An auto insurance deal is close, sources say
And New York wants pitches from developers for renewable energy projects
Good afternoon — It’s Friday and Arbor Day.
In today’s CapCon:
One of the thorniest subjects in state budget negotiations could be near a resolution but it doesn’t mean a state budget deal is imminent.
The public has weighed in on regulations that could be eliminated and we’ve got some idea of what New Yorkers told the governor.
The state is seeking pitches from developers of land-based renewable energy projects, like land-based wind, hydroelectric and large-scale solar.
A bill that would require the state to proactively post financial disclosure statements of candidates is moving through the Legislature.
Private employers would be required to notify workers they’re being displaced by AI under a new bill.
Names in today’s CapCon: Kathy Hochul, Carl E. Heastie, Heather Mulligan, Doreen Harris.
Today’s Capitol Confidential is sponsored by VNS Health
Legislators: New York’s MLTC rate system is underfunding plans caring for residents with the most complex care needs — including older adults and people living with disabilities who rely on support at home — and the state must act now. Without intervention this year, impact will deepen. Plans serving high-acuity populations — including VNS Health, the state’s only statewide 5-star MLTC plan — are already operating at the limits of what the system can support. Learn more.
🚗 Hochul and lawmakers near deal on auto insurance proposals
The stickiest subject in state budget talks could be near a resolution, sources within the state Legislature said Friday.
Good afternoon — It’s Friday and Arbor Day.
In today’s CapCon:
One of the thorniest subjects in state budget negotiations could be near a resolution but it doesn’t mean a state budget deal is imminent.
The public has weighed in on regulations that could be eliminated and we’ve got some idea of what New Yorkers told the governor.
The state is seeking pitches from developers of land-based renewable energy projects, like land-based wind, hydroelectric and large-scale solar.
A bill that would require the state to proactively post financial disclosure statements of candidates is moving through the Legislature.
Private employers would be required to notify workers they’re being displaced by AI under a new bill.
Names in today’s CapCon: Kathy Hochul, Carl E. Heastie, Heather Mulligan, Doreen Harris.
Today’s Capitol Confidential is sponsored by VNS Health
Legislators: New York’s MLTC rate system is underfunding plans caring for residents with the most complex care needs — including older adults and people living with disabilities who rely on support at home — and the state must act now. Without intervention this year, impact will deepen. Plans serving high-acuity populations — including VNS Health, the state’s only statewide 5-star MLTC plan — are already operating at the limits of what the system can support. Learn more.
🚗 Hochul and lawmakers near deal on auto insurance proposals
The stickiest subject in state budget talks could be near a resolution, sources within the state Legislature said Friday.
Gov. Kathy Hochul has begun to budge on her package of proposals intended to lower the cost of car insurance in discussions with state lawmakers. That doesn’t mean a state budget deal is imminent.
But if that issue is cleared up and Hochul and lawmakers can reach an agreement around changes to the Climate Act, they’ll be significantly closer to wrapping up this year’s state budget than they were at the start of this week.
The compromise being considered would exclude Hochul’s proposed changes to joint and several liability. It’s easiest to explain that through an example.
Imagine there’s a three-car crash. A jury awards the victim of that crash, who was found to not be at fault, $100,000 for pain and suffering. That number is just to make this math easy.
One of the drivers was texting while they were driving and determined to be 90% at fault for the crash. He has no insurance or not enough coverage to pay out the full amount.
One of the other drivers was speeding slightly and determined to be 10% at fault. But he has really good insurance.
The way the law is currently written, the victim of the crash that sues for pain and suffering can force the speeding driver’s car insurance to pay the full $100,000, even though he was only 10% responsible, because the other driver has no insurance or lacks the coverage.
Hochul’s proposed change would instead have the speeding driver pay only $10,000, representing the 10% he was determined to be at fault for the crash.
If the texting driver doesn’t have insurance or enough coverage to pay the remaining $90,000, the victim could lose out on receiving that payout for pain and suffering under Hochul’s proposal.
Assembly Speaker Carl E. Heastie said this week that Democrats in his chamber were particularly concerned about that type of scenario.
“It’s really about people who get hurt in accidents,” Heastie said. “Do they have the ability to get pain and suffering? So that is a consideration that’s on the table.”
That part of Hochul’s proposal is a central part of discussions, legislative sources said Friday, with the possibility that it’s either dropped altogether or subject to significant amendments.
If you’re close to those discussions and have heard otherwise, please let me know.
Hochul and lawmakers are also considering a change in how car insurance companies can automatically increase their rates without final approval from the state.
Current law allows car insurance companies to increase their rates by up to 5% without prior approval from the state Department of Financial Services. It’s called “flex rating.”
Hochul and lawmakers could move to eliminate that, requiring those companies to seek prior approval for those increases or change the threshold. That’s a relatively new part of the discussions around car insurance.
Business groups are also pushing back on a proposed measure to place tighter limits on the profits allowed to be earned by car insurance companies.
Right now, New York has an “excess profits” law that requires car insurance companies to return profits to policy holders above a certain threshold. That’s currently if a company profits by at least 21%.
“It’s a red herring argument because it’s a super competitive marketplace,” said Heather Mulligan, president and CEO of the Business Council of New York State. “I think it is an argument to distraught from the real issue.”
📨 These are the regulatory changes New Yorkers want to see (sort of)
From Timothy Fanning
Hochul asked the public in February to identify regulations that could be repealed or modified, with the goal of eliminating rules that are either unnecessary or create an undue burden.
Those results are in but we don’t know much about what ideas are being proposed or who is suggesting them. The state didn’t fill my records request ahead of publication.
So far, Hochul’s office has received over 3,700 recommendations through the public portal. That includes 2,000 submissions from a mix of people, small businesses and organizations scattered across the state’s 62 counties. Most of the submissions have come from New York (1,000) and the Capital Region (600).
Most highlighted issues related to health and human services, small businesses, child care and housing and infrastructure.
In the coming weeks, state officials plans to review the submissions and determine their feasibility. Last fall, Hochul asked state agencies to begin identifying regulations that could be scaled back, and to plan to unveil those details later this spring.
The governor’s office plans to announce more regulatory changes later this year.
⚡ NYSERDA launches new solicitation for renewable energy projects
I usually wouldn’t write about requests for proposals published by state agencies but the subject of this solicitation has been a hot topic in recent months.
Utility companies in New York are required to send part of the revenue they recoup from ratepayers to the New York State Energy Research and Development Authority to fund the state’s Clean Energy Standard.
That program was created to fund renewable energy projects. Republicans have been critical of the fact that, while utility companies collect that revenue from ratepayers, the funding hasn’t been fully exhausted to develop those projects.
The authority issued a new solicitation on Friday to that end. It’s seeking pitches from developers of land-based renewable energy projects, like land-based wind, hydroelectric and large-scale solar.
The solicitation is attractive because, if approved, projects would be given contracts with the state from 20 to 25 years. That means they’d be guaranteed to essentially have their operations subsidized by state funding while also earning revenue from energy sales.
“By supporting additional land-based renewable energy projects at a time when we are facing significant federal headwinds, we continue to grow an already substantial renewables pipeline – furthering New York’s energy independence and keeping our focus on energy affordability,” said Doreen Harris, president and CEO of NYSERDA.
More from the Times Union (Free for CapCon Subscribers):
Catskill EMT who mocked patient not entitled to trial over license, court rules
SEEN: New York Court of Appeals Annual Dinner
An eye on bills moving through the state Legislature.
Proactively posting financial disclosure statements of candidates: I exclusively reported last week about the financial disclosure statements filed by Nassau County Executive Bruce Blakeman, his running mate, and former New York City Council Speaker Adrienne Adams, who’s Hochul’s running mate. I was only able to obtain those statements through a Freedom of Information Law request made to the state Commission on Ethics and Lobbying in Government. That’s because, despite being required to publicly post the financial disclosure statements of elected officials, the agency is prohibited from proactively posting the financial disclosure statements filed by candidates for state office. This bill, which the commission supports, would require it to proactively post those financial disclosure statements to make them easily accessible to the public. It’s expected to move through the state Senate Ethics and Internal Governance Committee next week, putting it one step closer to a vote on the floor of that chamber. It’s also expected to head to the floor in the state Assembly this year, according to legislative sources. (S4857C Skoufis)
Requiring localities to inform complainants of code enforcement violations: I know this sounds boring but it prompted an animated debate in the state Senate Wednesday afternoon. When a tenant files a complaint against their landlord over code enforcement, state law doesn’t require localities to let the tenant know if a violation was identified and if the landlord was ordered to fix the problem. This would require that notification. State Sen. Jack Martins, a Republican from Long Island, said the bill would add another layer of bureaucracy for short-staffed local governments to manage. State Sen. James Skoufis, the bill’s sponsor, framed it as a public safety bill that will allow tenants to know if their landlords have been ordered to fix dangerous conditions. It had already passed the Assembly in late March, meaning it now will head to Hochul for consideration at some point this year. (S6368B Skoufs, A3126B Lunsford)
This section features new and interesting bills in the state Legislature.
🔎 TRACK: You can track our running list of new bills featured in this section for free over on Capitol Confidential Pro. Click here.
Requiring transparency from public entities on artificial intelligence deployment: AI tools are expected to replace certain workers, just as automation in factories has done in the past. This seeks to give employees a heads up on how their company plans to deploy AI and if that’s expected to change, or eliminate, their jobs. It would require any public employer, including the state, municipalities, libraries, school districts and colleges, to notify workers at least a year before technology that uses artificial intelligence is deployed in their workplace. Such a notification would have to explain the impact that deployment is expected to have on products and services, the operations of workers, the potential skills gaps that may result, if it’s expected to result in changes in the workforce and how much is being spent on it. (S10025 Hinchey, new bill)
Bills with new amendments
Requiring private employers to notify workers they’re being displaced by AI: This bill is similar but for private companies. It would require companies that employ at least 50 people to provide written notice to workers and the state when at least 25 employees or 25% of the workforce, whichever number is lower, will be displaced by AI. Affected employees would have to be offered a 90-day transition period during which they would have continued employment or equivalent wages. Employers could also pay for the worker to undergo new skills training during the period but would have to keep them on the payroll during that time. The amended version eliminated a definition of “employment loss” and the explained legislative intent and findings. (A9533A Bronson)
A pilot program for resilient EV charging systems: This would require the state Public Service Commission to create a pilot program facilitating electric vehicle charging during extended outages that focuses on emergency response. The amended version includes fewer requirements for such a program but would mandate a report from the commission by 2030 that outlines the use of resilient EV charging during extended outages. It’s on the agenda for the state Senate Energy Committee next week. (S2476A Parker)
What else I read today:
A Man, a Howitzer and His Battle to Fire It Into the Adirondack Woods (New York Times)
I now have Signal, which allows you to send me an encrypted message without being tracked. Send me tips and your deepest secrets. Click here to do that.
🌳 Arbor Day: This day is dedicated to trees. You’re encouraged to plant them and care for them. Planting a tree is harder than you might think. An arborist might suggest external supports for the tree as it gets settled wherever you plant it. Trees are hugely important to our ecosystem. They filter our air and provide food, shade and shelter.