S T A T E   O F   N E W   Y O R K
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                                  4273

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sen.  FOLEY  -- read twice and ordered printed, and when
  printed to be committed 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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04653-01-9
              

S. 4273                             2

  [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.  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:

S. 4273                             3

  (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.
  (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. 4273                             4

  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.