 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5138
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 11, 2021
                                       ___________
 
        Introduced  by M. of A. BENEDETTO, COLTON, JACKSON -- Multi-Sponsored by
          -- M. of A.  TAYLOR -- read once and  referred  to  the  Committee  on
          Education
 
        AN  ACT  to  amend  the  education law, in relation to insurance reserve
          funds
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 3653 of the education law, as separately amended by
     2  chapters 414 and 416 of the laws of 2016, is amended to read as follows:
     3    § 3653. Insurance reserve funds. In addition to the provisions of this
     4  article  and to the provisions of section six-n of the general municipal
     5  law, any school district that establishes  and  maintains  an  insurance
     6  reserve  fund  to make expenditures from such reserve fund for any loss,
     7  claim, action, or judgment for which the school district  is  authorized
     8  or required to purchase or maintain insurance for the kinds of risks for
     9  which  insurance is authorized pursuant to paragraph three of subsection
    10  (a) of section eleven hundred thirteen of the insurance law, pursuant to
    11  section six-n of the general municipal law or any other chapter of  law,
    12  shall  make  all  reserve fund transactions transparent to the public by
    13  adopting a written insurance reserve fund policy, to be  posted  on  the
    14  school  district's  website,  that  includes: the purpose of the reserve
    15  fund, the optimal amount of funding of the reserve  fund,  its  intended
    16  duration, the conditions under which reserve fund assets will be used or
    17  replenished, a periodic analysis by the school board of the reserve fund
    18  balances  to  determine  if  reserves  are at reasonable and appropriate
    19  levels, how the  school  authorities  should  reduce  reserve  funds  to
    20  reasonable  levels  when conditions warrant, how school authorities will
    21  discontinue the reserve fund if no  longer  needed  and  any  additional
    22  policies  that  the  school authorities deem appropriate.   Such reserve
    23  fund shall not exceed twenty percent of prior year  actual  expenditures
    24  for   health   insurance  authorized  pursuant  to  paragraph  three  of
    25  subsection (a) of section eleven hundred thirteen of the insurance law.
    26    § 2. This act shall take effect immediately.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08455-01-1
Relates to insurance reserve funds

What's Happening

Why It Matters
