Establishes the Electrical Bureau of State Fire; eliminates the New York Board of Fire Underwriters; repeals chapters 241 of 1930 and 181 of 1939 relating thereto

Title of bill

An act providing for the dissolution of the New York Board of Fire Underwriters, and providing for the transfer of the powers, duties, functions, records and employees of the New York Board of Fire Underwriters Bureau of Electricity; to repeal chapter 241 of the laws of 1930 relating to the New York Board of Fire Underwriters and defining the powers and jurisdiction of such corporation; and to repeal chapter 181 of the laws of 1939 amending chapter 241 of the laws of 1930, entitled "An act in relation to the New York Board of Fire Underwriters, defining the powers and jurisdiction of such corporation", relating to the amount and assessment of expenses of the fire patrol

Purpose

This bill would abolish the New York Board of Fire Underwriters, along with its assessment power, and transfer the Board's Bureau of Electricity to the Secretary of State's Office of Fire Prevention and Control.

Summary of provisions

Section 1 - Repeals chapter 241 of the laws of 1930.

Section 2 - Repeals chapter 181 of the laws of 1939

Section 3 - Transfers any remaining assets of the Board to the State of New York and permits the State to use, in its discretion, such assets to support the operations of the newly formed Electrical Bureau of State Fire.

Section 4 through 10 - effectuates the transfer of duties, records, employees and the like from the Board's Bureau of Electricity to the Secretary of State's Office of Fire Prevention and Control.

Section 11 - Establishes the Secretary of State's Office of Fire Prevention and Control as a pilot program.

Section 12 - Separability clause.

Section 13 - Effective date.

Justification

The Board of Fire Underwriters (the "Board") was created at the request of the insurance industry in the late 1800's, to assist them in protecting insured's property in the City of New York. To attain this goal, the Board created the Fire Patrol, of purpose of which was to respond to fires at or near an insured's location and attempt to remove, preserve or otherwise protect property contained therein from such fire, or other harmful effects such as smoke or water damage. The Fire Patrol was funded by self assessments on Board members.

However, over time the Board found that the Fire Patrol was unable to adequately protect property from fires or related damage (e.g. modern electronics, prevalent throughout residences and offices, are often damaged beyond use despite Patrol efforts). As such, the effectiveness and use of the Fire Patrol diminished to the point where it was determined by the Board that it was no longer necessary and the self-assessments were burdening member companies with unnecessary costs that only increased the eventual cost to the consumer. The result was that the Fire Patrol was disbanded in 2006.

Given that the original purpose of the Board is no longer relevant, it is appropriate to provide for its dissolution.

In the 1930's, the Board also created the Bureau of Electricity, the purpose of which was to perform electrical inspections for any municipalities, individuals or entities that requested them. Such Bureau may still have a public value in fire prevention, and as such is being transferred to Secretary of State's Office of Fire Prevention as a pilot program. Any assets held by the Board are being transferred to New York State, which may use them in whatever amount deemed necessary to support this pilot program.

Prior legislative history

New legislation.

Fiscal implications

To be determined.

Effective date

December 31, 2009.