S T A T E   O F   N E W   Y O R K
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                                  6164

                            I N  S E N A T E

                             January 9, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, in  relation  to  authorizing
  boards  of  cooperative  educational  services  to  establish workers'
  compensation reserve funds

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

  Section  1.  The  section  heading  and  subdivisions 1, 3, 4 and 6 of
section 6-j of the general municipal law, the section heading as amended
by chapter 704 of the laws of 1956, subdivisions 1, 4 and 6  as  amended
by  chapter 340 of the laws of 1973, subdivision 3 as amended by chapter
140 of the laws of 1996 and subdivision 6 as renumbered by  chapter  433
of the laws of 1987, are amended to read as follows:
  [Workmen's] WORKERS' compensation reserve fund. 1. The governing board
of  any  municipal  corporation,  school  district, BOARD OF COOPERATIVE
EDUCATIONAL SERVICES or fire district, which is,  or  shall  [hereafter]
become  a  self-insurer  under  the  provisions  of  SUBDIVISION FOUR OF
section fifty[, subdivision four] of the  [workmen's]  WORKERS'  compen-
sation  law or section thirty of the volunteer [firemen's] FIREFIGHTERS'
benefit law may establish a reserve fund to be known as the  [workmen's]
WORKERS' compensation reserve fund of such municipal corporation, school
district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES or fire district.
  3.  The  moneys  in  such  fund  shall be deposited and secured in the
manner provided by section ten of this article.  The money in such  fund
so  deposited  shall  be accounted for separate and apart from all other
funds of the municipality, school district, BOARD OF COOPERATIVE  EDUCA-
TIONAL  SERVICES  or  fire  district,  in the same manner as provided in
subdivision ten of section six-c of this article.  The governing  board,
or the chief fiscal officer of such municipality, school district, BOARD
OF  COOPERATIVE  EDUCATIONAL SERVICES or fire district, if the governing
board shall delegate such duty to him OR HER, may invest the  moneys  in
such  fund in the manner provided in section eleven of this article. Any
interest earned or capital gain realized on the money  so  deposited  or
invested  shall  accrue  to  and  become part of such fund. The separate

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

                                                           LBD13706-01-2

S. 6164                             2

identity of such fund shall be maintained whether its assets consist  of
cash or investments or both.
  4. An expenditure shall be made from such fund only for the payment of
compensation and benefits, medical, hospital or other expense authorized
by  article  two of the [workmen's] WORKERS' compensation law and by the
volunteer [firemen's] FIREFIGHTERS' benefit law and expenses of adminis-
tering the self-insurance program for such municipal corporation, school
district, BOARD OF COOPERATIVE EDUCATIONAL SERVICES or fire district.
  6. If the municipal corporation, school district, BOARD OF COOPERATIVE
EDUCATIONAL SERVICES or fire district shall, after the establishment  of
such fund, cease to be a self-insurer, the moneys remaining in such fund
may  be  transferred  to  any  other  fund authorized by this chapter or
section thirty-six hundred fifty-one of the education law  only  to  the
extent  that  the  moneys  in  such  fund shall exceed in amount the sum
sufficient to pay all expenditures authorized  in  [paragraph  numbered]
SUBDIVISION four OF THIS SECTION, both accrued and contingent.
  S 2. This act shall take effect immediately.