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

2025 Regular Session Introduced by Patrick Gallivan

Holland CSD can establish and use an insurance reserve fund to cover losses, claims, actions, or judgments for insured risks, like other districts.

RETURNED TO SENATE

Summary of Bill S.9345 (2025-2026) – New York

Purpose and intent

This bill authorizes the Holland Central School District (Holland CSD) to establish an insurance reserve fund under the General Municipal Law, aligning with other districts that already have such reserves.

The objective is to enable Holland CSD to set aside funds to cover losses, claims, actions, or judgments for which the district is required or authorized to maintain insurance.

Key provisions and changes

Amends Paragraph (a) of subdivision 2 of section 6-n of the General Municipal Law to expand eligibility for insurance reserve funds to include Holland CSD specifically, along with several other listed districts.

Permits the Holland CSD, once the reserve fund is created, to expend funds from the reserve for the same purposes and types of risks as other districts that maintain insurance (i.e., those for which the district is authorized or required to purchase or maintain insurance under applicable law and regulations).

Specifies that expenditures from the reserve fund must be for losses, claims, actions, or judgments related to insurance-covered risks, consistent with paragraph three of subsection (a) of section 1113 of the Insurance Law and article seventy-four of the Education Law.

States that funds may not be used for losses that are already covered by another established reserve fund under different legal provisions.

Lists Holland CSD among a group of specific districts that may establish such an insurance reserve fund, along with numerous others (e.g., Scarsdale UFSD, Mamaroneck UFSD, Ithaca CSD, Kenmore-Town of Tonawanda UFSD, Grand Island CSD, and several more).

Affected entities and scope

Primary beneficiary: Holland Central School District.

Indirectly affects other districts that are explicitly named in the bill as eligible to establish insurance reserve funds (the provision mirrors existing allowances for these districts and expands to include Holland CSD).

Applies to expenditures from the reserve fund for insured-risk categories specified in law (insurance law and Education Law provisions referenced).

Procedural and timing aspects

Introduced in the New York Senate by Senator Gallivan; co-sponsored by Senator Patrick Gallivan.

The bill was referred to the Senate Committee on Local Government and, per action history, received a 1st and 2nd reading and reports during the 2025-2026 session.

Effective date: Immediate upon enactment (“takes effect immediately”).

Practical impact and considerations

Holland CSD would gain the authority to create and fund an insurance reserve, potentially improving financial resilience against insured losses without immediate impact on taxpayer funding.

The reserve could be used for losses tied to insured risks (as defined by applicable law), subject to compliance with Education Law Article 74 and Insurance Law requirements.

The bill maintains safeguards by prohibiting use of the reserve for losses already covered by other reserve funds.

Fiscal implications depend on the size of the reserve, funding methods (e.g., annual appropriations), and claim history; the bill does not specify funding levels or contribution formulas.

If you’d like, I can provide a comparison to how other listed districts administer their insurance reserve funds or outline the specific sections of the Insurance Law and Education Law referenced in the bill.