S T A T E O F N E W Y O R K
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4070--A
Cal. No. 625
2017-2018 Regular Sessions
I N S E N A T E
February 2, 2017
___________
Introduced by Sens. KLEIN, ADDABBO, AVELLA, CARLUCCI, SAVINO, VALESKY --
read twice and ordered printed, and when printed to be committed to
the Committee on Finance -- reported favorably from said committee,
ordered to first and second report, ordered to a third reading,
amended and ordered reprinted, retaining its place in the order of
third reading
AN ACT to direct the office of general services to conduct a study to
examine, evaluate and make recommendations relating to the establish-
ment of an office of risk assessment and management, and/or expanding
the powers and duties of the state chief risk officer
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The office of general services, in consultation with the
department of law, the department of audit and control, the state insur-
ance fund, the department of financial services, the office of employee
relations, the state emergency management office, the state chief risk
officer, and the division of budget, shall conduct a study to examine,
evaluate and make recommendations concerning the establishment, within
the office of general services or any other appropriate state agency, an
office of risk assessment and management, and/or expanding the powers
and duties of the state chief risk officer. The office of general
services, in conducting such study, should direct its attention to at
least the following:
(a) the suggested proposed powers of such office of risk assessment
and management, and/or expanding the powers and duties of the state
chief risk officer, which may include, but not be limited to, the power
to:
(1) analyze the potential exposure of the state to liability and
financial loss arising from its acts and omissions, from the ownership,
control or use of its real and personal property, or the conduct or
actions of its employees or agents;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03883-05-7
S. 4070--A 2
(2) establish and coordinate business continuity programs for essen-
tial state functions and services;
(3) implement risk management programs to manage the state's exposure
to risk in the most cost effective manner including, but not limited to,
programs to reduce the likelihood and potential cost of loss events, and
the purchase of insurance or other risk sharing arrangements where
appropriate;
(4) analyze the implementation of state and local municipal natural
disaster mitigation plans, as provided in article 2-B of the executive
law, as it relates to effectively minimizing potential loss, exposure or
damage to state and municipal infrastructure, and to real and personal
property in coastal areas of the state due to the occurrence of a
catastrophic weather event or natural disaster; and
(5) coordinate and support the risk management programs of all state
agencies;
(b) the appointment of the state chief risk officer, who may be
appointed and empowered to administer the proposed office of risk
assessment and management. With regard to such state chief risk officer,
the office of general services should consider:
(1) the process for the appointment of the state chief risk officer;
(2) the compensation to be paid to the state chief risk officer;
(3) the qualifications of the state chief risk officer, which may
include, but not be limited to:
(A) an understanding of and the ability to apply the generally
accepted principles, standards and techniques utilized for the identifi-
cation, assessment and management of enterprise risk;
(B) possessing sufficient experience in identifying, assessing and
managing enterprise risk exposures that present the breadth and level of
complexity of issues that can reasonably be expected to be raised during
the course of state operations; and
(C) having acquired his or her qualifications, through appropriate
education and relevant risk management experience on behalf of a commer-
cial or governmental organization; and
(c) the fulfillment of the functions of the proposed office of risk
assessment and management, and/or expanding the powers and duties of the
state chief risk officer by conducting a preliminary examination and
evaluation, in consultation with the comptroller, the attorney general,
the state emergency management office, the department of financial
services and the state chief risk officer, of the kinds and scope of
risk exposures faced by the state. Such examination and evaluation may
include, but not be limited to:
(1) the practices and procedures of all state agencies, as they
pertain to, impact upon, cause or deter damage or loss to: physical
property owned or controlled by the state, or physical injuries
sustained by state employees, persons receiving services from the state
or members of the general public;
(2) the actions, claim settlements, and claim settlement processes
related to actions in the court of claims, and in federal and state
courts of competent jurisdiction as they relate to the disposition of
matters against the state;
(3) the essential operations and service functions of the state and
local governments, and the kinds of procedures that may be necessary to
maintain or restore such normal and regular operations and functions to
an appropriate level following a catastrophic weather event, natural
disaster or other emergency event;
S. 4070--A 3
(4) the potential future liabilities arising from existing or proposed
state operations or functions;
(5) a description on how to prepare an inventory of all real property
owned or leased, for a period of time of more than ten years, by all
state agencies, and to begin to ascertain how to assess past, present
and potential future liability exposures and the nature of those expo-
sures; and
(6) a description of the kinds of appropriate cost effective tech-
niques and programs needed to reduce the cost of the state's exposure to
liability and financial loss arising from its operations; and
(d) allowing any public benefit corporation, public authority or local
government to contract for the services of the proposed state chief risk
officer and the office of risk assessment and management in the event
that such public benefit corporation, public authority or local govern-
ment is without internal risk assessment and enterprise risk management
services, or wishes to supplement such internal services with the
services provided by the chief risk officer and the office.
§ 2. In addition to the requirements of section one of this act, the
office of general services shall begin to examine, analyze and deter-
mine:
(a) an estimate of the financial benefits that could be realized by
establishing an office of risk assessment and management and/or expand-
ing the powers and duties of the state chief risk officer, and the
potential reduction in the state's liability exposure;
(b) the financial costs and an estimate of the size of the workforce
necessary to establish such an office and/or a state chief risk officer
with expanded powers and duties;
(c) the method or process by which such proposed office could be
established and the manner in which such office's operations could be
phased in over 5 years; and
(d) the method of financing the establishment and operations of the
office of risk assessment and management and/or a state chief risk offi-
cer with expanded powers and duties, in as much as the initial costs of
such office, or officer may not be offset by cost savings and reduction
in liability exposure until such office or officer has been in existence
for an extended period of time.
§ 3. Within eighteen months of the effective date of this act, the
office of general services shall submit to the governor, the attorney
general, the state comptroller, the state emergency management office,
the state chief risk officer, the state insurance fund, the department
of financial services, the office of employee relations, the division of
budget, the temporary president of the senate, the speaker of the assem-
bly, the minority leader of the senate and the minority leader of the
assembly, a report of its findings, conclusions and recommendations, and
shall submit with its report such legislative proposals as it deems
necessary to implement its recommendations.
§ 4. This act shall take effect immediately.