NY State Fin L § 99-C (2021)
2021 New York Laws STF - State Finance Article 6 - Funds of the State 99-C - Withholding of State Aid Upon Failure of Municipalities and School Districts to Repay Health Insurance Reserve Receipts When Required.

§  99-c.  Withholding  of state aid upon failure of municipalities and   school  districts  to  repay  health  insurance  reserve  receipts  when   required.  1.  In  the  event  a  county,  city, town, village or school   district which has elected to receive distribution or distributions from   the health insurance reserve receipts fund,  pursuant  to  an  agreement   between such municipality or school district and the state and which has   elected  to terminate its contractual agreement for health benefits with   the New York state department of civil service, or if called upon by the   New York state department of civil service, pursuant to such  agreement,   to  return  such  distribution  within  the  time  period  and under the   conditions specified in such agreement,  shall  be  in  default  of  its   obligation to repay such distribution, the allotment, apportionment, and   payment  of  local  assistance  aid, education aid or other state aid as   appropriate and as determined by the comptroller shall  be  withheld  by   the state upon the following terms and conditions.2.  In  the  event  of the failure or inability of the municipality or   school district to repay its distribution pursuant  to  the  contractual   agreement,  the  department  of  civil  service shall forthwith make and   deliver to the comptroller of  the  state  of  New  York  a  certificate   stating  the  amount  due  and not paid, and the state comptroller shall   thereafter deduct and withhold  from  the  next  succeeding  allotments,   apportionments   or  payments  of  state  aid  or  assistance  due  such   municipality or school district such amount or amounts thereof as may be   required to pay the amount due. The state shall not be obligated to pay,   by  virtue  of  such   withholdings,   any   additional   or   increased   apportionment or payment of state aid or assistance.2-a. Notwithstanding the provisions of subdivision two of this section   or  any  other inconsistent provision of law, a school district or board   of cooperative educational services which is subject to the requirements   of this section may repay its distribution  pursuant  to  a  contractual   agreement  authorized  by this section over a period of ten state fiscal   years, in equal annual installments, payable by  March  thirty-first  of   each  year.  For  school  districts or boards of cooperative educational   services which terminate the contractual agreement prior to July  first,   nineteen hundred eighty-three, the first installment shall be paid prior   to  March  thirty-first,  nineteen  hundred  eighty-four.  For all other   school districts and boards of  cooperative  educational  services,  the   first  installment  shall  be  paid  prior  to  March thirty-first first   succeeding the termination of such agreement. The comptroller shall  not   withhold  from  state  aid  or other assistance due a school district or   board  of  cooperative  educational  services   any   amount   of   such   distribution  due  and  owing  as  certified  by the department of civil   service to the comptroller pursuant to subdivision two of this  section,   until   and   unless  such  school  district  or  board  of  cooperative   educational services fails to make an installment payment authorized  by   this  subdivision  by  March  thirty-first  of the applicable year. Upon   failure of  a  school  district  or  board  of  cooperative  educational   services  to  make an installment payment, the withholding provisions of   subdivision two of this section shall take effect to the extent  of  the   amount  of  that  unpaid installment. The comptroller shall within sixty   days of the date on which this subdivision becomes effective  or  within   sixty  days  of  any subsequent termination of the contractual agreement   notify  the  applicable  school  district  or   board   of   cooperative   educational  services  of  the  provisions  of  this subdivision, of the   amount due and owing, and the amount of each installment.3. Notwithstanding any inconsistent provisions of law, the comptroller   shall establish a fund,  to  be  called  the  health  insurance  reserve   receipts  fund,  to receive transfers of funds from the health insurance    carriers or the plan administrator or administrators  of  the  New  York   state  employee  health benefit plan, pursuant to contractual agreements   between such carriers and the New York state department of civil service   and/or   from   the  health  insurance  fund.  Moneys  returned  by  the   municipalities and school districts or withheld from state  aid  by  the   comptroller   pursuant   to  provisions  governing  termination  of  the   contractual agreements shall be deposited in  this  fund.  Disbursements   from the health insurance reserve receipts fund shall be for the purpose   of  remitting  to  the  carriers  any  moneys  due  them  as a result of   termination of the state's contract with the carriers or termination  of   agreements  between  the  state  and municipalities and school districts   and/or for the purpose of transferring funds  to  the  health  insurance   fund.  Disbursements  from  such  fund  shall  be  made  pursuant to the   procedures for authorization of expenditures contained in article eleven   of the civil service law upon the issuance of a certificate of  approval   of  availability  by the director of the budget and subject to audit and   warrant of the comptroller.