Assembly Bill A9504B

                                BILL NUMBER:A9504

TITLE OF BILL:  An act to repeal chapter 241 of the laws of 1930 relat-
ing to the New York Board of Fire Underwriters, relating to the elimi-
nation of such board; and to repeal chapter 181 of the laws of 1939
amending chapter 241 of the laws of 1930 relating to the amount and
assessment of expenses of the fire patrol, relating to the elimination
of such board

PURPOSE:  This bill would abolish the New York Board of Fire Underwrit-
ers, along with its assessment power, and permit the Secretary of State
to establish an electrical inspection pilot program if so desired.

SUMMARY OF PROVISIONS:  Section 1 - Repeals chapter 241 of the laws of
1930.

Section 2 - Repeals chapter 181 of the laws of 1939

Section 3 - Transfers any remaining assets of the Board to the State of
New York and permits the State to use, at its discretion, such assets to
support the operations of the newly formed Electrical Bureau of State
Fire.

Section 4- Authorizes the Secretary of State to establish, at his or her
discretion, an electrical inspection pilot program.

              

Section 5 - Effective date.

JUSTIFICATION:  The Board of Fire Underwriters (the "Board") was created
at the request of the insurance industry in the late 1800's, to assist
them in protecting insured's property in the City of New York. To attain
this goal, the Board created the Fire Patrol, the purpose of which was
to respond to fires at or near an insured's location and attempt to
remove, preserve or otherwise protect property contained therein from
such fire, or other harmful effects such as smoke or water damage. The
Fire Patrol was funded by self-assessments on Board members.

However, over time the Board found that the Fire Patrol was unable to
adequately protect property from fires or related damage (e.g. modern
electronics, prevalent throughout residences and offices, are often
damaged beyond use despite Patrol efforts). As such, the effectiveness
and use of the Fire Patrol diminished to the point where it was deter-
mined by the Board that it was no longer necessary and the self-assess-
ments were burdening member companies with unnecessary costs that only
increased the eventual cost to the consumer. The result was that the
Fire Patrol was disbanded in 2006.

Given that the original purpose of the Board is no longer relevant, it
is appropriate to provide for its dissolution.

In the 1930's, the Board also created the Bureau of Electricity, the
purpose of which was to perform electrical inspections for any munici-
palities, individuals or entities that requested them.

If the State deems that the Bureau may still have a public value in fire
prevention, the Secretary of State's office is authorized to conduct an
electrical inspection pilot program. Any assets held by the Board are
being transferred to New York State, which may use them in whatever
amount deemed necessary to support this pilot program.

PRIOR LEGISLATIVE HISTORY: new legislation

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: April 1, 2010.

                                BILL NUMBER:A9504A

TITLE  OF BILL:  An act to repeal chapter 241 of the laws of 1930 relat-
ing to the New York Board of Fire Underwriters, relating to  the  elimi-
nation  of  such  board;  and  to repeal chapter 181 of the laws of 1939
amending chapter 241 of the laws of 1930  relating  to  the  amount  and
assessment  of  expenses of the fire patrol, relating to the elimination
of such board

PURPOSE:; This bill would abolish the New York Board of Fire  Underwrit-
ers,  along with its assessment power, and permit the Secretary of State
to establish an electrical inspection pilot program if so desired.

SUMMARY OF PROVISIONS: Section 1 - Repeals chapter 241 of  the  laws  of
1930.

Section 2 - Repeals chapter 181 of the laws of 1939

Section  3 - Transfers any remaining assets of the Board to the State of
New York and permits the State to use, at its discretion, such assets to
support the operations of the newly formed Electrical  Bureau  of  State
Fire.

Section 4- Authorizes the Secretary of State to establish, at his or her
discretion, an electrical inspection pilot program.

              

Section 5 - Effective date.

JUSTIFICATION:  The Board of Fire Underwriters (the "Board") was created
at the request of the insurance industry in the late 1800's,  to  assist
them in protecting insured's property in the City of New York. To attain
this  goal,  the Board created the Fire Patrol, the purpose of which was
to respond to fires at or near an  insured's  location  and  attempt  to
remove,  preserve  or  otherwise protect property contained therein from
such fire, or other harmful effects such as smoke or water  damage.  The
Fire Patrol was funded by self-assessments on Board members.

However,  over  time  the Board found that the Fire Patrol was unable to
adequately protect property from fires or related  damage  (e.g.  modern
electronics,  prevalent  throughout  residences  and  offices, are often
damaged beyond use despite Patrol efforts). As such,  the  effectiveness
and  use  of the Fire Patrol diminished to the point where it was deter-
mined by the Board that it was no longer necessary and the  self-assess-
ments  were  burdening member companies with unnecessary costs that only
increased the eventual cost to the consumer. The  result  was  that  the
Fire Patrol was disbanded in 2006.

Given  that  the original purpose of the Board is no longer relevant, it
is appropriate to provide for its dissolution.

In the 1930's, the Board also created the  Bureau  of  Electricity,  the
purpose  of  which was to perform electrical inspections for any munici-
palities, individuals or entities that requested them.

If the State deems that the Bureau may still have a public value in fire
prevention,  the Secretary of State's office is authorized to conduct an
electrical inspection pilot program. Any assets held by  the  Board  are
being  transferred  to  New  York  State, which may use them in whatever
amount deemed necessary to support this pilot program.

PRIOR LEGISLATIVE HISTORY: new legislation

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: July 1, 2010.