Section 216-C. State administration of service award programs

1. On or
  before the fifteenth day of November, two thousand  eight  and  of  each
  succeeding  calendar  year, the administrator shall determine the amount
  that each participating program sponsor  is  required  to  pay  for  the
  state-administered  service  award  programs.  The  administrator  shall
  submit to the fiscal officer of each political subdivision  a  statement
  of the amount so payable. Such amount shall consist of the amount deemed
  necessary to provide for payment in full of all estimated obligations of
  the  current  fiscal  year  of  the  fire service awards program and any
  additional obligations, plus interest on such amount, for  fiscal  years
  proceeding  the  current  fiscal  year.  If,  as  a result of the amount
  determined to be paid for  any  fiscal  year,  a  participating  program
  sponsor  over-paid its actual obligation for that year, the amount to be
  determined  by  the  administrator  for  the  next  succeeding  November
  fifteenth  shall  reflect the amount of the over payment, plus interest,
  as a reduction in the amount otherwise  required  to  be  paid  by  such
  participant political subdivision.
    2.   State-administered   service  award  programs  may  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.
    3. 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,  application  procedures  for   transfer   into   the
  state-administered program, and any other matter relating to the service
  award programs.
    4.  (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 firefighters,  and  standards  and
  procedures  for  the  administration  of  all state-administered 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.
    5. 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
  himself 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
  sections 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.
    6. There is hereby established in the custody of the state comptroller
  a special fund to be known as the volunteer  firefighter  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.
    7. 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.
    8. 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.
    9. (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.