Senate Bill S6090

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

                                  6090

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              July 14, 2009
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend chapter 241 of the laws of 1930,  relating  to  the  New
  York Board of Fire Underwriters, in relation to establishing the advi-
  sory  council  of  the fire patrol, and assessments for the support of
  the fire patrol and the electricity committee; and to repeal  sections
  14  and 15 of such chapter relating to the expenses of the fire patrol
  and statements of premiums

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 12 of chapter 241 of the laws of 1930, relating to
the New York Board of Fire Underwriters, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14285-06-9
              

S. 6090                             2

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 nine-
ty-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  ANY PROVISION OF LAW TO THE
CONTRARY, ALL ASSETS, REVENUES AND RECEIPTS DEDICATED TO THE FIRE PATROL
BY STATUTE, CUSTOM AND PRACTICE, CORPORATE ACTION OR DECISION,  CONTRACT
OR AGREEMENT, DECISION OF LAW OR REGULATORY AGENCY, SHALL BE USED SOLELY
FOR  THE  PURPOSES,  BENEFIT, RIGHTS AND OBLIGATIONS INCURRED IN AND FOR
THE ACTIVITIES OF THE FIRE PATROL, AND THE BOARD ACTING IN REGARD TO THE
FIRE PATROL.
  S 2. Chapter 241 of the laws of 1930, relating to the New  York  Board
of Fire Underwriters, is amended by adding a new section 12-a to read as
follows:
  S  12-A.  FIRE PATROL ADVISORY COUNCIL. A. THERE IS HEREBY ESTABLISHED
UNDER THE BOARD AN ADVISORY COUNCIL OF THE  FIRE  PATROL.  THE  ADVISORY
BOARD  SHALL  ASSIST  AND DEVELOP APPROPRIATE POLICIES AND PRIORITIES OF
EFFECTIVE LOSS PREVENTION, PROPERTY LOSS AND MITIGATION. THE BOARD SHALL
CONSULT WITH THE NEW YORK CITY  FIRE  DEPARTMENT  AND  OTHERS  IN  AREAS
PERTAINING  TO FIRE PREVENTION, LOSS PREVENTION, PROPERTY LOSS AND MITI-
GATION.
  B. THE ADVISORY COUNCIL SHALL CONSIST OF SEVEN MEMBERS TO BE APPOINTED
AS FOLLOWS: THREE MEMBERS SHALL BE APPOINTED BY THE MAYOR OF THE CITY OF
NEW YORK; TWO MEMBERS SHALL BE APPOINTED BY THE CITY COUNCIL OF THE CITY
OF NEW YORK; AND TWO MEMBERS SHALL BE JOINTLY APPOINTED BY  THE  BOROUGH
PRESIDENTS  OF  THE CITY OF NEW YORK.  EACH MEMBER SHALL SERVE A TERM OF
THREE YEARS AND SHALL CONTINUE IN OFFICE UNTIL A SUCCESSOR IS APPOINTED.
A MEMBER APPOINTED TO FILL A VACANCY SHALL BE APPOINTED  FOR  THE  UNEX-
PIRED  TERM  OF  THE  MEMBER  HE OR SHE IS TO SUCCEED. THE MEMBERS SHALL
INCLUDE INDIVIDUALS WHO ARE ACTIVE OR RETIRED FIRE  OR  LAW  ENFORCEMENT
PERSONNEL,  AND  WHO  HAVE  EXPERTISE  IN  THE  AREAS PERTAINING TO FIRE
PREVENTION, LOSS PREVENTION, PROPERTY LOSS AND MITIGATION.  THE CHAIR OF
THE ADVISORY COUNCIL SHALL BE DESIGNATED BY THE MAYOR OF THE CITY OF NEW
YORK.
  C. THE ADVISORY COUNCIL SHALL SUBMIT A WRITTEN REPORT TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE
MINORITY  LEADER  OF THE SENATE, THE MINORITY LEADER OF THE ASSEMBLY AND
THE MAYOR OF THE CITY OF NEW YORK ON OR  BEFORE  DECEMBER  THIRTY-FIRST,
TWO  THOUSAND TEN AND ANNUALLY THEREAFTER, SETTING FORTH THE RECOMMENDA-
TIONS AND ACTIVITIES OF THE ADVISORY COUNCIL ON MATTERS WITHIN THE SCOPE
OF ITS POWERS AND DUTIES AS SET FORTH IN THIS  SECTION,  AND  DESCRIBING
THE  PROGRESS  MADE REGARDING POLICIES AND PRIORITIES FOR EFFECTIVE FIRE
PREVENTION, LOSS PREVENTION, PROPERTY LOSS AND MITIGATION.
  D. THE ADVISORY COUNCIL SHALL MEET AS OFTEN AS DEEMED NECESSARY BY THE
CHAIR BUT IN NO EVENT LESS THAN TWO TIMES PER YEAR.
  E. THE MEMBERS OF THE ADVISORY COUNCIL  SHALL  RECEIVE  NO  SALARY  OR
OTHER   COMPENSATION  FOR  THEIR  SERVICES  BUT  SHALL  BE  ENTITLED  TO
REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
ANCE OF THEIR DUTIES WITHIN  AMOUNTS  MADE  AVAILABLE  BY  APPROPRIATION
THEREFOR SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET.

S. 6090                             3

  S  3.  Sections 14 and 15 of chapter 241 of the laws of 1930, relating
to the New York Board of Fire Underwriters, are REPEALED and  three  new
sections 14, 15 and 15-a are added to read as follows:
  S  14.  ASSESSMENT FOR SUPPORT OF FIRE PATROL. A. EACH YEAR, IN FEBRU-
ARY, THE BOARD OF DIRECTORS OF THE BOARD SHALL ASSESS EACH MEMBER OF THE
BOARD, AND EACH INCORPORATED INSURANCE COMPANY 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  FIRE
PATROL.
  B.  THE  ASSESSMENT SHALL BE A MINIMUM AMOUNT OF $1.25 PER $100 OF THE
AGGREGATE OF PREMIUMS RETURNED  AS  RECEIVED,  AS  PROVIDED  IN  SECTION
FIFTEEN  OF  THIS ACT; THE MAXIMUM ASSESSMENT SHALL BE $2.00 PER $100 OF
THE AGGREGATE OF PREMIUMS RETURNED AS RECEIVED, AS PROVIDED  IN  SECTION
FIFTEEN OF THIS ACT. THE ASSESSMENT SHALL BE APPLIED UNIFORMLY ON PREMI-
UMS  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 SHALL BE ASSESSED UPON  THE  COMPANIES  OR
ASSOCIATES  IN PROPORTION TO THE SEVERAL AMOUNTS OF PREMIUMS RETURNED AS
RECEIVED BY EACH, AS PROVIDED IN SECTION FIFTEEN OF THIS ACT,  AND  SUCH
ASSESSMENT  SHALL  BE COLLECTIBLE AS PROVIDED BY LAW. ACTIONS TO COLLECT
OUTSTANDING ASSESSMENTS SHALL BE PROMPTLY INITIATED, AFTER A GRACE PERI-
OD OF 15 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  IN THIS ACT, SHALL RETURN TO THE
BOARD OF DIRECTORS OF THE BOARD 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 SUPERINTENDENT OF INSURANCE AND OTHER  ENTITIES  FOR  THE
RETURN  OF  PREMIUMS  ASSESSED  FOR  THE SUPPORT OF FIRE SERVICES IN THE
STATE AND FOR THE SUPPORT OF THE SUPERINTENDENT  OF  INSURANCE  AND  THE
INSURANCE  DEPARTMENT.  THE BOARD OF DIRECTORS OF THE BOARD WILL ADOPT A
RECOMMENDED FORMAT  AND  CONTENT  FOR  THE  RETURNS  DESCRIBED  IN  THIS
SECTION.
  C. THE BOARD OF DIRECTORS OF THE BOARD SHALL HAVE THE POWER TO REQUEST
AND  TO TIMELY RECEIVE SUPPORTING DOCUMENTATION FOR THE RETURN DESCRIBED
IN THIS SECTION. DOCUMENTS SHALL BE PROVIDED WITHIN 30 DAYS OF  REQUEST.
THE BOARD OF DIRECTORS SHALL HAVE THE POWER TO SEEK JUDICIAL OR ADMINIS-
TRATIVE ENFORCEMENT OF DOCUMENT REQUESTS.
  D. THE ANNUAL RETURN SHALL BE FILED WITH THE BOARD NO LATER THAN JANU-
ARY 31.
  S 15-A. ASSESSMENT FOR SUPPORT OF ELECTRICITY COMMITTEE.  A.  IN ADDI-
TION  TO  THE ASSESSMENTS DESCRIBED IN SECTION FOURTEEN OF THIS ACT, THE
BOARD SHALL IMPOSE AN ANNUAL "ELECTRICITY COMMITTEE  ASSESSMENT"  OF  NO
LESS THAN $.10 PER $100 AND NO MORE THAN $0.50 PER $100, 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 ELEC-
TRICAL INSPECTION SERVICE KNOWN AS THE ELECTRICITY COMMITTEE. THE "ELEC-
TRICITY COMMITTEE ASSESSMENT" SHALL BE APPLIED AS NEEDED TO  FULLY  FUND

S. 6090                             4

PENSION  OBLIGATIONS  IN  FAVOR  OF  BOARD EMPLOYEES ASSOCIATED WITH THE
ELECTRICAL INSPECTION SERVICE.
  B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE BOARD MAY
ELECT  TO  DISCONTINUE  THE  OPERATIONS  OF  THE  ELECTRICAL  INSPECTION
SERVICE, PROVIDED THAT ALL DEBTS AND OBLIGATIONS HAVE BEEN FULLY PAID OR
PROVIDED FOR.
  C. ALL PENSION OBLIGATIONS OF THE BOARD, FOR THE FIRE PATROL, AND  ANY
OTHER  EMPLOYEES,  SHALL BE FULLY FUNDED IN ACCORDANCE WITH FEDERAL LAW.
PENSION OBLIGATIONS ASSOCIATED WITH FIRE PATROL EMPLOYEES SHALL BE FUND-
ED BY THE FIRE PATROL ASSESSMENT OF SECTION FOURTEEN OF THIS ACT.  OTHER
PENSIONS  WILL BE FUNDED BY THE ELECTRICITY COMMITTEE ASSESSMENT OF THIS
SECTION.
  S 4. a. The superintendent of insurance shall study the economic bene-
fits of the Fire Patrol of the New York Board of Fire  Underwriters  and
shall  make  a  recommendation  to  the  legislature as to the merits of
extending the assessments in sections 14 and 15-a of chapter 241 of  the
laws  of 1930, as added by section three of this act, to business inter-
ruption  insurance  carriers,  underwriters,  and  reinsurers   insuring
against losses in the five boroughs of the city of New York.
  b. The superintendent of insurance shall consult with officials of the
city  of New York, pursuant to paragraph (e) of section 1402 of the not-
for-profit corporation law, and with all interested parties, in order to
make recommendations to resolve issues of corporate governance and oper-
ational effectiveness of  the  New  York  Board  of  Fire  Underwriters,
including  but  not  limited  to  issues  raised  in the November, 2005,
Management Report of the New York Board of Fire Underwriters.
  c. Within 90 days of the effective date of this  section,  the  super-
intendent  of insurance shall report to the legislature the findings and
recommendations of the studies described in this section.
  S 5. This act shall take effect immediately, provided that the assess-
ments established by sections 14 and 15-a of chapter 241 of the laws  of
1930,  as  added by section three of this act, shall be imposed, for the
calendar year in which this  act  takes  effect,  on  a  pro-rata  basis
commencing  on  the  effective  date of this act and shall be paid on or
before the sixtieth day after such date.