 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7118
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 9, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
          Committee on Education
 
        AN ACT to amend the education law,  in  relation  to  insurance  reserve
          funds
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 3653 of the education law, as separately amended by
     2  chapters 414 and 416 of the laws of 2016, is amended to read as follows:
     3    § 3653. Insurance reserve funds. In addition to the provisions of this
     4  article and to the provisions of section six-n of the general  municipal
     5  law,  any  school  district  that establishes and maintains an insurance
     6  reserve fund to make expenditures from such reserve fund for  any  loss,
     7  claim,  action,  or judgment for which the school district is authorized
     8  or required to purchase or maintain insurance for the kinds of risks for
     9  which insurance is authorized pursuant to paragraph three of  subsection
    10  (a) of section eleven hundred thirteen of the insurance law, pursuant to
    11  section  six-n of the general municipal law or any other chapter of law,
    12  shall make all reserve fund transactions transparent to  the  public  by
    13  adopting  a  written  insurance reserve fund policy, to be posted on the
    14  school district's website, that includes: the  purpose  of  the  reserve
    15  fund,  the  optimal  amount of funding of the reserve fund, its intended
    16  duration, the conditions under which reserve fund assets will be used or
    17  replenished, a periodic analysis by the school board of the reserve fund
    18  balances to determine if reserves  are  at  reasonable  and  appropriate
    19  levels,  how  the  school  authorities  should  reduce  reserve funds to
    20  reasonable levels when conditions warrant, how school  authorities  will
    21  discontinue  the  reserve  fund  if  no longer needed and any additional
    22  policies that the school authorities deem  appropriate.    Such  reserve
    23  fund  shall  not exceed twenty percent of prior year actual expenditures
    24  for  health  insurance  authorized  pursuant  to  paragraph   three   of
    25  subsection (a) of section eleven hundred thirteen of the insurance law.
    26    § 2. This act shall take effect immediately.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10371-01-9
Relates to insurance reserve funds

What's Happening

Why It Matters
