Bill Text: NY S05641 | 2019-2020 | General Assembly | Introduced

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Bill Title: Creates other post-employment benefit reserve funds; defines terms.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S05641 Detail]

Download: New_York-2019-S05641-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5641

                               2019-2020 Regular Sessions

                    IN SENATE

                                       May 9, 2019
                                       ___________

        Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government

        AN ACT to amend the general municipal law  and  the  education  law,  in
          relation  to the creation and funding of other post-employment benefit
          reserve funds; and to repeal certain provisions of the general munici-
          pal law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  general  municipal  law  is  amended by adding a new
     2  section 6-w to read as follows:
     3    § 6-w. Other post-employment benefit reserve funds. 1. As used in this
     4  section:
     5    (a) "Municipal corporation" means a school district (except  a  school
     6  district in a city with a population of one hundred twenty-five thousand
     7  or more) or a board of cooperative educational services.
     8    (b)  "Other  post-employment  benefit"  means any benefit other than a
     9  pension benefit that a municipal corporation is obligated  by  contract,
    10  local  law,  or  statute  to  pay  to, or on behalf of, an individual on
    11  account of that individual's prior employment by  the  municipal  corpo-
    12  ration, including post-employment healthcare benefits, regardless of the
    13  type of plan that provides them, but excluding termination benefits such
    14  as those described in section six-p of this article.
    15    (c) "Participating employer" means a participating employer as defined
    16  in  subdivision twenty of section two of the retirement and social secu-
    17  rity law or in subdivision twenty of section three hundred two  of  such
    18  law.
    19    2.  The  governing  board of any municipal corporation which is also a
    20  participating employer may establish by resolution a  reserve  fund  for
    21  the purpose of financing other post-employment benefits.
    22    3.  There  may  be  paid  into another post-employment benefit reserve
    23  fund:
    24    (a) Such amounts as may be provided therefor  by  budgetary  appropri-
    25  ation or raised by tax therefor;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10209-02-9
        S. 5641                             2

     1    (b) Such revenues as are not required by law to be paid into any other
     2  fund or account;
     3    (c) Such other funds as may be legally appropriated; and
     4    (d)  Notwithstanding  any  law to the contrary, such amounts as may be
     5  transferred from a reserve fund established pursuant to  section  six-c,
     6  six-d,  six-e,  six-f,  six-g,  six-m,  six-n,  or six-p of this article
     7  comprised of moneys raised from the same tax base as the moneys  in  the
     8  other  post-employment  benefit  reserve  fund, or a reserve fund estab-
     9  lished pursuant to section thirty-six hundred fifty-one of the education
    10  law, provided, that any such transfer shall only be made  by  resolution
    11  of  the  governing  board  of such municipal corporation adopted after a
    12  public hearing held on at least fifteen days prior published  notice  in
    13  the  official newspaper of the municipal corporation  or, if the munici-
    14  pal corporation does not have an official newspaper,  in  at  least  one
    15  newspaper having general circulation in the municipal corporation.
    16    4. The moneys in another post-employment benefit reserve fund shall be
    17  deposited  and  secured  in  the  manner provided by section ten of this
    18  article, the governing board of such municipal corporation, or the chief
    19  fiscal officer thereof if the governing board shall delegate  such  duty
    20  to him or her, may invest the moneys in such fund in the manner provided
    21  by  section  eleven of this article, any interest earned or capital gain
    22  realized on the money so deposited  or  invested  shall  accrue  to  and
    23  become part of such fund.
    24    5. The governing board of such municipal corporation by resolution may
    25  authorize expenditures from another post-employment benefit reserve fund
    26  except  as  otherwise provided by law, moneys in another post-employment
    27  benefit reserve fund may only be expended to finance other  post-employ-
    28  ment benefits.
    29    6. The governing board of such municipal corporation by resolution may
    30  authorize  the  transfer  of a portion of the moneys in another post-em-
    31  ployment benefit reserve fund to a reserve fund of the municipal  corpo-
    32  ration  established  pursuant  to  section  six-c,  six-d, six-e, six-f,
    33  six-g, six-m, six-n, or six-p of this article comprised of moneys raised
    34  from the same tax base as the  moneys  in  the  retirement  contribution
    35  reserve  funds,  or a reserve fund established pursuant to section thir-
    36  ty-six hundred fifty-one of the education law, provided, that  any  such
    37  transfer shall only be made by resolution of the governing board of such
    38  municipal  corporation  adopted  after a public hearing held on at least
    39  fifteen days prior published notice in the  official  newspaper  of  the
    40  municipal  corporation or, if the municipal corporation does not have an
    41  official newspaper, in at least one newspaper having general circulation
    42  in the municipal corporation.
    43    7. The chief  fiscal  officer  of  such  municipal  corporation  shall
    44  account  for  another  post-employment benefit reserve fund separate and
    45  apart from all other funds of the municipal corporation such  accounting
    46  shall  show: the source, date and amount of each sum paid into the fund;
    47  the interest earned by such fund; capital gains or losses resulting from
    48  the sale of investments of this fund; the order, purpose  thereof,  date
    49  and amount of each payment from such fund; the assets of the fund, indi-
    50  cating cash balance and a schedule of investments.
    51    The  chief fiscal officer, within sixty days of the end of each fiscal
    52  year, shall furnish a detailed report of the operation and condition  of
    53  this fund to the governing board.
    54    8.  No  member  of  the  governing board of such municipal corporation
    55  shall:
        S. 5641                             3

     1    (a)  Authorize  a  withdrawal  from  another  post-employment  benefit
     2  reserve fund for any purpose except as provided in this section; or
     3    (b) Expend any money withdrawn from such fund for a purpose other than
     4  as provided in this section.
     5    9. The governing board of such municipal corporation by resolution may
     6  determine that an other post-employment benefit reserve fund is no long-
     7  er  needed  and  terminate  the fund. Such resolution shall transfer any
     8  moneys remaining in such fund to one or more reserve funds of the munic-
     9  ipal corporation established pursuant to section  six-c,  six-d,  six-e,
    10  six-f, six-g, six-m, six-n, or six-p of this article comprised of moneys
    11  raised from the same tax base as the moneys in the other post-employment
    12  benefit  reserve fund, or one or more reserve funds established pursuant
    13  to section thirty-six hundred fifty-one of the education law.
    14    § 2. Notwithstanding any other provision of law, within  180  days  of
    15  the  effective  date  of this act, a municipal corporation may by resol-
    16  ution  transfer  into  another  post-employment  benefits  reserve  fund
    17  created  in accordance with section 6-w of the general municipal law any
    18  funds previously committed or assigned by that municipal corporation for
    19  the purpose of paying  other  post-employment  benefits  as  defined  in
    20  section  6-w of the general municipal law, regardless of how those funds
    21  have been designated.
    22    § 3. Subdivisions 10 and 11 of section 6-p of  the  general  municipal
    23  law are REPEALED.
    24    §  4.  Paragraph  b  of subdivision 5 of section 1950 of the education
    25  law, as amended by chapter 296 of the laws of 2016, is amended  to  read
    26  as follows:
    27    b.  The  cost of services herein referred to shall be the amount allo-
    28  cated to each component school district  by  the  board  of  cooperative
    29  educational  services  to  defray  expenses  of  such  board,  including
    30  approved expenses from the testing of potable water systems of  occupied
    31  school  buildings under the board's jurisdiction as required pursuant to
    32  section eleven hundred ten of the public health law,  except  that  that
    33  part of the salary paid any teacher, supervisor or other employee of the
    34  board  of  cooperative educational services which is in excess of thirty
    35  thousand dollars shall not be such an approved expense, and except  also
    36  that  administrative  and clerical expenses shall not exceed ten percent
    37  of the total expenses for  purposes  of  this  computation.  Any  gifts,
    38  donations  or  interest  earned  by the board of cooperative educational
    39  services or on behalf of the board of cooperative  educational  services
    40  by  the dormitory authority or any other source shall not be deducted in
    41  determining the cost of services  allocated  to  each  component  school
    42  district. [Any payments made to a component school district by the board
    43  of  cooperative  educational  services pursuant to subdivision eleven of
    44  section six-p of the general municipal law attributable to  an  approved
    45  cost  of service computed pursuant to this subdivision shall be deducted
    46  from the cost of services allocated to such component school  district.]
    47  The  expense  of  transportation  provided  by  the board of cooperative
    48  educational services pursuant to paragraph q of subdivision four of this
    49  section shall be eligible for aid apportioned  pursuant  to  subdivision
    50  seven  of section thirty-six hundred two of this chapter and no board of
    51  cooperative educational services  transportation  expense  shall  be  an
    52  approved cost of services for the computation of aid under this subdivi-
    53  sion. Transportation expense pursuant to paragraph q of subdivision four
    54  of  this section shall be included in the computation of the ten percent
    55  limitation on administrative and clerical expenses.
    56    § 5. This act shall take effect immediately.