Bill Text: NY S07756 | 2015-2016 | General Assembly | Introduced
Bill Title: Grants the Minisink Valley central school district the authority to establish insurance reserve funds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-06-16 - SUBSTITUTED BY A10196 [S07756 Detail]
Download: New_York-2015-S07756-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7756 IN SENATE May 12, 2016 ___________ Introduced by Sen. BONACIC -- 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 insurance reserve funds of certain school districts 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 433 of the laws of 2014, 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 [in the case of] the Scarsdale union free school district[,18an insurance reserve fund may be established] and the Minisink Valley 19 central school district may establish insurance reserve funds in compli- 20 ance with this section and article seventy-four of the education law and 21 such school [district] districts may make expenditures in compliance 22 with this section and article seventy-four of the education law from 23 such reserve fund for any loss, claim, action or judgment for which the 24 school [district is] districts are authorized or required to purchase or 25 maintain insurance for the kinds of risks for which insurance is author- 26 ized pursuant to paragraph three of subsection (a) of section one thou- 27 sand one hundred thirteen of the insurance law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15434-01-6S. 7756 2 1 § 2. The education law is amended by adding a new section 3653 to read 2 as follows: 3 § 3653. Insurance reserve funds. In addition to the provisions of this 4 article and to the provisions of section six-n of the general municipal 5 law, any school district that establishes and maintains an insurance 6 reserve fund to make expenditures from such reserve fund for any loss, 7 claim, action, or judgment for which the school district is authorized 8 or required to purchase or maintain insurance for the kinds of risks for 9 which insurance is authorized pursuant to paragraph three of subsection 10 (a) of section eleven hundred thirteen of the insurance law, pursuant to 11 section six-n of the general municipal law or any other chapter of law, 12 shall make all reserve fund transactions transparent to the public by 13 adopting a written insurance reserve fund policy, to be posted on the 14 school district's website, that includes: the purpose of the reserve 15 fund, the optimal amount of funding of the reserve fund, its intended 16 duration, the conditions under which reserve fund assets will be used or 17 replenished, a periodic analysis by the school board of the reserve fund 18 balances to determine if reserves are at reasonable and appropriate 19 levels, how the school authorities should reduce reserve funds to 20 reasonable levels when conditions warrant, how school authorities will 21 discontinue the reserve fund if no longer needed and any additional 22 policies that the school authorities deem appropriate. 23 § 3. This act shall take effect immediately.
