Fire Law Blog Fire Service and Public Safety Legal Issues Blog by Curt Varone
Rochester Firefighters, IAFF Local 1071 won a major victory last week, prevailing at the New York Court of Appeals on the proper use of a 2% levy on insurance premiums charged by out of state insurers.
The union alleged the city illegally diverted nearly $4 million in 2% funding that should have been used for the benefit of firefighters, as the firefighters themselves determine.
The city claimed it used the funds for a legitimate purpose: to pay for the firefighters’ health insurance. The problem was the city was contractually obligated to pay for the health care, and merely used the $4 million to offset its expenses. In addition, the 2% law stipulates that the firefighters choose how the money will be spent. Take a look:
Section 9104 of the New York Insurance Law:
f) Except as otherwise provided in any special law, and except as to the Firemen’s Association of the State of New York, such tax shall be used for the benefit of, as determined by the members thereof:
(1) the fire company receiving the same, but this shall not preclude the payment by a fire company of all or a part of such tax so received to the fire department of which it is a part, or
(2) the fire department when such tax is not required under paragraph four of subsection (a) of this section to be distributed to fire companies.
The Court of Appeals agreed with the firefighters, ending three years of litigation. In New York, the Court of Appeals is the highest court.
