S T A T E O F N E W Y O R K
________________________________________________________________________
8128
2015-2016 Regular Sessions
I N A S S E M B L Y
June 9, 2015
___________
Introduced by M. of A. OTIS -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law, in relation to the
investment of surplus funds of the state insurance fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 87 of the workers' compensation
law, as added by section 20 of part GG of chapter 57 of the laws of
2013, is amended to read as follows:
2. Any of the surplus funds belonging to the state insurance fund, by
order of the commissioners, approved by the superintendent of financial
services, may be invested (1) in the types of securities described in
subdivisions one, two, three, four, five, six, eleven, twelve, twelve-a,
thirteen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a,
twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
of section two hundred thirty-five of the banking law, OR (2) IN THE
TYPES OF OBLIGATIONS DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (A) OF
SECTION ONE THOUSAND FOUR HUNDRED FOUR OF THE INSURANCE LAW EXCEPT THAT
UP TO TWENTY-FIVE PERCENT OF SURPLUS FUNDS MAY BE INVESTED IN OBLI-
GATIONS RATED INVESTMENT GRADE BY A NATIONALLY RECOGNIZED SECURITIES
RATING ORGANIZATION, or[,] (3) up to fifty percent of surplus funds, in
the types of securities or investments described in paragraphs [two,]
three, eight and ten of subsection (a) of section one thousand four
hundred four of the insurance law, except that [up to ten percent of
surplus funds may be invested] SUCH INVESTMENTS in [the] EQUITY securi-
ties of any solvent American institution [as described in such para-
graphs] MAY BE MADE irrespective of the rating of such institution's
obligations or other similar qualitative standards [described therein,
and] APPLICABLE UNDER SUCH PARAGRAPHS, OR (4) UP TO TEN PERCENT OF
SURPLUS FUNDS, IN THE TYPES OF SECURITIES OR INVESTMENTS DESCRIBED IN
PARAGRAPHS TWO, THREE AND TEN OF SUBSECTION (A) OF SECTION ONE THOUSAND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11531-02-5
A. 8128 2
FOUR HUNDRED FOUR OF THE INSURANCE LAW IRRESPECTIVE OF THE RATING OF
SUCH INSTITUTION'S OBLIGATIONS OR OTHER SIMILAR QUALITATIVE STANDARDS,
OR (5) up to fifteen percent of surplus funds, in securities or invest-
ments which do not otherwise qualify for investment under this section
as shall be made with the care, prudence and diligence under the circum-
stances then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise
of a like character and with like aims as provided for the state insur-
ance fund under this article, but shall not include any direct deriva-
tive instrument or derivative transaction except for hedging purposes.
Notwithstanding any other provision in this subdivision, the aggregate
amount that the state insurance fund may invest in the types of securi-
ties or investments described in paragraphs three, eight and ten of
subsection (a) of section one thousand four hundred four of the insur-
ance law and as a prudent person acting in a like capacity would invest
as provided in this subdivision shall not exceed fifty percent of such
surplus funds. FOR PURPOSES OF THIS SUBDIVISION, ANY FUNDS APPROPRIATED
PURSUANT TO THE PROVISIONS OF SUBDIVISION ONE OR TWO OF SECTION EIGHTY-
SEVEN-F OF THIS ARTICLE SHALL NOT BE CONSIDERED SURPLUS FUNDS.
S 2. This act shall take effect immediately.