S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3916

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2015
                               ___________

Introduced by M. of A. TENNEY, BLANKENBUSH, MONTESANO, GOODELL, LALOR --
  Multi-Sponsored  by  --  M.  of A. McLAUGHLIN, OAKS, PALMESANO -- read
  once and referred to the Committee on Local Governments

AN ACT to amend the general municipal law, in relation to  the  creation
  and  funding  of  other  post-employment  benefit  reserve  funds, and
  extending to boards of cooperative educational services the  authority
  to create and maintain workers' compensation reserve funds

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 6 to read as follows:
  S  6.  OTHER POST-EMPLOYMENT BENEFIT RESERVE FUNDS. 1. AS USED IN THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  A. "MUNICIPAL  CORPORATION"  MEANS  (I)  A  MUNICIPAL  CORPORATION  AS
DEFINED IN SECTION TWO OF THIS CHAPTER; (II) A SCHOOL DISTRICT (EXCEPT A
SCHOOL  DISTRICT  IN A CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE
THOUSAND OR MORE); (III) A BOARD OF  COOPERATIVE  EDUCATIONAL  SERVICES;
(IV)  FIRE DISTRICT; (V) DISTRICT CORPORATION; (VI) POLICE DISTRICT; AND
(VII) SPECIAL IMPROVEMENT DISTRICT  GOVERNED  BY  A  SEPARATE  BOARD  OF
COMMISSIONERS.
  B.  "OTHER  POST-EMPLOYMENT  BENEFIT"  MEANS  ANY BENEFIT OTHER THAN A
PENSION BENEFIT THAT A MUNICIPAL CORPORATION IS OBLIGATED  BY  CONTRACT,
LOCAL  LAW,  OR  STATUTE  TO  PAY  TO, OR ON BEHALF OF, AN INDIVIDUAL ON
ACCOUNT OF THAT INDIVIDUAL'S PRIOR EMPLOYMENT BY  THE  MUNICIPAL  CORPO-
RATION, INCLUDING POST-EMPLOYMENT HEALTHCARE BENEFITS, REGARDLESS OF THE
TYPE OF PLAN THAT PROVIDES THEM, BUT EXCLUDING TERMINATION BENEFITS SUCH
AS THOSE DESCRIBED IN SECTION SIX-P OF THIS ARTICLE.
  C.  "PARTICIPATING EMPLOYER" MEANS A PARTICIPATING EMPLOYER AS DEFINED
IN EITHER SUBDIVISION TWENTY OF SECTION TWO OR IN SUBDIVISION TWENTY  OF
SECTION THREE HUNDRED TWO OF THE RETIREMENT AND SOCIAL SECURITY LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07496-01-5

              

A. 3916                             2

  2.  THE  GOVERNING  BOARD OF ANY MUNICIPAL CORPORATION WHICH IS ALSO A
PARTICIPATING EMPLOYER MAY ESTABLISH BY RESOLUTION A  RESERVE  FUND  FOR
THE PURPOSE OF FINANCING OTHER POST-EMPLOYMENT BENEFITS.
  3.  THERE  MAY  BE  PAID INTO AN OTHER POST-EMPLOYMENT BENEFIT RESERVE
FUND:
  A. SUCH AMOUNTS AS MAY BE PROVIDED THEREFOR BY BUDGETARY APPROPRIATION
OR RAISED BY TAX THEREFOR;
  B. SUCH REVENUES AS ARE NOT REQUIRED BY LAW TO BE PAID INTO ANY  OTHER
FUND OR ACCOUNT;
  C. SUCH OTHER FUNDS AS MAY BE LEGALLY APPROPRIATED; AND
  D.  NOTWITHSTANDING  ANY  LAW  TO THE CONTRARY, SUCH AMOUNTS AS MAY BE
TRANSFERRED FROM A RESERVE FUND ESTABLISHED PURSUANT TO  SECTION  SIX-C,
SIX-D,  SIX-E, SIX-F, SIX-G, SIX-J, SIX-M, SIX-N, OR SIX-P OF THIS ARTI-
CLE COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE  MONEYS  IN
THE OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND, OR A RESERVE FUND ESTAB-
LISHED PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION
LAW,  PROVIDED,  THAT ANY SUCH TRANSFER SHALL ONLY BE MADE BY RESOLUTION
OF THE GOVERNING BOARD OF SUCH MUNICIPAL  CORPORATION  ADOPTED  AFTER  A
PUBLIC  HEARING  HELD ON AT LEAST FIFTEEN DAYS PRIOR PUBLISHED NOTICE IN
THE OFFICIAL NEWSPAPER OF THE MUNICIPAL CORPORATION OR, IF THE MUNICIPAL
CORPORATION DOES NOT HAVE AN OFFICIAL NEWSPAPER, IN AT LEAST ONE NEWSPA-
PER HAVING GENERAL CIRCULATION IN THE MUNICIPAL CORPORATION AREA.
  4. THE MONEYS IN AN OTHER POST-EMPLOYMENT BENEFIT RESERVE  FUND  SHALL
BE  DEPOSITED  AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS
ARTICLE. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION, OR THE CHIEF
FISCAL OFFICER THEREOF IF THE GOVERNING BOARD SHALL DELEGATE  SUCH  DUTY
TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED
BY  SECTION  ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN
REALIZED ON THE MONEY SO DEPOSITED  OR  INVESTED  SHALL  ACCRUE  TO  AND
BECOME PART OF SUCH FUND.
  5. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
AUTHORIZE  EXPENDITURES  FROM  AN  OTHER POST-EMPLOYMENT BENEFIT RESERVE
FUND. EXCEPT AS OTHERWISE PROVIDED BY LAW, MONEYS IN AN  OTHER  POST-EM-
PLOYMENT  BENEFIT  RESERVE  FUND  MAY  ONLY BE EXPENDED TO FINANCE OTHER
POST-EMPLOYMENT BENEFITS.
  6. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
AUTHORIZE THE TRANSFER OF A PORTION OF THE MONEYS IN AN  OTHER  POST-EM-
PLOYMENT  BENEFIT RESERVE FUND TO A RESERVE FUND OF THE MUNICIPAL CORPO-
RATION ESTABLISHED PURSUANT  TO  SECTION  SIX-C,  SIX-D,  SIX-E,  SIX-F,
SIX-G, SIX-J, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS
RAISED  FROM  THE SAME TAX BASE AS THE MONEYS IN THE RETIREMENT CONTRIB-
UTION RESERVE FUND, OR A RESERVE FUND ESTABLISHED  PURSUANT  TO  SECTION
THIRTY-SIX  HUNDRED  FIFTY-ONE  OF THE EDUCATION LAW, PROVIDED, THAT ANY
SUCH TRANSFER SHALL ONLY BE MADE BY RESOLUTION OF THE GOVERNING BOARD OF
SUCH MUNICIPAL CORPORATION ADOPTED AFTER A PUBLIC  HEARING  HELD  ON  AT
LEAST  FIFTEEN  DAYS PRIOR PUBLISHED NOTICE IN THE OFFICIAL NEWSPAPER OF
THE MUNICIPAL CORPORATION OR, IF THE MUNICIPAL CORPORATION DOES NOT HAVE
AN OFFICIAL NEWSPAPER, IN AT LEAST ONE NEWSPAPER HAVING  GENERAL  CIRCU-
LATION IN THE MUNICIPAL CORPORATION AREA.
  7.  THE  CHIEF  FISCAL  OFFICER  OF  SUCH  MUNICIPAL CORPORATION SHALL
ACCOUNT FOR AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND  SEPARATE  AND
APART FROM ALL OTHER FUNDS OF THE MUNICIPAL CORPORATION. SUCH ACCOUNTING
SHALL  SHOW: THE SOURCE, DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND;
THE INTEREST EARNED BY SUCH FUND; CAPITAL GAINS OR LOSSES RESULTING FROM
THE SALE OF INVESTMENTS OF THIS FUND; THE ORDER, PURPOSE  THEREOF,  DATE
AND AMOUNT OF EACH PAYMENT FROM THIS FUND; THE ASSETS OF THE FUND, INDI-

A. 3916                             3

CATING  CASH  BALANCE  AND  A  SCHEDULE OF INVESTMENTS. THE CHIEF FISCAL
OFFICER, WITHIN SIXTY DAYS OF THE END OF EACH FISCAL YEAR, SHALL FURNISH
A DETAILED REPORT OF THE OPERATION AND CONDITION OF  THIS  FUND  TO  THE
GOVERNING BOARD.
  8.  NO  MEMBER  OF  THE  GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION
SHALL:
  A. AUTHORIZE  A  WITHDRAWAL  FROM  AN  OTHER  POST-EMPLOYMENT  BENEFIT
RESERVE FUND FOR ANY PURPOSE EXCEPT AS PROVIDED IN THIS SECTION; OR
  B.  EXPEND ANY MONEY WITHDRAWN FROM SUCH FUND FOR A PURPOSE OTHER THAN
AS PROVIDED IN THIS SECTION.
  ANY MEMBER OF THE GOVERNING BOARD WHO VIOLATES THE PROVISIONS OF  THIS
SUBDIVISION SHALL BE GUILTY OF A MISDEMEANOR.
  9. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY
DETERMINE THAT AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND IS NO LONG-
ER  NEEDED  AND  TERMINATE  THE FUND. SUCH RESOLUTION SHALL TRANSFER ANY
MONEYS REMAINING IN SUCH FUND TO ONE OR MORE RESERVE FUNDS OF THE MUNIC-
IPAL CORPORATION ESTABLISHED PURSUANT TO SECTION  SIX-C,  SIX-D,  SIX-E,
SIX-F, SIX-G, SIX-J, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF
MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE OTHER POST-EM-
PLOYMENT  BENEFIT RESERVE FUND, OR ONE OR MORE RESERVE FUNDS ESTABLISHED
PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW.
  S 2. Section 6-j of the general municipal law, as amended  by  chapter
704  of the laws of 1956, subdivisions 1, 2, 4 and 6 as amended by chap-
ter 340 of the laws of 1973, subdivision 3 as amended by chapter 140  of
the laws of 1996, and subdivision 5 as added and subdivision 6 as renum-
bered by chapter 433 of the laws of 1987, is amended to read as follows:
  S  6-j. [Workmen's] WORKERS' compensation reserve fund. 1. The govern-
ing board of any municipal corporation, school district, BOARD OF  COOP-
ERATIVE EDUCATIONAL SERVICES, or fire district, which is, or shall here-
after  become  a  self-insurer  under  the  provisions of section fifty,
subdivision four of the [workmen's] WORKERS' compensation law or section
thirty of the volunteer firemen's benefit law may  establish  a  reserve
fund  to  be known as the [workmen's] WORKERS' compensation reserve fund
of such municipal corporation, school  district,  BOARD  OF  COOPERATIVE
EDUCATIONAL SERVICES, or fire district.
  2.  There  may  be  paid into any such fund (a) such amounts as may be
provided therefor by budgetary appropriations and (b) such other sums as
may be legally appropriated.
  3. The moneys in such fund shall  be  deposited  and  secured  in  the
manner  provided by section ten of this article.  The money in such fund
so deposited shall be accounted for separate and apart  from  all  other
funds  of the municipality, school district, BOARD OF COOPERATIVE EDUCA-
TIONAL SERVICES, or fire district, in the same  manner  as  provided  in
subdivision  ten of section six-c of this article.  The governing board,
or the chief fiscal officer of such municipality, school district, BOARD
OF COOPERATIVE EDUCATIONAL SERVICES, or fire district, if the  governing
board  shall  delegate  such  duty to him, may invest the moneys in such
fund in the manner provided in  section  eleven  of  this  article.  Any
interest  earned  or  capital gain realized on the money so deposited or
invested shall accrue to and become part  of  such  fund.  The  separate
identity  of such fund shall be maintained whether its assets consist of
cash or investments or both.
  4. An expenditure shall be made from such fund only for the payment of
compensation and benefits, medical, hospital or other expense authorized
by article two of the [workmen's] WORKERS' compensation law and  by  the
volunteer  firemen's benefit law and expenses of administering the self-

A. 3916                             4

insurance program for such municipal corporation, school district, BOARD
OF COOPERATIVE EDUCATIONAL SERVICES, or fire district.
  5.  If  at  the  end  of any fiscal year the moneys in such fund shall
exceed the amounts required to be paid pursuant to subdivision  four  of
this  section  plus  any  additional  amount required to pay all pending
claims,  the  governing  board  of  the  municipal  corporation,  school
district,  board  of  cooperative  educational services or fire district
may, within sixty days of the close of such fiscal year, elect  to:  (a)
transfer  said  excess,  or  any part thereof, to any fund authorized by
this article or section thirty-six hundred fifty-one  of  the  education
law;  and/or  (b)  apply  said excess, or any part thereof to the budget
appropriation of the next succeeding fiscal year.
  6. If the municipal corporation, school district, BOARD OF COOPERATIVE
EDUCATIONAL SERVICES, or fire district shall, after the establishment of
such fund, cease to be a self-insurer, the moneys remaining in such fund
may be transferred to any other  fund  authorized  by  this  chapter  or
section  thirty-six  hundred  fifty-one of the education law only to the
extent that the moneys in such fund  shall  exceed  in  amount  the  sum
sufficient  to  pay  all  expenditures  authorized in paragraph numbered
four, both accrued and contingent.
  S 3. Notwithstanding any other provision of law,  within  one  hundred
eighty  days  of the effective date of this act, a municipal corporation
may by  resolution  transfer  into  an  other  post-employment  benefits
reserve fund created in accordance with section 6 of the general munici-
pal law any funds previously set aside by that municipal corporation and
identified  in the audited financial statements of that municipal corpo-
ration for the purpose  of  paying  other  post-employment  benefits  as
defined  in  section  6  of the general municipal law, regardless of how
those funds have been designated.
  S 4. This act shall take effect immediately.