§ 219-h. Administration. 1. Service award programs shall be centrally
administered by the state comptroller, or the comptroller may enter into
one or more of the following contracts:

(a) a contract with an administrative service agency or financial
organization to serve as program administrator and to perform all or any
portion of the functions required to establish and administer such
programs including, but not limited to, preparation of a plan document,
record keeping, reporting, payment of service awards, and having custody
of program moneys and assets; or

(b) contracts with one or more financial organizations to invest
program moneys. If the comptroller contracts for the performance of any
function as provided in this subdivision, the comptroller shall be
liable only for the exercise of due care in the selection of the
administrative service agency or financial organization.

2. The state comptroller shall promulgate rules and regulations, as
appropriate, for service award programs. Such rules shall include, but
not be limited to, standards for the selection of financial
organizations, the method and timing of the payment of contributions to
the fund made by the sponsoring organization, the reporting on
individual participant accounts, matters relating to the preparation of
a plan document and any other matter properly pertaining thereto.

3. (a) The state comptroller, or an administrative service agency or
financial organization selected by the comptroller, shall prepare and
may amend a single plan document setting forth the obligations of
sponsors, the rights of the volunteer ambulance workers, and standards
and procedures for the administration of all service award programs. The
plan document and any amendments thereto shall be consistent with the
provisions of this article, the rules and regulations promulgated by the
comptroller and any amendments thereto. If the plan document or any
amendment thereto is prepared by an administrative service agency or
financial organization, it shall not take effect until approved by the
comptroller.

(b) The plan administrator shall cause a summary of the plan document
to be provided to each participant within six months from the date that
program participation commences. The plan administrator shall also
cause a summary of any material amendment of the plan document to be
provided to each participant within six months of the date the amendment
takes effect.

(c) The plan document and the summary of the plan document shall be
made available for public inspection and copying.

4. All program assets shall be held in trust for the exclusive purpose
of providing service awards to participants and their beneficiaries or
for the purpose of defraying the reasonable expenses of the operation
and administration of the program. The trust shall be established and
may be amended by the state comptroller. The comptroller may designate
him or herself, an administrative service agency or a financial
organization as trustee, and may substitute trustees. If the service
award programs and the trust are not tax qualified within the meaning of
sections 401 and 501 of the Internal Revenue Code of 1954 (68A Stat.
3.26 U.S.C. 401 and 501), the trust may provide that assets apportioned
to an individual sponsor may be subject to the claims of general
creditors, if any, of the sponsor or may contain such other terms and
provisions as are necessary to ensure that participation in a service
award program does not result in taxable income under any provision of
the Internal Revenue Code of 1986, as amended.

5. There is hereby established in the custody of the state comptroller
a special fund to be known as the volunteer ambulance service award
fund. Such fund shall consist of any money of service award programs
held by the comptroller. Moneys may be paid from such fund without an
appropriation by law. All payments from such fund shall be made only in
accordance with the provisions of this article, the rules and
regulations promulgated thereto and the plan document.

6. The moneys held for the participants of each service award program
shall be accounted for separately. The administrator shall cause a
statement of contributions to be provided to sponsors and a statement of
account balances to be provided to participants at least once annually.

7. The administrator and every fiduciary of a service award program
shall be required to act solely in the interest of the program's
participants and beneficiaries. Notwithstanding the provisions of any
general or special law restricting the power or duty of the state
comptroller to invest moneys belonging to a fund which the comptroller
is authorized to invest, a fiduciary may accept, hold, invest in and
retain any investment if purchased or retained with the care, skill,
prudence and diligence under the circumstances then prevailing that a
prudent person acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of like character and with
like aim.

8. (a) All contracts or agreements with an administrative service
agency or financial organization shall be awarded only after receiving
competitive proposals. In addition to other statutory requirements, the
state comptroller shall cause to be published in the state register and
in the official newspaper or newspapers, if any, or otherwise in an
appropriate newspaper designated for such purposes, at least sixty days
prior to the date on which the contract or agreement will be awarded and
shall request proposals within thirty days of publication.

(b) All contracts and agreements entered into with an administrative
service agency or a financial organization shall be in writing, shall
not exceed five years in duration, and shall impose no penalties or
surrender charges for the transfer of assets or responsibilities on
termination of the contract or agreement such contracts and agreements
shall be available for public inspection and copying.