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
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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.