NY State Senate Bill 2021-S2065A

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 09, 2022	print number 2065a
Feb 09, 2022	amend and recommit to local government
Jan 05, 2022	referred to local government
Apr 26, 2021	defeated in local government
Mar 09, 2021	notice of committee consideration - requested
Jan 19, 2021	referred to local government

Votes

- Apr 26, 2021 - Local Government Committee Vote
  S2065A
  
  Aye
  
  2
  
  Nay
  
  4
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Local Government Committee Vote: Apr 26, 2021
      
      aye (2)
      
      Borrello
      
      Rath III
      
      nay (4)
      
      Brooks
      
      Gaughran
      
      Hinchey
      
      Thomas
      
      aye wr (1)
      
      Reichlin-Melnick

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S2065 - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §6-n, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2067
2023-2024: S4489
2025-2026: S922

2021-S2065 - Summary

Authorizes school districts to establish an insurance reserve fund in an amount and manner determined by a qualified and independent actuary certified by the American Academy of Actuaries to be reasonable and necessary.

2021-S2065 - Sponsor Memo

                                
 
BILL NUMBER: S2065        Revised 3/4/2021

SPONSOR: JORDAN
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to authorizing
all school districts to establish reserve funds

 
SUMMARY OF PROVISIONS:

Section 1 amends section 6-n of the general municipal law by providing
that any school district may establish insurance reserve funds in
compliance with section 6-n and provisions in the education law. The
provisions also include a limit on funds reserved to be determined by an
independent actuary.

Section 2 sets forth the effective date.

 
JUSTIFICATION:

Current law allows municipal corporations to self-insure to provide

health insurance to their employees, officers, and retirees. Section 6-n
of the general municipal law specifically does so by allowing these
municipal corporations to establish and make expenditures from insurance
reserve funds, but exempts accident and health insurance from these
provisions.

Previous chapters authorized specific school districts to use their
insurance reserve funds for expenses related to health and accident
insurance as defined by paragraph three of subsection (a) of section one
thousand one hundred thirteen of the insurance law. In the era of the
tax cap, several school districts have opted to adopt self-insurance to
manage rising healthcare costs, and for these districts, insurance
reserve funds are necessary to maintain their self-insurance programs.
The policy of the State should be aimed at allowing all school districts
the flexibility offered by insurance reserve funds; instead, the legis-
lature has approached the matter in a piecemeal way. In 2019 and 2020
alone, the legislature added 21 school districts to those who are
allowed to operate an insurance reserve fund over the course of 21
different pieces of legislation. As of March 2021, an additional 4
school districts have legislation before the Senate to gain authori-
zation. This bill offers the flexibility the legislature has extended to
some school districts universally, expanding the authorization to any
school district that wishes to create or use an insurance reserve fund
for health self-insurance.

 
LEGISLATIVE HISTORY:

S.2067B of 2019-20, Referred to Local Government

S.7702 of 2017-18, 3rd Reading

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
The first of July next succeeding the date on which it shall have become
law.

2021-S2065 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2065
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2021
                                ___________
 
 Introduced  by  Sens.  JORDAN,  AKSHAR, BOYLE, GALLIVAN, TEDISCO -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Local Government
 
 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

 S. 2065                             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.

co-Sponsors

2021-S2065A (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §6-n, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2067
2023-2024: S4489
2025-2026: S922

2021-S2065A (ACTIVE) - Summary

2021-S2065A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2065A

SPONSOR: JORDAN
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to authorizing
all school districts to establish reserve funds

 
SUMMARY OF PROVISIONS:

Section 1 amends section 6-n of the general municipal law by providing
that any school district may establish insurance reserve funds in
compliance with section 6-n, provisions in the education law, and
subject to a collective bargaining agreement. The provisions also
include a limit on funds reserved to be determined by an independent
actuary.

Section 2 sets forth the effective date.

 
JUSTIFICATION:

Current law allows municipal corporations to self-insure to provide

health insurance to their employees, officers, and retirees. Section 6-n
of the general municipal law specifically does so by allowing these
municipal corporations to establish and make expenditures from insurance
reserve funds, but exempts accident and health insurance from these
provisions.

Previous chapters authorized specific school districts to use their
insurance reserve funds for expenses related to health and accident
insurance as defined by paragraph three of subsection (a) of section one
thousand one hundred thirteen of the insurance law. In the era of the
tax cap, several school districts have opted to adopt self-insurance to
manage rising healthcare costs, and for these districts, insurance
reserve funds are necessary to maintain their self-insurance programs.
The policy of the State should be aimed at allowing all school districts
the flexibility offered by insurance reserve funds; instead, the legis-
lature has approached the matter in a piecemeal way. In 2019 and 2020
alone, the legislature added 21 school districts to those who are
allowed to operate an insurance reserve fund over the course of 21
different pieces of legislation.  As of March 2021, an additional 4
school districts have legislation before the Senate to gain authori-
zation. This bill offers the flexibility the legislature has extended to
some school districts universally, expanding the authorization to any
school district that wishes to create or use an insurance reserve fund
for health self-insurance.

 
LEGISLATIVE HISTORY:

S.2067B of 2019-20, Referred to Local Government
S.7702 of 2017-18, 3rd Reading

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
The first of July next succeeding the date on which it shall have become
law.

2021-S2065A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2065--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2021
                                ___________
 
 Introduced  by  Sens.  JORDAN,  AKSHAR, BOYLE, GALLIVAN, TEDISCO -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Local Government -- recommitted to the Committee on Local
   Government  in  accordance  with  Senate  Rule  6, sec. 8 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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 separately amended by chapters 212, 215,  290,  353
 and 354 of the laws of 2021, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00809-02-2

 S. 2065--A                          2
 
 school  district,  the Tonawanda city school district, the enlarged city
 school district of Middletown, the Frontier central school district, the
 Owego Apalachin central school district the Maine-Endwell central school
 district  the  Binghamton city school district, and the Depew union free
 school district, and the  Liverpool  central  school  district  and  the
 Carmel  central  school district AND ANY OTHER SCHOOL DISTRICT, PURSUANT
 TO A COLLECTIVE BARGAINING AGREEMENT, may  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 AMERICAN  ACADEMY  OF ACTUARIES  TO
 BE REASONABLE AND NECESSARY, and such school districts may make expendi-
 tures  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  insur-
 ance  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.

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Senate Bill S2065A

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

Votes

Apr 26, 2021 - Local Government Committee Vote

Local Government Committee Vote: Apr 26, 2021

Bill Amendments

co-Sponsors

2021-S2065 - Details

2021-S2065 - Summary

2021-S2065 - Sponsor Memo

2021-S2065 - Bill Text download pdf

co-Sponsors

2021-S2065A (ACTIVE) - Details

2021-S2065A (ACTIVE) - Summary

2021-S2065A (ACTIVE) - Sponsor Memo

2021-S2065A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S2065A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

Votes

Bill Amendments

co-Sponsors

2021-S2065 - Details

2021-S2065 - Summary

2021-S2065 - Sponsor Memo

2021-S2065 - Bill Text download pdf

co-Sponsors

2021-S2065A (ACTIVE) - Details

2021-S2065A (ACTIVE) - Summary

2021-S2065A (ACTIVE) - Sponsor Memo

2021-S2065A (ACTIVE) - Bill Text download pdf

Comments