(a) by insuring with the state fund pursuant to subdivision one of section fifty of this chapter; or (b) through a policy pursuant to subdivision two of section fifty of this chapter; or (c) through a county self-insurance plan under article five of this chapter; or (d) through a group private or public self-insurer pursuant to subdivision three-a of section fifty of this chapter, such assessment amounts shall be collected and remitted to the chair by the carrier or the state insurance fund, or county plan, or group private or public self-insurer, on behalf of the employer(s) until such time as the board establishes a direct employer payment process. Affected private or public employers providing compensation through self insurance pursuant to subdivision three of section fifty of this chapter shall pay assessment amounts directly to the chair. 5. Insurance carriers as defined in section two of this chapter including the state insurance fund and self-insurers, shall collect from affected employers and periodically remit to the board such assessments and shall be responsible for ensuring their employers/policyholders are current on their assessments. (a) Failure to ensure policyholders or employers are current on their assessments will result in the insurance carrier; or self-insurer; being liable for such assessments.

(b) In the event the employer; insurance carrier; or self-insurer; knew or should have known that the employer misreported any data related to the assessment process, they may be subject to any applicable penalties or sanctions provided by this chapter. 6. (a) Effective the first day of January, two thousand fourteen, all assessment cycles in progress will be replaced with the assessment rate determined herein. However, such new assessment rate shall not relieve any carrier or self-insurer for outstanding amounts due as of the first day of January two thousand fourteen.

(b) All assessment amounts collected by insurance carriers, except the state fund, and not yet remitted to the board prior to the first day of January, two thousand fourteen must be remitted to the chair no later than the first day of February, two thousand fourteen.

(c) Effective immediately, notwithstanding any law to the contrary, pursuant to the provisions of this chapter, the assessment reserves remitted to the chair pursuant to this paragraph shall, at the request of the director of the budget, be distributed as follows:

(i) As soon as practicable on or after April first, two thousand sixteen, the chair of the workers' compensation board shall transfer one hundred forty million dollars to the state insurance fund, for partial payment and partial satisfaction of the state's obligations to the state insurance fund under workers' compensation law section eighty-eight-c for two thousand sixteen.

(ii) Effective immediately, the chair of the workers' compensation board shall authorize the board to expend up to sixty million dollars to implement infrastructure and system upgrades consistent with recommendations of the workers' compensation board redesign and reengineering project.

(iii) Effective immediately, the chair of the workers' compensation board shall authorize the board to expend up to forty million dollars for: (A) transfer into the training and educational 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; (B) the department of labor occupational safety and health program; (C) transfer into the uninsured employers' fund pursuant to subdivision two of section twenty-six-a of this chapter in connection with payment of claims made pursuant to article eight-A of this chapter; (D) a reduction in liabilities of the special disability fund pursuant to subdivision eight of section fifteen of this chapter and/or the fund for reopened cases pursuant to section twenty-five-a of this chapter; and/or (E) transfer to or payment of up to ten million dollars of such amount on behalf of the superintendent of financial services for costs associated with the implementation of the paid family leave act of article nine of this chapter. Any and all funds remaining after accounting for the transfers and expenditures set forth above may, at the discretion of the director of the budget, either remain with the workers' compensation board or be transferred to the general fund for the purpose of reducing budget gaps. Annually, the workers' compensation board will provide to the director of the budget, the chair of the senate finance committee, and the chair of the assembly ways and means committee, an accounting of such funds and all associated income received. Such accounting will continue until March thirty-first, two thousand twenty. 7. Assessments for the expenses of the board including assessments pursuant to paragraph (h) of subdivision eight of section fifteen of this chapter for the special disability fund and pursuant to subdivision three of section twenty-five-a of this chapter for the fund for reopened cases shall not constitute elements of loss. 7-a. Notwithstanding any law to the contrary, when there is a default on the payment of premium, including any assessments payable under subdivision seven of this section, any action by the carrier, including the state insurance fund, to collect any unpaid premium shall include an action seeking recovery of such assessments on behalf of the board. The carrier shall remit the amount of any such unpaid assessments collected either pursuant to a judgment or by settlement to the board. 8. The foregoing and every other prevision of law to the contrary notwithstanding, all moneys received on account of the assessment authorized by this section shall be deposited upon receipt into the administrative clearing account held by the commissioner of taxation and finance and applied, as pledged assessments for purposes of sections sixteen hundred eighty-l and sixteen hundred eighty-q of the public authorities law and prior to any other application: first, in accordance with any other provision of any special disability fund financing agreement entered into prior to March thirty-first, two thousand thirteen, to the extent required to fully fund the then current payment and reserve requirements under such financing agreement; and second, in accordance with each special disability fund financing agreement and each self-insured bond financing agreement, to the extent required to fully fund the then current payment and reserve requirements under each such financing agreement entered into after March thirty-first, two thousand thirteen with respect to bonds issued by the dormitory authority pursuant to either section sixteen hundred eighty-l or section sixteen hundred eighty-q of the public authorities law, on a pari passu basis without preference or priority among all such other bonds. Such monies shall not be commingled with any other monies in the commissioner's custody prior to the completion of such application and shall not be deemed to be part of the state treasury or of any funds under management of the state. This section shall not be deemed to authorize any infringement upon the rights of holders of such bonds issued or to be issued under such sections of the public authorities law. The provisions of this section may be included by the dormitory authority in any contract with the holders of any such bonds. The operation of this section and the application of the receipts of the assessment authorized by this section shall be subject to the provisions of each financing agreement authorized pursuant to subparagraph four of paragraph (h) of subdivision eight of section fifteen or to section fifty-c of this chapter and this section shall not be deemed to authorize any infringement upon the rights of holders of bonds issued or to be issued pursuant to either such provision. 9. The provisions of this section shall not apply with respect to policies containing coverage pursuant to paragraph one of subsection (j) of section three thousand four hundred twenty of the insurance law relating to every policy providing comprehensive personal liability insurance on a one, two, three or four family owner-occupied dwelling. 10. If the assessments collected pursuant to this section are insufficient to meet the obligations financed by the assessments, the chair, for a period of three years, may borrow any shortfall from the state insurance fund with any borrowing to be added to the assessments under this section and repaid the following year to the state insurance fund with interest at the state insurance fund's then current rate of return. 11. Effective immediately, notwithstanding any law to the contrary, pursuant to the provisions of this chapter, the assessment reserves held by the state insurance fund for the payment of future assessments are no longer required and all funds and investments held by the state insurance fund related to the assessment reserves shall be transferred to the chair of the workers' compensation board as soon as practicable. The commissioner of taxation and finance shall be custodian of such funds, which shall not be commingled with other funds of the workers' compensation board, and may invest such funds in the same manner as surplus funds held by the state insurance fund pursuant to subdivision two of section eighty-seven of this chapter. Disbursements of such funds shall be made by such commissioner upon written warrant of the chair of the workers' compensation board or the chair's designee. At the request of the director of the budget, such moneys transferred to the chair of the workers' compensation board shall be distributed as follows:

(a) As soon as practicable after April first, two thousand thirteen, the chair of the workers' compensation board shall transfer two hundred fifty million dollars to the general fund for debt management or fiscal uncertainties.

(b) As soon as practicable after April first, two thousand fourteen, the chair of the workers' compensation board shall transfer one billion dollars to the general fund for the purpose of reducing budget gaps.

(c) As soon as practicable after April first, two thousand fifteen, the chair of the workers' compensation board shall transfer two hundred fifty million dollars to the general fund for the purpose of reducing budget gaps.

(d) As soon as practicable after April first, two thousand sixteen, the chair of the workers' compensation board shall transfer two hundred fifty million dollars to the general fund for the purpose of reducing budget gaps.

(e) Any and all funds remaining after accounting for the transfers set forth above may, at the discretion of the director of the budget, either remain with the workers' compensation board or be transferred to the general fund for the purpose of reducing budget gaps or to the state insurance fund. The budget director, acting in consultation with the chair of the workers' compensation board, shall determine whether any money returned to the state insurance fund is a loan or a transfer and the terms and conditions therein. Any funds transferred or loaned to the state insurance fund upon the budget director's request may be invested in a manner consistent with investment guidelines pursuant to subdivision two of section eighty-seven of the workers' compensation law. Annually, the state insurance fund and the workers' compensation board will provide to the director of the budget, the chair of the senate finance committee, and the chair of the assembly ways and means committee, an accounting of such funds and all associated income received. Such accounting will continue until March thirty-first, two thousand seventeen. 12. The chair shall promulgate regulations to carry out the provisions of this section. 13. To effectuate an efficient assessment process and the proper management of the workers' compensation system all data in possession of the compensation insurance rating board shall be made available to the board and the department of financial services upon request. 14. The chair may conduct periodic audits of any employer, self-insurer, insurance carrier and the state insurance fund concerning any information or payment required under this section, including any information relevant to the payment or calculation of any assessments. The employer, self-insurer, insurance carrier and the state insurance fund shall provide all necessary documents and information in relation to an audit in a manner prescribed by the chair. Upon the determination of the chair that an employer, self-insurer, insurance carrier or the state insurance fund has underpaid an assessment as a result of its inaccurate reporting, the employer, self-insurer, insurance carrier or the state insurance fund upon notice from the chair, shall pay the full amount of the underpaid assessment, along with interest at the rate of nine per cent per annum on the unpaid assessment due not later than thirty days after such notice. An insurance carrier or employer that knowingly makes a material misrepresentation of information required for the purpose of effectuating this section shall be guilty of a class E felony.