What's happening
This bill allows the Ithaca City School District to establish and use insurance reserve funds like certain other school districts.
Why it matters
Provides the Ithaca City School District with greater financial flexibility and risk management tools. by allowing it to create and use insurance reserve funds, similar to other specified districts.
May help the school district better manage unexpected costs. related to insurance claims, lawsuits, or legal judgments, potentially stabilizing budgets and protecting educational programs from sudden financial shocks.
Enables proactive planning and local control over insurance-related expenditures. , which could result in cost savings for taxpayers and more efficient district operations.
Aligns Ithaca with other districts already granted this authority. , reflecting a move toward equal treatment and possibly influencing future decisions for other school districts seeking similar capabilities.
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Who cares
Headline styles
Expand School Insurance Reserves
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A505
- Ordered to third reading cal.1211
- Committee discharged 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.
Expand School Insurance Funds
Signed by Governor · Sponsor Barbara Lifton
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
948
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. O'MARA -- 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 of certain school districts
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 Ithaca city 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.
LBD05101-01-9
S. 948 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 of certain school districts
Purpose or general idea of bill
To provide that in the case of the Ithaca City School District, an insurance reserve fund may be established 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.
Summary of specific provisions
Amends paragraph (a) of subdivision 2 of section 6-n of the general municipal law.
Justification
In order to prudently manage the rising costs of health insurance, the Ithaca City School District's (ICSD) Board of Education has elected to self-insure its health benefit program as of July 1, 2017. Self-insu- rance offers many advantages for ICSD and its employees, however under current law, school districts are prevented from retaining more than 4 E of their budget in an unappropriated fund balance. By authorizing ICSD to establish its own insurance reserve fund through this legislation, as exists for other school districts in the state, the District will be able to meet its duties of self-insurance. This essential tool will allow ICSD to manage year-to-year variability in claims.
Prior legislative history
2018 - S7055A
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.