Senate Bill S5979

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

                                  5979

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 15, 2015
                               ___________

Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the workers' compensation law, in relation to an interim
  assessment on members of a defaulted group self-insurer

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

  Section  1.    Subparagraph  (b)  of paragraph 7 of subdivision 3-a of
section 50 of the workers' compensation law, as amended by section 4  of
part R of chapter 56 of the laws of 2010, is amended to read as follows:
  (b)  The  chair  shall  levy an INTERIM assessment on the members of a
defaulted group self-insurer within one  hundred  twenty  days  of  such
default or of the effective date of the chapter of the laws of two thou-
sand  eight  which  amended  this  subdivision,  whichever is later, and
against the members of any  other  terminated  group  self-insurer  when
necessary, for such an amount as he or she determines to be necessary to
discharge  all  liabilities  of  the  group  self-insurer, including the
reasonable cost of liquidation  such  as  claims  administration  costs,
actuarial  and  accounting services, and the value of future assessments
on members of such group self-insurer AS THEY ARE KNOWN AT THE  TIME  OF
THE  ASSESSMENT.    The  chair may impose subsequent AND FURTHER deficit
assessments, or return funds to members, to adjust the moneys  collected
to  reflect the time of participation, and percent of group self-insurer
liabilities for such time.  THE TIME LIMITATIONS INCLUDED IN  THE  FIRST
SENTENCE  OF  THIS  SUBPARAGRAPH  DO  NOT APPLY TO THE IMPOSITION OF ANY
SUBSEQUENT AND FURTHER  DEFICIT  ASSESSMENTS  THAT  EXCEED  THE  INTERIM
ASSESSMENT MADE BY THE CHAIR AGAINST MEMBERS OF A DEFAULTED GROUP INSUR-
ER  OR MEMBERS OF ANY OTHER TERMINATED GROUP SELF-INSURER. Notwithstand-
ing any such action by the chair, each member of the group  self-insurer
shall  remain  jointly  and  severally  responsible  for all liabilities
provided by this chapter including but not limited  to  outstanding  and
estimated  future  liabilities  and  assessments.  Further, separate and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11635-02-5
              

S. 5979                             2

apart from, and in addition to a member's joint  and  several  liability
and  notwithstanding any payments made by any other members of the group
self-insurer pursuant to this subparagraph, in the event that  a  member
neglects  or fails to pay an assessment levied pursuant to this subpara-
graph, the member shall be deemed in default in the payment  of  compen-
sation.  Such defaulting member is subject to the enforcement provisions
of section twenty-six of this chapter for the  payment  of  all  compen-
sation relative to awards due and owing on claims filed by the employees
of  such  member  that have neither been paid by the member or the group
self-insurer. Nothing in this paragraph shall  prevent  the  chair  from
offering  payment  plans or settling claims against members of any group
self-insurer as necessary to facilitate collection.
  S 2. This act shall take effect immediately.