senate Bill S7322

Signed By Governor
2013-2014 Legislative Session

Relates to expenditures from the insurance reserve fund established by the Scarsdale union free school district

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A2327 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

do you support this bill?

Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 21, 2014 signed chap.433
Nov 10, 2014 delivered to governor
Jun 20, 2014 returned to assembly
passed senate
3rd reading cal.1169
substituted for s7322
Jun 20, 2014 substituted by a2327a
Jun 10, 2014 advanced to third reading
Jun 09, 2014 2nd report cal.
Jun 03, 2014 1st report cal.1169
May 12, 2014 referred to local government

Votes

view votes

S7322 - Bill Details

See Assembly Version of this Bill:
A2327A
Law Section:
General Municipal Law
Laws Affected:
Amd ยง6-n, Gen Muni L
Versions Introduced in 2011-2012 Legislative Session:
A10414

S7322 - Bill Texts

view summary

Relates to expenditures from the insurance reserve fund established by the Scarsdale union free school district.

view sponsor memo
BILL NUMBER:S7322 REVISED 5/13/14

TITLE OF BILL: An act to amend the general municipal law, in relation
to authorizing the establishment of an insurance reserve fund by the
Scarsdale union free school district and detailing what expenditures
may be made from such fund

PURPOSE OR GENERAL IDEA OF THE BILL: To allow the Scarsdale union
free school district to maintain a separate health insurance reserve
fund and make expenditures from the health insurance fund to support
its self-funded health insurance program

SUMMARY OF PROVISIONS:

Section 1. This section amends paragraph (a) of subdivision 2 of
section 6-n of the general municipal law, as amended by chapter 350 of
the laws of 1988, to provide that the Scarsdale union free school
district may make expenditures from an insurance reserve fund for any
loss, claim, action or judgment for which the school district is
authorized or required to purchase or maintain insurance for the kinds
of risks for which insurance is authorized pursuant to paragraph three
of subsection (a) of section one thousand one hundred thirteen of the
insurance law.

Section 2. Provides the effective date.

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, in the particular case
of the Scarsdale union free school district.

The bill allows the school district to maintain such a reserve fund
and make expenditures from such reserve fund for any loss, claim,
action or judgment for which such school district is authorized or
required to purchase or maintain insurance. In so doing, the school
district and its taxpayers may obtain the significant stabilizing
benefits of maintaining a reserve fund, and avoid the financial burden
that would result when a municipal corporation or school district


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: Similar to S.7528, 2012 referred to local
government. Similar to A.10414, 2012 passed Assembly.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7322

                            I N  S E N A T E

                              May 12, 2014
                               ___________

Introduced  by  Sen.  STEWART-COUSINS -- 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
  the  establishment of an insurance reserve fund by the Scarsdale union
  free school district and detailing what expenditures may be made  from
  such 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;  PROVIDED,
FURTHER THAT IN THE CASE OF THE SCARSDALE UNION FREE SCHOOL DISTRICT, AN
INSURANCE  RESERVE  FUND MAY BE ESTABLISHED AND SUCH SCHOOL DISTRICT MAY
MAKE EXPENDITURES FROM SUCH RESERVE FUND FOR ANY LOSS, CLAIM, ACTION  OR
JUDGMENT  FOR  WHICH  THE  SCHOOL  DISTRICT IS AUTHORIZED OR REQUIRED TO
PURCHASE OR MAINTAIN INSURANCE FOR THE KINDS OF RISKS FOR  WHICH  INSUR-
ANCE  IS  AUTHORIZED  PURSUANT  TO  PARAGRAPH THREE OF SUBSECTION (A) OF
SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE 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.
                                                           LBD03209-04-4

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.