S. 6068 2
PART A
Section 1. Subsection (d) of section 3231 of the insurance law, as
added by chapter 501 of the laws of 1992, is amended to read as follows:
(d) (1) Notwithstanding any other provision of this chapter to the
contrary, no policy form subject to this section shall be issued or
delivered, nor any insurance contract entered into, unless and until the
insurer has filed with the superintendent a schedule of premiums, not to
exceed twelve months in duration, to be paid under the policy forms and
obtained the superintendent's approval thereof. The superintendent may
refuse such approval if he or she finds that such premiums are exces-
sive, inadequate, or unfairly discriminatory. The superintendent may
consider the financial condition of such insurer in approving or disap-
proving any premium. In determining whether to approve the schedule of
premiums filed, the superintendent shall, subject to the provisions of
section three thousand two hundred thirty-three of this article, consid-
er the prior experience of the insurer's community pool and the insur-
er's projections relating to claim costs, utilization and administrative
expenses and shall not adjust the insurer's rates based upon the rates
approved for other insurers.
(2) AN INSURER SHALL PROVIDE SPECIFIC CLAIMS EXPERIENCE TO A MUNICIPAL
CORPORATION, AS DEFINED IN SUBSECTION (F) OF SECTION FOUR THOUSAND SEVEN
HUNDRED TWO OF THIS CHAPTER, COVERED BY THE INSURER UNDER A COMMUNITY
RATED POLICY WHEN THE MUNICIPAL CORPORATION REQUESTS ITS CLAIMS EXPERI-
ENCE FOR PURPOSES OF FORMING OR JOINING A MUNICIPAL COOPERATIVE HEALTH
BENEFIT PLAN CERTIFIED PURSUANT TO ARTICLE FORTY-SEVEN OF THIS CHAPTER.
NOTWITHSTANDING THE FORGOING PROVISIONS, NO INSURER SHALL BE REQUIRED TO
PROVIDE MORE THAN THREE YEARS' CLAIMS EXPERIENCE TO A MUNICIPAL CORPO-
RATION MAKING THIS REQUEST.
S 2. Subsection (d) of section 4317 of the insurance law, as added by
chapter 501 of the laws of 1992, is amended to read as follows:
(d) (1) This section shall also apply to contracts issued to a group
defined in subsection (c) of section four thousand two hundred thirty-
five OF THIS CHAPTER, including but not limited to an association or
trust of employers, if the group includes one or more member employers
or other member groups which have fifty or fewer employees or members
exclusive of spouses and dependents.
(2) A CORPORATION SHALL PROVIDE SPECIFIC CLAIMS EXPERIENCE TO A MUNIC-
IPAL CORPORATION, AS DEFINED IN SUBSECTION (F) OF SECTION FOUR THOUSAND
SEVEN HUNDRED TWO OF THIS CHAPTER, COVERED BY THE CORPORATION UNDER A
COMMUNITY RATED CONTRACT WHEN THE MUNICIPAL CORPORATION REQUESTS ITS
CLAIMS EXPERIENCE FOR PURPOSES OF FORMING OR JOINING A MUNICIPAL COOPER-
ATIVE HEALTH BENEFIT PLAN CERTIFIED PURSUANT TO ARTICLE FORTY-SEVEN OF
THIS CHAPTER. NOTWITHSTANDING THE FOREGOING PROVISIONS, NO CORPORATION
SHALL BE REQUIRED TO PROVIDE MORE THAN THREE YEARS' CLAIMS EXPERIENCE TO
A MUNICIPAL CORPORATION MAKING THIS REQUEST.
S 3. Paragraph 2 of subsection (a) of section 4704 of the insurance
law, as added by chapter 689 of the laws of 1994, is amended to read as
follows:
(2) except for any plan that provided medical, surgical and hospital
services on or before January first, nineteen hundred ninety-three
pursuant to a municipal cooperation agreement, the number of municipal
corporations participating in the municipal cooperative health benefit
plan shall be at least [five] THREE;
S 4. The superintendent of insurance shall order a study of the impact
to the community rated health insurance market of allowing a public
S. 6068 3
entity, as defined in paragraph 51 of subsection (a) of section 107 of
the insurance law, with fifty or fewer employees to join with public
entities with more than fifty employees to purchase health insurance
coverage under experience rated policies. The study shall be performed
by a member of the American academy of actuaries. The study shall be
completed and a report submitted by September 1, 2010 to the governor,
the superintendent of insurance, the temporary president of the senate
and the speaker of the assembly.
S 5. The superintendent of insurance shall conduct a study of the
impact of the reserve requirements established in section 4706 of the
insurance law on municipal cooperative health benefit plans and provide
recommendation for changes to such requirements. The study shall be
completed and a report submitted to the governor, the temporary presi-
dent of the senate and the speaker of the assembly by October 1, 2009.
S 6. This act shall take effect immediately.
PART B
Section 1. Section 99-r of the general municipal law, as amended by
chapter 165 of the laws of 2008, is amended to read as follows:
S 99-r. Contracts for services. Notwithstanding any other provisions
of law to the contrary, the governing board of any municipal corporation
may enter into agreements and/or contracts with any state agency includ-
ing any department, board, bureau, commission, division, office, coun-
cil, committee, or officer of the state, whether permanent or temporary,
or a public benefit corporation or public authority, or a soil and water
conservation district, and any unit of the state university of New York,
pursuant to and consistent with sections three hundred fifty-five and
sixty-three hundred one of the education law within or without such
municipal corporation to provide OR RECEIVE fuel, equipment, maintenance
and repair, supplies, water supply, street sweeping or maintenance,
sidewalk maintenance, RIGHT-OF-WAY MAINTENANCE, STORM WATER AND OTHER
drainage, sewage disposal, LANDSCAPING, MOWING, or any other services of
government. Such state agency, soil and water conservation district, or
unit of the state university of New York, within the limits of any
specific statutory appropriation authorized and made available therefor
by the legislature or by the governing body responsible for the opera-
tion of such state agency, soil and water conservation district, or unit
of the state university of New York may contract with any municipal
corporation for such services as herein provided. Any such contract may
be entered into by direct negotiations and shall not be subject to the
provisions of section one hundred three of this chapter.
S 2. Section 10 of the highway law is amended by adding a new subdivi-
sion 46 to read as follows:
46. HAVE THE AUTHORITY TO ENTER INTO AGREEMENTS AND/OR CONTRACTS TO
PROVIDE OR RECEIVE SERVICES PURSUANT TO SECTION NINETY-NINE-R OF THE
GENERAL MUNICIPAL LAW UPON SUCH TERMS AND CONDITIONS AS DEEMED APPROPRI-
ATE BY THE COMMISSIONER OR COMMISSIONER'S DESIGNEE.
S 3. Section 12 of the highway law, as amended by chapter 1110 of the
laws of 1971, subdivision 2 as amended by chapter 249 of the laws of
1972, subdivision 2-a as added by chapter 568 of the laws of 1986 and
subdivision 7 as added by chapter 691 of the laws of 1971, is amended to
read as follows:
S 12. Commissioner [of transportation] to provide for maintenance,
repair, and for control of snow and ice; roads and driveways on state
lands. 1. The maintenance and repair of improved state highways in towns
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and incorporated villages, exclusive, however, of the cost of maintain-
ing and repairing bridges having a span in excess of twenty feet shall
be under the direct supervision and control of the commissioner [of
transportation] and he OR SHE shall be responsible therefor. The cost of
such maintenance and repair shall be borne wholly by the state and be
paid from moneys appropriated therefor by the legislature. Such mainte-
nance and repair may be done in the discretion of the commissioner
either directly by the department [of transportation] or by contract
awarded to the lowest responsible bidder at a public letting after due
advertisement, and under such rules and regulations as the commissioner
[of transportation] may prescribe. The commissioner [of transportation]
shall also have the power to adopt such system as may seem expedient so
that each section of such highways shall be effectively and economically
preserved, maintained and repaired.
2. The maintenance of state highways shall include the control of snow
and ice on such highways or any parts thereof, as the commissioner [of
transportation] may deem to be necessary to provide reasonable passage
and movement of vehicles over such highways. The commissioner [of trans-
portation] is authorized also to erect snow fences at suitable
locations. The work of such control of snow and ice may be done by any
municipality which for the purposes of this section shall include only a
county, city, town or village. The governing board or body of any such
municipality and the commissioner [of transportation] are hereby author-
ized to enter into an agreement for the performance of the work of such
control of snow and ice upon such terms, rules and regulations as may be
deemed by the commissioner [of transportation] to be for the best inter-
est of the public. Such agreement may provide for periodic payments
based upon a percentage of the estimated total cost. Any agreement
authorized by this subdivision shall be for a term of [three] UP TO FIVE
years and at the expiration of [each] THE year PRECEDING THE LAST YEAR
of the term specified in the agreement, as such term may be extended as
herein provided, the municipality shall notify the commissioner either
(a) that it requests, with the approval of the commissioner, that the
term of the agreement be extended for [one year] A SPECIFIED TERM OF UP
TO FIVE YEARS or (b) it intends not to extend the agreement and such
agreement shall expire at the end of the term. If the municipality fails
to notify the commissioner as herein provided, it shall be deemed that
the municipality intends not to extend the agreement. SUCH AGREEMENT
MAY BE TERMINATED DURING THE SPECIFIED TERM PROVIDED THE MUNICIPALITY
SHALL NOTIFY THE COMMISSIONER EIGHTEEN MONTHS PRIOR TO SUCH TERMINATION.
If any such agreement expires, a new agreement between the commissioner
and a municipality may be entered into for a term of [three] UP TO FIVE
years, with extended term or terms upon notification as above provided.
Whenever the commissioner shall deem the work of control of snow and ice
by any municipality to be inadequate or unsatisfactory according to the
terms of any such agreement, he OR SHE may, by official order to be
filed in [his office] THE DEPARTMENT, and by filing a certified copy
thereof in the office of the department of state, cancel said agreement,
and the payments thereunder provided by the state shall cease; whereupon
the commissioner may carry out the work of control of snow and ice. The
official order provided in this subdivision shall become effective at
the expiration of five days after the commissioner shall mail a certi-
fied copy thereof to the clerk or other official who performs related
duties in such municipality. The governing board or body of any such
municipality is authorized to appropriate such sum as it deems necessary
to enable such municipality to perform the terms of such agreement. The
S. 6068 5
work of such control of snow and ice may be done by any of the methods
provided in subdivision one of this section for the work of maintenance
and repair, or by a combination of such methods. Any county is hereby
authorized to enter into a contract with another municipality located
within the same county for the performance of the work of such control
of snow and ice as a subcontractor under any agreement with the commis-
sioner [of transportation] as such agreement is hereinbefore provided.
Moneys received by a county under the terms of any agreement authorized
by this subdivision shall be credited to the fund from which moneys were
appropriated to enable the county to perform the terms of such agree-
ment. Moneys so received by a town shall be credited to the highway
fund. Moneys so received by a city or village shall be credited to the
general fund.
2-a. (a) Except as provided hereafter the state shall indemnify and
hold harmless such municipalities for any and all liability for damages
for personal injury, injury to property or wrongful death for losses
arising from or occasioned by the manner of performance of the functions
under any agreement with a municipality for the control of snow and ice
pursuant to this section.
(b) In no event shall the state be obligated to defend or indemnify
such municipality, in any action, proceeding, claim or demand arising
out of the actual operation of an insured vehicle or vehicle subject to
self-insurance while engaged in the operation of snow and ice control
functions under such agreement.
(c) The municipality shall be entitled to representation by the attor-
ney general in any claim described in paragraph (a) of this subdivision,
provided, however, that the municipality shall be entitled to itself
defend any such action, proceeding, claim or demand whenever the attor-
ney general determines, based upon his investigation and review of the
facts and circumstances of the case that representation by the attorney
general would be inappropriate, or whenever a court of competent juris-
diction determines that a conflict of interest exists and that the muni-
cipality is entitled to be separately represented. Whenever the munici-
pality is entitled to defend the action itself, the state shall
reimburse the municipality for any and all costs and expenses, includ-
ing, but not limited to, counsel fees and disbursements.
(d) The state shall indemnify and save harmless such municipality in
the amount of any judgment obtained against such municipality in any
state or federal court on any claim described in paragraph (a) of this
subdivision, or in the amount of any settlement of such claim, or shall
pay such judgment or settlement; provided, however, that the act or
omission from which such judgment or settlement arose occurred while the
municipality was acting within the scope of its functions for control of
snow and ice; provided, further, that no stipulation of settlement of
any such action, proceeding, claim or demand shall be made or executed
without approval of the attorney general and of the commissioner [of
transportation] or his designee. Payment of any claim made pursuant to
settlement shall not exceed the sum of fifty thousand dollars. Nothing
herein shall authorize the state to indemnify or save harmless with
respect to punitive or exemplary damages.
(e) The duty to defend or indemnify and save harmless prescribed by
this subdivision shall be conditioned upon (i) delivery to the attorney
general or an assistant attorney general at the office of the department
of law located in Albany or New York city and by delivery to the commis-
sioner [of transportation] or his designee a copy of any claim, summons,
complaint, process, notice, demand or other pleading within ten days
S. 6068 6
after such municipality is served with such document and (ii) the full
cooperation of the municipality in the defense of such action, proceed-
ing, claim or demand and in the defense of any action, proceeding, claim
or demand against the state based upon the same act or omission, and in
the prosecution of any appeal.
(f) The benefits of this subdivision shall inure only to such munici-
palities and shall not enlarge or diminish the rights of any other party
nor shall any provision of this subdivision be construed to effect,
alter or repeal any provision of the workers' compensation law.
(g) This subdivision shall not in any way affect the obligation of any
claimant to give notice to the state under section ten of the court of
claims act or any other provision of law.
(h) The provisions of this subdivision shall not be construed to
impair, alter, limit or modify the rights and obligations of any insurer
under any insurance agreement.
(i) Except as otherwise specifically provided in this subdivision, the
provisions of this subdivision shall not be construed in any way to
impair, alter, limit, modify, abrogate or restrict any immunity avail-
able to or conferred upon any unit, entity, officer or employee of the
state or municipality or any other level of government, or any right to
defense and indemnification provided for any governmental officer or
employee by, in accordance with, or by reason of, any other provision of
state or federal statutory or common law.
3. The commissioner [of transportation] shall have the power to
purchase (a) materials for such maintenance and repair, except where
such work is done by contract, and to contract for the delivery thereof
at convenient intervals along such highways, and (b) equipment and
appliances that he may deem necessary to carry out the provisions of
this section. Any municipality, acting by and through its authorized
official, is hereby empowered to rent its machinery, tools, equipment,
and storage space, to the state, acting by and through the commissioner
[of transportation], for the purpose of such control of snow and ice
upon such terms and at such rate as may be agreed between the munici-
pality and the commissioner [of transportation]. Notwithstanding the
provisions of any general, special or local law or of any charter, the
governing board or body of any such municipality is hereby authorized to
sell such machinery, tools and equipment to the state, acting by and
through the commissioner [of transportation], for the purposes of this
section and without competitive bidding or other limitation or
restriction provided in any general, special or local law or of any
charter, and the commissioner [of transportation], may, upon approval by
the state comptroller and the state commissioner of general services,
purchase such machinery, tools and equipment from any such municipality
as herein provided.
4. Whenever funds therefor are made available, the commissioner [of
transportation] shall have power to acquire for the state, by purchase,
or by appropriation through the procedure described in section thirty of
this chapter, property for the purpose of storing, maintaining or proc-
essing construction and maintenance supplies, material or equipment and
for the purpose of providing, erecting and maintaining offices for
department personnel and structures for storing, maintaining or process-
ing construction and maintenance materials or equipment.
5. Whenever a state highway has been constructed at a greater width
than that provided in the original plans, upon petition of a village, as
provided in sections forty-six and forty-seven OF THIS CHAPTER, or upon
petition of a town or county, as provided in sections forty-eight,
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forty-nine, or fifty-nine OF THIS CHAPTER, or whenever such highway has
been widened by a town or county under a permit granted as provided in,
or under conditions and regulations prescribed pursuant to section
fifty-two OF THIS CHAPTER, the additional width of pavement shall be
deemed to be a part of the highway and shall be maintained by the
commissioner [of transportation] as provided herein, but in no case
where any such highway has been widened as provided above, shall the
state be responsible for the maintenance of any curb or of any paved
gutter or paved shoulder, provided, however, that on any highway main-
tained by the state the commissioner shall have authority to clean any
pavement or paved gutter or repair any unpaved shoulder or unpaved
gutter outside of the pavement maintained by the state, where necessary
for the protection of such pavement.
6. Whenever the head of any state department having jurisdiction or
control over lands owned and occupied by the state, requests the commis-
sioner [of transportation] to maintain and to repair any road and drive-
way which is located on, over and across such lands, the commissioner
[of transportation] is, notwithstanding the provisions of any general,
special or local law, authorized to grant such request by his official
order therefor. Such official order shall contain a general description
of any such road and driveway. A certified copy of such official order
shall be filed by the commissioner [of transportation] in the office of
(a) the state department having jurisdiction or control over such lands,
and (b) the department of audit and control. Thereupon any such road
and driveway shall be maintained and repaired under the direct super-
vision and control of the commissioner [of transportation] in the same
manner as is provided in this section for the maintenance and repair of
improved state highways in towns and in incorporated villages.
7. Whenever the head of any state department, agency, institution or
public benefit corporation having jurisdiction or control over the lands
owned and occupied by the state or such department, agency, institution
or public benefit corporation requests the commissioner to construct,
reconstruct, and/or maintain any loop or peripheral roadway which is or
is to be located on, around, over, or across such lands, notwithstanding
the provisions of any general, special or local law, the commissioner is
authorized to grant such request and undertake such construction, recon-
struction and/or maintenance. Before undertaking the work of
construction, reconstruction and/or maintenance of such roadways, the
commissioner and the head of the state department, agency, institution
or public benefit corporation shall enter into a written agreement,
subject to the approval of the director of the budget, providing the
funds therefor, or reimbursement by such state department, agency,
institution or public benefit corporation of the funds therefor, includ-
ing all costs incurred by the department in connection with such
construction, reconstruction and/or maintenance. Where such loop or
peripheral roadway is to be constructed, reconstructed and/or maintained
on lands occupied by either the state university of New York or the
state university construction fund, both the state university of New
York and the state university construction fund shall be parties to such
agreement. Such roadway shall be constructed, or reconstructed, to
mutually agreeable standards, in the same manner as state highways are
constructed or reconstructed pursuant to this chapter. The maintenance
of such roadway shall be in the same manner as provided for state high-
ways in this chapter. If such a maintenance agreement extends for a
period greater than one year, the funds shall be made available for, or
reimbursed, on an annual basis. The head of such state department, agen-
S. 6068 8
cy, institution or public benefit corporation may terminate such mainte-
nance agreement upon six months written notice to the commissioner
making provision for the department [of transportation] to be reimbursed
for all costs incurred by such department up to such termination date.
In connection with the maintenance of such a roadway the commissioner
shall cause an official order to be issued therefor. Such official order
shall contain a general description of such roadway. A certified copy of
such official order shall be filed by the commissioner in the office of
the head of the state department, agency, institution or public benefit
corporation making such request for maintenance and with the department
of audit and control.
S 4. This act shall take effect immediately.
PART C
Section 1. Section 351 of the public health law, subdivision 1 as
amended by chapter 83 of the laws of 1975, is amended to read as
follows:
S 351. County or part-county health commissioner, PUBLIC HEALTH DIREC-
TOR OR COUNTY HEALTH DIRECTOR; appointment; compensation. 1. The board
of health of each county and part-county health district OR OTHER BODY
HAVING THE POWERS AND DUTIES OF A BOARD OF HEALTH OF A COUNTY OR
PART-COUNTY HEALTH DISTRICT or the county executive in those counties
where the county charter provides that said commissioner is to be
appointed by the county executive shall appoint a county health commis-
sioner, COUNTY HEALTH DIRECTOR OR, WHEN AUTHORIZED UNDER THE STATE SANI-
TARY CODE, PUBLIC HEALTH DIRECTOR; except, however,
(A) that the boards of health of not more than three county or part-
county health districts OR OTHER BODIES HAVING THE POWERS AND DUTIES OF
A BOARD OF HEALTH OF A COUNTY OR PART-COUNTY HEALTH DISTRICT may appoint
the same person to serve as county health commissioner, COUNTY HEALTH
DIRECTOR OR, WHEN AUTHORIZED BY THE STATE SANITARY CODE, PUBLIC HEALTH
DIRECTOR for said health districts, if the total population of health
districts is not in excess of one hundred fifty thousand according to
the latest federal decennial census, provided the approval of the
commissioner is obtained[.]; OR
[The] (B) THE board of health OR OTHER BODY HAVING THE POWERS AND
DUTIES OF A BOARD OF HEALTH OF A COUNTY OR PART-COUNTY HEALTH DISTRICT
of any county health district with a population of less than thirty-five
thousand [population] according to the latest federal decennial census
may appoint the same person employed by a contiguous county or part-
county health district to serve as county health commissioner, COUNTY
HEALTH DIRECTOR OR, WHEN AUTHORIZED BY THE STATE SANITARY CODE, PUBLIC
HEALTH DIRECTOR without regard to the total population of both health
districts, provided the approval of the commissioner is obtained.
[2.] THE COMMISSIONER SHALL PERIODICALLY REVIEW HIS OR HER DETERMI-
NATION TO ENSURE SUCH EMPLOYMENT OF THE SAME COUNTY HEALTH DIRECTOR,
DIRECTOR OF PUBLIC HEALTH OR COUNTY HEALTH COMMISSIONER CONTINUES TO
SERVE THE INTEREST OF PUBLIC HEALTH AND MAY TERMINATE HIS OR HER
APPROVAL AT HIS OR HER DISCRETION.
2. IF THE COMMISSIONER HAS APPROVED THE APPOINTMENT OF THE SAME PERSON
TO SERVE AS THE COUNTY COMMISSIONER OF HEALTH OR PUBLIC HEALTH DIRECTOR
OF MORE THAN ONE COUNTY OR PART-COUNTY HEALTH DISTRICT PURSUANT TO
SUBDIVISION ONE OF THIS SECTION, THEN DURING THE CONTINUATION OF SUCH
APPROVAL THE COMMISSIONER MAY ALSO AUTHORIZE THE SAME MEMBERS TO BE
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APPOINTED TO THE BOARD OF HEALTH OF EACH RESPECTIVE HEALTH DISTRICT,
NOTWITHSTANDING THEIR RESIDENCY IN THE OTHER COUNTY.
3. ANY BOARDS OF HEALTH OR OTHER BODIES HAVING THE POWERS AND DUTIES
OF A BOARD OF HEALTH OF A COUNTY OR PART-COUNTY HEALTH DISTRICT HAVING
THE SAME MEMBERS SHALL ANNUALLY SUBMIT SUCH INFORMATION AND REPORTS
REGARDING THE EFFECT OF SUCH EMPLOYMENT ON ADMINISTRATION OF THE RESPEC-
TIVE HEALTH DISTRICTS AND THE PROVISION OF PUBLIC HEALTH SERVICES AS THE
COMMISSIONER MAY REQUIRE. THE COMMISSIONER SHALL USE SUCH INFORMATION IN
DETERMINING WHETHER SUCH COMMON MEMBERSHIP CONTINUES TO SERVE THE INTER-
EST OF PUBLIC HEALTH.
4. The county health commissioner OR PUBLIC HEALTH DIRECTOR shall
possess such qualifications for office as are prescribed in the sanitary
code.
[3.] 5. The county health commissioner OR PUBLIC HEALTH DIRECTOR shall
serve for a term of six years and shall not be removed during the term
for which he OR SHE shall have been appointed, except upon written
charges after a hearing and upon notice.
[4.] 6. The county health commissioner OR PUBLIC HEALTH DIRECTOR shall
receive such compensation as may be fixed by the board of supervisors
OR, IF THE COMMISSIONER'S APPROVAL HAS BEEN OBTAINED FOR THE EMPLOYMENT
OF THE SAME PERSON AS THE COUNTY HEALTH COMMISSIONER OR PUBLIC HEALTH
DIRECTOR PURSUANT TO SUBDIVISION ONE OF THIS SECTION, BY THE BOARDS OF
SUPERVISORS.
S 2. This act shall take effect immediately.
PART D
Section 1. Subdivision 1 of section 103 of the general municipal law,
as amended by chapter 741 of the laws of 2005, is amended to read as
follows:
1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an expenditure of
more than [twenty] THIRTY-FIVE thousand dollars and all purchase
contracts involving an expenditure of more than ten thousand dollars,
shall be awarded by the appropriate officer, board or agency of a poli-
tical subdivision or of any district therein including but not limited
to a soil conservation district, to the lowest responsible bidder
furnishing the required security after advertisement for sealed bids in
the manner provided by this section. In any case where a responsible
bidder's gross price is reducible by an allowance for the value of used
machinery, equipment, apparatus or tools to be traded in by a political
subdivision, the gross price shall be reduced by the amount of such
allowance, for the purpose of determining the low bid. In cases where
two or more responsible bidders furnishing the required security submit
identical bids as to price, such officer, board or agency may award the
contract to any of such bidders. Such officer, board or agency may, in
his or its discretion, reject all bids and readvertise for new bids in
the manner provided by this section. For purposes of this section,
"sealed bids", as that term applies to purchase contracts, shall include
bids submitted in an electronic format, provided that the governing
board of the political subdivision or district, by resolution, has
authorized the receipt of bids in such format. Submission in electronic
format may not, however, be required as the sole method for the
submission of bids. Bids submitted in an electronic format shall be
transmitted by bidders to the receiving device designated by the poli-
S. 6068 10
tical subdivision or district. Any method used to receive electronic
bids shall comply with article three of the state technology law, and
any rules and regulations promulgated and guidelines developed there-
under and, at a minimum, must (a) document the time and date of receipt
of each bid received electronically; (b) authenticate the identity of
the sender; (c) ensure the security of the information transmitted; and
(d) ensure the confidentiality of the bid until the time and date estab-
lished for the opening of bids. The timely submission of an electronic
bid in compliance with instructions provided for such submission in the
advertisement for bids and/or the specifications shall be the responsi-
bility solely of each bidder or prospective bidder. No political subdi-
vision or district therein shall incur any liability from delays of or
interruptions in the receiving device designated for the submission and
receipt of electronic bids.
S 2. This act shall take effect immediately, provided, however that
the amendments to subdivision 1 of section 103 of the general municipal
law made by section one of this act shall not affect the expiration of
such subdivision and shall be deemed to expire therewith.
PART E
Section 1. Section 2431 of the public authorities law is amended by
adding a new closing paragraph to read as follows:
IT IS FURTHER DECLARED TO BE IN THE PUBLIC INTEREST AND IT IS THE
POLICY OF THE STATE TO PROVIDE A MEANS BY WHICH A MUNICIPALITY IN THE
STATE CAN TAKE ADVANTAGE OF THE OPPORTUNITIES FOR BORROWING TO PROVIDE
FOR PUBLIC IMPROVEMENTS AFFORDED BY THE AMERICAN RECOVERY AND REINVEST-
MENT ACT OF 2009 AND TO DO SO BY AUTHORIZING A STATE INSTRUMENTALITY TO
BORROW MONEY AND USE THE PROCEEDS TO PURCHASE OBLIGATIONS ISSUED BY A
MUNICIPALITY UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009,
THEREBY RESULTING IN EFFICIENCIES AND INTEREST RATE SAVINGS TO THE MUNI-
CIPALITY.
S 2. Subdivisions 2, 3 and 10 of section 2432 of the public authori-
ties law, as amended by section 67 of part H of chapter 83 of the laws
of 2002, are amended, and two new subdivisions 25 and 26 are added to
read as follows:
(2) "Bonds" and "Notes". The bonds and notes, including any special
program bonds [and], special school purpose bonds, AND RECOVERY ACT
BONDS, respectively issued by the agency pursuant to this title. Bonds
and notes shall not include any tax lien collateralized securities
issued pursuant to this title.
(3) "Municipal Bond". A bond or note or evidence of debt payable from
any local revenues, including taxes, assessments and rents, which a
municipality may lawfully issue to finance local improvements and public
purposes, INCLUDING LOCAL ARRA BONDS, but does not include (a) any bond
or note or evidence of debt issued by any other state or any public body
or municipal corporation thereof, (b) any special program agreement, or
(c) any special school purpose agreement or any special school deficit
program agreement.
(10) "Debt Service Reserve Fund Requirement". With respect to any debt
service reserve fund created by section [two thousand four] TWENTY-FOUR
hundred thirty-nine of this title relating to bonds other than special
program bonds or special school purpose bonds or special school deficit
program bonds OR RECOVERY ACT BONDS, as of any particular date of compu-
tation, an amount of money equal to the greatest of the respective
amounts, for the then current or any succeeding calendar year, of annual
S. 6068 11
debt service payments required to be made to the agency on all municipal
bonds purchased with the proceeds of bonds which bonds are secured by
such debt service reserve fund, such annual debt service payments for
any calendar year being an amount of money equal to the aggregate of (a)
all interest payable during such calendar year on all municipal bonds
purchased by the agency and then outstanding on said date of computation
which are secured by such debt service reserve fund, plus (b) the prin-
cipal amount of all municipal bonds purchased by the agency and then
outstanding on said date of computation which mature during such calen-
dar year and are secured by such debt service reserve fund; and with
respect to any debt service reserve fund created by section [two thou-
sand four] TWENTY-FOUR hundred thirty-nine of this title relating to an
issue or issues of special program bonds or special school purpose bonds
or special school deficit program bonds OR RECOVERY ACT BONDS, such
amount as shall be determined by the agency.
(25) "RECOVERY ACT BONDS". AN ISSUE OF BONDS OF THE AGENCY, ALL OR A
PORTION OF THE PROCEEDS OF WHICH ARE USED TO PURCHASE LOCAL ARRA BONDS.
(26) "LOCAL ARRA BONDS". A MUNICIPAL BOND ISSUED TO FINANCE OR REFI-
NANCE PURPOSES ELIGIBLE, IN WHOLE OR IN PART, FOR SUBSIDIES OR TAX CRED-
ITS UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009.
S 3. Section 2434 of the public authorities law is amended by adding a
new subdivision 7-b to read as follows:
(7-B) TO ACQUIRE AND CONTRACT TO ACQUIRE LOCAL ARRA BONDS, AND TO
ENTER INTO ARRANGEMENTS WITH A MUNICIPALITY FOR THE PURCHASE OF ITS
LOCAL ARRA BONDS;
S 4. Subdivisions 1 and 2 of section 2435 of the public authorities
law, subdivision 1 as amended by chapter 346 of the laws of 1974, subdi-
vision 2 as added by chapter 902 of the laws of 1972, are amended to
read as follows:
1. The agency may purchase, and contract to purchase, municipal bonds
from municipalities at such price or prices, upon such terms and condi-
tions and in such manner, not inconsistent with the provisions of the
local finance law, as the agency shall deem advisable; provided, howev-
er, that the average interest rate payable on all municipal bonds (taken
as a group) purchased with the proceeds of an issue of bonds shall equal
or exceed the interest rate on such issue of bonds[; and provided
further, however, that the]. THE agency shall not purchase the municipal
bonds of any municipality if (I) the aggregate principal amount thereof,
together with the aggregate principal balances of the municipal bonds of
such municipality then outstanding and held by the agency, exceed an
amount equal to ten percent of the aggregate principal amount of the
statutory authorization at the time for the issuance of bonds and notes,
as provided in section twenty-four hundred thirty-eight of this title,
and [the agency shall not purchase the municipal bonds of any munici-
pality if] (II) the aggregate principal amount thereof exceeds an amount
equal to fifty percent of the aggregate principal amount of all munici-
pal bonds proposed to be so purchased at the time; PROVIDED, HOWEVER,
THAT THIS SENTENCE SHALL NOT APPLY TO LOCAL ARRA BONDS.
2. The agency shall require as a condition of purchase of municipal
bonds from municipalities that each such municipality shall agree (i) to
pledge its full faith and credit for the payment of the principal of and
interest on such municipal bonds, (ii) to make annual appropriations for
amounts required for the payment of such principal and interest, and
(iii) if at any time the municipality fails to make the required appro-
priation to pay such principal and interest, or fails to make the
payment of the required principal and interest, the provisions of
S. 6068 12
section twenty-four hundred [and] thirty-six AND/OR TWENTY-FOUR HUNDRED
THIRTY-SIX-B of this title shall take effect. All municipalities selling
municipal bonds to the agency are hereby authorized to make and carry
out the agreements with the agency required in this subdivision.
S 5. The public authorities law is amended by adding a new section
2436-b to read as follows:
S 2436-B. LOCAL ARRA BONDS. (1) THE AGENCY MAY PURCHASE LOCAL ARRA
BONDS USING THE PROCEEDS OF RECOVERY ACT BONDS, SUBJECT TO THE
PROVISIONS OF THIS SECTION AND TO ANY OTHER PROVISION OF LAW APPLICABLE
TO THE MUNICIPALITY AND BONDS IT ISSUES, INCLUDING ANY DEBT LIMITATION
APPLICABLE TO THE MUNICIPALITY THAT ISSUED THE LOCAL ARRA BOND, AS WELL
AS TO THE OTHER PROVISIONS OF THIS TITLE. TO THE EXTENT THAT ANY SUCH
OTHER PROVISION OF LAW CONFLICTS WITH A PROVISION OF THIS SECTION, THE
PROVISION OF THIS SECTION SHALL CONTROL, EXCEPT AS OTHERWISE STATED.
(2) SUBJECT TO THE PROVISIONS OF THIS SECTION:
(A) LOCAL ARRA BONDS ISSUED BY A COUNTY, EXCEPT A COUNTY WHOLLY WITHIN
A CITY, MAY BE ADDITIONALLY SECURED BY A PLEDGE TO THE AGENCY OF ITS
AVAILABLE COUNTY SALES TAX REVENUES SUBJECT TO THE PROVISIONS OF SUBDI-
VISION FIVE OF THIS SECTION.
(B) LOCAL ARRA BONDS ISSUED BY A CITY MAY BE ADDITIONALLY SECURED BY A
PLEDGE TO THE AGENCY OF ITS AVAILABLE CITY SALES TAX REVENUES OR ITS
AVAILABLE MORTGAGE RECORDING TAX REVENUES, OR BOTH SUBJECT TO THE
PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION.
(C) LOCAL ARRA BONDS ISSUED BY A TOWN MAY BE ADDITIONALLY SECURED BY A
PLEDGE TO THE AGENCY OF ITS AVAILABLE MORTGAGE RECORDING TAX REVENUES
SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION.
(D) LOCAL ARRA BONDS ISSUED BY A VILLAGE MAY BE ADDITIONALLY SECURED
BY A PLEDGE TO THE AGENCY OF ITS AVAILABLE MORTGAGE RECORDING TAX REVEN-
UES SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION.
(3) (A) NOTHING CONTAINED IN THIS TITLE SHALL LIMIT THE RIGHT AND
OBLIGATIONS OF A MUNICIPALITY TO COMPLY WITH THE PROVISIONS OF ANY
EXISTING CONTRACT WITH OR FOR THE BENEFIT OF THE HOLDERS OF ANY OF ITS
OTHER BONDS, NOTES OR OTHER OBLIGATIONS.
(B) NOTHING CONTAINED IN THIS TITLE SHALL BE CONSTRUED TO LIMIT THE
POWER OF A MUNICIPALITY TO DETERMINE, FROM TIME TO TIME, WITHIN AVAIL-
ABLE FUNDS FOR THE MUNICIPALITY, THE PURPOSES FOR WHICH EXPENDITURES ARE
TO BE MADE BY THE MUNICIPALITY AND THE AMOUNTS OF SUCH EXPENDITURES.
(C) NOTHING CONTAINED IN THIS TITLE SHALL ALTER, LIMIT, MODIFY OR
IMPAIR THE RIGHT OF ANY SCHOOL DISTRICT OR OF ANY CITY, TOWN, OR VILLAGE
WITHIN A COUNTY TO RECEIVE FROM THE COUNTY NET COLLECTIONS, AS AUTHOR-
IZED BY SECTION TWELVE HUNDRED SIXTY-TWO OF THE TAX LAW OR OTHER APPLI-
CABLE PROVISION OF PART FOUR OF ARTICLE TWENTY-NINE OF THE TAX LAW OR BY
AN UNCONSOLIDATED STATE LAW THAT NOTWITHSTANDS SUCH PROVISION OF THE TAX
LAW, FROM THE COUNTY'S SALES AND COMPENSATING USE TAXES IMPOSED PURSUANT
TO THE AUTHORITY OF SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF THE
TAX LAW. FURTHER, NOTHING CONTAINED IN THIS TITLE SHALL ALTER, LIMIT,
MODIFY OR IMPAIR THE RIGHT OF ANY CITY OR TOWN WITHIN A COUNTY TO
RECEIVE FROM THE COUNTY THE NET AMOUNT OF MORTGAGE RECORDING TAX REVEN-
UES IMPOSED BY SUBDIVISION ONE OF SECTION TWO HUNDRED FIFTY-THREE OF THE
TAX LAW, AS AUTHORIZED BY SUBDIVISION THREE OF SECTION TWO HUNDRED
SIXTY-ONE OF THE TAX LAW.
(D) THE AGENCY'S RECOVERY ACT BONDS SECURED BY PAYMENTS OF PRINCIPAL
AND INTEREST DUE WITH RESPECT TO LOCAL ARRA BONDS SHALL NOT BE A DEBT OF
EITHER THE STATE OR ANY MUNICIPALITY, AND NEITHER THE STATE NOR ANY
MUNICIPALITY SHALL BE LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF
S. 6068 13
ANY FUNDS OTHER THAN THOSE OF THE AGENCY; AND SUCH RECOVERY ACT BONDS
SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.
(E) SUBJECT TO THE PROVISIONS OF ANY CONTRACT WITH HOLDERS OF BONDS,
NOTES OR OTHER OBLIGATIONS, PROCEEDS OF RECOVERY ACT BONDS TO BE PAID TO
A MUNICIPALITY TO PURCHASE ITS LOCAL ARRA BONDS SHALL BE PAID TO THE
MUNICIPALITY AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEY OF THE
AGENCY.
(F) NOTHING CONTAINED IN THIS TITLE SHALL BE CONSTRUED TO CREATE A
DEBT OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY
PROVISIONS. ANY PROVISION WITH RESPECT TO STATE AID SHALL BE DEEMED
EXECUTORY ONLY TO THE EXTENT OF MONEYS AVAILABLE, AND NO LIABILITY SHALL
BE INCURRED BY THE STATE BEYOND THE MONEYS AVAILABLE FOR THAT PURPOSE,
AND ANY PAYMENT TO BE MADE BY THE COMPTROLLER OF STATE AID IS SUBJECT TO
ANNUAL APPROPRIATION OF STATE AID BY THE STATE LEGISLATURE.
(G) NOTHING CONTAINED IN THIS TITLE SHALL BE DEEMED TO RESTRICT THE
RIGHT OF THE STATE TO AMEND, REPEAL, MODIFY, OR OTHERWISE ALTER ANY
PROVISION OF LAW RELATING TO STATE AID TO MUNICIPALITIES. THE AGENCY
SHALL INCLUDE IN ANY RESOLUTION, CONTRACT, OR AGREEMENT WITH HOLDERS OF
ITS BONDS, NOTES OR OTHER OBLIGATIONS A PROVISION WHICH STATES THAT NO
DEFAULT OCCURS AS A RESULT OF THE STATE'S EXERCISING ITS RIGHT TO AMEND,
REPEAL, MODIFY, OR OTHERWISE ALTER ANY PROVISION OF LAW RELATING TO
STATE AID TO MUNICIPALITIES.
(4) (A) A MUNICIPALITY MAY COVENANT AND AGREE THAT THE MUNICIPALITY
WILL NOT LIMIT, ALTER OR IMPAIR THE RIGHTS HEREBY VESTED IN THE AGENCY
TO FULFILL THE TERMS OF ANY AGREEMENTS MADE WITH HOLDERS OF THE AGENCY'S
RECOVERY ACT BONDS, THE PROCEEDS OF WHICH WERE USED TO PURCHASE THE
MUNICIPALITY'S LOCAL ARRA BONDS, SUCH HOLDERS PURSUANT TO THIS TITLE, OR
IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF SUCH HOLDERS OR THE SECURI-
TY FOR SUCH BONDS, UNTIL SUCH BONDS, TOGETHER WITH THE INTEREST THEREON
AND ALL COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION OR PROCEEDING
BY OR ON BEHALF OF SUCH HOLDERS, ARE FULLY PAID AND DISCHARGED. NOTHING
CONTAINED IN THIS TITLE SHALL BE DEEMED TO RESTRICT ANY RIGHT OF THE
MUNICIPALITY TO AMEND, MODIFY, REPEAL OR OTHERWISE ALTER ANY LOCAL LAWS,
ORDINANCES OR RESOLUTIONS IMPOSING OR RELATING TO TAXES OR FEES, OR
APPROPRIATIONS RELATING TO SUCH TAXES OR FEES, OR SETTING ASIDE OR ALLO-
CATING AND APPLYING, PAYING OR USING NET COLLECTIONS PURSUANT TO THE
AUTHORITY OF PART FOUR OF ARTICLE TWENTY-NINE OF THE TAX LAW OR PURSUANT
TO THE AUTHORITY OF ANY OTHER PROVISION OF STATE LAW THAT NOTWITHSTANDS
A PROVISION OF SUCH PART, SO LONG AS, AFTER GIVING EFFECT TO SUCH AMEND-
MENT, MODIFICATION OR OTHER ALTERATION, THE AGGREGATE AMOUNT AS THEN
PROJECTED BY THE MUNICIPALITY OF (I) SALES AND COMPENSATING USE TAXES
IMPOSED BY THE MUNICIPALITY PURSUANT TO THE AUTHORITY OF SUBPART B OF
PART ONE OF ARTICLE TWENTY-NINE OF THE TAX LAW (TO THE EXTENT THAT THE
MUNICIPALITY IS AUTHORIZED TO IMPOSE SUCH TAXES AND IS IMPOSING THEM AT
THE TIME IT ISSUES ITS LOCAL ARRA BONDS); AND (II) ALL SUCH NET
COLLECTIONS TO BE SET ASIDE OR TO BE ALLOCATED AND APPLIED, PAID OR USED
BY THE MUNICIPALITY PURSUANT TO THE AUTHORITY OF PART FOUR OF ARTICLE
TWENTY-NINE OF THE TAX LAW OR PURSUANT TO ANY OTHER PROVISION OF STATE
LAW THAT NOTWITHSTANDS A PROVISION OF SUCH PART FOUR DURING EACH OF THE
AGENCY'S FISCAL YEARS FOLLOWING THE EFFECTIVE DATE OF SUCH AMENDMENT,
MODIFICATION OR OTHER ALTERATION SHALL BE NOT LESS THAN TWO HUNDRED
PERCENT OF MAXIMUM ANNUAL DEBT SERVICE ON THE MUNICIPALITY'S LOCAL ARRA
BONDS THEN OUTSTANDING. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
SECTION, A MUNICIPALITY THAT IMPOSES SALES AND COMPENSATING USE TAXES AT
THE TIME IT ISSUES LOCAL ARRA BONDS FURTHER AGREES THAT IT SHALL CONTIN-
UE TO IMPOSE SUCH TAXES DURING THE TIME SUCH BONDS ARE OUTSTANDING AT
S. 6068 14
THE MAXIMUM RATE AUTHORIZED THEREFOR, WITHOUT REGARD TO ANY ADDITIONAL
RATE, PROVIDED THAT ANY INCREASE IN THE RATE OF SUCH TAXES TO SATISFY
THIS OBLIGATION SHALL COMPLY WITH THE APPLICABLE PROVISIONS OF SUBPART B
OF PART ONE OF ARTICLE TWENTY-NINE OF THE TAX LAW.
(B) ANY SUCH AGREEMENT WITH A MUNICIPALITY MAY BE PLEDGED BY THE AGEN-
CY TO SECURE ITS RECOVERY ACT BONDS USED TO PURCHASE LOCAL ARRA BONDS
ISSUED BY THAT MUNICIPALITY AND MAY NOT BE MODIFIED THEREAFTER EXCEPT AS
PROVIDED BY THE TERMS OF THE PLEDGE OR SUBSEQUENT AGREEMENTS WITH THE
HOLDERS OF SUCH RECOVERY ACT BONDS.
(C) THE AGENCY SHALL NOT INCLUDE WITHIN ANY RESOLUTION, CONTRACT OR
AGREEMENT WITH HOLDERS OF RECOVERY ACT BONDS ANY PROVISION WHICH
PROVIDES THAT A DEFAULT OCCURS AS A RESULT OF A MUNICIPALITY EXERCISING
ITS RIGHT TO AMEND, MODIFY, REPEAL OR OTHERWISE ALTER SUCH TAXES, FEES
OR APPROPRIATIONS OR SUCH NET COLLECTIONS. NOTHING IN THIS TITLE SHALL
BE DEEMED TO OBLIGATE A MUNICIPALITY TO MAKE ANY PAYMENTS OR IMPOSE ANY
TAXES OR SET ASIDE OR ALLOCATE AND APPLY, PAY OR USE NET COLLECTIONS
PURSUANT TO THE AUTHORITY OF PART FOUR OF ARTICLE TWENTY-NINE OF THE TAX
LAW OR PURSUANT TO THE AUTHORITY OF AN UNCONSOLIDATED STATE LAW THAT
NOTWITHSTANDS A PROVISION OF SUCH PART; EXCEPT THAT A MUNICIPALITY SHALL
IMPOSE TAXES PURSUANT TO THE AUTHORITY OF SUBPART B OF PART ONE OF ARTI-
CLE TWENTY-NINE OF THE TAX LAW AT THE MAXIMUM RATE AUTHORIZED THEREFOR,
WITHOUT REGARD TO ANY ADDITIONAL RATE, PROVIDED THAT ANY INCREASE IN THE
RATE OF SUCH TAXES TO SATISFY THIS OBLIGATION SHALL COMPLY WITH THE
APPLICABLE PROVISIONS OF SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF
THE TAX LAW.
(5) (A) IF A MUNICIPALITY FAILS TO PAY TO THE AGENCY ANY PRINCIPAL OR
INTEREST DUE ON ITS LOCAL ARRA BONDS SECURED BY A PLEDGE OF ITS AVAIL-
ABLE LOCAL SALES AND USE TAX REVENUES OR ITS AVAILABLE MORTGAGE RECORD-
ING TAX REVENUES, OR BOTH, AS DESCRIBED IN SUBDIVISION TWO OF THIS
SECTION, THE CHAIRMAN OF THE AGENCY SHALL NOTIFY THE COMPTROLLER IN
WRITING THAT SUCH MUNICIPALITY HAS FAILED TO MEET ITS OBLIGATIONS. SUCH
NOTICE SHALL SET FORTH IN DETAIL THE TERM, AMOUNT, INTEREST RATE, AND
PAYMENT SCHEDULE OF THE LOCAL ARRA BONDS IN DEFAULT, AND THE EXACT
AMOUNTS OF PRINCIPAL AND INTEREST DUE FROM SUCH MUNICIPALITY IN DEFAULT.
THE AGENCY SHALL PROVIDE A COPY OF SUCH NOTICE TO THE CHIEF FISCAL OFFI-
CER OF SUCH MUNICIPALITY IN DEFAULT AND, IN THE CASE OF A DEFAULT BY A
CITY, TOWN, OR VILLAGE WITH RESPECT TO LOCAL ARRA BONDS SECURED BY MORT-
GAGE RECORDING TAX REVENUES, ALSO TO THE CHIEF FISCAL OFFICER OF THE
COUNTY IN WHICH THE CITY, TOWN, OR VILLAGE IS LOCATED. THE AGENCY SHALL
PROVIDE SUCH NOTICE TO THE COMPTROLLER AT LEAST THIRTY DAYS PRIOR TO THE
DATE THAT THE COMPTROLLER IS EXPECTED TO WITHHOLD AND PAY OVER LOCAL
SALES AND USE TAX REVENUES TO THE AGENCY.
(B) UPON THE COMPTROLLER RECEIVING SUCH COMPLETE, CERTIFIED WRITTEN
NOTICE FROM THE AGENCY, THE COMPTROLLER SHALL, NOTWITHSTANDING ANY
PROVISION OF SECTION TWELVE HUNDRED SIXTY-ONE OF THE TAX LAW TO THE
CONTRARY, PAY TO THE AGENCY, ON OR BEFORE THE FIFTEENTH DAY OF EACH
MONTH, ALL OR A PORTION OF THE LOCAL SALES AND USE TAX REVENUES DUE THE
MUNICIPALITY IN DEFAULT, UNTIL THE AMOUNT CERTIFIED IN DEFAULT HAS BEEN
EXTINGUISHED. THE COMPTROLLER SHALL MAKE SUCH PAYMENTS TO THE AGENCY
ONLY OUT OF NET COLLECTIONS NOT OTHERWISE PLEDGED, REQUIRED TO BE INTER-
CEPTED OR OTHERWISE ENCUMBERED BY PROVISIONS OF LAW IN EFFECT IMMEDIATE-
LY PRIOR TO THE DATE THE MUNICIPALITY'S LOCAL ARRA BONDS SECURED BY A
PLEDGE AUTHORIZED BY THIS SECTION SHALL HAVE BEEN ISSUED.
(C) UPON RECEIVING SUCH COMPLETE, CERTIFIED WRITTEN NOTICE FROM THE
AGENCY, THE CHIEF FISCAL OFFICER OF A COUNTY, NOTWITHSTANDING THE
PROVISIONS OF SECTION TWO HUNDRED SIXTY-ONE OF THE TAX LAW, SHALL PAY
S. 6068 15
OVER TO THE COMPTROLLER, THE NET AMOUNT OF MORTGAGE RECORDING TAX REVEN-
UES IMPOSED BY SUBDIVISION ONE OF SECTION TWO HUNDRED FIFTY-THREE OF THE
TAX LAW DUE TO THE CITY, TOWN, OR VILLAGE IN DEFAULT. THE CHIEF FISCAL
OFFICER OF THE COUNTY SHALL CONTINUE TO MAKE THOSE PAYMENTS TO THE COMP-
TROLLER UNTIL THE AGENCY SENDS CERTIFIED NOTICE TO THE OFFICER AND TO
THE COMPTROLLER THAT THE CITY OR TOWN IS NO LONGER IN DEFAULT. THE COMP-
TROLLER SHALL PAY TO THE AGENCY, ON OR BEFORE THE FIFTEENTH DAY OF EACH
MONTH, ALL OR A PORTION OF THE MORTGAGE RECORDING TAX REVENUES RECEIVED
FROM THE CHIEF FISCAL OFFICER OF THE COUNTY, UNTIL THE AMOUNT CERTIFIED
IN DEFAULT HAS BEEN EXTINGUISHED.
(D) SUCH PAYMENTS BY THE COMPTROLLER TO THE AGENCY SHALL BE MADE ON
ACCOUNT OF, AND FOR THE BENEFIT OF, THE MUNICIPALITY IN DEFAULT. IF SO
REQUESTED BY THE AGENCY, AS INDICATED IN ITS CERTIFIED NOTICE TO THE
COMPTROLLER, THE COMPTROLLER SHALL MAKE SUCH PAYMENTS TO A TRUSTEE
PURSUANT TO AN INDENTURE FOR HOLDERS OF THE RECOVERY ACT BONDS ISSUED BY
THE AGENCY THAT WERE USED TO PURCHASE THE MUNICIPALITY'S LOCAL ARRA
BONDS IN DEFAULT. SUCH PAYMENTS BY THE COMPTROLLER ON BEHALF OF SUCH
MUNICIPALITY SHALL BE APPLIED BY THE AGENCY OR, IF PAID DIRECTLY TO THE
TRUSTEE, BY SUCH TRUSTEE, TO CURE THAT MUNICIPALITY'S DEFAULT. TO THE
EXTENT THE COMPTROLLER MAKES ANY SUCH PAYMENT TO THE AGENCY OR TO SUCH A
TRUSTEE, THE MUNICIPALITY'S DEFAULT SHALL BE CURED.
(E) THE COMPTROLLER SHALL NOT BE RESPONSIBLE FOR ANY INACCURACY IN THE
AMOUNT OF SUCH PAYMENTS BASED UPON THE NOTICE FURNISHED BY THE AGENCY.
THE COMPTROLLER SHALL NOT BE REQUIRED TO MAKE PAYMENTS UNDER THIS SUBDI-
VISION WHICH ARE GREATER THAN THE AMOUNTS OF LOCAL SALES AND USE TAX
REVENUES DUE THE MUNICIPALITY, AS CERTIFIED TO THE COMPTROLLER BY THE
COMMISSIONER OF TAXATION AND FINANCE AS PROVIDED IN SUBDIVISION (C) OF
SECTION TWELVE HUNDRED SIXTY-ONE OF THE TAX LAW (SUBJECT TO THE LIMITA-
TION IN PARAGRAPH (B) OF THIS SUBDIVISION), OR WHICH ARE GREATER THAN
THE AMOUNT OF NET MORTGAGE RECORDING TAX REVENUES PAID TO THE COMP-
TROLLER BY THE CHIEF FISCAL OFFICER OF THE COUNTY. AFTER THE COMPTROLLER
MAKES ANY PAYMENTS OF NET COLLECTIONS REQUIRED UNDER THIS SECTION, THE
COMPTROLLER SHALL PAY ANY BALANCE OF NET COLLECTIONS DUE SUCH MUNICI-
PALITY TO SUCH MUNICIPALITY IN THE MANNER PROVIDED IN SUBDIVISION (C) OF
SECTION TWELVE HUNDRED SIXTY-ONE OF THE TAX LAW OR OTHER APPLICABLE LAW.
THE COMPTROLLER SHALL BE REQUIRED TO MAKE PAYMENTS UNDER THIS SECTION
FOR ONLY SO LONG AS THE MUNICIPALITY IS IN DEFAULT AS CERTIFIED IN THE
AGENCY'S NOTICE TO THE COMPTROLLER.
(F) THE AUTHORITY IN THIS SECTION TO WITHHOLD LOCAL SALES AND USE TAX
REVENUES AND MORTGAGE RECORDING TAX REVENUES AND PAY THEM OVER TO THE
AGENCY SHALL BE IN ADDITION TO THE STATE AID GUARANTY SET FORTH IN
SECTION TWENTY FOUR HUNDRED THIRTY-SIX OF THIS TITLE; AND THE AGENCY MAY
CERTIFY THAT EITHER OR BOTH REVENUE SOURCES MAY BE WITHHELD TO THE
EXTENT NECESSARY TO SATISFY THE MUNICIPALITY'S UNMET OBLIGATIONS TO THE
AGENCY.
(G) ANY WITHHOLDING OF REVENUES PURSUANT TO THIS SUBDIVISION OR STATE
AID PURSUANT TO SECTION TWENTY-FOUR HUNDRED THIRTY-SIX OF THIS TITLE
WITH RESPECT TO LOCAL ARRA BONDS SHALL BE MADE IN CONSULTATION WITH THE
DIRECTOR OF THE BUDGET OF THE STATE; PROVIDED, HOWEVER, SUCH CONSULTA-
TION SHALL NOT DELAY OR OTHERWISE ADVERSELY AFFECT THE AGENCY'S RIGHT TO
RECEIVE TIMELY PAYMENT OF SUCH REVENUES AND/OR STATE AID.
(6) WHEN USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
(A) "SALES AND COMPENSATING USE TAXES" MEANS TAXES IMPOSED BY A COUNTY
OR CITY PURSUANT TO THE AUTHORITY OF SUBPART B OF PART ONE OF ARTICLE
TWENTY-NINE OF THE TAX LAW.
S. 6068 16
(B) "NET COLLECTIONS" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION
(F) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THE TAX LAW.
(C) "COUNTY SALES TAX REVENUES" MEANS NET COLLECTIONS SET ASIDE FOR
COUNTY PURPOSES PURSUANT TO SUBDIVISION (A) OF SECTION TWELVE HUNDRED
SIXTY-TWO OF THE TAX LAW OR OTHER APPLICABLE PROVISION OF PART FOUR OF
ARTICLE TWENTY-NINE OF THE TAX LAW, FROM A COUNTY'S SALES AND COMPENSAT-
ING USE TAXES.
(D) "CITY SALES TAX REVENUES" MEANS NET COLLECTIONS FROM A CITY'S
SALES AND COMPENSATING USE TAXES.
(E) "MUNICIPALITY" MEANS MUNICIPALITY AS DEFINED IN PARAGRAPH ONE OF
SECTION 2.00 OF THE LOCAL FINANCE LAW.
(F) "LOCAL SALES AND USE TAX REVENUES" MEANS ANY OF THE TAX REVENUES
DEFINED IN PARAGRAPH (C) OR (D) OF THIS SUBDIVISION, OR ANY COMBINATION
OF THEM, AS THE CASE MAY BE.
(G) "SECURE" MEANS A PLEDGE OF SALES AND COMPENSATING USE TAXES OR
MORTGAGE RECORDING TAXES FOR THE PURPOSES OF DEFAULT BY A MUNICIPALITY
AS A RESULT OF A FAILURE TO PAY DEBT SERVICE ON ITS LOCAL ARRA BONDS.
S 6. Subdivision 5 of section 2437 of the public authorities law, as
amended by section 73 of part H of chapter 83 of the laws of 2002, is
amended to read as follows:
(5) Any bonds or notes of the agency other than special program bonds,
special school purpose bonds [or], special school deficit program bonds
OR RECOVERY ACT BONDS shall be sold at public sale and from time to time
upon such terms and at such prices as may be determined by the agency,
and the agency may pay all expenses, premiums and commissions which it
may deem necessary or advantageous in connection with the issuance and
sale thereof. Any special program bonds, special school purpose bonds
[or], special school deficit program bonds OR RECOVERY ACT BONDS shall
be sold at public or private sale and from time to time upon such terms
and at such prices as may be determined by the agency, and the agency
may pay all expenses, premiums and commissions which it may deem neces-
sary or advantageous in connection with the issuance and sale thereof
provided, however, that special program bonds relating to a special
program agreement entered for the purpose described in paragraph (b) of
subdivision one of section twenty-four hundred thirty-five-a of this
title shall be sold on or before June thirtieth, two thousand one. No
special program bonds, special school purpose bonds [or], special school
deficit program bonds, OR RECOVERY ACT BONDS of the agency may be sold
by the agency at private sale, however, unless such sale and the terms
thereof have been approved in writing by (a) the comptroller, where such
sale is not to the comptroller, or (b) the director of the budget, where
such sale is to the comptroller.
S 7. Subdivision 1 of section 2438 of the public authorities law, as
amended by section 24 of part A4 of chapter 58 of the laws of 2006, is
amended to read as follows:
(1) The agency shall not issue bonds and notes in an aggregate princi-
pal amount at any one time outstanding exceeding one billion dollars,
excluding tax lien collateralized securities, special school purpose
bonds, special school deficit program bonds, special program bonds
issued to finance the reconstruction, rehabilitation or renovation of an
educational facility pursuant to the provisions of subdivision (b) of
section sixteen of chapter six hundred five of the laws of two thousand,
special program bonds issued to finance the cost of a project for
design, reconstruction or rehabilitation of a school building pursuant
to the provisions of section fourteen of the city of Syracuse and the
board of education of the city school district of the city of Syracuse
S. 6068 17
cooperative school reconstruction act, RECOVERY ACT BONDS and bonds and
notes issued to refund outstanding bonds and notes.
S 8. Section 2442 of the public authorities law, as amended by chapter
203 of the laws of 2000, is amended to read as follows:
S 2442. Agreement of the state. (1) The state of New York does hereby
pledge to and agree with the holders of any bonds, notes or tax lien
collateralized securities issued under this title that the state will
not limit or alter the rights hereby vested in the agency to fulfill the
terms of any agreements made with the holders thereof, or in any way
impair the rights and remedies of such holders until such bond, notes or
tax lien collateralized securities together with the interest thereon,
with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceedings by or on behalf of
such holders, are fully met and discharged. The agency is authorized to
include this pledge and agreement of the state in any agreement with the
holders of such bonds, notes or tax lien collateralized securities.
NOTHING CONTAINED IN THIS TITLE SHALL BE DEEMED TO RESTRICT ANY RIGHT OF
THE STATE TO AMEND, MODIFY, REPEAL OR OTHERWISE ALTER (A) ANY PROVISION
OF LAW RELATING TO STATE AID, OR (B) STATUTES IMPOSING OR RELATING TO
TAXES OR FEES, OR (C) APPROPRIATIONS RELATING THERETO.
(2) THE AGENCY SHALL NOT INCLUDE WITHIN ANY RESOLUTION, CONTRACT OR
AGREEMENT WITH HOLDERS OF THE BONDS, NOTES OR OTHER OBLIGATIONS ISSUED
UNDER THIS TITLE ANY PROVISION WHICH PROVIDES THAT A DEFAULT OCCURS AS A
RESULT OF THE STATE EXERCISING ITS RIGHT TO AMEND, MODIFY, OR REPEAL OR
OTHERWISE ALTER (A) ANY PROVISION OF LAW RELATING TO STATE AID; OR (B)
STATUTES IMPOSING OR RELATING TO TAXES OR FEES, OR (C) APPROPRIATIONS
RELATING THERETO. NOTHING IN THIS TITLE SHALL BE DEEMED TO OBLIGATE THE
STATE TO MAKE ANY PAYMENTS OR IMPOSE ANY TAXES TO SATISFY THE DEBT
SERVICE OBLIGATIONS OF THE AGENCY.
S 9. Section 85.80 of the local finance law, as amended by chapter 777
of the laws of 1978, is amended to read as follows:
S 85.80 Authority for municipality or emergency financial control
board to file petition under federal statute. A municipality or its
emergency financial control board in addition to, or in lieu of, filing
a petition under this title, or the city of New York or the New York
state financial control board, may file any petition with any United
States district court or court of bankruptcy under any provision of the
laws of the United States, now or hereafter in effect, for the composi-
tion or adjustment of municipal indebtedness. Nothing contained in this
title shall be construed to limit the authorization granted by this
section. HOWEVER, NO MUNICIPALITY SHALL FILE ANY PETITION AUTHORIZED BY
THIS SECTION FOR SO LONG AS ITS LOCAL ARRA BONDS, AS DEFINED IN SECTION
TWENTY-FOUR HUNDRED THIRTY-TWO OF THE PUBLIC AUTHORITIES LAW, PURCHASED
BY THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY AND SECURED BY ITS
PLEDGE OF TAX REVENUES PURSUANT TO THE AUTHORITY OF SECTION TWENTY-FOUR
HUNDRED THIRTY-SIX-B OF THE PUBLIC AUTHORITIES LAW REMAIN OUTSTANDING.
S 10. Subdivision 1 of section 51 of the public authorities law is
amended by adding a new paragraph m to read as follows:
M. STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY FOR BONDS ISSUED
PURSUANT TO SECTION TWO THOUSAND FOUR HUNDRED THIRTY-SIX-B OF THIS CHAP-
TER
S 11. Section 51 of the public authorities law is amended by adding a
new subdivision 3-a to read as follows:
3-A. THE BOARD SHALL NOT APPROVE RECOVERY ACT BONDS APPLICATIONS
PROVIDED BY THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY UNLESS THE
S. 6068 18
BOARD FINDS SUFFICIENT INTEREST RATE AND OTHER SAVINGS TO EACH PARTIC-
IPATING MUNICIPALITY.
S 12. Section 2976 of the public authorities law is amended by adding
a new subdivision 4 to read as follows:
4. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL
NOT APPLY TO RECOVERY ACT BONDS ISSUED BY THE STATE OF NEW YORK MUNICI-
PAL BOND BANK AGENCY IN CONNECTION WITH LOCAL AMERICAN RECOVERY AND
REINVESTMENT ACT PURSUANT TO SECTION TWO THOUSAND FOUR HUNDRED
THIRTY-SIX-B OF THIS CHAPTER.
S 13. This act shall take effect immediately.
PART F
Section 1. Subdivisions (a) and (b) of section 4545 of the civil prac-
tice law and rules are REPEALED.
S 2. Subdivision (c) of section 4545 of the civil practice law and
rules, as added by chapter 220 of the laws of 1986, is amended to read
as follows:
[(c)] (A) Actions for personal injury, injury to property or wrongful
death. In any action brought to recover damages for personal injury,
injury to property or wrongful death, where the plaintiff seeks to
recover for the cost of medical care, dental care, custodial care or
rehabilitation services, loss of earnings or other economic loss,
evidence shall be admissible for consideration by the court to establish
that any such past or future cost or expense was or will, with reason-
able certainty, be replaced or indemnified, in whole or in part, from
any collateral source [such as insurance (], except for life insur-
ance[), social security (except those benefits provided under title
XVIII of the social security act), workers' compensation or employee
benefit programs (except such collateral sources entitled by law to
liens against any recovery of the plaintiff)] AND THOSE PAYMENTS AS TO
WHICH THERE IS A STATUTORY RIGHT OF REIMBURSEMENT. If the court finds
that any such cost or expense was or will, with reasonable certainty, be
replaced or indemnified from any SUCH collateral source, it shall reduce
the amount of the award by such finding, minus an amount equal to the
premiums paid by the plaintiff for such benefits for the two-year period
immediately preceding the accrual of such action and minus an amount
equal to the projected future cost to the plaintiff of maintaining such
benefits. In order to find that any future cost or expense will, with
reasonable certainty, be replaced or indemnified by the collateral
source, the court must find that the plaintiff is legally entitled to
the continued receipt of such collateral source, pursuant to a contract
or otherwise enforceable agreement, subject only to the continued
payment of a premium and such other financial obligations as may be
required by such agreement. ANY COLLATERAL SOURCE DEDUCTION REQUIRED BY
THIS SUBDIVISION SHALL BE MADE BY THE TRIAL COURT AFTER THE RENDERING OF
THE JURY'S VERDICT. THE PLAINTIFF MAY PROVE HIS OR HER LOSSES AND
EXPENSES AT THE TRIAL IRRESPECTIVE OF WHETHER SUCH SUMS WILL LATER HAVE
TO BE DEDUCTED FROM THE PLAINTIFF'S RECOVERY.
S 3. Subdivision (d) of section 4545 of the civil practice law and
rules is relettered subdivision (b).
S 4. Subdivision (e) of rule 4111 of the civil practice law and rules
is REPEALED.
S 5. Subdivision (f) of rule 4111 of the civil practice law and rules,
as amended by chapter 100 of the laws of 1994, is relettered subdivision
(e) and amended to read as follows:
S. 6068 19
(e) Itemized verdict in certain actions. In an action brought to
recover damages for personal injury, injury to property or wrongful
death, which is not subject to [subdivisions] SUBDIVISION (d) [and (e)]
of this rule, the court shall instruct the jury that if the jury finds a
verdict awarding damages, it shall in its verdict specify the applicable
elements of special and general damages upon which the award is based
and the amount assigned to each element including, but not limited to,
medical expenses, dental expenses, loss of earnings, impairment of earn-
ing ability, and pain and suffering. Each element shall be further item-
ized into amounts intended to compensate for damages that have been
incurred prior to the verdict and amounts intended to compensate for
damages to be incurred in the future. In itemizing amounts intended to
compensate for future damages, the jury shall set forth the period of
years over which such amounts are intended to provide compensation. In
actions in which article fifty-A or fifty-B of this chapter applies, in
computing said damages, the jury shall be instructed to award the full
amount of future damages, as calculated, without reduction to present
value.
S 6. Subdivision (b) of section 4213 of the civil practice law and
rules, as separately amended by chapters 485 and 682 of the laws of
1986, is amended to read as follows:
(b) Form of decision. The decision of the court may be oral or in
writing and shall state the facts it deems essential. In [a medical,
dental or podiatric malpractice action or in an action against a public
employer or a public employee who is subject to indemnification by a
public employer with respect to such action or both, as such terms are
defined in subdivision (b) of section forty-five hundred forty-five, for
personal injury or wrongful death arising out of an injury sustained by
a public employee while acting within the scope of his public employment
or duties, and in] any [other] action brought to recover damages for
personal injury, injury to property, or wrongful death, a decision
awarding damages shall specify the applicable elements of special and
general damages upon which the award is based and the amount assigned to
each element, including but not limited to medical expenses, dental
expenses, podiatric expenses, loss of earnings, impairment of earning
ability, and pain and suffering. In a medical, dental or podiatric malp-
ractice action, [and in any other action brought to recover damages for
personal injury, injury to property, or wrongful death, each element
shall be further itemized into amounts intended to compensate for
damages which have been incurred prior to the decision and amounts
intended to compensate for damages to be incurred in the future. In
itemizing amounts intended to compensate for future damages, the court
shall set forth the period of years over which such amounts are intended
to provide compensation. In computing said damages, the court shall
award the full amount of future damages, as calculated, without
reduction to present value] COMMENCED ON OR AFTER JULY TWENTY-SIXTH, TWO
THOUSAND THREE, THE COURT'S DECISION AS TO FUTURE DAMAGES SHALL BE ITEM-
IZED IN ACCORDANCE WITH SUBDIVISION (D) OF RULE FORTY-ONE HUNDRED ELEVEN
OF THIS CHAPTER. IN ANY ACTION BROUGHT TO RECOVER DAMAGES FOR PERSONAL
INJURY, INJURY TO PROPERTY OR WRONGFUL DEATH, OTHER THAN A MEDICAL,
DENTAL OR PODIATRIC MALPRACTICE ACTION COMMENCED ON OR AFTER JULY TWEN-
TY-SIXTH, TWO THOUSAND THREE, THE COURT'S DECISION AS TO FUTURE DAMAGES
SHALL BE ITEMIZED IN ACCORDANCE WITH SUBDIVISION (E) OF RULE FORTY-ONE
HUNDRED ELEVEN OF THIS CHAPTER.
S 7. Section 5-101 of the general obligations law is amended by adding
a new subdivision 4 to read as follows:
S. 6068 20
4. AS USED IN SECTION 5-335 OF THIS ARTICLE, THE TERM "BENEFIT PROVID-
ER" MEANS ANY INSURER, HEALTH MAINTENANCE ORGANIZATION, HEALTH BENEFIT
PLAN, PREFERRED PROVIDER ORGANIZATION, EMPLOYEE BENEFIT PLAN OR OTHER
ENTITY WHICH PROVIDES FOR PAYMENT OR REIMBURSEMENT OF HEALTH CARE
EXPENSES, HEALTH CARE SERVICES, DISABILITY PAYMENTS, LOST WAGE PAYMENTS
OR ANY OTHER BENEFITS UNDER A POLICY OF INSURANCE OR CONTRACT WITH AN
INDIVIDUAL OR GROUP.
S 8. The general obligations law is amended by adding a new section
5-335 to read as follows:
S 5-335. LIMITATION OF NON-STATUTORY REIMBURSEMENT AND SUBROGATION
CLAIMS IN PERSONAL INJURY AND WRONGFUL DEATH ACTIONS. (A) WHEN A PLAIN-
TIFF SETTLES WITH ONE OR MORE DEFENDANTS IN AN ACTION FOR PERSONAL INJU-
RIES, MEDICAL, DENTAL, OR PODIATRIC MALPRACTICE, OR WRONGFUL DEATH, IT
SHALL BE CONCLUSIVELY PRESUMED THAT THE SETTLEMENT DOES NOT INCLUDE ANY
COMPENSATION FOR THE COST OF HEALTH CARE SERVICES, LOSS OF EARNINGS OR
OTHER ECONOMIC LOSS TO THE EXTENT THOSE LOSSES OR EXPENSES HAVE BEEN OR
ARE OBLIGATED TO BE PAID OR REIMBURSED BY A BENEFIT PROVIDER, EXCEPT FOR
THOSE PAYMENTS AS TO WHICH THERE IS A STATUTORY RIGHT OF REIMBURSEMENT.
BY ENTERING INTO ANY SUCH SETTLEMENT, A PLAINTIFF SHALL NOT BE DEEMED TO
HAVE TAKEN AN ACTION IN DEROGATION OF ANY NONSTATUTORY RIGHT OF ANY
BENEFIT PROVIDER THAT PAID OR IS OBLIGATED TO PAY THOSE LOSSES OR
EXPENSES; NOR SHALL A PLAINTIFF'S ENTRY INTO SUCH SETTLEMENT CONSTITUTE
A VIOLATION OF ANY CONTRACT BETWEEN THE PLAINTIFF AND SUCH BENEFIT
PROVIDER.
EXCEPT WHERE THERE IS A STATUTORY RIGHT OF REIMBURSEMENT, NO PARTY
ENTERING INTO SUCH A SETTLEMENT SHALL BE SUBJECT TO A SUBROGATION CLAIM
OR CLAIM FOR REIMBURSEMENT BY A BENEFIT PROVIDER AND A BENEFIT PROVIDER
SHALL HAVE NO LIEN OR RIGHT OF SUBROGATION OR REIMBURSEMENT AGAINST ANY
SUCH SETTLING PARTY, WITH RESPECT TO THOSE LOSSES OR EXPENSES THAT HAVE
BEEN OR ARE OBLIGATED TO BE PAID OR REIMBURSED BY SAID BENEFIT PROVIDER.
(B) THIS SECTION SHALL NOT APPLY TO A SUBROGATION CLAIM FOR RECOVERY
OF ADDITIONAL FIRST-PARTY BENEFITS PROVIDED PURSUANT TO ARTICLE
FIFTY-ONE OF THE INSURANCE LAW. THE TERM "ADDITIONAL FIRST-PARTY BENE-
FITS", AS USED IN THIS SUBDIVISION, SHALL HAVE THE SAME MEANING GIVEN IT
IN SECTION 65-1.3 OF TITLE 11 OF THE CODES, RULES AND REGULATIONS OF THE
STATE OF NEW YORK AS OF THE EFFECTIVE DATE OF THIS STATUTE.
S 9. This act shall take effect immediately and shall apply to all
actions and proceedings commenced on or after such date; provided,
however, that sections four through eight of this act shall also apply
to any action or proceeding which was commenced prior to such effective
date where, as of such date, either (a) a trial of the issues has not
yet commenced, or (b) the parties have not yet entered into a stipu-
lation of settlement.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through F of this act shall be
as specifically set forth in the last section of such Parts.
