What's happening
This bill allows the Bedford Central School District to establish and use insurance reserve funds under the same rules as certain other districts.
Why it matters
Levels the playing field for Bedford Central. By allowing Bedford Central School District to set up insurance reserve funds like other named districts, the bill ensures it can better manage unexpected costs from lawsuits, claims, or losses, providing more financial stability.
Potential for local tax impact. With access to insurance reserves, the district may better absorb large, unforeseen expenses, which could help prevent sudden spikes in local taxes or emergency budget cuts that might otherwise result from major claims.
Aligns financial practices with state law. The bill specifically requires Bedford Central to comply with both general municipal and education law rules for these reserve funds, ensuring transparency and accountability in how these public monies are managed and spent.
Improved risk management. By explicitly permitting the district to reserve funds for certain insurance risks, the legislation helps the district plan ahead and respond proactively to potential liabilities, which can enhance its long-term financial health and protect educational services.
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Who cares
Headline styles
Allow Bedford School Insurance Fund
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.325
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.367
- Substituted for A123
- Referred to education
- Delivered to assembly
- Passed senateVote 60–1
- Advanced to third reading
- 2nd report cal.
- 1st report cal.204
Show 1 earlier action
- 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.
Allow School Insurance Funds
Assembly Floor Calendar · Sponsor David Buchwald
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2685
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sens. MAYER, HARCKHAM -- 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 insurance reserve funds for the Bedford central school district
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 Bedford 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00932-01-9
S. 2685 2
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.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to insurance reserve funds for the Bedford central school district
Purpose or general idea of bill
To allow the Bedford Central School District to create an insurance reserve fund and make expenditures from such reserve fund for any loss, claim, action or judgment for which such school district is authorized or required to purchase or maintain insurance.
Summary of provisions
Section 1 amends paragraph (a) of subdivision 2 of section 6-n of the general municipal law, as amended by chapter 414 and 416 of the laws of 2016, to provide that the Bedford Central School District may establish an insurance reserve fund and such school district may make expenditures from such reserve fund for any loss, claim, action or judgment for which the school district is 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.
Section 2 sets the effective date.
Justification
A health insurance reserve fund beneficial is beneficial to school districts. The bill will allow the Bedford Central School District to avoid the financial burden that would result when there are large year- to-year variations in claims against a self-funded health insurance program. Similar bills have been approved in recent years for the Vernon Verona Sherill and Minisink Valley School Districts. A few years ago, a large onetime insurance claim with no insurance reserve available contributed to the to the Bedford Central School District being placed on this fiscal distress list maintained by the State Comptroller's office.
Prior legislative history
2017 - 2018: A.8844 (Buchwald) - Passed Assembly 142 to 0 / S.7349 (Murphy) - Committed to Rules
Fiscal implications for state and local governments
None to the State.
Effect on fines, terms of imprisonment or other penal sanctions
None.
Effective date
Shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.