-
TORS OF THE NEW YORK BOARD OF FIRE UNDERWRITERS WILL ASSESS EACH MEMBER
OF THE BOARD OF FIRE UNDERWRITERS AND EACH INCORPORATED INSURANCE COMPA-
NY OR ASSOCIATION, INSURING PROPERTY WITHIN THE FIVE BOROUGHS OF THE
CITY OF NEW YORK AGAINST LOSS OR DAMAGE BY FIRE OR SPRINKLER LEAKAGE,
FOR THE EXPENSES OF THE NEW YORK FIRE PATROL.
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B. THE ASSESSMENT SHALL BE A MINIMUM AMOUNT OF ONE DOLLAR TWENTY-FIVE
CENTS PER ONE HUNDRED DOLLARS OF THE AGGREGATE OF PREMIUMS RETURNED AS
RECEIVED; THE MAXIMUM ASSESSMENT SHALL BE TWO DOLLARS PER ONE HUNDRED
DOLLARS OF THE AGGREGATE OF PREMIUMS RETURNED AS RECEIVED. THE ASSESS-
MENT WILL BE APPLIED UNIFORMLY ON PREMIUMS COLLECTED THROUGHOUT ALL FIVE
BOROUGHS OF THE CITY OF NEW YORK. THIS ASSESSMENT WILL BE KNOWN AS THE
"FIRE PATROL ASSESSMENT".
C. THE WHOLE OF SUCH AMOUNT WILL BE ASSESSED UPON THE COMPANIES OR
ASSOCIATES IN PROPORTION TO THE SEVERAL AMOUNTS OF PREMIUMS RETURNED AS
RECEIVED BY EACH, AS PROVIDED IN THE NEXT SECTION, AND SUCH ASSESSMENT
SHALL BE COLLECTIBLE AS PROVIDED BY LAW. ACTIONS TO COLLECT OUTSTANDING
ASSESSMENTS SHALL BE PROMPTLY INITIATED, AFTER A GRACE PERIOD OF FIFTEEN
DAYS.
S 15. STATEMENT OF PREMIUMS. A. IN ORDER TO PROVIDE FOR THE PAYMENT OF
EMPLOYEES AND OTHER EXPENSES UNDER THE PROVISIONS OF THIS ACT AND THE
ACQUISITION AND MAINTENANCE OF NECESSARY PROPERTY, APPARATUS AND EQUIP-
MENT, ALL ENTITIES LIABLE FOR ASSESSMENTS FOR THE FIRE PATROL AND THE
ELECTRICITY COMMITTEE, AS DESCRIBED HEREIN, SHALL RETURN TO THE BOARD OF
DIRECTORS OF THE NEW YORK BOARD OF FIRE UNDERWRITERS A STATEMENT OF THE
AGGREGATE AMOUNT OF PREMIUMS RECEIVED BY OR ON BEHALF OF AN INSURANCE
COMPANY OR ASSOCIATION FOR INSURING PROPERTY LOCATED IN THE CITY OF NEW
YORK AGAINST LOSS OF DAMAGE BY FIRE OR SPRINKLER LEAKAGE, FOR AND DURING
THE TWELVE MONTHS ENDING WITH THE THIRTY-FIRST DAY OF DECEMBER OF EACH
YEAR.
B. SUCH STATEMENT SHALL BE IN FORM AND CONTENT SIMILAR TO RETURNS
FILED WITH THE COMMISSIONER OF INSURANCE AND OTHER ENTITIES FOR THE
RETURN OF PREMIUMS ASSESSED FOR THE SUPPORT OF FIRE SERVICES IN NEW YORK
STATE AND FOR THE SUPPORT OF THE COMMISSIONER OF INSURANCE AND THE NEW
YORK DEPARTMENT OF INSURANCE. THE BOARD OF DIRECTORS OF THE NEW YORK
BOARD OF FIRE UNDERWRITERS WILL ADOPT A RECOMMENDED FORMAT AND CONTENT
FOR THE RETURNS DESCRIBED HEREIN.
C. THE BOARD OF DIRECTORS OF THE NEW YORK BOARD OF FIRE UNDERWRITERS
SHALL HAVE THE POWER TO REQUEST AND TO TIMELY RECEIVE SUPPORTING
DOCUMENTATION FOR THE RETURN DESCRIBED HEREIN. DOCUMENTS SHALL BE
PROVIDED WITHIN THIRTY DAYS OF REQUEST. THE BOARD OF DIRECTORS SHALL
HAVE THE POWER TO SEEK JUDICIAL OR ADMINISTRATIVE ENFORCEMENT OF DOCU-
MENT REQUESTS.
D. THE ANNUAL RETURN SHALL BE FILED WITH THE NEW YORK BOARD OF FIRE
UNDERWRITERS NO LATER THAN JANUARY THIRTY-FIRST.
S 15-A. ELECTRICITY COMMITTEE ASSESSMENT. A. IN ADDITION TO THE
ASSESSMENTS DESCRIBED IN SECTIONS 14 AND 15 OF THIS CHAPTER, THE NEW
YORK BOARD OF FIRE UNDERWRITERS WILL IMPOSE AN ANNUAL "ELECTRICITY
COMMITTEE" ASSESSMENT OF NO LESS THAN TEN CENTS PER ONE HUNDRED DOLLARS
AND NO MORE THAN FIFTY CENTS PER ONE HUNDRED DOLLARS, ON PREMIUMS FOR
FIRE, SPRINKLER LEAKAGE AND FIRE LOSS CASUALTY INSURANCE WRITTEN IN THE
FIVE BOROUGHS OF THE CITY OF NEW YORK. THIS "ELECTRICITY COMMITTEE"
ASSESSMENT WILL BE USED TO DEFRAY ACCUMULATED DEFICITS OF THE ELECTRICAL
INSPECTION SERVICE KNOWN AS THE ELECTRICITY COMMITTEE OF THE NEW YORK
BOARD OF FIRE UNDERWRITERS. THE "ELECTRICITY COMMITTEE" ASSESSMENT SHALL
BE APPLIED AS NEEDED TO FULLY FUND PENSION OBLIGATIONS IN FAVOR OF NEW
YORK BOARD OF FIRE UNDERWRITERS EMPLOYEES ASSOCIATED WITH THE ELECTRICAL
INSPECTION SERVICE.
B. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE NEW YORK BOARD OF
FIRE UNDERWRITERS MAY ELECT TO DISCONTINUE THE OPERATIONS OF THE ELEC-
TRICAL INSPECTION SERVICE, PROVIDED THAT ALL DEBTS AND OBLIGATIONS HAVE
BEEN FULLY PAID OR PROVIDED FOR.
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C. ALL PENSION OBLIGATIONS OF THE NEW YORK BOARD OF FIRE UNDERWRITERS,
FOR THE NEW YORK FIRE PATROL, AND ANY OTHER EMPLOYEES, WILL BE FULLY
FUNDED IN ACCORDANCE WITH FEDERAL LAW. PENSION OBLIGATIONS ASSOCIATED
WITH FIRE PATROL EMPLOYEES WILL BE FUNDED BY THE FIRE PATROL ASSESSMENT
OF SECTIONS 14, 15 AND 15-A OF THIS CHAPTER. OTHER PENSIONS WILL BE
FUNDED BY THE ELECTRICITY COMMITTEE ASSESSMENT OF SECTIONS 14, 15 AND
15-A OF THIS CHAPTER.
S 2. Section 12 of chapter 241 of the laws of 1930, relating to defin-
ing the powers and jurisdiction of the New York board of fire underwrit-
ers, is amended to read as follows:
S 12. Fire patrol. The fire patrol of the New York Board of Fire
Underwriters, as established pursuant to chapter eight hundred and
forty-six of the laws of eighteen hundred sixty-seven, is continued and
shall continue to exercise its powers and perform its duties within the
territorial jurisdiction authorized by such act and in such additional
territory as may be included within its jurisdiction pursuant to this
act. The board shall have power, upon the adoption of a resolution
therefor by a two-thirds affirmative vote, of the persons present and
voting at the meeting herein provided for, to extend the jurisdiction of
its fire patrol to such additional parts of the city of New York, except
the borough of Brooklyn, as shall be described in such resolution.
Notice of the time and place of the meeting at which such resolution is
to be submitted shall be published for at least ten days previous to
such meeting, in two newspapers published in the city of New York. Every
member of the board insuring property within the existing jurisdiction
of the fire patrol or within the territory to which it is proposed to
extend such jurisdiction shall be entitled to one vote at such meeting.
Every incorporated insurance company or association insuring property
located in such territory against loss or damage by fire or sprinkler
leakage shall also be entitled to one vote at such meeting, by an offi-
cer or agent, although not then a member of the board. If such resol-
ution be adopted by the required vote, the board may extend the juris-
diction of its fire patrol accordingly. If and when the Fire Insurance
Salvage Corps of Brooklyn, Long Island, a corporation incorporated by
chapter ten hundred and sixteen of the laws of eighteen hundred ninety-
five, shall be lawfully consolidated or merged with the New York Board
of Fire Underwriters, the jurisdiction of the fire patrol of the board
shall be extended to the borough of Brooklyn, subject to all the
provisions of this act. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY,
ALL ASSETS, REVENUES AND RECEIPTS DEDICATED TO THE NEW YORK FIRE PATROL
BY STATUTE, CUSTOM AND PRACTICE, CORPORATE ACTION OR DECISION, CONTRACT
OR AGREEMENT, DECISION OF LAW OR REGULATORY AGENCY, WILL BE USED SOLELY
FOR THE PURPOSES, BENEFIT, RIGHTS AND OBLIGATIONS INCURRED IN AND FOR
THE ACTIVITIES OF THE NEW YORK FIRE PATROL, AND THE NEW YORK BOARD OF
FIRE UNDERWRITERS ACTING IN REGARD TO THE NEW YORK FIRE PATROL.
S 3. (a) The commissioner of insurance is directed to study the
economic benefits of the New York fire patrol and to make a recommenda-
tion to the legislature as to the merits of extending the assessments
provided in section one of this act to business interruption insurance
carriers, underwriters, and reinsurers insuring against losses in the
five boroughs of the city of New York.
(b) The commissioner of insurance is directed to consult with offi-
cials of the city of New York, pursuant to Section 1402(e) of the Non
Profit code, and with all interested parties, in order to make recommen-
dations to resolve issues of corporate governance and operational effec-
tiveness of the New York board of fire underwriters, including but not
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limited to issues raised in the November, two thousand five, management
report of the New York board of fire underwriters.
(c) Within ninety days of the effective date of this legislation, the
commissioner of insurance is directed to report to the legislature the
findings and recommendations of the studies described in this section.
S 4. This act shall take effect immediately; provided, however, that
the assessments described in sections 14, 15 and 15-a of chapter 241 of
the laws of 1930, relating to defining the powers and jurisdiction of
the New York board of fire underwriters, as amended by section one of
this act, shall be pro-rated on a calendar year basis, from such effec-
tive date, and shall be returned and collected forthwith, no later than
sixty days from such effective date.