Bill Text: NY S07756 | 2015-2016 | General Assembly | Introduced

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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

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                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[,
    18  an  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.
                                                                   LBD15434-01-6
        S. 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.