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History
- Referred to rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7896 Revised Memo 6/17/2014
Title of bill
An act to amend the workers' compensation law, in relation to group self insurers; and providing for the repeal of such provisions upon expira- tion thereof
Purpose
To relieve rate pressure on a fund where there is sufficient alternate security to provide for payment of liabilities
Summary of provisions
Adds a new subparagraph (c) to section 50 subdivision 3-a paragraph (10) of the Workers Compensation Law to allow the Comp Board to reduce reserve requirements by as much as 20% if it finds other satisfactory means for a group self-insurer plan to secure claims. The other means include a demonstration of the following:
(1) the existence of a collective bargaining agreement which requires that employers obtain workers compensation coverage from the group;
(2) the group has the ability to set, revise, or re-set rates on at least a monthly schedule as may be necessary to provide for collection of additional funds from group members in the event the deposit with the board is insufficient to meet the liabilities of the group;
(3) the group has established a Delinquency Fund or has agreements with a fund that will be liable for any uncollected delinquent contributions to the group;
(4) the group members have assumed joint and several obligation for their period of membership for any liabilities of all claims of the fund;
(5) there is a direct or indirect penalty or withdrawal liability for any member who withdraws from the plan;
(6) the plan is approved by the federal department of labor as an Employee Retirement Income Security Act (ERISA) fund.
Upon a finding by the Chair of the Workers Compensation Board that the group fails to meet the requirements set forth in this clause, approval shall be withdrawn, with written notice stating the reasons therefor.
Existing law
New bill.
Justification
The result of reform can be a loss of flexibility. This is what happened in the area of regulation of self-insured funds. The reforms to assure needed reserves to secure liabilities were necessary. However, they also had the effect of removing some of the flexibility under which a self- insured fund would be able to show sufficient alternate security. This bill provides such flexibility.
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately and shall expire and be deemed repealed on June 30, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.