S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7504
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 12, 2021
                                ___________
 
 Introduced by M. of A. JOYNER -- read once and referred to the Committee
   on Labor
 
 AN  ACT  to amend the workers' compensation law, in relation to allowing
   the New York state  insurance  fund  to  enter  into  agreements  with
   private insurance providers to cover out-of-state work

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 76 of the workers' compensation law is  amended  by
 adding a new subdivision 1-a to read as follows:
   1-A.  A.  THE PURPOSES OF THE STATE INSURANCE FUND ARE HEREBY ENLARGED
 TO PERMIT IT TO ENTER AGREEMENTS WITH INSURERS LICENSED TO  WRITE  WORK-
 ERS' COMPENSATION INSURANCE IN STATES OUTSIDE NEW YORK TO ISSUE POLICIES
 TO  STATE  INSURANCE  FUND  POLICYHOLDERS  COVERING THOSE POLICYHOLDERS'
 OBLIGATIONS TO SECURE THE  PAYMENT  OF  WORKERS'  COMPENSATION  BENEFITS
 UNDER  THE  LAWS OF STATES OTHER THAN NEW YORK. THE STATE INSURANCE FUND
 SHALL ALSO BE AUTHORIZED TO RECEIVE PREMIUMS INTO ITS  WORKERS'  COMPEN-
 SATION  FUND  FOR POLICIES WRITTEN UNDER SUCH AGREEMENTS AND TO PAY FROM
 SUCH FUND: (I) REIMBURSEMENT OF ALL LOSSES AND LOSS ADJUSTMENT  EXPENSES
 UNDER  SUCH  POLICIES;  AND (II) FEES AND OTHER COSTS, INCLUDING BUT NOT
 LIMITED TO THOSE FOR CLAIMS SERVICES, RELATING TO SUCH AGREEMENTS.    AN
 AGREEMENT  UNDER  THIS  SUBDIVISION  SHALL  NOT INCLUDE THE PROVISION OF
 CLAIMS SERVICES FOR ANY CLAIM UNDER THIS CHAPTER.
   B. FOR A POLICYHOLDER TO BE ELIGIBLE FOR  INSURANCE  IN  STATES  OTHER
 THAN NEW YORK PROVIDED THROUGH AGREEMENTS ENTERED INTO UNDER THIS SUBDI-
 VISION,  EITHER:  (I)  THE POLICYHOLDER'S WORKERS' COMPENSATION PREMIUMS
 WITH THE STATE INSURANCE FUND COVERING ITS EMPLOYEES UNDER THIS  CHAPTER
 MUST  BE  GREATER  THAN THE PREMIUMS CHARGED TO COVER THE POLICYHOLDER'S
 OBLIGATIONS TO PAY WORKERS' COMPENSATION BENEFITS IN ALL STATES, IN  THE
 AGGREGATE,  OTHER  THAN  NEW YORK WHEN COVERED UNDER SUCH AGREEMENTS; OR
 (II) THE PAYROLL FOR THE POLICYHOLDER'S OPERATIONS IN NEW YORK  MUST  BE
 GREATER THAN THE POLICYHOLDER'S PAYROLL IN ALL STATES, IN THE AGGREGATE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10883-01-1

 A. 7504                             2
 
 OTHER  THAN  NEW  YORK  WHEN COVERED UNDER SUCH AGREEMENTS FOR THE PRIOR
 POLICY PERIOD. FOR DETERMINING ELIGIBILITY,  "PREMIUMS"  MEAN  ESTIMATED
 PREMIUMS  AS  DETERMINED BY THE STATE INSURANCE FUND AT THE BEGINNING OF
 THE  POLICY  PERIOD.  IN ADDITION, FOR A POLICYHOLDER TO BE ELIGIBLE FOR
 INSURANCE IN STATES OTHER THAN NEW  YORK  THROUGH  THE  STATE  INSURANCE
 FUND, THE POLICYHOLDER MUST MEET THE STATE INSURANCE FUND'S UNDERWRITING
 CRITERIA  FOR OTHER STATES COVERAGE AS SPECIFIED BY RULES OF THE COMMIS-
 SIONERS.
   § 2. This act shall take effect immediately.