N.Y. State Finance Law § 206: Employee benefit fund; administrative services, operational services, or institutional services

§ 206. Employee benefit fund; administrative services, operational

services, or institutional services. 1. Definitions. As used in this

section, unless otherwise expressly stated:

a. "Director" shall mean the director of employee relations.

b. "Employee" shall mean any person in the service of the state of New

York who is appointed to and serving in a position contained within the

collective negotiating units designated as the administrative services

unit, the operational services unit or the institutional services unit

established pursuant to article fourteen of the civil service law who is

otherwise eligible for health insurance coverage pursuant to law and the

rules and regulations of the department of civil service, except that it

shall not mean seasonal employees whose employment is expected to last

less than six months, employees in temporary positions of less than six

months duration, or employees holding appointments otherwise expected to

last less than six months.

2. Where and to the extent that, an agreement between the state and an

employee organization entered into pursuant to article fourteen of the

civil service law so provides on behalf of employees and upon audit and

warrant of the comptroller, the director shall provide for the payment

of monies quarterly to such employee organization for the establishment

and maintenance of an employee benefit fund established by the employee

organization for the employees in the negotiating units covered by the

controlling provision of such agreement providing for such employee

benefit fund, such amount to be determined consistent with the procedure

established in said agreement but, on the basis of the number of

employees as defined herein on the payroll during the payroll period the

last day of which ends no later than twenty-one calendar days before the

beginning of the quarter next following such day as determined by the

comptroller. The amount, which will be determined pursuant to this

section, for employees who are paid from first instance funds, or from

special or administrative funds, will be paid from the appropriations as

provided by law, in which case the comptroller will establish procedures

to ensure repayment from first instance general state charge

appropriations or from said special or administrative funds. The

director may enter into an agreement with an employee organization which

sets forth the specific terms and conditions for the establishment and

administration of an employee benefit fund as a condition for the

transmittal of monies pursuant to this section.

3. Such employee organization shall periodically as specified by the

director, supply a description of the benefits purchased or provided by

the employee benefit fund, the utilization experience of the benefit

fund, the amount disbursed for or the cost of such benefits and such

other information as may be requested by the director.

4. The employee organization shall report to the comptroller, in the

form and manner as he may direct, the amount it expended for the

purchase of or providing for such benefits for any period specified by

the comptroller. The comptroller is hereby authorized to audit the books

of the employee organization with respect to any monies transmitted to

it pursuant to this section.

5. Neither the state nor any officer or employee of the state

(including "employee" as defined herein and any other employee of the

state) shall be a party to any contract or agreement entered into by any

employee organization providing for benefits purchased in whole or in

part with monies transmitted to such employee organization pursuant to

this section. No benefit provided pursuant to such contracts or

agreements shall be payable by the state and all such benefits shall be

paid by the responsible parties to such agreements or contracts pursuant

to the terms and conditions of such agreements or contracts. The

employee organization shall be a fiduciary with respect to an employee

benefit fund established pursuant to this section.

6. Nothing herein shall be deemed to diminish, impair or reduce any

benefit otherwise payable to any employee established or authorized by

law, rule or regulation by reason of such employee's lack of eligibility

to participate in any benefit program established by an employee

organization pursuant to this section.

7. In the event it is determined that the monies transmitted to an

employee organization pursuant to this section is income for which

payroll deductions are required for income tax withholdings from the

salary or wages of employees pursuant to law, the comptroller shall

determine the amount of such withholdings required and deduct the amount

so required to be withheld from the salary or wages of the employees

concerned.

8. The employee organization shall indemnify the state for any claims

whatsoever paid by it arising from the establishment, administration or

discontinuation of any employee benefit provided pursuant to this

section, together with reasonable costs of litigation arising therefrom.

9. Insofar as the provisions of this section are inconsistent with the

provisions of any other act, general or special, the provisions of this

section shall be controlling.