What's happening
This bill allows the Depew union free school district to establish an insurance reserve fund like certain other districts.
Why it matters
Provides Depew union free school district with the same financial tool as other named districts. allowing it to set aside money in an insurance reserve fund can help the district better manage unpredictable costs from lawsuits, claims, or insurance-related expenses.
May improve the district’s financial stability and planning. having a dedicated reserve for insurance purposes can reduce the need for emergency budget cuts or sudden tax increases if unexpected liability arises.
Could result in cost savings over time. by paying certain claims directly from the reserve fund instead of purchasing commercial insurance for all risks, the district might be able to spend less on insurance premiums.
Aligns Depew with best practices in risk management. joining other districts authorized to have such funds signals a move toward more prudent and proactive financial management, potentially benefiting students, staff, and taxpayers.
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Who cares
Headline styles
Let Depew Schools Save Insurance
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to education
- Delivered to assembly
- Passed senateVote 60–0
- Ordered to third reading cal.892
- Reported and committed to rules
- Referred to local government
- Referred to rules
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 Depew School Insurance Fund
In Assembly Committee · Education · Sponsor Monica P. Wallace
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6880
2019-2020 Regular Sessions
IN SENATE
December 4, 2019
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the general municipal law, in relation to permitting the Depew union free 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 318, 321, 325, 342, 499, 509, 510 and 551 of the laws of 2019, 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, the Mamaroneck union free school district, the Minisink Valley central school district, the Vernon Verona Sherrill central school district, [and] the Ithaca city school district [and], the Kenmore-Town of Tonawanda union free school district, [and] the Bedford central school district [and], the Grand Island central school district [and], the Tonawanda city school district [and], the enlarged city school district of Middletown [and],
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14374-01-9
S. 6880 2
the Frontier central school district and the Depew union free 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.
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 Depew union free school district to establish an insurance reserve fund
Purpose
To authorize the Depew union free school district to establish an insur- ance reserve fund in order to make expenditures related to claims, et al, specific to accident and health insurance.
Summary of provisions
Section one amends the general municipal law governing insurance reserve funds to permit the Depew union free school district to establish such reserve funds.
Section 2 establishes the effective date.
Justification
In an effort to contain costs associated with increasing health insur- ance premiums, which create a significant strain on school budgets annu- ally, many school districts have opted to move to a self-insurance model for health benefit programs as opposed to traditional premium based programs.
The Depew union free school district (UFSD) made the decision to move to a self-insurance model. Doing so has been fruitful, as the district has achieved savings since moving to said model. However, the challenge with such a model is the lack of predictability with claims. Such unpredict- ability, coupled with the existing statutory restrictions related to fund balances necessitates this authorization to permit the Depew UFSD to establish an insurance reserve fund. The fund will help offset costs associated with payment of health care claims without placing a strain on a particular budgetary year.
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.