Section 151. Administration expenses

1.  The  chairman,  as  soon  as
  practicable after September first in each  year,  shall  submit  to  the
  director  of  the  budget  for  his  approval  an  estimated  budget  of
  expenditures for the succeeding fiscal year. There may not  be  expended
  by  the  board  for  purposes  of  administration  more than the amounts
  specified in such  budget  for  each  item  of  expenditure,  except  as
  authorized  by  the  director  of  the  budget.  If there be officers or
  employees of the board whose duties relate partly to the general work of
  the board and partly to the work of the department of labor, and in case
  there is other expense which  is  incurred  jointly  on  behalf  of  the
  general  work  of  the  board  and the department of labor, an equitable
  apportionment of the expense shall be made and the part thereof which is
  applicable to the board shall be chargeable  thereto.  The  board  shall
  include  in  its  annual  report to the governor a statement showing the
  expense  of  administering  the  workmen's  compensation  law  for   the
  preceding fiscal year.
    2.  (a) The chair and department of audit and control annually as soon
  as practicable after April first shall ascertain  the  total  amount  of
  expenses, including in addition to the direct costs of personal service,
  the   cost   of  maintenance  and  operation,  the  cost  of  retirement
  contributions made and workers' compensation premiums paid by the  state
  for  or  on  account  of  personnel, rentals for space occupied in state
  owned or state leased buildings, such additional sum as may be certified
  to the chair and the department of audit and  control  as  a  reasonable
  compensation for services rendered by the department of law and expenses
  incurred  by  such  department,  for  transfer  into  the  training  and
  education  program  on  occupational  safety  and  health  fund  created
  pursuant  to  chapter  eight  hundred eighty-six of the laws of nineteen
  hundred eighty-five and section ninety-seven-c of the state finance law,
  for the New York state occupational  health  clinics  network,  for  the
  department  of  labor  occupational  safety  and  health program and for
  transfer into the uninsured employers' fund pursuant to subdivision  two
  of  section  twenty-six-a  of  this  chapter,  and  all  other direct or
  indirect costs, incurred by the board during the preceding  fiscal  year
  in  connection  with  the  administration  of this chapter, except those
  expenses for which an assessment is authorized pursuant  to  subdivision
  five  of  section  fifty and sections two hundred twenty-eight and three
  hundred twenty-five of this chapter.
    * (b) An itemized statement of the expenses so  ascertained  shall  be
  open  to  public  inspection  in the office of the board for thirty days
  after notice to the state insurance fund, all insurance carriers and all
  self-insurers including group self-insurers affected thereby, before the
  board shall make an assessment for such expenses. The chair shall assess
  upon and collect a proportion of such expenses as  hereinafter  provided
  from   each  insurance  carrier,  the  state  insurance  fund  and  each
  self-insurer including group  self-insurers.  The  assessment  for  such
  expenses   shall   be   allocated  to  (i)  self-insurers  except  group
  self-insurers and the state insurance fund  based  upon  the  proportion
  that  the  total  compensation payments made by all self-insurers except
  group self-insurers and the state insurance fund in such  year  bore  to
  the  total  compensation payments made by all self-insurers except group
  self-insurers, the state insurance  fund,  all  insurance  carriers  and
  group   self-insurers   and  (ii)  insurance  carriers  based  upon  the
  proportion that the total compensation payments made  by  all  insurance
  carriers  in  such  year  bore to the total compensation payments by all
  self-insurers, the state  insurance  fund  and  all  insurance  carriers
  during  the fiscal year which ended within said preceding calendar year,
  and (iii) group self-insurers based upon the proportion that  the  total

  compensation  payments made by all group self-insurers bore to the total
  compensation payments made by all  self-insurers,  the  state  insurance
  fund  and  all  insurance  carriers  during  the fiscal year which ended
  within  said  preceding calendar year. The portion of the assessment for
  such expenses allocated to self-insurers except group self-insurers  and
  the  state insurance fund that shall be collected from each self-insurer
  except group self-insurers and the state insurance fund shall be  a  sum
  equal  to  the  proportion  of  the  amount which the total compensation
  payments of each such self-insurer except a group  self-insurer  or  the
  state  insurance  fund  in  such  year  bore  to  the total compensation
  payments made by all self-insurers except group  self-insurers  and  the
  state  insurance  fund.  The portion of the assessment for such expenses
  allocated to insurance carriers that shall be collected from  each  such
  insurance  carrier shall be a sum equal to that proportion of the amount
  which the total premiums written by each such insurance carrier in  such
  year  bore  to  the  total  written  premiums  reported by all insurance
  carriers. The portion of such sum allocated to group self-insurers  that
  shall  be collected from each group self-insurer shall be a sum equal to
  that proportion of the amount which the  pure  premium  calculation  for
  each  such group self-insurer bore to the total pure premium calculation
  for all group self-insurers for the calendar year which ended within the
  preceding state fiscal year. The amounts so secured shall  be  used  for
  the  payment of the expenses of administering this chapter. Pure premium
  for assessments against individual and group self-insurers who ceased to
  self-insure shall be based on payroll at  the  time  the  individual  or
  group  self-insurer  has  ceased  to  self-insure,  reduced  by a factor
  reflecting the reduction  in  the  group  or  individual  self-insurer's
  self-insurance liabilities since ceasing to self-insure.
    For  purposes of this paragraph, "direct premiums written" means gross
  premiums, including policy and membership fees, less return premiums and
  premiums on policies not taken. For purposes  of  this  paragraph  "pure
  premium  calculation"  means  the  New  York  state annual payroll as of
  December thirty-first of the preceding  year  by  class  code  for  each
  employer  member  of  a  group self-insurer multiplied by the applicable
  rate for each class code as  determined  by  the  workers'  compensation
  rating  board  in effect on December thirty-first of the preceding year.
  The amounts so secured shall be used for the payment of the expenses  of
  administering this chapter.
    For the purposes of this paragraph, the term "insurance carrier" shall
  include  only  stock  corporations,  mutual  corporations and reciprocal
  insurers authorized to transact the business  of  workers'  compensation
  insurance  in  this  state and the term "self-insurer" shall include any
  employer or group of employers permitted to  pay  compensation  directly
  under  the  provisions  of subdivision three, three-a or four of section
  fifty of this chapter.
    * NB Effective until January 1, 2010
    * (b) An itemized statement of the expenses so  ascertained  shall  be
  open  to  public  inspection  in the office of the board for thirty days
  after notice to the state insurance fund, all insurance carriers and all
  self-insurers including group self-insurers affected thereby, before the
  board shall make an assessment for such expenses. The chair shall assess
  upon and collect a proportion of such expenses as  hereinafter  provided
  from   each  insurance  carrier,  the  state  insurance  fund  and  each
  self-insurer including group  self-insurers.  The  assessment  for  such
  expenses   shall   be   allocated  to  (i)  self-insurers  except  group
  self-insurers and the state insurance fund  based  upon  the  proportion
  that  the  total  compensation payments made by all self-insurers except
  group self-insurers and the state insurance fund in such  year  bore  to

  the  total  compensation payments made by all self-insurers except group
  self-insurers, the state insurance  fund,  all  insurance  carriers  and
  group   self-insurers   and  (ii)  insurance  carriers  based  upon  the
  proportion  that  the  total compensation payments made by all insurance
  carriers in such year bore to the total  compensation  payments  by  all
  self-insurers,  the state insurance fund and all insurance carriers, and
  (iii) group self-insurers based  upon  the  proportion  that  the  total
  compensation  payments made by all group self-insurers in such year bore
  to the total compensation payments made by all self-insurers, the  state
  insurance fund and all insurance carriers. The portion of the assessment
  for  such expenses allocated to self-insurers except group self-insurers
  and  the  state  insurance  fund  that  shall  be  collected  from  each
  self-insurer  except  group  self-insurers  and the state insurance fund
  shall be a sum equal to the proportion of the  amount  which  the  total
  compensation   payments   of  each  such  self-insurer  except  a  group
  self-insurer or the state insurance fund in such year bore to the  total
  compensation   payments   made   by   all   self-insurers  except  group
  self-insurers  and  the  state  insurance  fund.  The  portion  of   the
  assessment  for such expenses allocated to insurance carriers that shall
  be collected from each such insurance carrier shall be a  sum  equal  to
  that  proportion  of the amount which the total standard premium by each
  such insurance carrier bore to the total standard  premium  reported  by
  all  insurance carriers for the calendar year which ended with the state
  fiscal year. The portion of such sum allocated  to  group  self-insurers
  that  shall  be  collected  from  each group self-insurer shall be a sum
  equal  to  that  proportion  of  the  amount  which  the  pure   premium
  calculation  for  each  such  group  self-insurer bore to the total pure
  premium calculation for all group self-insurers for  the  calendar  year
  which  ended  within the state fiscal year. The amounts so secured shall
  be used for the payment of the expenses of administering  this  chapter.
  Pure  premium for assessments against individual and group self-insurers
  who ceased to self-insure shall be based on  payroll  at  the  time  the
  individual or group self-insurer has ceased to self-insure, reduced by a
  factor   reflecting   the   reduction   in   the   group  or  individual
  self-insurer's self-insurance liabilities since ceasing to self-insure.
    For purposes of this paragraph,  "standard  premium"  shall  mean  the
  premium   as  defined  for  the  purposes  of  this  assessment  by  the
  superintendent of insurance, in consultation with the chair of the board
  and the  workers'  compensation  rating  board.  For  purposes  of  this
  paragraph  "pure  premium  calculation"  means the New York state annual
  payroll as of December thirty-first of the preceding year by class  code
  for  each  employer  member  of  a  group self-insurer multiplied by the
  applicable rate for each  class  code  as  determined  by  the  workers'
  compensation  rating  board  in  effect  on December thirty-first of the
  preceding year. The amounts so secured shall be used for the payment  of
  the expenses of administering this chapter.
    For the purposes of this paragraph, the term "insurance carrier" shall
  include  only  stock  corporations,  mutual  corporations and reciprocal
  insurers authorized to transact the business  of  workers'  compensation
  insurance  in  this  state and the term "self-insurer" shall include any
  employer or group of employers permitted to  pay  compensation  directly
  under  the  provisions  of subdivision three, three-a or four of section
  fifty of this chapter.
    * NB Effective January 1, 2010
    (c) Assessments for the special disability fund, the fund for reopened
  cases and for the operations of the board shall not constitute  elements
  of  loss  but shall for collection purposes be treated as separate costs
  by carriers. All group self-insurers shall collect such assessments from

  their employer members in a fair and  equitable  manner.  All  insurance
  carriers,  including  the  state  insurance  fund,  shall  collect  such
  assessments from  their  policyholders  through  a  surcharge  based  on
  premium  in  accordance  with  rules  set forth by the New York workers'
  compensation  rating  board,  as  approved  by  the  superintendent   of
  insurance.  Such  surcharge  shall  be considered as part of premium for
  purposes prescribed by law including,  but  not  limited  to,  computing
  premium  tax,  reporting  to the superintendent of insurance pursuant to
  section ninety-nine of this chapter and section three hundred  seven  of
  the  insurance  law,  determining the limitation of expenditures for the
  administration  of  the  state  insurance  fund  pursuant   to   section
  eighty-eight  of  this  chapter  and  the  cancellation  by an insurance
  carrier, including the state insurance fund, of a policy for non-payment
  of premium.
    3. Notwithstanding the provisions of subdivision two of this  section,
  the chair shall require that partial payments for expenses of the fiscal
  year  beginning April first, nineteen hundred eighty-three, and for each
  fiscal year thereafter, shall be made on March tenth  of  the  preceding
  fiscal  year  and  on June tenth, September tenth, and December tenth of
  each year, or on such other dates as the  director  of  the  budget  may
  prescribe,  by  each  insurance  carrier,  including the state insurance
  fund. Provided, however, that the  payment  due  March  tenth,  nineteen
  hundred eighty-three for the fiscal year beginning April first, nineteen
  hundred  eighty-three shall not be required to be paid until June tenth,
  nineteen hundred eighty-three. Each such payment shall be a sum equal to
  twenty-five per  centum  of  the  annual  expenses  assessed  upon  each
  carrier,  including the state insurance fund, as estimated by the chair.
  The balance of assessments for the fiscal year  beginning  April  first,
  nineteen  hundred  seventy-two and each fiscal year thereafter, shall be
  paid upon determination of the actual amount due in accordance with  the
  provisions of subdivision two of this section. Any overpayment of annual
  assessments resulting from the requirements of this subdivision shall be
  refunded  or  at  the  option  of the chair shall be applied as a credit
  against the assessment of the succeeding fiscal year.  The  requirements
  of  this  subdivision  shall not apply to those carriers whose estimated
  annual assessment for the fiscal year is less than one  hundred  dollars
  and  such  carriers  shall make a single payment of the estimated annual
  assessment on or before September tenth of the fiscal year.
    4. Commencing with the fiscal year  beginning  April  first,  nineteen
  hundred  seventy-three,  the  provisions  of  subdivision  three of this
  section shall be applicable to any county, city, town, village, or other
  political  subdivision  failing  to  secure  compensation  pursuant   to
  subdivisions one and two of section fifty.
    5.  The  provisions  of  this  section shall not apply with respect to
  policies containing coverage pursuant to subdivision four-a  of  section
  one  hundred  sixty-seven  of the insurance law relating to every policy
  providing comprehensive personal liability  insurance  on  a  one,  two,
  three or four family owner-occupied dwelling.