Bill Text: NY A10400 | 2009-2010 | General Assembly | Introduced
Bill Title: Enacts the Suffolk county insurance consortium act which enables the county of Suffolk to enter into cooperative agreements with school districts, towns, and villages located within such county to pay for the provision of health care services to their employees, without being subject to the provisions of article 47 of the insurance law; further permits the county of Suffolk to charge an administrative fee for such participation in such cooperative agreement.
Spectrum: Moderate Partisan Bill (Republican 8-2)
Status: (Introduced - Dead) 2010-05-18 - held for consideration in insurance [A10400 Detail]
Download: New_York-2009-A10400-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 10400 I N A S S E M B L Y March 23, 2010 ___________ Introduced by M. of A. MURRAY, RAIA, MONTESANO, FITZPATRICK, GORDON, FINCH -- Multi-Sponsored by -- M. of A. CALHOUN, CONTE, SALADINO, THIELE -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to enacting the Suffolk county insurance consortium act which enables the county of Suffolk to enter into cooperative agreements with school districts, towns, and villages located within such county to pay for the provision of health care services to their employees THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act shall be known and may be cited as the "Suffolk 2 county insurance consortium act". 3 S 2. Subsection (a) of section 4703 of the insurance law, as added by 4 chapter 689 of the laws of 1994, is amended to read as follows: 5 (a) No municipal corporation shall establish, maintain or otherwise 6 participate in a municipal cooperative health benefit plan in this state 7 which provides benefits, in whole or part, on a shared-funding basis, 8 unless the municipal cooperative health benefit plan: 9 (1) obtains and maintains a certificate of authority from the super- 10 intendent pursuant to the provisions of this article; or 11 (2) is an employee welfare fund, as defined in article forty-four of 12 this chapter that is administered by equal representation of employees 13 and employers; or 14 (3) is exempt from the requirement of obtaining a license; or 15 (4) is, and continues to be, a fully-insured municipal cooperative 16 health benefit plan; OR 17 (5) IS ESTABLISHED BY SUFFOLK COUNTY, IN WHICH CASE NO APPLICATION FOR 18 OR RECEIPT OF A CERTIFICATE OF AUTHORITY PURSUANT TO THIS SECTION SHALL 19 BE REQUIRED. 20 S 3. The opening paragraphs of subsections (a), (b), (c), (d), (e) and 21 (f) of section 4705 of the insurance law, as added by chapter 689 of the 22 laws of 1994, are amended to read as follows: 23 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 24 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04653-01-9 A. 10400 2 1 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 2 ARTICLE, THE municipal cooperation agreement, under which the municipal 3 cooperative health benefit plan is established and maintained, and any 4 amendment thereto, shall be approved by each participating municipal 5 corporation by majority vote of each such corporation's governing body, 6 and shall: 7 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 8 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF 9 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 10 ARTICLE, THE municipal cooperation agreement shall provide that the 11 plan's chief fiscal officer: 12 [A] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 13 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF 14 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 15 ARTICLE, A municipal cooperation agreement shall include a provision: 16 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 17 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF 18 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 19 ARTICLE, THE municipal cooperation agreement shall provide that the 20 governing board: 21 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 22 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF 23 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 24 ARTICLE, THE municipal cooperation agreement shall provide for the 25 following to be prepared and furnished to the governing board, to 26 participating municipal corporations, to unions which are the exclusive 27 bargaining representatives of employees covered by the plan and to the 28 superintendent: 29 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATION AGREEMENT FOR A 30 MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF 31 SUFFOLK PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS 32 ARTICLE, THE municipal cooperation agreement shall specify the rights 33 and obligations of a municipal corporation withdrawing from a municipal 34 cooperative health benefit plan to any contribution (or premium equiv- 35 alent) refund or reserve fund or for any contingent assessment liability 36 or other obligation. 37 S 4. The insurance law is amended by adding a new section 4705-a to 38 read as follows: 39 S 4705-A. MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE 40 COUNTY OF SUFFOLK. SUFFOLK COUNTY HEREBY HAS THE AUTHORITY TO ENTER A 41 MUNICIPAL COOPERATION AGREEMENT FOR THE ESTABLISHMENT OF A MUNICIPAL 42 COOPERATIVE HEALTH BENEFIT PLAN UPON SUCH TERMS AND CONDITIONS AS DETER- 43 MINED AND AGREED TO BY THE COUNTY OF SUFFOLK AND PARTICIPATING MUNICIPAL 44 CORPORATIONS. SUCH AGREEMENT MAY, AT THE OPTION OF THE COUNTY OF 45 SUFFOLK, REQUIRE THAT EACH PARTICIPATING MUNICIPAL CORPORATION, OTHER 46 THAN SUCH COUNTY, PAY AN ADMINISTRATIVE FEE TO THE COUNTY OF SUFFOLK FOR 47 PARTICIPATION IN SUCH PLAN. NOTHING IN SUCH ADMINISTRATIVE FEE REQUIRE- 48 MENT SHALL CONSTRUE SUFFOLK COUNTY AS DOING AN INSURANCE BUSINESS WITHIN 49 THE MEANING OF SECTIONS ONE THOUSAND ONE HUNDRED ONE AND ONE THOUSAND 50 ONE HUNDRED TWO OF THIS CHAPTER. 51 S 5. Section 4706 of the insurance law is amended by adding a new 52 subsection (h) to read as follows: 53 (H) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A MUNICIPAL 54 COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK 55 PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE. A. 10400 3 1 S 6. Section 4707 of the insurance law is amended by adding a new 2 subsection (d) to read as follows: 3 (D) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A MUNICIPAL 4 COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK 5 PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE. 6 S 7. Section 4708 of the insurance law is amended by adding a new 7 subsection (f) to read as follows: 8 (F) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A MUNICIPAL 9 COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK 10 PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE. 11 S 8. Section 4709 of the insurance law is amended by adding a new 12 subsection (d) to read as follows: 13 (D) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A MUNICIPAL 14 COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK 15 PURSUANT TO SECTION FOUR THOUSAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE. 16 S 9. The opening paragraph of subsection (a) of section 4710 of the 17 insurance law, as added by chapter 689 of the laws of 1994, is amended 18 to read as follows: 19 [The] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT 20 PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK PURSUANT TO SECTION FOUR THOU- 21 SAND SEVEN HUNDRED FIVE-A OF THIS ARTICLE, THE governing board of the 22 municipal cooperative health benefit plan shall: 23 S 10. Section 4711 of the insurance law, as added by chapter 689 of 24 the laws of 1994, is amended to read as follows: 25 S 4711. Examinations. (a) [The] EXCEPT IN THE CASE OF A MUNICIPAL 26 COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK, 27 THE superintendent may examine the affairs of a municipal cooperative 28 health benefit plan as often as deemed necessary, but not less than once 29 in every three years, except that the superintendent may extend the 30 three-year interval to no more than five years upon determining that the 31 three-year requirement is not necessary to safeguard the interests of 32 the public or covered persons. 33 (b) [In] EXCEPT IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT 34 PLAN ESTABLISHED BY THE COUNTY OF SUFFOLK, IN connection with such exam- 35 inations, the superintendent may exercise the powers set forth in 36 sections three hundred four, three hundred five, three hundred six, 37 three hundred eight, three hundred ten, three hundred eleven, three 38 hundred twelve, and three hundred thirteen of this chapter, and may also 39 require special reports from a municipal cooperative health benefit plan 40 as specified in section three hundred eight of this chapter. 41 (c) The governing board of every municipal cooperative health benefit 42 plan shall be responsible for the maintenance of accurate records and 43 books of account in regard to the plan. 44 (D) IN THE CASE OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTAB- 45 LISHED BY THE COUNTY OF SUFFOLK, THE SUPERINTENDENT SHALL NOT BE ENTI- 46 TLED TO EXAMINATION OF SUCH BENEFIT PLAN NOR MAY THE SUPERINTENDENT 47 EXERCISE THE POWERS SET FORTH IN SECTIONS THREE HUNDRED FOUR, THREE 48 HUNDRED FIVE, THREE HUNDRED SIX, THREE HUNDRED EIGHT, THREE HUNDRED TEN, 49 THREE HUNDRED ELEVEN, THREE HUNDRED TWELVE, AND THREE HUNDRED THIRTEEN 50 OF THIS CHAPTER, AND MAY ALSO NOT REQUIRE SPECIAL REPORTS FROM A MUNICI- 51 PAL COOPERATIVE HEALTH BENEFIT PLAN AS SPECIFIED IN SECTION THREE 52 HUNDRED EIGHT OF THIS CHAPTER IN REGARD TO SUCH PLAN. 53 S 11. Section 4713 of the insurance law is amended by adding a new 54 subsection (d) to read as follows: A. 10400 4 1 (D) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE DISSOLUTION 2 OF A MUNICIPAL COOPERATIVE HEALTH BENEFIT PLAN ESTABLISHED BY THE COUNTY 3 OF SUFFOLK. 4 S 12. This act shall take effect on the one hundred twentieth day 5 after it shall have become a law.