BILL NUMBER:  S6735

 TITLE OF BILL :  An act to direct the office of general services to
conduct a study to examine, evaluate and make recommendations relating
to the establishment of an office of risk assessment and management,
and/or expanding the powers and duties of the state chief risk officer

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to study, 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 purpose of this bill is to advance even further, the process of
strengthening and instituting a formal risk management regiment into
normal daily State operations & procedures. In addition, such office
or officer could assess risk as it relates to the anticipation of the
incidence of a natural disaster or other catastrophic weather event
and how such an event would adversely affect state operations and
those operations by affected municipalities

 SUMMARY OF PROVISIONS :

Section 1. Provides that the Office of General Services, in
              

consultation with the Department of Audit and Control, the State
Insurance Fund, Department of Financial Services, Office of Employee
Relations, Division of Budget, and the State Chief Risk Officer will
conduct a study to examine, evaluate and make recommendations
concerning the establishment of and Office of Risk Assessment and
Management and/ or expanding the powers and duties of the already
existing state chief risk officer.

The study shall address the following:

(a) the appropriate powers and duties of such office of risk
assessment and management, and/or expanding the powers and duties of
the state chief risk officer

(b) the appointment of a state chief risk officer, who may be
appointed and empowered to administer the proposed office of risk
assessment and management;

(c) an analysis of the nature and scope of a whole host of risk
exposures faced by the State;

(d) the establishment and coordination of business continuity programs
for essential state functions and services;

(e) analyze and make recommendations on the state and local municipal
natural disaster mitigation plans, as it relates to effectively
minimizing potential loss, exposure or damage to state and municipal
infrastructure due to the occurrence of a catastrophic weather event
or natural disaster.

(f) 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
government 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;



(g) the utilization of funds appropriated to the office of general
services for a centralized risk management function within state
government;

(h) an estimate of the financial benefits that could be realized by
establishing an office of risk assessment and management and/or
expanding the powers and duties of the state chief risk officer, and
the potential reduction in the state's liability exposure;

(i) 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;

(j) 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 across all state agencies over 5 years; and

(k) the method of financing the establishment and operations of the
office of risk assessment and management and/or a state chief risk
officer with expanded powers and duties of such office.

The study would examine the powers and the duties of the risk
assessment management and/or the chief risk officer, which may include
the following:

(1) analyze and make recommendations on 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
essential state functions and service;

(3)implement risk management programs to manage the state's exposure
to risk in the most cost effective manner;

(4) analyze and make recommendations on the implementation of state
and local municipal natural disaster mitigation plans;

(5) coordinate and support the risk management programs of all state
agencies;

Section 2. The office of general services shall submit to the
governor, the temporary president of the senate, and the speaker of
the assembly, the report required by this act within 18 months of the
effective date. Such report shall be publicly posted on the website of
the office of general services.

Section 3. Provides for the immediate effective date.

 EXISTING LAW :

There is now no one consolidated provision in the State law with
regards to a comprehensive system to assess risks and potential losses
for the operation of activities conducted by the State of New York or
its political subdivisions. However, the State Budget in 2014-2015
appropriated $ 350,000 so that the Executive could begin to pay for
services and expenses related to a centralized risk management
function within state government. The purpose of this bill is to
further advance the concept of establishing a more comprehensive chief
state risk manager or risk management function within State
government.

 JUSTIFICATION :


The State of New York each year faces dramatic exposure and
third-party liability both to persons under the care and custody of
the state and visitors to state premises. In 2007, the liabilities for
workers' compensation alone exceed $1.7 Billion for indemnity claims
and 1.2 Billion for medical claims. Further, tort actions adjudicated
in the Court of Claims cost $82.5 million last year alone.

The expansion of a central Office of Risk Assessment and Management
would go far to determine the full extent of the State's exposure to
civil tort liability and allow the state to systemically reduce such
exposure through the integration of professional risk management
procedures into daily state operations.

Enactment of this measure would help to further the process (first
started pursuant to the State Budget 2014-2015 (the OGS budget) to pay
for services and expenses related to a centralized risk management
function within state government) on how to institute procedures and
policies to help bring New York State in line with a majority of
states, most larger municipalities, and most large corporate entities
that have centralized risk management evaluation procedures and
mitigation practices. Not only will this bill help reduce the annual
payments to satisfy personal and property damage against the state, it
will help to reduce personal injuries sustained by State employees and
members of the general public. Further details on the need to codify
and expand the responsibilities and duties of a statewide risk manager
can be found in a report issued by Senator Klein, entitled. "Expansion
of New York State's Risk Assessment and Management Activities" stated
March 2011.

There is a growing concern that global warming may be significantly
altering weather patterns in New York State and the entire Atlantic
seaboard. Global warming may be altering weather patterns in a manner
that is instigating the increasing number of more severe and
catastrophic weather events in New York, especially along our coastal
areas and in farming regions of the State. These seemingly more
commonly reoccurring significant or catastrophic weather events, such
as hurricanes, storm surges, ice storms, floods and droughts are
imposing substantial new costs to operate State and local governments,
to reconstruct after such events, and are significantly damaging the
State's economy both on a state-wide and localized basis.

The institution of a formal risk management program in New York should
help our state & local governments anticipate damages caused by such
potential future severe weather events. Further, it can help our
State's economy to anticipate such changes in weather patterns, to
mitigate damage to such economy, and channel new growth into new
industries in a manner that is consistent with potential future
weather patterns.

 LEGISLATIVE HISTORY :

This bill is similar to S. 4070-A which passed the Senate on June 14,
2017 63-0. In addition, it is similar to S. 2230 of 2015/2016 which
passed the Senate in both years nearly unanimously, and S. 5407 in
2014. This bill continues the process to study how to establish and
finance either an Office of Risk Management and Assessment or to
expand the role of the already existing State Chief Risk Officer.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
Immediate