S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    697
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Labor
 
 AN ACT to amend the general municipal law, the workers' compensation law
   and the insurance law, in relation to participation in a public  group
   self-insurer
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of subdivision 2 of section 119-o of the gener-
 al municipal law, as amended by chapter 681 of  the  laws  of  1961,  is
 amended to read as follows:
   b.  The  manner  of employing, engaging, compensating, transferring or
 discharging necessary personnel, subject, however, to the provisions  of
 the  civil  service  law  where  applicable;  the  making  of employer's
 contributions for retirement, social security, health  insurance,  work-
 men's  compensation,  INCLUDING PARTICIPATION IN A PUBLIC GROUP SELF-IN-
 SURER, and other  similar  benefits;  the  approval  of  attendances  at
 conventions,  conferences  and  schools  for  public  officials  and the
 approval and payment of  travel  and  other  expenses  incurred  in  the
 performance  of  official duties; the bonding of designated officers and
 employees; the filing of oaths of  office  and  resignations  consistent
 with  general  laws  applicable  thereto;  provisions  that for specific
 purposes designated officers or employees of  the  joint  service  or  a
 joint water, sewage or drainage project shall be deemed those of a spec-
 ified participating corporation or district; and provisions that person-
 nel  assigned  to  a  joint service or a joint water, sewage or drainage
 project shall possess the same powers, duties, immunities and privileges
 they would ordinarily possess (1) if they performed their duties only in
 the corporation or district by which they are employed or  (2)  if  they
 were  employed by the corporation or district in which they are required
 to perform their duties.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00644-01-7
              

 A. 697                              2
 
   § 2. Paragraph 1, subparagraphs (a),  (b)  and  (h)  of  paragraph  2,
 subparagraph  (a)  and  item  e  of  subparagraph (d) of paragraph 5 and
 subparagraph (a) of paragraph 6 of subdivision 3-a of section 50 of  the
 workers'  compensation  law, paragraph 1, subparagraph (a) and item e of
 subparagraph  (d)  of paragraph 5 and subparagraph (a) of paragraph 6 as
 amended by chapter 139 of the laws of 2008 and  subparagraphs  (a),  (b)
 and  (h)  of paragraph 2 as amended by section 4 of part G of chapter 57
 of the laws of 2011, are amended to read as follows:
   (1) Definitions. As used in this chapter the  term  "employers"  shall
 include:  (a) employers with related activity in a given industry [which
 shall include municipal corporations as that term is defined in sections
 two and six-n of the  general  municipal  law,]  employing  persons  who
 perform  work in connection with the given industry, (b) an incorporated
 or unincorporated association or associations consisting exclusively  of
 such  employers  provided  they  employ persons who perform such related
 work in the given industry,  and  (c)  a  combination  of  employers  as
 described  in subparagraph (a) hereof and an association or associations
 of employers as described in subparagraph (b) hereof.
   (a) Any group consisting exclusively of such  employers  may  adopt  a
 plan  for  self-insurance,  as  a group, for the payment of compensation
 under this chapter to their employees, except that  no  new  groups  may
 adopt  such  a plan, and no group not composed solely of public entities
 set forth in [paragraph a of] subdivision [four] THREE-F of this section
 may insure any liabilities for any employers on and after January first,
 two thousand twelve, except as provided for in  paragraph  ten  of  this
 subdivision. Under such plan the group shall assume the liability of all
 the  employers  within  the group and pay all compensation for which the
 said employers are liable under this chapter[, except that in  the  case
 of municipal corporations as herein defined no proof of financial abili-
 ty or deposit of securities or cash need be made in compliance with this
 subdivision]. The group qualifying under this subdivision shall be known
 as  a  group  self-insurer  and  the employers participating therein and
 covered thereby shall be known as members.
   (b) Where such plan is adopted the group self-insurer, EXCEPT A  GROUP
 COMPOSED  SOLELY  OF PUBLIC ENTITIES SET FORTH IN SUBDIVISION THREE-F OF
 THIS SECTION, shall furnish satisfactory  proof  to  the  chair  of  its
 financial ability to pay such compensation for the members in the indus-
 try  covered  by it, its revenues, their source and assurance of contin-
 uance. The chair shall require the deposit with the chair of such  secu-
 rities as may be deemed necessary of the kind prescribed in subdivisions
 one,  two, three, four and five, and subparagraph (a) of paragraph three
 of subdivision seven of section two hundred thirty-five of  the  banking
 law or the deposit of cash or the filing of irrevocable letters of cred-
 it issued by a qualified banking institution as defined by rules promul-
 gated  by  the chair or the filing of a bond of a surety company author-
 ized to transact business in this state, in an amount to  be  determined
 to  secure  its  liability  to  pay the compensation of each employer as
 above provided.  Such surety bond must be approved as  to  form  by  the
 chair.  The chair shall require each group self-insurer to provide regu-
 lar reports no less than annually, which shall include but not be limit-
 ed to audited  financial  statements,  actuarial  opinions  and  payroll
 information containing proof that it is fully funded. Such reports shall
 also  include  a  contribution year analysis detailing contributions and
 expenses associated with each specific contribution year.  For  purposes
 of this paragraph, proof that a group self-insurer is fully funded shall
 at  a minimum include proof of unrestricted cash and investments permit-

 A. 697                              3
 
 ted by regulation of the chair of at least one hundred  percent  of  the
 total  liabilities,  including  the  estimate presented in the actuarial
 opinion submitted by the group  self-insurer  in  accordance  with  this
 chapter.  The  chair  by regulation, may set further financial standards
 for group self-insurers. Any group self-insurer that fails to show  that
 it  is  fully funded shall be deemed underfunded, and must submit a plan
 for achieving fully funded status which may include a deficit assessment
 on members of such group self-insurer which shall be subject to approval
 or modification by the chair.
   (h) Any member terminating membership in a PRIVATE group  self-insurer
 after  less  than four years in such PRIVATE group self-insurer, and any
 member in a group self-insurer that has defaulted,  shall  be  precluded
 from  obtaining prospective coverage from any PRIVATE group self-insurer
 for a period of at least three years from the effective date  of  termi-
 nation.
   (a) Each PRIVATE group self-insurer shall, AND EACH GROUP SELF-INSURER
 MAY,  secure the services of a group administrator to be responsible for
 assisting the group self-insurer in complying  with  the  provisions  of
 this  section  and  the rules and regulations promulgated hereunder, and
 for coordinating services including but not limited to  claims  process-
 ing,  loss control, legal, accounting and actuarial services. No person,
 firm or corporation shall coordinate such services  or  otherwise  carry
 out  the  tasks of a group administrator as provided in this subdivision
 or in the regulations issued pursuant thereto on behalf of a group self-
 insurer unless such person shall have obtained from the chair a  license
 authorizing  it  to  act  as  a  group self-insurer administrator, which
 license may be revoked for good cause. The chair shall promulgate  regu-
 lations  setting  forth  any additional qualifications for such license,
 governing the conduct and compensation of group self-insurer administra-
 tors, and setting a license fee in an amount not less than five thousand
 dollars per year for such license for each group self-insurer the admin-
 istrator administers. Each administrator shall post a bond in the amount
 of five hundred thousand dollars for each  group  self-insurer  adminis-
 tered  or such other amount as may be set by the chair based on the cost
 and availability of such bond, from which  the  chair  may  recover  any
 recoveries  or  penalties  against the administrator under this section.
 Nothing in this section shall relieve the trustees of a  group  self-in-
 surer of any fiduciary obligation they hold to the other members of such
 group self-insurer.
   e. the number and amount of rate deviations provided to members during
 the  prior  year  and  whether the recipient of any such deviation was a
 trustee, PROVIDED THAT THE APPLICATION OF RATING  FACTORS  IN  A  MANNER
 CONSISTENT  WITH  THE FILED RATING PLAN IS NOT A DEVIATION WHICH MUST BE
 REPORTED UNDER THIS SUBDIVISION; and
   (a) Group self-insurers must file with the board, as soon as practica-
 ble but no later than sixty days prior to the start of the fund  year  a
 rating plan which is supported by an actuarial rate study prepared by an
 independent,  qualified  actuary  that  is  a fellow or associate of the
 casualty actuarial society, that clearly identifies the actuary's  indi-
 cated  rate assumptions therein. The rating plan must apply consistently
 to all members, and must provide for  a  common  renewal  date  for  all
 PRIVATE  group  self-insurer  members.  The  rates filed can be adjusted
 based on an experience  modification  calculated  for  every  member  in
 accordance  with  the experience rating plan promulgated by the workers'
 compensation rating board.  Experience  modification  formulas  must  be
 applied identically to all members. Other rate deviations may be permis-

 A. 697                              4
 
 sible  provided  a  plan has been approved by the board. Such deviations
 shall not be in excess of ten percent of the  actuary's  indicated  rate
 unless otherwise approved by the board for a fully funded group self-in-
 surer,  and  shall in no event result in amounts less than the actuary's
 overall indicated rate. The chair by regulation  may  set  further  rate
 plan and actuarial reporting standards.
   §  3.  Paragraph  (g) of subdivision 3-e of section 50 of the workers'
 compensation law, as added by chapter  729  of  the  laws  of  1993,  is
 amended and a new subdivision 3-f is added to read as follows:
   (g)  The state insurance fund, any other insurer or any group self-in-
 surer for municipal corporations as  defined  in  subdivision  [three-a]
 THREE-F  of  this  section  may, at its option, offer a deductible in an
 amount specified in paragraph (c) of this subdivision to any policyhold-
 er who is not otherwise eligible for a deductible  under  this  subdivi-
 sion.
   3-F.  (1)  ANY  GROUP CONSISTING EXCLUSIVELY OF MUNICIPAL CORPORATIONS
 AND PUBLIC CORPORATIONS AS SUCH TERMS ARE DEFINED IN  SECTION  SIXTY-SIX
 OF THE GENERAL CONSTRUCTION LAW, COUNTY SELF-INSURANCE PLANS ESTABLISHED
 UNDER  ARTICLE  FIVE  OF THIS CHAPTER, BOARDS OF COOPERATIVE EDUCATIONAL
 SERVICES AND CONSORTIA ESTABLISHED BY BOARDS OF COOPERATIVE  EDUCATIONAL
 SERVICES  MAY  ADOPT  A  PLAN  FOR  SELF-INSURANCE,  AS A GROUP, FOR THE
 PAYMENT OF COMPENSATION UNDER THIS  CHAPTER  TO  THEIR  EMPLOYEES.  SUCH
 GROUP SHALL BE KNOWN AS A "PUBLIC GROUP SELF-INSURER".  ALL OTHER GROUPS
 ESTABLISHED  UNDER  THIS  SECTION  ARE  "PRIVATE GROUP SELF-INSURERS". A
 COUNTY SELF-INSURANCE PLAN ESTABLISHED UNDER ARTICLE FIVE OF THIS  CHAP-
 TER IS NOT ITSELF A PUBLIC GROUP SELF-INSURER, AND IS NOT ITSELF SUBJECT
 TO  THE  REQUIREMENTS OF THIS SECTION, BUT MAY JOIN A PUBLIC GROUP SELF-
 INSURER AND, IF IT DOES SO, SHALL ASSUME ALL OF THE OBLIGATIONS  OF  ITS
 PARTICIPANTS  TO THE PUBLIC GROUP SELF-INSURER. NO ENTITY WHICH IS NOT A
 MUNICIPAL CORPORATION AS DEFINED IN SECTION  SIXTY-SIX  OF  THE  GENERAL
 CONSTRUCTION LAW, A COUNTY SELF-INSURANCE PLAN ESTABLISHED UNDER ARTICLE
 FIVE  OF THIS CHAPTER, OR A CONSORTIUM ESTABLISHED BY A BOARD OF COOPER-
 ATIVE EDUCATIONAL SERVICES, MAY JOIN A PUBLIC GROUP SELF-INSURER  UNLESS
 IT MAY LEVY TAXES OR IS OTHERWISE DIRECTLY CAPABLE OF GENERATING REVENUE
 IN THE EVENT OF A FUNDING DEFICIENCY WITHIN THE PUBLIC GROUP SELF-INSUR-
 ER,  OR ITS OBLIGATIONS ARE GUARANTEED BY ANOTHER MEMBER WHICH IS SUCH A
 MUNICIPAL CORPORATION. A PUBLIC GROUP SELF-INSURER SHALL COMPLY WITH ALL
 OF THE REQUIREMENTS OF SUBDIVISION THREE-A  OF  THIS  SECTION;  PROVIDED
 HOWEVER  THAT  NO  PROOF  OF  FINANCIAL  ABILITY TO PAY THE COMPENSATION
 PROVIDED FOR BY THIS CHAPTER OR DEPOSIT OF SECURITIES SHALL BE  REQUIRED
 AND,  IN  LIEU THEREOF, THE LIABILITY OF THE PUBLIC GROUP SELF-INSURER'S
 MEMBERS SHALL SERVE AS THE SECURITY  REQUIRED  UNDER  PARAGRAPH  TWO  OF
 SUBDIVISION  THREE-A  OF  THIS  SECTION.  THE  CHAIR SHALL IMPLEMENT THE
 PROVISIONS OF THIS SUBDIVISION BY PROMULGATING  RULES  AND  REGULATIONS,
 WHICH  SHALL  INCLUDE  PROVISIONS  ESTABLISHING  AN  AGGREGATE  SECURITY
 REQUIREMENT, GUARANTEE FUND, OR OTHER MECHANISM TO PROVIDE INTERIM FUND-
 ING WHENEVER THE CHAIR SHALL DETERMINE THAT THE COMPENSATION  AND  BENE-
 FITS  PROVIDED BY THIS CHAPTER MAY BE UNPAID BY REASON OF THE DEFAULT OF
 THE PUBLIC GROUP SELF-INSURER, BUT NO SUCH RULES AND  REGULATIONS  SHALL
 BE NECESSARY FOR ANY PROVISIONS OF THIS SUBDIVISION TO BE EFFECTIVE.
   (2)  A  PUBLIC  GROUP SELF-INSURER AS DEFINED IN PARAGRAPH ONE OF THIS
 SUBDIVISION MAY OFFER, AS PART  OF  THE  AGREEMENT  OR  BY  ENDORSEMENT,
 DEDUCTIBLES OPTIONAL TO THE MEMBER FOR BENEFITS PAYABLE UNDER THE AGREE-
 MENT, UPON A DETERMINATION BY THE CHAIR THAT THE PLAN IS SUPPORTED BY AN
 ACTUARIAL  ANALYSIS PREPARED BY AN INDEPENDENT, QUALIFIED ACTUARY WHO IS
 A MEMBER OF THE CASUALTY ACTUARIAL SOCIETY THAT CLEARLY  IDENTIFIES  THE

 A. 697                              5
 
 ACTUARY'S  INDICATED DEDUCTIBLE CREDIT AND RATE ASSUMPTIONS, AND SUBJECT
 TO UNDERWRITING BY THE PUBLIC GROUP SELF-INSURER,  CONSISTENT  WITH  THE
 FOLLOWING STANDARDS OR FACTORS:
   (A)  CLAIMANTS'  RIGHTS ARE PROPERLY PROTECTED AND CLAIMANTS' BENEFITS
 ARE PAID WITHOUT REGARD TO ANY SUCH DEDUCTIBLE;
   (B) APPROPRIATE PREMIUM REDUCTIONS REFLECT THE TYPE AND LEVEL  OF  ANY
 DEDUCTIBLE APPROVED BY THE CHAIRMAN AND SELECTED BY THE MEMBER;
   (C)  PREMIUM REDUCTIONS FOR DEDUCTIBLES ARE DETERMINED BEFORE APPLICA-
 TION OF ANY  EXPERIENCE  MODIFICATION,  PREMIUM  SURCHARGE,  OR  PREMIUM
 DISCOUNT;
   (D)  RECOGNITION  IS  GIVEN TO MEMBER CHARACTERISTICS, INCLUDING SIZE,
 FINANCIAL CAPABILITIES, NATURE OF ACTIVITIES, AND NUMBER OF EMPLOYEES;
   (E) IF THE MEMBER SELECTS A DEDUCTIBLE, THE MEMBER IS  LIABLE  TO  THE
 PUBLIC  GROUP  SELF-INSURER FOR THE DEDUCTIBLE AMOUNT IN REGARD TO BENE-
 FITS PAID FOR COMPENSABLE CLAIMS;
   (F) THE PUBLIC GROUP SELF-INSURER PAYS ALL OF THE  DEDUCTIBLE  AMOUNT,
 APPLICABLE TO A COMPENSABLE CLAIM, TO THE PERSON OR PROVIDER ENTITLED TO
 BENEFITS AND REQUIRES THE MEMBER TO PAY TO IT IN ADVANCE AN AMOUNT ACTU-
 ARIALLY  DETERMINED  TO  BE SUFFICIENT TO PAY THE PORTION OF THE COMPEN-
 SATION CLAIM THAT IS WITHIN THE  DEDUCTIBLE  AMOUNT  AS  THOSE  PAYMENTS
 BECOME  DUE;  PROVIDED  THAT SUCH PERIODIC PAYMENTS SHALL BE PAID TO THE
 PUBLIC GROUP SELF-INSURER IN INTERVALS OF NO GREATER OF SIX MONTHS; AND
   (G) FAILURE TO REIMBURSE DEDUCTIBLE  AMOUNTS  BY  THE  MEMBER  TO  THE
 PUBLIC GROUP SELF-INSURER IS TREATED UNDER THE COVERAGE AGREEMENT IN THE
 SAME MANNER AS NONPAYMENT OF CONTRIBUTIONS.
   (3) IF, IN THE DETERMINATION OF THE CHAIR, A PUBLIC GROUP SELF-INSURER
 BECOMES  INSOLVENT  OR OTHERWISE DEFAULTS ON ITS OBLIGATIONS, THE INSOL-
 VENT GROUP WILL REQUIRE EACH MEMBER AND EACH  FORMER  MEMBER  TO  PAY  A
 SUPPLEMENTAL ASSESSMENT IN AN AMOUNT SUFFICIENT TO MAKE THE PUBLIC GROUP
 SELF-INSURER SOLVENT BASED UPON A FORMULA TO BE ESTABLISHED BY THE CHAIR
 IN  REGULATIONS  WHICH  CONSIDERS  THE MEMBERS' ANNUAL CONTRIBUTIONS AND
 LOSS EXPERIENCE; PROVIDED HOWEVER, NOTHING  HEREIN  SHALL  PRECLUDE  THE
 CHAIR  FROM DIRECTING THAT AN UNDERFUNDED PUBLIC GROUP SELF-INSURER LEVY
 AN ASSESSMENT ON ITS MEMBERS AS PART OF A PLAN IMPLEMENTED  PURSUANT  TO
 SUBPARAGRAPH  (B)  OF  PARAGRAPH  TWO  OF  SUBDIVISION  THREE-A  OF THIS
 SECTION. AS USED IN THIS PARAGRAPH,  INSOLVENT  MEANS  THE  SUM  OF  THE
 PUBLIC GROUP SELF-INSURERS' ASSETS BEING LESS THAN THE TOTAL COST OF ALL
 OF  THE  PUBLIC  GROUP  SELF-INSURER'S ANTICIPATED WORKERS' COMPENSATION
 LIABILITIES THAT WILL ACCRUE WITHIN THE SUCCEEDING  SIX  MONTHS.  IF  AN
 ASSESSMENT IS NOT SUFFICIENT TO CURE THE INSOLVENCY OR DEFAULT, (I) EACH
 MEMBER  AND  ANY  FORMER MEMBER WILL BE LIABLE FOR THE REMAINING DEFICIT
 BASED UPON A SUPPLEMENTAL ASSESSMENT FORMULA DETERMINED  BY  THE  CHAIR;
 AND  (II)  WHENEVER  THE CHAIR SHALL DETERMINE THAT THE COMPENSATION AND
 BENEFITS PROVIDED BY THIS CHAPTER MAY BE UNPAID BY REASON OF THE DEFAULT
 OF A PUBLIC GROUP SELF-INSURER, THE CHAIR SHALL  PAY  SUCH  COMPENSATION
 AND  BENEFITS  FROM  ADMINISTRATION  EXPENSES AS PROVIDED IN SECTION ONE
 HUNDRED FIFTY-ONE OF THIS CHAPTER UPON AUDIT AND WARRANT  OF  THE  COMP-
 TROLLER  UPON  VOUCHERS  APPROVED  BY  THE CHAIR. SUCH PAYMENTS SHALL BE
 CONSIDERED EXPENSES OF ADMINISTRATION. THE  CHAIR  SHALL  BE  REIMBURSED
 THEREFOR  FROM ANY MEMBER OF THE PUBLIC GROUP SELF-INSURER, FIRST PURSU-
 ANT TO THE SUPPLEMENTAL ASSESSMENT FORMULA DETERMINED BY THE CHAIR.
   § 4. The opening paragraph of section 3443 of the  insurance  law,  as
 added by chapter 924 of the laws of 1990, is amended to read as follows:
   An  insurer  issuing  a workers' compensation and employers' liability
 insurance policy, [and a group self-insurer for  municipal  corporations
 as  defined  in  subdivision  three-a  of  section fifty of the workers'

 A. 697                              6

 compensation law,] may offer, as part of the policy or  by  endorsement,
 deductibles  optional to the policyholder for benefits payable under the
 policy, subject to approval by the superintendent and subject to  under-
 writing  by  the  insurer,  consistent  with  the following standards or
 factors:
   § 5. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  697--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Labor --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the general municipal law, the workers' compensation
   law, the insurance law, the volunteer firefighters' benefit  law,  and
   the  volunteer  ambulance workers' benefit law, in relation to partic-
   ipation in a public group self-insurer
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of subdivision 2 of section 119-o of the gener-
 al  municipal  law,  as  amended  by chapter 681 of the laws of 1961, is
 amended to read as follows:
   b. The manner of employing, engaging,  compensating,  transferring  or
 discharging  necessary personnel, subject, however, to the provisions of
 the civil  service  law  where  applicable;  the  making  of  employer's
 contributions  for  retirement, social security, health insurance, work-
 men's compensation, VOLUNTEER FIREFIGHTER AND VOLUNTEER AMBULANCE WORKER
 BENEFITS, INCLUDING PARTICIPATION IN A PUBLIC  GROUP  SELF-INSURER,  and
 other  similar  benefits;  the  approval  of attendances at conventions,
 conferences and schools  for  public  officials  and  the  approval  and
 payment  of  travel  and  other  expenses incurred in the performance of
 official duties; the bonding of designated officers and  employees;  the
 filing  of oaths of office and resignations consistent with general laws
 applicable thereto; provisions that  for  specific  purposes  designated
 officers  or  employees of the joint service or a joint water, sewage or
 drainage project shall be deemed  those  of  a  specified  participating
 corporation  or  district;  and  provisions that personnel assigned to a
 joint service or a joint water, sewage or drainage project shall possess
 the same powers, duties, immunities and privileges they would ordinarily
 possess (1) if they performed their duties only in  the  corporation  or
 district  by which they are employed or (2) if they were employed by the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00644-04-7

 A. 697--A                           2
 
 corporation or district in which they  are  required  to  perform  their
 duties.
   §  2.  Paragraph  1,  subparagraphs  (a),  (b) and (h) of paragraph 2,
 subparagraph (a) and item e of  subparagraph  (d)  of  paragraph  5  and
 subparagraph  (a) of paragraph 6 of subdivision 3-a of section 50 of the
 workers' compensation law, paragraph 1, subparagraph (a) and item  e  of
 subparagraph  (d)  of paragraph 5 and subparagraph (a) of paragraph 6 as
 amended by chapter 139 of the laws of 2008, subparagraphs (a) and (h) of
 paragraph 2 as amended by section 4 of part G of chapter 57 of the  laws
 of  2011,  and subparagraph (b) of paragraph 2 as amended by section 1-a
 of subpart E of part NNN of chapter 59 of the laws of 2017, are  amended
 to read as follows:
   (1)  Definitions.  As  used in this chapter the term "employers" shall
 include: (a) employers with related activity in a given industry  [which
 shall include municipal corporations as that term is defined in sections
 two  and  six-n  of  the  general  municipal law,] employing persons who
 perform work in connection with the given industry, (b) an  incorporated
 or  unincorporated association or associations consisting exclusively of
 such employers provided they employ persons  who  perform  such  related
 work  in  the  given  industry,  and  (c)  a combination of employers as
 described in subparagraph (a) hereof and an association or  associations
 of employers as described in subparagraph (b) hereof.
   (a)  Any  group  consisting  exclusively of such employers may adopt a
 plan for self-insurance, as a group, for  the  payment  of  compensation
 under  this  chapter  to  their employees, except that no new groups may
 adopt such a plan, and no group not composed solely of  public  entities
 set forth in [paragraph a of] subdivision [four] THREE-F of this section
 may insure any liabilities for any employers on and after January first,
 two  thousand  twelve,  except  as provided for in paragraph ten of this
 subdivision. Under such plan the group shall assume the liability of all
 the employers within the group and pay all compensation  for  which  the
 said  employers  are liable under this chapter[, except that in the case
 of municipal corporations as herein defined no proof of financial abili-
 ty or deposit of securities or cash need be made in compliance with this
 subdivision]. The group qualifying under this subdivision shall be known
 as a group self-insurer and  the  employers  participating  therein  and
 covered thereby shall be known as members.
   (b)  Where such plan is adopted the group self-insurer, EXCEPT A GROUP
 COMPOSED SOLELY OF PUBLIC ENTITIES SET FORTH IN SUBDIVISION  THREE-F  OF
 THIS  SECTION,  shall  furnish  satisfactory  proof  to the chair of its
 financial ability to pay such compensation for the members in the indus-
 try covered by it, its revenues, their source and assurance  of  contin-
 uance.  The chair shall require the deposit with the chair of such secu-
 rities as may be deemed necessary of the kind prescribed in subdivisions
 one, two, three, four and five, and subparagraph (a) of paragraph  three
 of  subdivision  seven of section two hundred thirty-five of the banking
 law or the deposit of cash or the filing of irrevocable letters of cred-
 it issued by a qualified banking institution as defined by rules promul-
 gated by the chair or the filing of a bond of a surety  company  author-
 ized  to  transact business in this state, in an amount to be determined
 to secure its liability to pay the  compensation  of  each  employer  as
 above  provided.    Such  surety bond must be approved as to form by the
 chair. The chair shall require each group self-insurer to provide  regu-
 lar reports no less than annually, which shall include but not be limit-
 ed  to  audited  financial  statements,  actuarial  opinions and payroll
 information containing proof that it is fully funded. Such reports shall

 A. 697--A                           3
 
 also include a contribution year analysis  detailing  contributions  and
 expenses  associated  with each specific contribution year. For purposes
 of this paragraph, proof that a group self-insurer is fully funded shall
 at  a minimum include proof of unrestricted cash and investments permit-
 ted by regulation of the chair of at least one hundred  percent  of  the
 total  liabilities,  including  the  estimate presented in the actuarial
 opinion submitted by the group  self-insurer  in  accordance  with  this
 chapter.  The  chair  by regulation, may set further financial standards
 for group self-insurers. Any group self-insurer that fails to show  that
 it  is  fully funded shall be deemed underfunded, and must submit a plan
 for achieving fully funded status which may include a deficit assessment
 on members of such group self-insurer which shall be subject to approval
 or modification by the chair. The amount of such under-funding, as meas-
 ured by the actuarial opinion or assumption  of  loss  policy  quotation
 submitted by the group, shall be considered unfunded claims as set forth
 in  subdivision  two  of  section sixteen hundred eighty-q of the public
 authorities law as added by section 35 of Part GG of chapter 57  of  the
 laws of 2013.
   [(h)  Any  member terminating membership in a group self-insurer after
 less than four years in such group self-insurer, and  any  member  in  a
 group self-insurer that has defaulted, shall be precluded from obtaining
 prospective  coverage  from  any  group  self-insurer for a period of at
 least three years from the effective date of termination.]
   (a) Each PRIVATE group self-insurer shall, AND EACH GROUP SELF-INSURER
 MAY, secure the services of a group administrator to be responsible  for
 assisting  the  group  self-insurer  in complying with the provisions of
 this section and the rules and regulations  promulgated  hereunder,  and
 for  coordinating  services including but not limited to claims process-
 ing, loss control, legal, accounting and actuarial services. No  person,
 firm  or  corporation  shall coordinate such services or otherwise carry
 out the tasks of a group administrator as provided in  this  subdivision
 or in the regulations issued pursuant thereto on behalf of a group self-
 insurer  unless such person shall have obtained from the chair a license
 authorizing it to act  as  a  group  self-insurer  administrator,  which
 license  may be revoked for good cause. The chair shall promulgate regu-
 lations setting forth any additional qualifications  for  such  license,
 governing the conduct and compensation of group self-insurer administra-
 tors, and setting a license fee in an amount not less than five thousand
 dollars per year for such license for each group self-insurer the admin-
 istrator administers. Each administrator shall post a bond in the amount
 of  five  hundred  thousand dollars for each group self-insurer adminis-
 tered or such other amount as may be set by the chair based on the  cost
 and  availability  of  such  bond,  from which the chair may recover any
 recoveries or penalties against the administrator  under  this  section.
 Nothing  in  this section shall relieve the trustees of a group self-in-
 surer of any fiduciary obligation they hold to the other members of such
 group self-insurer.
   e. the number and amount of rate deviations provided to members during
 the prior year and whether the recipient of any  such  deviation  was  a
 trustee,  PROVIDED  THAT  THE  APPLICATION OF RATING FACTORS IN A MANNER
 CONSISTENT WITH THE FILED RATING PLAN IS NOT A DEVIATION WHICH  MUST  BE
 REPORTED UNDER THIS SUBDIVISION; and
   (a) Group self-insurers must file with the board, as soon as practica-
 ble  but  no later than sixty days prior to the start of the fund year a
 rating plan which is supported by an actuarial rate study prepared by an
 independent, qualified actuary that is a  fellow  or  associate  of  the

 A. 697--A                           4
 
 casualty  actuarial society, that clearly identifies the actuary's indi-
 cated rate assumptions therein. The rating plan must apply  consistently
 to  all  members,  and  must  provide  for a common renewal date for all
 PRIVATE  group  self-insurer  members.  The  rates filed can be adjusted
 based on an experience  modification  calculated  for  every  member  in
 accordance  with  the experience rating plan promulgated by the workers'
 compensation rating board.  Experience  modification  formulas  must  be
 applied identically to all members. Other rate deviations may be permis-
 sible  provided  a  plan has been approved by the board. Such deviations
 shall not be in excess of ten percent of the  actuary's  indicated  rate
 unless otherwise approved by the board for a fully funded group self-in-
 surer,  and  shall in no event result in amounts less than the actuary's
 overall indicated rate. The chair by regulation  may  set  further  rate
 plan and actuarial reporting standards.
   §  3.  Paragraph  (g) of subdivision 3-e of section 50 of the workers'
 compensation law, as added by chapter  729  of  the  laws  of  1993,  is
 amended and a new subdivision 3-f is added to read as follows:
   (g)  The state insurance fund, any other insurer or any group self-in-
 surer for municipal corporations as  defined  in  subdivision  [three-a]
 THREE-F  of  this  section  may, at its option, offer a deductible in an
 amount specified in paragraph (c) of this subdivision to any policyhold-
 er who is not otherwise eligible for a deductible  under  this  subdivi-
 sion.
   3-F.  (1)  ANY  GROUP CONSISTING EXCLUSIVELY OF MUNICIPAL CORPORATIONS
 AND PUBLIC CORPORATIONS AS SUCH TERMS ARE DEFINED IN  SECTION  SIXTY-SIX
 OF THE GENERAL CONSTRUCTION LAW, COUNTY SELF-INSURANCE PLANS ESTABLISHED
 UNDER  ARTICLE  FIVE  OF THIS CHAPTER, BOARDS OF COOPERATIVE EDUCATIONAL
 SERVICES AND CONSORTIA ESTABLISHED BY BOARDS OF COOPERATIVE  EDUCATIONAL
 SERVICES  MAY  ADOPT  A  PLAN  FOR  SELF-INSURANCE,  AS A GROUP, FOR THE
 PAYMENT OF COMPENSATION UNDER THIS  CHAPTER  TO  THEIR  EMPLOYEES.  SUCH
 GROUP SHALL BE KNOWN AS A "PUBLIC GROUP SELF-INSURER".  ALL OTHER GROUPS
 ESTABLISHED  UNDER  THIS  SECTION  ARE  "PRIVATE GROUP SELF-INSURERS". A
 COUNTY SELF-INSURANCE PLAN ESTABLISHED UNDER ARTICLE FIVE OF THIS  CHAP-
 TER IS NOT ITSELF A PUBLIC GROUP SELF-INSURER, AND IS NOT ITSELF SUBJECT
 TO  THE  REQUIREMENTS OF THIS SECTION, BUT MAY JOIN A PUBLIC GROUP SELF-
 INSURER AND, IF IT DOES SO, SHALL ASSUME ALL OF THE OBLIGATIONS  OF  ITS
 PARTICIPANTS  TO THE PUBLIC GROUP SELF-INSURER. NO ENTITY WHICH IS NOT A
 MUNICIPAL CORPORATION AS DEFINED IN SECTION  SIXTY-SIX  OF  THE  GENERAL
 CONSTRUCTION LAW, A COUNTY SELF-INSURANCE PLAN ESTABLISHED UNDER ARTICLE
 FIVE  OF THIS CHAPTER, OR A CONSORTIUM ESTABLISHED BY A BOARD OF COOPER-
 ATIVE EDUCATIONAL SERVICES, MAY JOIN A PUBLIC GROUP SELF-INSURER  UNLESS
 IT MAY LEVY TAXES OR IS OTHERWISE DIRECTLY CAPABLE OF GENERATING REVENUE
 IN THE EVENT OF A FUNDING DEFICIENCY WITHIN THE PUBLIC GROUP SELF-INSUR-
 ER,  OR ITS OBLIGATIONS ARE GUARANTEED BY ANOTHER MEMBER WHICH IS SUCH A
 MUNICIPAL CORPORATION. A PUBLIC GROUP SELF-INSURER SHALL COMPLY WITH ALL
 OF THE REQUIREMENTS OF SUBDIVISION THREE-A OF  THIS  SECTION;  INCLUDING
 ANY  OBLIGATIONS IMPOSED BY SUCH SUBDIVISION UPON A GROUP ADMINISTRATOR,
 BUT SHALL NOT BE REQUIRED TO OBTAIN A LICENSE AUTHORIZING IT TO ACT AS A
 GROUP SELF-INSURER ADMINISTRATOR, TO PAY A LICENSE  FEE  OR  TO  POST  A
 BOND. NO PROOF OF FINANCIAL ABILITY TO PAY THE COMPENSATION PROVIDED FOR
 BY  THIS  CHAPTER OR DEPOSIT OF SECURITIES SHALL BE REQUIRED OF A PUBLIC
 GROUP SELF-INSURER AND, IN LIEU THEREOF, THE  LIABILITY  OF  THE  PUBLIC
 GROUP  SELF-INSURER'S MEMBERS SHALL SERVE AS THE SECURITY REQUIRED UNDER
 PARAGRAPH TWO OF SUBDIVISION THREE-A OF THIS SECTION.  THE  CHAIR  SHALL
 IMPLEMENT  THE  PROVISIONS OF THIS SUBDIVISION BY PROMULGATING RULES AND

 A. 697--A                           5
 
 REGULATIONS, BUT NO SUCH RULES AND REGULATIONS SHALL  BE  NECESSARY  FOR
 ANY PROVISIONS OF THIS SUBDIVISION TO BE EFFECTIVE.
   (2)  A  PUBLIC  GROUP SELF-INSURER AS DEFINED IN PARAGRAPH ONE OF THIS
 SUBDIVISION MAY OFFER, AS PART  OF  THE  AGREEMENT  OR  BY  ENDORSEMENT,
 DEDUCTIBLES OPTIONAL TO THE MEMBER FOR BENEFITS PAYABLE UNDER THE AGREE-
 MENT, UPON A DETERMINATION BY THE CHAIR THAT THE PLAN IS SUPPORTED BY AN
 ACTUARIAL  ANALYSIS PREPARED BY AN INDEPENDENT, QUALIFIED ACTUARY WHO IS
 A MEMBER OF THE CASUALTY ACTUARIAL SOCIETY THAT CLEARLY  IDENTIFIES  THE
 ACTUARY'S  INDICATED DEDUCTIBLE CREDIT AND RATE ASSUMPTIONS, AND SUBJECT
 TO UNDERWRITING BY THE PUBLIC GROUP SELF-INSURER,  CONSISTENT  WITH  THE
 FOLLOWING STANDARDS OR FACTORS:
   (A)  CLAIMANTS'  RIGHTS ARE PROPERLY PROTECTED AND CLAIMANTS' BENEFITS
 ARE PAID WITHOUT REGARD TO ANY SUCH DEDUCTIBLE;
   (B) APPROPRIATE PREMIUM REDUCTIONS REFLECT THE TYPE AND LEVEL  OF  ANY
 DEDUCTIBLE APPROVED BY THE CHAIRMAN AND SELECTED BY THE MEMBER;
   (C)  PREMIUM REDUCTIONS FOR DEDUCTIBLES ARE DETERMINED BEFORE APPLICA-
 TION OF ANY  EXPERIENCE  MODIFICATION,  PREMIUM  SURCHARGE,  OR  PREMIUM
 DISCOUNT;
   (D)  RECOGNITION  IS  GIVEN TO MEMBER CHARACTERISTICS, INCLUDING SIZE,
 FINANCIAL CAPABILITIES, NATURE OF ACTIVITIES, AND NUMBER OF EMPLOYEES;
   (E) IF THE MEMBER SELECTS A DEDUCTIBLE, THE MEMBER IS  LIABLE  TO  THE
 PUBLIC  GROUP  SELF-INSURER FOR THE DEDUCTIBLE AMOUNT IN REGARD TO BENE-
 FITS PAID FOR COMPENSABLE CLAIMS;
   (F) THE PUBLIC GROUP SELF-INSURER PAYS ALL OF THE  DEDUCTIBLE  AMOUNT,
 APPLICABLE TO A COMPENSABLE CLAIM, TO THE PERSON OR PROVIDER ENTITLED TO
 BENEFITS AND REQUIRES THE MEMBER TO PAY TO IT IN ADVANCE AN AMOUNT ACTU-
 ARIALLY  DETERMINED  TO  BE SUFFICIENT TO PAY THE PORTION OF THE COMPEN-
 SATION CLAIM THAT IS WITHIN THE  DEDUCTIBLE  AMOUNT  AS  THOSE  PAYMENTS
 BECOME  DUE;  PROVIDED  THAT SUCH PERIODIC PAYMENTS SHALL BE PAID TO THE
 PUBLIC GROUP SELF-INSURER IN INTERVALS OF NO GREATER OF SIX MONTHS; AND
   (G) FAILURE TO REIMBURSE DEDUCTIBLE  AMOUNTS  BY  THE  MEMBER  TO  THE
 PUBLIC GROUP SELF-INSURER IS TREATED UNDER THE COVERAGE AGREEMENT IN THE
 SAME MANNER AS NONPAYMENT OF CONTRIBUTIONS.
   (3) WHENEVER THE CHAIR DETERMINES THAT A PUBLIC GROUP SELF-INSURER HAS
 BECOME  INSOLVENT OR THAT THE COMPENSATION AND BENEFITS PROVIDED BY THIS
 CHAPTER MAY BE UNPAID BY REASON OF THE DEFAULT OF A PUBLIC  GROUP  SELF-
 INSURER,  THE CHAIR SHALL PAY SUCH COMPENSATION AND BENEFITS FROM ADMIN-
 ISTRATION EXPENSES AS PROVIDED IN SECTION ONE HUNDRED FIFTY-ONE OF  THIS
 CHAPTER  UPON  AUDIT  AND  WARRANT  OF THE COMPTROLLER AND UPON VOUCHERS
 APPROVED BY THE CHAIR, WHICH PAYMENTS SHALL BE  CONSIDERED  EXPENSES  OF
 ADMINISTRATION.  AS USED IN THIS PARAGRAPH, INSOLVENT MEANS THE VALUE OF
 THE PUBLIC GROUP SELF-INSURER'S ASSETS IS LESS THAN THE TOTAL  COSTS  OF
 THE  WORKERS' COMPENSATION LIABILITIES THAT IT IS ANTICIPATED THE PUBLIC
 GROUP SELF-INSURER IS REQUIRED TO PAY WITHIN THE SUCCEEDING SIX  MONTHS.
 UPON  THE  INSOLVENCY  OF A PUBLIC GROUP SELF-INSURER, EACH MEMBER SHALL
 ASSUME RESPONSIBILITY FOR THE CLAIMS AGAINST IT.   THE  CHAIR  SHALL  BE
 REIMBURSED FOR ANY PAYMENT MADE UNDER THIS PARAGRAPH FIRST BY THE PUBLIC
 GROUP SELF-INSURER ITSELF AND IF THE PUBLIC GROUP SELF-INSURER IS UNABLE
 TO  FULLY REIMBURSE THE CHAIR FOR PAYMENTS MADE BY THE CHAIR THEN SECOND
 BY THE MEMBER OF THE PUBLIC GROUP SELF-INSURER AGAINST WHICH  THE  CLAIM
 IS  ASSERTED.  IF  THE CHAIR IS UNABLE TO OBTAIN REIMBURSEMENT FROM THAT
 MEMBER, THE CHAIR MAKE SEEK REIMBURSEMENT FROM ANY OTHER MEMBER  OF  THE
 PUBLIC  GROUP  SELF-INSURER.  ANY  MEMBER WHICH REIMBURSES THE CHAIR FOR
 PAYMENTS MADE UNDER THIS PARAGRAPH WITH RESPECT TO  CLAIMS  AGAINST  ANY
 OTHER  MEMBER  MAY  RECOVER  THOSE PAYMENTS FROM THE MEMBER WHOSE CLAIMS
 WERE PAID BY THE CHAIR. NOTHING HEREIN SHALL  PRECLUDE  THE  CHAIR  FROM

 A. 697--A                           6
 
 DIRECTING  THAT AN UNDERFUNDED PUBLIC GROUP SELF-INSURER LEVY AN ASSESS-
 MENT ON ITS MEMBERS AS PART OF A PLAN IMPLEMENTED PURSUANT  TO  SUBPARA-
 GRAPH (B) OF PARAGRAPH TWO OF SUBDIVISION THREE-A OF THIS SECTION.
   §  4.  The  opening paragraph of section 3443 of the insurance law, as
 added by chapter 924 of the laws of 1990, is amended to read as follows:
   An insurer issuing a workers' compensation  and  employers'  liability
 insurance  policy,  [and a group self-insurer for municipal corporations
 as defined in subdivision three-a  of  section  fifty  of  the  workers'
 compensation  law,]  may offer, as part of the policy or by endorsement,
 deductibles optional to the policyholder for benefits payable under  the
 policy,  subject to approval by the superintendent and subject to under-
 writing by the insurer,  consistent  with  the  following  standards  or
 factors:
   §  5. Subdivision 9 of section 30 of the volunteer firefighters' bene-
 fit law, as amended by chapter 61 of the laws of  1989,  is  amended  to
 read as follows:
   9.  Insurance authorized to be purchased pursuant to subdivision eight
 of this section may be secured from the state fund or any  stock  corpo-
 ration,  mutual corporation or reciprocal insurer authorized to transact
 the business of workers' compensation in this state.  If such  insurance
 is not secured, the political subdivision liable shall be deemed to have
 elected to be a self-insurer unless it is a participant in a county plan
 of  self-insurance  or  its liability for benefits under this chapter is
 covered by a town's participation in a county plan of self-insurance  as
 provided  in  subdivision  three  of section sixty-three of the workers'
 compensation law, OR IS A PARTICIPANT IN  A  GROUP  SELF-INSURANCE  PLAN
 CONSISTING  SOLELY  OF MUNICIPAL CORPORATIONS AS PROVIDED IN SUBDIVISION
 THREE-F OF SECTION FIFTY OF THE WORKERS' COMPENSATION  LAW.  Every  such
 self-insurer  shall  file  with  the  chair of the workers' compensation
 board a notice of such election prescribed in form by  such  chair.  For
 failure to file such notice within ten days after such election is made,
 the  treasurer  or  other  fiscal  officer of such political subdivision
 shall be liable to pay to the chair of the workers'  compensation  board
 the  sum  of  one hundred dollars as a penalty, to be transferred to the
 state treasury. A notice of election to be a  self-insurer  for  compen-
 sation  and  benefits  to volunteer firefighters under the provisions of
 the workers' compensation law and the general municipal  law  in  effect
 prior  to  March  first,  nineteen  hundred fifty-seven, which was filed
 prior to such date pursuant to the provisions  of  subdivision  four  of
 section  fifty  of  the  workers' compensation law as in effect prior to
 such date shall be deemed to be a notice of election  filed  under  this
 section  unless the chair of the workers' compensation board is notified
 to the contrary. The provisions of subdivision five of section fifty  of
 the workers' compensation law shall be applicable to such self-insurers.
   §  6.  Subdivision 8 of section 30 of the volunteer ambulance workers'
 benefit law, as amended by chapter 61 of the laws of 1989, is amended to
 read as follows:
   8. Insurance authorized to be purchased pursuant to subdivision  seven
 of  this  section may be secured from the state fund or any stock corpo-
 ration, mutual corporation, group self-insurers  or  reciprocal  insurer
 authorized  to  transact  the  business of workers' compensation in this
 state.   If such insurance is not  secured,  the  political  subdivision
 liable shall be deemed to have elected to be a self-insurer unless it is
 a  participant  in  a county plan of self-insurance or its liability for
 benefits under this chapter is covered by a town's  participation  in  a
 county plan of self-insurance as provided in subdivision nine of section

 A. 697--A                           7
 
 sixty-three  of  the workers' compensation law, OR IS A PARTICIPANT IN A
 GROUP-INSURANCE PLAN CONSISTING  SOLELY  OF  MUNICIPAL  CORPORATIONS  AS
 PROVIDED  IN  SUBDIVISIONS  THREE-F  OF  SECTION  FIFTY  OF THE WORKERS'
 COMPENSATION  LAW.  Every such self-insurer shall file with the chair of
 the workers' compensation board a notice of such election prescribed  in
 form  by  such  chair.  For  failure to file such notice within ten days
 after such election is made, the treasurer or other  fiscal  officer  of
 such  political  subdivision  shall be liable to pay to the chair of the
 workers' compensation board the sum of one hundred dollars as a penalty,
 to be transferred to the state treasury. A notice of election  to  be  a
 self-insurer  for compensation and benefits to volunteer ambulance work-
 ers under the provisions of the workers' compensation law and the gener-
 al municipal law in effect prior to March first, in the year  of  enact-
 ment of this chapter, which was filed prior to such date pursuant to the
 provisions  of subdivision four of section fifty of the workers' compen-
 sation law as in effect prior to such date  shall  be  deemed  to  be  a
 notice  of  election  filed  under  this section unless the chair of the
 workers' compensation board is notified to the contrary. The  provisions
 of  subdivision  five  of section fifty of the workers' compensation law
 shall be applicable to such self-insurers.
   § 7. This act shall take effect January  1,  2018;  provided  however,
 that  subdivision 3-f of section 50 of the workers' compensation law, as
 added by section three of this act, shall take effect immediately.