Senate Bill S9550A

                                 
BILL NUMBER: S9550

SPONSOR: MURRAY
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to contributions
paid into the insurance reserve fund by the Medford fire district

 
PURPOSE:

Relates to contributions paid into the insurance reserve fund by the
Medford fire district

 
SUMMARY OF PROVISIONS:

Section 1. Subdivision 4 of section 6-n of the general municipal law, as
amended by chapter 819 of the laws of 1986, is amended to read as
follows:

4. The amount paid into such fund during any fiscal year shall not
exceed the greater of thirty-three thousand dollars or five per centum
of the total budget for such fiscal year. Provided, however, the Medford
              

fire district, located in the county of Suffolk, may deposit into such
fund the sum of four hundred thousand dollars in each of the years two
thousand twenty-six, two thousand twenty-seven and two thousand twenty-
eight.

Section 2 contains the effective date.

 
JUSTIFICATION:

The Medford Fire District is unable to secure insurance coverage for
liability caused by the operation of its fire apparatus and responses to
emergency scenes, leaving the taxpayers greatly exposed to losses from
uninsured claims.

While the General Municipal Law permits a fire district to establish a
reserve fund for self-insurance, the law caps the annual contributions
to $35,000 per year. Therefore, it would take two to three decades to
reach .a savings amount sufficient to self-insure against potential
losses.

This amendment would allow the Medford Fire District to rapidly save
funds necessary to protect its taxpayers against potential uninsured
losses over a three year period.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.