Authorizes school districts to establish an insurance reserve fund in an amount and manner determined by a qualified and independent actuary certified by the American Academy of Actuaries to be reasonable and necessary.
STATE OF NEW YORK
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2067--B
2019-2020 Regular Sessions
IN SENATE
January 22, 2019
___________
Introduced by Sens. JORDAN, AKSHAR, AMEDORE, ANTONACCI, BOYLE, GALLIVAN,
RANZENHOFER, TEDISCO -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the general municipal law, in relation to authorizing
all school districts to establish reserve funds
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 separately amended by chapters 414 and 416 of the
3 laws of 2016, is 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 the Scarsdale union free school district and the Vernon
18 Verona Sherrill central school district may establish insurance reserve
19 funds in compliance with this section and article seventy-four of the
20 education law and the Minisink Valley central and any other school
21 district may establish insurance reserve funds in compliance with this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08480-03-9
S. 2067--B 2
1 section and article seventy-four of the education law, in an amount and
2 manner determined by a qualified and independent actuary certified by
3 the American Academy of Actuaries to be reasonable and necessary, and
4 such school districts may make expenditures in compliance with this
5 section and article seventy-four of the education law from such reserve
6 fund for any loss, claim, action or judgment for which the school
7 districts are authorized or required to purchase or maintain insurance
8 for the kinds of risks for which insurance is authorized pursuant to
9 paragraph three of subsection (a) of section one thousand one hundred
10 thirteen of the insurance law.
11 § 2. This act shall take effect on the first of July next succeeding
12 the date on which it shall have become a law.
