S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5641
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2019
                                ___________
 
 Introduced  by  Sen.  BROOKS -- 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 the creation and funding of other post-employment benefit
   reserve funds; and to repeal certain provisions of the general munici-
   pal law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 6-w to read as follows:
   § 6-W. OTHER POST-EMPLOYMENT BENEFIT RESERVE FUNDS. 1. AS USED IN THIS
 SECTION:
   (A) "MUNICIPAL CORPORATION" MEANS A SCHOOL DISTRICT (EXCEPT  A  SCHOOL
 DISTRICT IN A CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND
 OR MORE) OR A BOARD OF COOPERATIVE EDUCATIONAL SERVICES.
   (B)  "OTHER  POST-EMPLOYMENT  BENEFIT"  MEANS ANY BENEFIT OTHER THAN A
 PENSION BENEFIT THAT A MUNICIPAL CORPORATION IS OBLIGATED  BY  CONTRACT,
 LOCAL  LAW,  OR  STATUTE  TO  PAY  TO, OR ON BEHALF OF, AN INDIVIDUAL ON
 ACCOUNT OF THAT INDIVIDUAL'S PRIOR EMPLOYMENT BY  THE  MUNICIPAL  CORPO-
 RATION, INCLUDING POST-EMPLOYMENT HEALTHCARE BENEFITS, REGARDLESS OF THE
 TYPE OF PLAN THAT PROVIDES THEM, BUT EXCLUDING TERMINATION BENEFITS SUCH
 AS THOSE DESCRIBED IN SECTION SIX-P OF THIS ARTICLE.
   (C) "PARTICIPATING EMPLOYER" MEANS A PARTICIPATING EMPLOYER AS DEFINED
 IN  SUBDIVISION TWENTY OF SECTION TWO OF THE RETIREMENT AND SOCIAL SECU-
 RITY LAW OR IN SUBDIVISION TWENTY OF SECTION THREE HUNDRED TWO  OF  SUCH
 LAW.
   2.  THE  GOVERNING  BOARD OF ANY MUNICIPAL CORPORATION WHICH IS ALSO A
 PARTICIPATING EMPLOYER MAY ESTABLISH BY RESOLUTION A  RESERVE  FUND  FOR
 THE PURPOSE OF FINANCING OTHER POST-EMPLOYMENT BENEFITS.
   3.  THERE  MAY  BE  PAID  INTO ANOTHER POST-EMPLOYMENT BENEFIT RESERVE
 FUND:
   (A) SUCH AMOUNTS AS MAY BE PROVIDED THEREFOR  BY  BUDGETARY  APPROPRI-
 ATION OR RAISED BY TAX THEREFOR;
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10209-02-9

 S. 5641                             2
 
   (B) SUCH REVENUES AS ARE NOT REQUIRED BY LAW TO BE PAID INTO ANY OTHER
 FUND OR ACCOUNT;
   (C) SUCH OTHER FUNDS AS MAY BE LEGALLY APPROPRIATED; AND
   (D)  NOTWITHSTANDING  ANY  LAW TO THE CONTRARY, SUCH AMOUNTS AS MAY BE
 TRANSFERRED FROM A RESERVE FUND ESTABLISHED PURSUANT TO  SECTION  SIX-C,
 SIX-D,  SIX-E,  SIX-F,  SIX-G,  SIX-M,  SIX-N,  OR SIX-P OF THIS ARTICLE
 COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS  IN  THE
 OTHER  POST-EMPLOYMENT  BENEFIT  RESERVE  FUND, OR A RESERVE FUND ESTAB-
 LISHED PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION
 LAW, PROVIDED, THAT ANY SUCH TRANSFER SHALL ONLY BE MADE  BY  RESOLUTION
 OF  THE  GOVERNING  BOARD  OF SUCH MUNICIPAL CORPORATION ADOPTED AFTER A
 PUBLIC HEARING HELD ON AT LEAST FIFTEEN DAYS PRIOR PUBLISHED  NOTICE  IN
 THE  OFFICIAL NEWSPAPER OF THE MUNICIPAL CORPORATION  OR, IF THE MUNICI-
 PAL CORPORATION DOES NOT HAVE AN OFFICIAL NEWSPAPER,  IN  AT  LEAST  ONE
 NEWSPAPER HAVING GENERAL CIRCULATION IN THE MUNICIPAL CORPORATION.
   4. THE MONEYS IN ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND SHALL BE
 DEPOSITED  AND  SECURED  IN  THE  MANNER PROVIDED BY SECTION TEN OF THIS
 ARTICLE, THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION, OR THE CHIEF
 FISCAL OFFICER THEREOF IF THE GOVERNING BOARD SHALL DELEGATE  SUCH  DUTY
 TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED
 BY  SECTION  ELEVEN OF THIS ARTICLE, ANY INTEREST EARNED OR CAPITAL GAIN
 REALIZED ON THE MONEY SO DEPOSITED  OR  INVESTED  SHALL  ACCRUE  TO  AND
 BECOME PART OF SUCH FUND.
   5. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
 AUTHORIZE EXPENDITURES FROM ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND
 EXCEPT  AS  OTHERWISE PROVIDED BY LAW, MONEYS IN ANOTHER POST-EMPLOYMENT
 BENEFIT RESERVE FUND MAY ONLY BE EXPENDED TO FINANCE OTHER  POST-EMPLOY-
 MENT BENEFITS.
   6. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
 AUTHORIZE  THE  TRANSFER  OF A PORTION OF THE MONEYS IN ANOTHER POST-EM-
 PLOYMENT BENEFIT RESERVE FUND TO A RESERVE FUND OF THE MUNICIPAL  CORPO-
 RATION  ESTABLISHED  PURSUANT  TO  SECTION  SIX-C,  SIX-D, SIX-E, SIX-F,
 SIX-G, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS RAISED
 FROM THE SAME TAX BASE AS THE  MONEYS  IN  THE  RETIREMENT  CONTRIBUTION
 RESERVE  FUNDS,  OR A RESERVE FUND ESTABLISHED PURSUANT TO SECTION THIR-
 TY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW, PROVIDED, THAT  ANY  SUCH
 TRANSFER SHALL ONLY BE MADE BY RESOLUTION OF THE GOVERNING BOARD OF SUCH
 MUNICIPAL  CORPORATION  ADOPTED  AFTER A PUBLIC HEARING HELD ON AT LEAST
 FIFTEEN DAYS PRIOR PUBLISHED NOTICE IN THE  OFFICIAL  NEWSPAPER  OF  THE
 MUNICIPAL  CORPORATION OR, IF THE MUNICIPAL CORPORATION DOES NOT HAVE AN
 OFFICIAL NEWSPAPER, IN AT LEAST ONE NEWSPAPER HAVING GENERAL CIRCULATION
 IN THE MUNICIPAL CORPORATION.
   7. THE CHIEF  FISCAL  OFFICER  OF  SUCH  MUNICIPAL  CORPORATION  SHALL
 ACCOUNT  FOR  ANOTHER  POST-EMPLOYMENT BENEFIT RESERVE FUND SEPARATE AND
 APART FROM ALL OTHER FUNDS OF THE MUNICIPAL CORPORATION SUCH  ACCOUNTING
 SHALL  SHOW: THE SOURCE, DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND;
 THE INTEREST EARNED BY SUCH FUND; CAPITAL GAINS OR LOSSES RESULTING FROM
 THE SALE OF INVESTMENTS OF THIS FUND; THE ORDER, PURPOSE  THEREOF,  DATE
 AND AMOUNT OF EACH PAYMENT FROM SUCH FUND; THE ASSETS OF THE FUND, INDI-
 CATING CASH BALANCE AND A SCHEDULE OF INVESTMENTS.
   THE  CHIEF FISCAL OFFICER, WITHIN SIXTY DAYS OF THE END OF EACH FISCAL
 YEAR, SHALL FURNISH A DETAILED REPORT OF THE OPERATION AND CONDITION  OF
 THIS FUND TO THE GOVERNING BOARD.
   8.  NO  MEMBER  OF  THE  GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION
 SHALL:

 S. 5641                             3
 
   (A)  AUTHORIZE  A  WITHDRAWAL  FROM  ANOTHER  POST-EMPLOYMENT  BENEFIT
 RESERVE FUND FOR ANY PURPOSE EXCEPT AS PROVIDED IN THIS SECTION; OR
   (B) EXPEND ANY MONEY WITHDRAWN FROM SUCH FUND FOR A PURPOSE OTHER THAN
 AS PROVIDED IN THIS SECTION.
   9. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
 DETERMINE THAT AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND IS NO LONG-
 ER  NEEDED  AND  TERMINATE  THE FUND. SUCH RESOLUTION SHALL TRANSFER ANY
 MONEYS REMAINING IN SUCH FUND TO ONE OR MORE RESERVE FUNDS OF THE MUNIC-
 IPAL CORPORATION ESTABLISHED PURSUANT TO SECTION  SIX-C,  SIX-D,  SIX-E,
 SIX-F, SIX-G, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS
 RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE OTHER POST-EMPLOYMENT
 BENEFIT  RESERVE FUND, OR ONE OR MORE RESERVE FUNDS ESTABLISHED PURSUANT
 TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW.
   § 2. Notwithstanding any other provision of law, within  180  days  of
 the  effective  date  of this act, a municipal corporation may by resol-
 ution  transfer  into  another  post-employment  benefits  reserve  fund
 created  in accordance with section 6-w of the general municipal law any
 funds previously committed or assigned by that municipal corporation for
 the purpose of paying  other  post-employment  benefits  as  defined  in
 section  6-w of the general municipal law, regardless of how those funds
 have been designated.
   § 3. Subdivisions 10 and 11 of section 6-p of  the  general  municipal
 law are REPEALED.
   §  4.  Paragraph  b  of subdivision 5 of section 1950 of the education
 law, as amended by chapter 296 of the laws of 2016, is amended  to  read
 as follows:
   b.  The  cost of services herein referred to shall be the amount allo-
 cated to each component school district  by  the  board  of  cooperative
 educational  services  to  defray  expenses  of  such  board,  including
 approved expenses from the testing of potable water systems of  occupied
 school  buildings under the board's jurisdiction as required pursuant to
 section eleven hundred ten of the public health law,  except  that  that
 part of the salary paid any teacher, supervisor or other employee of the
 board  of  cooperative educational services which is in excess of thirty
 thousand dollars shall not be such an approved expense, and except  also
 that  administrative  and clerical expenses shall not exceed ten percent
 of the total expenses for  purposes  of  this  computation.  Any  gifts,
 donations  or  interest  earned  by the board of cooperative educational
 services or on behalf of the board of cooperative  educational  services
 by  the dormitory authority or any other source shall not be deducted in
 determining the cost of services  allocated  to  each  component  school
 district. [Any payments made to a component school district by the board
 of  cooperative  educational  services pursuant to subdivision eleven of
 section six-p of the general municipal law attributable to  an  approved
 cost  of service computed pursuant to this subdivision shall be deducted
 from the cost of services allocated to such component school  district.]
 The  expense  of  transportation  provided  by  the board of cooperative
 educational services pursuant to paragraph q of subdivision four of this
 section shall be eligible for aid apportioned  pursuant  to  subdivision
 seven  of section thirty-six hundred two of this chapter and no board of
 cooperative educational services  transportation  expense  shall  be  an
 approved cost of services for the computation of aid under this subdivi-
 sion. Transportation expense pursuant to paragraph q of subdivision four
 of  this section shall be included in the computation of the ten percent
 limitation on administrative and clerical expenses.
   § 5. This act shall take effect immediately.