Provides for municipal cooperative health benefit plans, a study of community rating and the provision of claims experience to a municipality and other provisions

Title of bill

An act to amend the insurance law, in relation to municipal cooperative health benefit plans, a study of community rating and the provision of claims experience to a municipality; to amend the agriculture and markets law and the county law, in relation to the sharing of the duties of weights and measures between municipalities; to amend the general municipal law and the highway law, in relation to mutual aid; and to amend the public health law, in relation to the composition of county and part-county boards of health

Purpose

To implement several proposals of the Commission on Local Government Efficiency and Competitiveness.

Summary of provisions

Sections 1 through 7 of the bill amend the Insurance Law to relax requirements for forming a municipal cooperative health benefit plan pursuant to Article 47 of the Insurance Law by requiring insurers to provide up to 3 years of claims experience, by reducing the minimum number of municipal corporations needed to form a cooperative from 5 to 3, by providing flexibility in the reserve requirements, by allowing new cooperatives to amass reserves over a five-year transition period, and by directing the Insurance department to order a study of the impact on the community-rated health insurance market of allowing municipalities with 50 or fewer employees to join with larger municipalities to purchase experience rated policies.

Sections 8 and 9 of the bill amend the Agriculture and Markets Law to allow multiple counties to share one Director of Weights and Measures.

Sections 10 through 13 of the bill amend the General Municipal Law and the Highway Law to facilitate shared services agreements among municipalities and between State agencies.

Section 14 of the bill amends the Public Health Law to allow certain county and part-county health districts to share the same director/commissioner, subject to the State Department of Health.

Section 15 of the bill provides for an immediate effective date.

Justification

Although the legislation authorizing municipal cooperative health benefit plans was first enacted in 1994, not one single plan has been established. Municipalities have been deterred from forming such cooperatives for a variety of reasons including stringent statutory requirements and lack of access to claim experience. Several counties did express interest in cooperative insurance plans to the Commission.

The amendments that would permit the sharing of Directors of Weights and Measures and Public Health Directors is to meet an expressed interest by rural counties that would help reduce administrative costs with no diminution in service.

In regard to highway shared services agreements, the present law limits the authority of DOT to share services by only allowing for snow and ice removal. The authority to contract for shared services in this bill is broadened to encompass such other services such as road maintenance and repair as well as mutual aid in all emergencies.

Legislative history

These proposals were included in the Governor's 2008-2009 proposed Budget (See S-6806, Part U of 2008). 2008: S.8583 Passed Senate

Fiscal implications

None.

Effective date

Immediately.