N.Y. General Municipal Law § 219-p: Administration

§ 219-p. Administration. 1. Service award programs shall be centrally

administered by the state comptroller, or the comptroller may enter into

one or more of the following contracts:

(a) a contract with an administrative service agency or financial

organization to serve as program administrator and to perform all or any

portion of the functions required to establish and administer such

programs including, but not limited to, preparation of a plan document,

record keeping, reporting, payment of service awards, and having custody

of program moneys and assets;

(b) contracts with one or more financial organizations to invest

program moneys; or

(c) a contract with an actuary for the performance of all actuarial

calculations required by the program.

If the comptroller contracts for the performance of any function as

provided in this subdivision, the comptroller shall be liable only for

the exercise of due care in the selection of the administrative service

agency, financial organization or actuary performing the function.

2. The state comptroller shall promulgate rules and regulations, as

appropriate, for the service award programs. Such rules shall include,

but not be limited to, standards for the selection of service providers,

the method and timing of the payments required to be made by the

sponsor, reporting requirements, matters relating to the preparation of

a plan document, and any other matter relating to the service award

programs.

3. (a) The state comptroller, or an administrative service agency or

financial organization serving as program administrator, shall prepare

and may amend a single plan document setting forth the obligations of

sponsors, the rights of the volunteer ambulance workers, and standards

and procedures for the administration of all service award programs. The

plan document and any amendments thereto shall be consistent with the

provisions of this article, the rules and regulations promulgated by the

comptroller and any amendments thereto. If the plan document or any

amendment thereto is prepared by an administrative service agency or

financial organization, it shall not take effect until approved by the

comptroller.

(b) The program administrator shall cause a summary of the plan

document to be provided to each participant within six months from the

date that program participation commences. The program administrator

shall also cause a summary of any material amendment of the plan

document to be provided to each participant within six months of the

date the amendment takes effect.

(c) The plan document and the summary of the plan document shall be

made available for public inspection and copying.

4. All program assets shall be held in trust for the exclusive purpose

of providing service awards to participants and their beneficiaries or

for the purpose of defraying the reasonable expenses of the operation

and administration of the program. The trust shall be established and

may be amended by the state comptroller. The comptroller may designate

him or herself, an administrative service agency or a financial

organization as trustee, and may substitute trustees. If the service

award programs and the trust are not tax qualified within the meaning of

section 401 and 501 of the Internal Revenue Code of 1954 (68A Stat. 3.26

U.S.C. 401 and 501), the trust may provide that assets apportioned to an

individual sponsor may be subject to the claims of general creditors, if

any, of the sponsor or may contain such other terms and provisions as

are necessary to ensure that participation in a service award program

does not result in taxable income under any provision of the Internal

Revenue Code of 1986, as amended.

5. There is hereby established in the custody of the state comptroller

a special fund to be known as the volunteer ambulance service award

fund. Such fund shall consist of any money of service award programs

held by the comptroller. Moneys may be paid from such fund without an

appropriation by law. All payments from such fund shall be made only in

accordance with the provisions of this article, the rules and

regulations promulgated thereto and the plan document.

6. The moneys held for the sponsor of each service award program shall

be accounted for separately. The administrator shall cause a statement

of contributions to be provided to sponsors at least once annually.

7. The administrator and every fiduciary of a service award program

shall be required to act solely in the interest of the program's

participants and beneficiaries. Notwithstanding the provisions of any

general or special law restricting the power or duty of the state

comptroller to invest moneys belonging to a fund which the comptroller

is authorized to invest, a fiduciary may accept, hold, invest in and

retain any investment if purchased or retained with the care, skill,

prudence and diligence under the circumstances then prevailing that a

prudent person acting in a like capacity and familiar with such matters

would use in the conduct of an enterprise of like character and with

like aim.

8. (a) All contracts or agreements with an administrative service

agency, financial organization or actuary shall be awarded only after

receiving competitive proposals. In addition to other statutory

requirements, the state comptroller shall cause to be published in the

state register and in the official newspaper or newspapers, if any, or

otherwise in an appropriate newspaper designated for such purposes, at

least sixty days prior to the date on which the contract or agreement

will be awarded and shall request proposals within thirty days of

publications.

(b) All contracts and agreements entered into with an administrative

service agency, financial organization or actuary shall be in writing,

shall not exceed five years in duration, and shall impose no penalties

or surrender charges for the transfer of assets or responsibilities on

termination of the contract or agreement such contracts and agreements

shall be available for public inspection and copying.