After fast start with workers’ comp, Albany sputters

The Assembly has had its own reasons for moving slowly, especially on insurance bills — its insurance committee lacked leadership.

Despite the state having a new governor, The New York Legislature continues with its old ways favoring political paralysis over action.

The Assembly, which is controlled by Democrats and Speaker Sheldon Silver, and the Senate, where Senate Leader Joseph Bruno and his Republicans hold a slight edge, adjourned June 22 in Albany leaving key issues unresolved.

With the exceptions of an early and major victory on workers’ compensation reform and passage of some minor rating bills, the insurance industry like others saw little to cheer about in this session.

The failure of Democrats and Republicans to come together on major issues also marked Albany politics while Republican George Pataki was governor. Only now it’s Democratic Gov. Eliot Spitzer and Republican Bruno whose sparring is getting in the way of legislating.

Bruno and Spitzer have differences over several issues, including a plan to put up tolls in New York City to reduce traffic and pollution and a campaign finance reform pushed by Spitzer but opposed by Bruno. They have also locked horns over a pay raise for judges and lawmakers and a $1 billion capital construction fund.

“There’s been bad blood for a while,” Doug Muzzio, professor of public affairs at Baruch College told The Associated Press. “It has now turned into a full frontal assault on Joe Bruno.”

Muzzio said Spitzer has more motivation now to “put it into high gear. … He got mixed results (in the session) and everything didn’t change on day one, or month one or session one.”

Spitzer appears to agree. He said he will continue touring the state, pointing out the Legislature’s failure to enact important bills.

“I will be traveling, probably pretty broadly over the next couple of months, making the point I’ve been making: That there is a failure to act to do the people’s business. And I will ask the citizens to inquire of their senators, ‘How did you vote on this issue? Where were you on June 22? Were you at work in the Capitol passing bills that could have changed our life?'”

Bruno, who has just a 33-29 majority over Democrats in the Senate, says he isn’t worried.

“Let him do whatever he wants,” Bruno told The Associated Press after he ended the Senate’s regular session. “Our members can take care of themselves.”

Bruno said Spitzer “has to transition from spoiling for a fight to negotiating in good faith to get results. If you’re spoiling for a fight, you’ll get one.”

The Assembly has had its own reasons for moving slowly, especially on insurance bills — its insurance committee lacked leadership.

“The Assembly Insurance Committee spent most of the year without a chairperson which made the political climate very challenging for insurers, notes Paul Magaril, regional manager and counsel for PCI.

Magaril said the industry hopes that the recent appointment of Assemblyman Joe Morelle to lead the committee, while it came too late to break the logjam of insurance related legislation, means the future will be brighter.

Assembly Speaker Sheldon Silver also takes an optimistic view. “I am confident cooler heads will prevail and real negotiations will take place once we are out of the lime light of the legislative session,” Silver said.

Fast start

The 2007 legislative session was disappointing given it got off to a fast and promising start with agreement on budget reform, lobbying reforms, civil confinement of sex offenders and long-sought workers’ compensation reform.

The workers’ compensation reform passed in February promises to save employers $1 billion over several years by eliminating costly lifetime payments for “permanent partial disabilities.” The reform will also save employers 10 percent to 15 percent or more in premiums and is expected to make New York more inviting to companies.

But lawmakers stalled on an industry-priority legislation regarding flex rating for personal lines insurance.

Lawmakers were able to pass legislation to preserve a series of rating laws that were scheduled to expire at the end of the month. They also extended the New York Property Insurance Underwriting Association, the state’s property insurance market of last resort.

At least one bill opposed by insurers made it through both houses. The prejudicial notice and declaratory judgment bill (S.6303) prohibits insurers from denying coverage based on the insured’s failure to give timely notice of a claim unless the insurer can demonstrate that it has suffered “material prejudice” as a result of the delayed notice; and, permits a party bringing an action against another to also commence a declaratory judgment action to determine questions of insurance coverage.

Magaril said PCI and others in the industry would urge Spitzer to veto the measure.

Spitzer is expected to sign legislation aimed at increasing the penalties for individuals who cause accidents under the influence of drugs or alcohol. The bill (A.8791-A), sponsored by Assemblyman Harvey Weisenberg, would add the crimes of aggravated vehicular assault and aggravated vehicular homicide to the felony crimes of driving while intoxicated.

Some material from The Associated Press was used in this report.

Topics New York Legislation Workers' Compensation