NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6380
TITLE OF BILL:
An act to amend the general municipal law, in relation to permitting the
Maine-Endwell central school district to establish an insurance reserve
PURPOSE OR GENERAL IDEA OF BILL:
This bill would allow Maine-Endwell central school district who have
elected to self-insure to establish an insurance reserve fund.
SUMMARY OF PROVISIONS:
Section 1: Paragraph (a) of subdivision 2 section 6-n of the General
Municipal law by providing the Maine-Endwell central school district the
ability to establish an insurance reserve fund.
Section 2: Establishes the effective date.
The Maine-Endwell central school district is moving to a self-funded
health insurance model on July 1,2021. In order to prudently manage the
rising costs of health insurance, certain school districts have elected
to self-insure its health benefit program. Self-insurance offers many
advantages for school districts and their employees.
Under current law, school districts are prevented from retaining more
than four percent of their budget in an unappropriated fund balance.
Authorizing the Maine-Endwell central school district to establish an
insurance reserve fund will allow them to manage year-to-year variabil-
ity in claims.
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation will have no fiscal implications for State or Local
This act shall take effect immediately.
STATE OF NEW YORK
2021-2022 Regular Sessions
March 16, 2021
Introduced by M. of A. LUPARDO -- read once and referred to the Commit-
tee on Education
AN ACT to amend the general municipal law, in relation to permitting the
Maine-Endwell central school district to establish an insurance
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 amended by chapter 246 of the laws of 2020, is
3 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 Maine-Endwell central school district and the Binghamton city school
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 6380 2
1 district may establish insurance reserve funds in compliance with this
2 section and article seventy-four of the education law and such school
3 districts may make expenditures in compliance with this section and
4 article seventy-four of the education law from such reserve fund for any
5 loss, claim, action or judgment for which the school districts are
6 authorized or required to purchase or maintain insurance for the kinds
7 of risks for which insurance is authorized pursuant to paragraph three
8 of subsection (a) of section one thousand one hundred thirteen of the
9 insurance law.
10 § 2. This act shall take effect immediately.