S T A T E O F N E W Y O R K
________________________________________________________________________
7416
2017-2018 Regular Sessions
I N A S S E M B L Y
April 25, 2017
___________
Introduced by M. of A. TITONE, MORELLE, LUPARDO, JAFFEE -- Multi-Spon-
sored by -- M. of A. BRAUNSTEIN, COLTON -- read once and referred to
the Committee on Governmental Operations
AN ACT to amend the executive law, in relation to establishing the
office of risk assessment and management
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new article 10-A
to read as follows:
ARTICLE 10-A
OFFICE OF RISK ASSESSMENT AND MANAGEMENT
SECTION 204. DEFINITIONS.
205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
RISK MANAGER.
206. FUNCTIONS AND DUTIES OF THE OFFICE.
207. BOARD OF RISK ASSESSMENT AND MANAGEMENT.
§ 204. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. "ENTERPRISE RISK MANAGEMENT" SHALL MEAN A STRATEGIC DISCIPLINE THAT
SUPPORTS THE ACHIEVEMENT OF THE STATE'S OBJECTIVES BY ADDRESSING THE
FULL SPECTRUM OF ITS RISKS AND MANAGES THE COMBINED IMPACT OF THOSE
RISKS AS AN INTERRELATED RISK PORTFOLIO.
2. "LOCAL GOVERNMENT" SHALL MEAN ANY COUNTY, CITY, TOWN, VILLAGE,
SUPERVISORY DISTRICT, SCHOOL DISTRICT, FIRE DISTRICT, IMPROVEMENT
DISTRICT OR SPECIAL DISTRICT.
3. "OFFICE" SHALL MEAN THE OFFICE OF RISK ASSESSMENT AND MANAGEMENT
ESTABLISHED PURSUANT TO SECTION TWO HUNDRED FIVE OF THIS ARTICLE.
4. "RISK MANAGER" SHALL MEAN THE RISK MANAGER OF THE OFFICE.
5. "STATE AGENCY" SHALL MEAN ANY DEPARTMENT, DIVISION, BOARD, COMMIS-
SION, BUREAU, OFFICE OR OTHER AGENCY OF THE STATE.
§ 205. OFFICE OF RISK ASSESSMENT AND MANAGEMENT; QUALIFICATIONS OF
RISK MANAGER. 1. THERE SHALL BE ESTABLISHED WITHIN THE OFFICE OF GENERAL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11029-01-7
A. 7416 2
SERVICES, AN OFFICE OF RISK ASSESSMENT AND MANAGEMENT. THERE SHALL BE
APPOINTED BY THE COMMISSIONER OF GENERAL SERVICES THE RISK MANAGER OF
THE OFFICE, WHO SHALL BE CHARGED WITH THE DUTY OF ADMINISTERING THE
OFFICE. THE COMMISSIONER OF GENERAL SERVICES SHALL FIX COMPENSATION OF
THE RISK MANAGER WITHIN THE AMOUNTS APPROPRIATED THEREFOR.
2. THE RISK MANAGER SHALL HAVE THE FOLLOWING QUALIFICATIONS:
(A) AN UNDERSTANDING OF AND THE ABILITY TO APPLY THE GENERALLY
ACCEPTED PRINCIPLES, STANDARDS AND TECHNIQUES UTILIZED FOR THE IDENTIFI-
CATION, ASSESSMENT AND MANAGEMENT OF ENTERPRISE RISK; AND
(B) SUFFICIENT EXPERIENCE IN IDENTIFYING, ASSESSING AND MANAGING
ENTERPRISE RISK EXPOSURES THAT PRESENT THE BREADTH AND LEVEL OF COMPLEX-
ITY OF ISSUES THAT CAN REASONABLY BE EXPECTED TO BE RAISED DURING THE
COURSE OF STATE OPERATIONS.
3. EVERY RISK MANAGER SHALL HAVE ACQUIRED HIS OR HER QUALIFICATIONS,
AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION, THROUGH APPROPRIATE
EDUCATION AND RELEVANT RISK MANAGEMENT EXPERIENCE ON BEHALF OF A COMMER-
CIAL OR GOVERNMENTAL ORGANIZATION.
§ 206. FUNCTIONS AND DUTIES OF THE OFFICE. 1. THE FUNCTION OF THE
OFFICE SHALL BE:
(A) TO DETERMINE THE POTENTIAL EXPOSURE OF THE STATE TO LIABILITY AND
FINANCIAL LOSS ARISING FROM ITS ACTS AND OMISSIONS, FROM THE OWNERSHIP,
CONTROL OR USE OF ITS REAL AND PERSONAL PROPERTY, OR CONDUCT OR ACTIONS
OF ITS EMPLOYEES OR AGENTS;
(B) TO ESTABLISH AND COORDINATE BUSINESS CONTINUITY PROGRAMS FOR
ESSENTIAL STATE FUNCTIONS AND SERVICES;
(C) TO IMPLEMENT RISK MANAGEMENT PROGRAMS TO MANAGE THE STATE'S EXPO-
SURE TO RISK IN THE MOST COST EFFECTIVE MANNER INCLUDING, BUT NOT LIMIT-
ED TO, PROGRAMS TO REDUCE THE LIKELIHOOD AND POTENTIAL COST OF LOSS
EVENTS, AND THE PURCHASE OF INSURANCE OR OTHER RISK SHARING ARRANGEMENTS
WHERE APPROPRIATE; AND
(D) TO COORDINATE AND SUPPORT THE RISK MANAGEMENT PROGRAMS OF ALL
STATE AGENCIES.
2. THE RISK MANAGER AND OFFICE SHALL FULFILL THEIR FUNCTIONS AND
DUTIES BY:
(A) CONDUCTING A STUDY OF THE STATE'S RISK EXPOSURES ON AN ONGOING
BASIS. SUCH STUDY SHALL INCLUDE:
(I) PRACTICES AND PROCEDURES OF ALL STATE AGENCIES, AS THEY PERTAIN
TO, IMPACT UPON, CAUSE OR DETER DAMAGE OR LOSS TO: PHYSICAL PROPERTY
OWNED OR CONTROLLED BY THE STATE, OR PHYSICAL INJURIES SUSTAINED BY
STATE EMPLOYEES, PERSONS RECEIVING SERVICES FROM THE STATE OR MEMBERS OF
THE GENERAL PUBLIC;
(II) THE ACTIONS, CLAIM SETTLEMENTS, AND CLAIMS SETTLEMENT PROCESSES
RELATED TO ACTIONS IN THE COURT OF CLAIMS, AND IN FEDERAL AND STATE
COURTS OF COMPETENT JURISDICTIONS AS THEY RELATE TO THE DISPOSITION OF
MATTERS AGAINST THE STATE. FURTHERMORE, FOR THE PURPOSE OF DETERMINING
PAST, PRESENT AND FUTURE EXPOSURES TO LIABILITY, THE NATURE AND MAGNI-
TUDE OF SUCH EXPOSURES, AND THE TECHNIQUES FOR REDUCING THE COST OF
MANAGING AND SETTLING CLAIMS ARISING FROM SUCH EXPOSURES;
(III) THE ESSENTIAL OPERATIONS AND SERVICE FUNCTIONS OF THE STATE, AND
THE PROCEDURES NECESSARY TO MAINTAIN OR RESTORE SUCH OPERATIONS AND
FUNCTIONS TO THE REQUIRED LEVEL FOLLOWING AN EMERGENCY EVENT;
(IV) THE POTENTIAL FUTURE LIABILITIES ARISING FROM EXISTING OR
PROPOSED STATE OPERATIONS OR FUNCTIONS;
(V) THE PREPARATION OF AN INVENTORY OF ALL REAL PROPERTY OWNED OR
LEASED, FOR A PERIOD OF TIME OF MORE THAN FIVE YEARS, BY ALL STATE AGEN-
A. 7416 3
CIES, AND TO ASCERTAIN PAST, PRESENT AND POTENTIAL FUTURE LIABILITY
EXPOSURES AND THE NATURE OF THOSE EXPOSURES; AND
(VI) THE DESIGN AND IMPLEMENTATION OF APPROPRIATE COST EFFECTIVE TECH-
NIQUES AND PROGRAMS TO REDUCE THE COST OF THE STATE'S EXPOSURE TO
LIABILITY AND FINANCIAL LOSS ARISING FROM ITS OPERATIONS OR THE OWNER-
SHIP, CONTROL OR USE OF REAL AND PERSONAL PROPERTY, INCLUDING RECOMMEND-
ING STEPS AND PROCEDURES TO BE IMPLEMENTED BY INDIVIDUAL STATE AGENCIES.
THE RISK MANAGER, IN THE PERFORMANCE OF SUCH STUDY, SHALL ENJOY THE
FULL COOPERATION AND ASSISTANCE OF STATE AGENCIES AND THE COURT OF
CLAIMS; AND
(B) RECOMMENDING AND IMPLEMENTING THE APPROPRIATE RISK MANAGEMENT AND
BUSINESS CONTINUITY PROGRAMS AS SHALL BE NECESSARY.
3. SUCH STUDY AND RECOMMENDATIONS SHALL BE COMPLETED AND SENT TO THE
GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, EXECUTIVE OFFICER OF EACH STATE
AGENCY INCLUDED THEREIN, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF
THE ASSEMBLY, MINORITY LEADER OF THE SENATE AND MINORITY LEADER OF THE
ASSEMBLY NO LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS
ARTICLE. THE STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED AS
IS PERIODICALLY DEEMED APPROPRIATE BY THE RISK MANAGER; PROVIDED, HOWEV-
ER, THAT SUCH STUDY AND RECOMMENDATIONS SHALL BE REVISED AND UPDATED NOT
LESS THAN ONCE EVERY FIVE YEARS.
4. THE OFFICE SHALL ADVISE THE VARIOUS STATE AGENCIES ON PROPER ENTER-
PRISE RISK MANAGEMENT TECHNIQUES AND PROCEDURES, AND THE IMPLEMENTATION
THEREOF, FOR THE PURPOSE OF REDUCING EXPOSURES TO LIABILITY AND FINAN-
CIAL LOSS, OR THE DISRUPTION OF ESSENTIAL STATE OPERATIONS AND FUNC-
TIONS, AS WELL AS ALL RESPONSIBILITIES AND DUTIES OF THE BUREAU OF
INSURANCE IN THE OFFICE OF GENERAL SERVICES. THOSE AGENCIES INVOLVED IN
OR RESPONSIBLE FOR THE CONSTRUCTION OR MAINTENANCE OF STRUCTURES OR
ROADWAYS, THE CARE AND CUSTODY OF PERSONS MORE THAN IN TEMPORARY QUAR-
TERS, THE PROVISION OF SERVICES OF THE GENERAL PUBLIC, AND THOSE AGEN-
CIES WITH VEHICLES ASSIGNED FOR THEIR USE, SHALL UNDERGO DETAILED ENTER-
PRISE RISK MANAGEMENT ANALYSIS AND, WHEREVER PRACTICABLE AND AFTER THE
AGENCY IS GRANTED AN OPPORTUNITY TO REVIEW AND APPEAL THE FINDINGS AND
RECOMMENDATIONS OF SUCH ANALYSIS, IMPLEMENT THE RECOMMENDATIONS OF THE
RISK MANAGER WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE THAT SUCH RECOM-
MENDATIONS ARE AGREED TO BY THE EXECUTIVE OFFICER OF SUCH AGENCY.
5. THE RISK MANAGER SHALL FILE AN ANNUAL REPORT ON THE ACTIVITIES OF
THE OFFICE WITH THE GOVERNOR, COMPTROLLER, ATTORNEY GENERAL, TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY, SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS
AND MEANS COMMITTEE, NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
COMPLETION OF THE CALENDAR YEAR TO WHICH THE REPORT REFERS.
6. ANY PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY OR LOCAL GOVERN-
MENT MAY CONTRACT FOR THE SERVICES OF THE RISK MANAGER AND THE OFFICE IN
THE EVENT THAT SUCH PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY OR
LOCAL GOVERNMENT IS WITHOUT INTERNAL RISK ASSESSMENT AND ENTERPRISE RISK
MANAGEMENT SERVICES, OR WISHES TO SUPPLEMENT SUCH INTERNAL SERVICES WITH
THE SERVICES PROVIDED BY THE RISK MANAGER AND THE OFFICE.
7. THE RISK MANAGER MAY REVIEW, STUDY AND ENTER INTO A RELATIONSHIP
WITH: (A) OUTSIDE VENDORS OR CONSULTANTS WITH EXPERTISE IN RISK MANAGE-
MENT, CLAIMS MANAGEMENT OR SAFETY MANAGEMENT, AND (B) CAPTIVE INSURANCE
COMPANIES, AS DEFINED IN SUBSECTION (C) OF SECTION SEVEN THOUSAND TWO OF
THE INSURANCE LAW, OR OTHER RISK SHARING ENTITIES TO REDUCE PERSONAL
INJURY OR PROPERTY DAMAGE LIABILITY CLAIMS AND PAYMENTS, EITHER ON AN
ANNUAL BASIS OR OVER A LONGER PERIOD OF TIME, FOR ALL STATE AGENCIES, OR
A. 7416 4
AN INDIVIDUAL STATE AGENCY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY
OR LOCAL GOVERNMENT.
§ 207. BOARD OF RISK ASSESSMENT AND MANAGEMENT. 1. THERE IS HEREBY
ESTABLISHED, WITHIN THE OFFICE, A STATE BOARD OF RISK ASSESSMENT AND
MANAGEMENT. THE BOARD, TO BE COMPRISED OF THE RISK MANAGER, THE COMMIS-
SIONER OF GENERAL SERVICES, THE CHAIR OF THE STATE INSURANCE FUND, THE
PRESIDENT OF THE STATE CIVIL SERVICE COMMISSION, THE DIRECTOR OF THE
OFFICE OF EMPLOYEE RELATIONS, THE DIRECTOR OF THE DIVISION OF THE BUDG-
ET, AND A REPRESENTATIVE OF EACH OF THE PUBLIC EMPLOYEE ORGANIZATIONS
WITH THE THREE LARGEST MEMBERSHIPS. SUCH BOARD SHALL MEET QUARTERLY FOR
THE PURPOSE OF EXAMINING CURRENT METHODS OF ENTERPRISE RISK MANAGEMENT
AND CONTROL DEPLOYED BY THE STATE, AND REVIEW INSTANCES OF DIFFICULTY IN
DEPLOYING SOUND RISK ASSESSMENT AND ENTERPRISE RISK MANAGEMENT PROCE-
DURES.
2. A SUMMARY OF THE PROCEEDINGS OF THE BOARD, WITH RECOMMENDATIONS FOR
IMPROVEMENT OF THE STATE'S RISK MANAGEMENT PRACTICES AND PROCEDURES,
SHALL BE INCLUDED IN THE ANNUAL REPORT OF THE RISK MANAGER. THE RISK
MANAGER SHALL TAKE INTO CONSIDERATION THE RECOMMENDATIONS PERIODICALLY
MADE BY THE BOARD IN CONDUCTING HIS OR HER MANAGEMENT AND ABATEMENT OF
POTENTIAL LIABILITY ACTIVITIES.
§ 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary for the timely implementation of this act on its effective date
shall be promulgated on or before such date.