S T A T E O F N E W Y O R K
________________________________________________________________________
4925
2015-2016 Regular Sessions
I N S E N A T E
April 23, 2015
___________
Introduced by Sen. SEWARD -- (at request of the State Comptroller) --
read twice and ordered printed, and when printed to be committed to
the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to eliminat-
ing certain unconstitutional language relating to the pre-audit of
expenditures from the state insurance fund by the state comptroller
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 88 of the workers' compensation law, as amended by
chapter 6 of the laws of 2007, is amended to read as follows:
S 88. Administration expenses. The entire expense of administering the
state insurance fund shall be paid out of such fund WHICH SHALL NOT BE
CONSIDERED AN AGENCY OR A FUND OF THE STATE FOR THE PURPOSES OF SECTION
FOUR OF THE STATE FINANCE LAW. The portion of such expenses applicable
and chargeable to the disability benefits fund [and the medical and
hospital malpractice fund] shall be determined on an equitable basis
with due allowance for the division of overhead expenses. Not later than
the first day of November there shall be submitted to the director of
the budget for his approval an estimated budget of expenditures for the
succeeding calendar year having due regard to the business interests and
contract obligations of the fund. There may not be expended for the
state insurance fund for purposes of administration more than the
amounts specified in such budget for each item of expenditure, except as
authorized by the director of the budget. THERE SHALL BE SUBMITTED TO
THE DIRECTOR OF THE BUDGET QUARTERLY FINANCIAL STATEMENTS ON A CALENDAR
YEAR BASIS. In no case shall the amount of ADMINISTRATIVE expenditures
so authorized for an entire year [for] FROM THE workers' compensation
[insurance] FUND exceed twenty-five per centum of the earned premiums
for such insurance for that year. In no case shall the amount of ADMIN-
ISTRATIVE expenditures authorized for the disability benefits fund for
an entire year exceed twenty-five per centum of the premiums earned by
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03006-01-5
S. 4925 2
that fund FOR SUCH INSURANCE FOR THAT YEAR. [In no case shall the amount
of expenditures authorized for the medical and hospital malpractice fund
for an entire year exceed twenty-five per centum of the premiums earned
by that fund.] If there be officers or employees of the department whose
duties relate partly to the general work of the department and partly to
the work of the state insurance fund, and in case there is other expense
which is incurred jointly on behalf of the general work of the depart-
ment and the state insurance fund, an equitable apportionment of the
expense shall be made and the part thereof which is applicable to the
state insurance fund shall be chargeable thereto. The expenses of the
department of audit and control incurred in connection with the pre-au-
dit of expenditures of the state insurance fund, as required by section
one hundred eleven of the state finance law, shall be a charge against
and be paid out of the moneys of the state insurance fund and there
shall be included in the annual estimate submitted pursuant to this
section an amount sufficient to pay such expenses for the period covered
by such estimate. Notwithstanding section four of the state finance law,
the state comptroller is authorized to process or approve payments
related to business taxes, various workers' compensation board assess-
ments and assessments related to the workers' compensation rating board
directly from the fund's accounts without explicit appropriation author-
ity. The commissioner of labor shall include in his annual report to the
legislature a statement of the commissioners showing the expense of
administering the state fund for the preceding year. All appointments to
positions in the state insurance fund shall be made subject to civil
service requirements.
S 2. Section 88 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, is amended to read as follows:
[S 88. Administration expenses. The entire expense of administering
the state insurance fund shall be paid out of such fund which shall not
be considered an agency or a fund of the state for the purposes of
section four of the state finance law. The portion of such expenses
applicable and chargeable to the disability benefits fund shall be
determined on an equitable basis with due allowance for the division of
overhead expenses. There shall be submitted to the director of the budg-
et quarterly financial statements on a calendar year basis. In no case
shall the amount of administrative expenditures so authorized for an
entire year from the workers' compensation fund exceed twenty-five per
centum of the earned premiums for such insurance for that year. In no
case shall the amount of administrative expenditures authorized for the
disability benefits fund for an entire year exceed twenty-five per
centum of the premiums earned by that fund for such insurance for that
year. No payment, expenditure or refund out of the state insurance fund
shall be subject to pre-audit by the department of audit and control as
provided by section one hundred eleven of the state finance law. All
appointments to positions in the state insurance fund shall be made
subject to civil service requirements.]
S 3. This act shall take effect immediately; provided, however that
section one of this act shall be deemed to have been in full force and
effect on and after April 1, 1996.