Establishes the office of risk assessment and management within the office of general services

The amendment to this bill S.6885-A adds qualifications that the risk manager should have to be appointed to that position.

Among the responsibilities of the risk manager include: 1) conduct an inventory of all state real property and ascertain past, present and future liability exposure due to state operations on such property. 2) conduct a study of the actions of the court of claims and payment of those claims to ascertain trends in the payment of state claims due to injury of persons or property. 3) conduct a study of current state practices and how those practices could be altered to minimize future claims brought against the state. This will be done by advising various State agencies on proper risk management techniques and procedures. 4) the amendment to this bill S.6885-A adds the ability to look at financial losses arising from the ownership or use of real or personal property and to establish business continuity programs for state services.

State agencies are to cooperate with the work of the State risk manager. Once the risk manager has suggested a risk management technique, the state agency has time to comment on that recommendation. Any public benefit corporation or public authority can contract with the state risk manager to perform risk management services or supplement already existing internal risk assessment and management services.

The bill also clearly authorizes the state's risk manager to contract with outside vendors or consultants with expertise in risk management, claims management, or safety management.

Section 2 provides for an effective date of 180 days after the bill shall have become law.

Existing law

None.

Justification

The State of New York each year faces dramatic exposure and third-party liability both to persons under the care and custody of the State and visitors to State premises. In 1995, the liabilities for Workers' Compensation alone exceed $150 million per year and tort actions have cost the State better than $70 million per year. The creation of central office of risk assessment and management would go far to determine the full extent of the State's exposure to civil tort liability and allow the State to systemically reduce such exposure through the integration of professional risk management procedures into daily State operations.

Enactment of this measure would also bring New York State in line with a majority of states, most larger municipalities, and most large corporate entities that have centralized risk management procedures. Not only will this bill help reduce the annual payments to satisfy personal and property damage against the State, it will help to reduce personal injuries sustained by State employees and members of the general public.

Legislative history

New Bill.

Fiscal implications

No initial cost to the State and in future years, there will be sizable savings in state costs for injuries sustained to persons and property. In financing the work of the new risk manager, many other states and municipal governments appoint an experienced risk management company to conduct the work of risk management and assessment. The funds needed to support such risk manager's work is received from a percentage of money that the risk manager saves the participating state or municipality. Preliminary estimates are that this bill will reduce State costs by $ 150 Million in the first year.

Local fiscal implications

None.

Effective date

180 days after its enactment into law.