What's happening
This bill allows the Orchard Park central school district to establish and use an insurance reserve fund like certain other districts.
Why it matters
Gives Orchard Park central school district a financial tool for risk management. By allowing the district to set aside money in an insurance reserve fund, it can better handle unexpected costs related to lawsuits, property damage, or other insurable events, rather than relying on emergency budget adjustments or borrowing.
Aligns Orchard Park with other school districts. This amendment puts Orchard Park on equal footing with districts like Scarsdale, Vernon Verona Sherrill, and Minisink Valley, potentially improving its fiscal stability and predictability.
Could affect local taxpayers and budgeting. With this reserve fund, the district may be less likely to need emergency tax increases or budget cuts in the event of costly claims, which can help smooth out tax rates and financial planning for residents.
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Who cares
Headline styles
Let Orchard Park Save Insurance
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Let Orchard Park Save Insurance
In Assembly Committee · Education · Sponsor Erik T. Bohen
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8779
IN SENATE
May 16, 2018
Introduced by Sen. JACOBS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to permitting the Orchard Park central school district 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 Orchard Park central school district 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 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15963-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to permitting the Orchard Park central school district to establish an insurance reserve fund
Purpose
This bill will allow Orchard Park central school district who have elected to self-insure to establish an insurance reserve fund.
Summary of provisions
Section 1 Amends paragraph (a) of subdivision 2 of section 6-n of the general municipal law by providing the Orchard Park central school district the ability to establish an insurance reserve fund.
Section 2 is the enacting clause
Justification
In order to prudently manage the rising costs of health insurance, certain school districts have elected to self-insure its health benefit program. Self-insurance offers many advantages for school district and its employees, however under current law, school districts are prevented from retaining more than four percent of their budget in an unappropri- ated fund balance. Authorizing certain school districts who self-insure to establish an insurance reserve fund will allow them to manage year- to-year variability in claims.
Legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.