Senate Bill S9113

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9113
 
                             I N  S E N A T E
 
                             February 3, 2026
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the insurance  law,  in  relation  to  participation  in
   assigned  risk  plans  by  voluntary foster care agencies (Part A); to
   amend the social services law, in relation to requiring the office  of
   children  and  family  services  to establish standards of payment for
   liability insurance costs that ensures  the  maximum  state  aid  rate
   accurately  reflect  the  year over year increased costs for voluntary
   foster care agencies (Part B); to amend the state finance law and  the
   social  services law, in relation to establishing the voluntary foster
   care agency insurance bridge fund and establishing a process  for  the
   distribution  of moneys in such fund (Part C); and making an appropri-
   ation therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law components of legislation relating
 to  liability  insurance for voluntary foster care agencies. Each compo-
 nent is wholly contained within a Part identified as Parts A through  C.
 The  effective  date for each particular provision contained within such
 Part as set forth in the last section of such Part. Any provision in any
 section contained within a Part, including the  effective  date  of  the
 Part,  which  makes a reference to a section "of this act", when used in
 connection with that particular component, shall be deemed to  mean  and
 refer  to  the  corresponding  section of the Part in which it is found.
 Section four of this act sets forth the general effective date  of  this
 act.
 
                                  PART A
 
   Section  1. The insurance law is amended by adding a new article 35 to
 read as follows:
                                ARTICLE 35
            ASSIGNED RISK PLANS; VOLUNTARY FOSTER CARE AGENCIES
 SECTION 3501. PARTICIPATION IN ASSIGNED RISK PLANS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14437-01-6
 S. 9113                             2
 
         3502. ADMINISTRATION.
         3503. COVERAGE.
   §  3501.  PARTICIPATION  IN  ASSIGNED  RISK  PLANS. (A) ALL AUTHORIZED
 INSURERS LICENSED TO WRITE COMMERCIAL RISK INSURANCE IN THIS STATE SHALL
 SUBSCRIBE TO AND PARTICIPATE IN THE REASONABLE PLAN  OR  PLANS,  CREATED
 AND  ADMINISTERED,  BY  THE  SUPERINTENDENT,  IN  CONSULTATION  WITH THE
 COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES, FOR  EQUITA-
 BLE APPORTIONMENT AMONG SUCH INSURERS OF APPLICANTS.
   (B)  APPLICANTS OF A REASONABLE PLAN OR PLANS UNDER THIS SECTION SHALL
 INCLUDE AUTHORIZED AGENCIES AS DEFINED IN  SUBDIVISION  TEN  OF  SECTION
 THREE  HUNDRED  SEVENTY-ONE  OF  THE  SOCIAL SERVICES LAW, ALSO KNOWN AS
 VOLUNTARY FOSTER CARE AGENCIES.
   § 3502. ADMINISTRATION. THE SUPERINTENDENT, IN CONSULTATION  WITH  THE
 COMMISSIONER  OF THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ADMIN-
 ISTER THE REASONABLE PLAN OR PLANS ESTABLISHED UNDER THIS ARTICLE.   THE
 SUPERINTENDENT  SHALL ESTABLISH FOR THE BENEFIT OF APPLICANTS, STANDARDS
 OF SERVICE OF PARTICIPATING INSURERS INCLUDING TIMELY ISSUANCE OF  POLI-
 CIES,  CERTIFICATES  AND ENDORSEMENTS, FINANCIAL SECURITY FORMS, AND THE
 COLLECTION OF REQUIRED DEPOSITS. THE SUPERINTENDENT SHALL ALSO ESTABLISH
 THE APPLICATION PROCESS FOR APPLICANTS TO APPLY FOR AND RECEIVE COVERAGE
 UNDER THE REASONABLE PLAN OR PLANS.
   § 3503. COVERAGE. (A) ANY SUCH PLAN ESTABLISHED PURSUANT TO THIS ARTI-
 CLE SHALL MEET THE MINIMUM GENERAL LIABILITY INSURANCE COVERAGE REQUIRE-
 MENTS REQUIRED IN CONTRACTS BY COUNTIES AND SHALL PROVIDE FOR AVAILABIL-
 ITY TO APPLICANTS FOR:
   (1) PROFESSIONAL LIABILITY COVERAGE; AND
   (2) SEXUAL ABUSE AND MOLESTATION COVERAGE.
   (B) SUCH PLAN OR PLANS SHALL PROVIDE FOR  THE  METHOD  OF  CLASSIFYING
 RISKS,  ESTABLISHING  TERRITORIES  AND  MAKING RATES APPLICABLE THERETO.
 SUCH RATES SHALL BE BASED UPON LOSS AND EXPENSE EXPERIENCE OF THE  RISKS
 INSURED PURSUANT TO THE PLAN OR PLANS.
   § 2. This act shall take effect immediately.
 
                                  PART B
 
   Section  1.  Section  398-a  of  the social services law is amended by
 adding a new subdivision 7 to read as follows:
   (7) (A) THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  SHALL  ESTABLISH
 STANDARDS  OF  PAYMENT  FOR  LIABILITY  INSURANCE COSTS THAT ENSURES THE
 MAXIMUM STATE AID RATE ACCURATELY REFLECT THE YEAR OVER  YEAR  INCREASED
 COSTS  FOR  VOLUNTARY  FOSTER CARE AGENCIES.   BEGINNING JULY FIRST, TWO
 THOUSAND TWENTY-SEVEN, WITH THE TWO THOUSAND TWENTY-SEVEN--TWO  THOUSAND
 TWENTY-EIGHT  RATE  YEAR,  AND  EVERY YEAR THEREAFTER, SUCH STANDARDS OF
 PAYMENT SHALL:
   (I) ADDRESS LIABILITY INSURANCE COSTS IN  A  SEPARATE  COMPONENT  FROM
 OTHER ADMINISTRATION COSTS; AND
   (II)  INCLUDE  A  PROCESS RELATED TO PARAMETER INCREASES THAT REFLECTS
 THE FULL GROWTH IN LIABILITY INSURANCE COSTS.
   (B) THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  SHALL  ESTABLISH  AN
 APPLICATION  PROCESS  FOR VOLUNTARY FOSTER CARE AGENCIES THAT CAN DEMON-
 STRATE INCREASED COSTS FOR LIABILITY INSURANCE THAT ARE NOT REFLECTED IN
 THE CALCULATION OF THE RATE THAT IS IN EFFECT AT THE  TIME  OF  APPLICA-
 TION, TO REQUEST A RATE ADJUSTMENT SOLELY BASED ON SUCH INCREASE.
   § 2. This act shall take effect immediately.
 
                                  PART C
 S. 9113                             3
 
   Section  1.  The  state finance law is amended by adding a new section
 97-bbbbb to read as follows:
   §  97-BBBBB.  VOLUNTARY  FOSTER  CARE AGENCY INSURANCE BRIDGE FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
 TROLLER  AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN
 AS THE "VOLUNTARY FOSTER CARE AGENCY INSURANCE BRIDGE FUND".
   2. THE VOLUNTARY  FOSTER  CARE  AGENCY  INSURANCE  BRIDGE  FUND  SHALL
 CONSIST OF MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY
 OTHER  FUND  OR SOURCE. ANY UNEXPENDED AND UNENCUMBERED MONEYS REMAINING
 IN THE VOLUNTARY FOSTER CARE AGENCY INSURANCE BRIDGE FUND AT THE END  OF
 A FISCAL YEAR SHALL REMAIN IN SUCH FUND AND SHALL NOT BE CREDITED TO ANY
 OTHER FUND. ANY INTEREST RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOS-
 IT IN THE FUND SHALL BE RETAINED IN AND BECOME A PART OF SUCH FUND.
   3.  MONEYS  OF  THE VOLUNTARY FOSTER CARE AGENCY INSURANCE BRIDGE FUND
 SHALL BE MADE AVAILABLE TO THE COMMISSIONER OF THE  OFFICE  OF  CHILDREN
 AND  FAMILY  SERVICES FOR DISTRIBUTION TO FOSTER CARE AGENCIES TO OFFSET
 THE INCREASED COSTS OF PURCHASING REQUIRED LIABILITY INSURANCE.
   4. TO BE ELIGIBLE TO BE AWARDED MONEYS FROM THE VOLUNTARY FOSTER  CARE
 AGENCY  INSURANCE  BRIDGE  FUND,  A  VOLUNTARY  FOSTER CARE AGENCY SHALL
 SUBMIT AN APPLICATION, INCLUDING DOCUMENTATION  DEMONSTRATING  THAT  THE
 PROVIDER  HAS  EXPERIENCED  AN  INCREASE  IN THE COST OF THEIR LIABILITY
 INSURANCE, IN ACCORDANCE WITH SECTION THREE  HUNDRED  NINETY-EIGHT-G  OF
 THE SOCIAL SERVICES LAW.
   §  2. The social services law is amended by adding a new section 398-g
 to read as follows:
   § 398-G. VOLUNTARY FOSTER CARE  AGENCIES;  DISTRIBUTION  OF  FUNDS  TO
 OFFSET  INCREASED LIABILITY INSURANCE COSTS. 1. PROCESS FOR DISTRIBUTION
 OF FUNDS. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL  ESTABLISH  A
 PROCESS  FOR  THE  DISTRIBUTION  OF FUNDS FROM THE VOLUNTARY FOSTER CARE
 AGENCY INSURANCE BRIDGE FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEV-
 EN-BBBBB OF THE STATE FINANCE LAW, INCLUDING  THE  ELIGIBILITY  CRITERIA
 AND AN APPLICATION FOR VOLUNTARY FOSTER CARE AGENCIES TO SUBMIT SUPPORT-
 ING  DOCUMENTATION DEMONSTRATING AN INCREASE IN THE COST OF SUCH LIABIL-
 ITY INSURANCE. THE OFFICE OF CHILDREN AND FAMILY SERVICES  SHALL  ESTAB-
 LISH  AND  MAKE  WIDELY  AVAILABLE  A  CONSOLIDATED  APPLICATION FOR THE
 VOLUNTARY FOSTER CARE AGENCY INSURANCE BRIDGE FUND NO LATER THAN  NINETY
 DAYS FROM THE EFFECTIVE DATE OF THIS SECTION.
   2.  ELIGIBILITY.  A  VOLUNTARY FOSTER CARE AGENCY SHALL BE ELIGIBLE TO
 RECEIVE FUNDING PURSUANT TO THIS SECTION WHEN  SUCH  AGENCY  CAN  DEMON-
 STRATE IT HAS:
   (A)  INCURRED  A  DOCUMENTED  INCREASE  IN  LIABILITY INSURANCE COSTS,
 AND/OR INCREASED DEDUCTIBLE COSTS FOR ACTUAL CLAIMS PAID;
   (B) HAD FOSTER CARE PLACEMENTS IN THE CALENDAR YEARS OF  TWO  THOUSAND
 TWENTY-FOUR AND TWO THOUSAND TWENTY-FIVE; AND
   (C) AN ACTIVE LICENSE THAT IS IN GOOD STANDING.
   3.  SUPPORTING  DOCUMENTATION.  THE  OFFICE  OF  CHILDREN  AND  FAMILY
 SERVICES MAY REQUIRE ELIGIBLE AGENCIES TO SUBMIT  SUPPORTING  DOCUMENTA-
 TION INCLUDING BUT NOT LIMITED TO:
   (A)  INVOICES  OR OTHER PROOF FROM AN INSURANCE CARRIER OR BROKER THAT
 IDENTIFIES THE AMOUNT OF THE  PREVIOUS  AND  CURRENT  OR  NEW  INSURANCE
 PREMIUMS, INCLUDING COVERAGE DATES;
   (B)  AN  INVOICE IDENTIFYING THE COST OF THE CURRENT INSURANCE PREMIUM
 WITH A NOTICE OF NONRENEWAL AND QUOTES  FROM  OTHER  INSURANCE  CARRIERS
 DEMONSTRATING  AN  IMPENDING INCREASE IN COSTS WHEN THEIR CURRENT INSUR-
 ANCE EXPIRES; AND
 S. 9113                             4
 
   (C) INVOICES FOR ACTUAL INSURANCE CLAIMS THAT INCLUDED INCREASED COSTS
 INCURRED FROM PAYING HIGHER DEDUCTIBLES, FOR  CLAIMS  COVERED  AND  PAID
 UNDER  THE TERMS OF A POLICY IN EFFECT AFTER THE INCREASED PREMIUMS TOOK
 EFFECT. SUCH CLAIMS MUST  ALSO  INCLUDE  DOCUMENTATION  THAT  SHOWS  THE
 PREVIOUS  AND  CURRENT  DEDUCTIBLE  AMOUNTS,  AND  IN  THE  INSTANCE  OF
 INCREASED COSTS TO MEET COUNTY REQUIREMENTS, DOCUMENTATION  MAY  INCLUDE
 COUNTY  CONTRACTS  SHOWING  THE  REQUIRED  INSURANCE LEVEL A FOSTER CARE
 AGENCY MUST SECURE TO CONTRACT WITH SUCH COUNTY.
   § 3. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   § 3. The sum of twenty million dollars ($20,000,000), or so much ther-
 eof  as  may be necessary, is hereby appropriated to the office of chil-
 dren and family services out of any moneys in the state treasury in  the
 general fund to the credit of the voluntary foster care agency insurance
 bridge  fund  account  not  otherwise  appropriated  for the purposes of
 carrying out the provisions of this act. Such moneys shall be payable on
 the audit and warrant of the state comptroller on vouchers certified  or
 approved  by  the  commissioner of children and family services, or such
 commissioner's duly designated representative in the manner provided  by
 law.
   §  4.  This act shall take effect immediately; provided, however, that
 the applicable effective date of Parts A through C of this act shall  be
 as specifically set forth in the last section of such Parts.