S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4940
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2021
                                ___________
 
 Introduced  by  M. of A. GALEF, ZEBROWSKI, LAVINE, J. RIVERA, SEAWRIGHT,
   BARRON, CAHILL -- Multi-Sponsored by -- M. of  A.  BARCLAY,  SIMON  --
   read once and referred to the Committee on Education
 
 AN  ACT  to  amend the general municipal law, in relation to authorizing
   all school districts to establish reserve funds

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
 al  municipal  law,  as  amended  by chapter 246 of the laws of 2020, is
 amended to read as follows:
   (a) The governing board of any municipal corporation may  establish  a
 reserve  fund  to  be  known  as  the  insurance  reserve fund. Upon the
 creation of the fund, the municipality may make  expenditures  from  the
 fund  for  any  loss,  claim, action or judgment for which the municipal
 corporation is authorized or required to purchase or maintain insurance,
 except those kinds of risks for which insurance is  authorized  pursuant
 to  paragraph  one,  two,  three, fifteen, sixteen, seventeen, eighteen,
 twenty-two or twenty-three of subsection (a) of section one thousand one
 hundred thirteen of the insurance  law,  or  for  payments  in  lieu  of
 contributions under article eighteen of the labor law; provided however,
 that  no  municipality  shall make an expenditure from such fund for any
 loss, claim, action or judgment for which the municipal corporation  has
 established  a  reserve fund under any other provision of law; provided,
 further that the Scarsdale union free school  district,  the  Mamaroneck
 union free school district, the Minisink Valley central school district,
 the  Vernon  Verona  Sherrill  central  school district, the Ithaca city
 school  district,  the  Kenmore-Town  of  Tonawanda  union  free  school
 district,  the Bedford central school district, the Grand Island central
 school district, the Tonawanda city school district, the  enlarged  city
 school district of Middletown, the Frontier central school district, and
 the  Binghamton  city  school district AND ANY OTHER SCHOOL DISTRICT may
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00809-01-1

 A. 4940                             2
 
 establish insurance reserve funds in compliance with  this  section  and
 article  seventy-four  of  the  education  law,  IN AN AMOUNT AND MANNER
 DETERMINED BY A QUALIFIED AND INDEPENDENT ACTUARY CERTIFIED BY THE AMER-
 ICAN  ACADEMY  OF  ACTUARIES  TO  BE  REASONABLE AND NECESSARY, and such
 school districts may make expenditures in compliance with  this  section
 and article seventy-four of the education law from such reserve fund for
 any  loss,  claim, action or judgment for which the school districts are
 authorized or required to purchase or maintain insurance for  the  kinds
 of  risks  for which insurance is authorized pursuant to paragraph three
 of subsection (a) of section one thousand one hundred  thirteen  of  the
 insurance law.
   §  2.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law.