§ 207-c. Employee benefit fund; division of military and naval\naffairs. 1. Definitions. As used in this section, unless otherwise\nexpressly stated:\n a. "Director" shall mean the director of employee relations.\n b. "Employee" shall mean any person in the service of the state of New\nYork who is appointed to and serving in a position contained within the\ncollective negotiating unit designated as the division of military and\nnaval affairs unit established pursuant to article fourteen of the civil\nservice law who is otherwise eligible for health insurance coverage\npursuant to law and the rules and regulations of the department of civil\nservice, except that it shall not mean seasonal employees whose\nemployment is expected to last less than six months, employees in\ntemporary positions of less than six months duration, or employees\nholding appointments otherwise expected to last less than six months.\n 2. Where and to the extent that, an agreement between the state and an\nemployee organization entered into pursuant to article fourteen of the\ncivil service law so provides on behalf of employees and upon audit and\nwarrant of the comptroller, the director shall provide for the payment\nof moneys quarterly to such employee organization for the establishment\nand maintenance of an employee benefit fund established by the employee\norganization for the employees in the negotiating unit covered by the\ncontrolling provision of such agreement providing for such employee\nbenefit fund, such amount to be determined consistent with the procedure\nestablished in said agreement but, on the basis of the number of\nemployees as defined herein on the payroll during the payroll period the\nlast day of which ends no later than twenty-one calendar days before the\nbeginning of the quarter next following such day as determined by the\ncomptroller. The amount, which will be determined pursuant to this\nsection, for employees who are paid from first instance funds, or from\nspecial or administrative funds, will be paid from the appropriations as\nprovided by law, in which case the comptroller will establish procedures\nto ensure repayment from first instance general state charge\nappropriations or from said special or administrative funds. The\ndirector may enter into an agreement with an employee organization which\nsets forth the specific terms and conditions for the establishment and\nadministration of an employee benefit fund as a condition for the\ntransmittal of moneys pursuant to this section.\n 3. Such employee organization shall periodically as specified by the\ndirector, supply a description of the benefits purchased or provided by\nthe employee benefit fund, the utilization experience of the benefit\nfund, the amount disbursed for or the cost of such benefits and such\nother information as may be requested by the director.\n 4. The employee organization shall report to the comptroller, in the\nform and manner as he may direct, the amount it expended for the\npurchase of or providing for such benefits for any period specified by\nthe comptroller. The comptroller is hereby authorized to audit the books\nof the employee organization with respect to any moneys transmitted to\nit pursuant to this section.\n 5. Neither the state nor any officer or employee of the state\n(including "employee" as defined herein and any other employee of the\nstate) shall be a party to any contract or agreement entered into by any\nemployee organization providing for benefits purchased in whole or in\npart with moneys transmitted to such employee organization pursuant to\nthis section. No benefit provided pursuant to such contracts or\nagreements shall be payable by the state and all such benefits shall be\npaid by the responsible parties to such agreements or contracts pursuant\nto the terms and conditions of such agreements or contracts. The\nemployee organization shall be a fiduciary with respect to an employee\nbenefit fund established pursuant
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