Assembly Bill A9231

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9231
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 3, 2025
                                ___________
 
 Introduced  by M. of A. STERN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to establishing  the  New
   York  state catastrophe fund authority act and making an appropriation
   therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state catastrophe fund authority act".
   § 2. Legislative findings and declaration.  The legislature finds  and
 declares:
   1.  There  is  a  compelling  state  interest to maintain a viable and
 orderly private sector property/casualty insurance market for both resi-
 dential and commercial properties in this state and  across  the  United
 States.  To  the extent that the private sector is unable to maintain an
 orderly market, due to catastrophic losses from natural disasters, state
 action to maintain an orderly insurance market is a  necessary  exercise
 of police power;
   2. As a result of scores of billions of dollars in insured losses from
 natural disasters this past year across the nation and the world, due to
 either  chance  or  as a result of global warming, numerous insurers are
 now beginning to reduce their loss exposure from  natural  disasters  by
 pulling  out of certain insurance markets.  The potential instability of
 the world reinsurance market, which has been caused  in  part  by  these
 events,  has  also increased pressure on direct insurers to reduce their
 risk exposure from a catastrophic loss;
   3. The formation of a public authority  to  provide  reimbursement  to
 insurers  for a portion of their catastrophic losses should create addi-
 tional insurance capacity to  ameliorate  the  current  dangers  to  the
 state's economy and to the public health, safety and welfare; and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13986-02-5
 A. 9231                             2
              

 
   4. To increase insurance industry capacity to cover insured losses, it
 is  essential  that  revenues  received by such authority be exempt from
 federal and state taxation. It is therefore the intent of  the  legisla-
 ture  that  this  program be structured as a public authority to operate
 the  fund.    Furthermore, funds held by such fund will be protected and
 remain available to pay for catastrophic losses and not used  for  state
 budget general fund expenditures.
   §  3.  The insurance law is amended by adding a new article 92 to read
 as follows:
                                ARTICLE 92
                 NEW YORK STATE CATASTROPHE FUND AUTHORITY
 SECTION 9201.   DEFINITIONS.
         9202.   NEW YORK STATE CATASTROPHE FUND.
         9202-A. NEW YORK STATE CATASTROPHE FUND AUTHORITY.
         9202-B. GENERAL POWERS OF THE AUTHORITY.
         9203.   REIMBURSEMENT CONTRACTS.
         9204.   REIMBURSEMENT PREMIUMS.
         9205.   REVENUE BONDS.
         9206.   ADDITIONAL POWERS AND DUTIES.
         9206-A. NOTES AND BONDS OF THE AUTHORITY.
         9206-B. AGREEMENT OF THE STATE.
         9206-C. NOTES AND BONDS AS LEGAL INVESTMENT.
         9207.   ADVISORY COUNCIL.
         9208.   VIOLATIONS.
         9209.   INTERNATIONAL, FEDERAL, STATE,  REGIONAL  OR  MULTISTATE
                   CATASTROPHE FUNDS.
         9210.   FUND ASSETS UPON TERMINATION.
   § 9201. DEFINITIONS. AS USED IN THIS ARTICLE:
   (A)  "ACTUARIALLY  INDICATED"  MEANS, WITH RESPECT TO PREMIUMS PAID BY
 INSURERS FOR REIMBURSEMENT PROVIDED BY THE CATASTROPHE  FUND  AUTHORITY,
 AN  AMOUNT DETERMINED ACCORDING TO PRINCIPLES OF ACTUARIAL SCIENCE TO BE
 ADEQUATE, BUT NOT EXCESSIVE, IN THE AGGREGATE, TO PAY CURRENT AND FUTURE
 OBLIGATIONS AND EXPENSES OF THE FUND, INCLUDING  ADDITIONAL  AMOUNTS  IF
 NEEDED  TO  PAY  DEBT SERVICE ON REVENUE BONDS ISSUED UNDER THIS ARTICLE
 AND TO PROVIDE REQUIRED DEBT SERVICE COVERAGE IN EXCESS OF  THE  AMOUNTS
 REQUIRED  TO  PAY  ACTUAL  DEBT  SERVICE  ON  REVENUE BONDS ISSUED UNDER
 SECTION NINE THOUSAND TWO HUNDRED FIVE OF THIS ARTICLE,  AND  DETERMINED
 ACCORDING  TO  PRINCIPLES OF ACTUARIAL SCIENCE TO REFLECT EACH INSURER'S
 RELATIVE EXPOSURE TO LOSSES FROM COVERED EVENTS.
   (B) "AUTHORITY" MEANS THE NEW YORK STATE CATASTROPHE FUND AUTHORITY.
   (C) "BOND" MEANS ANY BOND, DEBENTURE, NOTE OR OTHER EVIDENCE OF FINAN-
 CIAL INDEBTEDNESS ISSUED UNDER THIS ARTICLE.
   (D) "COVERED EVENT" MEANS: (1) ANY WIND STORM,  INCLUDING  WIND  BORNE
 WATER  DAMAGE,  WHICH STORM CAUSES INSURED LOSSES IN THIS STATE; (2) ALL
 EARTHQUAKES THAT ARE DECLARED TO BE EARTHQUAKES  BY  THE  UNITED  STATES
 GEOLOGICAL  SURVEY,  AND  WHICH CAUSES INSURED LOSSES IN THIS STATE; (3)
 ALL ICE STORMS THAT ARE DECLARED BY THE UNITED STATES GOVERNMENT  TO  BE
 DESIGNATED AS A NATIONAL  DISASTER; AND (4) ANY OTHER CATASTROPHIC EVENT
 CAUSED  BY  NATURE  OR  AN  ACT  OF  GOD  THAT  IS  DEEMED TO BE A MAJOR
 CATASTROPHIC EVENT AS DESIGNATED BY THE GOVERNOR.
   (E) "COVERED POLICY" MEANS ANY INSURANCE POLICY  COVERING  RESIDENTIAL
 OR COMMERCIAL PROPERTY IN THIS STATE, INCLUDING, BUT NOT LIMITED TO, ANY
 HOMEOWNER'S, MOBILE HOME OWNER'S, FARM OWNER'S, CONDOMINIUM ASSOCIATION,
 CONDOMINIUM  UNIT OWNER'S, TENANT'S OR APARTMENT BUILDING POLICY, OR ANY
 OTHER POLICY COVERING A RESIDENTIAL STRUCTURE OR ITS CONTENTS ISSUED  BY
 ANY  AUTHORIZED INSURER, INCLUDING A POLICY ISSUED BY THE NEW YORK PROP-
 A. 9231                             3
 
 ERTY INSURANCE UNDERWRITING ASSOCIATION, OR ANY INSURANCE POLICY  COVER-
 ING  COMMERCIAL PROPERTIES FROM PHYSICAL DAMAGE DUE TO ACTS OF NATURE OR
 ACTS OF GOD.  "COVERED POLICY" DOES NOT INCLUDE ANY  REINSURANCE  AGREE-
 MENT  OR  ANY POLICY THAT EXCLUDES COVERAGE FOR THE PERIL REFERRED TO IN
 SUBSECTION (D) OF THIS SECTION.
   (F) "DEBT SERVICE" MEANS THE AMOUNT REQUIRED IN ANY FISCAL YEAR TO PAY
 THE PRINCIPAL OF, REDEMPTION PREMIUM, IF ANY, AND  INTEREST  ON  REVENUE
 BONDS  AND  ANY  AMOUNTS REQUIRED BY THE TERMS OF DOCUMENTS AUTHORIZING,
 SECURING OR PROVIDING LIQUIDITY FOR REVENUE BONDS NECESSARY TO  MAINTAIN
 IN EFFECT ANY SUCH LIQUIDITY OR SECURITY ARRANGEMENTS.
   (G)  "DEBT SERVICE COVERAGE" MEANS THE AMOUNT, IF ANY, REQUIRED BY THE
 DOCUMENTS UNDER WHICH REVENUE BONDS ARE ISSUED, WHICH AMOUNT  IS  TO  BE
 RECEIVED IN ANY FISCAL YEAR IN EXCESS OF THE AMOUNT REQUIRED TO PAY DEBT
 SERVICE FOR SUCH FISCAL YEAR.
   (H) "LOCAL GOVERNMENT" SHALL MEAN ANY COUNTY, CITY, TOWN OR VILLAGE.
   (I)  "LOSSES"  MEANS  DIRECT  INCURRED  LOSSES UNDER COVERED POLICIES,
 EXCLUDING LOSSES ATTRIBUTABLE TO ADDITIONAL LIVING EXPENSE COVERAGES AND
 EXCLUDING LOSS ADJUSTMENT EXPENSES.
   (J) "PLEDGED REVENUES" MEANS ALL OR ANY  PORTION  OF  REVENUES  TO  BE
 DERIVED  FROM  REIMBURSEMENT PREMIUMS OR FROM ASSESSMENTS, AS DETERMINED
 BY THE AUTHORITY.
   (K) "RETENTION" MEANS THE AMOUNT OF LOSSES BELOW WHICH AND ABOVE WHICH
 AN INSURER IS NOT ENTITLED TO REIMBURSEMENT FROM THE FUND. AN  INSURER'S
 RETENTION SHALL BE CALCULATED AS FOLLOWS:
   (L)  THE  AUTHORITY  SHALL  CALCULATE  AND  REPORT TO EACH INSURER THE
 RETENTION MULTIPLES FOR THAT YEAR. FOR THE CONTRACT YEAR  BEGINNING  MAY
 FIRST, TWO THOUSAND TWENTY-SIX, THE RETENTION MULTIPLE SHALL BE EQUAL TO
 SIX BILLION DOLLARS, DIVIDED BY THE TOTAL ESTIMATED REIMBURSEMENT PREMI-
 UM  FOR  THE CONTRACT YEAR; FOR SUBSEQUENT YEARS, THE RETENTION MULTIPLE
 SHALL BE EQUAL TO SIX BILLION DOLLARS, ADJUSTED TO REFLECT THE  PERCENT-
 AGE GROWTH IN PREMIUM FOR COVERED POLICIES SINCE MAY FIRST, TWO THOUSAND
 TWENTY-SIX, DIVIDED BY THE TOTAL ESTIMATED REIMBURSEMENT PREMIUM FOR THE
 CONTRACT  YEAR.  IN ADDITION, FOR THE CONTRACT YEAR BEGINNING MAY FIRST,
 TWO THOUSAND TWENTY-SIX, THE RETENTION MULTIPLE SHALL BE  ABOVE  FIFTEEN
 BILLION  DOLLARS,  DIVIDED  BY THE TOTAL ESTIMATED REIMBURSEMENT PREMIUM
 FOR THE CONTRACT YEAR; AND FOR SUBSEQUENT CONTRACT YEARS, THE  RETENTION
 MULTIPLE SHALL BE ABOVE FIFTEEN BILLION DOLLARS, ADJUSTED TO REFLECT THE
 PERCENTAGE  GROWTH IN PREMIUMS FOR COVERED POLICIES SINCE MAY FIRST, TWO
 THOUSAND TWENTY-SIX, DIVIDED BY THE TOTAL ESTIMATED REIMBURSEMENT PREMI-
 UM FOR THE CONTRACT YEAR. PARTICIPATING  INSURERS  SHALL  RETAIN  LOSSES
 BELOW  SIX BILLION DOLLARS AND ABOVE FIFTEEN BILLION DOLLARS AS ADJUSTED
 ANNUALLY TO REFLECT INCREASES OR DECREASES IN THE GROWTH IN PREMIUM  FOR
 COVERED  POLICIES.    TOTAL  REIMBURSEMENT  PREMIUM  FOR PURPOSES OF THE
 CALCULATION UNDER THIS PARAGRAPH SHALL BE ESTIMATED USING THE ASSUMPTION
 THAT ALL INSURERS HAVE SELECTED A PERCENTAGE COVERAGE LEVEL  ESTABLISHED
 BY  THE  AUTHORITY. SUCH PERCENTAGE COVERAGE SHALL NOT BE SET LOWER THAN
 EIGHTY PERCENT NOR HIGHER THAN NINETY PERCENT.
   (2) THE RETENTION MULTIPLE DETERMINED  UNDER  PARAGRAPH  ONE  OF  THIS
 SUBSECTION  SHALL  BE  ADJUSTED TO REFLECT THE COVERAGE LEVEL ELECTED BY
 THE INSURER.  FOR INSURERS ELECTING THE FIRST COVERAGE LEVEL SET BY  THE
 AUTHORITY PURSUANT TO SUCH PARAGRAPH, THE ADJUSTED RETENTION MULTIPLE IS
 ONE HUNDRED PERCENT OF THE AMOUNT DETERMINED UNDER PARAGRAPH ONE OF THIS
 SUBSECTION.    FOR  INSURERS  ELECTING  THE  SECOND COVERAGE LEVEL TO BE
 ESTABLISHED BY THE AUTHORITY AT NOT MORE THAN EIGHTY  PERCENT  NOR  LESS
 THAN  SEVENTY  PERCENT,  THE  RETENTION  MULTIPLE  IS ONE HUNDRED TWENTY
 PERCENT OF THE AMOUNT DETERMINED UNDER PARAGRAPH ONE OF THIS SUBSECTION.
 A. 9231                             4
 
 FOR INSURERS ELECTING THE THIRD COVERAGE LEVEL TO BE ESTABLISHED BY  THE
 AUTHORITY  AT NOT MORE THAN SEVENTY PERCENT NOR LESS THAN FIFTY PERCENT,
 THE ADJUSTED RETENTION MULTIPLE IS TWO HUNDRED  PERCENT  OF  THE  AMOUNT
 DETERMINED UNDER PARAGRAPH ONE OF THIS SUBSECTION.
   (3)  AN INSURER SHALL DETERMINE ITS PROVISIONAL RETENTION BY MULTIPLY-
 ING ITS PROVISIONAL REIMBURSEMENT PREMIUM  BY  THE  APPLICABLE  ADJUSTED
 RETENTION  MULTIPLE,  AND SHALL DETERMINE ITS ACTUAL RETENTION BY MULTI-
 PLYING ITS ACTUAL  REIMBURSEMENT  PREMIUM  BY  THE  APPLICABLE  ADJUSTED
 RETENTION MULTIPLE.
   §  9202.  NEW YORK STATE CATASTROPHE FUND. THERE IS HEREBY CREATED THE
 NEW YORK STATE CATASTROPHE FUND TO BE  ADMINISTERED  BY  THE  AUTHORITY.
 MONEYS IN THE FUND MAY NOT BE EXPENDED, LOANED OR APPROPRIATED EXCEPT TO
 PAY  OBLIGATIONS OF THE AUTHORITY ARISING OUT OF REIMBURSEMENT CONTRACTS
 ENTERED INTO UNDER SECTION NINE THOUSAND TWO HUNDRED THREE OF THIS ARTI-
 CLE, PAYMENT OF DEBT SERVICE ON REVENUE BONDS ISSUED UNDER SECTION  NINE
 THOUSAND  TWO  HUNDRED  FIVE  OF  THIS  ARTICLE, COSTS OF THE MITIGATION
 PROGRAM UNDER SECTION NINE THOUSAND TWO HUNDRED  SIX  OF  THIS  ARTICLE,
 COSTS  OF  PROCURING  REINSURANCE,  AND  COSTS  OF ADMINISTRATION OF THE
 AUTHORITY.  THE AUTHORITY SHALL INVEST THE MONEYS IN THE  FUND  PURSUANT
 TO APPLICABLE STATE LAWS REGULATING INVESTMENT OF STATE FUNDS. EXCEPT AS
 OTHERWISE  PROVIDED IN THIS ARTICLE, EARNINGS FROM ALL INVESTMENTS SHALL
 BE RETAINED IN THE FUND.   THE AUTHORITY MAY ADOPT  SUCH  RULES  AS  ARE
 REASONABLE  AND  NECESSARY  TO IMPLEMENT THIS ARTICLE.   SUCH RULES MUST
 CONFORM TO THE LEGISLATURE'S SPECIFIC INTENT  IN  ESTABLISHING  THE  NEW
 YORK  STATE  CATASTROPHE FUND, MUST ENHANCE THE FUND'S POTENTIAL ABILITY
 TO RESPOND TO CLAIMS FOR COVERED EVENTS, MUST CONTAIN GENERAL PROVISIONS
 SO THAT THE RULES CAN BE APPLIED WITH REASONABLE FLEXIBILITY  SO  AS  TO
 ACCOMMODATE  INSURERS  IN SITUATIONS OF AN UNUSUAL NATURE OR WHERE UNDUE
 HARDSHIP MAY RESULT, EXCEPT THAT SUCH FLEXIBILITY MAY  NOT  IN  ANY  WAY
 IMPAIR, OVERRIDE, SUPERSEDE OR CONSTRAIN THE PUBLIC PURPOSE OF THE FUND,
 AND  MUST  BE  CONSISTENT WITH SOUND INSURANCE PRACTICES.  THE AUTHORITY
 MAY, BY RULE, PROVIDE FOR THE EXEMPTION FROM SECTIONS NINE THOUSAND  TWO
 HUNDRED  THREE  AND  NINE  THOUSAND TWO HUNDRED FOUR OF THIS ARTICLE FOR
 INSURERS WRITING COVERED POLICIES WITH LESS THAN FOUR MILLION DOLLARS IN
 AGGREGATE EXPOSURE FOR COVERED POLICIES, WHICH EXPOSURE RESULTS IN A  DE
 MINIMIS  REIMBURSEMENT  PREMIUM,  IF  THE  EXEMPTION DOES NOT AFFECT THE
 ACTUARIAL SOUNDNESS OF THE FUND.
   § 9202-A. NEW YORK STATE CATASTROPHE FUND AUTHORITY.  THERE IS  HEREBY
 CREATED  THE  "NEW  YORK STATE CATASTROPHE FUND AUTHORITY".  (A) (1) THE
 AUTHORITY SHALL BE A BODY CORPORATE AND POLITIC  CONSTITUTING  A  PUBLIC
 BENEFIT CORPORATION. THE AUTHORITY SHALL CONSIST OF A CHAIR AND NINETEEN
 OTHER  MEMBERS.  THE  CHAIR  OF  THE AUTHORITY SHALL BE APPOINTED BY THE
 GOVERNOR.  TWO OF THE NINETEEN MEMBERS SHALL BE APPOINTED ON THE WRITTEN
 RECOMMENDATION OF THE MAYOR OF THE CITY OF NEW YORK.  TEN MEMBERS  SHALL
 BE  APPOINTED  BY  THE GOVERNOR OF WHICH THREE OF THOSE MEMBERS SHALL BE
 THE SUPERINTENDENT AND THE COMMISSIONERS OF  TAXATION  AND  FINANCE  AND
 TRANSPORTATION.  THE  STATE COMPTROLLER SHALL BE A MEMBER OF THIS BOARD.
 TWO MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE,
 TWO BY THE SPEAKER OF THE ASSEMBLY, AND ONE EACH BY THE MINORITY  LEADER
 OF  THE  SENATE  AND THE MINORITY LEADER OF THE ASSEMBLY.  THE CHAIR AND
 EACH OF THE MEMBERS SHALL BE  APPOINTED  FOR  A  TERM  OF  THREE  YEARS,
 PROVIDED  HOWEVER, THAT THE CHAIR FIRST APPOINTED SHALL SERVE FOR A TERM
 ENDING JUNE THIRTIETH, TWO THOUSAND TWENTY-NINE, AND THE EIGHTEEN  OTHER
 MEMBERS  FIRST  APPOINTED  SHALL SERVE FOR THE FOLLOWING TERMS: THE FOUR
 MEMBERS APPOINTED BY THE TEMPORARY  PRESIDENT  OF  THE  SENATE  AND  THE
 SPEAKER  OF THE ASSEMBLY SHALL EACH SERVE FOR A TERM ENDING JUNE THIRTI-
 A. 9231                             5
 
 ETH, TWO THOUSAND THIRTY; THE TWO MEMBERS APPOINTED ON RECOMMENDATION OF
 THE MAYOR OF THE CITY OF NEW YORK SHALL EACH SERVE  FOR  A  TERM  ENDING
 JUNE THIRTIETH, TWO THOUSAND THIRTY-ONE, TWO OF THE MEMBERS APPOINTED BY
 THE  GOVERNOR  SHALL  EACH  SERVE  FOR A TERM ENDING JUNE THIRTIETH, TWO
 THOUSAND THIRTY-TWO; TWO OF THE MEMBERS APPOINTED BY THE GOVERNOR  SHALL
 EACH  SERVE FOR A TERM ENDING JUNE THIRTIETH, TWO THOUSAND THIRTY-THREE,
 TWO OF THE MEMBERS APPOINTED BY THE GOVERNOR SHALL EACH SERVE FOR A TERM
 ENDING JUNE THIRTIETH, TWO THOUSAND THIRTY-FOUR, AND TWO OF THE  MEMBERS
 APPOINTED  BY THE GOVERNOR SHALL SERVE FOR A TERM ENDING JUNE THIRTIETH,
 TWO THOUSAND THIRTY-FIVE.
   (2) VACANCIES OCCURRING OTHERWISE THAN BY EXPIRATION OF TERM SHALL  BE
 FILLED  IN  THE  SAME MANNER AS ORIGINAL APPOINTMENTS FOR THE BALANCE OF
 THE UNEXPIRED TERM.
   (B) THE CHAIR SHALL BE PAID A SALARY IN THE AMOUNT DETERMINED  BY  THE
 AUTHORITY; THE OTHER MEMBERS SHALL NOT RECEIVE A SALARY OR OTHER COMPEN-
 SATION.   EACH  MEMBER,  INCLUDING  THE  CHAIR,  SHALL  BE  ENTITLED  TO
 REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
 ANCE OF THEIR OFFICIAL DUTIES.
   (C) A MAJORITY OF THE WHOLE NUMBER OF MEMBERS OF THE AUTHORITY THEN IN
 OFFICE SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY BUSINESS  OR
 THE  EXERCISE  OF ANY POWER OF THE AUTHORITY. EXCEPT AS OTHERWISE SPECI-
 FIED IN THIS ARTICLE, FOR THE TRANSACTION OF ANY BUSINESS OR  THE  EXER-
 CISE  OF  ANY  POWER OF THE AUTHORITY, THE AUTHORITY SHALL HAVE POWER TO
 ACT BY A MAJORITY VOTE OF THE MEMBERS PRESENT AT ANY MEETING AT WHICH  A
 QUORUM  IS  IN ATTENDANCE AND EXCEPT FURTHER, THAT IN THE EVENT OF A TIE
 VOTE THE CHAIR SHALL CAST ONE ADDITIONAL VOTE.
   (D) THE CHAIR SHALL BE THE CHIEF EXECUTIVE OFFICER  OF  THE  AUTHORITY
 AND SHALL BE RESPONSIBLE FOR THE DISCHARGE OF THE EXECUTIVE AND ADMINIS-
 TRATIVE  FUNCTIONS AND POWERS OF THE AUTHORITY. ON RECOMMENDATION OF THE
 CHAIR, THE AUTHORITY SHALL APPOINT AN EXECUTIVE DIRECTOR  WHO  SHALL  BE
 RESPONSIBLE  FOR THE ADMINISTRATION AND THE DAY-TO-DAY OPERATIONS OF THE
 AUTHORITY AND WHO SHALL NOT BE A MEMBER  OF  THE  AUTHORITY.  THE  CHAIR
 SHALL  BE  EMPOWERED  TO  DELEGATE ANY ONE OR MORE OF THEIR FUNCTIONS OR
 POWERS TO THE EXECUTIVE DIRECTOR,  PROVIDED,  HOWEVER,  THAT  THE  CHAIR
 SHALL  DELEGATE  TO  THE  EXECUTIVE  DIRECTOR SUCH FUNCTIONS AND POWERS,
 INCLUDING, WITHOUT  LIMITATION,  THAT  OF  APPOINTMENT,  DISCIPLINE  AND
 REMOVAL  OF  OFFICERS  OR  EMPLOYEES, AS ARE NECESSARY FOR THE EXECUTIVE
 DIRECTOR TO DISCHARGE THEIR RESPONSIBILITIES.
   (E) THE AUTHORITY SHALL BE  A  "STATE  AGENCY"  FOR  THE  PURPOSES  OF
 SECTIONS SEVENTY-THREE AND SEVENTY-FOUR OF THE PUBLIC OFFICERS LAW.
   (F)  THE  GOVERNOR  MAY REMOVE ANY MEMBER OF THE AUTHORITY FOR INEFFI-
 CIENCY, NEGLECT OF DUTY OR MISCONDUCT IN OFFICE AFTER GIVING SUCH MEMBER
 A COPY OF THE CHARGES AGAINST THEM AND AN OPPORTUNITY TO  BE  HEARD,  IN
 PERSON  OR  BY  COUNSEL  IN  THEIR DEFENSE, UPON NOT LESS THAN TEN DAYS'
 NOTICE. IF ANY MEMBER SHALL BE SO REMOVED, THE GOVERNOR  SHALL  FILE  IN
 THE  OFFICE  OF  THE DEPARTMENT OF STATE A COMPLETE STATEMENT OF CHARGES
 MADE AGAINST SUCH MEMBER, AND THE  FINDINGS  THEREON,  TOGETHER  WITH  A
 COMPLETE RECORD OF THE PROCEEDINGS.
   § 9202-B. GENERAL POWERS OF THE AUTHORITY. EXCEPT AS OTHERWISE LIMITED
 BY THIS ARTICLE, THE AUTHORITY SHALL HAVE THE POWER:
   (A) TO SUE AND BE SUED;
   (B) TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
   (C)  TO  BORROW MONEY AND ISSUE NEGOTIABLE NOTES, BONDS OR OTHER OBLI-
 GATIONS AND TO PROVIDE FOR THE RIGHTS OF THE HOLDERS THEREOF;
   (D) TO INVEST ANY FUNDS HELD IN  RESERVE  OR  SINKING  FUNDS,  OR  ANY
 MONIES NOT REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT, AT THE DISCRETION
 A. 9231                             6
 
 OF  THE  AUTHORITY, IN (1) OBLIGATIONS OF THE STATE OR THE UNITED STATES
 GOVERNMENT, (2) REASONABLY PRUDENT CATASTROPHE  NOTES,  BONDS,  OPTIONS,
 SWAPS  AND  RISK FUTURES OR OTHER PRUDENT FINANCIAL INSTRUMENTS TO MAXI-
 MIZE  THE  FINANCIAL CAPACITY OF THE FUND, (3) OBLIGATIONS THE PRINCIPAL
 AND INTEREST OF WHICH ARE GUARANTEED BY THE STATE OR THE  UNITED  STATES
 GOVERNMENT,  (4)  CERTIFICATES OF DEPOSIT OF BANKS OR TRUST COMPANIES IN
 THIS STATE, SECURED, IF THE AUTHORITY SHALL SO REQUIRE,  BY  OBLIGATIONS
 OF  THE  UNITED  STATES  OR  OF THE STATE OF A MARKET VALUE EQUAL AT ALL
 TIMES TO THE AMOUNT OF THE DEPOSIT, AND (5) AS TO THE SAID  RESERVE  AND
 SINKING  FUNDS, OTHER SECURITIES IN WHICH THE TRUSTEE OR TRUSTEES OF ANY
 PUBLIC RETIREMENT SYSTEM OR PENSION FUND HAS THE  POWER  TO  INVEST  THE
 MONEYS  THEREOF  PURSUANT TO ARTICLE FOUR-A OF THE RETIREMENT AND SOCIAL
 SECURITY LAW, EACH SUCH RESERVE AND SINKING  FUND  BEING  TREATED  AS  A
 SEPARATE FUND FOR THE PURPOSES OF ARTICLE FOUR-A OF SUCH LAW;
   (E)  TO  MAKE  AND  ALTER  BY-LAWS  FOR  ITS ORGANIZATION AND INTERNAL
 MANAGEMENT, AND RULES AND REGULATIONS  GOVERNING  THE  EXERCISE  OF  ITS
 POWERS AND THE FULFILLMENT OF ITS PURPOSES UNDER THIS ARTICLE;
   (F)  TO  ENTER  INTO CONTRACTS AND LEASES AND TO EXECUTE ALL NECESSARY
 INSTRUMENTS;
   (G) TO ACQUIRE, HOLD AND DISPOSE OF REAL OR PERSONAL PROPERTY  IN  THE
 EXERCISE OF ITS POWERS;
   (H)  TO  APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE FOR THE
 PERFORMANCE OF ITS DUTIES, AND TO FIX  AND  DETERMINE  THEIR  QUALIFICA-
 TIONS,  DUTIES,  AND COMPENSATION AND TO RETAIN OR EMPLOY COUNSEL, AUDI-
 TORS, ENGINEERS AND PRIVATE CONSULTANTS ON A CONTRACT BASIS OR OTHERWISE
 FOR RENDERING PROFESSIONAL OR TECHNICAL SERVICES AND ADVICE;
   (I) TO BE A "PARTICIPATING EMPLOYER" IN THE NEW YORK STATE  AND  LOCAL
 EMPLOYEES'  RETIREMENT  SYSTEM  WITH  RESPECT  TO ONE OR MORE CLASSES OF
 OFFICERS AND EMPLOYEES OF SUCH AUTHORITY, AS MAY BE PROVIDED  BY  RESOL-
 UTION OF SUCH AUTHORITY, OR ANY SUBSEQUENT AMENDMENT THEREOF, FILED WITH
 THE  COMPTROLLER  AND  ACCEPTED  BY  THE COMPTROLLER PURSUANT TO SECTION
 THIRTY-ONE OF THE RETIREMENT AND SOCIAL SECURITY LAW; AND
   (J) TO DO ALL THINGS NECESSARY TO CARRY OUT ITS PURPOSES AND  FOR  THE
 EXERCISE OF THE POWERS GRANTED IN THIS ARTICLE.
   § 9203. REIMBURSEMENT CONTRACTS.  (A) THE AUTHORITY SHALL ENTER INTO A
 CONTRACT  WITH  EACH  INSURER  WRITING COVERED POLICIES IN THIS STATE TO
 PROVIDE TO THE INSURER THE REIMBURSEMENT DESCRIBED IN SUBSECTION (B)  OF
 THIS SECTION, IN EXCHANGE FOR THE REIMBURSEMENT PREMIUM PAID TO THE FUND
 UNDER  SECTION  NINE  THOUSAND  TWO  HUNDRED  FOUR OF THIS ARTICLE. AS A
 CONDITION OF DOING BUSINESS IN THIS STATE, EACH SUCH INSURER SHALL ENTER
 INTO SUCH A CONTRACT.
   (B) (1) THE CONTRACT SHALL CONTAIN A PROMISE BY THE AUTHORITY TO REIM-
 BURSE THE INSURER FOR THE FIRST, SECOND  OR  THIRD  PERCENTAGE  COVERAGE
 LEVEL  FOR ITS LOSSES FROM EACH COVERED EVENT IN EXCESS OF THE INSURER'S
 RETENTION, PLUS FIVE PERCENT OF THE  REIMBURSED  LOSSES  TO  COVER  LOSS
 ADJUSTMENT EXPENSES.
   (2)  THE INSURER MUST ELECT ONE OF THE THREE COVERAGE LEVELS SPECIFIED
 IN THIS SUBSECTION AND MAY, UPON RENEWAL OF A REIMBURSEMENT CONTRACT:
   (A) ELECT A LOWER PERCENTAGE COVERAGE LEVEL IF NO REVENUE BONDS ISSUED
 UNDER SUBSECTION (A) OF SECTION NINE THOUSAND TWO HUNDRED FIVE  OF  THIS
 ARTICLE AFTER A COVERED EVENT ARE OUTSTANDING; OR
   (B) ELECT A HIGHER PERCENTAGE COVERAGE LEVEL.
   (3)  ALL  MEMBERS  OF  AN  INSURER  GROUP MUST ELECT THE SAME COVERAGE
 LEVEL.  THE NEW YORK PROPERTY INSURANCE  UNDERWRITING  ASSOCIATION  MUST
 ELECT THE FIRST PERCENTAGE COVERAGE LEVEL.
 A. 9231                             7
 
   (4) THE CONTRACT SHALL PROVIDE THAT REIMBURSEMENT AMOUNTS SHALL NOT BE
 REDUCED  BY REINSURANCE PAID OR PAYABLE TO THE INSURER FROM OTHER SOURC-
 ES; HOWEVER, RECOVERIES FROM SUCH OTHER  SOURCES,  TAKEN  TOGETHER  WITH
 REIMBURSEMENTS  UNDER THE CONTRACT, SHALL NOT EXCEED ONE HUNDRED PERCENT
 OF  THE  INSURER'S  LOSSES  FROM  COVERED EVENTS. IF SUCH RECOVERIES AND
 REIMBURSEMENTS EXCEED ONE HUNDRED PERCENT OF THE INSURER'S  LOSSES  FROM
 COVERED EVENTS, AND IF THERE IS NO AGREEMENT BETWEEN THE INSURER AND THE
 REINSURER  TO  THE CONTRARY, ANY AMOUNT IN EXCESS OF ONE HUNDRED PERCENT
 OF THE INSURER'S LOSSES SHALL BE RETURNED TO THE FUND.
   (C) THE CONTRACT SHALL ALSO PROVIDE THAT THE OBLIGATION OF THE AUTHOR-
 ITY WITH RESPECT TO ALL CONTRACTS COVERING A PARTICULAR YEAR  SHALL  NOT
 EXCEED  THE  BALANCE  OF  THE  FUND  AS  OF DECEMBER THIRTY-FIRST OF THE
 PARTICULAR YEAR, TOGETHER WITH THE MAXIMUM AMOUNT THAT THE AUTHORITY  IS
 ABLE  TO  RAISE THROUGH THE ISSUANCE OF REVENUE BONDS UNDER SECTION NINE
 THOUSAND TWO HUNDRED FIVE OF THIS ARTICLE. THE  CONTRACT  SHALL  REQUIRE
 THE  AUTHORITY  TO  ANNUALLY  NOTIFY  INSURERS OF THE FUND'S ANTICIPATED
 BORROWING CAPACITY AT YEAR END, THE PROJECTED YEAR END  BALANCE  OF  THE
 FUND,  AND  THE INSURER'S ESTIMATED SHARE OF TOTAL REIMBURSEMENT PREMIUM
 TO BE PAID TO THE FUND FOR THE CONTRACT YEAR.   FOR ALL  REGULATORY  AND
 REINSURANCE PURPOSES, AN INSURER MAY CALCULATE ITS PROJECTED PAYOUT FROM
 THE FUND AS ITS SHARE OF THE TOTAL FUND PREMIUM FOR THE CURRENT CONTRACT
 YEAR  MULTIPLIED BY THE SUM OF PROJECTED YEAR-END FUND BALANCE AND BOND-
 ING CAPACITY AS REPORTED UNDER THIS SUBSECTION. IN MAY  AND  OCTOBER  OF
 EACH YEAR, THE AUTHORITY SHALL PUBLISH IN THE STATE REGISTER A STATEMENT
 OF  THE FUND'S ANTICIPATED BORROWING CAPACITY AND THE PROJECTED YEAR-END
 BALANCE OF THE FUND FOR THE CURRENT CONTRACT YEAR.
   (D) (1) THE CONTRACT SHALL  REQUIRE  THE  INSURER  TO  REPORT  TO  THE
 AUTHORITY,  AS  DIRECTED,  NO  LATER  THAN DECEMBER THIRTY-FIRST OF EACH
 YEAR, AND QUARTERLY THEREAFTER, THE INSURER'S LOSSES FROM COVERED EVENTS
 FOR THE YEAR. THE CONTRACT SHALL REQUIRE THE AUTHORITY TO DETERMINE  AND
 PAY,  AS  SOON AS PRACTICABLE AFTER RECEIVING THESE REPORTS, THE INITIAL
 AMOUNT OF REIMBURSEMENT DUE ON A PAID  BASIS  AND  ADJUSTMENTS  TO  THIS
 AMOUNT BASED ON LATER LOSS INFORMATION. THE ADJUSTMENTS TO REIMBURSEMENT
 AMOUNTS  SHALL  REQUIRE  THE AUTHORITY TO PAY, OR THE INSURER TO RETURN,
 AMOUNTS REFLECTING THE MOST RECENT CALCULATION OF LOSSES.
   (2) IF THE AUTHORITY DETERMINES THAT THE PROJECTED YEAR-END BALANCE OF
 THE FUND, TOGETHER WITH THE AMOUNT THAT THE AUTHORITY DETERMINES THAT IT
 IS POSSIBLE TO RAISE THROUGH REVENUE BONDS  ISSUED  UNDER  SECTION  NINE
 THOUSAND  TWO  HUNDRED  FIVE  OF  THIS  ARTICLE, ARE INSUFFICIENT TO PAY
 REIMBURSEMENT TO ALL INSURERS AT THE LEVEL PROMISED IN THE CONTRACT, THE
 AUTHORITY SHALL:
   (A) PAY TO EACH INSURER THE AMOUNT OF REIMBURSEMENT IT IS OWED, UP  TO
 AN  AMOUNT  EQUAL  TO THE INSURER'S SHARE OF THE ACTUAL PREMIUM PAID FOR
 THAT CONTRACT YEAR, MULTIPLIED  BY  THE  ACTUAL  CLAIMS-PAYING  CAPACITY
 AVAILABLE FOR THAT CONTRACT YEAR.
   (B)  THEREAFTER, ESTABLISH, BASED ON REIMBURSABLE LOSSES, THE PRORATED
 REIMBURSEMENT LEVEL AT THE HIGHEST LEVEL FOR WHICH  ANY  REMAINING  FUND
 BALANCE OR BOND PROCEEDS ARE SUFFICIENT.
   (E)  THE CONTRACT SHALL PROVIDE THAT IF AN INSURER DEMONSTRATES TO THE
 AUTHORITY THAT IT IS LIKELY  TO  QUALIFY  FOR  REIMBURSEMENT  UNDER  THE
 CONTRACT,  AND  DEMONSTRATES TO THE AUTHORITY THAT THE IMMEDIATE RECEIPT
 OF MONEYS IS LIKELY TO PREVENT THE INSURER FROM BECOMING INSOLVENT,  THE
 AUTHORITY  SHALL  ADVANCE  TO THE INSURER, AT MARKET INTEREST RATES, THE
 AMOUNTS NECESSARY TO MAINTAIN THE SOLVENCY OF THE INSURER, UP  TO  FIFTY
 PERCENT  OF THE AUTHORITY'S ESTIMATE OF THE REIMBURSEMENT DUE THE INSUR-
 A. 9231                             8
 
 ER. THE INSURER'S REIMBURSEMENT SHALL BE REDUCED BY AN AMOUNT  EQUAL  TO
 THE AMOUNT OF THE ADVANCE AND INTEREST THEREON.
   (F)  THE CONTRACT SHALL PROVIDE THAT IN THE EVENT OF THE INSOLVENCY OF
 AN INSURER, THE FUND SHALL PAY DIRECTLY TO THE PROPERTY/CASUALTY  INSUR-
 ANCE  SECURITY  FUND  PROVIDED FOR IN SECTION SEVEN THOUSAND SIX HUNDRED
 ONE OF THIS CHAPTER FOR THE BENEFIT OF THE  INSURER'S  POLICYHOLDERS  IN
 THIS  STATE  THE NET AMOUNT OF REIMBURSEMENT MONEYS OWED TO THE INSURER.
 AS USED IN THIS SUBSECTION, THE "NET AMOUNT OF ALL REIMBURSEMENT MONEYS"
 MEANS THAT AMOUNT WHICH REMAINS AFTER REIMBURSEMENT FOR  PRELIMINARY  OR
 DUPLICATE  PAYMENTS OWED TO PRIVATE REINSURERS OR OTHER INURING REINSUR-
 ANCE PAYMENTS TO PRIVATE REINSURERS THAT SATISFY STATUTORY OR CONTRACTU-
 AL OBLIGATIONS OF THE INSOLVENT INSURER ATTRIBUTABLE TO  COVERED  EVENTS
 TO  SUCH  REINSURERS.  SUCH  PRIVATE  REINSURERS  SHALL BE REIMBURSED OR
 OTHERWISE PAID PRIOR TO PAYMENT TO THE PROPERTY/CASUALTY INSURANCE SECU-
 RITY FUND PROVIDED FOR IN SECTION SEVEN THOUSAND SIX HUNDRED ONE OF THIS
 CHAPTER, NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY. THE
 GUARANTY ASSOCIATION SHALL PAY ALL  CLAIMS  UP  TO  THE  MAXIMUM  AMOUNT
 PERMITTED  BY  ARTICLE  SEVENTY-SIX  OF  THIS  CHAPTER;  THEREAFTER, ANY
 REMAINING MONEYS SHALL BE PAID PRO RATA TO CLAIMS NOT FULLY SATISFIED.
   (G) THE AUTHORITY SHALL AFTER  CONSULTATION  WITH  THE  SUPERINTENDENT
 ADOPT  THE INITIAL CONTRACT FORM NO LATER THAN DECEMBER FIRST, TWO THOU-
 SAND TWENTY-SIX AND MUST ADOPT THE INITIAL PREMIUM FORMULA NO LATER THAN
 JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SEVEN.    INITIAL   REIMBURSEMENT
 CONTRACTS UNDER THIS ARTICLE MUST BE ENTERED INTO NO EARLIER THAN FEBRU-
 ARY  FIRST,  TWO  THOUSAND TWENTY-SEVEN AND NO LATER THAN MAY FIRST, TWO
 THOUSAND TWENTY-SEVEN.
   § 9204. REIMBURSEMENT PREMIUMS. (A) EACH REIMBURSEMENT CONTRACT  SHALL
 REQUIRE THE INSURER TO ANNUALLY PAY TO THE FUND AN ACTUARIALLY INDICATED
 PREMIUM FOR THE REIMBURSEMENT PROMISED.
   (B)  THE  AUTHORITY,  IN  CONSULTATION  WITH THE SUPERINTENDENT, SHALL
 SELECT AN INDEPENDENT CONSULTANT TO DEVELOP A FORMULA TO  DETERMINE  THE
 ACTUARIALLY INDICATED PREMIUM TO BE PAID TO THE FUND.  THE FORMULA SHALL
 SPECIFY,  FOR  EACH  ZIP  CODE  OR  OTHER LIMITED GEOGRAPHICAL AREA, THE
 AMOUNT TO BE PAID BY AN INSURER FOR EACH ONE THOUSAND DOLLARS OF INSURED
 VALUE UNDER COVERED POLICIES IN THAT ZIP CODE OR OTHER AREA.  IN  ESTAB-
 LISHING  PREMIUMS,  THE  AUTHORITY, IN CONSULTATION WITH THE SUPERINTEN-
 DENT, SHALL CONSIDER THE COVERAGE LEVEL ELECTED UNDER SUBSECTION (B)  OF
 SECTION  NINE THOUSAND TWO HUNDRED THREE OF THIS ARTICLE AND ANY FACTORS
 THAT TEND TO ENHANCE THE ACTUARIAL SOPHISTICATION OF RATEMAKING FOR  THE
 FUND,  INCLUDING  DEDUCTIBLES,  TYPE  OF  CONSTRUCTION, TYPE OF COVERAGE
 PROVIDED, RELATIVE CONCENTRATION OF RISKS, AND OTHER SUCH FACTORS DEEMED
 TO BE APPROPRIATE.  THE FORMULA MAY PROVIDE FOR A PROCEDURE TO DETERMINE
 THE PREMIUMS TO BE PAID BY NEW INSURERS THAT BEGIN WRITING COVERED POLI-
 CIES AFTER THE BEGINNING OF A CONTRACT YEAR, TAKING  INTO  CONSIDERATION
 WHEN THE INSURER STARTS WRITING COVERED POLICIES, THE POTENTIAL EXPOSURE
 OF  THE  INSURER, THE POTENTIAL EXPOSURE OF THE FUND, THE ADMINISTRATIVE
 COSTS TO THE INSURER AND TO THE  FUND,  AND  ANY  OTHER  FACTORS  DEEMED
 APPROPRIATE.   THE AUTHORITY, AFTER CONSULTATION WITH THE SUPERINTENDENT
 MAY, AT ANY TIME, REVISE THE FORMULA PURSUANT TO THE PROCEDURE  PROVIDED
 IN THIS SUBSECTION.
   (C) NO LATER THAN AUGUST FIRST OF EACH YEAR, EACH INSURER SHALL NOTIFY
 THE AUTHORITY AND THE SUPERINTENDENT OF ITS INSURED VALUES UNDER COVERED
 POLICIES BY ZIP CODE OR OTHER LIMITED GEOGRAPHICAL AREA, AS OF MAY THIR-
 TIETH  OF  THAT  YEAR.  ON THE BASIS OF THESE REPORTS, THE AUTHORITY, IN
 CONSULTATION WITH THE SUPERINTENDENT, SHALL CALCULATE  THE  PREMIUM  DUE
 FROM  THE  INSURER, BASED ON THE FORMULA ADOPTED UNDER SUBSECTION (B) OF
 A. 9231                             9
 
 THIS SECTION. THE INSURER SHALL PAY THE REQUIRED ANNUAL PREMIUM PURSUANT
 TO A PERIODIC PAYMENT PLAN SPECIFIED  IN  THE  CONTRACT.  THE  AUTHORITY
 SHALL  PROVIDE FOR PAYMENT OF REIMBURSEMENT PREMIUM IN PERIODIC INSTALL-
 MENTS  AND  FOR  THE  ADJUSTMENT  OF  PROVISIONAL  PREMIUM  INSTALLMENTS
 COLLECTED PRIOR TO SUBMISSION OF THE EXPOSURE REPORT TO REFLECT DATA  IN
 THE EXPOSURE REPORT.
   (D)  ALL PREMIUMS PAID TO THE FUND UNDER REIMBURSEMENT CONTRACTS SHALL
 BE TREATED AS PREMIUM FOR APPROVED REINSURANCE FOR  ALL  ACCOUNTING  AND
 REGULATORY PURPOSES.
   (E)  IN ORDER TO PROVIDE START-UP MONEYS FOR THE ADMINISTRATION OF THE
 FUND, EACH INSURER SUBJECT TO THIS SECTION SHALL  PAY  TO  THE  FUND  AN
 ADVANCE  PREMIUM  PAYMENT OF ONE THOUSAND DOLLARS NO LATER THAN NOVEMBER
 THIRTIETH, TWO THOUSAND TWENTY-SIX.  THE  AUTHORITY  SHALL  COLLECT  THE
 ADVANCE PREMIUM PAYMENTS REQUIRED BY THIS SUBSECTION.  THE INSURER SHALL
 RECEIVE A CREDIT AGAINST FUTURE PREMIUMS FOR THE ADVANCE PAYMENT.
   § 9205. REVENUE BONDS.  (A) UPON THE OCCURRENCE OF A COVERED EVENT AND
 A  DETERMINATION THAT THE MONEYS IN THE FUND ARE OR WILL BE INSUFFICIENT
 TO PAY  REIMBURSEMENT  AT  THE  LEVELS  PROMISED  IN  THE  REIMBURSEMENT
 CONTRACTS,  THE  AUTHORITY  MAY ENTER INTO AGREEMENTS WITH LOCAL GOVERN-
 MENTS FOR THE ISSUANCE OF REVENUE BONDS FOR THE BENEFIT OF THE  FUND  OR
 ISSUE  REVENUE BONDS IN THE AUTHORITY'S OWN RIGHT. THE TERM OF THE BONDS
 SHALL NOT EXCEED THIRTY YEARS. THE AUTHORITY  SHALL  PLEDGE  ALL  FUTURE
 REVENUES  UNDER  SECTION  NINE THOUSAND TWO HUNDRED FOUR OF THIS ARTICLE
 AND UNDER SUBSECTION (C) OF THIS SECTION, OR A LESSER  PORTION  OF  SUCH
 REVENUES  SUFFICIENT  TO  RAISE  MONEYS  IN  AN  AMOUNT  THAT  WILL  PAY
 REIMBURSEMENT AT THE LEVELS PROMISED IN THE REIMBURSEMENT CONTRACTS,  TO
 THE  RETIREMENT  OF  SUCH  BONDS. THE AUTHORITY MAY ALSO ENTER INTO SUCH
 AGREEMENTS IN THE ABSENCE OF A COVERED EVENT UPON A  DETERMINATION  THAT
 SUCH  ACTION WOULD MAXIMIZE THE ABILITY OF THE FUND TO MEET FUTURE OBLI-
 GATIONS.
   (B) ANY LOCAL GOVERNMENT MAY ISSUE BONDS PURSUANT  TO  THE  APPLICABLE
 PROVISIONS OF THE STATE FINANCE LAW FROM TIME TO TIME TO FUND AN ASSIST-
 ANCE  PROGRAM,  IN CONJUNCTION WITH THE FUND, FOR THE PURPOSE OF MEETING
 THE REIMBURSEMENT OBLIGATIONS OF THE FUND. THE ISSUANCE OF SUCH BONDS IS
 FOR THE PUBLIC PURPOSE OF ENSURING THAT POLICYHOLDERS LOCATED WITHIN THE
 LOCAL GOVERNMENT ARE ABLE TO RECOVER UNDER  RESIDENTIAL  AND  COMMERCIAL
 PROPERTY/CASUALTY  INSURANCE  POLICIES  AFTER  A  COVERED EVENT. REVENUE
 BONDS SHALL NOT BE ISSUED UNTIL VALIDATED  PURSUANT  TO  THE  APPLICABLE
 PROVISIONS  OF  THE  STATE FINANCE LAW. THE LOCAL GOVERNMENT SHALL ENTER
 INTO SUCH CONTRACTS WITH THE FUND AS ARE  NECESSARY  TO  CARRY  OUT  THE
 PROVISIONS  OF  THIS SECTION.  ANY BONDS ISSUED UNDER THIS SECTION SHALL
 BE PAYABLE FROM AND SECURED BY MONEYS RECEIVED BY THE FUND UNDER SECTION
 NINE THOUSAND TWO HUNDRED FOUR OF THIS ARTICLE, AND ASSIGNED AND PLEDGED
 TO OR ON BEHALF OF THE LOCAL GOVERNMENT FOR THE BENEFIT OF  THE  HOLDERS
 OF  SUCH  BONDS.    THE FUNDS, CREDIT, PROPERTY, AND TAXING POWER OF THE
 STATE OR OF THE LOCAL GOVERNMENT SHALL NOT BE PLEDGED FOR THE PAYMENT OF
 SUCH BONDS.
   (C) IF THE AUTHORITY,  AFTER  CONSULTATION  WITH  THE  SUPERINTENDENT,
 DETERMINES  THAT  THE AMOUNT OF REVENUE PRODUCED UNDER SUBSECTION (A) OF
 THIS SECTION  IS  INSUFFICIENT  TO  FUND  THE  OBLIGATIONS,  COSTS,  AND
 EXPENSES OF THE FUND, INCLUDING REPAYMENT OF REVENUE BONDS, THE AUTHORI-
 TY MAY LEVY AN EMERGENCY ASSESSMENT ON EACH INSURER WRITING PROPERTY AND
 CASUALTY  BUSINESS IN THIS STATE OR A PORTION OF THIS STATE FOR RESIDEN-
 TIAL AND COMMERCIAL PROPERTIES.  PURSUANT TO THE  EMERGENCY  ASSESSMENT,
 EACH  SUCH  INSURER  SHALL PAY TO THE FUND BY JULY FIRST OF EACH YEAR AN
 AMOUNT SET BY THE AUTHORITY NOT  EXCEEDING  TWO  PERCENT  OF  ITS  GROSS
 A. 9231                            10
 
 DIRECT WRITTEN PREMIUM FOR THE PRIOR YEAR FROM ALL PROPERTY AND CASUALTY
 BUSINESS  IN  THIS STATE OR FOR A DESIGNATED REGION OF THIS STATE EXCEPT
 FOR WORKERS' COMPENSATION, EXCEPT THAT, IF THE GOVERNOR HAS  DECLARED  A
 STATE OF EMERGENCY UNDER THIS ARTICLE DUE TO THE OCCURRENCE OF A COVERED
 EVENT,  THE  AMOUNT  OF THE ASSESSMENT MAY BE INCREASED TO AN AMOUNT NOT
 EXCEEDING FOUR PERCENT OF SUCH  PREMIUM  PER  COVERED  EVENT.  UNDER  NO
 CIRCUMSTANCE  SHALL THE AGGREGATE ASSESSMENT FOR MORE THAN THREE COVERED
 EVENTS IN ONE  YEAR  BE  MORE  THAN  TEN  PERCENT.    AS  USED  IN  THIS
 SUBSECTION, THE TERM "PROPERTY AND CASUALTY BUSINESS" INCLUDES ALL LINES
 OF  BUSINESS  IDENTIFIED  ON THE FORM PROVIDED BY THE SUPERINTENDENT, IN
 THE ANNUAL STATEMENT REQUIRED BY THIS  ARTICLE  AND  ANY  RULES  ADOPTED
 UNDER  THIS ARTICLE.  THE ANNUAL ASSESSMENTS UNDER THIS SUBSECTION SHALL
 CONTINUE AS LONG AS THE REVENUE BONDS ISSUED WITH RESPECT TO  WHICH  THE
 ASSESSMENT  WAS  IMPOSED  ARE OUTSTANDING, UNLESS ADEQUATE PROVISION HAS
 BEEN MADE FOR THE PAYMENT  OF  SUCH  BONDS  PURSUANT  TO  THE  DOCUMENTS
 AUTHORIZING  ISSUANCE  OF THE BONDS. AN INSURER SHALL NOT AT ANY TIME BE
 SUBJECT TO AGGREGATE ANNUAL ASSESSMENTS UNDER THIS  SUBSECTION  OF  MORE
 THAN TWO PERCENT OF PREMIUM, EXCEPT THAT IN THE CASE OF A DECLARED EMER-
 GENCY,  AN  INSURER SHALL NOT AT ANY TIME BE SUBJECT TO AGGREGATE ANNUAL
 ASSESSMENTS UNDER THIS SUBSECTION OF MORE  THAN  FOUR  PERCENT  FOR  ONE
 COVERED  EVENT,  NOR  MORE THAN TEN PERCENT OF PREMIUM FOR THREE OR MORE
 COVERED EVENTS THAT OCCUR IN ONE YEAR.  ANY RATE FILING OR PORTION OF  A
 RATE  FILING  REFLECTING  A  RATE  CHANGE  ATTRIBUTABLE  ENTIRELY TO THE
 ASSESSMENT LEVIED UNDER THIS SUBSECTION SHALL BE  DEEMED  APPROVED  WHEN
 MADE,  SUBJECT  TO  THE AUTHORITY OF THE DEPARTMENT TO REQUIRE ACTUARIAL
 JUSTIFICATION AS TO THE ADEQUACY OF ANY RATE AT ANY TIME.  IF  THE  RATE
 FILING  REFLECTS ONLY A RATE CHANGE ATTRIBUTABLE TO THE ASSESSMENT UNDER
 THIS SUBSECTION, THE FILING MAY CONSIST OF A CERTIFICATION SO STATING.
   § 9206. ADDITIONAL POWERS AND DUTIES. (A) THE AUTHORITY, AFTER CONSUL-
 TATION  WITH  THE  SUPERINTENDENT  MAY:  (1)  PROCURE  REINSURANCE  FROM
 REINSURERS  FOR  THE PURPOSE OF MAXIMIZING THE CAPACITY OF THE FUND, AND
 (2) PROCURE AND/OR ISSUE CATASTROPHE NOTES, BONDS, OPTIONS, SWAPS,  RISK
 FUTURES  OR  OTHER FINANCIAL INSTRUMENTS TO MAXIMIZE THE CAPACITY OF THE
 FUND.
   (B) IN ADDITION TO BORROWING UNDER THIS  ARTICLE,  THE  AUTHORITY  MAY
 ALSO  BORROW  FROM, OR ENTER INTO OTHER FINANCING ARRANGEMENTS WITH, ANY
 MARKET SOURCES AT PREVAILING INTEREST RATES.
   (C) THE AUTHORITY, AFTER CONSULTATION WITH THE  SUPERINTENDENT,  SHALL
 DEVELOP NEW FINANCING MECHANISMS OR INSTRUMENTS TO MAXIMIZE THE CAPACITY
 OF  THE  FUND.  SUCH  MECHANISMS  OR  INSTRUMENTS SHOULD ATTRACT PRIVATE
 INVESTMENT FROM INSURERS AND REINSURERS THAT WISH TO FULLY OR  PARTIALLY
 SHELTER  THEIR  CAPITAL FROM INCOME TAXATION AND INCREASE THE ABILITY OF
 INSURERS, BANKS, REINSURERS AND OTHER FINANCIAL  INSTITUTIONS  TO  PLACE
 CAPITAL  WITH THE FUND AND RECEIVE COMMENSURATE FEDERAL AND STATE INCOME
 AND FRANCHISE TAX DEDUCTIONS, CREDITS OR DEFERRALS FOR ITS CONTRIBUTORS.
   (D) IN EACH FISCAL YEAR AFTER APRIL FIRST, TWO  THOUSAND  THIRTY,  THE
 AUTHORITY  SHALL  APPROPRIATE FROM THE INVESTMENT INCOME OF THE FUND THE
 SUM OF TEN MILLION DOLLARS FOR THE  PURPOSE  OF  PROVIDING  FUNDING  FOR
 STATE  AGENCIES, LOCAL GOVERNMENTS, OTHER MUNICIPAL CORPORATIONS, PUBLIC
 AND PRIVATE EDUCATIONAL INSTITUTIONS,  AND  NONPROFIT  ORGANIZATIONS  TO
 SUPPORT  PROGRAMS  INTENDED  TO  IMPROVE  NATURAL DISASTER PREPAREDNESS,
 REDUCE POTENTIAL LOSSES FROM COVERED EVENTS, PROVIDE RESEARCH INTO MEANS
 TO REDUCE SUCH LOSSES, EDUCATE OR INFORM  THE  PUBLIC  AS  TO  MEANS  TO
 REDUCE  LOSSES FROM COVERED EVENTS, ASSIST THE PUBLIC IN DETERMINING THE
 APPROPRIATENESS OF PARTICULAR UPGRADES TO STRUCTURES OR IN THE FINANCING
 OF SUCH UPGRADES, INCREASE COMMUNICATIONS CAPABILITIES AMONG  LOCAL  LAW
 A. 9231                            11
 
 ENFORCEMENT, STATE MILITIA, THE ARMED FORCES OF THE UNITED STATES, FIRST
 RESPONDERS, INSURANCE CARRIERS AND ADJUSTERS AND COMMON CARRIERS SO THAT
 SUCH  INDIVIDUALS  CAN  EASILY  COMMUNICATE WITHIN EACH ORGANIZATION AND
 WITH  OTHER  ORGANIZATIONS  DURING  AND  IMMEDIATELY FOLLOWING A COVERED
 EVENT, OR PROTECT LOCAL INFRASTRUCTURE  FROM  POTENTIAL  DAMAGE  FROM  A
 COVERED EVENT.  IN ADDITION, SUCH MONIES MAY BE USED TO INCREASE PARTIC-
 IPATING  INSURER  ABILITY TO SHARE AND RAPIDLY SHIFT CLAIMS ADJUSTERS TO
 NATURAL DISASTER RAVAGED AREAS SO THAT ACCURATE CLAIMS LOSS  INFORMATION
 CAN BE GATHERED AND INDIVIDUAL LOSS CLAIMS PROCESSED AND PAID AS SOON AS
 PRACTICABLE.    MONEYS  SHALL FIRST BE AVAILABLE FOR APPROPRIATION UNDER
 THIS SUBSECTION IN FISCAL YEAR TWO THOUSAND THIRTY.   THE MONEYS  SPECI-
 FIED  IN  THIS SUBSECTION SHALL NOT BE AVAILABLE FOR APPROPRIATION UNDER
 THIS SUBSECTION IF THE AUTHORITY FINDS THAT AN APPROPRIATION OF  INVEST-
 MENT  INCOME  FROM  THE FUND WOULD JEOPARDIZE THE ACTUARIAL SOUNDNESS OF
 THE FUND.
   (E) THE AUTHORITY MAY ALLOW INSURERS TO COMPLY WITH REPORTING REQUIRE-
 MENTS AND REPORTING FORMAT REQUIREMENTS  USING  ALTERNATIVE  METHODS  OF
 REPORTING  IF  THE  PROPER  ADMINISTRATION  OF  THE  FUND IS NOT THEREBY
 IMPAIRED AND IF THE ALTERNATIVE METHODS PRODUCE DATA WHICH IS CONSISTENT
 FOR THE PURPOSES OF THIS ARTICLE.
   (F) IN ORDER TO ASSURE  THE  EQUITABLE  OPERATION  OF  THE  FUND,  THE
 AUTHORITY  MAY  IMPOSE  A  REASONABLE FEE ON AN INSURER TO RECOVER COSTS
 INVOLVED IN REPROCESSING INACCURATE, INCOMPLETE,  OR  UNTIMELY  EXPOSURE
 DATA SUBMITTED BY THE INSURER.
   §  9206-A.  NOTES  AND  BONDS  OF THE AUTHORITY. (A) (1) THE AUTHORITY
 SHALL HAVE POWER AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS
 NEGOTIABLE BONDS AND NOTES IN SUCH PRINCIPAL AMOUNT AS, IN  THE  OPINION
 OF  THE  AUTHORITY,  SHALL  BE NECESSARY TO PROVIDE SUFFICIENT FUNDS FOR
 ACHIEVING ITS PURPOSES, INCLUDING THE PAYMENT OF INTEREST ON  BONDS  AND
 NOTES  OF THE AUTHORITY AND THE ESTABLISHMENT OF RESERVES TO SECURE SUCH
 BONDS AND NOTES.
   (2) THE AUTHORITY SHALL HAVE  POWER,  FROM  TIME  TO  TIME,  TO  ISSUE
 RENEWAL NOTES, TO ISSUE BONDS TO PAY NOTES AND WHENEVER IT DEEMS REFUND-
 ING EXPEDIENT, TO REFUND ANY BONDS BY THE ISSUANCE OF NEW BONDS, WHETHER
 THE  BONDS  TO  BE REFUNDED HAVE OR HAVE NOT MATURED, AND TO ISSUE BONDS
 PARTLY TO REFUND  BONDS  THEN  OUTSTANDING  AND  PARTLY  FOR  ANY  OTHER
 PURPOSE.  THE  REFUNDING BONDS SHALL BE SOLD AND THE PROCEEDS APPLIED TO
 THE PURCHASE, REDEMPTION OR PAYMENT OF THE BONDS TO BE REFUNDED.
   (3) EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED  BY  THE  AUTHORITY,
 EVERY  ISSUE  OF  ITS NOTES OR BONDS SHALL BE GENERAL OBLIGATIONS OF THE
 AUTHORITY PAYABLE OUT OF  ANY  REVENUES  OR  MONEYS  OF  THE  AUTHORITY,
 SUBJECT  ONLY  TO ANY AGREEMENTS WITH THE HOLDERS OF PARTICULAR NOTES OR
 BONDS PLEDGING ANY PARTICULAR RECEIPTS OR REVENUES.
   (B) THE NOTES AND BONDS SHALL BE AUTHORIZED BY RESOLUTION APPROVED  BY
 NOT  LESS THAN A TWO-THIRDS MAJORITY VOTE OF THE WHOLE NUMBER OF MEMBERS
 OF THE AUTHORITY THEN IN OFFICE, EXCEPT THAT IN THE EVENT OF A TIE  VOTE
 THE  CHAIR  SHALL  CAST ONE ADDITIONAL VOTE.   THE NOTES AND BONDS SHALL
 BEAR INTEREST AT SUCH RATE OR RATES, BE IN  SUCH  DENOMINATIONS,  BE  IN
 SUCH  FORM,  EITHER COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIVI-
 LEGES, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN SUCH MEDIUM OF PAYMENT,
 AT SUCH PLACE OR PLACES AND BE SUBJECT TO SUCH TERMS  OF  REDEMPTION  AS
 SUCH  RESOLUTION  OR RESOLUTIONS MAY PROVIDE. THE NOTES AND BONDS OF THE
 AUTHORITY MAY BE SOLD BY THE AUTHORITY, AT PUBLIC OR  PRIVATE  SALE,  AT
 SUCH PRICE OR PRICES AS THE AUTHORITY SHALL DETERMINE. NO NOTES OR BONDS
 OF  THE AUTHORITY SHALL BE SOLD BY THE AUTHORITY AT PRIVATE SALE, HOWEV-
 ER, UNLESS SUCH SALE AND THE TERMS THEREOF HAVE BEEN APPROVED IN WRITING
 A. 9231                            12
 
 BY (1) THE COMPTROLLER, WHERE SUCH SALE IS NOT TO  THE  COMPTROLLER,  OR
 (2) THE DIRECTOR OF THE BUDGET, WHERE SUCH SALE IS TO THE COMPTROLLER.
   (C)  ANY  RESOLUTION  OR RESOLUTIONS AUTHORIZING ANY NOTES OR BONDS OR
 ANY ISSUE THEREOF MAY CONTAIN PROVISIONS, WHICH SHALL BE A PART  OF  THE
 CONTRACT WITH THE HOLDERS THEREOF, AS TO:
   (1)  PLEDGING  ALL OR ANY PART OF THE PREMIUMS, CHARGES AND OTHER FEES
 MADE OR RECEIVED BY THE AUTHORITY, AND OTHER MONEY  RECEIVED  OR  TO  BE
 RECEIVED,  TO  SECURE  THE PAYMENT OF THE NOTES OR BONDS OR OF ANY ISSUE
 THEREOF, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS OR  NOTEHOLDERS  AS
 MAY THEN EXIST;
   (2)  PLEDGING ALL OR ANY PART OF THE ASSETS OF THE AUTHORITY TO SECURE
 THE PAYMENT OF THE NOTES OR BONDS OR OF ANY ISSUE  OF  NOTES  OR  BONDS,
 SUBJECT  TO  SUCH AGREEMENTS WITH NOTEHOLDERS OR BONDHOLDERS AS MAY THEN
 EXIST;
   (3) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE  REGULATION
 AND DISPOSITION THEREOF; AND
   (4)  ANY  OTHER  MATTERS, OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY
 WAY AFFECT THE SECURITY OR PROTECTION OF THE NOTES OR BONDS.
   § 9206-B.  AGREEMENT OF THE STATE. THE STATE DOES HEREBY PLEDGE TO AND
 AGREE WITH THE HOLDERS OF ANY NOTES OR BONDS OR LEASE OBLIGATIONS ISSUED
 OR INCURRED UNDER THIS ARTICLE, THAT THE STATE WILL NOT LIMIT  OR  ALTER
 THE  DENIAL OF AUTHORITY UNDER THIS ARTICLE, OR THE RIGHTS HEREBY VESTED
 IN THE AUTHORITY TO FULFILL THE TERMS OF ANY AGREEMENTS  MADE  WITH  THE
 HOLDERS  THEREOF,  OR  IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF SUCH
 HOLDERS UNTIL SUCH NOTES OR BONDS OR LEASE  OBLIGATIONS,  TOGETHER  WITH
 THE INTEREST THEREON, WITH INTEREST ON ANY UNPAID INSTALLMENTS OF INTER-
 EST,  AND  ALL  COSTS  AND EXPENSES FOR WHICH THE AUTHORITY IS LIABLE IN
 CONNECTION WITH ANY ACTION OR PROCEEDING BY OR ON BEHALF OF  SUCH  HOLD-
 ERS,  ARE  FULLY  MET  AND  DISCHARGED. THE AUTHORITY SHALL INCLUDE THIS
 PLEDGE AND AGREEMENT OF THE STATE IN ANY AGREEMENT WITH THE  HOLDERS  OF
 SUCH NOTES OR BONDS OR LEASE OBLIGATIONS.
   § 9206-C.  NOTES AND BONDS AS LEGAL INVESTMENT. THE NOTES AND BONDS OF
 THE  AUTHORITY  ARE  HEREBY MADE SECURITIES IN WHICH ALL PUBLIC OFFICERS
 AND BODIES OF THE STATE AND ALL MUNICIPALITIES  AND  POLITICAL  SUBDIVI-
 SIONS, ALL INSURANCE COMPANIES AND ASSOCIATIONS AND OTHER PERSONS CARRY-
 ING  ON  AN  INSURANCE  BUSINESS,  ALL  BANKS, BANKERS, TRUST COMPANIES,
 SAVINGS BANKS AND SAVINGS ASSOCIATIONS, INCLUDING SAVINGS AND LOAN ASSO-
 CIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVESTMENT COMPANIES AND OTHER
 PERSONS CARRYING ON A BANKING BUSINESS, ALL  ADMINISTRATORS,  GUARDIANS,
 EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES, AND ALL OTHER PERSONS WHATSO-
 EVER  WHO  ARE NOW OR WHO MAY HEREAFTER BE AUTHORIZED TO INVEST IN BONDS
 OR OTHER OBLIGATIONS OF THE STATE, MAY PROPERLY AND LEGALLY INVEST FUNDS
 INCLUDING CAPITAL IN THEIR CONTROL OR BELONGING TO THEM.   NOTWITHSTAND-
 ING  ANY  OTHER  PROVISIONS  OF LAW, THE BONDS OF THE AUTHORITY ARE ALSO
 HEREBY MADE SECURITIES WHICH MAY BE DEPOSITED WITH AND SHALL BE RECEIVED
 BY ALL PUBLIC OFFICERS AND BODIES OF THIS STATE AND  ALL  MUNICIPALITIES
 AND  POLITICAL  SUBDIVISIONS  FOR  ANY  PURPOSE FOR WHICH THE DEPOSIT OF
 BONDS OR OTHER OBLIGATIONS OF THE STATE  IS  NOW  OR  MAY  HEREAFTER  BE
 AUTHORIZED.
   § 9207. ADVISORY COUNCIL. (A) AN ADVISORY COUNCIL CONSISTING OF TWENTY
 MEMBERS  SHALL  BE ESTABLISHED TO PROVIDE THE AUTHORITY WITH INFORMATION
 AND ADVICE IN CONNECTION WITH ITS DUTIES.  THE MEMBERS SHALL BE SELECTED
 FROM THE FOLLOWING CATEGORIES:  REPRESENTATIVES WITH EXPERTISE IN  ACTU-
 ARIAL,  METEOROLOGY,  LAND-USE PLANNING AND ENGINEERING; AND A REPRESEN-
 TATIVE OF INSURERS, INSURANCE AGENTS, REINSURERS, LAW ENFORCEMENT, FIRE-
 FIGHTERS, THE STATE EMERGENCY MANAGEMENT OFFICE, THE  DIVISION  OF  CODE
 A. 9231                            13
 
 ENFORCEMENT  OF THE DEPARTMENT OF STATE, THE SUPERINTENDENT, THE DEPART-
 MENT OF TRANSPORTATION, THE DEPARTMENT  OF  TAXATION  AND  FINANCE,  THE
 DEPARTMENT  OF  AUDIT AND CONTROL AND CONSUMERS WHO SHALL ALSO BE REPRE-
 SENTATIVES  OF  OTHER AFFECTED PROFESSIONS AND INDUSTRIES. EIGHT MEMBERS
 SHALL BE APPOINTED BY THE GOVERNOR, THREE BY THE TEMPORARY PRESIDENT  OF
 THE  SENATE,  THREE  BY THE SPEAKER OF THE ASSEMBLY, AND ONE EACH BY THE
 MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY.
   (B) THE ADVISORY COUNCIL SHALL, IN  COOPERATION  WITH  STATE  AGENCIES
 SUCH  AS  THE DEPARTMENT OF STATE, THE DEPARTMENT OF TRANSPORTATION, THE
 DEPARTMENT OF HEALTH, THE DEPARTMENT, AND THE STATE EMERGENCY MANAGEMENT
 OFFICE, DEVELOP PREVENTION AND MITIGATION STANDARDS TO  MINIMIZE  POTEN-
 TIAL  DAMAGE  THAT  MAY  OCCUR  FROM A NATURAL DISASTER BEFORE A COVERED
 EVENT AND MINIMIZE ACTUAL DAMAGE THAT MAY OCCUR DURING A  COVERED  EVENT
 AND  IMMEDIATELY  AFTER  SUCH  AN  EVENT. SUCH PREVENTION AND MITIGATION
 STANDARDS SHALL INCLUDE:
   (1) A REVIEW AND UPDATE OF THE STATE BUILDING AND FIRE PREVENTION CODE
 AND MUNICIPAL LAND-USE PLANS  TO  ENSURE  THAT  BUILDING  STANDARDS  AND
 MUNICIPAL  ZONING  AND SUBDIVISION REGULATIONS ARE SATISFACTORY TO MITI-
 GATE DAMAGE FROM A  CATASTROPHIC  EVENT.  FURTHER,  SUCH  STANDARDS  MAY
 CONTEMPLATE  THE  USE OF APPROPRIATE BUILDING MATERIALS AND CONSTRUCTION
 METHODS TO MITIGATE POTENTIAL DAMAGE;
   (2) SUGGESTED CHANGES IN PROCEDURES TO ENSURE THAT ALL BUILDING  CODES
 AND MUNICIPAL LAND-USE PLANS ARE ENFORCED;
   (3)  SUGGESTIONS TO MINIMIZE THE LOSS OF LIFE VIA EXPEDITED EVACUATION
 PROCEDURES FOR  ALL  AFFECTED  RESIDENTS,  PARTICULARLY  THOSE  WHO  ARE
 ECONOMICALLY, PHYSICALLY OR MENTALLY  UNABLE TO GET OUT OF HARMS WAY;
   (4) SUGGESTIONS AND PROCEDURES TO ACCELERATE THE RECOVERY AND REBUILD-
 ING PROCESS;
   (5) SUGGESTIONS AND PROCEDURES TO ASSIST ADVERSELY AFFECTED BUSINESSES
 SO  THAT  SUCH  BUSINESSES  CAN QUICKLY COMMENCE OPERATIONS AND MINIMIZE
 SHORT AND LONG TERM JOB LOSSES; AND
   (6) A STUDY OF AND SUGGESTIONS ON THE DEVELOPMENT OF ADDITIONAL  ACTU-
 ARIALLY  APPROPRIATE  INSURANCE  PREMIUM  DISCOUNTS  TO  BE  OFFERED  TO
 INSUREDS TO ENCOURAGE RESIDENTS, BUSINESSES AND MUNICIPALITIES TO  BUILD
 OR RETROFIT THEIR HOMES, BUSINESSES AND MUNICIPAL FACILITIES IN A WAY TO
 MINIMIZE DAMAGE.
   THE ADVISORY COUNCIL SHALL REPORT ITS INITIAL FINDINGS TO THE CHAIR OF
 THE AUTHORITY, THE GOVERNOR, THE SUPERINTENDENT, THE TEMPORARY PRESIDENT
 OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE
 SENATE AND THE MINORITY LEADER OF THE ASSEMBLY ON OR BEFORE JUNE  FIRST,
 TWO THOUSAND TWENTY-SEVEN, AND SHALL THEREAFTER ISSUE AND SUBMIT REPORTS
 ANNUALLY ON OR BEFORE JUNE FIRST.
   §  9208.  VIOLATIONS.  ANY  VIOLATION  OF THIS ARTICLE OR OF THE RULES
 ADOPTED UNDER THIS ARTICLE SHALL CONSTITUTE A VIOLATION OF THIS CHAPTER.
   § 9209. INTERNATIONAL, FEDERAL, STATE, REGIONAL OR  MULTISTATE  CATAS-
 TROPHE  FUNDS.  THE AUTHORITY, IN THE CONDUCT OF ITS BUSINESS AND OPERA-
 TION, SHALL ACTIVELY ATTEMPT TO INTEGRATE AND COORDINATE ITS  ACTIVITIES
 AND  OPERATIONS  WITH OTHER EXISTING OR NEWLY ESTABLISHED INTERNATIONAL,
 FEDERAL, STATE, REGIONAL OR MULTISTATE CATASTROPHE FUNDS OR PROGRAMS, OR
 OTHER REINSURANCE PROGRAMS THAT SERVE PURPOSES THAT ARE SIMILAR  TO  ALL
 OR  SOME  OF THE GOALS TO BE CARRIED OUT BY THE FUND ESTABLISHED BY THIS
 ARTICLE. THE SUPERINTENDENT SHALL PROMPTLY MAKE RECOMMENDATIONS  TO  THE
 AUTHORITY,  THE  GOVERNOR  AND  LEGISLATURE  ON METHODS TO ENCOURAGE THE
 INTEGRATION, CONSOLIDATION OR COORDINATION OF ACTIVITIES AND  OPERATIONS
 OF THE VARIOUS EXISTING OR NEWLY ESTABLISHED FEDERAL, STATE, REGIONAL OR
 MULTISTATE CATASTROPHE FUNDS OR OTHER REINSURANCE PROGRAMS. THE AUTHORI-
 A. 9231                            14
 
 TY,  UPON  THE APPROVAL OF THE LEGISLATURE, MAY INTEGRATE, COORDINATE OR
 TERMINATE THE FUND AND CONSOLIDATE SUCH FUND WITH OTHER OPERATING CATAS-
 TROPHE OR REINSURANCE FUNDS OR MERGE, TAKE OVER OR ACQUIRE OTHER ALREADY
 OPERATING  CATASTROPHE  OR REINSURANCE FUNDS TO CREATE A LARGER AND MORE
 DIVERSE CATASTROPHE FUND.
   THE AUTHORITY SHALL INVESTIGATE THE INTEGRATION  AND  COORDINATION  OF
 THE  PAYMENT  OF  PREMIUMS  FOR  THE  COVERAGE FROM CATASTROPHIC COVERED
 EVENTS AND THE TIMELY PAYMENT OF CLAIMS WITH OTHER EXISTING FEDERAL  AND
 STATE  INSURANCE  PROGRAMS SUCH AS THE NATIONAL FLOOD INSURANCE PROGRAM,
 PAYMENTS TO BE MADE BY THE  FEDERAL  EMERGENCY  MANAGEMENT  AGENCY,  AND
 STATE  SPONSORED  FAIR  PLANS  SUCH  AS  THE NEW YORK PROPERTY INSURANCE
 UNDERWRITING ASSOCIATION, AND STATE SPONSORED INSURANCE GUARANTEE FUNDS.
   § 9210. FUND ASSETS UPON TERMINATION. THE FUND AND THE DUTIES  OF  THE
 AUTHORITY  UNDER  THIS  ARTICLE  MAY BE TERMINATED ONLY BY LAW. UPON THE
 FULL OR PARTIAL TERMINATION OF THE OPERATION  OF  THE  FUND,  ALL  OR  A
 PORTION OF SUCH ASSETS OF THE FUND SHALL BE TRANSFERRED TO ANY SUCCESSOR
 FEDERAL  OR  MULTISTATE CATASTROPHE FUND OR THE PROPERTY/CASUALTY INSUR-
 ANCE SECURITY FUND.
   § 4.  The sum of ten million dollars ($10,000,000), or so much thereof
 as may be necessary, is hereby appropriated to the New York state catas-
 trophe fund out of any moneys in the state treasury in the general  fund
 to  the  credit of the state purposes account not otherwise appropriated
 for its expenses, including personal services,  maintenance  and  opera-
 tion, in carrying out the provisions of this act.
   § 5. This act shall take effect immediately.