S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8353
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 12, 2017
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Labor
 
 AN  ACT  to  amend  the  workers'  compensation  law, in relation to the
   investment of surplus 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] INVESTMENTS in [the securities of any
 solvent American institution as described in such  paragraphs]  DIVERSI-
 FIED INDEX FUNDS AND ACCOUNTS 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13067-01-7

 A. 8353                             2
 
 ONE THOUSAND FOUR HUNDRED FOUR OF THE INSURANCE LAW IRRESPECTIVE OF  THE
 RATING  OF  SUCH  INSTITUTION'S OBLIGATIONS OR OTHER SIMILAR QUALITATIVE
 STANDARD, OR (5) up to fifteen percent of surplus funds in securities or
 investments  which  do  not  otherwise qualify for investment under this
 section as shall be made with the care, prudence and diligence under the
 circumstances 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  insurance  fund  under  this  article,  but shall not include any
 direct derivative instrument or derivative transaction except for  hedg-
 ing  purposes.  Notwithstanding any other provision in this subdivision,
 the aggregate amount that the state insurance fund  may  invest  in  the
 types  of securities or investments described in paragraphs three, eight
 and ten of subsection (a) of section one thousand four hundred  four  of
 the  insurance  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.
   § 2. This act shall take effect immediately.