PIANY and its lobbyists have reviewed Gov. Andrew M. Cuomo’s FY 2022 Executive Budget to assess whether there are sections that are beneficial to independent agents, or sections that could pose problems for insurance agents. In previous years, PIANY has had to advocate against the New York State Department of Financial Services’ fine increases, which—so far—are not in the budget this year.  However, there are some sections in the budget that the association is monitoring.

First, in the Public Protection and General Government Article VII bill, PIANY is watching three sections:

• Part V–NYSIF out-of-state coverage
• This would allow the New York State Insurance Fund to cover
  policyholders’ out-of-state operations as long as policyholders’ main
  operations are in-state.
• This would create even more unfair competition between NYSIF and private insurance companies because the same option for covering out-of-state operations is not available without the carrier being licensed to sell insurance in that other state.
• Part W–NYSIF enhanced investment authority
• The proposed changes in this bill would permit NYSIF to diversify its investments portfolio. This proposal would allow NYSIF to invest up to 30% of its reserves in Better Business Bureau-rated bonds.
• Additionally, this part perpetuates unfair competition between NYSIF and private insurance carriers because the diversification is not available to private carriers.
• Part X–Reserve & deposit discounts
• This bill would permit NYSIF to use modern mortality and remarriage tables to calculate deposits and reserves for the Aggregate Trust Fund. Additionally, it  amends the reserve discount rate used to calculate reserve levels for NYSIF’s Workers’ Compensation Fund.
• Under current law, NYSIF uses a century-old mortality and remarriage table to calculate appropriate deposits into the ATF. This model has resulted in inadequate deposit levels. This bill would allow NYSIF to use modern tables for both mortality and remarriage, pursuant to claims on or after Saturday, January 1, 2022. The updated tables used would be from the Department of Health and Human Services, and the updated remarriage tables would be published by the United States Railroad Retirement Board. Every 10 years, NYSIF will update each table consistent with these two entities.
• Currently, NYSIF’s WCF reserves are set at a discounted rate of 5%. This rate was set in 1989, when interest rates were much higher than current rates. This bill would remove the requirement that NYSIF reserves be discounted by 5% and would use the same reserve standard applied by private workers’ compensation insurers under the Insurance Law.

The Transportation, Economic Development and Environmental Conservation Article VII bill also includes two sections worth noting:

• PART P–Electronic notarization
• This section would permit notaries to rely on approved technologies to verify identity and to notarize documents remotely.
• This was allowed during the height of the COVID-19 pandemic by Executive Order 202.7, which prevented unnecessary contact and allowed for continued notary services.
• PART JJ–No-fault insurance
• This bill would amend the current Insurance Law to grant the superintendent of insurance more authority to prohibit health-services providers from demanding payment for health services rendered under the no-fault insurance law. The prohibition would apply only in certain instances, such as if the provider is found guilty of professional misconduct, or found to have billed for services that were not provided.
• It also would establish the Motor Vehicle Insurance Task Force, which would examine alternatives to the no-fault insurance system, and other legislative or regulatory initiatives to reduce the cost of motor-vehicle insurance.

PIANY also is monitoring the Education, Labor, and Family Assistance Article VII bill. These are not insurance-specific bills, but they would affect PIANY members as business owners.

• PART S–Prohibit discrimination based on citizenship
• This bill would add to current executive law and define citizenship or immigration status to mean citizenship of any person, or the immigration status of any person who is not a U.S. citizen. Nothing in this article would prevent verification of citizenship or immigration status when required by law, nor would an adverse action based on verification of citizenship or immigration status be prohibited when such adverse action is required by law.
• It also would amend other sections of law to include the term citizenship or immigration status to the list of reasons one cannot discriminate against another in areas including—but not limited to—employment, licensing, purchase and trade, training programs, service and renting or selling a home or apartment.
• PART T–Encourage part-time work through partial unemployment insurance benefits
• This bill would establish the terms partial unemployment or partially unemployed. Partial unemployment or partially unemployed would refer to any week during which a claimant does not work full-time, as long as the claimant is not paid the same as or more than if they worked a full-time week, plus $100, or 40% of what the claimant would make in a week—whichever is greater.
• This bill would ensure that people who have only part-time jobs (e.g., the restaurant and retail industries), and who might have fewer hours as a result of required staff reductions, still would be eligible for some unemployment benefits, since they would be considered partially unemployed.
• PART W–Provide paid leave for COVID-19 vaccination
• This bill would require an employer—upon the oral or written request of an employee—to provide each employee up to four hours of leave to be used for each of up to two COVID-19 vaccine injections. Except when prohibited by law, an employer may request documentation from an employee confirming the employee’s eligibility to take this leave before authorizing it.
• For the purposes of this bill, employers would be defined as “any person, corporation, limited liability company, or association employing any individual in any occupation, industry, trade, business or service.” This is the same definition as in Labor Law Section 190. The bill would include government agencies in the definition of employer.
• This bill would ensure that employees who get the COVID-19 vaccination would not be required to use accrued leave of any kind in order to obtain the vaccine, and protects employees from any retaliation from their employer.

PIANY will continue to monitor these sections and watch for new, relevant bills throughout the budget process. There is the possibility that the state Senate and state Assembly will omit some or all of these sections when they pass their own budget bills. If they both omit the same parts, that would indicate that the bill will not appear in the final budget. However, there always is the possibility that the governor could get the section(s) back in some way during negotiations. Watch for more information in your PIANY publications and for advocacy alerts in your email inbox. PIANY may call on its members to help advocate for or against certain budget bills throughout the budget process.