What's happening
This bill allows the Carmel Central School District to establish and use insurance reserve funds like several other school districts.
Why it matters
Gives Carmel Central School District more local control over its finances. by allowing it to set aside money in insurance reserve funds, potentially making it easier to manage unexpected costs related to insurance claims or lawsuits.
Aligns Carmel with other school districts. already permitted to establish these funds, promoting fairness and consistency across districts in New York State.
May help protect educational programs and services. by ensuring that funds for insurance-related expenses are available, reducing the likelihood that money would need to be diverted from classrooms or student activities in the event of a major claim.
Supports long-term financial planning and risk management. for the district, which could lead to more stable budgeting and potentially lower insurance premiums over time.
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Who cares
Headline styles
Let Carmel Schools Save
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to education
- Delivered to assembly
- Passed senateVote 59–1
- Ordered to third reading cal.810
- Reported and committed to rules
- 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.
Let Carmel Schools Save
In Assembly Committee · Education · Sponsor Sandy Galef
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7131
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. 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 Carmel 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 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 the Frontier central school district and the Carmel 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14634-01-0
S. 7131 2
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 insurance reserve funds for the Carmel central school district
Purpose
The purpose of this bill is to grant the Carmel central school district the authority to establish insurance reserve funds
Summary of provisions
Section 1 Amends paragraph (a) of subdivision 2 of section 6-n of the general municipal law by providing the Carmel central school district the ability to establish an insurance reserve fund.
Section 2 states effective date.
Justification
This bill allows Carmel central school district to maintain a health insurance reserve fund. Under current law, school districts are prevented from retaining more than four percent of their budget in an unappropriated fund balance. Authorizing certain self-insured school districts to establish an insurance reserve fund will help avoid the financial burden that could result due to large year-to-year variations in claims.
Legislative history
This is a new bill.
Fiscal implications
None to the State.
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.