Dear NYSTLA Members,
I am pleased to report that — last night — important advances in New York law for consumers and patients were achieved in the State budget agreement, and several proposals that would have been harmful to the rights of New Yorkers and the practices of NYSTLA’s members were removed.
Special thanks to our Auto Committee Working Group – Jeff Lichtman, Michael Jaffe, Joshua Stein, Ken Hoefer, Helene Blank and Jeffrey Stillman – for their knowledgeable input on the rideshare proposals, which helped achieve some of the most comprehensive insurance requirements in the country.
Thanks also to our President Elect Matthew Funk and Past President Michael Jaffe, for their expertise in reviewing the Workers’ Compensation proposals. As a result of the efforts of NYSTLA and labor allies, several harmful proposals were successfully defeated.
Finally, I thank our Legislative Committee, chaired by David Oddo and Richard Steigman with generous assistance from former chair Marc Dittenhoefer, for their help in analyzing other budget proposals, including the post-judgment interest proposal that was defeated.
Here are the details:
RIDESHARE (Uber, Lyft and other companies)
NYSTLA advocated for auto accident victims in the debate over how to regulate rideshare in the State of New York outside NYC (where they act as liveries). Rideshare companies will be required to provide:
Highest
75,000/150,000 in primary insurance coverage for the period when the driver is logged onto the rideshare application seeking a customer (“Period 1”) – a distracted driving risk. New York is the only state that requires 75,000/150,000 in primary insurance, higher than any other state’s primary insurance requirement.
Second Highest
1.25 million in primary insurance coverage for the “pre-arranged ride” period when the car is traveling to pick up a customer or providing the ride. This is the second—highest level in the country and higher than 34 other states.
Highest
1.25 million in Supplemental Uninsured/Underinsured Motorist (SUM) coverage, the highest level achieved nationwide in a state that does not already require SUM coverage for all drivers.
NYSTLA remains concerned about the ability of injured auto accident victims to identify the proper insurance carrier in time to meet New York's short 30-day No Fault notice-of-claim deadline, but the new law will authorize the Superintendent of Financial Services to issue regulations to address insurance disputes. Also, NYSTLA advocated for, and the agreement adopted, a requirement that the electronic receipt provided after a ride include the name and operating license number of the TNC.
Also note: A pilot testing program for autonomous (“driverless”) vehicles to be supervised by the Department of Motor Vehicles includes $5 million in liability coverage.
POST-JUDGMENT INTEREST
A proposal to lower the rate of interest on judgments against the State, municipal corporations, and public corporations to a percentage equal to the federal reserve system’s weekly average one year constant maturity treasury yield for the week preceding date of entry of judgment on damages was rejected. Lowering post-judgment interest rates would have given such defendants a significant incentive to drag out and delay resolution of cases and payment of already-awarded judgments.
WORKERS' COMPENSATION
Late in the budget process, proposals arose to change the Workers' Compensation law. Several harmful proposals were rejected, including provisions to eliminate the requirement to make deposits into the Aggregate Trust Fund; alter the calculation of average weekly wage in a way that would likely harm many workers; and allow the Workers' Compensation Board to take a hearing or proceeding away from a particular referee at any time. Existing medical guidelines for determining degrees of schedule loss of use will be revised, but the Board is required to consult with stakeholders before doing so.
Practice note: A new presumption that maximum medical improvement has been achieved for individuals with permanent partial disability is triggered automatically after two and a half years of treatment unless it is successfully rebutted. The safety net threshold for extreme hardship redetermination will be expanded from above 80 percent to above 75 percent.
CYBER-SECURITY ACCOUNTABILITY
A one-house proposal to allow the Department of Homeland Security and Emergency Services to establish regulations granting immunity for entities exchanging information with its cyber-security program was rejected. Under this proposal, any “entity” could have shared any information with anyone in the agency, for any purpose, and would have been immune from the harmful impact on an individual, subject only to a vague requirement of “good faith.”
SERVICE OF PROCESS
A proposal to shift responsibility from the Department of State to plaintiffs for mailing a copy of service of process, requiring plaintiffs to serve process papers on the Secretary and the defendant entity simultaneously, was rejected. This would have made service upon a corporation more difficult.
MEDICAL MALPRACTICE EXCESS FUND
The Medical Malpractice Excess Fund was successfully extended for another year. Also, a proposal to deny eligibility to doctors who have not received tax clearances under Tax Law §171-w was rejected. This would have left injured patients, through no fault of their own, without a proper remedy.
CENTRALIZATION AND CONSOLIDATION OF AGENCY HEARING FUNCTIONS
A proposal to centralize the hearing functions of all State agencies under a new Chief Administrative Officer with power to abolish or consolidate nearly any hearing function of any agency was rejected. This could have led to inefficiencies and gaps in hearing officer expertise.
The Legislative Session is far from over. NYSTLA will maintain its vigilance and will actively work to educate legislators on the importance of protecting and strengthening the civil justice system.
Thank you for your advocacy and support!
Be sure to join us on Lobby Day, May 15 and 16th!
Sincerely,
Edward H. Gersowitz
NYSTLA President