S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6638
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 9, 2017
                                ___________
 
 Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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

 S. 6638                             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.