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S02230 Summary:

BILL NO    S02230 

SAME AS    
SAME AS A06689

SPONSOR    KLEIN

COSPNSR    ADDABBO, CARLUCCI, SAVINO, VALESKY

MLTSPNSR   



Directs the office of general services to conduct a study relating to the
feasibility and advisability of establishing an office of risk assessment and
management, and/or a chief risk officer.
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S02230 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2230
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                    January 22, 2015
                                       ___________
 
        Introduced  by  Sens.  KLEIN, ADDABBO, CARLUCCI, SAVINO, VALESKY -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee on Finance
 
        AN  ACT  to  direct the office of general services to conduct a study to
          examine, evaluate and make recommendations relating to the feasibility
          and advisability of establishing an  office  of  risk  assessment  and
          management, and/or chief risk officers
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The office of general services, in  consultation  with  the
     2  department of law, the department of audit and control, the state insur-
     3  ance  fund,  the  office  of  employee relations and the division of the
     4  budget, shall conduct a study to examine, evaluate and make  recommenda-
     5  tions concerning the feasibility and advisability of establishing, with-
     6  in  the  office  of  general  services, an office of risk assessment and
     7  management, and/or chief risk officers. The office of general  services,
     8  in  conducting  such  study, should direct its attention to at least the
     9  following:
    10    (a) the suggested proposed powers of such office  of  risk  assessment
    11  and  management,  and/or chief risk officers, which may include, but not
    12  be limited to, the power to:
    13    (1) analyze the potential exposure  of  the  state  to  liability  and
    14  financial  loss arising from its acts and omissions, from the ownership,
    15  control or use of its real and personal  property,  or  the  conduct  or
    16  actions of its employees or agents;
    17    (2)  establish  and coordinate business continuity programs for essen-
    18  tial state functions and services;
    19    (3) implement risk management programs to manage the state's  exposure
    20  to risk in the most cost effective manner including, but not limited to,
    21  programs to reduce the likelihood and potential cost of loss events, and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07965-01-5

        S. 2230                             2
 
     1  the  purchase  of  insurance  or  other  risk sharing arrangements where
     2  appropriate; and
     3    (4)  coordinate  and support the risk management programs of all state
     4  agencies; and
     5    (b) the appointment of a chief risk officer, who  shall  be  appointed
     6  and  empowered  to administer the proposed office of risk assessment and
     7  management. With regard to such chief risk officer, the office of gener-
     8  al services should consider:
     9    (1) the process for the appointment of the chief risk officer;
    10    (2) the compensation to be paid to the chief risk officer;
    11    (3) the qualifications of the chief risk officer, which  may  include,
    12  but not be limited to:
    13    (A)  an  understanding  of  and  the  ability  to  apply the generally
    14  accepted principles, standards and techniques utilized for the identifi-
    15  cation, assessment and management of enterprise risk;
    16    (B) possessing sufficient experience  in  identifying,  assessing  and
    17  managing enterprise risk exposures that present the breadth and level of
    18  complexity of issues that can reasonably be expected to be raised during
    19  the course of state operations; and
    20    (C)  having  acquired  his  or her qualifications, through appropriate
    21  education and relevant risk management experience on behalf of a commer-
    22  cial or governmental organization; and
    23    (c) the fulfillment of the functions of the proposed  office  of  risk
    24  assessment  and  management,  and/or  chief risk officer by conducting a
    25  preliminary examination and evaluation, in consultation with  the  comp-
    26  troller, the attorney general, the temporary president of the senate and
    27  the  speaker  of  the assembly, of the kinds and scope of risk exposures
    28  faced by the state. Such examination and evaluation may include, but not
    29  be limited to:
    30    (1) the practices and  procedures  of  all  state  agencies,  as  they
    31  pertain  to,  impact  upon,  cause  or deter damage or loss to: physical
    32  property  owned  or  controlled  by  the  state,  or  physical  injuries
    33  sustained  by state employees, persons receiving services from the state
    34  or members of the general public;
    35    (2) the actions, claim settlements,  and  claim  settlement  processes
    36  related  to  actions  in  the court of claims, and  in federal and state
    37  courts of competent jurisdiction as they relate to  the  disposition  of
    38  matters against the state;
    39    (3)  the  essential operations and service functions of the state, and
    40  the kinds of procedures that may be necessary  to  maintain  or  restore
    41  such  operations  and functions to the required level following a catas-
    42  trophe or emergency event;
    43    (4) the potential future liabilities arising from existing or proposed
    44  state operations or functions;
    45    (5) a description on how to prepare an inventory of all real  property
    46  owned  or  leased,  for  a period of time of more than ten years, by all
    47  state agencies, and to begin to ascertain how to  assess  past,  present
    48  and  potential  future liability exposures and the nature of those expo-
    49  sures; and
    50    (6) a description of the kinds of  appropriate  cost  effective  tech-
    51  niques and programs needed to reduce the cost of the state's exposure to
    52  liability  and  financial loss arising from its operations or the owner-
    53  ship, control or use of real and personal property; and
    54    (d) allowing any public benefit corporation, public authority or local
    55  government to contract for the services of the proposed chief risk offi-
    56  cer and the office of risk assessment and management in the  event  that

        S. 2230                             3
 
     1  such public benefit corporation, public authority or local government is
     2  without   internal   risk  assessment  and  enterprise  risk  management
     3  services, or wishes  to  supplement  such  internal  services  with  the
     4  services provided by the chief risk officer and the office.
     5    §  2.  In addition to the requirements of section one of this act, the
     6  office of general services shall, with particular care, begin  to  exam-
     7  ine, analyze and determine:
     8    (a)  an  estimate  of the financial benefits that could be realized by
     9  establishing an office of risk assessment and management and/or a  chief
    10  risk officer, and the potential reduction in the state's liability expo-
    11  sure;
    12    (b)  the  financial costs and an estimate of the size of the workforce
    13  necessary to establish the office  of  risk  assessment  and  management
    14  and/or a chief risk officer;
    15    (c) the method or process by which the proposed office of risk assess-
    16  ment  and  management  could be established and the manner in which such
    17  office's operations could be phased in over 5 years; and
    18    (d) the method of financing the establishment and  operations  of  the
    19  office of risk assessment and management and/or a chief risk officer, in
    20  as  much  as  the  initial  costs  of such office, or officer may not be
    21  offset by cost savings and reduction in liability  exposure  until  such
    22  office or officer has been in existence for an extended period of time.
    23    §  3.  Within  eighteen  months of the effective date of this act, the
    24  office of general services shall submit to the  governor,  the  attorney
    25  general,  the  state comptroller, the temporary president of the senate,
    26  the speaker of the assembly, the minority leader of the senate  and  the
    27  minority  leader  of the assembly, a report of its findings, conclusions
    28  and recommendations, and shall submit with its report  such  legislative
    29  proposals as it deems necessary to implement its recommendations.
    30    § 4. This act shall take effect immediately.
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