Apr 2, 2020

New York budget amended

PIANY reviewed the state budget when Gov. Andrew M. Cuomo introduced it in January and there were many insurance-related components. The bills from the budget moving through the state Legislature were amended and many insurance-related parts were omitted. Also, some additions to the budget will impact employers. Since the April 1 deadline to adopt the budget has passed, the budget officially is late, but the Legislature is currently working to enact a budget as soon as possible.

Insurance-related sections of the New York state budget:

In the Public Protection and General Government bill (S.7505-B)—which passed the Senate and Assembly on March 31, 2020, and April 1, 2020, respectively-- several parts that would have expand the authority of the New York State Insurance Fund were removed, including:

• Part GG–NYSIF Small Business Relief - Investment Authority would have allowed NYSIF to invest reserves and surplus similar to that of private insurance carriers;
• Part HH–NYSIF Small Business Relief - Audit Compliance Authority would have permitted NYSIF to cancel workers’ compensation policies based on the policyholder’s’ failure to cooperate with a payroll audit;
• Part II–NYSIF Small Business Relief - Out of State Coverage would have permitted NYSIF to sign agreements with private insurers to cover NYSIF policyholders performing work outside of New York state.

Additionally, Part NN of the Transportation, Economic Development and Environmental Conservation bill (S.7508-B)—which has passed the Senate—was removed. It would have granted the New York State Department of Financial Services the authority to proceed directly against unlicensed entities using the same administrative hearing procedures it uses for adjudicating infractions by licensed entities, and increase fines.

A section was added to the Education, Labor, Housing and Family Assistance bill (S.7506-B)—which has passed the Senate—that would expand the paid sick leave requirements depending on the size of the employer. It requires:

• Employers with fewer than five employees to provide up to 40 hours of unpaid sick leave per calendar year provided;
• Employers with fewer than five employees in any calendar year, and who has a net income of greater than $1 million dollars in the previous tax year, shall provide each employee with up to 40 hours of paid sick leave;
• Employers with between five and 99 employees to provide up to 40 hours of paid sick leave in a calendar year; and
• Employers with 100 or more employees to provide up to 56 hours of paid sick leave in a calendar year.