NY State Senate Bill 2015-S6876

Archive: Last Bill Status Via A9412 - Signed by Governor

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
Nov 04, 2016	signed chap.414
Oct 26, 2016	delivered to governor
Jun 16, 2016	returned to assembly passed senate 3rd reading cal.1938 substituted for s6876
Jun 16, 2016	substituted by a9412 ordered to third reading cal.1938 committee discharged and committed to rules
Mar 02, 2016	referred to local government

Votes

- Jun 16, 2016 - Floor Vote
  A9412
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 16, 2016
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (1)
      
      Diaz
  Jun 16, 2016 - Rules Committee Vote
  S6876
  
  25
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 16, 2016
      
      aye (25)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Robach
      
      Seward
      
      Stewart-Cousins
      
      Valesky

2015-S6876 (ACTIVE) - Details

See Assembly Version of this Bill:: A9412
Law Section:: General Municipal Law
Laws Affected:: Amd §6-n, Gen Muni L; add §3653, Ed L

2015-S6876 (ACTIVE) - Summary

Grants the Scarsdale union free school district and Vernon Verona Sherrill central school district the authority to establish insurance reserve funds.

2015-S6876 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6876

 TITLE OF BILL :  An act to amend the general municipal law and the
education law, in relation to insurance reserve funds of certain
school districts

 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 in the case of the Vernon Verona
Sherill 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 insurance is authorized pursuant to paragraph
three of subsection (a) of section one thousand one hundred thirteen
of the insurance law.

Section 2. The education law is amended by adding a new section 3653.

 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 Vernon Verona Sherrill 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 :

None.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S6876 (ACTIVE) - Bill Text download pdf

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

                                  6876

                            I N  S E N A T E

                              March 2, 2016
                               ___________

Introduced  by  Sen.  GRIFFO -- 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  and  the  education  law,  in
  relation to insurance reserve funds of certain school districts

  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 433 of  the  laws  of  2014,  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 THE VERNON VERONA
SHERRILL CENTRAL SCHOOL DISTRICT MAY ESTABLISH INSURANCE  RESERVE  FUNDS
IN  COMPLIANCE  WITH THIS SECTION AND ARTICLE SEVENTY-FOUR OF THE EDUCA-
TION LAW and such school [district] DISTRICTS may make  expenditures  IN
COMPLIANCE  WITH  THIS SECTION AND ARTICLE SEVENTY-FOUR OF THE EDUCATION
LAW from such reserve fund for any loss, claim, action or  judgment  for
which  the  school [district is] DISTRICTS ARE 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14421-01-6

S. 6876                             2

  S 2. The education law is amended by adding a new section 3653 to read
as follows:
  S 3653. INSURANCE RESERVE FUNDS. IN ADDITION TO THE PROVISIONS OF THIS
ARTICLE  AND TO THE PROVISIONS OF SECTION SIX-N OF THE GENERAL MUNICIPAL
LAW, ANY SCHOOL DISTRICT THAT ESTABLISHES  AND  MAINTAINS  AN  INSURANCE
RESERVE  FUND  TO 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  INSURANCE IS AUTHORIZED PURSUANT TO PARAGRAPH THREE OF SUBSECTION
(A) OF SECTION ELEVEN HUNDRED THIRTEEN OF THE INSURANCE LAW, PURSUANT TO
SECTION SIX-N OF THE GENERAL MUNICIPAL LAW OR ANY OTHER CHAPTER OF  LAW,
SHALL  MAKE  ALL  RESERVE FUND TRANSACTIONS TRANSPARENT TO THE PUBLIC BY
ADOPTING A WRITTEN INSURANCE RESERVE FUND POLICY, TO BE  POSTED  ON  THE
SCHOOL  DISTRICT'S  WEBSITE,  THAT  INCLUDES: THE PURPOSE OF THE RESERVE
FUND, THE OPTIMAL AMOUNT OF FUNDING OF THE RESERVE  FUND,  ITS  INTENDED
DURATION, THE CONDITIONS UNDER WHICH RESERVE FUND ASSETS WILL BE USED OR
REPLENISHED, A PERIODIC ANALYSIS BY THE SCHOOL BOARD OF THE RESERVE FUND
BALANCES  TO  DETERMINE  IF  RESERVES  ARE AT REASONABLE AND APPROPRIATE
LEVELS, HOW THE  SCHOOL  AUTHORITIES  SHOULD  REDUCE  RESERVE  FUNDS  TO
REASONABLE  LEVELS  WHEN CONDITIONS WARRANT, HOW SCHOOL AUTHORITIES WILL
DISCONTINUE THE RESERVE FUND IF NO  LONGER  NEEDED  AND  ANY  ADDITIONAL
POLICIES THAT THE SCHOOL AUTHORITIES DEEM APPROPRIATE.
  S 3. This act shall take effect immediately.

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Senate Bill S6876

Sponsored By

Archive: Last Bill Status Via A9412 - Signed by Governor

Jun 16, 2016 - Floor Vote

Floor Vote: Jun 16, 2016

Jun 16, 2016 - Rules Committee Vote

Rules Committee Vote: Jun 16, 2016

2015-S6876 (ACTIVE) - Details

2015-S6876 (ACTIVE) - Summary

2015-S6876 (ACTIVE) - Sponsor Memo

2015-S6876 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6876

Share this bill

Sponsored By

Joseph A. Griffo

Archive: Last Bill Status Via A9412 - Signed by Governor

2015-S6876 (ACTIVE) - Details

2015-S6876 (ACTIVE) - Summary

2015-S6876 (ACTIVE) - Sponsor Memo

2015-S6876 (ACTIVE) - Bill Text download pdf

Comments