Bill Text: NY S07265 | 2011-2012 | General Assembly | Introduced
Bill Title: Authorizes school districts to establish and maintain self-funded insurance health care rate stabilization funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-02 - REFERRED TO LOCAL GOVERNMENT [S07265 Detail]
Download: New_York-2011-S07265-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7265
I N S E N A T E
May 2, 2012
___________
Introduced by Sen. OPPENHEIMER -- 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, in relation to authorizing
school districts to establish and maintain self-funded insurance
health care rate stabilization funds
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-n-1 to read as follows:
3 S 6-N-1. SELF-FUNDED INSURANCE HEALTH CARE RATE STABILIZATION FUND. 1.
4 (A) "MUNICIPAL CORPORATION," AS USED IN THIS SECTION, SHALL MEAN A
5 MUNICIPAL CORPORATION, AS DEFINED IN SECTION TWO OF THIS CHAPTER, SCHOOL
6 DISTRICT, EXCEPT A SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE
7 HUNDRED TWENTY-FIVE THOUSAND OR MORE, BOARD OF COOPERATIVE EDUCATIONAL
8 SERVICES, FIRE DISTRICT, A DISTRICT CORPORATION AND A SPECIAL IMPROVE-
9 MENT DISTRICT GOVERNED BY A SEPARATE BOARD OF COMMISSIONERS.
10 (B) "JUDGMENTS", "ACTIONS" AND "CLAIMS", AS USED IN THIS SECTION,
11 SHALL MEAN THOSE JUDGMENTS, ACTIONS AND CLAIMS AGAINST THE MUNICIPAL
12 CORPORATION THAT ARISE OUT OF THOSE KINDS OF RISKS FOR WHICH EXPENDI-
13 TURES MAY BE MADE PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
14 2. (A) THE GOVERNING BOARD OF ANY MUNICIPAL CORPORATION MAY ESTABLISH
15 A RESERVE FUND TO BE KNOWN AS THE SELF-FUNDED INSURANCE HEALTH CARE RATE
16 STABILIZATION FUND. UPON THE CREATION OF THE FUND, THE MUNICIPALITY MAY
17 MAKE EXPENDITURES FROM THE FUND FOR OFFICERS' AND EMPLOYEES' SELF-INSU-
18 RANCE OF HEALTH CARE BENEFITS AND CLAIMS OF SUCH OFFICERS OR EMPLOYEES
19 INCLUDING, BUT NOT LIMITED TO DIRECT CASH REIMBURSEMENT TO OFFICERS AND
20 EMPLOYEES FOR HEALTH CARE EXPENSES; PROVIDED HOWEVER, THAT NO MUNICI-
21 PALITY SHALL MAKE AN EXPENDITURE FROM SUCH FUND FOR ANY LOSS, CLAIM,
22 ACTION OR JUDGMENT FOR WHICH THE MUNICIPAL CORPORATION HAS ESTABLISHED A
23 RESERVE FUND UNDER ANY OTHER PROVISION OF LAW.
24 (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, WHERE
25 A MUNICIPAL CORPORATION HAS PREVIOUSLY ESTABLISHED A RESERVE FUND UNDER
26 ANOTHER PROVISION OF LAW FOR A TYPE OF RISK FOR WHICH EXPENDITURES MAY
27 BE MADE UNDER PARAGRAPH (A) OF THIS SUBDIVISION, THE MUNICIPAL CORPO-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15193-01-2
S. 7265 2
1 RATION MAY, BY RESOLUTION, DISCONTINUE SUCH OTHER RESERVE FUND AND
2 TRANSFER ANY UNEXPENDED BALANCE TO THE RESERVE FUND ESTABLISHED UNDER
3 THIS SECTION; PROVIDED, HOWEVER, THAT TO THE EXTENT SUCH UNEXPENDED
4 BALANCE IS SUBJECT TO ANY LIABILITIES INCURRED OR ACCRUED AGAINST THE
5 OTHER RESERVE FUND, ANY UNEXPENDED BALANCES SO TRANSFERRED SHALL ONLY
6 BE USED FOR SUCH INCURRED OR ACCRUED LIABILITIES INCLUDING EXPENSES IN
7 CONNECTION THEREWITH. PRIOR TO THE DISCONTINUANCE OF THE OTHER RESERVE
8 FUND, THE FISCAL AND LEGAL OFFICERS OF THE MUNICIPAL CORPORATION SHALL
9 CERTIFY TO THE GOVERNING BOARD THEREOF THE AMOUNT THAT MAY BE NECESSARY
10 TO SATISFY ALL LIABILITIES INCURRED OR ACCRUED AGAINST IT.
11 3. THERE MAY BE PAID INTO SUCH FUND:
12 (A) SUCH AMOUNTS AS MAY BE PROVIDED BY BUDGETARY APPROPRIATIONS;
13 (B) AMOUNTS FROM ANY OTHER FUND AUTHORIZED BY THIS CHAPTER BY RESOL-
14 UTION SUBJECT TO PERMISSIVE REFERENDUM; AND
15 (C) SUCH OTHER FUNDS AS MAY BE LEGALLY APPROPRIATED.
16 4. THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE
17 MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR
18 THE CHIEF FISCAL OFFICER OF SUCH MUNICIPAL CORPORATION, IF THE GOVERNING
19 BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN
20 SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY
21 INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR
22 INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND.
23 5. THE CHIEF FISCAL OFFICER SHALL ACCOUNT FOR THIS FUND SEPARATE AND
24 APART FROM ALL OTHER FUNDS OF THE MUNICIPAL CORPORATION. SUCH ACCOUNTING
25 SHALL SHOW: THE SOURCE, DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND;
26 THE INTEREST EARNED BY SUCH FUND; CAPITAL GAINS OR LOSSES RESULTING FROM
27 THE SALE OF INVESTMENTS OF THIS FUND; THE ORDER, PURPOSE THEREOF, DATE
28 AND AMOUNT OF EACH PAYMENT FROM THIS FUND; THE ASSETS OF THE FUND,
29 INDICATING CASH BALANCE AND A SCHEDULE OF INVESTMENTS. THE CHIEF FISCAL
30 OFFICER, WITHIN SIXTY DAYS OF THE END OF EACH FISCAL YEAR, SHALL FURNISH
31 A DETAILED REPORT OF THE OPERATION AND CONDITION OF THIS FUND TO THE
32 GOVERNING BOARD. THE CHIEF FISCAL OFFICER SHALL ALSO KEEP A SEPARATE
33 ACCOUNT FOR EACH KIND OF RISK FUNDED PURSUANT TO SUBDIVISION TWO OF THIS
34 SECTION.
35 6. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, MUNICIPAL
36 CORPORATIONS SHALL NOT HAVE THE POWER TO ENTER INTO AGREEMENTS, AMONG
37 THEMSELVES OR ONE FOR THE OTHER, TO POOL THEIR RESERVE FUND ESTABLISHED
38 PURSUANT TO SUBDIVISION TWO OF THIS SECTION FOR THE PAYMENT OF JUDG-
39 MENTS, ACTIONS AND CLAIMS.
40 7. ANY ACTION OR CLAIM SHALL BE COMPROMISED OR SETTLED BY THE GOVERN-
41 ING BOARD, OFFICER OR EMPLOYEE OF THE MUNICIPAL CORPORATION AUTHORIZED
42 TO SETTLE OR COMPROMISE ACTIONS OR CLAIMS ON BEHALF OF THE MUNICIPAL
43 CORPORATION.
44 8. AN EXPENDITURE MAY BE MADE FROM THIS FUND FOR THE PAYMENT OF ALL OR
45 PART OF THE COST, INCLUDING INTEREST, OF:
46 (A) JUDGMENTS;
47 (B) ACTIONS THAT HAVE BEEN COMPROMISED OR SETTLED AND THAT HAVE BEEN
48 APPROVED BY THE COURT IN WHICH THE ACTION OR PROCEEDING IS PENDING;
49 (C) CLAIMS THAT HAVE BEEN SETTLED OR COMPROMISED AND THAT HAVE BEEN
50 APPROVED BY A JUSTICE OF THE SUPREME COURT OF THE JUDICIAL DISTRICT IN
51 WHICH THE MUNICIPAL CORPORATION IS LOCATED; AND
52 (D) CLAIMS AND LIABILITIES GENERATED THROUGH THE PROVISION OF HEALTH
53 CARE BENEFITS THROUGH SELF-INSURANCE INCLUDING, BUT NOT LIMITED TO
54 DIRECT CASH REIMBURSEMENT TO OFFICERS AND EMPLOYEES FOR HEALTH CARE
55 EXPENSES.
S. 7265 3
1 9. THE ORDER OF THE COURT OR THE JUSTICE APPROVING SUCH SETTLEMENT OR
2 COMPROMISE MAY BE GRANTED UPON MOTION OF THE BODY, OFFICER OR EMPLOYEE
3 OF THE MUNICIPAL CORPORATION AUTHORIZED TO DO SO, SUPPORTED BY AN AFFI-
4 DAVIT SETTING FORTH THE CAUSE OF ACTION OR CLAIM AGAINST THE MUNICIPAL
5 CORPORATION AND ALSO SUCH OTHER INFORMATION WHICH, IN ITS OR HIS OPIN-
6 ION, WILL ENABLE THE COURT OR JUSTICE TO ARRIVE AT A DETERMINATION THAT
7 SUCH COMPROMISE OR SETTLEMENT IS JUST, REASONABLE AND TO THE INTEREST OF
8 THE MUNICIPAL CORPORATION. SUCH BODY, OFFICER OR EMPLOYEE MAY ALSO PRES-
9 ENT THE AFFIDAVIT OF OTHER PERSONS IN SUPPORT OF SUCH MOTION. THE COURT
10 OR THE JUSTICE, IN ORDER TO ARRIVE AT SUCH A DETERMINATION, MAY REQUIRE
11 SUCH BODY, OFFICER OR EMPLOYEE TO PRESENT ADDITIONAL INFORMATION BY A
12 SUPPLEMENTARY AFFIDAVIT OR AFFIDAVITS OR MAY REQUIRE OTHER PERSONS TO
13 PRESENT ADDITIONAL INFORMATION BY THEIR AFFIDAVITS.
14 10. NOTWITHSTANDING SUBDIVISIONS SEVEN AND EIGHT OF THIS SECTION OR
15 ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE GOVERNING BODY OF ANY
16 MUNICIPAL CORPORATION MAY, WITHOUT JUDICIAL APPROVAL, COMPROMISE OR
17 SETTLE ANY ACTION OR CLAIM AND MAKE AN EXPENDITURE FROM THIS FUND WHERE
18 THE AMOUNT OF SUCH SETTLEMENT OR COMPROMISE DOES NOT EXCEED TWENTY-FIVE
19 THOUSAND DOLLARS.
20 11. THE MEMBERS OF THE GOVERNING BOARD SHALL BE GUILTY OF A MISDEMEA-
21 NOR IF THEY:
22 (A) AUTHORIZE A WITHDRAWAL FROM THIS FUND FOR ANY PURPOSE EXCEPT AS
23 PROVIDED IN THIS SECTION; OR
24 (B) EXPEND ANY MONEY WITHDRAWN FROM THIS FUND FOR A PURPOSE OTHER THAN
25 AS PROVIDED IN THIS SECTION.
26 12. IF, AFTER THE ESTABLISHMENT OF SUCH FUND, THE MUNICIPALITY DETER-
27 MINES THAT SUCH FUND IS NO LONGER NEEDED, THE MONEYS REMAINING IN SUCH
28 FUND MAY BE TRANSFERRED TO ANY OTHER RESERVE FUND OF THE MUNICIPAL
29 CORPORATION AUTHORIZED BY THIS CHAPTER THAT IS COMPRISED OF MONEYS WHICH
30 WERE RAISED ON THE SAME TAX BASE AS THE MONEYS IN THE RESERVE FUND
31 ESTABLISHED UNDER THIS SECTION OR SECTION THIRTY-SIX HUNDRED FIFTY-ONE
32 OF THE EDUCATION LAW, ONLY TO THE EXTENT THAT THE MONEYS IN THIS FUND
33 SHALL EXCEED THE SUM SUFFICIENT TO PAY ALL LIABILITIES INCURRED OR
34 ACCRUED AGAINST IT. PRIOR TO THE DISCONTINUANCE OF SUCH FUND, THE FISCAL
35 AND LEGAL OFFICERS OF SUCH MUNICIPAL CORPORATION SHALL CERTIFY TO THE
36 GOVERNING BOARD THEREOF THE AMOUNT THAT MAY BE NECESSARY TO RETAIN IN
37 SUCH FUND TO SATISFY ALL LIABILITIES INCURRED OR ACCRUED AGAINST IT AND
38 SUCH SUM SHALL BE RETAINED IN THE FUND FOR PAYMENT OF SUCH AMOUNTS OR
39 UNTIL LATER CERTIFIED THAT SUCH FUNDS ARE NO LONGER NEEDED.
40 S 2. This act shall take effect immediately.
