NY State Senate Bill 2025-S7144

Senate Bill S7144

2025-2026 Legislative Session

Authorizes the New York convention center operating corporation to create a pure captive insurance company

download bill text pdf

Current Bill Status - In Senate Committee Insurance 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 01, 2025	referred to insurance

2025-S7144 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §7002, Ins L; amd §2564, Pub Auth L; amd §§1500 & 1502-b, Tax L

2025-S7144 (ACTIVE) - Summary

Authorizes the New York convention center operating corporation to establish a subsidiary for the purposes of forming a pure captive insurance company.

2025-S7144 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7144

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the insurance law, the public authorities law and the
tax law, in relation to authorizing the New York convention center oper-
ating corporation to create a pure captive insurance company

 
PURPOSE:

Authorizes the New York Convention Center Operating Corporation to
create a captive insurance company after applying to and being licensed
by the Department of Financial Services.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law by expanding the definition of
"industrial insured" to include the New York Convention Center Operating
Corporation.

Section 2 amends the public authorities law by requiring the New York

Convention Center Operating Corporation to complete and submit a feasi-
bility study to the Legislature and Executive to create a captive insur-
ance company, and prohibits the broker or consultant firm who conducts
the feasibility study from managing the resulting captive for a period
of no less than five years.

Section 3 amends the tax law by prohibiting the New York Convention
Center Operating Corporation from being included in the definition of
"insurance corporation."

Section 4 amends the tax law to add the New York Convention Center Oper-
ating Corporation to the list of entities exempt from paying the captive
insurance payments, fees, and assessments that are not currently applied
to industrial insured entities defined outside the scope of § 7002(e)(1)
and § 7002(e)(2) of insurance law.

Section 5 sets forth the effective date.

 
JUSTIFICATION:

This bill would authorize the New York Convention Center Operating
Corporation (Javits) to create a captive insurance company after apply-
ing to and being licensed by the Department of Financial Services.
Current insurance law requires an organization to meet the definition of
an "industrial insured" to apply to form a captive subsidiary.

Industrial insured is defined as (1) an entity whose net worth exceeds
one hundred million dollars, (2) an entity who is a member of a holding
company system whose net worth exceeds one hundred million dollars, (3)
a city with a population of one million or more, and (4) two specif-
ically named entities: the metropolitan transportation authority and the
power authority of new york. This bill expands the definition of indus-
trial insured to include Javits among the specifically named entities
that are authorized to form a captive insurance company after applying
to and being licensed by the Department of Financial Services.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S7144 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7144
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2025
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, the public authorities  law  and  the
   tax  law,  in  relation  to authorizing the New York convention center
   operating corporation to create a pure captive insurance company

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsections  (e) and (g) of section 7002 of the insurance
 law, as amended by chapter 193 of the laws of 2022, are amended to  read
 as follows:
   (e) "Industrial insured" means an insured:
   (1) whose net worth exceeds one hundred million dollars;
   (2)  who  is  a  member  of  a  holding company system whose net worth
 exceeds one hundred million dollars;
   (3) who is the metropolitan transportation authority and its statutory
 subsidiaries. When filing an application to form a pure  captive  insur-
 ance  company  the  metropolitan  transportation  authority shall submit
 written notice of such filing to the governor, the  temporary  president
 of the senate and the speaker of the assembly;
   (4) who is the power authority of the state of New York and any statu-
 tory  subsidiary  thereof.  When  filing  an  application to form a pure
 captive insurance company  the  power  authority  shall  submit  written
 notice  of  such  filing to the governor, the temporary president of the
 senate and the speaker of the assembly; [or]
   (5) WHO IS THE NEW YORK CONVENTION CENTER  OPERATING  CORPORATION,  OR
 ANY  STATUTORY SUBSIDIARY THEREOF FORMED PURSUANT TO SECTION TWENTY-FIVE
 HUNDRED SIXTY-FOUR OF THE PUBLIC AUTHORITIES LAW. WHEN FILING AN  APPLI-
 CATION  TO  FORM A PURE CAPTIVE INSURANCE COMPANY, THE CORPORATION SHALL
 SUBMIT WRITTEN NOTICE OF SUCH FILING  TO  THE  GOVERNOR,  THE  TEMPORARY
 PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY; OR

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11366-02-5
 S. 7144                             2

 
   (6)  who  is  a  city  with  a population of one million or more. When
 filing an application to form a pure captive insurance company,  a  city
 with  a population of one million or more shall submit written notice of
 such filing to the governor, the temporary president of the  senate  and
 the speaker of the assembly.
   (g)  "Industrial insured group" means any group of unaffiliated indus-
 trial insureds that are engaged in  similar  or  related  businesses  or
 activities,  however,  the  metropolitan  transportation  authority, the
 power authority of the state of New York, THE NEW YORK CONVENTION CENTER
 OPERATING CORPORATION and any statutory subsidiary  thereof  and  cities
 with  a  population  of  one million or more shall not be a member of an
 industrial insured group, and that collectively:
   (1) own, control or hold with power to vote  all  of  the  outstanding
 voting shares of stock of a group captive insurance company incorporated
 as a stock insurer; or
   (2)  represent  one  hundred  percent of the voting members of a group
 captive insurance company organized as a mutual insurer.
   § 2. Subdivisions 2 and 3 of section 2564 of  the  public  authorities
 law,  subdivision  2  as  amended  by  chapter 3 of the laws of 2004 and
 subdivision 3 as added by chapter 35 of the laws of  1979,  are  amended
 and a new subdivision 4 is added to read as follows:
   2.  To approve the plan and design of the convention center project as
 required by a chapter of the laws of nineteen hundred  seventy-nine  and
 the  plan  and  design of the expansion project and any convention hotel
 financed by [the] chapter THREE of the laws of two thousand four  [which
 amended this subdivision]; [and]
   3.  To  transfer  or otherwise make available to the subsidiary of New
 York state urban development  corporation  organized  pursuant  to  said
 chapter  of the laws of nineteen hundred seventy-nine, without consider-
 ation and when and as requested by said subsidiary, any or  all  rights,
 property and assets which shall have been transferred to the corporation
 pursuant  to  section  twenty-two-a of chapter ten hundred eleven of the
 laws of nineteen hundred seventy-one as added  by  section  eighteen  of
 said chapter of the laws of nineteen hundred seventy-nine[.]; AND
   4.  TO  ESTABLISH  A  SUBSIDIARY  FOR  THE  PURPOSES OF FORMING A PURE
 CAPTIVE INSURANCE COMPANY AS PROVIDED IN SECTION SEVEN THOUSAND  TWO  OF
 THE  INSURANCE LAW. PRIOR TO FORMING SUCH CAPTIVE INSURANCE COMPANY, THE
 CORPORATION OR ITS SUBSIDIARY SHALL COMPLETE A FEASIBILITY STUDY INCLUD-
 ING, BUT NOT LIMITED TO, AN ANALYSIS OF THE ACTUARIAL RISKS  AND  FEASI-
 BILITY ASSOCIATED WITH THE CREATION OF THE INSURANCE CAPTIVE, A MEASURE-
 MENT  OF  VALUE  OF  SUCH  INSURANCE CAPTIVES RELATIVE TO FINANCING RISK
 UTILIZING COMMERCIAL  INSURANCE  OR  SELF-FINANCING,  INCLUDING  IN  THE
 AGGREGATE AND BY RESPECTIVE INSURANCE TYPE, THE ADVANTAGES AND DISADVAN-
 TAGES  OF  POTENTIAL INSURANCE CAPTIVE STRUCTURES, AND A DOMICILE ANALY-
 SIS. SUCH FEASIBILITY STUDY SHALL BE PROVIDED TO THE TEMPORARY PRESIDENT
 OF THE SENATE, THE SPEAKER  OF  THE  ASSEMBLY,  AND  THE  GOVERNOR  UPON
 COMPLETION,  AND  SHALL  BE  CONDUCTED BY AN INDEPENDENT RISK CONSULTANT
 FIRM OR CAPTIVE INSURANCE BROKER LICENSED BY THE STATE TO  PERFORM  SUCH
 DUTIES.  SUCH RELATED RISK CONSULTANT FIRM, CAPTIVE INSURANCE BROKER, OR
 ANY SUBSIDIARIES OR AFFILIATES THEREOF SHALL BE PROHIBITED FROM  PROVID-
 ING  ANY  MANAGEMENT  SERVICES FOR THE CAPTIVE INSURANCE COMPANY FOR THE
 CORPORATION FOR NO LESS THAN FIVE YEARS FROM THE DATE OF COMPLETING  THE
 STUDY.
   §  3.  Subdivision  (a)  of section 1500 of the tax law, as amended by
 chapter 193 of the laws of 2022, is amended to read as follows:
 S. 7144                             3
 
   (a) The term "insurance corporation" includes a  corporation,  associ-
 ation,  joint stock company or association, person, society, aggregation
 or partnership, by whatever name known,  doing  an  insurance  business,
 and, notwithstanding the provisions of section fifteen hundred twelve of
 this  article,  shall  include  (1) a risk retention group as defined in
 subsection (n) of section five thousand nine hundred two of  the  insur-
 ance  law,  (2)  the state insurance fund and (3) a corporation, associ-
 ation, joint stock company or association, person, society,  aggregation
 or  partnership  doing an insurance business as a member of the New York
 insurance exchange described in section six thousand two hundred one  of
 the  insurance  law.  The  definition  of  the  "state  insurance  fund"
 contained in this subdivision shall be limited  in  its  effect  to  the
 provisions  of  this  article and the related provisions of this chapter
 and shall have no force and effect  other  than  with  respect  to  such
 provisions.  The  term  "insurance  corporation"  shall  also  include a
 captive insurance company doing a captive insurance business, as defined
 in subsections (c) and (b), respectively, of section seven thousand  two
 of  the  insurance law; provided, however, "insurance corporation" shall
 not include the metropolitan transportation authority, the power author-
 ity of New York or  any  statutory  subsidiary  thereof,  THE  NEW  YORK
 CONVENTION  CENTER  OPERATING  CORPORATION  OR  ANY STATUTORY SUBSIDIARY
 THEREOF, or a public benefit corporation or  not-for-profit  corporation
 formed  by  a  city with a population of one million or more pursuant to
 subsection (a) of section seven thousand five of the insurance law, each
 of which is expressly exempt from the payment of fees, taxes or  assess-
 ments,  whether  state  or local; and provided further "insurance corpo-
 ration" does not include any combinable captive insurance  company.  The
 term  "insurance corporation" shall also include an unauthorized insurer
 operating from an office within the state, pursuant to paragraph five of
 subsection (b) of section one thousand one hundred  one  and  subsection
 (i)  of section two thousand one hundred seventeen of the insurance law.
 The term "insurance corporation"  also  includes  a  health  maintenance
 organization required to obtain a certificate of authority under article
 forty-four of the public health law.
   §  4.  Subdivision (a) of section 1502-b of the tax law, as amended by
 chapter 193 of the laws of 2022, is amended to read as follows:
   (a) In lieu of the taxes and tax surcharge imposed by sections fifteen
 hundred one, fifteen hundred two-a, fifteen hundred five-a, and  fifteen
 hundred ten of this article, every captive insurance company licensed by
 the  superintendent  of financial services pursuant to the provisions of
 article seventy of the insurance law, other than the metropolitan trans-
 portation authority, the power authority of New York  or  any  statutory
 subsidiary thereof, THE NEW YORK CONVENTION CENTER OPERATING CORPORATION
 OR ANY STATUTORY SUBSIDIARY THEREOF, and a public benefit corporation or
 not-for-profit  corporation  formed  by  a city with a population of one
 million or more pursuant to subsection (a)  of  section  seven  thousand
 five  of  the  insurance law, each of which is expressly exempt from the
 payment of fees, taxes or assessments whether state or local, and  other
 than  combinable  captive insurance company, shall, for the privilege of
 exercising its corporate franchise, pay a tax on (1)  all  gross  direct
 premiums,  less  return  premiums  thereon,  written on risks located or
 resident in this state and (2) all assumed  reinsurance  premiums,  less
 return  premiums  thereon,  written on risks located or resident in this
 state. The rate of the tax imposed on gross  direct  premiums  shall  be
 four-tenths  of  one  percent  on  all  or  any part of the first twenty
 million dollars of premiums, three-tenths of one percent on all  or  any
 S. 7144                             4

 part of the second twenty million dollars of premiums, two-tenths of one
 percent on all or any part of the third twenty million dollars of premi-
 ums,  and  seventy-five  thousandths  of  one  percent on each dollar of
 premiums thereafter. The rate of the tax on assumed reinsurance premiums
 shall  be  two  hundred twenty-five thousandths of one percent on all or
 any part of the first twenty million dollars of  premiums,  one  hundred
 and  fifty  thousandths  of one percent on all or any part of the second
 twenty million dollars of premiums, fifty thousandths of one percent  on
 all  or  any  part  of  the third twenty million dollars of premiums and
 twenty-five thousandths of one percent on each dollar of premiums there-
 after. The tax imposed by this section shall be equal to the greater  of
 (i)  the  sum  of  the  tax imposed on gross direct premiums and the tax
 imposed on assumed reinsurance premiums or (ii) five thousand dollars.
   § 5. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.