Section 61. Continuance of existing plans; establishment of new plans

1.
  Plans  of  mutual  self-insurance  heretofore  adopted  by   boards   of
  supervisors  of  counties  pursuant  to  former  subdivision  three-a of
  section fifty of this chapter, are hereby continued; provided,  however,
  that  the board of supervisors of a county must provide by local law for
  the continuation of the plan and for the administration thereof pursuant
  to this  article  on  or  before  July  thirty-first,  nineteen  hundred
  fifty-six,  or  such  plan  shall  be  deemed  abandoned  as  of October
  thirty-first, nineteen hundred fifty-six, subject to the  provisions  of
  subdivision  two of section seventy-five of this chapter. All such plans
  not so abandoned shall be operated pursuant to the  provisions  of  this
  article and local laws adopted pursuant thereto.
    2. The board of supervisors of a county may by local law establish the
  plan of self-insurance provided for in this article.
    3.  A  local  law  establishing  a  plan pursuant to this article may,
  notwithstanding the provisions of paragraph  f  of  subdivision  one  of
  section  eleven  of  the  municipal  home  rule  law,  provide  that the
  provisions of subdivision three of section sixty-three of this  chapter,
  as  amended  from  time  to time, shall not be applicable to the plan in
  that county and, if such plan is established, the term  "liability",  as
  used in this article, shall not include any compensation, assessments or
  other  obligations  under  the  volunteer  firemen's benefit law and the
  provisions of subdivision three of section sixty-three of this  chapter,
  as  amended  from  time  to time, shall not be applicable in relation to
  such plan.
    4. If a plan has been continued pursuant to this article, the board of
  supervisors may,  notwithstanding  the  provisions  of  paragraph  f  of
  subdivision  one of section eleven of the municipal home rule law, adopt
  a local law on or before the first day of August in any year to  provide
  that  the provisions of subdivision three of section sixty-three of this
  chapter, as amended from time to time, shall not be  applicable  to  the
  plan in that county after the thirty-first day of December in such year,
  except  as  to  liabilities existing on such latter date, and, if such a
  local law is adopted, the term "liability", as  used  in  this  article,
  shall  not  include  any  compensation, assessments or other obligations
  under the  volunteer  firemen's  benefit  law,  and  the  provisions  of
  subdivision  three  of  section sixty-three of this chapter shall not be
  applicable in relation to such  plan,  after  the  thirty-first  day  of
  December in such year, except as to, and in connection with, liabilities
  existing on such thirty-first day of December.
    5.  If  a  local  law  has been adopted pursuant to either subdivision
  three or subdivision four of this section, the board of supervisors may,
  notwithstanding the provisions of paragraph  f  of  subdivision  one  of
  section  eleven  of the municipal home rule law, adopt a local law on or
  before the first  day  of  August  in  any  year  to  provide  that  the
  provisions  of subdivision three of section sixty-three of this chapter,
  as amended from time to time, shall be applicable to the  plan  in  that
  county after the thirty-first day of December in such year, and, if such
  a  local  law  is adopted, the term "liability", as used in this article
  shall include any compensation, assessments, or other obligations  under
  the   volunteer  firefighters'  benefit  law,  the  volunteer  ambulance
  workers' benefit law, and the provisions of subdivision three of section
  sixty-three of this chapter shall be  applicable  in  relation  to  such
  plan, after the thirty-first day of December in such year, and, further,
  the   provisions  of  section  sixty-seven  of  this  chapter  shall  be
  applicable on and after the first day of August in such year in relation
  to such plan.

    6. Notwithstanding the provisions of paragraph f of subdivision one of
  section eleven of the municipal home rule law, the board of  supervisors
  of  a  county  may  by local law amend the definition of "liability", as
  defined in subdivision seven  of  section  sixty  of  this  chapter,  to
  exclude  any  liability  under paragraph m of subdivision one of section
  five of the volunteer firemen's benefit law.