NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8335
SPONSOR: Barclay TITLE OF BILL:
An act to amend the general municipal law, in relation to permitting the
Fulton city school district to establish an insurance reserve fund
PURPOSE OR GENERAL IDEA OF BILL:
This bill would allow the Fulton City School District to establish an
insurance reserve fund.
SUMMARY OF PROVISIONS:
Section one amends section 6-n of the general municipal law to add the
Fulton City School District to the list of school districts that are
authorized to create insurance reserve funds.
Section two establishes the effective date.
JUSTIFICATION:
This bill enables the. Fulton City 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.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8335
2023-2024 Regular Sessions
IN ASSEMBLY
December 13, 2023
___________
Introduced by M. of A. BARCLAY -- read once and referred to the Commit-
tee on Education
AN ACT to amend the general municipal law, in relation to permitting the
Fulton city school district to establish an insurance reserve fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 2 of section 6-n of the gener-
2 al municipal law, as separately amended by chapters 589 and 598 of the
3 laws of 2023, is amended to read as follows:
4 (a) The governing board of any municipal corporation may establish a
5 reserve fund to be known as the insurance reserve fund. Upon the
6 creation of the fund, the municipality may make expenditures from the
7 fund for any loss, claim, action or judgment for which the municipal
8 corporation is authorized or required to purchase or maintain insurance,
9 except those kinds of risks for which insurance is authorized pursuant
10 to paragraph one, two, three, fifteen, sixteen, seventeen, eighteen,
11 twenty-two or twenty-three of subsection (a) of section one thousand one
12 hundred thirteen of the insurance law, or for payments in lieu of
13 contributions under article eighteen of the labor law; provided however,
14 that no municipality shall make an expenditure from such fund for any
15 loss, claim, action or judgment for which the municipal corporation has
16 established a reserve fund under any other provision of law; provided,
17 further that the Scarsdale union free school district, the Mamaroneck
18 union free school district, the Minisink Valley central school district,
19 the Vernon Verona Sherrill central school district, the Ithaca city
20 school district, the Kenmore-Town of Tonawanda union free school
21 district, the Bedford central school district, the Grand Island central
22 school district, the Tonawanda city school district, the enlarged city
23 school district of Middletown, the Frontier central school district, the
24 Owego Apalachin central school district, the Maine-Endwell central
25 school district, the Binghamton city school district, the Candor central
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13280-02-3
A. 8335 2
1 school district, the Cleveland Hill union free school district, the
2 Depew union free school district, the Liverpool central school district,
3 the Auburn enlarged city school district, the Carmel central school
4 district, the Fulton city school district, and the Canastota central
5 school district may establish insurance reserve funds in compliance with
6 this section and article seventy-four of the education law and such
7 school districts may make expenditures in compliance with this section
8 and article seventy-four of the education law from such reserve fund for
9 any loss, claim, action or judgment for which the school districts are
10 authorized or required to purchase or maintain insurance for the kinds
11 of risks for which insurance is authorized pursuant to paragraph three
12 of subsection (a) of section one thousand one hundred thirteen of the
13 insurance law.
14 § 2. This act shall take effect immediately.
