STATE OF NEW YORK
________________________________________________________________________
6024
2021-2022 Regular Sessions
IN ASSEMBLY
March 4, 2021
___________
Introduced by M. of A. ZEBROWSKI, DICKENS, STIRPE, GRIFFIN, SAYEGH,
COOK, CRUZ, ABINANTI, FERNANDEZ, SEAWRIGHT, LUPARDO, BUTTENSCHON,
DeSTEFANO, MONTESANO, NORRIS, McDONOUGH, BRABENEC, B. MILLER --
Multi-Sponsored by -- M. of A. HAWLEY, SIMON -- read once and referred
to the Committee on Education
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:
1 Section 1. The general municipal law is amended by adding a new
2 section 6-w to read as follows:
3 § 6-w. Other post-employment benefit reserve funds. 1. As used in this
4 section:
5 (a) "Municipal corporation" means a school district (except a school
6 district in a city with a population of one hundred twenty-five thousand
7 or more) or a board of cooperative educational services.
8 (b) "Other post-employment benefit" means any benefit other than a
9 pension benefit that a municipal corporation is obligated by contract,
10 local law, or statute to pay to, or on behalf of, an individual on
11 account of that individual's prior employment by the municipal corpo-
12 ration, including post-employment healthcare benefits, regardless of the
13 type of plan that provides them, but excluding termination benefits such
14 as those described in section six-p of this article.
15 (c) "Participating employer" means a participating employer as defined
16 in subdivision twenty of section two of the retirement and social secu-
17 rity law or in subdivision twenty of section three hundred two of such
18 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03659-01-1
A. 6024 2
1 2. The governing board of any municipal corporation which is also a
2 participating employer may establish by resolution a reserve fund for
3 the purpose of financing other post-employment benefits.
4 3. There may be paid into another post-employment benefit reserve
5 fund:
6 (a) Such amounts as may be provided therefor by budgetary appropri-
7 ation or raised by tax therefor;
8 (b) Such revenues as are not required by law to be paid into any other
9 fund or account;
10 (c) Such other funds as may be legally appropriated; and
11 (d) Notwithstanding any law to the contrary, such amounts as may be
12 transferred from a reserve fund established pursuant to section six-c,
13 six-d, six-e, six-f, six-g, six-m, six-n, or six-p of this article
14 comprised of moneys raised from the same tax base as the moneys in the
15 other post-employment benefit reserve fund, or a reserve fund estab-
16 lished pursuant to section thirty-six hundred fifty-one of the education
17 law, provided, that any such transfer shall only be made by resolution
18 of the governing board of such municipal corporation adopted after a
19 public hearing held on at least fifteen days prior published notice in
20 the official newspaper of the municipal corporation or, if the munici-
21 pal corporation does not have an official newspaper, in at least one
22 newspaper having general circulation in the municipal corporation.
23 4. The moneys in another post-employment benefit reserve fund shall be
24 deposited and secured in the manner provided by section ten of this
25 article, the governing board of such municipal corporation, or the chief
26 fiscal officer thereof if the governing board shall delegate such duty
27 to him or her, may invest the moneys in such fund in the manner provided
28 by section eleven of this article, any interest earned or capital gain
29 realized on the money so deposited or invested shall accrue to and
30 become part of such fund.
31 5. The governing board of such municipal corporation by resolution may
32 authorize expenditures from another post-employment benefit reserve fund
33 except as otherwise provided by law, moneys in another post-employment
34 benefit reserve fund may only be expended to finance other post-employ-
35 ment benefits.
36 6. The governing board of such municipal corporation by resolution may
37 authorize the transfer of a portion of the moneys in another post-em-
38 ployment benefit reserve fund to a reserve fund of the municipal corpo-
39 ration established pursuant to section six-c, six-d, six-e, six-f,
40 six-g, six-m, six-n, or six-p of this article comprised of moneys raised
41 from the same tax base as the moneys in the retirement contribution
42 reserve funds, or a reserve fund established pursuant to section thir-
43 ty-six hundred fifty-one of the education law, provided, that any such
44 transfer shall only be made by resolution of the governing board of such
45 municipal corporation adopted after a public hearing held on at least
46 fifteen days prior published notice in the official newspaper of the
47 municipal corporation or, if the municipal corporation does not have an
48 official newspaper, in at least one newspaper having general circulation
49 in the municipal corporation.
50 7. The chief fiscal officer of such municipal corporation shall
51 account for another post-employment benefit reserve fund separate and
52 apart from all other funds of the municipal corporation such accounting
53 shall show: the source, date and amount of each sum paid into the fund;
54 the interest earned by such fund; capital gains or losses resulting from
55 the sale of investments of this fund; the order, purpose thereof, date
A. 6024 3
1 and amount of each payment from such fund; the assets of the fund, indi-
2 cating cash balance and a schedule of investments.
3 The chief fiscal officer, within sixty days of the end of each fiscal
4 year, shall furnish a detailed report of the operation and condition of
5 this fund to the governing board.
6 8. No member of the governing board of such municipal corporation
7 shall:
8 (a) Authorize a withdrawal from another post-employment benefit
9 reserve fund for any purpose except as provided in this section; or
10 (b) Expend any money withdrawn from such fund for a purpose other than
11 as provided in this section.
12 9. The governing board of such municipal corporation by resolution may
13 determine that an other post-employment benefit reserve fund is no long-
14 er needed and terminate the fund. Such resolution shall transfer any
15 moneys remaining in such fund to one or more reserve funds of the munic-
16 ipal corporation established pursuant to section six-c, six-d, six-e,
17 six-f, six-g, six-m, six-n, or six-p of this article comprised of moneys
18 raised from the same tax base as the moneys in the other post-employment
19 benefit reserve fund, or one or more reserve funds established pursuant
20 to section thirty-six hundred fifty-one of the education law.
21 § 2. Notwithstanding any other provision of law, within 180 days of
22 the effective date of this act, a municipal corporation may by resol-
23 ution transfer into another post-employment benefits reserve fund
24 created in accordance with section 6-w of the general municipal law any
25 funds previously committed or assigned by that municipal corporation for
26 the purpose of paying other post-employment benefits as defined in
27 section 6-w of the general municipal law, regardless of how those funds
28 have been designated.
29 § 3. Subdivisions 10 and 11 of section 6-p of the general municipal
30 law are REPEALED.
31 § 4. Paragraph b of subdivision 5 of section 1950 of the education
32 law, as amended by chapter 296 of the laws of 2016, is amended to read
33 as follows:
34 b. The cost of services herein referred to shall be the amount allo-
35 cated to each component school district by the board of cooperative
36 educational services to defray expenses of such board, including
37 approved expenses from the testing of potable water systems of occupied
38 school buildings under the board's jurisdiction as required pursuant to
39 section eleven hundred ten of the public health law, except that that
40 part of the salary paid any teacher, supervisor or other employee of the
41 board of cooperative educational services which is in excess of thirty
42 thousand dollars shall not be such an approved expense, and except also
43 that administrative and clerical expenses shall not exceed ten percent
44 of the total expenses for purposes of this computation. Any gifts,
45 donations or interest earned by the board of cooperative educational
46 services or on behalf of the board of cooperative educational services
47 by the dormitory authority or any other source shall not be deducted in
48 determining the cost of services allocated to each component school
49 district. [Any payments made to a component school district by the board
50 of cooperative educational services pursuant to subdivision eleven of
51 section six-p of the general municipal law attributable to an approved
52 cost of service computed pursuant to this subdivision shall be deducted
53 from the cost of services allocated to such component school district.]
54 The expense of transportation provided by the board of cooperative
55 educational services pursuant to paragraph q of subdivision four of this
56 section shall be eligible for aid apportioned pursuant to subdivision
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1 seven of section thirty-six hundred two of this chapter and no board of
2 cooperative educational services transportation expense shall be an
3 approved cost of services for the computation of aid under this subdivi-
4 sion. Transportation expense pursuant to paragraph q of subdivision four
5 of this section shall be included in the computation of the ten percent
6 limitation on administrative and clerical expenses.
7 § 5. This act shall take effect immediately.
