What's happening
This bill repeals certain provisions of the workers' compensation law, mainly removing subdivision 2 of section 50 and related references.
Why it matters
Removes an alternative method for employers to secure workers' compensation coverage. By repealing subdivision 2 of section 50 and related references, the bill eliminates a specific way employers could previously satisfy their workers’ compensation obligations. This means employers must now rely on the remaining methods, potentially reducing flexibility for certain businesses and municipalities.
Affects fire and ambulance districts’ insurance options. The changes clarify that fire and ambulance districts can only secure coverage through the primary method described in subdivision one, possibly impacting how these districts purchase insurance and the administrative steps involved.
Streamlines and updates legal references throughout the law. By removing references to the repealed subdivision in multiple sections, the bill cleans up the statutory language, which may help reduce confusion but could also have downstream effects for entities that previously used the deleted provisions.
May influence insurance market dynamics and administrative processes. With one less statutory option for employers to obtain workers’ compensation insurance, insurance carriers and self-insured groups may see changes in demand, and employers may need to adapt their compliance or withdrawal procedures.
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Who cares
Headline styles
Repeal Some Workers' Comp Rules
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to labor
- Referred to labor
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1023
2019-2020 Regular Sessions
IN SENATE
January 10, 2019
Introduced by Sen. RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to securing compensation to employees; and repealing certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 50 of the workers' compensation law is REPEALED.
§ 2. Subdivision 7 of section 54 of the workers' compensation law is REPEALED.
§ 3. Subdivision 6-a of section 54 of the workers' compensation law, as amended by chapter 24 of the laws of 1988, is amended to read as follows:
6-a. Insurance contracts with fire or ambulance districts. Notwithstanding any other provision of this section or of this chapter, any insurance contract to secure workers' compensation for a fire or ambulance district pursuant to subdivision one [or subdivision two] of section fifty of this chapter issued to take effect on or after July first, nineteen hundred sixty, in relation to a fire district and January first, in the year next succeeding the year in which this subdivision as hereby amended becomes effective, in relation to an ambulance district or any such contract renewed to continue in effect on or after such dates, shall provide workers' compensation coverage for all fire or ambulance district officers, whether elective or appointive, and all fire or ambulance district employees, whether or not they are compensated for their services, unless the board of fire or ambulance commissioners of the fire district or ambulance district by resolution elects not to provide such coverage for any one or more of such officers or employees, or class thereof. Such election not to provide such coverage shall be effective with respect to all such insurance contracts there-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06787-01-9
S. 1023 2
after issued to such fire or ambulance district by any insurance carrier until revoked in whole or in part by resolution of the board of fire or ambulance commissioners of the fire or ambulance district. Such election not to provide such coverage shall not become effective until thirty days after a copy of such resolution has been filed with the chairman of the workers' compensation board and with the insurance carrier and a copy thereof is furnished to each officer and employee as to whom such revocation is applicable. The chairman of the workers' compensation board shall prescribe the form of such resolution. The provisions of this subdivision shall not be applicable in cases where the injury arises out of and in the course of duty as a volunteer firefighter or a volunteer ambulance worker or as a civil defense volunteer and where the computation of benefits would be made under the provisions of the volunteer firefighters' benefit law or the volunteer ambulance workers' benefit law or under article ten of this chapter.
§ 4. Subdivision a of section 94 of the workers' compensation law, as amended by chapter 635 of the laws of 1996, is amended to read as follows:
a. Any employer may, upon complying with subdivision [two or] three of section fifty of this chapter, withdraw from the fund by turning in his insurance contract for cancellation, provided he or she has given written notice to the fund of his or her intention to withdraw not less than thirty days before the effective date of such cancellation. Upon receipt of such notice the fund shall, at least ten days prior to the effective date file in the office of the chairman a notice of such cancellation date.
In no event shall the insurance contract be deemed cancelled until at least ten days after the date of such filing, any earlier date mentioned in the notice to the contrary notwithstanding.
[If an employer withdraws from the fund upon complying with subdivision two of section fifty of this chapter, the new insurance contract with the stock corporation, mutual corporation or reciprocal insurer shall be deemed not to take effect until the cancellation of such employer's contract with the state insurance fund has become effective.]
§ 5. Subdivision 4 of section 151 of the workers' compensation law, as added by section 22 of part GG of chapter 57 of the laws of 2013, is amended to read as follows:
4. For those affected employers obtaining coverage:
(a) by insuring with the state fund pursuant to subdivision one of section fifty of this chapter; or (b) [through a policy pursuant to subdivision two of section fifty of this chapter; or (c)] through a county self-insurance plan under article five of this chapter; or [(d)] (c) through a group private or public self-insurer pursuant to subdivision three-a of section fifty of this chapter, such assessment amounts shall be collected and remitted to the chair by the carrier or the state insurance fund, or county plan, or group private or public self-insurer, on behalf of the employer(s) until such time as the board establishes a direct employer payment process. Affected private or public employers providing compensation through self insurance pursuant to subdivision three of section fifty of this chapter shall pay assessment amounts directly to the chair.
§ 6. Subdivision 5 of section 157 of the workers' compensation law, as added by chapter 24 of the laws of 1988, is amended to read as follows:
5. "[Subdivisions] Subdivision one [and two] of section fifty", as used in section one hundred fifty-one of this chapter, includes subdivision nine of section thirty of the volunteer firefighters' benefit law
S. 1023 3
and subdivision nine of section thirty of the volunteer ambulance workers' benefit law.
§ 7. This act shall take effect on the three hundred sixty-sixth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to securing compensation to employees; and repealing certain provisions of such law relating thereto
Purpose
Eliminates private insurance carriers as a source of workers compen- sation insurance
Summary of provisions
This legislation would eliminate the ability of private insurance compa- nies to provide workers compensation coverage. An employer could obtain workers' compensation insurance from the State Insurance Fund, or could self-insure.
Justification
The State Insurance Fund is a state-regulated entity that provides competitive rates for workers' compensation and acts as the insurer of last resort. The existence of SIF allows private insurers to profit by handling the healthiest companies. Despite the structure of this market, private insurers have pressured rate increases over the years. This has lead employers to support cuts in workers' compensation benefits, which impacts injured workers' but does not address the role of insurance companies in pressuring the cost increases on the system.
Five states have already eliminated private insurers from the workers' compensation process, relying on a state-supported insurer or the use of self-insurance by companies large enough to handle costs as they occur. New York should follow this lead and end the use of private insurance, and implement a sole carrier insurance system to benefit both workers and employers.
Fiscal impact
None. The State Insurance Fund is funded entirely through premiums paid by employers and the state already utilizes SIF for its workers' compen- sation needs in its role as an employer.
Effective date
One year and one day after the day on which this bill shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.