Plugged In @ Hinman Straub – October 18, 2019

What’s Inside

  • Governor Hosts Regional Cannabis Regulation and Vaping Summit
  • Surprise Medical Billing Legislation Signed
  • Governor Signs Bill to Allow Internet Driver Safety Courses
  • DFS Issues Final Regulations Regarding Student Loan Servicers
  • Governor Announces $5 Million Clean Energy Competition for Colleges and Universities
  • Court Strikes Down Rate Changes to Consumer-Directed Personal Assistance Program
  • Senate Holds “Gig Economy” Public Hearing
  • Interim SED Commissioner Announces Departure
  • Governor Announces Committee for the Advancement of Women in Leadership in Financial Services
  • Updates, Reminders, and Links
  • Coming Up

Governor Hosts Regional Cannabis Regulations and Vaping Summit

Governor Cuomo hosted a cannabis and vaping summit to examine a regional approach to the legalization and regulation of marijuana, as well as, the regulation of vaping products. Joined by the Governors of Connecticut, New Jersey, and Pennsylvania as well as representatives from Massachusetts and Colorado, the multi-state panel discussed issues surrounding both. Much of the meeting took place behind closed doors, but, the group emerged with a framework of issues they would be exploring together. The states have agreed to a series of principles, which will guide them as they explore these issues jointly, as follows:

Market Regulation and Empowerment Issues 

  • Identifying best practices with regard to the basis for taxation, implementation stages and dynamic market-based controls for cannabis production and cultivation;
  • Supporting the market architecture of cannabis regulation, including an awareness of the need to ensure a fair and competitive market, deploying strategies such as a limitation on the number of licenses or licenses types, to protect against manipulation of markets;
  • Encouraging in conjunction with their legislature a stable regional market by identifying and implementing a similar overall effective tax rate for cannabis products;
  • Incorporating tax mechanisms, such as weight based, potency based, and/or mg/thc based, to ensure price stability for licensees and that the price of cannabis does not fall to a point that increases access and use beyond current usage rates;
  • Implementing social equity initiatives to ensure industry access to those who have been disproportionately impacted by the prohibition of cannabis;
  • Prioritizing small and diverse businesses’ participation in the cannabis industry;
  • Implementing meaningful social justice reform with regard to cannabis policy, including expediting expungements or pardons, waiving fees associated with expungements or pardons and securing legislation to support these reforms;
  • Supporting and advocating for the passage of the Secure and Fair Enforcement (SAFE) Banking Act, which would provide clarity and remove disincentives for existing financial institutions to service cannabis-related businesses;
  • Supporting research focusing on immediate solutions that will improve the ability of the state to manage cannabis-related cash payments, as well as long-term solutions that allow the industry to thrive; and
  • Providing positive guidance to their state chartered financial institutions with respect to cannabis-related banking services. Such guidance may make reference to education, promotion, data sharing, legislation and advocacy with federal and state regulators

Public Health Issues

  • Enacting restrictions for cannabis and vaping product forms, packing, advertising and characteristics that target minors;
  • Prohibiting advertising that promotes over-consumption and targets youth, restrict advertising to audiences that are likely majority over 21
  • Ban advertising and products that appeal to youth, including flavors and product packaging
  • Restricting sale of products to adults 21 and over and imposing strict penalties on licensees that sell to youth
  • Creating programming and conducting robust public health education campaigns targeting youth
  • Enacting requirements that all cannabis products must be contained in child-resistant packaging;
  • Regulating cannabis products and enacting restrictions in a manner that safeguards public health, limits over consumption and discourages the spread of cannabis use disorder;
  • Collecting and sharing data on cannabis use to better understand the public health outcomes associated with legalizing adult use;
  • Enacting restrictions to discourage over consumption and accidental overdose, such as limiting the amount of cannabis that can be legally possessed, requiring standardized dosages and serving sizes in products and limiting the overall THC content of products;
  • Creating youth prevention and public education campaigns to inform youth and the general public about the health and safety consequences of cannabis use;
  • Developing warning labels and icons that accurately inform consumers about the dangers of cannabis use; and
  • Limiting flavors for inhalable products to the taste of tobacco or cannabis or a taste derived from compounds derived directly and solely from the cannabis or hemp plant.

Public Safety and Enforcement Issues

  • Uniform treatment of Drug Recognition Experts (DRE) evidence;
  • Uniform standard for blood or saliva tests, both for lab tests and for roadside tests when available;
  • Efforts surrounding DRE training;
  • Methods for sharing information on suspected “bad actors” in legal market; and
  • Law enforcement strategies for illicit market. 

Vaping Issues

  • Banning or regulating the sale of flavored vape products to reduce the product’s attractiveness to youth;
  • Implementing vape product safety standards for nicotine, CBD and other cannabinoids, and other vaping products including diluents, excipients, cutting agents, and other additives;
  • Regulating temperature control, including the heating mechanisms of vaporizers;
  • Ensuring all vaping cartridges are properly marked or labeled to inform the user of the manufacturer;
  • Increasing enforcement actions for unauthorized sales to individuals under 21 years of age; and
  • Restricting advertisements to ensure products are not targeted to minors.

Surprise Medical Billing Legislation Signed

This week, the Governor signed legislation (S.3171/A.264) which adds hospital charges for emergency services by out-of-network hospitals to the “surprise bill” law and the independent dispute resolution (IDR) process. The “surprise bill” law, enacted in 2014, established IDR as a means by which an insurer and out-of-network physician could settle disputes regarding charges for emergency care by allowing an insurer to submit what they consider to be an excessive out-of-network emergency charge to an independent arbiter for resolution. Insurers are required to ensure that enrollees do not incur greater out of pocket costs for out-of-network emergency services, which in turn, allowed for abuse by providers through overcharging of insurers. This legislation expands the landmark “surprise bill” law by applying the same IDR process to hospitals. In extending the IDR process, the state is addressing a significant cost driver for health insurance by restricting the ability of hospitals to charge unreasonably high fees.

Bill Sponsor Senator Kreuger said:

“When New Yorkers go to the hospital in an emergency, they can’t be expected to make sure every procedure is delivered by an in-network provider. This new law will protect New York families from outrageous surprise medical bills and help keep overall medical costs down. I thank Assembly Member Cahill for carrying this bill in the Assembly, and Governor Cuomo for signing it today.”

Governor Signs Bill to Allow Internet Driver Safety Courses

The Governor signed into law A.5874-A/S.3965-A which creates a five year pilot program to allow driver pre-licensing courses to be complete online. Proceeds from the pilot program will be directed to the dedicated highway and bridge trust fund. Under current law, an in-person five-hour safety course is required prior to being issued a driver license. The pilot program will allow that course to be delivered remotely via the internet. After five years, the commissioner is required to make recommendations to the Governor and legislature regarding the program. New York now joins more than a dozen other states in offering this course online.

The Governor said in his approval memo:

“This program would build upon the success of the online defensive driving course, and would provide students with the convenience of completing the pre-licensing course in the comfort of their own homes. I have instructed the Department of Motor Vehicles to promulgate rules and regulations to ensure the goals of the 5-hour pre-licensing course, which is to train drivers in road safety, are upheld in the online environment and to engage stakeholders, including the existing in-person administrators of this course, in that process to ensure we can safely conduct this pilot.”

DFS Issues Final Regulations Regarding Student Loan Servicers

The Department of Financial Services issued the final regulations, published in this week’s state register, which will regulate student loan servicers. The regulations, which take effect immediately, were issued after a 60-day comment period. Under the final regulation, applicable student loan servicers are required to:

  • Be licensed by the Department of Financial Services;
  • Provide clear and accurate information concerning fees, payments due and terms and conditions of loans;
  • Apply over-payments in borrowers’ best interest;
  • Provide accurate information to credit reporting agencies;
  • Inform borrowers of income-based repayment and loan forgiveness options;
  • Maintain and provide to consumers a detailed history of their account;
  • When a borrower’s loan is transferred to a new servicer, ensure all necessary servicing information is transferred with the loan so the borrower’s repayment is not disrupted; and
  • Provide timely and substantive responses to consumer complaints.

Department of Financial Services Superintendent Linda A. Lacewell said: 

“While the federal government strips away consumer protections, New York continues to step up for students. Our new and final regulation will protect New York’s nearly 3 million student loan borrowers from predatory practices and demand clear information from student loan servicers to help borrowers make the best financial choices towards their future.”

Governor Announces $5 Million Clean Energy Competition for Colleges and Universities

Governor Cuomo announced the launch of the third round of the Energy to Lead competition with $5 million available for New York colleges and universities to lower their carbon footprint, reduce energy use and improve resiliency. Awards range from $500,000 to $1.5 Million and proposals will be accepted through February 20, 2020. The competition is open to two or four-year public or private colleges or universities that are REV Campus Challenge members.

Governor Cuomo said:

“New York is a leader in the fight against climate change, and through initiatives like Energy to Lead, we are empowering our colleges and universities to establish best-in-class energy efficient clean energy policies for others to follow. Through public private partnerships, we are driving the clean energy solutions needed to safeguard our environment, campuses and communities for future generations.” 

Court Strikes Down Rate Changes to Consumer-Directed Personal Assistance Program

Late last week, a judge struck down the recent rate change to the Consumer-Directed Personal Assistance Program (CDPAP), ruling that it violated the state constitution and the State Administrative Procedure Act (SAPA) by forgoing the public comment period required under the law. If the department of health wishes to proceed with a rate change, it will have to start from the beginning by publishing the proposed rule in the state register and allowing time for feedback from stakeholders regarding the impact of the proposed changes. CDPAP allows seniors and people with disabilities receiving Medicaid-certified home care to choose their own caregivers rather than be assigned one, including giving them the ability to choose a friend or family member. The attempted change in rate structure threatened the viability of many of the state’s fiscal intermediaries who administrate the program.

Senate Holds “Gig Economy” Public Hearing

The Senate held a public hearing to engage stakeholders on the “gig economy” and its current labor practices. Under particular scrutiny were how companies like Uber, Lyft, and DoorDash classify workers as independent contractors rather than employees. Labor groups and advocates urged the members of the panel to consider a law similar to California’s new ABC test. The ABC test requires the satisfaction of three criteria in order to be considered an independent contractor, rather than an employee. The narrow test prescribed by California would have a significant impact on employee classification among app based companies, as well as, non-app based companies.

Business groups and other associations testified as well, urging a cautious approach in general and specifically asking lawmakers to consider a third way. Rather than implementing an ABC test, they suggested exploring options similar to the Black Car Fund, which was created to provide a system of worker’s compensation insurance for use by independent for-hire drivers. Others testified that classifying app-based drivers as employees would limit the driver’s ability to utilize more than one app and other aspects of flexibility they currently enjoy.

Senator Savino, chair of the hearing, arrived at no conclusions publicly and suggested additional hearings would be announced in the coming weeks.

Interim SED Commissioner Announces Departure

According to a statement released by Chancellor Betty Rosa and Vice Chancellor Andrew Brown, interim SED Commissioner Beth Berlin has decided to leave the education department next month for another opportunity. A new Interim commissioner will be announced prior to Berlin’s November departure. SED is currently searching for qualified candidates to fill the roll permanently. 

Governor Announces Committee for the Advancement of Women in Leadership in Financial Services

Governor Cuomo announced the formation of a committee to address the representation and advancement of women in the financial services industry. The committee will serve as a sub-committee of Governor Cuomo’s Council on Women and Girls, and will be co-chaired by Secretary to the Governor Melissa DeRosa and Financial Services Superintendent Linda A. Lacewell.

Membership of the new subcommittee includes:

  • Linda A. Lacewell (Co-chair),Superintendent of the New York State Department of Financial Services
  • Melissa DeRosa (Co-chair),Secretary to the Governor, Chair of Governor’s Council on Women and Girls
  • Sheila Bair, Director, The Volcker Alliance
  • Wendy Cai- Lee,CEO & President, Piermont Bank 
  • Stephanie Cohen,Chief Strategy Officer, Goldman Sachs
  • Shirin Emami, Executive Deputy Superintendent of Banking, New York State Department of Financial Services
  • Wendy Erdly,Chief of Staff, New York Department of Financial Services
  • Laura Evangelista,Executive Deputy Superintendent of Insurance, New York State Department of Financial Services
  • Maria Filipakis,Partner, The Topside Group
  • Beth Finkel,New York State Director, AARP
  • Rachel Haot,Executive Director, Transit Innovation Partnership
  • Karen Ignagni,CEO, EmblemHealth
  • Andrea Jung,President & CEO, Grameen America
  • Katherine Lemire,Executive Deputy Superintendent of the Consumer Protection and Financial Enforcement Division, New York State Department of Financial Services
  • Deanna Mulligan,CEO, Guardian Life Insurance
  • Racquel Oden,Managing Director, Northeast Division, JPMorgan Chase
  • Donna Redel,Professor, Fordham Law School
  • Marta L. Tellado,President & CEO, Consumer Reports
  • Patricia Wang,CEO, HealthFirst
  • Kathryn Wylde,President & CEO, Partnership for New York City 

Secretary to the Governor Melissa DeRosa said:

“Women represent a paltry 20 percent of C-suite positions in the financial services industry and New York has an obligation as the financial capital of the world to ensure the executive level managers of these companies reflect the Empire State’s greatest value – diversity. This first-of-its-kind committee is comprised of some of the most successful female leaders in business and I’m confident that with their help we will come up with innovative solutions that help change this unacceptable status quo and boost representation to the benefit of the financial services industry and to all New Yorkers.”  

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

City & State NY’s Westchester Power 100 here.

D’Amato: On energy, New York’s head is in the sand here.

Public Finance Commission digs into the details at latest meeting.

Senate Majority reportedly exploring a Child Victims Fund.

Coming Up

A Joint Senate and Assembly public hearing on recycling will be held on October 21.

The Senate Committees on Aging and Social Services will hold a public hearing to assess the impact of proposed changes to the federal Supplemental Nutrition Assistance Program (SNAP) and methodology used to determine Official Poverty Measure (OPM), respectively, on New York programs that assist populations served by the human services sector. The hearing is scheduled for October 21.

The Assembly Committees on Insurance and Local Governments will hold a public hearing on municipal health insurance alternatives and affordability on October 23.

A Joint Senate and Assembly public hearing on the New York Health Act will be held on October 23.

The Senate Committee on Higher Education will hold a series of public hearings regarding the cost of public higher education. The hearings will take place on October 24, October 28, October 30, and November 1.

The Assembly Committees on Judiciary, Social Services, and Children and Families will hold a public hearing examining the rights of children in court on October 24.

The Senate Codes Committee will hold another public hearing on policing (S3695) on October 24.

The Senate Committees on Consumer Protection and Internet and Technology will hold a public hearing on protecting consumer data and privacy on online platforms on October 25.

The Senate Codes Committee will hold its second public hearing on discovery reform implementation on October 28.

The Senate Mental Health committee will hold a public hearing on eating disorders, treatment, and discovery on October 28.

The Assembly Health Committee will hold a public hearing on youth tackle football, scheduled for October 29.

JCOPE will hold its next meeting on Tuesday, October 29.

The Senate Education and Budget and Revenue Committees will hold a series of public meetings around the state to hear stakeholder input regarding the components of the Foundation Aid formula in relation to student, district and community needs with a goal of greater equity in school financing on October 29, November 13, and November 19.

The Senate Task Force on Opioid and Drug Abuse will hold another public meeting to hear from stakeholders on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on October 30.

The Senate Committees on Consumer Protection, Health, and Education will hold a public hearing to investigate the safety and potential harms of electronic cigarettes and vaping, especially among school-aged youth on November 4.

The Senate Committee on Mental Health will hold a public hearing on veteran mental health and well-being on November 6.

The Assembly Committees on Higher Education and Environmental Conservation will hold a public hearing on the environmental footprint of colleges and universities in New York on November 13.

The PSC will hold its next meeting on Thursday, November 14.

Joint Senate Task Force on Opioids, Addiction and Overdose Prevention will hold a public hearing on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on November 15.

A Joint Senate and Assembly public hearing to discuss the implementation of early voting throughout New York State will be held on November 20.

The Senate Committee on Mental Health has schedule a public hearing on OPWDD transition to managed care for December 2.

The Senate Education and Budget and Revenue Committees will hold a public hearing to examine the distribution of the Foundation Aid formula as it relates to pupil and district needs on December 3.