What's happening
This bill allows the enlarged city school district of Middletown to establish and use an insurance reserve fund.
Why it matters
Financial stability and risk management. Allowing the Middletown school district to establish an insurance reserve fund gives the district a dedicated pool of money to pay for potential losses, claims, or judgments—reducing the risk of sudden budget shortfalls due to unexpected events.
Local control and planning. The amendment puts Middletown on equal footing with other districts (like Scarsdale and Minisink Valley) that already have this authority, enabling local officials to proactively manage insurance-related expenses and plan for the long term.
Potential taxpayer impact. By managing risks internally through a reserve fund, the district may avoid large, unplanned expenditures that could otherwise lead to sudden tax increases or cuts in educational services, offering more predictable financial impacts for residents.
Legal clarity and compliance. The bill ensures that the Middletown school district's use of funds aligns with both the General Municipal Law and the Education Law, providing oversight and legal safeguards for how these reserve funds can be established and spent.
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Who cares
Headline styles
Allow Middletown Insurance Fund
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.582
- Returned to assembly
- Died in senate
- Referred to rules
- Delivered to senate
- Passed assembly
- Ordered to third reading rules cal.189
- Rules report cal.189
- Reported
Show 3 earlier actions
- Reported referred to rules
- Reported referred to ways and means
- Referred to education
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.
Let Middletown Build Insurance Fund
In Senate Committee · Rules · Sponsor John J. Bonacic
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8130
2017-2018 Regular Sessions
IN ASSEMBLY
May 31, 2017
Introduced by M. of A. GUNTHER -- read once and referred to the Committee on Education
AN ACT to amend the general municipal law, in relation to permitting the enlarged school district of Middletown to establish an insurance reserve fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2 of section 6-n of the general municipal law, as separately amended by chapters 414 and 416 of the laws of 2016, is amended to read as follows:
(a) The governing board of any municipal corporation may establish a reserve fund to be known as the insurance reserve fund. Upon the creation of the fund, the municipality may make expenditures from the fund for any loss, claim, action or judgment for which the municipal corporation is authorized or required to purchase or maintain insurance, except those kinds of risks for which insurance is authorized pursuant to paragraph one, two, three, fifteen, sixteen, seventeen, eighteen, twenty-two or twenty-three of subsection (a) of section one thousand one hundred thirteen of the insurance law, or for payments in lieu of contributions under article eighteen of the labor law; provided however, that no municipality shall make an expenditure from such fund for any loss, claim, action or judgment for which the municipal corporation has established a reserve fund under any other provision of law; provided, further that the Scarsdale union free school district [and], the Vernon Verona Sherrill central school district [may establish insurance reserve funds in compliance with this section and article seventy-four of the education law and], the Minisink Valley central school district and the enlarged city school district of Middletown may establish insurance reserve funds in compliance with this section and article seventy-four of the education law and such school districts may make expenditures in compliance with this section and article seventy-four of the education
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11872-01-7
A. 8130 2
law from such reserve fund for any loss, claim, action or judgment for which the school districts are authorized or required to purchase or maintain insurance for the kinds of risks for which insurance is authorized pursuant to paragraph three of subsection (a) of section one thousand one hundred thirteen of the insurance law.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.