S T A T E   O F   N E W   Y O R K
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                                  7505

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 13, 2015
                               ___________

Introduced  by  M.  of A. SIMON, TITUS -- (at request of the State Comp-
  troller) -- read once and referred 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
that fund FOR SUCH INSURANCE FOR THAT YEAR. [In no case shall the amount

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

A. 7505                             2

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.