Permits the Johnson City central school district to create an insurance reserve fund.
Summary
This bill amends the General Municipal Law to add the Johnson City central school district to the list of school districts specifically authorized to establish an insurance reserve fund. Under current law, municipal corporations may create insurance reserve funds to pay certain losses, claims, actions, or judgments related to insurance coverage. The bill extends that authority to Johnson City CSD, allowing it to set aside money in a reserve fund and use those funds for covered insurance-related liabilities, subject to the same statutory limits that apply to other listed districts.
The measure is narrow and local in scope. It does not create a new statewide program or alter the general rules for all school districts; instead, it makes a targeted amendment to an existing statute that already names several individual school districts permitted to use this reserve mechanism. The bill takes effect immediately upon enactment.
Impact
The bill changes section 6-n of the General Municipal Law by adding Johnson City central school district to the enumerated school districts eligible to establish and use an insurance reserve fund under that section and article 74 of the Education Law. As a result, Johnson City CSD would gain an additional fiscal tool to manage insurance-related losses, claims, actions, or judgments, potentially improving budget stability and reducing reliance on current-year appropriations for covered liabilities. The bill affects only the named district and does not broadly expand municipal reserve authority beyond the existing framework.
Sentiment
The available context suggests generally favorable sentiment. The bill was reported favorably from the Senate Local Government Committee and advanced through the legislative process with amendment, indicating committee support for the district-specific authorization. No vote totals or recorded opposition are provided, and there are no committee transcripts in the supplied materials, but the procedural history points to a routine, noncontroversial local bill.
Contention
No explicit controversy is reflected in the provided record. The only notable issue is the bill’s highly specific treatment of one school district, which is typical of local authorization bills and may raise questions in principle about why one district is singled out rather than addressed through a broader statewide rule. However, the text and available history do not show any stated opposition, fiscal dispute, or policy disagreement from legislators or stakeholders.
Authorizes the Holland central school district to establish an insurance reserve fund for any loss, claim, action or judgment for which such school district is authorized or required to purchase or maintain insurance for the kinds of risks for which insurance is authorized.
Authorizes the Holland central school district to establish an insurance reserve fund for any loss, claim, action or judgment for which such school district is authorized or required to purchase or maintain insurance for the kinds of risks for which insurance is authorized.
Relating to the authority of the Wood County Central Hospital District of Wood County, Texas, to provide brain and memory care services to residents of the hospital district through the creation and operation of brain and memory health care services districts.