S 9113 NY

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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S09113 Summary: BILL NO S09113A &nbsp SAME AS SAME AS A09646-A

&nbsp SPONSOR BAILEY &nbsp COSPNSR ADDABBO, BASKIN, BRISPORT, CLEARE, COMRIE, FERNANDEZ, GONZALEZ, HARCKHAM, MAYER, PARKER, RYAN C, SALAZAR, SEPULVEDA, SERRANO, SUTTON, WEBER &nbsp MLTSPNSR &nbsp Add Art 35 §§3501 - 3503, Ins L; amd §398-a, add §398-g, Soc Serv L; add §97-bbbbb, St Fin L &nbsp Establishes participation in assigned risk plans for voluntary foster care agencies (Part A); requires the office of children and family services to establish standards of payment for liability insurance costs beginning July 1, 2028 for the 2027-2028 rate year that ensures the maximum state aid rate accurately reflect the year over year increased costs for voluntary foster care agencies; directs such office to establish an application process (Part B); establishes the voluntary foster care agency insurance bridge fund; establishes a process for the distribution of moneys in such fund; sets eligibility requirements; requires certain supporting documentation (Part C).

Go to top S09113 Text:

STATE OF NEW YORK ________________________________________________________________________

9113--A

IN SENATE

February 3, 2026 ___________

Introduced by Sens. BAILEY, ADDABBO, BASKIN, BRISPORT, CLEARE, COMRIE, FERNANDEZ, GONZALEZ, HARCKHAM, MAYER, C. RYAN, SALAZAR, SEPULVEDA, SERRANO, SUTTON, WEBER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to participation in assigned risk plans by voluntary foster care agencies (Part A); to amend the social services law, in relation to requiring the office of children and family services to establish standards of payment for liability insurance costs that ensures the maximum state aid rate accurately reflect the year over year increased costs for voluntary foster care agencies (Part B); and to amend the state finance law and the social services law, in relation to establishing the voluntary foster care agency insurance bridge fund and establishing a process for the distribution of moneys in such fund (Part C)

The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:

1 Section 1. This act enacts into law components of legislation relating 2 to liability insurance for voluntary foster care agencies. Each compo- 3 nent is wholly contained within a Part identified as Parts A through C. 4 The effective date for each particular provision contained within such 5 Part as set forth in the last section of such Part. Any provision in any 6 section contained within a Part, including the effective date of the 7 Part, which makes a reference to a section "of this act", when used in 8 connection with that particular component, shall be deemed to mean and 9 refer to the corresponding section of the Part in which it is found. 10 Section four of this act sets forth the general effective date of this 11 act.

12 PART A

13 Section 1. The insurance law is amended by adding a new article 35 to 14 read as follows:

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14437-04-6

S. 9113--A 2

1 ARTICLE 35 2 ASSIGNED RISK PLANS; VOLUNTARY FOSTER CARE AGENCIES 3 Section 3501. Participation in assigned risk plans. 4 3502. Administration. 5 3503. Coverage. 6 § 3501. Participation in assigned risk plans. (a) All authorized 7 insurers licensed to write commercial risk insurance in this state shall 8 subscribe to and participate in the reasonable plan or plans, created 9 and administered, by the superintendent, in consultation with the 10 commissioner of the office of children and family services, for equita- 11 ble apportionment among such insurers of applicants. 12 (b) Applicants of a reasonable plan or plans under this section shall 13 include authorized agencies as defined in subdivision ten of section 14 three hundred seventy-one of the social services law, also known as 15 voluntary foster care agencies. 16 § 3502. Administration. The superintendent, in consultation with the 17 commissioner of the office of children and family services shall admin- 18 ister the reasonable plan or plans established under this article. The 19 superintendent shall establish for the benefit of applicants, standards 20 of service of participating insurers including timely issuance of poli- 21 cies, certificates and endorsements, financial security forms, and the 22 collection of required deposits. The superintendent shall also establish 23 the application process for applicants to apply for and receive coverage 24 under the reasonable plan or plans. 25 § 3503. Coverage. (a) Any such plan established pursuant to this arti- 26 cle shall meet the minimum general liability insurance coverage require- 27 ments required in contracts by counties and shall provide for availabil- 28 ity to applicants for: 29 (1) professional liability coverage; and 30 (2) sexual abuse and molestation coverage. 31 (b) Such plan or plans shall provide for the method of classifying 32 risks, establishing territories and making rates applicable thereto. 33 Such rates shall be based upon loss and expense experience of the risks 34 insured pursuant to the plan or plans. 35 § 2. This act shall take effect immediately.

36 PART B

37 Section 1. Section 398-a of the social services law is amended by 38 adding a new subdivision 7 to read as follows: 39 (7) (a) The office of children and family services shall establish 40 standards of payment for liability insurance costs that ensures the 41 maximum state aid rate accurately reflect the year over year increased 42 costs for voluntary foster care agencies. Beginning July first, two 43 thousand twenty-seven, with the two thousand twenty-seven--two thousand 44 twenty-eight rate year, and every year thereafter, such standards of 45 payment: 46 (i) shall address liability insurance costs in a separate component 47 from other administration costs; and 48 (ii) may include a process related to parameter increases that 49 reflects the full growth in liability insurance costs. 50 (b) The office of children and family services shall establish an 51 application process for voluntary foster care agencies that can demon- 52 strate increased costs for liability insurance that are not reflected in 53 the calculation of the rate that is in effect at the time of applica- 54 tion, to request a rate adjustment solely based on such increase,

S. 9113--A 3

1 subject to funds appropriated and the availability of state financial 2 assistance. 3 § 2. This act shall take effect immediately.

4 PART C

5 Section 1. The state finance law is amended by adding a new section 6 97-bbbbb to read as follows: 7 § 97-bbbbb. Voluntary foster care agency insurance bridge fund. 1. 8 There is hereby established in the joint custody of the state comp- 9 troller and the commissioner of taxation and finance a fund to be known 10 as the "voluntary foster care agency insurance bridge fund". 11 2. The voluntary foster care agency insurance bridge fund shall 12 consist of moneys appropriated, credited or transferred thereto from any 13 other fund or source. Any unexpended and unencumbered moneys remaining 14 in the voluntary foster care agency insurance bridge fund at the end of 15 a fiscal year shall remain in such fund and shall not be credited to any 16 other fund. Any interest received by the comptroller on moneys on depos- 17 it in the fund shall be retained in and become a part of such fund. 18 3. Moneys of the voluntary foster care agency insurance bridge fund 19 shall be made available to the superintendent of financial services, in 20 consultation with the commissioner of the office of children and family 21 services for distribution to foster care agencies to offset the 22 increased costs of purchasing required liability insurance. 23 4. To be eligible to be awarded moneys from the voluntary foster care 24 agency insurance bridge fund, a voluntary foster care agency shall 25 submit an application, including documentation demonstrating that the 26 provider has experienced an increase in the cost of their liability 27 insurance, in accordance with section three hundred ninety-eight-g of 28 the social services law. 29 § 2. The social services law is amended by adding a new section 398-g 30 to read as follows: 31 § 398-g. Voluntary foster care agencies; distribution of funds to 32 offset increased liability insurance costs. 1. Process for distribution 33 of funds. The superintendent of financial services, in consultation with 34 the office of children and family services shall establish a process for 35 the distribution of funds, subject to appropriations made available for 36 such purpose, from the voluntary foster care agency insurance bridge 37 fund established pursuant to section ninety-seven-bbbbb of the state 38 finance law, including the eligibility criteria and an application for 39 voluntary foster care agencies to submit supporting documentation demon- 40 strating an increase in the cost of such liability insurance. The super- 41 intendent of financial services, in consultation with the office of 42 children and family services shall establish and make available a 43 consolidated application for the voluntary foster care agency insurance 44 bridge fund no later than ninety days from the effective date of this 45 section. 46 2. Eligibility. A voluntary foster care agency shall be eligible to 47 receive funding pursuant to this section when such agency can demon- 48 strate it has: 49 (a) incurred a documented increase in liability insurance costs, 50 and/or increased deductible costs for actual claims paid; 51 (b) had foster care placements in the calendar years of two thousand 52 twenty-four and two thousand twenty-five; and 53 (c) an active and valid foster care operating certificate issued by 54 the office of children and family services.

S. 9113--A 4

1 3. Supporting documentation. The office of children and family 2 services may require eligible agencies to submit supporting documenta- 3 tion including but not limited to: 4 (a) invoices or other proof from an insurance carrier or broker that 5 identifies the amount of the previous and current or new insurance 6 premiums, including coverage dates; 7 (b) an invoice identifying the cost of the current insurance premium 8 with a notice of nonrenewal and quotes from other insurance carriers 9 demonstrating an impending increase in costs when their current insur- 10 ance expires; and 11 (c) invoices for actual insurance claims that included increased costs 12 incurred from paying higher deductibles, for claims covered and paid 13 under the terms of a policy in effect after the increased premiums took 14 effect. Such claims must also include documentation that shows the 15 previous and current deductible amounts, and in the instance of 16 increased costs to meet county requirements, documentation may include 17 county contracts showing the required insurance level a foster care 18 agency must secure to contract with such county. 19 § 3. This act shall take effect immediately; provided, however, that 20 section two of this act shall take effect one year after it shall have 21 become a law. 22 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 23 sion, section or part of this act shall be adjudged by any court of 24 competent jurisdiction to be invalid, such judgment shall not affect, 25 impair, or invalidate the remainder thereof, but shall be confined in 26 its operation to the clause, sentence, paragraph, subdivision, section 27 or part thereof directly involved in the controversy in which such judg- 28 ment shall have been rendered. It is hereby declared to be the intent of 29 the legislature that this act would have been enacted even if such 30 invalid provisions had not been included herein. 31 § 3. This act shall take effect immediately; provided, however, that 32 the applicable effective date of Parts A through C of this act shall be 33 as specifically set forth in the last section of such Parts.

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