N.Y. WKC Law § 151 — New York Code / Act WKC / Article 8 / Section 151
Assessments for annual expenses
Status: in_force

§ 151. Assessments for annual expenses. 1. The annual expenses\nnecessary for the board to administer the provisions of this chapter,\nthe volunteer ambulance workers' benefit law, the volunteer\nfirefighters' benefit law, the disability benefits law, and the\nworkmen's compensation act for civil defense volunteers shall be borne\nby affected employers securing compensation for their employees pursuant\nto section fifty of this chapter. The board shall collect such annual\nexpenses from affected employers through assessments as provided by the\nprovisions of this section, including for purposes of this subdivision:\n(a) the aggregate assessment amount described in subparagraph four of\nparagraph (h) of subdivision eight of section fifteen of this chapter\nfor the special disability fund in accordance with each financing\nagreement described in such subparagraph, (b) the aggregate assessment\namount described in section fifty-c of this chapter for the self-insurer\noffset fund in accordance with each financing agreement described in\nsuch section, (c) the assessment amount described in subdivision three\nof section twenty-five-a of this chapter for the fund for reopened\ncases, (d) the assessment amount described in section two hundred\nfourteen of this chapter for the special fund for disability benefits\nand (e) a sum sufficient as determined by the chair but no greater than\n0.4% of the total estimated statewide premium to cover the establishment\nand maintenance of dedicated workers' compensation fraud units within\nNew York state district attorneys' offices; provided, that the foregoing\nand any other provision of this chapter to the contrary notwithstanding,\nassessment receipts shall be applied first to fully fund the amount\ndescribed in subparagraph four of paragraph (h) of subdivision eight of\nsection fifteen of this chapter and then to fully fund the amount\ndescribed in section fifty-c of this chapter in accordance with each\nthen applicable financing agreement pursuant to such provisions prior to\napplication to any other purpose other than to pay any actual costs of\ncollecting such assessment that are not otherwise funded. For purposes\nof this section, affected employer means all employers required to\nobtain workers' compensation coverage pursuant to this chapter.\n  2. On the first day of November, two thousand thirteen, and annually\nthereafter, the chair shall establish an assessment rate for all\naffected employers in the state of New York in an amount expected to be\nsufficient to produce assessment receipts at least sufficient to fund\nall estimated annual expenses pursuant to subdivision one of this\nsection except those expenses for which an assessment is authorized for\nself-insurance pursuant to subdivision five of section fifty of this\nchapter. Such rate shall be assessed effective the first of January of\nthe succeeding year and shall be based upon a single methodology\ndetermined by the chair. The chair may also establish an additional\nassessment rate, not to exceed thirty percent of annual premiums, for\nthose affected employers who are in default in the payment of their\ncompensation pursuant to subparagraph (b) of paragraph seven of\nsubdivision three-a of section 50 of this chapter. Such additional\nassessment shall be collected and remitted to the chair consistent with\nsubdivisions four and five of this section. The chair shall make\navailable for public inspection an itemized statement of the estimated\nannual expenses in the office of the board for thirty days immediately\nafter the rate is established.\n  3. The chair and department of audit and control annually as soon as\npracticable after the first of April of each year shall ascertain the\nactual total amount of expenses, including in addition to the direct\ncosts of personal service, the cost of maintenance and operation, the\ncost of retirement contributions made and workers' compensation premiums\npaid by the state for or on account of personnel, rentals for space\noccupied in state owned or state leased buildings, such additional sum\nas may be certified to the chair and the department of audit and control\nas a reasonable compensation for services rendered by the department of\nlaw and expenses incurred by such department, for transfer into the\ntraining and educational program on occupational safety and health fund\ncreated pursuant to chapter eight hundred eighty-six of the laws of\nnineteen hundred eighty-five and section ninety-seven-c of the state\nfinance law, for the New York state occupational health clinics network,\nfor the department of labor occupational safety and health program and\nfor transfer into the uninsured employers' fund pursuant to subdivision\ntwo of section twenty-six-a of this chapter, and all other direct or\nindirect costs, incurred by the board in connection with the\nadministration of this chapter, except those expenses for which an\nassessment is authorized for self-insurance pursuant to subdivision five\nof section fifty of this chapter. Assessments pursuant to subparagraph\nfour of paragraph (h) of subdivision eight of section fifteen of this\nchapter for the special disability fund, pursuant to section fifty-c of\nthis chapter for the self insurer offset fund, pursuant to subdivision\nthree of section twenty-five-a of this chapter for the fund for reopened\ncases, and pursuant to section two hundred fourteen of this chapter for\nthe special fund for disability benefits shall be included in the total\namount of expenses for the purposes of this subdivision. Any overpayment\nof annual assessments resulting from the requirements of this\nsubdivision shall be applied as a credit against the future assessment\nrate provided the fund balance shall not be reduced below five percent\nof the total amount assessed.\n  4. For those affected employers obtaining coverage:\n  (a) by insuring with the state fund pursuant to subdivision one of\nsection fifty of this chapter; or (b) through a policy pursuant to\nsubdivision two of section fifty of this chapter; or (c) through a\ncounty self-insurance plan under article five of this chapter; or (d)\nthrough a group private or public self-insurer pursuant to subdivision\nthree-a of section fifty of this chapter, such assessment amounts shall\nbe collected and remitted to the chair by the carrier or the state\ninsurance fund, or county plan, or group private or public self-insurer,\non behalf of the employer(s) until such time as the board establishes a\ndirect employer payment process. Affected private or public employers\nproviding compensation through self insurance pursuant to subdivision\nthree of section fifty of this chapter shall pay assessment amounts\ndirectly to the chair.\n  5. Insurance carriers as defined in section two of this chapter\nincluding the state insurance fund and self-insurers, shall collect from\naffected employers and periodically remit to the board such assessments\nand shall be responsible for ensuring their employers/policyholders are\ncurrent on their assessments. (a) Failure to ensure policyholders or\nemployers are current on their assessments will result in the insurance\ncarrier; or self-insurer; being liable for such assessments.\n  (b) In the event the employer; insurance carrier; or self-insurer;\nknew or should have known that the employer misreported any data related\nto the assessment process, they may be subject to any applicable\npenalties or sanctions provided by this chapter.\n  6. (a) Effective the first day of January, two thousand fourteen, all\nassessment cycles in progress will be replaced with the assessment rate\ndetermined herein. However, such new assessment rate shall not relieve\nany carrier or self-insurer for outstanding amounts due as of the first\nday of January two thousand fourteen.\n  (b) All assessment amounts collected by insurance carriers, except the\nstate fund, and not yet remitted to the board prior to the first day of\nJanuary, two thousand fourteen must be remitted to the chair no later\nthan the first day of February, two thousand fourteen.\n  (c) Effective immediately, notwithstanding any law to the contrary,\npursuant to the provisions of this chapter, the assessment reserves\nremitted to the chair pursuant to this paragraph shall, at the request\nof the director of the budget, be distributed as follows:\n  (i) As soon as practicable on or after April first, two thousand\nsixteen, the chair of the workers' compensation board shall transfer one\nhundred forty million dollars to the state insurance fund, for partial\npayment and partial satisfaction of the state's obligations to the state\ninsurance fund under workers' compensation law section eighty-eight-c\nfor two thousand sixteen.\n  (ii) Effective immediately, the chair of the workers' compensation\nboard shall authorize the board to expend up to sixty million dollars to\nimplement infrastructure and system upgrades consistent with\nrecommendations of the workers' compensation board redesign and\nreengineering project.\n  (iii) Effective immediately, the chair of the workers' compensation\nboard shall authorize the board to expend up to forty million dollars\nfor: (A) transfer into the training and educational program on\noccupational safety and health fund created pursuant to chapter eight\nhundred eighty-six of the laws of nineteen hundred eighty-five and\nsection ninety-seven-c of the state finance law; (B) the department of\nlabor occupational safety and health program; (C) transfer into the\nuninsured employers' fund pursuant to subdivision two of section\ntwenty-six-a of this chapter in connection with payment of claims made\npursuant to article eight-A of this chapter; (D) a reduction in\nliabilities of the special disability fund pursuant to subdivision eight\nof section fifteen of this chapter and/or the fund for reopened cases\npursuant to section twenty-five-a of this chapter; and/or (E) transfer\nto or payment of up to ten million dollars of such amount on behalf of\nthe superintendent of financial services for costs associated with the\nimplementation of the paid family leave act of article nine of this\nchapter.\n  Any and all funds remaining after accounting for the transfers and\nexpenditures set forth above may, at the discretion of the director of\nthe budget, either remain with the workers' compensation board or be\ntransferred to the general fund for the purpose of reducing budget gaps.\n  Annually, the workers' compensation board will provide to the director\nof the budget, the chair of the senate finance committee, and the chair\nof the assembly ways and means committee, an accounting of such funds\nand all associated income received. Such accounting will continue until\nMarch thirty-first, two thousand twenty.\n  7. Assessments for the expenses of the board including assessments\npursuant to paragraph (h) of subdivision eight of section fifteen of\nthis chapter for the special disability fund and pursuant to subdivision\nthree of section twenty-five-a of this chapter for the fund for reopened\ncases shall not constitute elements of loss.\n  7-a. Notwithstanding any law to the contrary, when there is a default\non the payment of premium, including any assessments payable under\nsubdivision seven of this section, any action by the carrier, including\nthe state insurance fund, to collect any unpaid premium shall include an\naction seeking recovery of such assessments on behalf of the board. The\ncarrier shall remit the amount of any such unpaid assessments collected\neither pursuant to a judgment or by settlement to the board.\n  8. The foregoing and every other prevision of law to the contrary\nnotwithstanding, all moneys received on account of the assessment\nauthorized by this section shall be deposited upon receipt into the\nadministrative clearing account held by the commissioner of taxation and\nfinance and applied, as pledged assessments for purposes of sections\nsixteen hundred eighty-l and sixteen hundred eighty-q of the public\nauthorities law and prior to any other application: first, in accordance\nwith any other provision of any special disability fund financing\nagreement entered into prior to March thirty-first, two thousand\nthirteen, to the extent required to fully fund the then current payment\nand reserve requirements under such financing agreement; and second, in\naccordance with each special disability fund financing agreement and\neach self-insured bond financing agreement, to the extent required to\nfully fund the then current payment and reserve requirements under each\nsuch financing agreement entered into after March thirty-first, two\nthousand thirteen with respect to bonds issued by the dormitory\nauthority pursuant to either section sixteen hundred eighty-l or section\nsixteen hundred eighty-q of the public authorities law, on a pari passu\nbasis without preference or priority among all such other bonds. Such\nmonies shall not be commingled with any other monies in the\ncommissioner's custody prior to the completion of such application and\nshall not be deemed to be part of the state treasury or of any funds\nunder management of the state. This section shall not be deemed to\nauthorize any infringement upon the rights of holders of such bonds\nissued or to be issued under such sections of the public authorities\nlaw. The provisions of this section may be included by the dormitory\nauthority in any contract with the holders of any such bonds. The\noperation of this section and the application of the receipts of the\nassessment authorized by this section shall be subject to the provisions\nof each financing agreement authorized pursuant to subparagraph four of\nparagraph (h) of subdivision eight of section fifteen or to section\nfifty-c of this chapter and this section shall not be deemed to\nauthorize any infringement upon the rights of holders of bonds issued or\nto be issued pursuant to either such provision.\n  9. The provisions of this section shall not apply with respect to\npolicies containing coverage pursuant to paragraph one of subsection (j)\nof section three thousand four hundred twenty of the insurance law\nrelating to every policy providing comprehensive personal liability\ninsurance on a one, two, three or four family owner-occupied dwelling.\n  10. If the assessments collected pursuant to this section are\ninsufficient to meet the obligations financed by the assessments, the\nchair, for a period of three years, may borrow any shortfall from the\nstate insurance fund with any borrowing to be added to the assessments\nunder this section and repaid the following year to the state insurance\nfund with interest at the state insurance fund's then current rate of\nreturn.\n  11. Effective immediately, notwithstanding any law to the contrary,\npursuant to the provisions of this chapter, the assessment reserves held\nby the state insurance fund for the payment of future assessments are no\nlonger required and all funds and investments held by the state\ninsurance fund related to the assessment reserves shall be transferred\nto the chair of the workers' compensation board as soon as practicable.\nThe commissioner of taxation and finance shall be custodian of such\nfunds, which shall not be commingled with other funds of the workers'\ncompensation board, and may invest such funds in the same manner as\nsurplus funds held by the state insurance fund pursuant to subdivision\ntwo of section eighty-seven of this chapter. Disbursements of such funds\nshall be made by such commissioner upon written warrant of the chair of\nthe workers' compensation board or the chair's designee.\n  At the request of the director of the budget, such moneys transferred\nto the chair of the workers' compensation board shall be distributed as\nfollows:\n  (a) As soon as practicable after April first, two thousand thirteen,\nthe chair of the workers' compensation board shall transfer two hundred\nfifty million dollars to the general fund for debt management or fiscal\nuncertainties.\n  (b) As soon as practicable after April first, two thousand fourteen,\nthe chair of the workers' compensation board shall transfer one billion\ndollars to the general fund for the purpose of reducing budget gaps.\n  (c) As soon as practicable after April first, two thousand fifteen,\nthe chair of the workers' compensation board shall transfer two hundred\nfifty million dollars to the general fund for the purpose of reducing\nbudget gaps.\n  (d) As soon as practicable after April first, two thousand sixteen,\nthe chair of the workers' compensation board shall transfer two hundred\nfifty million dollars to the general fund for the purpose of reducing\nbudget gaps.\n  (e) Any and all funds remaining after accounting for the transfers set\nforth above may, at the discretion of the director of the budget, either\nremain with the workers' compensation board or be transferred to the\ngeneral fund for the purpose of reducing budget gaps or to the state\ninsurance fund. The budget director, acting in consultation with the\nchair of the workers' compensation board, shall determine whether any\nmoney returned to the state insurance fund is a loan or a transfer and\nthe terms and conditions therein. Any funds transferred or loaned to the\nstate insurance fund upon the budget director's request may be invested\nin a manner consistent with investment guidelines pursuant to\nsubdivision two of section eighty-seven of the workers' compensation\nlaw.\n  Annually, the state insurance fund and the workers' compensation board\nwill provide to the director of the budget, the chair of the senate\nfinance committee, and the chair of the assembly ways and means\ncommittee, an accounting of such funds and all associated income\nreceived. Such accounting will continue until March thirty-first, two\nthousand seventeen.\n  12. The chair shall promulgate regulations to carry out the provisions\nof this section.\n  13. To effectuate an efficient assessment process and the proper\nmanagement of the workers' compensation system all data in possession of\nthe compensation insurance rating board shall be made available to the\nboard and the department of financial services upon request.\n  14. The chair may conduct periodic audits of any employer,\nself-insurer, insurance carrier and the state insurance fund concerning\nany information or payment required under this section, including any\ninformation relevant to the payment or calculation of any assessments.\nThe employer, self-insurer, insurance carrier and the state insurance\nfund shall provide all necessary documents and information in relation\nto an audit in a manner prescribed by the chair. Upon the determination\nof the chair that an employer, self-insurer, insurance carrier or the\nstate insurance fund has underpaid an assessment as a result of its\ninaccurate reporting, the employer, self-insurer, insurance carrier or\nthe state insurance fund upon notice from the chair, shall pay the full\namount of the underpaid assessment, along with interest at the rate of\nnine per cent per annum on the unpaid assessment due not later than\nthirty days after such notice. An insurance carrier or employer that\nknowingly makes a material misrepresentation of information required for\nthe purpose of effectuating this section shall be guilty of a class E\nfelony.\n  15. Beginning in two thousand twenty-eight, the board shall include in\nits annual report made pursuant to section one hundred fifty-three of\nthis article a summary of the funds distributed for the purpose of\nestablishment and maintenance of dedicated workers' compensation fraud\nunits within New York state district attorneys' offices pursuant to\nparagraph (e) of subdivision one of this section, which shall include\nfor each district attorneys' office:\n  (a) the amount of funds distributed;\n  (b) a description of each resulting conviction, including:\n  (i) the full name of the defendant;\n  (ii) the date of conviction;\n  (iii) a description of the offense;\n  (iv) the amount of money alleged to have been defrauded; and\n  (v) a description of any offenses other than workers' compensation\nfraud for which the defendant was simultaneously convicted;\n  (c) the total number of and pertinent details contained in any\ncharging instruments, which shall include only the amount of money\nalleged to have been defrauded and the workers' compensation fraud\ncharges alleged, and shall not include any personally identifying\ninformation of the charged individual or any other information that is\nnot publicly available; and\n  (d) the number of new positions created and persons hired for\npositions within dedicated workers' compensation fraud units.\n