N.Y. STF Law § 99-C — New York Code / Act STF / Article 6 / Section 99-C
Withholding of state aid upon failure of municipalities and school districts to repay health insurance reserve receipts when required
Status: in_force

§ 99-c. Withholding of state aid upon failure of municipalities and\nschool districts to repay health insurance reserve receipts when\nrequired. 1. In the event a county, city, town, village or school\ndistrict which has elected to receive distribution or distributions from\nthe health insurance reserve receipts fund, pursuant to an agreement\nbetween such municipality or school district and the state and which has\nelected to terminate its contractual agreement for health benefits with\nthe New York state department of civil service, or if called upon by the\nNew York state department of civil service, pursuant to such agreement,\nto return such distribution within the time period and under the\nconditions specified in such agreement, shall be in default of its\nobligation to repay such distribution, the allotment, apportionment, and\npayment of local assistance aid, education aid or other state aid as\nappropriate and as determined by the comptroller shall be withheld by\nthe state upon the following terms and conditions.\n  2. In the event of the failure or inability of the municipality or\nschool district to repay its distribution pursuant to the contractual\nagreement, the department of civil service shall forthwith make and\ndeliver to the comptroller of the state of New York a certificate\nstating the amount due and not paid, and the state comptroller shall\nthereafter deduct and withhold from the next succeeding allotments,\napportionments or payments of state aid or assistance due such\nmunicipality or school district such amount or amounts thereof as may be\nrequired to pay the amount due. The state shall not be obligated to pay,\nby virtue of such withholdings, any additional or increased\napportionment or payment of state aid or assistance.\n  2-a. Notwithstanding the provisions of subdivision two of this section\nor any other inconsistent provision of law, a school district or board\nof cooperative educational services which is subject to the requirements\nof this section may repay its distribution pursuant to a contractual\nagreement authorized by this section over a period of ten state fiscal\nyears, in equal annual installments, payable by March thirty-first of\neach year. For school districts or boards of cooperative educational\nservices which terminate the contractual agreement prior to July first,\nnineteen hundred eighty-three, the first installment shall be paid prior\nto March thirty-first, nineteen hundred eighty-four. For all other\nschool districts and boards of cooperative educational services, the\nfirst installment shall be paid prior to March thirty-first first\nsucceeding the termination of such agreement. The comptroller shall not\nwithhold from state aid or other assistance due a school district or\nboard of cooperative educational services any amount of such\ndistribution due and owing as certified by the department of civil\nservice to the comptroller pursuant to subdivision two of this section,\nuntil and unless such school district or board of cooperative\neducational services fails to make an installment payment authorized by\nthis subdivision by March thirty-first of the applicable year. Upon\nfailure of a school district or board of cooperative educational\nservices to make an installment payment, the withholding provisions of\nsubdivision two of this section shall take effect to the extent of the\namount of that unpaid installment. The comptroller shall within sixty\ndays of the date on which this subdivision becomes effective or within\nsixty days of any subsequent termination of the contractual agreement\nnotify the applicable school district or board of cooperative\neducational services of the provisions of this subdivision, of the\namount due and owing, and the amount of each installment.\n  3. Notwithstanding any inconsistent provisions of law, the comptroller\nshall establish a fund, to be called the health insurance reserve\nreceipts fund, to receive transfers of funds from the health insurance\ncarriers or the plan administrator or administrators of the New York\nstate employee health benefit plan, pursuant to contractual agreements\nbetween such carriers and the New York state department of civil service\nand/or from the health insurance fund. Moneys returned by the\nmunicipalities and school districts or withheld from state aid by the\ncomptroller pursuant to provisions governing termination of the\ncontractual agreements shall be deposited in this fund. Disbursements\nfrom the health insurance reserve receipts fund shall be for the purpose\nof remitting to the carriers any moneys due them as a result of\ntermination of the state's contract with the carriers or termination of\nagreements between the state and municipalities and school districts\nand/or for the purpose of transferring funds to the health insurance\nfund. Disbursements from such fund shall be made pursuant to the\nprocedures for authorization of expenditures contained in article eleven\nof the civil service law upon the issuance of a certificate of approval\nof availability by the director of the budget and subject to audit and\nwarrant of the comptroller.\n