Create Benefits Reserve Funds

Section 1. The general municipal law is amended by adding a new section 6-t to read as follows:

§ 6-t. Other post-employment benefit reserve funds. 1. As used in this section:

(a) "Municipal corporation" means a school district (except a school district in a city with a population of one hundred twenty-five thousand or more) or a board of cooperative educational services.

(b) "Other post-employment benefit" means any benefit other than a pension benefit that a municipal corporation is obligated by contract, local law, or statute to pay to, or on behalf of, an individual on account of that individual's prior employment by the municipal corporation, including post-employment healthcare benefits, regardless of the type of plan that provides them, but excluding termination benefits such as those described in section six-p of this article.

(c) "Participating employer" means a participating employer as defined in subdivision twenty of section two of the retirement and social security law or in subdivision twenty of section three hundred two of such law.

2. The governing board of any municipal corporation which is also a participating employer may establish by resolution a reserve fund for the purpose of financing other post-employment benefits.

3. There may be paid into another post-employment benefit reserve fund:

(a) Such amounts as may be provided therefor by budgetary appropriation or raised by tax therefor;

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

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(b) Such revenues as are not required by law to be paid into any other fund or account;

(c) Such other funds as may be legally appropriated; and

(d) Notwithstanding any law to the contrary, such amounts as may be transferred from a reserve fund established pursuant to section six-c, six-d, six-e, six-f, six-g, six-m, six-n, or six-p of this article comprised of moneys raised from the same tax base as the moneys in the other post-employment benefit reserve fund, or a reserve fund established pursuant to section thirty-six hundred fifty-one of the education law, provided, that any such transfer shall only be made by resolution of the governing board of such municipal corporation adopted after a public hearing held on at least fifteen days prior published notice in the official newspaper of the municipal corporation or, if the municipal corporation does not have an official newspaper, in at least one newspaper having general circulation in the municipal corporation.

4. The moneys in another post-employment benefit reserve fund shall be deposited and secured in the manner provided by section ten of this article, the governing board of such municipal corporation, or the chief fiscal officer thereof if the governing board shall delegate such duty to him or her, may invest the moneys in such fund in the manner provided by section eleven of this article, any interest earned or capital gain realized on the money so deposited or invested shall accrue to and become part of such fund.

5. The governing board of such municipal corporation by resolution may authorize expenditures from another post-employment benefit reserve fund except as otherwise provided by law, moneys in another post-employment benefit reserve fund may only be expended to finance other post-employment benefits.

6. The governing board of such municipal corporation by resolution may authorize the transfer of a portion of the moneys in another post-employment benefit reserve fund to a reserve fund of the municipal corporation established pursuant to section six-c, six-d, six-e, six-f, six-g, six-m, six-n, or six-p of this article comprised of moneys raised from the same tax base as the moneys in the retirement contribution reserve funds, or a reserve fund established pursuant to section thirty-six hundred fifty-one of the education law, provided, that any such transfer shall only be made by resolution of the governing board of such municipal corporation adopted after a public hearing held on at least fifteen days prior published notice in the official newspaper of the municipal corporation or, if the municipal corporation does not have an official newspaper, in at least one newspaper having general circulation in the municipal corporation.

7. The chief fiscal officer of such municipal corporation shall account for another post-employment benefit reserve fund separate and apart from all other funds of the municipal corporation such accounting shall show: the source, date and amount of each sum paid into the fund; the interest earned by such fund; capital gains or losses resulting from the sale of investments of this fund; the order, purpose thereof, date and amount of each payment from such fund; the assets of the fund, indicating cash balance and a schedule of investments.

The chief fiscal officer, within sixty days of the end of each fiscal year, shall furnish a detailed report of the operation and condition of this fund to the governing board.

8. No member of the governing board of such municipal corporation shall:

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(a) Authorize a withdrawal from another post-employment benefit reserve fund for any purpose except as provided in this section; or

(b) Expend any money withdrawn from such fund for a purpose other than as provided in this section.

9. The governing board of such municipal corporation by resolution may determine that an other post-employment benefit reserve fund is no longer needed and terminate the fund. Such resolution shall transfer any moneys remaining in such fund to one or more reserve funds of the municipal corporation established pursuant to section six-c, six-d, six-e, six-f, six-i, six-m, six-n, or six-p of this article comprised of moneys raised from the same tax base as the moneys in the other post-employment benefit reserve fund, or one or more reserve funds established pursuant to section thirty-six hundred fifty-one of the education law.

§ 2. Notwithstanding any other provision of law, within 180 days of the effective date of this act, a municipal corporation may by resolution transfer into another post-employment benefits reserve fund created in accordance with section 6-t of the general municipal law any funds previously committed or assigned by that municipal corporation for the purpose of paying other post-employment benefits as defined in section 6-t of the general municipal law, regardless of how those funds have been designated.

§ 3. Subdivisions 10 and 11 of section 6-p of the general municipal law are REPEALED.

§ 4. Paragraph b of subdivision 5 of section 1950 of the education law, as amended by chapter 296 of the laws of 2016, is amended to read as follows:

b. The cost of services herein referred to shall be the amount allocated to each component school district by the board of cooperative educational services to defray expenses of such board, including approved expenses from the testing of potable water systems of occupied school buildings under the board's jurisdiction as required pursuant to section eleven hundred ten of the public health law, except that that part of the salary paid any teacher, supervisor or other employee of the board of cooperative educational services which is in excess of thirty thousand dollars shall not be such an approved expense, and except also that administrative and clerical expenses shall not exceed ten percent of the total expenses for purposes of this computation. Any gifts, donations or interest earned by the board of cooperative educational services or on behalf of the board of cooperative educational services by the dormitory authority or any other source shall not be deducted in determining the cost of services allocated to each component school district. [Any payments made to a component school district by the board of cooperative educational services pursuant to subdivision eleven of section six-p of the general municipal law attributable to an approved cost of service computed pursuant to this subdivision shall be deducted from the cost of services allocated to such component school district.] The expense of transportation provided by the board of cooperative educational services pursuant to paragraph q of subdivision four of this section shall be eligible for aid apportioned pursuant to subdivision seven of section thirty-six hundred two of this chapter and no board of cooperative educational services transportation expense shall be an approved cost of services for the computation of aid under this subdivision. Transportation expense pursuant to paragraph q of subdivision four of this section shall be included in the computation of the ten percent limitation on administrative and clerical expenses.

§ 5. This act shall take effect immediately.