Financial Services Committee Update
April 19, 2013
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).
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).
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:
- Reject proposals to subject publicly traded companies to the provisions of New York’s broad Martin Act. Including proposals to allow pension funds to direct state investigations into alleged violations.
- Oppose new post-Sandy market restrictions/mandates on the insurance industry.
- Adopt a comparative negligence standard to be used for actions brought under Labor Law section 240/241 which currently imposes strict liability on employers and contractors for injuries related to falls.
- Make permanent law modernizing the regulation of commercial insurance markets in New York State. Provides freedom from rate and form regulation for insurance policies sold to large businesses. Expires in 2013.
- Pass No-Fault Insurance Fraud reform that makes staging an accident a felony crime and criminalizes the act of physicians sending patients through medical mills to collect on insurance. Must also provide insurers with more time to investigate fraud.
- Support payment of wages by pay cards. Permits employers to give their employees the option of electing to receive their wages via a debit card.
- Support increasing the foreign investment limit of life insurance companies.