New York Codes, Rules and Regulations › Title 12 - DEPARTMENT OF LABOR › Chapter V - Workers' Compensation › Subchapter B - Self-insurers › Part 316 - Rules › Section 316.5 - Consolidation of security deposits

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A corporation which has qualified as, or
				  has applied to become, a self-insurer pursuant to the provisions of subdivision
				  3 of section 50  of the Workers' Compensation Law may apply to the chair for
				  permission to establish a consolidated deposit with one or more subsidiary
				  corporations of which it is the owner, directly or indirectly, of at least a
				  majority of the voting shares. Such application shall be accompanied by an
				  agreement, in the form prescribed by the chair, duly approved by the board of
				  directors of each corporation that the corporate parties and the aggregate
				  amount of securities and/or cash, the aggregate amount of the penal sums of the
				  surety bonds and/or the aggregate amount of the letters of credit deposited or
				  to be deposited with the chair by them, individually and collectively, at all
				  times shall be liable and shall be available, at the discretion of the chair,
				  for the payment of any and all compensation, death benefits, administrative
				  expenses, assessments, and/or other charges or obligations for which the
				  corporation and/or each and every one of the subsidiary corporations shall be
				  liable under the Workers' Compensation Law and under the rules and regulations
				  of the Workers' Compensation Board and/or of its chair.
(b) A not-for-profit corporation which has
				  qualified as, or has applied to become, a self- insurer pursuant to the
				  provisions of subdivision 3 of section 50  of the Workers' Compensation Law may
				  apply to the chair for permission to establish a consolidated deposit with one
				  or more not-for-profit corporations of which it is the owner, directly or
				  indirectly, of at least a majority interest. For purposes of this section, a
				  determination of majority interest shall be based on:
(1) the majority of the members of each such
				  entity; or
(2) the majority of the
				  board of directors or comparable governing body of each such entity; or
(3) the same central authority
				  which appoints or controls the appointment of the board of trustees or similar
				  body and exercises direct, complete and active control over the finances,
				  properties, operations and activities of separate legal entities. Such
				  application shall be accompanied by an agreement, in the form prescribed by the
				  chair, duly approved by the board of directors of each not-for-profit
				  corporation that the corporate parties and the aggregate amount of securities
				  and/or cash, the aggregate amount of the penal sums of the surety bonds and/or
				  the aggregate amount of the letters of credit deposited or to be deposited with
				  the chair by them, individually and collectively, at all times shall be liable
				  and shall be available, at the discretion of the chair, for the payment of any
				  and all compensation, death benefits, administrative expenses, assessment,
				  and/or other charges or obligations for which the corporation and/or each and
				  every one of the entities in which the not-for-profit corporation has a
				  majority ownership interest shall be liable under the Workers' Compensation Law
				  and under the rules and regulations of the Workers' Compensation Board and/or
				  of its chair.