Section 219-H. 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; or
    (b) contracts with one  or  more  financial  organizations  to  invest
  program  moneys. 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 or financial organization.
    2. The state comptroller shall promulgate rules  and  regulations,  as
  appropriate,  for  service award programs. Such rules shall include, but
  not  be  limited  to,  standards  for   the   selection   of   financial
  organizations,  the method and timing of the payment of contributions to
  the  fund  made  by  the  sponsoring  organization,  the  reporting   on
  individual  participant accounts, matters relating to the preparation of
  a plan document and any other matter properly pertaining thereto.
    3. (a) The state comptroller, or an administrative service  agency  or
  financial  organization  selected  by the comptroller, 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 plan 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  plan  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
  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.
    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 participants of each service award program
  shall be accounted for separately.   The  administrator  shall  cause  a
  statement of contributions to be provided to sponsors and a statement of
  account balances to be provided to participants 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 or financial organization 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 publication.
    (b) All contracts and agreements entered into with  an  administrative
  service  agency  or  a financial organization 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.