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A09412 Summary:

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A09412 Committee Votes:

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A09412 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9412
 
                   IN ASSEMBLY
 
                                      March 2, 2016
                                       ___________
 
        Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
          tee on Education
 
        AN  ACT  to  amend  the  general municipal law and the education law, in
          relation to insurance reserve funds of certain school districts
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
     2  al  municipal  law,  as  amended  by chapter 433 of the laws of 2014, is
     3  amended to read as follows:
     4    (a) The governing board of any municipal corporation may  establish  a
     5  reserve  fund  to  be  known  as  the  insurance  reserve fund. Upon the
     6  creation of the fund, the municipality may make  expenditures  from  the
     7  fund  for  any  loss,  claim, action or judgment for which the municipal
     8  corporation is authorized or required to purchase or maintain insurance,
     9  except those kinds of risks for which insurance is  authorized  pursuant
    10  to  paragraph  one,  two,  three, fifteen, sixteen, seventeen, eighteen,
    11  twenty-two or twenty-three of subsection (a) of section one thousand one
    12  hundred thirteen of the insurance  law,  or  for  payments  in  lieu  of
    13  contributions under article eighteen of the labor law; provided however,
    14  that  no  municipality  shall make an expenditure from such fund for any
    15  loss, claim, action or judgment for which the municipal corporation  has
    16  established  a  reserve fund under any other provision of law; provided,
    17  further that [in the case of] the Scarsdale union free school district[,
    18  an insurance reserve fund may be  established]  and  the  Vernon  Verona
    19  Sherrill  central  school district may establish insurance reserve funds
    20  in compliance with this section and article seventy-four of  the  educa-
    21  tion  law  and such school [district] districts may make expenditures in
    22  compliance with this section and article seventy-four of  the  education
    23  law  from  such reserve fund for any loss, claim, action or judgment for
    24  which the school [district is] districts are authorized or  required  to
    25  purchase  or  maintain insurance for the kinds of risks for which insur-
    26  ance is authorized pursuant to paragraph  three  of  subsection  (a)  of
    27  section one thousand one hundred thirteen of the insurance law.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14421-01-6
        A. 9412                             2
 
     1    § 2. The education law is amended by adding a new section 3653 to read
     2  as follows:
     3    § 3653. Insurance reserve funds. In addition to the provisions of this
     4  article  and to the provisions of section six-n of the general municipal
     5  law, any school district that establishes  and  maintains  an  insurance
     6  reserve  fund  to make expenditures from such reserve fund for any loss,
     7  claim, action, or judgment for which the school district  is  authorized
     8  or required to purchase or maintain insurance for the kinds of risks for
     9  which  insurance is authorized pursuant to paragraph three of subsection
    10  (a) of section eleven hundred thirteen of the insurance law, pursuant to
    11  section six-n of the general municipal law or any other chapter of  law,
    12  shall  make  all  reserve fund transactions transparent to the public by
    13  adopting a written insurance reserve fund policy, to be  posted  on  the
    14  school  district's  website,  that  includes: the purpose of the reserve
    15  fund, the optimal amount of funding of the reserve  fund,  its  intended
    16  duration, the conditions under which reserve fund assets will be used or
    17  replenished, a periodic analysis by the school board of the reserve fund
    18  balances  to  determine  if  reserves  are at reasonable and appropriate
    19  levels, how the  school  authorities  should  reduce  reserve  funds  to
    20  reasonable  levels  when conditions warrant, how school authorities will
    21  discontinue the reserve fund if no  longer  needed  and  any  additional
    22  policies that the school authorities deem appropriate.
    23    § 3. This act shall take effect immediately.