S T A T E   O F   N E W   Y O R K
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                                  5880

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 10, 2015
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the  workers'  compensation  law,  in  relation  to  the
  investment of surplus funds of the state insurance fund

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

  Section 1. Subdivision 2 of section 87 of  the  workers'  compensation
law,  as  added  by  section  20 of part GG of chapter 57 of the laws of
2013, is amended to read as follows:
  2. Any of the surplus funds belonging to the state insurance fund,  by
order  of the commissioners, approved by the superintendent of financial
services, may be invested (1) in the types of  securities  described  in
subdivisions one, two, three, four, five, six, eleven, twelve, twelve-a,
thirteen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a,
twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five
of  section  two  hundred  thirty-five of the banking law, OR (2) IN THE
TYPES OF OBLIGATIONS DESCRIBED IN PARAGRAPH TWO  OF  SUBSECTION  (A)  OF
SECTION  ONE THOUSAND FOUR HUNDRED FOUR OF THE INSURANCE LAW EXCEPT THAT
UP TO TWENTY-FIVE PERCENT OF SURPLUS FUNDS  MAY  BE  INVESTED  IN  OBLI-
GATIONS  RATED  INVESTMENT  GRADE  BY A NATIONALLY RECOGNIZED SECURITIES
RATING ORGANIZATION, or[,] (3) up to fifty percent of surplus funds,  in
the  types  of  securities or investments described in paragraphs [two,]
three, eight and ten of subsection (a)  of  section  one  thousand  four
hundred  four  of  the  insurance law, except that [up to ten percent of
surplus funds may be invested] SUCH INVESTMENTS in [the] EQUITY  securi-
ties  of  any  solvent  American institution [as described in such para-
graphs] MAY BE MADE irrespective of the  rating  of  such  institution's
obligations  or  other similar qualitative standards [described therein,
and] APPLICABLE UNDER SUCH PARAGRAPHS, OR  (4)  UP  TO  TEN  PERCENT  OF
SURPLUS  FUNDS,  IN  THE TYPES OF SECURITIES OR INVESTMENTS DESCRIBED IN
PARAGRAPHS TWO, THREE AND TEN OF SUBSECTION (A) OF SECTION ONE  THOUSAND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11531-02-5
              

S. 5880                             2

FOUR  HUNDRED  FOUR  OF  THE INSURANCE LAW IRRESPECTIVE OF THE RATING OF
SUCH INSTITUTION'S OBLIGATIONS OR OTHER SIMILAR  QUALITATIVE  STANDARDS,
OR  (5) up to fifteen percent of surplus funds, in securities or invest-
ments  which  do not otherwise qualify for investment under this section
as shall be made with the care, prudence and diligence under the circum-
stances then prevailing that a prudent person acting in a like  capacity
and familiar with such matters would use in the conduct of an enterprise
of  a like character and with like aims as provided for the state insur-
ance fund under this article, but shall not include any  direct  deriva-
tive  instrument  or derivative transaction except for hedging purposes.
Notwithstanding any other provision in this subdivision,  the  aggregate
amount  that the state insurance fund may invest in the types of securi-
ties or investments described in paragraphs  three,  eight  and  ten  of
subsection  (a)  of section one thousand four hundred four of the insur-
ance law and as a prudent person acting in a like capacity would  invest
as  provided  in this subdivision shall not exceed fifty percent of such
surplus funds.  FOR PURPOSES OF THIS SUBDIVISION, ANY FUNDS APPROPRIATED
PURSUANT TO THE PROVISIONS OF SUBDIVISION ONE OR TWO OF SECTION  EIGHTY-
SEVEN-F OF THIS ARTICLE SHALL NOT BE CONSIDERED SURPLUS FUNDS.
  S 2. This act shall take effect immediately.