Bill Text: NY A03449 | 2009-2010 | General Assembly | Introduced


Bill Title: An act to amend the insurance law, in relation to enacting the Suffolk county insurance consortium act which enables the county of Suffolk to enter into cooperative agreements with school districts, towns, and villages located within such county to pay for the provision of health care services to their employees

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2009-01-27 - referred to insurance [A03449 Detail]

Download: New_York-2009-A03449-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3449
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 27, 2009
                                      ___________
       Introduced  by  M. of A. EDDINGTON, ALESSI, ENGLEBRIGHT, RAMOS, SWEENEY,
         FIELDS -- read once and referred to the Committee on Insurance
       AN ACT to amend the insurance law, in relation to enacting  the  Suffolk
         county insurance consortium act which enables the county of Suffolk to
         enter  into  cooperative  agreements with school districts, towns, and
         villages located within such county to pay for the provision of health
         care services to their employees
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  This  act shall be known and may be cited as the "Suffolk
    2  county insurance consortium act".
    3    S 2. Subsection (a) of section 4703 of the insurance law, as added  by
    4  chapter 689 of the laws of 1994, is amended to read as follows:
    5    (a)  No  municipal  corporation shall establish, maintain or otherwise
    6  participate in a municipal cooperative health benefit plan in this state
    7  which provides benefits, in whole or part, on  a  shared-funding  basis,
    8  unless the municipal cooperative health benefit plan:
    9    (1)  obtains  and maintains a certificate of authority from the super-
   10  intendent pursuant to the provisions of this article; or
   11    (2) is an employee welfare fund, as defined in article  forty-four  of
   12  this  chapter  that is administered by equal representation of employees
   13  and employers; or
   14    (3) is exempt from the requirement of obtaining a license; or
   15    (4) is, and continues to be,  a  fully-insured  municipal  cooperative
   16  health benefit plan; OR
   17    (5) IS ESTABLISHED BY SUFFOLK COUNTY, IN WHICH CASE NO APPLICATION FOR
   18  OR  RECEIPT OF A CERTIFICATE OF AUTHORITY PURSUANT TO THIS SECTION SHALL
   19  BE REQUIRED.
   20    S 3. The opening paragraphs of subsections (a), (b), (c), (d), (e) and
   21  (f) of section 4705 of the insurance law, as added by chapter 689 of the
   22  laws of 1994, are amended to read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04653-01-9
       A. 3449                             2
    1    [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION  AGREEMENT  FOR  A
    2  MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
    3  SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
    4  ARTICLE,  THE municipal cooperation agreement, under which the municipal
    5  cooperative  health  benefit plan is established and maintained, and any
    6  amendment thereto, shall be approved  by  each  participating  municipal
    7  corporation  by majority vote of each such corporation's governing body,
    8  and shall:
    9    [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION  AGREEMENT  FOR  A
   10  MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
   11  SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
   12  ARTICLE,  THE  municipal  cooperation  agreement  shall provide that the
   13  plan's chief fiscal officer:
   14    [A] EXCEPT IN THE CASE OF A  MUNICIPAL  COOPERATION  AGREEMENT  FOR  A
   15  MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
   16  SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
   17  ARTICLE, A municipal cooperation agreement shall include a provision:
   18    [The]  EXCEPT  IN  THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A
   19  MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF
   20  SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
   21  ARTICLE, THE municipal cooperation  agreement  shall  provide  that  the
   22  governing board:
   23    [The]  EXCEPT  IN  THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A
   24  MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF
   25  SUFFOLK  PURSUANT  TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS
   26  ARTICLE, THE municipal  cooperation  agreement  shall  provide  for  the
   27  following  to  be  prepared  and  furnished  to  the governing board, to
   28  participating municipal corporations, to unions which are the  exclusive
   29  bargaining  representatives  of employees covered by the plan and to the
   30  superintendent:
   31    [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION  AGREEMENT  FOR  A
   32  MUNICIPAL  COOPERATIVE  HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF
   33  SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A  OF  THIS
   34  ARTICLE,  THE  municipal  cooperation agreement shall specify the rights
   35  and obligations of a municipal corporation withdrawing from a  municipal
   36  cooperative  health  benefit plan to any contribution (or premium equiv-
   37  alent) refund or reserve fund or for any contingent assessment liability
   38  or other obligation.
   39    S 4. The insurance law is amended by adding a new  section  4705-a  to
   40  read as follows:
   41    S 4705-A. MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE
   42  COUNTY  OF  SUFFOLK.  SUFFOLK COUNTY HEREBY HAS THE AUTHORITY TO ENTER A
   43  MUNICIPAL COOPERATION AGREEMENT FOR THE  ESTABLISHMENT  OF  A  MUNICIPAL
   44  COOPERATIVE HEALTH BENEFIT PLAN UPON SUCH TERMS AND CONDITIONS AS DETER-
   45  MINED AND AGREED TO BY THE COUNTY OF SUFFOLK AND PARTICIPATING MUNICIPAL
   46  CORPORATIONS.  SUCH  AGREEMENT  MAY,  AT  THE  OPTION  OF  THE COUNTY OF
   47  SUFFOLK, REQUIRE THAT EACH PARTICIPATING  MUNICIPAL  CORPORATION,  OTHER
   48  THAN SUCH COUNTY, PAY AN ADMINISTRATIVE FEE TO THE COUNTY OF SUFFOLK FOR
   49  PARTICIPATION  IN SUCH PLAN. NOTHING IN SUCH ADMINISTRATIVE FEE REQUIRE-
   50  MENT SHALL CONSTRUE SUFFOLK COUNTY AS DOING AN INSURANCE BUSINESS WITHIN
   51  THE MEANING OF SECTIONS ONE THOUSAND ONE HUNDRED ONE  AND  ONE  THOUSAND
   52  ONE HUNDRED TWO OF THIS CHAPTER.
   53    S  5.  Section  4706  of  the insurance law is amended by adding a new
   54  subsection (h) to read as follows:
       A. 3449                             3
    1    (H) THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  A  MUNICIPAL
    2  COOPERATIVE  HEALTH  BENEFIT  PLAN  ESTABLISHED BY THE COUNTY OF SUFFOLK
    3  PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
    4    S  6.  Section  4707  of  the insurance law is amended by adding a new
    5  subsection (d) to read as follows:
    6    (D) THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  A  MUNICIPAL
    7  COOPERATIVE  HEALTH  BENEFIT  PLAN  ESTABLISHED BY THE COUNTY OF SUFFOLK
    8  PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
    9    S 7. Section 4708 of the insurance law is  amended  by  adding  a  new
   10  subsection (f) to read as follows:
   11    (F)  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY TO A MUNICIPAL
   12  COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY  THE  COUNTY  OF  SUFFOLK
   13  PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
   14    S  8.  Section  4709  of  the insurance law is amended by adding a new
   15  subsection (d) to read as follows:
   16    (D) THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  A  MUNICIPAL
   17  COOPERATIVE  HEALTH  BENEFIT  PLAN  ESTABLISHED BY THE COUNTY OF SUFFOLK
   18  PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE.
   19    S 9. The opening paragraph of subsection (a) of section  4710  of  the
   20  insurance  law,  as added by chapter 689 of the laws of 1994, is amended
   21  to read as follows:
   22    [The] EXCEPT IN THE CASE OF A  MUNICIPAL  COOPERATIVE  HEALTH  BENEFIT
   23  PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK PURSUANT TO SECTION FOUR THOU-
   24  SAND  SEVEN  HUNDRED  FIVE-A OF THIS ARTICLE, THE governing board of the
   25  municipal cooperative health benefit plan shall:
   26    S 10. Section 4711 of the insurance law, as added by  chapter  689  of
   27  the laws of 1994, is amended to read as follows:
   28    S  4711.  Examinations.  (a)  [The]  EXCEPT IN THE CASE OF A MUNICIPAL
   29  COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE  COUNTY  OF  SUFFOLK,
   30  THE  superintendent  may  examine the affairs of a municipal cooperative
   31  health benefit plan as often as deemed necessary, but not less than once
   32  in every three years, except that  the  superintendent  may  extend  the
   33  three-year interval to no more than five years upon determining that the
   34  three-year  requirement  is  not necessary to safeguard the interests of
   35  the public or covered persons.
   36    (b) [In] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH  BENEFIT
   37  PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK, IN connection with such exam-
   38  inations,  the  superintendent  may  exercise  the  powers  set forth in
   39  sections three hundred four, three  hundred  five,  three  hundred  six,
   40  three  hundred  eight,  three  hundred  ten, three hundred eleven, three
   41  hundred twelve, and three hundred thirteen of this chapter, and may also
   42  require special reports from a municipal cooperative health benefit plan
   43  as specified in section three hundred eight of this chapter.
   44    (c) The governing board of every municipal cooperative health  benefit
   45  plan  shall  be  responsible for the maintenance of accurate records and
   46  books of account in regard to the plan.
   47    (D) IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN  ESTAB-
   48  LISHED  BY  THE COUNTY OF SUFFOLK, THE SUPERINTENDENT SHALL NOT BE ENTI-
   49  TLED TO EXAMINATION OF SUCH BENEFIT  PLAN  NOR  MAY  THE  SUPERINTENDENT
   50  EXERCISE  THE  POWERS  SET  FORTH  IN SECTIONS THREE HUNDRED FOUR, THREE
   51  HUNDRED FIVE, THREE HUNDRED SIX, THREE HUNDRED EIGHT, THREE HUNDRED TEN,
   52  THREE HUNDRED ELEVEN, THREE HUNDRED TWELVE, AND THREE  HUNDRED  THIRTEEN
   53  OF THIS CHAPTER, AND MAY ALSO NOT REQUIRE SPECIAL REPORTS FROM A MUNICI-
   54  PAL  COOPERATIVE  HEALTH  BENEFIT  PLAN  AS  SPECIFIED  IN SECTION THREE
   55  HUNDRED EIGHT OF THIS CHAPTER IN REGARD TO SUCH PLAN.
       A. 3449                             4
    1    S 11. Section 4713 of the insurance law is amended  by  adding  a  new
    2  subsection (d) to read as follows:
    3    (D)  THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE DISSOLUTION
    4  OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY
    5  OF SUFFOLK.
    6    S 12. This act shall take effect on  the  one  hundred  twentieth  day
    7  after it shall have become a law.
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