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Financial Services Committee Update
April 19, 2013

2013-14 Budget

The Executive Budget recommends $552.2 million for the Department, which is unchanged from the 2012-13 budget.

The Executive Budget recommends a workforce of 1,337 FTEs for the Department, which is an increase of 94 from 2012-13 revised levels. This change reflects staffing increases needed to implement the mission of the new department. The revised 2012-13 FTE levels reflect the transfer of 71 FTEs to the newly created Office of Information Technology Services.
Major budget actions include:

Provides authority for the New York Property Insurance Underwriting Association (NYPIUA) to issue broad form insurance coverage for 10 years beginning June 30, 2008. (S.2605-D/A.3005-D, Part W).

         Adopted.

Suspends New York State drivers licenses of taxpayers who owe certain past due tax liabilities. (S.2609-D/A.3009-D, Part P).

Basic provision adopted, the provision which prohibits an insurance company from using the fact that a taxpayer’s license is suspended from increasing, cancelling or declining a vehicle insurance policy was deleted.

The legislature did not adopt two proposed  Assembly Provisions.

Authorizes the State to license certified capital companies (CAPCO) to raise $150 million in private venture capital from insurance companies, which would be invested in the companies in exchange for tax credits. (A.3009-C).

Allocates $32 million from the Department of Financial Services budget to fund the physicians excess medical malpractice program, formerly funded out of the General Fund. (A.3003-C, page 513, lines 18-20).

Post Budget Legislative Priorities

The financial services industry is New York’s largest sector in terms of its contribution to New York’s gross state product and total payroll, and includes traditional banking firms, investment banks and security firms, mutual funds, stock and commodity exchanges, insurance companies and trust and other financial instrument and asset managers. To promote the continued growth and economic activity in the financial services industry, The Business Council will be engaged in the following issues: