Bill Text: NY A02854 | 2023-2024 | General Assembly | Introduced

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Bill Title: Creates other post-employment benefit reserve funds; defines terms.

Spectrum: Slight Partisan Bill (Democrat 11-6)

Status: (Introduced) 2024-07-15 - enacting clause stricken [A02854 Detail]

Download: New_York-2023-A02854-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2854

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 27, 2023
                                       ___________

        Introduced  by  M. of A. ZEBROWSKI, DICKENS, STIRPE, SAYEGH, COOK, CRUZ,
          SEAWRIGHT, LUPARDO, BUTTENSCHON, DeSTEFANO, NORRIS, McDONOUGH,  BRABE-
          NEC,  MILLER  --  Multi-Sponsored by -- M. of A. HAWLEY, SIMON -- read
          once and referred to the Committee on Education

        AN ACT to amend the general municipal law  and  the  education  law,  in
          relation  to the creation and funding of other post-employment benefit
          reserve funds; and to repeal certain provisions of the general munici-
          pal law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  general  municipal  law  is  amended by adding a new
     2  section 6-w to read as follows:
     3    § 6-w. Other post-employment benefit reserve funds. 1. As used in this
     4  section:
     5    (a) "Municipal corporation" means a school district (except  a  school
     6  district in a city with a population of one hundred twenty-five thousand
     7  or more) or a board of cooperative educational services.
     8    (b)  "Other  post-employment  benefit"  means any benefit other than a
     9  pension benefit that a municipal corporation is obligated  by  contract,
    10  local  law,  or  statute  to  pay  to, or on behalf of, an individual on
    11  account of that individual's prior employment by  the  municipal  corpo-
    12  ration, including post-employment healthcare benefits, regardless of the
    13  type of plan that provides them, but excluding termination benefits such
    14  as those described in section six-p of this article.
    15    (c) "Participating employer" means a participating employer as defined
    16  in  subdivision twenty of section two of the retirement and social secu-
    17  rity law or in subdivision twenty of section three hundred two  of  such
    18  law.
    19    2.  The  governing  board of any municipal corporation which is also a
    20  participating employer may establish by resolution a  reserve  fund  for
    21  the purpose of financing other post-employment benefits.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06887-01-3
        A. 2854                             2

     1    3.  There  may  be  paid  into another post-employment benefit reserve
     2  fund:
     3    (a)  Such  amounts  as may be provided therefor by budgetary appropri-
     4  ation or raised by tax therefor;
     5    (b) Such revenues as are not required by law to be paid into any other
     6  fund or account;
     7    (c) Such other funds as may be legally appropriated; and
     8    (d) Notwithstanding any law to the contrary, such amounts  as  may  be
     9  transferred  from  a reserve fund established pursuant to section six-c,
    10  six-d, six-e, six-f, six-g, six-m,  six-n,  or  six-p  of  this  article
    11  comprised  of  moneys raised from the same tax base as the moneys in the
    12  other post-employment benefit reserve fund, or  a  reserve  fund  estab-
    13  lished pursuant to section thirty-six hundred fifty-one of the education
    14  law,  provided,  that any such transfer shall only be made by resolution
    15  of the governing board of such municipal  corporation  adopted  after  a
    16  public  hearing  held on at least fifteen days prior published notice in
    17  the official newspaper of the municipal corporation  or, if the  munici-
    18  pal  corporation  does  not  have an official newspaper, in at least one
    19  newspaper having general circulation in the municipal corporation.
    20    4. The moneys in another post-employment benefit reserve fund shall be
    21  deposited and secured in the manner provided  by  section  ten  of  this
    22  article, the governing board of such municipal corporation, or the chief
    23  fiscal  officer  thereof if the governing board shall delegate such duty
    24  to him or her, may invest the moneys in such fund in the manner provided
    25  by section eleven of this article, any interest earned or  capital  gain
    26  realized  on  the  money  so  deposited  or invested shall accrue to and
    27  become part of such fund.
    28    5. The governing board of such municipal corporation by resolution may
    29  authorize expenditures from another post-employment benefit reserve fund
    30  except as otherwise provided by law, moneys in  another  post-employment
    31  benefit  reserve fund may only be expended to finance other post-employ-
    32  ment benefits.
    33    6. The governing board of such municipal corporation by resolution may
    34  authorize the transfer of a portion of the moneys  in  another  post-em-
    35  ployment  benefit reserve fund to a reserve fund of the municipal corpo-
    36  ration established pursuant  to  section  six-c,  six-d,  six-e,  six-f,
    37  six-g, six-m, six-n, or six-p of this article comprised of moneys raised
    38  from  the  same  tax  base  as the moneys in the retirement contribution
    39  reserve funds, or a reserve fund established pursuant to  section  thir-
    40  ty-six  hundred  fifty-one of the education law, provided, that any such
    41  transfer shall only be made by resolution of the governing board of such
    42  municipal corporation adopted after a public hearing held  on  at  least
    43  fifteen  days  prior  published  notice in the official newspaper of the
    44  municipal corporation or, if the municipal corporation does not have  an
    45  official newspaper, in at least one newspaper having general circulation
    46  in the municipal corporation.
    47    7.  The  chief  fiscal  officer  of  such  municipal corporation shall
    48  account for another post-employment benefit reserve  fund  separate  and
    49  apart  from all other funds of the municipal corporation such accounting
    50  shall show: the source, date and amount of each sum paid into the  fund;
    51  the interest earned by such fund; capital gains or losses resulting from
    52  the  sale  of investments of this fund; the order, purpose thereof, date
    53  and amount of each payment from such fund; the assets of the fund, indi-
    54  cating cash balance and a schedule of investments.
        A. 2854                             3

     1    The chief fiscal officer, within sixty days of the end of each  fiscal
     2  year,  shall furnish a detailed report of the operation and condition of
     3  this fund to the governing board.
     4    8.  No  member  of  the  governing board of such municipal corporation
     5  shall:
     6    (a)  Authorize  a  withdrawal  from  another  post-employment  benefit
     7  reserve fund for any purpose except as provided in this section; or
     8    (b) Expend any money withdrawn from such fund for a purpose other than
     9  as provided in this section.
    10    9. The governing board of such municipal corporation by resolution may
    11  determine that an other post-employment benefit reserve fund is no long-
    12  er  needed  and  terminate  the fund. Such resolution shall transfer any
    13  moneys remaining in such fund to one or more reserve funds of the munic-
    14  ipal corporation established pursuant to section  six-c,  six-d,  six-e,
    15  six-f, six-g, six-m, six-n, or six-p of this article comprised of moneys
    16  raised from the same tax base as the moneys in the other post-employment
    17  benefit  reserve fund, or one or more reserve funds established pursuant
    18  to section thirty-six hundred fifty-one of the education law.
    19    § 2. Notwithstanding any other provision of law, within  180  days  of
    20  the  effective  date  of this act, a municipal corporation may by resol-
    21  ution  transfer  into  another  post-employment  benefits  reserve  fund
    22  created  in accordance with section 6-w of the general municipal law any
    23  funds previously committed or assigned by that municipal corporation for
    24  the purpose of paying  other  post-employment  benefits  as  defined  in
    25  section  6-w of the general municipal law, regardless of how those funds
    26  have been designated.
    27    § 3. Subdivisions 10 and 11 of section 6-p of  the  general  municipal
    28  law are REPEALED.
    29    §  4.  Paragraph  b  of subdivision 5 of section 1950 of the education
    30  law, as amended by chapter 130 of the laws of 2022, is amended  to  read
    31  as follows:
    32    b.  The  cost of services herein referred to shall be the amount allo-
    33  cated to each component school district  by  the  board  of  cooperative
    34  educational  services  to  defray  expenses  of  such  board,  including
    35  approved expenses from the testing of potable water systems of  occupied
    36  school  buildings under the board's jurisdiction as required pursuant to
    37  section eleven hundred ten of the public health law provided  that  such
    38  expenses  for testing of potable water systems are not reimbursable from
    39  another state or federal source, except that that  part  of  the  salary
    40  paid  any  teacher, supervisor or other employee of the board of cooper-
    41  ative educational services which is in excess of thirty thousand dollars
    42  shall not be such an approved expense, and except also that  administra-
    43  tive  and  clerical  expenses  shall not exceed ten percent of the total
    44  expenses for purposes of  this  computation.  Any  gifts,  donations  or
    45  interest  earned  by the board of cooperative educational services or on
    46  behalf of the board of cooperative educational services by the dormitory
    47  authority or any other source shall not be deducted in  determining  the
    48  cost  of  services  allocated  to  each  component school district. [Any
    49  payments made to a component school district by the board of cooperative
    50  educational services pursuant to subdivision eleven of section six-p  of
    51  the  general  municipal  law attributable to an approved cost of service
    52  computed pursuant to this subdivision shall be deducted from the cost of
    53  services allocated to such component school district.]  The  expense  of
    54  transportation provided by the board of cooperative educational services
    55  pursuant  to  paragraph  q  of subdivision four of this section shall be
    56  eligible for aid apportioned pursuant to subdivision  seven  of  section
        A. 2854                             4

     1  thirty-six  hundred  two  of  this  chapter  and no board of cooperative
     2  educational services transportation expense shall be an approved cost of
     3  services for the computation of aid under this subdivision.  Transporta-
     4  tion expense pursuant to paragraph q of subdivision four of this section
     5  shall  be  included  in the computation of the ten percent limitation on
     6  administrative and clerical expenses.
     7    § 5. This act shall take effect immediately.