NY State Senate Bill 2023-S6667

Senate Bill S6667

Signed By Governor

2023-2024 Legislative Session

Permits the Auburn enlarged city school district to establish an insurance reserve fund

download bill text pdf

Current Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Oct 25, 2023	signed chap.598
Oct 13, 2023	delivered to governor
Jun 21, 2023	returned to senate passed assembly ordered to third reading rules cal.895 substituted for a7413
Jun 08, 2023	referred to education delivered to assembly passed senate
May 30, 2023	advanced to third reading
May 24, 2023	2nd report cal.
May 23, 2023	1st report cal.1221
May 16, 2023	reference changed to cities 2
May 04, 2023	referred to local government

Votes

- Jun 8, 2023 - Floor Vote
  S6667
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 8, 2023
      
      aye (62)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (1)
      
      Cooney
  May 23, 2023 - Cities 2 Committee Vote
  S6667
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Cities 2 Committee Vote: May 23, 2023
      
      aye (7)
      
      Brouk
      
      Kennedy
      
      May
      
      Mayer
      
      Rolison
      
      Walczyk
      
      Webb

2023-S6667 (ACTIVE) - Details

See Assembly Version of this Bill:: A7413
Law Section:: General Municipal Law
Laws Affected:: Amd §6-n, Gen Muni L

2023-S6667 (ACTIVE) - Summary

Permits the Auburn enlarged city school district to establish an insurance reserve fund.

2023-S6667 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6667

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to permitting the
Auburn enlarged city school district to establish an insurance reserve
fund

 
PURPOSE:

The purpose of the bill is to permit the Auburn City School District to
establish an insurance reserve fund.

 
SUMMARY OF PROVISIONS:

Section 1 amends Paragraph(A) of subdivision 2 of section 6-n of the
general municipal law, as separately amended by chapters 251 and 338 of
the laws of 2022 by providing the Auburn City School District the abili-
ty to establish an insurance reserve fund.

Section 2 provides the effective date.

 
JUSTIFICATION:

The law currently authorizes municipal corporations to purchase a health
insurance plan or to self-insure to provide health insurance for their
officers and employees, and retired officers and employees.  Further,
section 6-n of the general municipal law authorizes municipal corpo-
rations to establish and make expenditures from an insurance reserve
fund for any loss, claim, action or judgment for which the municipal
corporation is authorized or required to purchase or maintain insurance.
However, section 6-n exempts certain kinds of risks enumerated in the
insurance law, including accident and health insurance, from the types
of risks for which the municipality may make such expenditures. In this
way, section 6-n of the general municipal law prohibits municipal corpo-
rations from making expenditures from insurance reserve funds in
relation to self-funded health insurance programs. However, there is an
anomaly in the law because section 4706 of the insurance law recognizes
the stabilizing benefits of maintaining a reserve fund by requiring such
a fund where three or more municipal corporations join to form a munici-
pal cooperative health benefit plan. This legislation recognizes that
the same rationale makes a health insurance reserve fund beneficial in
the context of a single municipal corporation that self-insures, in the
case of the Auburn City School District.

The bill allows the school district to maintain such a reserve fund and
make expenditures from such reserve fund for any loss, claim, action or
judgment for which such school district is authorized or required to
purchase or maintain insurance. In so doing, the school district and its
taxpayers may obtain the significant stabilizing benefits of maintaining
a reserve fund and avoid the financial burden that would result when a
municipal corporation or school district wishing to self-insure could
not do so because of the large year-to-year variations in claims against
a self-funded health, insurance program.

 
LEGISLATIVE HISTORY:

This is a new bill.
 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
Immediately

2023-S6667 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6667
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                May 4, 2023
                                ___________
 
 Introduced  by  Sen.  MAY  --  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, in relation to permitting the
   Auburn enlarged city school district to establish an insurance reserve
   fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
 al  municipal  law, as separately amended by chapters 251 and 338 of the
 laws of 2022, is amended to read as follows:
   (a) The governing board of any municipal corporation may  establish  a
 reserve  fund  to  be  known  as  the  insurance  reserve fund. Upon the
 creation of the fund, the municipality may make  expenditures  from  the
 fund  for  any  loss,  claim, action or judgment for which the municipal
 corporation is authorized or required to purchase or maintain insurance,
 except those kinds of risks for which insurance is  authorized  pursuant
 to  paragraph  one,  two,  three, fifteen, sixteen, seventeen, eighteen,
 twenty-two or twenty-three of subsection (a) of section one thousand one
 hundred thirteen of the insurance  law,  or  for  payments  in  lieu  of
 contributions under article eighteen of the labor law; provided however,
 that  no  municipality  shall make an expenditure from such fund for any
 loss, claim, action or judgment for which the municipal corporation  has
 established  a  reserve fund under any other provision of law; provided,
 further that the Scarsdale union free school  district,  the  Mamaroneck
 union free school district, the Minisink Valley central school district,
 the  Vernon  Verona  Sherrill  central  school district, the Ithaca city
 school  district,  the  Kenmore-Town  of  Tonawanda  union  free  school
 district,  the Bedford central school district, the Grand Island central
 school district, the Tonawanda city school district, the  enlarged  city
 school district of Middletown, the Frontier central school district, the
 Owego  Apalachin  central  school  district,  the  Maine-Endwell central
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11144-01-3

 S. 6667                             2
 
 school district, the Binghamton city school district, the Candor central
 school district, the Depew union free  school  district,  the  Liverpool
 central  school  district, THE AUBURN ENLARGED CITY SCHOOL DISTRICT, the
 Carmel  central  school  district,  and  the  Canastota  central  school
 district may establish insurance reserve funds in compliance  with  this
 section  and  article  seventy-four of the education law and such school
 districts may make expenditures in  compliance  with  this  section  and
 article seventy-four of the education law from such reserve fund for any
 loss,  claim,  action  or  judgment  for  which the school districts are
 authorized or required to purchase or maintain insurance for  the  kinds
 of  risks  for which insurance is authorized pursuant to paragraph three
 of subsection (a) of section one thousand one hundred  thirteen  of  the
 insurance law.
   § 2. This act shall take effect immediately.

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