Senate Bill S1029A

2011-2012 Legislative Session

Establishes the office of risk assessment and management within the office of general services

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Archive: Last Bill Status - In Senate Committee Finance Committee

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to finance
Mar 17, 2011	print number 1029a
Mar 17, 2011	amend and recommit to finance
Jan 05, 2011	referred to finance

Bill Amendments

Original

A (Active)

co-Sponsors

2011-S1029 - Details

See Assembly Version of this Bill:: A8612
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 10-A §§204 - 207, Exec L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6885
2013-2014: S2326, A4282
2015-2016: A3143
2017-2018: A7416

2011-S1029 - Summary

Establishes the office of risk assessment and management within the office of general services to determine the state's potential exposure to liability for its acts and omissions; such office shall also advise state agencies on proper risk management techniques and procedures.

2011-S1029 - Sponsor Memo

                                 BILL NUMBER:  S1029

 TITLE OF BILL :
An act to amend the executive law, in relation to establishing the
office of risk assessment and management

 PURPOSE :
To institute a formal risk management regiment into daily State
operations and procedures. Instituting a formal risk management
regiment to state operations will help to minimize the state's future
losses and liability exposure due to physical injury to state
employees and the general public and damage to physical property owned
and controlled by the state.

 SUMMARY OF PROVISIONS :
Section 1 Adds Executive Law Article 10-A to create the Office of Risk
Assessment and Management within the Office of General Services. The
bill provides for the appointment of a risk manager and establishes
duties and responsibilities of the state Risk Manager. The risk
manager is to help contain future state liabilities due to physical
injury or damage to property that occurs during the course of state
operations.

The amendment to this bill S.6885-A adds qualifications that the risk
manager should have to be appointed to that position.

Among the responsibilities of the risk manager include:  1) conduct an
inventory of all state real property and ascertain past, present and
future liability exposure due to state operations on such property.
2) conduct a study of the actions of the court of claims and payment
of those claims to ascertain trends in the payment of state claims due
to injury of persons or property. 3) conduct a study of current state
practices and how those practices could be altered to minimize future
claims brought against the state. This will be done by advising
various State agencies on proper risk management techniques and
procedures.  4) the amendment to this bill S.6885-A adds the ability
to look at financial losses arising from the ownership or use of real
or personal property and to establish business continuity programs for
state services.

State agencies are to cooperate with the work of the State risk
manager.  Once the risk manager has suggested a risk management
technique, the state agency has time to comment on that
recommendation. Any public benefit corporation or public authority can
contract with the state risk manager to perform risk management
services or supplement already existing internal risk assessment and
management services.

The bill also clearly authorizes the state's risk manager to contract
with outside vendors or consultants with expertise in risk management,
claims management, or safety management.

Section 2 provides for an effective date of 180 days after the bill
shall have become law.

 EXISTING LAW :
None.

 JUSTIFICATION :
The State of New York each year faces dramatic exposure and
third-party liability both to persons under the care and custody of
the state and visitors to state premises. In 1995, the liabilities for
Workers' compensation alone exceed $150 million per year and tort
actions have cost the State better than $70 million per year. The
creation of central office of risk assessment and management would go
far to determine the full extent of the State's exposure to civil tort
liability and allow the state to systemically reduce such exposure
through the integration of professional risk management procedures
into daily state operations.

Enactment of this measure would also bring New York State in line with
a majority of states, most larger municipalities, and most large
corporate entities that have centralized risk management procedures.
Not only will this bill help reduce the annual payments to satisfy
personal and property damage against the state, it will help to reduce
personal injuries sustained by State employees and members of the
general public.

 LEGISLATIVE HISTORY :
2010 - S.6885 - REFERRED TO FINANCE

 FISCAL IMPLICATIONS :
No initial cost to the State and in future years, there will be
sizable savings in state costs for injuries sustained to persons and
property.  In financing the work of the new risk manager, many other
states and municipal governments appoint an experienced risk
management company to conduct the work of risk management and
assessment. The funds needed to support such risk manager's work is
received from a percentage of money that the risk manager saves the
participating state or municipality.  Preliminary estimates are that
this bill will reduce state costs by $ 150 Million in the first year.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
180 days after its enactment into law.

2011-S1029 - Bill Text download pdf

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

                                  1029

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  KLEIN, ADDABBO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Finance

AN ACT to amend the executive  law,  in  relation  to  establishing  the
  office of risk assessment and management

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

  Section 1. The executive law is amended by adding a new  article  10-A
to read as follows:
                               ARTICLE 10-A
                OFFICE OF RISK ASSESSMENT AND MANAGEMENT
SECTION 204. DEFINITIONS.
        205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
               RISK MANAGER.
        206. FUNCTIONS AND DUTIES OF THE OFFICE.
        207. BOARD OF RISK ASSESSMENT AND MANAGEMENT.
  S 204. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1. "ENTERPRISE RISK MANAGEMENT" SHALL MEAN A STRATEGIC DISCIPLINE THAT
SUPPORTS  THE  ACHIEVEMENT  OF  THE STATE'S OBJECTIVES BY ADDRESSING THE
FULL SPECTRUM OF ITS RISKS AND MANAGES  THE  COMBINED  IMPACT  OF  THOSE
RISKS AS AN INTERRELATED RISK PORTFOLIO.
  2.  "OFFICE"  SHALL  MEAN THE OFFICE OF RISK ASSESSMENT AND MANAGEMENT
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED FIVE OF THIS ARTICLE.
  3. "RISK MANAGER" SHALL MEAN THE RISK MANAGER OF THE OFFICE.
  4. "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, DIVISION, BOARD,  COMMIS-
SION, BUREAU, OFFICE OR OTHER AGENCY OF THE STATE.
  S  205.  OFFICE  OF  RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
RISK MANAGER. 1. THERE SHALL BE ESTABLISHED WITHIN THE OFFICE OF GENERAL
SERVICES, AN OFFICE OF RISK ASSESSMENT AND MANAGEMENT.  THERE  SHALL  BE
APPOINTED  BY  THE  COMMISSIONER OF GENERAL SERVICES THE RISK MANAGER OF
THE OFFICE, WHO SHALL BE CHARGED WITH  THE  DUTY  OF  ADMINISTERING  THE

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

                                                           LBD05007-01-1

S. 1029                             2

OFFICE.  THE  COMMISSIONER OF GENERAL SERVICES SHALL FIX COMPENSATION OF
THE RISK MANAGER WITHIN THE AMOUNTS APPROPRIATED THEREFOR.
  2. THE RISK MANAGER SHALL HAVE THE FOLLOWING QUALIFICATIONS:
  (A)  AN  UNDERSTANDING  OF  AND  THE  ABILITY  TO  APPLY THE GENERALLY
ACCEPTED PRINCIPLES, STANDARDS AND TECHNIQUES UTILIZED FOR THE IDENTIFI-
CATION, ASSESSMENT AND MANAGEMENT OF ENTERPRISE RISK; AND
  (B) SUFFICIENT  EXPERIENCE  IN  IDENTIFYING,  ASSESSING  AND  MANAGING
ENTERPRISE RISK EXPOSURES THAT PRESENT THE BREADTH AND LEVEL OF COMPLEX-
ITY  OF  ISSUES  THAT CAN REASONABLY BE EXPECTED TO BE RAISED DURING THE
COURSE OF STATE OPERATIONS.
  3. EVERY RISK MANAGER SHALL HAVE ACQUIRED HIS OR  HER  QUALIFICATIONS,
AS  REQUIRED  BY  SUBDIVISION  TWO  OF THIS SECTION, THROUGH APPROPRIATE
EDUCATION AND RELEVANT RISK MANAGEMENT EXPERIENCE ON BEHALF OF A COMMER-
CIAL OR GOVERNMENTAL ORGANIZATION.
  S 206. FUNCTIONS AND DUTIES OF THE OFFICE.  1.  THE  FUNCTION  OF  THE
OFFICE SHALL BE:
  (A)  TO DETERMINE THE POTENTIAL EXPOSURE OF THE STATE TO LIABILITY AND
FINANCIAL LOSS ARISING FROM ITS ACTS AND OMISSIONS, AND FROM THE  OWNER-
SHIP AND/OR USE OF ITS REAL AND PERSONAL PROPERTY;
  (B)  TO  ESTABLISH  AND  COORDINATE  BUSINESS  CONTINUITY PROGRAMS FOR
ESSENTIAL STATE FUNCTIONS AND SERVICES;
  (C) TO IMPLEMENT RISK MANAGEMENT PROGRAMS TO MANAGE THE STATE'S  EXPO-
SURE TO RISK IN THE MOST COST EFFECTIVE MANNER INCLUDING, BUT NOT LIMIT-
ED  TO,  PROGRAMS  TO  REDUCE  THE LIKELIHOOD AND POTENTIAL COST OF LOSS
EVENTS, AND THE PURCHASE OF INSURANCE WHERE APPROPRIATE; AND
  (D) TO COORDINATE AND SUPPORT THE  RISK  MANAGEMENT  PROGRAMS  OF  ALL
STATE AGENCIES.
  2.  THE  RISK  MANAGER  AND  OFFICE  SHALL FULFILL THEIR FUNCTIONS AND
DUTIES BY:
  (A) CONDUCTING A STUDY OF THE STATE'S RISK  EXPOSURES  ON  AN  ONGOING
BASIS. SUCH STUDY SHALL INCLUDE:
  (I)  PRACTICES  AND  PROCEDURES OF ALL STATE AGENCIES, AS THEY PERTAIN
TO, IMPACT UPON, CAUSE OR DETER DAMAGE TO PHYSICAL PROPERTY OR  INJURIES
TO STATE EMPLOYEES, PERSONS RECEIVING SERVICES FROM THE STATE OR MEMBERS
OF THE GENERAL PUBLIC;
  (II)  THE ACTIONS AND CLAIM SETTLEMENTS OF THE COURT OF CLAIMS AS THEY
RELATE TO THE DISPOSITION OF MATTERS AGAINST THE STATE, FOR THE  PURPOSE
OF  DETERMINING  PAST AND PRESENT EXPOSURES TO LIABILITY, THE NATURE AND
MAGNITUDE OF SUCH EXPOSURES, AND THE TECHNIQUES FOR REDUCING THE COST OF
MANAGING AND SETTLING CLAIMS ARISING FROM SUCH EXPOSURES;
  (III) THE ESSENTIAL OPERATIONS AND SERVICE FUNCTIONS OF THE STATE, AND
THE PROCEDURES NECESSARY TO MAINTAIN  OR  RESTORE  SUCH  OPERATIONS  AND
FUNCTIONS TO THE REQUIRED LEVEL FOLLOWING AN EMERGENCY EVENT;
  (IV)  THE  POTENTIAL  FUTURE  LIABILITIES  ARISING  FROM  EXISTING  OR
PROPOSED STATE OPERATIONS OR FUNCTIONS;
  (V) THE PREPARATION OF AN INVENTORY OF  ALL  REAL  PROPERTY  OWNED  OR
LEASED, FOR A PERIOD OF TIME OF MORE THAN FIVE YEARS, BY ALL STATE AGEN-
CIES,  AND  TO  ASCERTAIN  PAST,  PRESENT AND POTENTIAL FUTURE LIABILITY
EXPOSURES AND THE NATURE OF THOSE EXPOSURES; AND
  (VI) THE DESIGN AND IMPLEMENTATION OF APPROPRIATE COST EFFECTIVE TECH-
NIQUES AND PROGRAMS TO REDUCE  THE  COST  OF  THE  STATE'S  EXPOSURE  TO
LIABILITY  AND  FINANCIAL LOSS ARISING FROM ITS OPERATIONS OR THE OWNER-
SHIP AND/OR USE OF REAL AND PERSONAL  PROPERTY,  INCLUDING  RECOMMENDING
STEPS AND PROCEDURES TO BE IMPLEMENTED BY INDIVIDUAL STATE AGENCIES.

S. 1029                             3

  THE  RISK  MANAGER,  IN THE PERFORMANCE OF SUCH STUDY, SHALL ENJOY THE
FULL COOPERATION AND ASSISTANCE OF  STATE  AGENCIES  AND  THE  COURT  OF
CLAIMS; AND
  (B)  RECOMMENDING AND IMPLEMENTING THE APPROPRIATE RISK MANAGEMENT AND
BUSINESS CONTINUITY PROGRAMS AS SHALL BE NECESSARY.
  3. SUCH STUDY AND RECOMMENDATIONS SHALL BE COMPLETED AND SENT  TO  THE
GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, EXECUTIVE OFFICER OF EACH STATE
AGENCY  INCLUDED  THEREIN, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF
THE ASSEMBLY, MINORITY LEADER OF THE SENATE AND MINORITY LEADER  OF  THE
ASSEMBLY  NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS
ARTICLE.  THE STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED  AS
IS PERIODICALLY DEEMED APPROPRIATE BY THE RISK MANAGER; PROVIDED, HOWEV-
ER, THAT SUCH STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED NOT
LESS THAN ONCE EVERY FIVE YEARS.
  4. THE OFFICE SHALL ADVISE THE VARIOUS STATE AGENCIES ON PROPER ENTER-
PRISE  RISK MANAGEMENT TECHNIQUES AND PROCEDURES, AND THE IMPLEMENTATION
THEREOF, FOR THE PURPOSE OF REDUCING EXPOSURES TO LIABILITY  AND  FINAN-
CIAL  LOSS,  OR  THE  DISRUPTION OF ESSENTIAL STATE OPERATIONS AND FUNC-
TIONS, AS WELL AS ALL RESPONSIBILITIES  AND  DUTIES  OF  THE  BUREAU  OF
INSURANCE  IN THE OFFICE OF GENERAL SERVICES. THOSE AGENCIES INVOLVED IN
OR RESPONSIBLE FOR THE CONSTRUCTION  OR  MAINTENANCE  OF  STRUCTURES  OR
ROADWAYS,  THE  CARE AND CUSTODY OF PERSONS MORE THAN IN TEMPORARY QUAR-
TERS, THE PROVISION OF SERVICES OF THE GENERAL PUBLIC, AND  THOSE  AGEN-
CIES WITH VEHICLES ASSIGNED FOR THEIR USE, SHALL UNDERGO DETAILED ENTER-
PRISE  RISK  MANAGEMENT ANALYSIS AND, WHEREVER PRACTICABLE AND AFTER THE
AGENCY IS GRANTED AN OPPORTUNITY TO REVIEW AND APPEAL THE  FINDINGS  AND
RECOMMENDATIONS  OF  SUCH ANALYSIS, IMPLEMENT THE RECOMMENDATIONS OF THE
RISK MANAGER WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE THAT SUCH RECOM-
MENDATIONS ARE AGREED TO BY THE EXECUTIVE OFFICER OF SUCH AGENCY.
  5. THE RISK MANAGER SHALL FILE AN ANNUAL REPORT ON THE  ACTIVITIES  OF
THE  OFFICE  WITH THE GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, THE  MINORITY  LEADERS
OF  THE  SENATE AND ASSEMBLY, SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS
AND MEANS COMMITTEE, NO LATER THAN ONE HUNDRED  EIGHTY  DAYS  AFTER  THE
COMPLETION OF THE CALENDAR YEAR TO WHICH THE REPORT REFERS.
  6. ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY MAY CONTRACT FOR
THE  SERVICES  OF THE RISK MANAGER AND THE OFFICE IN THE EVENT THAT SUCH
PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY IS WITHOUT INTERNAL  RISK
ASSESSMENT AND ENTERPRISE RISK MANAGEMENT SERVICES, OR WISHES TO SUPPLE-
MENT  SUCH  INTERNAL  SERVICES  WITH  THE  SERVICES PROVIDED BY THE RISK
MANAGER AND THE OFFICE.
  7. THE RISK MANAGER MAY REVIEW, STUDY AND ENTER  INTO  A  RELATIONSHIP
WITH:  (A) OUTSIDE VENDORS OR CONSULTANTS WITH EXPERTISE IN RISK MANAGE-
MENT, CLAIMS MANAGEMENT OR SAFETY MANAGEMENT, AND (B) CAPTIVE  INSURANCE
COMPANIES, AS DEFINED IN SUBSECTION (C) OF SECTION SEVEN THOUSAND TWO OF
THE  INSURANCE  LAW,  OR  OTHER RISK SHARING ENTITIES TO REDUCE PERSONAL
INJURY OR PROPERTY DAMAGE LIABILITY CLAIMS AND PAYMENTS,  EITHER  ON  AN
ANNUAL BASIS OR OVER A LONGER PERIOD OF TIME, FOR ALL STATE AGENCIES, OR
AN INDIVIDUAL STATE AGENCY, PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHOR-
ITY.
  S  207.    BOARD OF RISK ASSESSMENT AND MANAGEMENT. 1. THERE IS HEREBY
ESTABLISHED, WITHIN THE OFFICE, A STATE BOARD  OF  RISK  ASSESSMENT  AND
MANAGEMENT.  THE BOARD, TO BE COMPRISED OF THE RISK MANAGER, THE COMMIS-
SIONER OF GENERAL SERVICES, THE CHAIR OF THE STATE INSURANCE  FUND,  THE
PRESIDENT  OF  THE  STATE  CIVIL SERVICE COMMISSION, THE DIRECTOR OF THE
OFFICE OF EMPLOYEE RELATIONS, THE DIRECTOR OF THE DIVISION OF THE  BUDG-

S. 1029                             4

ET,  AND  A  REPRESENTATIVE  OF EACH PUBLIC EMPLOYEE ORGANIZATION, SHALL
MEET QUARTERLY FOR THE PURPOSE OF EXAMINING CURRENT  METHODS  OF  ENTER-
PRISE  RISK  MANAGEMENT  AND  CONTROL  DEPLOYED BY THE STATE, AND REVIEW
INSTANCES  OF  DIFFICULTY  IN DEPLOYING SOUND RISK ASSESSMENT AND ENTER-
PRISE RISK MANAGEMENT PROCEDURES.
  2. A SUMMARY OF THE PROCEEDINGS OF THE BOARD, WITH RECOMMENDATIONS FOR
IMPROVEMENT OF THE STATE'S RISK  MANAGEMENT  PRACTICES  AND  PROCEDURES,
SHALL  BE  INCLUDED  IN  THE ANNUAL REPORT OF THE RISK MANAGER. THE RISK
MANAGER SHALL TAKE INTO CONSIDERATION THE  RECOMMENDATIONS  PERIODICALLY
MADE  BY  THE BOARD IN CONDUCTING HIS OR HER MANAGEMENT AND ABATEMENT OF
POTENTIAL LIABILITY ACTIVITIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary for the timely implementation of this act  on  its  effective  date
shall be promulgated on or before such date.

co-Sponsors

2011-S1029A (ACTIVE) - Details

See Assembly Version of this Bill:: A8612
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add Art 10-A §§204 - 207, Exec L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6885
2013-2014: S2326, A4282
2015-2016: A3143
2017-2018: A7416

2011-S1029A (ACTIVE) - Summary

2011-S1029A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1029A

PURPOSE:

To strengthen and institute a formal risk management regiment into
daily State operations and procedures. Instituting a formal risk
management regiment to state operations will help to minimize the
state's future losses and liability exposure due to physical injury
to state employees and the general public and damage to physical
property owned and controlled by the state.

SUMMARY OF PROVISIONS:

Section 1 Adds Executive Law Article 10-A to codify into the law an
Office of Risk Assessment and Management (ORAM) within the Office of
General Services (OGS). The bill provides for the appointment of a
risk manager and establishes duties and responsibilities of the state
Risk Manager. The risk manager is to help contain future state
liabilities due to physical injury or damage to property that occurs
during the course of state operations.

In the end, due to the existence of the Bureau of Risk and Insurance
Management (BRIM)that is already within the OGS, BRIM's role will
probably be expanded to take on the responsibilities of the ORAM.
Hence, there will be no fiscal cost to this bill. Further, in
securing risk management consultants, many times, such consultants

work on a commission basis, so their costs will be paid for out of
the cost savings that they generate for the State of New York.

This bill was amended last year to add qualifications that the risk
manager should have to be appointed to that position.

Among the responsibilities of the risk manager include: 1) conduct an
inventory of all state real property and ascertain past, present and
future liability exposure due to state operations on such property.
2) conduct a study of the actions, claims, and claims settlement
processes of the court of claims, actions in the New York and Federal
Courts, and payment of those claims to ascertain trends in the
payment of state claims due to injury of persons or property. 3)
conduct a study of current state practices and how those practices
could be altered to minimize future claims brought against the state.
This will be done by advising various State
agencies on proper risk management techniques and procedures. 4) adds
the ability to look at financial losses arising from the ownership,
control or use of real or personal property and to establish business
continuity programs for state services.

State agencies are to cooperate with the work of the State risk manager.
Once the risk manager has suggested a risk management technique, the
state agency has time to comment on that recommendation.

Any public benefit corporation, public authority, or local government
can contract with the state risk manager to perform risk management
services or supplement already existing internal risk assessment and
management services.
This could help reduce the cost of providing services for local


governments, and hence help to reduce the increasing cost of real
property taxes.

The bill also clearly authorizes the state's risk manager to contract
with outside vendors or consultants with expertise in risk
management, claims management, or safety management. As stated
before, it is a common practice for such consultants to be paid on a
percentage basis based upon the cost savings that they generate for
the State of New York or its municipalities.

Section 2 provides for an effective date of 180 days after the bill
shall have become law.

EXISTING LAW:
There is the BRIM, but this bill expands the ability of
BRIM to secure additional cost savings for the State of New York.

JUSTIFICATION:

The State of New York each year faces dramatic exposure and
third-party liability both to persons under the care and custody of
the state and visitors to state premises. In 2007, the liabilities
for workers' compensation alone exceed $1.7 Billion for indemnity
claims and 1.2 Billion for medical claims. Further, tort actions
adjudicated in the Court of Claims cost $82.5 million last year alone.

The expansion of a central Office of Risk Assessment and Management
would go far to determine the full extent of the State's exposure to
civil tort liability and allow the state to systemically reduce such
exposure through the integration of professional risk management
procedures into daily state operations.

Enactment of this measure would also bring New York State in line with
a majority of states, most larger municipalities, and most large
corporate entities that have centralized risk management procedures.
Not only will this bill help reduce the annual payments to satisfy
personal and property damage against the state, it will help to
reduce personal injuries sustained by State employees and members of
the general public. Further details on the need to codify and expand
the responsibilities and duties of a state-wide risk manager can be
found in a report produced by Senator Klein entitled. "Expansion of
New York State's Risk Assessment and Management Activities" stated
March 2011.

LEGISLATIVE HISTORY:
2010 - S.6885 - REFERRED TO FINANCE

FISCAL IMPLICATIONS:

No initial cost to the State and in future years, there will be
sizable savings in state costs for injuries sustained to persons and
property.
In financing the work of the new risk manager, many other states and
municipal governments appoint an experienced risk management company
to conduct the work of risk management and assessment. The funds
needed to support such risk manager's work is received from a
percentage of money that the risk manager saves the participating


state or municipality.
Preliminary estimates are that this bill will reduce state costs by
$150 Million in the first year.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
180 days after its enactment into law.

2011-S1029A (ACTIVE) - Bill Text download pdf

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

                                 1029--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  KLEIN, ADDABBO -- read twice and ordered printed,
  and when printed to be  committed  to  the  Committee  on  Finance  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the executive  law,  in  relation  to  establishing  the
  office of risk assessment and management

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

  Section 1. The executive law is amended by adding a new  article  10-A
to read as follows:
                               ARTICLE 10-A
                OFFICE OF RISK ASSESSMENT AND MANAGEMENT
SECTION 204. DEFINITIONS.
        205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
               RISK MANAGER.
        206. FUNCTIONS AND DUTIES OF THE OFFICE.
        207. BOARD OF RISK ASSESSMENT AND MANAGEMENT.
  S 204. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1. "ENTERPRISE RISK MANAGEMENT" SHALL MEAN A STRATEGIC DISCIPLINE THAT
SUPPORTS  THE  ACHIEVEMENT  OF  THE STATE'S OBJECTIVES BY ADDRESSING THE
FULL SPECTRUM OF ITS RISKS AND MANAGES  THE  COMBINED  IMPACT  OF  THOSE
RISKS AS AN INTERRELATED RISK PORTFOLIO.
  2.  "LOCAL  GOVERNMENT"  SHALL  MEAN  ANY COUNTY, CITY, TOWN, VILLAGE,
SUPERVISORY  DISTRICT,  SCHOOL  DISTRICT,  FIRE  DISTRICT,   IMPROVEMENT
DISTRICT OR SPECIAL DISTRICT.
  3.  "OFFICE"  SHALL  MEAN THE OFFICE OF RISK ASSESSMENT AND MANAGEMENT
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED FIVE OF THIS ARTICLE.
  4. "RISK MANAGER" SHALL MEAN THE RISK MANAGER OF THE OFFICE.
  5. "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, DIVISION, BOARD,  COMMIS-
SION, BUREAU, OFFICE OR OTHER AGENCY OF THE STATE.

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

                                                           LBD05007-03-1

S. 1029--A                          2

  S  205.  OFFICE  OF  RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
RISK MANAGER. 1. THERE SHALL BE ESTABLISHED WITHIN THE OFFICE OF GENERAL
SERVICES, AN OFFICE OF RISK ASSESSMENT AND MANAGEMENT.  THERE  SHALL  BE
APPOINTED  BY  THE  COMMISSIONER OF GENERAL SERVICES THE RISK MANAGER OF
THE  OFFICE,  WHO  SHALL  BE  CHARGED WITH THE DUTY OF ADMINISTERING THE
OFFICE. THE COMMISSIONER OF GENERAL SERVICES SHALL FIX  COMPENSATION  OF
THE RISK MANAGER WITHIN THE AMOUNTS APPROPRIATED THEREFOR.
  2. THE RISK MANAGER SHALL HAVE THE FOLLOWING QUALIFICATIONS:
  (A)  AN  UNDERSTANDING  OF  AND  THE  ABILITY  TO  APPLY THE GENERALLY
ACCEPTED PRINCIPLES, STANDARDS AND TECHNIQUES UTILIZED FOR THE IDENTIFI-
CATION, ASSESSMENT AND MANAGEMENT OF ENTERPRISE RISK; AND
  (B) SUFFICIENT  EXPERIENCE  IN  IDENTIFYING,  ASSESSING  AND  MANAGING
ENTERPRISE RISK EXPOSURES THAT PRESENT THE BREADTH AND LEVEL OF COMPLEX-
ITY  OF  ISSUES  THAT CAN REASONABLY BE EXPECTED TO BE RAISED DURING THE
COURSE OF STATE OPERATIONS.
  3. EVERY RISK MANAGER SHALL HAVE ACQUIRED HIS OR  HER  QUALIFICATIONS,
AS  REQUIRED  BY  SUBDIVISION  TWO  OF THIS SECTION, THROUGH APPROPRIATE
EDUCATION AND RELEVANT RISK MANAGEMENT EXPERIENCE ON BEHALF OF A COMMER-
CIAL OR GOVERNMENTAL ORGANIZATION.
  S 206. FUNCTIONS AND DUTIES OF THE OFFICE.  1.  THE  FUNCTION  OF  THE
OFFICE SHALL BE:
  (A)  TO DETERMINE THE POTENTIAL EXPOSURE OF THE STATE TO LIABILITY AND
FINANCIAL LOSS ARISING FROM ITS ACTS AND OMISSIONS, FROM THE  OWNERSHIP,
CONTROL  OR USE OF ITS REAL AND PERSONAL PROPERTY, OR CONDUCT OR ACTIONS
OF ITS EMPLOYEES OR AGENTS;
  (B) TO ESTABLISH  AND  COORDINATE  BUSINESS  CONTINUITY  PROGRAMS  FOR
ESSENTIAL STATE FUNCTIONS AND SERVICES;
  (C)  TO IMPLEMENT RISK MANAGEMENT PROGRAMS TO MANAGE THE STATE'S EXPO-
SURE TO RISK IN THE MOST COST EFFECTIVE MANNER INCLUDING, BUT NOT LIMIT-
ED TO, PROGRAMS TO REDUCE THE LIKELIHOOD  AND  POTENTIAL  COST  OF  LOSS
EVENTS, AND THE PURCHASE OF INSURANCE OR OTHER RISK SHARING ARRANGEMENTS
WHERE APPROPRIATE; AND
  (D)  TO  COORDINATE  AND  SUPPORT  THE RISK MANAGEMENT PROGRAMS OF ALL
STATE AGENCIES.
  2. THE RISK MANAGER AND  OFFICE  SHALL  FULFILL  THEIR  FUNCTIONS  AND
DUTIES BY:
  (A)  CONDUCTING  A  STUDY  OF THE STATE'S RISK EXPOSURES ON AN ONGOING
BASIS. SUCH STUDY SHALL INCLUDE:
  (I) PRACTICES AND PROCEDURES OF ALL STATE AGENCIES,  AS  THEY  PERTAIN
TO,  IMPACT  UPON,  CAUSE  OR DETER DAMAGE OR LOSS TO: PHYSICAL PROPERTY
OWNED OR CONTROLLED BY THE STATE,  OR  PHYSICAL  INJURIES  SUSTAINED  BY
STATE EMPLOYEES, PERSONS RECEIVING SERVICES FROM THE STATE OR MEMBERS OF
THE GENERAL PUBLIC;
  (II)  THE  ACTIONS, CLAIM SETTLEMENTS, AND CLAIMS SETTLEMENT PROCESSES
RELATED TO ACTIONS IN THE COURT OF CLAIMS,  AND  IN  FEDERAL  AND  STATE
COURTS  OF  COMPETENT JURISDICTIONS AS THEY RELATE TO THE DISPOSITION OF
MATTERS AGAINST THE STATE. FURTHERMORE, FOR THE PURPOSE  OF  DETERMINING
PAST,  PRESENT  AND FUTURE EXPOSURES TO LIABILITY, THE NATURE AND MAGNI-
TUDE OF SUCH EXPOSURES, AND THE TECHNIQUES  FOR  REDUCING  THE  COST  OF
MANAGING AND SETTLING CLAIMS ARISING FROM SUCH EXPOSURES;
  (III) THE ESSENTIAL OPERATIONS AND SERVICE FUNCTIONS OF THE STATE, AND
THE  PROCEDURES  NECESSARY  TO  MAINTAIN  OR RESTORE SUCH OPERATIONS AND
FUNCTIONS TO THE REQUIRED LEVEL FOLLOWING AN EMERGENCY EVENT;
  (IV)  THE  POTENTIAL  FUTURE  LIABILITIES  ARISING  FROM  EXISTING  OR
PROPOSED STATE OPERATIONS OR FUNCTIONS;

S. 1029--A                          3

  (V)  THE  PREPARATION  OF  AN  INVENTORY OF ALL REAL PROPERTY OWNED OR
LEASED, FOR A PERIOD OF TIME OF MORE THAN FIVE YEARS, BY ALL STATE AGEN-
CIES, AND TO ASCERTAIN PAST,  PRESENT  AND  POTENTIAL  FUTURE  LIABILITY
EXPOSURES AND THE NATURE OF THOSE EXPOSURES; AND
  (VI) THE DESIGN AND IMPLEMENTATION OF APPROPRIATE COST EFFECTIVE TECH-
NIQUES  AND  PROGRAMS  TO  REDUCE  THE  COST  OF THE STATE'S EXPOSURE TO
LIABILITY AND FINANCIAL LOSS ARISING FROM ITS OPERATIONS OR  THE  OWNER-
SHIP, CONTROL OR USE OF REAL AND PERSONAL PROPERTY, INCLUDING RECOMMEND-
ING STEPS AND PROCEDURES TO BE IMPLEMENTED BY INDIVIDUAL STATE AGENCIES.
  THE  RISK  MANAGER,  IN THE PERFORMANCE OF SUCH STUDY, SHALL ENJOY THE
FULL COOPERATION AND ASSISTANCE OF  STATE  AGENCIES  AND  THE  COURT  OF
CLAIMS; AND
  (B)  RECOMMENDING AND IMPLEMENTING THE APPROPRIATE RISK MANAGEMENT AND
BUSINESS CONTINUITY PROGRAMS AS SHALL BE NECESSARY.
  3. SUCH STUDY AND RECOMMENDATIONS SHALL BE COMPLETED AND SENT  TO  THE
GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, EXECUTIVE OFFICER OF EACH STATE
AGENCY  INCLUDED  THEREIN, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF
THE ASSEMBLY, MINORITY LEADER OF THE SENATE AND MINORITY LEADER  OF  THE
ASSEMBLY  NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS
ARTICLE.  THE STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED  AS
IS PERIODICALLY DEEMED APPROPRIATE BY THE RISK MANAGER; PROVIDED, HOWEV-
ER, THAT SUCH STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED NOT
LESS THAN ONCE EVERY FIVE YEARS.
  4. THE OFFICE SHALL ADVISE THE VARIOUS STATE AGENCIES ON PROPER ENTER-
PRISE  RISK MANAGEMENT TECHNIQUES AND PROCEDURES, AND THE IMPLEMENTATION
THEREOF, FOR THE PURPOSE OF REDUCING EXPOSURES TO LIABILITY  AND  FINAN-
CIAL  LOSS,  OR  THE  DISRUPTION OF ESSENTIAL STATE OPERATIONS AND FUNC-
TIONS, AS WELL AS ALL RESPONSIBILITIES  AND  DUTIES  OF  THE  BUREAU  OF
INSURANCE  IN THE OFFICE OF GENERAL SERVICES. THOSE AGENCIES INVOLVED IN
OR RESPONSIBLE FOR THE CONSTRUCTION  OR  MAINTENANCE  OF  STRUCTURES  OR
ROADWAYS,  THE  CARE AND CUSTODY OF PERSONS MORE THAN IN TEMPORARY QUAR-
TERS, THE PROVISION OF SERVICES OF THE GENERAL PUBLIC, AND  THOSE  AGEN-
CIES WITH VEHICLES ASSIGNED FOR THEIR USE, SHALL UNDERGO DETAILED ENTER-
PRISE  RISK  MANAGEMENT ANALYSIS AND, WHEREVER PRACTICABLE AND AFTER THE
AGENCY IS GRANTED AN OPPORTUNITY TO REVIEW AND APPEAL THE  FINDINGS  AND
RECOMMENDATIONS  OF  SUCH ANALYSIS, IMPLEMENT THE RECOMMENDATIONS OF THE
RISK MANAGER WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE THAT SUCH RECOM-
MENDATIONS ARE AGREED TO BY THE EXECUTIVE OFFICER OF SUCH AGENCY.
  5. THE RISK MANAGER SHALL FILE AN ANNUAL REPORT ON THE  ACTIVITIES  OF
THE  OFFICE  WITH THE GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, THE  MINORITY  LEADERS
OF  THE  SENATE AND ASSEMBLY, SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS
AND MEANS COMMITTEE, NO LATER THAN ONE HUNDRED  EIGHTY  DAYS  AFTER  THE
COMPLETION OF THE CALENDAR YEAR TO WHICH THE REPORT REFERS.
  6.  ANY  PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY OR LOCAL GOVERN-
MENT MAY CONTRACT FOR THE SERVICES OF THE RISK MANAGER AND THE OFFICE IN
THE EVENT THAT SUCH PUBLIC  BENEFIT  CORPORATION,  PUBLIC  AUTHORITY  OR
LOCAL GOVERNMENT IS WITHOUT INTERNAL RISK ASSESSMENT AND ENTERPRISE RISK
MANAGEMENT SERVICES, OR WISHES TO SUPPLEMENT SUCH INTERNAL SERVICES WITH
THE SERVICES PROVIDED BY THE RISK MANAGER AND THE OFFICE.
  7.  THE  RISK  MANAGER MAY REVIEW, STUDY AND ENTER INTO A RELATIONSHIP
WITH: (A) OUTSIDE VENDORS OR CONSULTANTS WITH EXPERTISE IN RISK  MANAGE-
MENT,  CLAIMS MANAGEMENT OR SAFETY MANAGEMENT, AND (B) CAPTIVE INSURANCE
COMPANIES, AS DEFINED IN SUBSECTION (C) OF SECTION SEVEN THOUSAND TWO OF
THE INSURANCE LAW, OR OTHER RISK SHARING  ENTITIES  TO  REDUCE  PERSONAL
INJURY  OR  PROPERTY  DAMAGE LIABILITY CLAIMS AND PAYMENTS, EITHER ON AN

S. 1029--A                          4

ANNUAL BASIS OR OVER A LONGER PERIOD OF TIME, FOR ALL STATE AGENCIES, OR
AN INDIVIDUAL STATE AGENCY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY
OR LOCAL GOVERNMENT.
  S  207.    BOARD OF RISK ASSESSMENT AND MANAGEMENT. 1. THERE IS HEREBY
ESTABLISHED, WITHIN THE OFFICE, A STATE BOARD  OF  RISK  ASSESSMENT  AND
MANAGEMENT.  THE BOARD, TO BE COMPRISED OF THE RISK MANAGER, THE COMMIS-
SIONER OF GENERAL SERVICES, THE CHAIR OF THE STATE INSURANCE  FUND,  THE
PRESIDENT  OF  THE  STATE  CIVIL SERVICE COMMISSION, THE DIRECTOR OF THE
OFFICE OF EMPLOYEE RELATIONS, THE DIRECTOR OF THE DIVISION OF THE  BUDG-
ET,  AND  A  REPRESENTATIVE OF EACH OF THE PUBLIC EMPLOYEE ORGANIZATIONS
WITH THE THREE LARGEST MEMBERSHIPS. SUCH BOARD SHALL MEET QUARTERLY  FOR
THE  PURPOSE  OF EXAMINING CURRENT METHODS OF ENTERPRISE RISK MANAGEMENT
AND CONTROL DEPLOYED BY THE STATE, AND REVIEW INSTANCES OF DIFFICULTY IN
DEPLOYING SOUND RISK ASSESSMENT AND ENTERPRISE  RISK  MANAGEMENT  PROCE-
DURES.
  2. A SUMMARY OF THE PROCEEDINGS OF THE BOARD, WITH RECOMMENDATIONS FOR
IMPROVEMENT  OF  THE  STATE'S  RISK MANAGEMENT PRACTICES AND PROCEDURES,
SHALL BE INCLUDED IN THE ANNUAL REPORT OF THE  RISK  MANAGER.  THE  RISK
MANAGER  SHALL  TAKE INTO CONSIDERATION THE RECOMMENDATIONS PERIODICALLY
MADE BY THE BOARD IN CONDUCTING HIS OR HER MANAGEMENT AND  ABATEMENT  OF
POTENTIAL LIABILITY ACTIVITIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary  for  the  timely  implementation of this act on its effective date
shall be promulgated on or before such date.

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Senate Bill S1029A

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Finance Committee

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co-Sponsors

Joseph P. Addabbo Jr.

2011-S1029 - Details

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co-Sponsors

Joseph P. Addabbo Jr.

David Carlucci

Diane J. Savino

David J. Valesky

2011-S1029A (ACTIVE) - Details

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