Bill Text: NY S02065 | 2021-2022 | General Assembly | Introduced


Bill Title: Authorizes school districts to establish an insurance reserve fund in an amount and manner determined by a qualified and independent actuary certified by the American Academy of Actuaries to be reasonable and necessary.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced) 2021-01-19 - REFERRED TO LOCAL GOVERNMENT [S02065 Detail]

Download: New_York-2021-S02065-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          2065

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 19, 2021
                                       ___________

        Introduced  by  Sens.  JORDAN,  AKSHAR, BOYLE, GALLIVAN, TEDISCO -- 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
          all school districts to establish reserve funds

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

     1    Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
     2  al  municipal  law,  as  amended  by chapter 246 of the laws of 2020, is
     3  amended to read as follows:
     4    (a) The governing board of any municipal corporation may  establish  a
     5  reserve  fund  to  be  known  as  the  insurance  reserve fund. Upon the
     6  creation of the fund, the municipality may make  expenditures  from  the
     7  fund  for  any  loss,  claim, action or judgment for which the municipal
     8  corporation is authorized or required to purchase or maintain insurance,
     9  except those kinds of risks for which insurance is  authorized  pursuant
    10  to  paragraph  one,  two,  three, fifteen, sixteen, seventeen, eighteen,
    11  twenty-two or twenty-three of subsection (a) of section one thousand one
    12  hundred thirteen of the insurance  law,  or  for  payments  in  lieu  of
    13  contributions under article eighteen of the labor law; provided however,
    14  that  no  municipality  shall make an expenditure from such fund for any
    15  loss, claim, action or judgment for which the municipal corporation  has
    16  established  a  reserve fund under any other provision of law; provided,
    17  further that the Scarsdale union free school  district,  the  Mamaroneck
    18  union free school district, the Minisink Valley central school district,
    19  the  Vernon  Verona  Sherrill  central  school district, the Ithaca city
    20  school  district,  the  Kenmore-Town  of  Tonawanda  union  free  school
    21  district,  the Bedford central school district, the Grand Island central
    22  school district, the Tonawanda city school district, the  enlarged  city
    23  school district of Middletown, the Frontier central school district, and
    24  the  Binghamton  city  school district and any other school district may

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00809-01-1

        S. 2065                             2

     1  establish insurance reserve funds in compliance with  this  section  and
     2  article  seventy-four  of  the  education  law,  in an amount and manner
     3  determined by a qualified and independent actuary certified by the Amer-
     4  ican  Academy  of  Actuaries  to  be  reasonable and necessary, and such
     5  school districts may make expenditures in compliance with  this  section
     6  and article seventy-four of the education law from such reserve fund for
     7  any  loss,  claim, action or judgment for which the school districts are
     8  authorized or required to purchase or maintain insurance for  the  kinds
     9  of  risks  for which insurance is authorized pursuant to paragraph three
    10  of subsection (a) of section one thousand one hundred  thirteen  of  the
    11  insurance law.
    12    §  2.  This act shall take effect on the first of July next succeeding
    13  the date on which it shall have become a law.
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