S T A T E   O F   N E W   Y O R K
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                                  4925

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 23, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- (at request of the State Comptroller) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Labor

AN  ACT to amend the workers' compensation law, in relation to eliminat-
  ing certain unconstitutional language relating  to  the  pre-audit  of
  expenditures from the state insurance fund by the state comptroller

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

  Section 1. Section 88 of the workers' compensation law, as amended  by
chapter 6 of the laws of 2007, is amended to read as follows:
  S 88. Administration expenses. The entire expense of administering the
state  insurance  fund shall be paid out of such fund WHICH SHALL NOT BE
CONSIDERED AN AGENCY OR A FUND OF THE STATE FOR THE PURPOSES OF  SECTION
FOUR  OF THE STATE FINANCE LAW.  The portion of such expenses applicable
and chargeable to the disability benefits  fund  [and  the  medical  and
hospital  malpractice  fund]  shall  be determined on an equitable basis
with due allowance for the division of overhead expenses. Not later than
the first day of November there shall be submitted to  the  director  of
the  budget for his approval an estimated budget of expenditures for the
succeeding calendar year having due regard to the business interests and
contract obligations of the fund.   There may not be  expended  for  the
state  insurance  fund  for  purposes  of  administration  more than the
amounts specified in such budget for each item of expenditure, except as
authorized by the director of the budget.  THERE SHALL BE  SUBMITTED  TO
THE  DIRECTOR OF THE BUDGET QUARTERLY FINANCIAL STATEMENTS ON A CALENDAR
YEAR BASIS. In no case shall the amount of  ADMINISTRATIVE  expenditures
so  authorized  for  an entire year [for] FROM THE workers' compensation
[insurance] FUND exceed twenty-five per centum of  the  earned  premiums
for  such insurance for that year. In no case shall the amount of ADMIN-
ISTRATIVE expenditures authorized for the disability benefits  fund  for
an  entire  year exceed twenty-five per centum of the premiums earned by

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03006-01-5
              

S. 4925                             2

that fund FOR SUCH INSURANCE FOR THAT YEAR. [In no case shall the amount
of expenditures authorized for the medical and hospital malpractice fund
for an entire year exceed twenty-five per centum of the premiums  earned
by that fund.] If there be officers or employees of the department whose
duties relate partly to the general work of the department and partly to
the work of the state insurance fund, and in case there is other expense
which  is  incurred jointly on behalf of the general work of the depart-
ment and the state insurance fund, an  equitable  apportionment  of  the
expense  shall  be  made and the part thereof which is applicable to the
state insurance fund shall be chargeable thereto. The  expenses  of  the
department  of audit and control incurred in connection with the pre-au-
dit of expenditures of the state insurance fund, as required by  section
one  hundred  eleven of the state finance law, shall be a charge against
and be paid out of the moneys of the  state  insurance  fund  and  there
shall  be  included  in  the  annual estimate submitted pursuant to this
section an amount sufficient to pay such expenses for the period covered
by such estimate. Notwithstanding section four of the state finance law,
the state comptroller is  authorized  to  process  or  approve  payments
related  to  business taxes, various workers' compensation board assess-
ments and assessments related to the workers' compensation rating  board
directly from the fund's accounts without explicit appropriation author-
ity. The commissioner of labor shall include in his annual report to the
legislature  a  statement  of  the  commissioners showing the expense of
administering the state fund for the preceding year. All appointments to
positions in the state insurance fund shall be  made  subject  to  civil
service requirements.
  S  2. Section 88 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, is amended to read as follows:
  [S 88. Administration expenses. The entire  expense  of  administering
the  state insurance fund shall be paid out of such fund which shall not
be considered an agency or a fund of  the  state  for  the  purposes  of
section  four  of  the  state  finance law. The portion of such expenses
applicable and chargeable to  the  disability  benefits  fund  shall  be
determined  on an equitable basis with due allowance for the division of
overhead expenses. There shall be submitted to the director of the budg-
et quarterly financial statements on a calendar year basis. In  no  case
shall  the  amount  of  administrative expenditures so authorized for an
entire year from the workers' compensation fund exceed  twenty-five  per
centum  of  the  earned premiums for such insurance for that year. In no
case shall the amount of administrative expenditures authorized for  the
disability  benefits  fund  for  an  entire  year exceed twenty-five per
centum of the premiums earned by that fund for such insurance  for  that
year.  No payment, expenditure or refund out of the state insurance fund
shall be subject to pre-audit by the department of audit and control  as
provided  by  section  one  hundred eleven of the state finance law. All
appointments to positions in the state  insurance  fund  shall  be  made
subject to civil service requirements.]
  S  3.  This  act shall take effect immediately; provided, however that
section one of this act shall be deemed to have been in full  force  and
effect on and after April 1, 1996.