NY State Senate Bill 2011-S7528

Archive: Last Bill Status - In Senate Committee Local Government 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 31, 2012	referred to local government

co-Sponsors

2011-S7528 (ACTIVE) - Details

See Assembly Version of this Bill:: A10414
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §6-n, Gen Muni L
Versions Introduced in 2013-2014 Legislative Session:: A2327

2011-S7528 (ACTIVE) - Summary

Relates to limitations on expenditures from the insurance reserve fund and narrows the exclusions.

2011-S7528 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7528

TITLE OF BILL:
An act
to amend the general municipal law, in relation to limitations on
expenditures from the insurance reserve fund

SUMMARY OF PROVISIONS:
This bill would strike out the current
reference to paragraph three of subsection (a) of section one
thousand one hundred thirteen of the insurance law, currently
contained in section 6-n(2) (a) of the general municipal law.

JUSTIFICATION:
The law currently authorizes municipal corporations to
purchase a health insurance plan or to self-insure to provide health
insurance for their officers and employees, and retired officers and
employees. Further, section 6-n of the general municipal law
authorizes municipal corporations to establish and make expenditures
from an insurance reserve fund for any loss, claim, action or
judgment for which the municipal corporation is authorized or
required to purchase or maintain insurance.
However, section 6-n exempts certain kinds of risks enumerated in the
insurance law, including accident and health insurance, from the
types of risks for which the municipality may make such expenditures.
In this way, section 6-n of the general municipal law prohibits

municipal corporations from making expenditures from insurance
reserve funds in relation to self-funded health insurance programs.

However, there is an anomaly in the law because section 4706 of the
insurance law recognizes the stabilizing benefits of maintaining a
reserve fund by requiring such a fund where three or more municipal
corporations join together to form a municipal cooperative health
benefit plan. This legislation recognizes that the same rationale
makes a health insurance reserve fund beneficial in the context of a
single municipal corporation that self-insures.

By deleting the reference to health insurance from the list of
exemptions in 6-n, this legislation extends to municipal corporations
and taxpayers the significant stabilizing benefits of maintaining a
reserve fund, and avoids the financial burden that would result when
a municipal corporation wishing to self-insure could not do so
because of the large year-to-year variations in claims against a
self-funded health insurance program.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately upon becoming law.

2011-S7528 (ACTIVE) - Bill Text download pdf

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

                                  7528

                            I N  S E N A T E

                              May 31, 2012
                               ___________

Introduced  by  Sens.  MARTINS,  OPPENHEIMER  --  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 limitations on
  expenditures from the insurance reserve fund

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

  Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
al municipal law, as amended by chapter 350 of  the  laws  of  1988,  is
amended to read as follows:
  (a)  The  governing board of any municipal corporation may establish a
reserve fund to be  known  as  the  insurance  reserve  fund.  Upon  the
creation  of  the  fund, the municipality may make expenditures from the
fund for any loss, claim, action or judgment  for  which  the  municipal
corporation is authorized or required to purchase or maintain insurance,
except  those  kinds of risks for which insurance is authorized pursuant
to paragraph one, two, [three,] fifteen, sixteen,  seventeen,  eighteen,
twenty-two or twenty-three of subsection (a) of section one thousand one
hundred  thirteen  of  the  insurance  law,  or  for payments in lieu of
contributions under article eighteen of the labor law; provided however,
that no municipality shall make an expenditure from such  fund  for  any
loss,  claim, action or judgment for which the municipal corporation has
established a reserve fund under any other provision of law.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15811-01-2

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Senate Bill S7528

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

co-Sponsors

2011-S7528 (ACTIVE) - Details

2011-S7528 (ACTIVE) - Summary

2011-S7528 (ACTIVE) - Sponsor Memo

2011-S7528 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7528

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Sponsored By

Jack M. Martins

Archive: Last Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Suzi Oppenheimer

2011-S7528 (ACTIVE) - Details

2011-S7528 (ACTIVE) - Summary

2011-S7528 (ACTIVE) - Sponsor Memo

2011-S7528 (ACTIVE) - Bill Text download pdf

Comments