Authorizes the Holland central school district to establish an insurance reserve fund

2025 Regular Session Introduced by Dave DiPietro

Allows certain NY school districts to create and fund an insurance reserve to cover insured losses, claims, or judgments.

REPORTED REFERRED TO WAYS AND MEANS

Bill Summary: A10573 (2025-2026) – New York

Main purpose

Authorizes the Holland Central School District to establish and fund an insurance reserve fund. The fund would be used to cover losses, claims, actions, or judgments for which the district is authorized or required to purchase or maintain insurance.

Key provisions and changes

Amends the General Municipal Law, specifically subdivision 2, paragraph (a) of section 6-n, to expand eligibility for certain school districts to establish an insurance reserve fund.

Eligible districts (as listed in the bill) include: the Holland Central School District (and several other named districts) that may create and utilize insurance reserve funds in accordance with this section and Article 74 of the Education Law.

Authorized uses of the fund:

Expenditures from the insurance reserve fund may be made for any loss, claim, action, or judgment for which the district is authorized or required to purchase or maintain insurance.
Expenditures must follow the relevant limitations applicable to insurance-related reserve funds under the law.

Restrictions:

A district cannot use the insurance reserve fund for losses, claims, actions, or judgments for which another reserve fund already exists under any other provision of law.
The fund must be used in compliance with this section and Article 74 of the Education Law.

Specific districts listed as having the ability to establish such funds include: Scarsdale, Mamaroneck, Minisink Valley, Vernon-Verona-Sherrill, Ithaca, Kenmore-Town of Tonawanda, Bedford, Grand Island, Tonawanda, Middletown Enlarged City, Frontier, Owego Apalachin, Maine-Endwell, Binghamton, Candor, Cleveland Hill, Depew, Iroquois, along with the Holland Central School District itself, Liverpool Central, Auburn Enlarged City, Carmel, Clarence, Fulton, and Canastota central school districts.

Who would be affected

Primary: Holland Central School District (explicitly clarifies it may establish an insurance reserve fund).

Other named districts listed in the bill also potentially fall under the same authority.

School districts’ governing boards and finance officers who manage insurance and reserve funds would be affected, as they would implement and administer these reserves within the legal framework.

Procedural and timeline aspects

Introduction date: March 13, 2026.

Referred to the Committee on Education initially.

Latest action: May 18, 2026 — reported and referred to Ways and Means (indicating a progression through the legislative process toward consideration on the floor).

Effective date: Immediate take effect upon enaction (the bill states “This act shall take effect immediately”).

Practical impact and considerations

Provides a dedicated mechanism for school districts to self-fund insured losses up to certain limits rather than relying solely on insurance coverage or general funds.

Could improve financial planning and risk management for participating districts by ensuring funds are available to cover eligible losses.

Requires careful adherence to Article 74 of the Education Law and specified sections of the Insurance Law to ensure proper governance and limits on expenditures.

The inclusion of a broad list of districts suggests a regional pilot or expansion framework, though the bill’s language limits use to kinds of risks for which insurance is authorized.

If you’d like, I can provide a side-by-side comparison with current law to highlight the exact changes in language and any potential fiscal impact estimates based on typical reserve fund practice.