Bill > A06565

This bill authorizes the creation of a statewide municipal reciprocal program agreement specifically for the New York Schools Insurance Reciprocal (NYSIR), a unique insurance organization that allows public school districts and BOCES (Boards of Cooperative Educational Services) to insure each other against property and casualty losses. The legislation enables the agency to issue special "statewide municipal reciprocal program bonds" up to $75 million to help restore the insurance reciprocal's industry required surplus, recognizing that NYSIR was created during a time when property and casualty insurance was either unavailable or unaffordable for public schools. The bill provides legal mechanisms for the agency to enter into these program agreements, allows the agency to pledge and use program premiums to secure bonds, and establishes provisions for how these bonds will be managed, including specific certification and payment processes. Importantly, these bonds and agreements are structured so they do not constitute state or municipal debt, and provide a financial tool to support the essential governmental purpose of ensuring affordable insurance coverage for public schools across New York state.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A6565