NY State Senate Bill 2009-S66002

Senate Bill S66002

Signed By Governor

2009-2010 Legislative Session

Enacts into law major components of legislation necessary for the efficient operation of local governments; repealer

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 12, 2009	signed chap.494
Nov 10, 2009	delivered to governor returned to senate passed assembly message of necessity - 3 day message ruling of chair on point of order ordered to third reading rules cal.679 substituted for a40002 referred to codes delivered to assembly passed senate message of necessity - 3 day message ordered to third reading cal.1 referred to rules

Votes

- Nov 10, 2009 - Floor Vote
  S66002
  
  59
  
  Aye
  
  2
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Nov 10, 2009
      
      aye (59)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      nay (2)
      
      Hannon
      
      Skelos
      
      excused (1)
      
      Johnson
  Nov 10, 2009 - Rules Committee Vote
  S66002
  
  20
  
  Aye
  
  3
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Nov 10, 2009
      
      aye (20)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hassell-Thompson
      
      Klein
      
      Krueger
      
      LaValle
      
      Monserrate
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Seward
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      nay (3)
      
      Hannon
      
      Larkin
      
      Skelos
      
      excused (1)
      
      Johnson

2009-S66002 (ACTIVE) - Details

See Assembly Version of this Bill:: A40002
Law Section:: Insurance Law
Laws Affected:: Amd §§3231, 4317 & 4704, Ins L; amd §§99-r & 103, Gen Muni L; amd §§10 & 12, Hway L; amd §351, Pub Health L; amd Pub Auth L, generally; rpld §4545 subs (a) & (b), R4111 (e), amd §§4545 & 4213, R4111, CPLR; amd §85.80, Loc Fin L; amd §5-101, add §5-335, Gen Ob L

2009-S66002 (ACTIVE) - Summary

Enacts into law major components of legislation necessary for the efficient operation of local governments.

2009-S66002 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S66002

 TITLE OF BILL :

An act to amend the insurance law, in relation to municipal
cooperative health benefit plans, a study of community rating and the
provision of claims experience to a municipality (Part A); to amend
the general municipal law and the highway law, in relation to mutual
aid (Part B); to amend the public health law, in relation to the
composition of county and part-county boards of health (Part C); to
amend the general municipal law, in relation to purchasing
requirements (Part D); to amend the public authorities law and the
local finance law, in relation to authorizing certain bonds to be
issued or purchased by the municipal bond bank agency (Part E); and to
amend the civil practice law and rules, in relation to treating public
and private defendants equally when considering the impact of
collateral source payments in tort claims for personal injury,
property damage or wrongful death; to amend the general obligations
law, in relation to protecting parties to the settlement of a tort
claim from certain unwarranted lien, reimbursement and subrogation
claims; and to repeal certain provisions of the civil practice law and
rules relating to collateral source payments (Part F)


 PURPOSE :

The purpose of this bill is to encourage efficiencies and provide
local government savings that ultimately benefit local property
taxpayers by:
* making it easier for municipal governments to form cooperative
health benefit plans for their employees, which will reduce overall
health insurance costs;
* facilitating highway shared services agreements among municipalities
and between municipalities and State agencies;
* allowing multiple counties to employ a single public health director
that would report to a single board of health;
* increasing the local competitive bidding thresholds on public works
contracts;
* equalizing the treatment of collateral sources in tort actions
against public employers; and,
* protecting parties to the settlement of a tort claim from certain
unwarranted lien, reimbursement and subrogation claims.

This bill will also authorize the State of New York Municipal Bond
Bank Agency ("MBBA") to issue bonds, notes or other obligations to
purchase bonds issued by municipalities in New York State to provide
for public improvements afforded by the American Recover) and
Reinvestment Act of 2009 ("Recovery Act"), thus enabling
municipalities to lower their borrowing costs which will generate
fiscal relief and contribute to economic growth.

 SUMMARY OF PROVISIONS :

Part A: Municipal cooperative health benefit plans

Section 1 and 2 of the bill would amend Insurance Law §§ 3231(d) and
4317(d), respectively, to require insurers to provide no more than
three years' claims experience to a municipal corporation when it
requests such information for the purposes of forming or joining a
municipal cooperative health benefit plan pursuant to Insurance Law
Article 47.

Section 3 of the bill would amend Insurance Law § 4704(a)(2) to reduce
from five to three the minimum number of participants to establish a
municipal cooperative health benefit plan.

Section 4 of the bill would require the Insurance Department to order
a study, to be completed by September 1, 2010, of the impact on the
community-rated health insurance market of allowing municipalities
with 50 or fewer employees to join with larger municipalities to
purchase experience-rated policies.

Section 5 requires the Superintendent of insurance to conduct a study
of the impact of the current municipal cooperative health benefit plan
reserve requirements and make recommendations for changes by October
1, 2009.

Section 6 is the effective date.

Part B: Highway Services Sharing

Section 1 of the bill would amend GML § 99-r to provide for agreements
among municipalities and between municipalities and State agencies to
provide or receive fuel, equipment, maintenance and repair, supplies,
water supply, street sweeping and maintenance, right-of-way
maintenance, storm water and other drainage, sewage disposal,
landscaping, mowing, or any other services of government.

Section 2 of the bill would amend Highway Law § 10 to include a new
provision authorizing agreements pursuant to GML § 99-r.

Section 3 of the bill would amend Highway Law § 12 to allow the State
Department of Transportation to contract with municipalities for terms
of up to five years for the control of snow and ice and other highway
maintenance activities on improved state highways in towns and
incorporated villages.

Section 4 is the effective date.

Part C: Shared Public Health Directors

Section 1 of the bill would amend Public Health Law (Pub. H. L.) § 351
to allow certain county and part-county health districts to share the
same commissioner or director and, under such circumstances, to also
have common health district board members, subject to the approval of
the State Department of Health.

Section 2 is the effective date

Part D: Procurement Reform

Section 1 of the bill would amend GML § 103(1) to raise local
competitive bidding thresholds on public works contracts from $20,000
to $35,000.

Part E: Authorizing the Municipal Bond Bank to issue Bond for
Municipalities under the American Recovery and Reinvestment Act

Section 1 of the bill would amend Public Authorities Law ("PAL") §
2431 to add to the legislative findings in support of expanding the
powers of MBBA to include the purchase of obligations issued by
municipalities to take advantage of the Recovery Act.

Section 2 of the bill would amend PAL § 2432(2) to add definitions and
clarify existing definitions to include bonds issued under the
Recovery Act.

Section 3 of the bill would amend PAL § 2434 to add a new subdivision
7-b to create an additional power for MBBA to acquire obligations
issued by municipalities, to provide for public improvements afforded
by the Recovery Act.

Section 4 of the bill would amend PAL § 2435(1) and (2) to eliminate
certain requirements contained therein as to the maximum amount of
bonds that MBBA may acquire from anyone municipality at anyone time,
in connection with the issuance of Recovery Act bonds.

Section 5 of the bill adds a new section PAL § 2436-b to provide for
access by MBBA, pursuant to the procedures specified therein, to
certain sales tax revenues and mortgage recording tax revenues at
local option in the event municipalities fail to pay principal or
interest on obligations of municipalities purchased by MBBA with the
proceeds of recovery act bonds, and provides that access to such
monies shall be in addition to the state aid guarantee found in PAL §
2436.

Section 6 of the bill would amend PAL § 2437 to provide that Recovery
Act bonds can be issued in public or private sales.

Section 7 of the bill would amend PAL § 2438(1) to exclude Recovery
Act bonds from the limitation on the aggregate amount of bonds that
can be issued by MBBA.

Section 8 of the bill would amend PAL § 2442(1) to provide that the
State may amend, modify, repeal or otherwise alter laws that relate to
state aid, taxes, fees, or appropriations without impairing bond
holders.

Section 9 of the bill would amend Local Finance Law § 85.80 to prevent
any municipality whose local ARRA bonds are secured by tax revenues
and purchased by MBBA from filing for bankruptcy while local Recovery
Act bonds remain outstanding.

Section 10 of the bill would require MBBA to submit an application for
approval to the New York State Public Authorities Control Board when
issuing Recovery Bonds and that the bond issuance charge would be
waived.

Section 11 provides for an immediate effective date.

Part F: Collateral source and anti-subrogation

Sections 1 through 9 would provide for the following:

* it will now be conclusively presumed that, except with respect to
payments made by a benefit provider for which there is a statutory
right of reimbursement, the money paid in settlement of any personal
injury or wrongful death action did not include compensation for the
losses or expenses that were or will be paid by benefit providers;

* a plaintiff in a personal injury or wrongful death action who
settles with one or more of the defendants in the action could
henceforth not be charged with thereby violating the provisions of any
contract between the plaintiff and a benefit provider;

* except for those payments made by a benefit provider for which there
is a statutory right of reimbursement, no defendant that enters into a
settlement with the personal injury or wrongful death plaintiff shall
be thereafter subject to any benefit provider's claim for subrogation
or reimbursement; and,

* those defendants who are "public employers" would now have the same
rights as all other defendants to reduce their liability by virtue of
collateral source payments that the plaintiff is reasonably certain to
receive.

 EXISTING LAW :

Collateral Source: While under present law, past and future awards in
cases against private defendants may be reduced by collateral sources,
CPLR §4545(b) currently provides that only past awards may be so
reduced in cases against public employers.

Local Procurement: GML § 103(1) currently provides that all contracts
for public work involving an expenditure of more than $20,000 and all
purchase contracts involving an expenditure of more than $10,000 must
be awarded to the lowest responsible bidder.

Multi-County Positions: Pub. H. L § 351 currently provides for a
county or part-county health commissioner.

Shared Highway Services: GML § 99-r currently provides that any
municipal corporation may enter into agreements with any state agency
to provide fuel, equipment, maintenance and repair, supplies, water
supply, street sweeping and maintenance, sidewalk maintenance or any
other services of government. Highway Law § 12 currently provides that
the maintenance of State highways includes the control of snow and ice
on such highways. The work of such control of snow and ice may be done
by any municipality. Any agreement authorized by this section shall be
for a term of three years.

Municipal Bond Bank: MBBA is currently authorized to purchase
obligations of municipalities for various purposes. Once those
obligations are purchased, MBBA is subject to various requirements
relating to: debt service reserve funds amounts of obligations that
can be purchased from individual municipalities, the process to be
used by MBBA in selling its bonds, and the type of state aid
guarantees that are available to MBBA in situations where the
municipalities fail to pay principal or interest on their obligations.
Current law does not authorize MBBA to access sales tax revenues or
mortgage recording taxes as available funding sources, in addition to
the state aid guarantee, in situations where municipalities fail to
pay principal or interest on their bonds.

 PRIOR LEGISLATIVE HISTORY :

Some of these provisions were included in Part HH and Part NN of
A.156A/S.56A (2009-10 Executive Budget).

 STATEMENT IN SUPPORT :

This bill seeks to modernize and reduce the cost of local government
with the aim of reducing property taxes in New York. It would provide
local governments relief from state mandates and mitigate governmental
inefficiencies created by state law. This bill would give additional
flexibility to local governments, empowering them to find operational
efficiencies.  This bill contains measures to make counties,
municipalities and other local entities more affordable, accountable,
and efficient.

Collateral Source and Subrogation Changes: The various collateral
source provisions of the CPLR were enacted to eliminate the common law
collateral source rule, which prohibited tortfeasors from reducing
their obligations to a plaintiff by the amount of benefits the
plaintiff receives from other sources, such as insurance. The
statute's purpose is to eliminate the windfall of double recoveries to
plaintiffs which often resulted from the common law collateral source
rule, while still ensuring that uncompensated losses are fully
compensated. Notwithstanding the trend to eliminate the windfalls that
result from the common law rule, and to safeguard public monies,
presently all defendants except public employers may offset against
awards for future costs or expenses any amounts that would with
reasonable certainty be replaced or indemnified. This bill would
ensure that public employers are treated the same as private employers
in tort actions. New York City estimates that it would save $ 14.5
million annually from this reform.

At present, there is no statutory authority that addresses or limits
the extent to which a benefit provider may claim contractual
reimbursement or subrogation with respect to medical expenses it has
paid pursuant to an insurance contract or other agreement. Likewise,
there is no statutory authority that specifies whether or under what
circumstances such a benefit provider may intervene as a party in a
personal injury or wrongful death action. For example, in a medical
malpractice action, a health insurer which has provided coverage to
the plaintiff may demand reimbursement for its expenses, often
unnecessarily prolonging cases, thwarting settlement talks and making
cases more expensive to litigate. Thus, it has become important that a
statutory framework be established to facilitate settlement of cases
and reduce expenses for litigants.

This bill would preclude a benefit provider to seek reimbursement or
subrogation against a settling defendant for those benefits paid to or
on behalf of plaintiff, unless specifically set forth by statute.  In
doing so, this bill would make the savings to defendants more
tangible, and allow cases to settle more quickly and without
unnecessary expense. This provision of the bill would be applicable to
actions for personal injury, medical, dental, or podiatric
malpractice, or wrongful death and would be inapplicable to the
subrogation of property damage claims.

Local Procurement: Currently, all contracts for public work involving
an expenditure of more than $20,000 must be awarded to the lowest
responsible bidder.

Insurance: This bill would amend the Insurance Law to relax the
requirements for forming a municipal cooperative health benefit plan
pursuant to Insurance Law Article 47.  These changes are necessary in
light of the current stringent requirements, under which not a single
municipal cooperative health benefit plan has been formed since the
enactment of Article 47 in 1994.

Multi-County Positions: The bill would also amend the Pub. H. L. to
allow certain county and part-county health districts to share the
same commissioner/director and to have common district board members.
This change would enable small county or part-county health districts
to reduce their administrative expenses without lowering the quality
of the services they provide.

Shared Highway Services: Currently, the State Department of
Transportation may contract with municipalities only for three-year
terms and may provide only snow and ice control services to
municipalities in emergencies. The bill's amendments to the Highway
Law would make the delivery of highway services more efficient and
cost-effective at both the State and local levels.

Municipal Bond Bank: In 2009, the federal government passed the
Recovery Act which enacted into law a number of changes relating to
how municipalities could borrow to pay for public improvements.
Specifically, the Recovery Act provided new categories of taxable
bonds known as "Build America Bonds" and "Recovery Zone Economic
Development Bonds" that could be issued in lieu of tax exempt bonds
and that allow issuers to choose either to receive a direct federal
subsidy or to offer bondholders a federal tax credit. Both Build
America Bonds and Recovery Zone Economic Development Bonds may only be
issued in 2009 and 2010. Recovery Zone Economic Development Bonds may
only be issued for investment in "recovery zones." These new types of
powers can be used by municipalities to fund public infrastructure
improvements in their jurisdictions. Municipalities throughout the
State, particularly in today's economic climate, are urgently looking
to fund much-needed improvements through these new financing vehicles
which can provide substantially reduced financing cost versus tax
exempt bonds. As always, their goal is to do so in the most
cost-efficient way possible, to ensure savings for their constituents.

The reason behind the proposed amendments to the MBBA statute is to
make MBBA available to municipalities across the State, so they can
participate and benefit from the new financing options authorized
under the Recovery Act. This will allow municipalities to fund
critical infrastructure and economic development projects in the most
efficient, and cost-effective way. Since its inception, MBBA's purpose
has been to make funds available at reduced interest costs to local
governments to finance public improvements and purposes, particularly
for those municipalities not otherwise able to borrow for such
purposes. MBBA is there to streamline borrowing by local governments,
by issuing bonds in the municipal credit markets and using the
proceeds to purchase the obligations issued by municipalities. This
process allows MBBA to provide interest rate savings to
municipalities, as MBBA can sell bonds at lower interest rates due to
their inherent credit protections and higher credit rating, and pass
along the savings to municipalities. Given that both Build America
Bonds and Recovery Zone Economic Development Bonds must be issued in
taxable form, MBBA will also be able to take advantage of the market
efficiencies that can be provided to larger size issues.

As municipalities throughout the State consider using the new types of
obligations authorized under the Act, having access to MBBA financing
will ensure that they receive the most favorable rates of interest.
MBBA is a proven market participant, having issued bonds on behalf of
various state entities over the years. Its market position allows it
to issue bonds at lower rates of interest than those that can be
issued by smaller, less well-known issuers.

The current statute, whose provisions dealing with the purchase of
municipal bonds of municipalities by MBBA date back to 1972, needs to
be modernized in order to allow for maximum efficiency. The statute
currently offers only one type of intercept (state aid) in situations
where the municipalities fail to pay principal or interest on the
bonds acquired by MBBA. The proposal is to add an additional source of
funding, an intercept of sales tax and/or mortgage recording tax. The
local tax revenue intercept option is proposed in order to allow
municipalities to make optimal use of the Recovery Act bonding
authorization. Additionally, certain clean-up changes are included,
dealing with limitations on the amount of bonds of individual
municipalities that can be purchased, and on the way in which the MBBA
bonds are sold.

 BUDGET IMPLICATIONS :

The Local Government Commission on Efficiency and Competitiveness and
the Property Tax Commission had extensive deliberations and produced
comprehensive recommendations to reduce local costs and provide
taxpayer savings. This bill would implement some of these provide
significant fiscal relief and increased operational flexibility to
local governments, enabling them to better control costs and provide
property tax relief.

Municipal Bond Bank: This bill would have no cost to the State. MBBA
Recovery Act bonds would not be a debt of the State, and would be
secured by municipalities' debt service payments on their local ARRA
bonds or, in the event of municipal default, by the intercept of State
aid and/or municipal tax revenues.

Municipalities participating in a pooled local ARRA bond issue through
MBBA would be able to issue debt at a lower cost than otherwise
possible. For the purposes of this bill, local ARRA bonds would
include two types of taxable bonds: Build America Bonds and Recovery
Zone Economic Development Bonds. These bonds, which municipalities may
issue only in 2009 and 2010, offer federal interest subsidies of 35
percent and 45 percent, respectively. Build America Bonds are not
subject to a volume cap, and the authority to issue such bonds is
granted to any municipality. Recovery Zone bonds are subject to a
volume cap, and the authority to issue such bonds is allocated among
counties and large municipalities. The U.S. Treasury Department has
allocated over $370 million to New York for Recovery Zone Economic
Development Bonds. The net interest rate on such taxable bonds, after
factoring in the subsidy, is currently lower than the interest rate on
comparable tax-exempt bonds. However, since the taxable bond market
prefers bond issues of at least $100 million, receiving the lowest
possible rate on the ARRA bonds in effect requires multiple
municipalities to participate in a pooled Issue.

 EFFECTIVE DATE :
This bill has various effective dates.

2009-S66002 (ACTIVE) - Bill Text download pdf

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

    S. 2                                                        A. 2

                     Twentieth Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            November 10, 2009
                               ___________

IN  SENATE  --  Introduced by Sen. STEWART-COUSINS -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Rules

IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
  A. Hoyt, Weinstein) -- (at request of the Governor) -- read  once  and
  referred to the Committee on Codes

AN  ACT to amend the insurance law, in relation to municipal cooperative
  health benefit plans, a study of community rating and the provision of
  claims experience to a municipality (Part A);  to  amend  the  general
  municipal law and the highway law, in relation to mutual aid (Part B);
  to  amend  the  public  health  law, in relation to the composition of
  county and part-county boards of health (Part C); to amend the general
  municipal law, in relation to purchasing  requirements  (Part  D);  to
  amend  the  public  authorities  law  and  the  local  finance law, in
  relation to authorizing certain bonds to be issued or purchased by the
  municipal bond bank agency (Part E); and to amend the  civil  practice
  law  and  rules, in relation to treating public and private defendants
  equally when considering the impact of collateral source  payments  in
  tort claims for personal injury, property damage or wrongful death; to
  amend  the  general obligations law, in relation to protecting parties
  to the settlement of a  tort  claim  from  certain  unwarranted  lien,
  reimbursement and subrogation claims; and to repeal certain provisions
  of  the  civil  practice  law  and rules relating to collateral source
  payments (Part F)

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

  Section  1.    Each component of this act is wholly contained within a
Part identified as Parts A  through  F.  The  effective  date  for  each
particular provision contained within such Part is set forth in the last
section  of  such  Part. Any provision in any section contained within a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12121-02-9

S. 2                                2                               A. 2

Part, including the effective date of the Part, which makes reference to
a section "of this act", when used in connection  with  that  particular
component,  shall  be  deemed  to  mean  and  refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 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:

S. 2                                3                               A. 2

  (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
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. 2                                4                               A. 2

  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
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,

S. 2                                5                               A. 2

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
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

S. 2                                6                               A. 2

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
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-

S. 2                                7                               A. 2

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,
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

S. 2                                8                               A. 2

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-
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

S. 2                                9                               A. 2

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
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,

S. 2                               10                               A. 2

"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-
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.

S. 2                               11                               A. 2

  (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
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.

S. 2                               12                               A. 2

  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
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-

S. 2                               13                               A. 2

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
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

S. 2                               14                               A. 2

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
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

S. 2                               15                               A. 2

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
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-

S. 2                               16                               A. 2

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.
  (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

S. 2                               17                               A. 2

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
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:

S. 2                               18                               A. 2

  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
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. 2                               19                               A. 2

  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:
  (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

S. 2                               20                               A. 2

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:
  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-

S. 2                               21                               A. 2

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.

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