N.Y. State Finance Law § 206-a: Employee benefit fund; negotiating unit created by chapter four hundred three of the laws of nineteen hundred eighty-three

§ 206-a. Employee benefit fund; negotiating unit created by chapter

four hundred three of the laws of nineteen hundred eighty-three. 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 unit created by chapter four hundred three of the

laws of nineteen hundred eighty-three established by 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.

c. "Retiree" shall mean any person who was an employee of the state of

New York on or after April first, nineteen hundred eighty-four in the

negotiating unit created by chapter four hundred three of the laws of

nineteen hundred eighty-three and who immediately upon termination of

employment with the state is eligible to receive a service retirement

benefit from either the New York state employees' retirement system or

the New York city employees' retirement system.

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 unit

covered by the controlling provision of such agreement, such amount to

be determined consistent with the procedure established in said

agreement, 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 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 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 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 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.