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Sponsors
1 Co-sponsor
History
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to limitations on expenditures from the insurance reserve fund
In Senate Committee · Rules · Sponsor Amy Paulin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7528
Title of bill
An act to amend the general municipal law, in relation to limitations on expenditures from the insurance reserve fund
Summary of provisions
This bill would strike out the current reference to paragraph three of subsection (a) of section one thousand one hundred thirteen of the insurance law, currently contained in section 6-n(2) (a) of the general municipal law.
Justification
The law currently authorizes municipal corporations to purchase a health insurance plan or to self-insure to provide health insurance for their officers and employees, and retired officers and employees. Further, section 6-n of the general municipal law authorizes municipal corporations to establish and make expenditures from an insurance reserve fund for any loss, claim, action or judgment for which the municipal corporation is authorized or required to purchase or maintain insurance. However, section 6-n exempts certain kinds of risks enumerated in the insurance law, including accident and health insurance, from the types of risks for which the municipality may make such expenditures. In this way, section 6-n of the general municipal law prohibits municipal corporations from making expenditures from insurance reserve funds in relation to self-funded health insurance programs.
However, there is an anomaly in the law because section 4706 of the insurance law recognizes the stabilizing benefits of maintaining a reserve fund by requiring such a fund where three or more municipal corporations join together to form a municipal cooperative health benefit plan. This legislation recognizes that the same rationale makes a health insurance reserve fund beneficial in the context of a single municipal corporation that self-insures.
By deleting the reference to health insurance from the list of exemptions in 6-n, this legislation extends to municipal corporations and taxpayers the significant stabilizing benefits of maintaining a reserve fund, and avoids the financial burden that would result when a municipal corporation wishing to self-insure could not do so because of the large year-to-year variations in claims against a self-funded health insurance program.
Legislative history
New bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately upon becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.