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Who cares
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Sponsors
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History
- Reported and committed to finance
- Referred to labor
Full text
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Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to prohibiting the transfer of state insurance fund balances to the general fund
Summary of provisions
Section 1. Adds a new section 101 to the worker's compensation law prohibiting the diversion of funds dedicated to the state insurance fund to the general fund.
Section 2. Establishes procedures and action on requests for diversions of funds during certain periods and circumstances by legislative action.
Section 3. Establishes the effective date.
Justification
Virtually all employers in New York State must provide workers' compensation coverage for their employees. The state insurance fund was, therefore, created in 1914 to act as an insurer of last resort for the purpose of insuring employers against liability for personal injuries or death sustained by their employees. However, since its inception over one billion dollars have been diverted from the state insurance fund to the general fund. Therefore, instead of using reserve or surplus funds to rebate policyholders against unproven claims, or to lower premiums for policyholders, and thereby decrease the cost of doing business in New York, the state has used the insurance fund as a source of ready cash from which to fund other governmental purposes. Accordingly, legislation is needed to prohibit such diversions from the insurance fund and to improve transparency and citizen awareness should an overriding emergency nevertheless require diversion of resources to the General Fund.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.