What's happening
This bill allows the Middletown enlarged city school district to establish and use an insurance reserve fund.
Why it matters
Empowering Local Financial Planning. By allowing the Middletown enlarged city school district to create and use an insurance reserve fund, the district gains more flexibility and autonomy in managing financial risks related to lawsuits, property damage, or other insurable events, potentially reducing the impact of unforeseen costs on its annual budget.
Potential Stabilization of School Finances. The ability to set aside money in advance for insurance-related claims can help the school district avoid sudden spikes in expenses, which might otherwise lead to cuts in educational programs or services when unexpected claims arise.
Alignment with Other Districts. This amendment expands a financial tool already available to other specific New York school districts, promoting fairness and consistency in how districts can prepare for and respond to insurance risks under state law.
Safeguarding Taxpayer Resources. By proactively managing insurance liabilities through a dedicated reserve fund, the district may reduce the need for emergency funding or higher taxes in the event of large claims, benefiting both schools and the wider community.
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Who cares
Headline styles
Let Middletown Save for Insurance
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Substituted by S1012
- Advanced to third reading cal.244
- Reported
- 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 Save for Insurance
Signed by Governor · Sponsor Jen Metzger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5000
2019-2020 Regular Sessions
IN ASSEMBLY
February 6, 2019
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.
LBD05858-01-9
A. 5000 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.