Bill > S00922

This bill amends the General Municipal Law to expand the ability of school districts to establish insurance reserve funds. Currently, a specific list of named school districts could create such funds, but this legislation now allows any school district to establish an insurance reserve fund through a collective bargaining agreement. The key innovation is that these funds must be set up in an amount and manner determined by a qualified and independent actuary certified by the American Academy of Actuaries (AAA), who must verify that the fund is reasonable and necessary. These reserve funds can be used to cover losses, claims, actions, or judgments related to specific types of insurance risks, specifically those authorized under paragraph three of section one thousand one hundred thirteen of the insurance law. The bill aims to provide school districts with more financial flexibility in managing potential insurance-related expenses, ensuring that the fund's size and structure are professionally assessed. The legislation will take effect on the first of July following its enactment.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S922