S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7588
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 3, 2017
                                ___________
 
 Introduced  by M. of A. SKOUFIS -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN ACT to direct the office of general services to conduct  a  study  to
   examine,  evaluate and make recommendations relating to the establish-
   ment of an office of risk assessment and management, and/or  expanding
   the powers and duties of the state chief risk officer
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The office of general services, in  consultation  with  the
 department of law, the department of audit and control, the state insur-
 ance  fund, the department of financial services, the office of employee
 relations, the state emergency management office, the state  chief  risk
 officer,  and  the division of budget, shall conduct a study to examine,
 evaluate and make recommendations concerning the  establishment,  within
 the office of general services or any other appropriate state agency, an
 office  of  risk  assessment and management, and/or expanding the powers
 and duties of the state  chief  risk  officer.  The  office  of  general
 services,  in  conducting  such study, should direct its attention to at
 least the following:
   (a) the suggested proposed powers of such office  of  risk  assessment
 and  management,  and/or  expanding  the  powers and duties of the state
 chief risk officer, which may include, but not be limited to, the  power
 to:
   (1)  analyze  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 the conduct or
 actions of its employees or agents;
   (2) establish and coordinate business continuity programs  for  essen-
 tial state functions and services;
   (3)  implement risk management programs to manage the state's exposure
 to risk in the most cost effective manner including, but not limited to,

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

                                                            LBD03883-04-7

 A. 7588                             2
 
 programs to reduce the likelihood and potential cost of loss events, and
 the purchase of insurance  or  other  risk  sharing  arrangements  where
 appropriate;
   (4)  analyze  the  implementation of state and local municipal natural
 disaster mitigation plans, as provided in article 2-B of  the  executive
 law, as it relates to effectively minimizing potential loss, exposure or
 damage  to  state and municipal infrastructure, and to real and personal
 property in coastal areas of the  state  due  to  the  occurrence  of  a
 catastrophic weather event or natural disaster; and
   (5)  coordinate  and support the risk management programs of all state
 agencies;
   (b) the appointment of the  state  chief  risk  officer,  who  may  be
 appointed  and  empowered  to  administer  the  proposed  office of risk
 assessment and management. With regard to such state chief risk officer,
 the office of general services should consider:
   (1) the process for the appointment of the state chief risk officer;
   (2) the compensation to be paid to the state chief risk officer;
   (3) the qualifications of the state  chief  risk  officer,  which  may
 include, but not be limited to:
   (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;
   (B) possessing sufficient experience  in  identifying,  assessing  and
 managing enterprise risk exposures that present the breadth and level of
 complexity of issues that can reasonably be expected to be raised during
 the course of state operations; and
   (C)  having  acquired  his  or her qualifications, through appropriate
 education and relevant risk management experience on behalf of a commer-
 cial or governmental organization; and
   (c) the fulfillment of the functions of the proposed  office  of  risk
 assessment and management, and/or expanding the powers and duties of the
 state  chief  risk  officer  by conducting a preliminary examination and
 evaluation, in consultation with the comptroller, the attorney  general,
 the  state  emergency  management  office,  the  department of financial
 services and the state chief risk officer, of the  kinds  and  scope  of
 risk  exposures  faced by the state. Such examination and evaluation may
 include, but not be limited to:
   (1) the 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;
   (2) the actions, claim settlements,  and  claim  settlement  processes
 related  to  actions  in  the court of claims, and  in federal and state
 courts of competent jurisdiction as they relate to  the  disposition  of
 matters against the state;
   (3)  the  essential  operations and service functions of the state and
 local governments, and the kinds of procedures that may be necessary  to
 maintain  or restore such normal and regular operations and functions to
 an appropriate level following a  catastrophic  weather  event,  natural
 disaster or other emergency event;
   (4) the potential future liabilities arising from existing or proposed
 state operations or functions;
   (5)  a description on how to prepare an inventory of all real property
 owned or leased, for a period of time of more than  ten  years,  by  all
 state  agencies,  and  to begin to ascertain how to assess past, present

 A. 7588                             3
 
 and potential future liability exposures and the nature of  those  expo-
 sures; and
   (6)  a  description  of  the kinds of appropriate cost effective tech-
 niques and programs needed to reduce the cost of the state's exposure to
 liability and financial loss arising from its operations; and
   (d) allowing any public benefit corporation, public authority or local
 government to contract for the services of the proposed state chief risk
 officer and the office of risk assessment and management  in  the  event
 that  such public benefit corporation, public authority or local govern-
 ment is without internal risk assessment and enterprise risk  management
 services,  or  wishes  to  supplement  such  internal  services with the
 services provided by the chief risk officer and the office.
   § 2. In addition to the requirements of section one of this  act,  the
 office  of  general  services shall begin to examine, analyze and deter-
 mine:
   (a) an estimate of the financial benefits that could  be  realized  by
 establishing  an office of risk assessment and management and/or expand-
 ing the powers and duties of the  state  chief  risk  officer,  and  the
 potential reduction in the state's liability exposure;
   (b)  the  financial costs and an estimate of the size of the workforce
 necessary to establish such an office and/or a state chief risk  officer
 with expanded powers and duties;
   (c)  the  method  or  process  by  which such proposed office could be
 established and the manner in which such office's  operations  could  be
 phased in over 5 years; and
   (d)  the  method  of financing the establishment and operations of the
 office of risk assessment and management and/or a state chief risk offi-
 cer with expanded powers and duties, in as much as the initial costs  of
 such  office, or officer may not be offset by cost savings and reduction
 in liability exposure until such office or officer has been in existence
 for an extended period of time.
   § 3. Within eighteen months of the effective date  of  this  act,  the
 office  of  general  services shall submit to the governor, the attorney
 general, the state comptroller, the state emergency  management  office,
 the  state  chief risk officer, the state insurance fund, the department
 of financial services, the office of employee relations, the division of
 budget, the temporary president of the senate, the speaker of the assem-
 bly, the minority leader of the senate and the minority  leader  of  the
 assembly, a report of its findings, conclusions and recommendations, and
 shall  submit  with  its  report  such legislative proposals as it deems
 necessary to implement its recommendations.
   § 4. This act shall take effect immediately.