BILL NUMBER: S2041

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act prohibiting the New York Department of State from issuing a
certificate of dissolution and filing a judgment or final order of
dissolution for the pension fund for employees of the former St. Clare's
Hospital in the city of Schenectady, county of Schenectady, until an
investigation and/or audit by the New York State Department of Health,
the New York State Attorney General or the New York State Comptroller
has been conducted to ascertain whether there was any impropriety in the
handling and management of funds in such pension plan

 
PURPOSE:

To ensure an entity of New York State with investigative or subpoena
powers conduct an audit and/or an investigation prior to the execution
of a Certificate of Dissolution for St. Claire's Hospital.

 
SUMMARY OF PROVISIONS:
              

Section 1. Notwithstanding the provisions of sections 1003 and 1109 of
the not-for-profit corporation law or any other provisions of article 10
or 11 of the not-for-profit corporation law, no petition for a certif-
icate of dissolution for the pension fund for employees of the former
St. Clare's Hospital in the city of Schenectady, county of Schenectady,
shall be issued by the New York Department of State and no judgment or
final order of dissolution by the Supreme Court shall be filed by the
New York Department of State unless and until a period of sixty days has
elapsed following the conclusion of an investigation and/or audit by the
New York State Department of Health, the New York State Attorney General
or the New York State Comptroller has been conducted to ascertain wheth-
er there was impropriety in the handling and management of funds in such
pension plan.

 
JUSTIFICATION:

In the summer of 2018, more than 1,100 former St. Clare's Hospital
employees and retirees were notified their pensions would either be
significantly reduced or outright eliminated in 2019. In some cases,
people who worked at the hospital for decades will receive no pension at
all.

These 1,100 hard-working former St. Clare's Hospital employees did their
job and played by the rules for many years with the understanding they
were going to get the pension they earned at retirement, only to have
the rug pulled out from under them.

This legislation calls on the Department of State to delay the execution
of a Certificate of Dissolution for St. Clare's Corporation until the
New York State Department of Health, Attorney General or Comptroller
completes an investigation and/or audit to ascertain whether or not
there were any improprieties that led to the St.  Claire's pension
insolvency.

 
LEGISLATIVE HISTORY:

05/08/19: S.5596 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
05/20/19: S.5596 REPORTED AND COMMITTED TO FINANCE
01/08/20: S.5596 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.