Senate Bill S6954C

                                 BILL NUMBER:  S6954

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


 PURPOSE OR GENERAL IDEA OF BILL :

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

 SUMMARY OF PROVISIONS :

Section 1 - Repeals chapter 241 of the laws of 1930.

Section 2 - Repeals chapter 181 of the laws of 1939.

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

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

Section 5 - Effective date.

 JUSTIFICATION :

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

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

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

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

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

 PRIOR LEGISLATIVE HISTORY :

New legislation.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
April 1, 2011

                                 BILL NUMBER:  S6954A

 TITLE OF BILL :

An act to repeal chapter 241 of the laws of 1930 relating to the New
York Board of Fire Underwriters, relating to the elimination of such
board; and to repeal chapter 181 of the laws of 1939 amending chapter
241 of the laws of 1930 relating to the amount and assessment of
expenses of the fire patrol, relating to the elimination of such board


 PURPOSE OR GENERAL IDEA OF BILL :

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

 SUMMARY OF PROVISIONS :

Section 1 - Repeals chapter 241 of the laws of 1930.

Section 2 - Repeals chapter 181 of the laws of 1939

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

of State Fire.

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

Section 5 - Effective date.

 JUSTIFICATION :

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

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

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

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

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

New legislation.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
July 1, 2010.

                                BILL NUMBER:S6954B

TITLE OF BILL:

An act to repeal chapter 241 of the laws of 1930 relating to the New
York Board of Fire Underwriters, relating to the elimination of such
board; and to repeal chapter 181 of the laws of 1939 amending chapter
241 of the laws of 1930 relating to the amount and assessment of
expenses of the fire patrol, relating to the elimination of such board

PURPOSE OR GENERAL IDEA OF BILL:

This bill would abolish the New York Board of Fire Underwriters, along
with its assessment power, and permit the Secretary of State to estab-
lish an electrical inspection pilot program if so desired. Such pilot
program shall only be available to underserved areas.

SUMMARY OF PROVISIONS:

Section 1 - Repeals chapter 241 of the laws of 1930.

Section 2 - Repeals chapter 181 of the laws of 1939.

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

Fire.

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

Section 5 - Effective date.

JUSTIFICATION:

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

However, over time the Board found that the Fire Patrol was unable to
adequately protect property from fires or related damage (e.g. modern
electronics, prevalent throughout residences and offices, are often
damaged beyond use despite Patrol efforts). As such, the effectiveness
and use of the Fire Patrol diminished to the point where it was deter-
mined by the Board that it was no longer necessary and the self-assess-

ments were burdening member companies with unnecessary costs that only
increased the eventual cost to the consumer. The result was that the
Fire Patrol was disbanded in 2006.

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

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

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

PRIOR LEGISLATIVE HISTORY:

New legislation

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

July 1, 2010.